|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
BERMUDA
|
N/A
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Title of Each Class
|
Trading Symbol(s)
|
Name of Each Exchange on Which Registered
|
|
Ordinary shares, par value $1.00 per share
|
ESGR
|
The NASDAQ Stock Market
|
LLC
|
Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00%
|
ESGRP
|
The NASDAQ Stock Market
|
LLC
|
Fixed-to-Floating Rate Perpetual Non-Cumulative Preferred Share, Series D, Par Value $1.00 Per Share
|
|
|
|
Depositary Shares, Each Representing a 1/1,000th Interest in a 7.00%
|
ESGRO
|
The NASDAQ Stock Market
|
LLC
|
Perpetual Non-Cumulative Preferred Share, Series E, Par Value $1.00 Per Share
|
|
|
|
Large accelerated filer
|
þ
|
|
Accelerated filer
|
☐
|
|
Non-accelerated filer
|
☐
|
|
Smaller reporting company
|
☐
|
|
Emerging growth company
|
☐
|
|
|
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Page
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PART I
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|
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|
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Item 1.
|
||
Item 1A.
|
||
Item 1B.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
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|
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PART II
|
|
|
|
|
|
Item 5.
|
||
Item 6.
|
||
Item 7.
|
||
Item 7A.
|
||
Item 8.
|
||
Item 9.
|
||
Item 9A.
|
||
Item 9B.
|
||
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PART III
|
|
|
|
|
|
Item 10.
|
||
Item 11.
|
||
Item 12.
|
||
Item 13.
|
||
Item 14.
|
||
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PART IV
|
|
|
|
|
|
Item 15.
|
||
Item 16.
|
•
|
risks associated with implementing our business strategies and initiatives;
|
•
|
the adequacy of our loss reserves and the need to adjust such reserves as claims develop over time;
|
•
|
risks relating to our acquisitions, including our ability to evaluate opportunities, successfully price acquisitions, address operational challenges, support our planned growth and assimilate acquired companies into our internal control system in order to maintain effective internal controls, provide reliable financial reports and prevent fraud;
|
•
|
risks relating to our active underwriting businesses, including unpredictability and severity of catastrophic and other major loss events, failure of risk management and loss limitation methods, the risk of a ratings downgrade or withdrawal, and cyclicality of demand and pricing in the insurance and reinsurance markets;
|
•
|
risks relating to the performance of our investment portfolio and our ability to structure our investments in a manner that recognizes our liquidity needs;
|
•
|
changes and uncertainty in economic conditions, including interest rates, inflation, currency exchange rates, equity markets and credit conditions, which could affect our investment portfolio, our ability to finance future acquisitions and our profitability;
|
•
|
the risk that ongoing or future industry regulatory developments will disrupt our business, affect the ability of our subsidiaries to operate in the ordinary course or to make distributions to us, or mandate changes in industry practices in ways that increase our costs, decrease our revenues or require us to alter aspects of the way we do business;
|
•
|
risks relating to the variability of statutory capital requirements and the risk that we may require additional capital in the future, which may not be available or may be available only on unfavorable terms;
|
•
|
risks relating to the availability and collectability of our reinsurance;
|
•
|
losses due to foreign currency exchange rate fluctuations;
|
•
|
increased competitive pressures, including the consolidation and increased globalization of reinsurance providers;
|
•
|
emerging claim and coverage issues;
|
•
|
lengthy and unpredictable litigation affecting the assessment of losses and/or coverage issues;
|
•
|
loss of key personnel;
|
•
|
the ability of our subsidiaries to distribute funds to us and the resulting impact on our liquidity;
|
•
|
our ability to comply with covenants in our debt agreements;
|
•
|
changes in our plans, strategies, objectives, expectations or intentions, which may happen at any time at management’s discretion;
|
•
|
operational risks, including system, data security or human failures and external hazards;
|
•
|
risks relating to our ability to obtain regulatory approvals, including the timing, terms and conditions of any such approvals, and to satisfy other closing conditions in connection with our acquisition agreements, which could affect our ability to complete acquisitions;
|
•
|
risks relating to our subsidiaries with liabilities arising from legacy manufacturing operations;
|
•
|
tax, regulatory or legal restrictions or limitations applicable to us or the insurance and reinsurance business generally;
|
•
|
changes in tax laws or regulations applicable to us or our subsidiaries, or the risk that we or one of our non-U.S. subsidiaries become subject to significant, or significantly increased, income taxes in the United States or elsewhere;
|
•
|
changes in Bermuda law or regulation or the political stability of Bermuda; and
|
•
|
changes in accounting policies or practices.
|
•
|
Atrium Underwriting Group Limited and its subsidiaries ("Atrium"), which manage and underwrite specialist insurance and reinsurance business for Lloyd’s Syndicate 609; and
|
•
|
StarStone Insurance Bermuda Limited and its subsidiaries ("StarStone"), which is an A.M. Best A- rated global specialty insurance group with multiple underwriting platforms.
|
•
|
engage in highly disciplined acquisition, management and (re)insurance practices across a diverse portfolio of loss reserves;
|
•
|
seek investment risk where it is adequately rewarded;
|
•
|
maintain reserving risk at low to moderate levels;
|
•
|
via active underwriting segments, take on underwriting risks across a balanced range of select specialty lines where the expected margins compensate for the risk and/or the costs of risk mitigation; and
|
•
|
maintain capital, liquidity, credit, operational and regulatory risks at low levels.
|
•
|
Risks relating to the increased use of letters of credit by our subsidiaries to satisfy collateral obligations in our reinsurance and run-off transactions;
|
•
|
Risks relating to changes in Bermuda solvency capital eligibility requirements;
|
•
|
Risks relating to cybersecurity and data privacy;
|
•
|
Risks relating to the transition from LIBOR;
|
•
|
Risks relating to our claims management activities, including social inflation, increased litigation funding, and laws that impose absolute liability for certain types of claims;
|
•
|
Risks relating to climate change, including as a result of our investments in companies that may be exposed to "transition risk;" and
|
•
|
Risks arising from global pandemics, such as coronavirus.
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
•
|
exposure to claims arising out of unpredictable natural and man-made catastrophic events (including hurricanes, windstorms, tsunamis, severe weather, earthquakes, floods, fires, droughts, explosions, environmental contamination, acts of terrorism, cyber events and war or political unrest);
|
•
|
changing climate patterns and ocean temperature conditions that could increase the frequency and severity of catastrophe events and natural disasters to which we have loss exposure;
|
•
|
failure of our risk management and loss limitation methods (described in "Item 1. Business - Enterprise Risk Management") to adequately manage our loss exposure or provide sufficient protection against losses;
|
•
|
the intense competition for business in the insurance and reinsurance industries, including competition from major global insurance and reinsurance companies and underwriting syndicates that may have greater experience and resources than our companies or that may be more highly rated than our companies, or competition resulting from industry consolidation;
|
•
|
dependence on a limited number of brokers, managing general agents and other third parties to support our business, both in terms of the volume of business we rely on them to place and the credit risk we assume from them; and
|
•
|
susceptibility to the effects of inflation due to premiums being established before the ultimate amounts of losses and LAE are known.
|
•
|
the value of liabilities assumed being greater than expected;
|
•
|
the value of assets or our anticipated return on assets being lower than expected or diminishing because of credit defaults, changes in interest rates, or delays in implementation of our intended investment strategies;
|
•
|
funding cash flow shortages that may occur if anticipated revenues are not realized or are delayed, or if expenses are greater than anticipated;
|
•
|
integrating financial and operational reporting systems and internal controls, including assurance of compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and our reporting requirements under the Exchange Act;
|
•
|
leveraging our existing capabilities and expertise into the business acquired and establishing synergies within our organization;
|
•
|
funding increased capital needs and overhead expenses;
|
•
|
integrating technology platforms and managing any increased cybersecurity risk;
|
•
|
obtaining and retaining management personnel required for expanded operations;
|
•
|
fluctuating foreign currency exchange rates relating to the assets and liabilities we may acquire;
|
•
|
goodwill and intangible asset impairment charges; and
|
•
|
complying with applicable laws and regulations.
|
•
|
announcements with respect to an acquisition or investment;
|
•
|
changes in the value of our assets;
|
•
|
our financial condition, performance and prospects, including our quarterly and annual operating results;
|
•
|
sales, or the possibility or perception of future sales, by our existing shareholders;
|
•
|
changes in general conditions in the economy and the insurance industry;
|
•
|
economic, financial, geopolitical, regulatory or judicial events that affect us or the financial markets generally; and
|
•
|
adverse press or news announcements.
|
•
|
whether dividends have been declared and are likely to be declared on the preferred shares from time to time;
|
•
|
whether the ratings on the depositary shares representing our preferred shares provided by any ratings agency have changed;
|
•
|
changes in our credit ratings or the ratings of our insurance subsidiaries’ financial strength and claims paying ability published by major credit ratings agencies;
|
•
|
the amount of total indebtedness we have outstanding;
|
•
|
the level, direction and volatility of market interest rates generally; and
|
•
|
the market for similar securities.
|
Period
|
|
Total Number of Shares Purchased(1)
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
|
Maximum Number (or Approximate Dollar Value) of Shares that May Yet be Purchased Under the Program
|
||||||
October 1, 2019 - October 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
November 1, 2019 - November 30, 2019
|
|
635
|
|
|
$
|
202.55
|
|
|
—
|
|
|
$
|
—
|
|
December 1, 2019 - December 31, 2019
|
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
—
|
|
|
|
635
|
|
|
|
|
—
|
|
|
$
|
—
|
|
(1)
|
Includes shares withheld from employees in order to facilitate the payment of withholding taxes on restricted shares granted pursuant to our equity incentive plan. The shares are calculated at their fair market value, as determined by reference to the closing price of our ordinary shares on the vesting date.
|
|
Indexed Returns* for Years Ended December 31,
|
|||||||||||
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
||||||
Enstar Group Limited
|
100.00
|
|
98.14
|
|
129.31
|
|
131.30
|
|
109.60
|
|
135.30
|
|
NASDAQ Composite Index
|
100.00
|
|
106.96
|
|
116.45
|
|
150.96
|
|
146.67
|
|
200.49
|
|
NASDAQ Insurance Index
|
100.00
|
|
103.70
|
|
131.49
|
|
142.17
|
|
124.49
|
|
159.49
|
|
|
December 31,
|
||||||||||||||||||
|
2019
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
||||||||||
|
(in thousands of U.S. dollars, except share and per share data)
|
||||||||||||||||||
Balance Sheet Data:
|
|
|
|
|
|
|
|
|
|
||||||||||
Total investments
|
$
|
13,207,513
|
|
|
$
|
11,242,061
|
|
|
$
|
8,755,130
|
|
|
$
|
7,332,425
|
|
|
$
|
6,340,781
|
|
Total cash and cash equivalents (inclusive of restricted)
|
1,055,777
|
|
|
982,584
|
|
|
1,212,836
|
|
|
1,318,645
|
|
|
1,295,169
|
|
|||||
Reinsurance balances recoverable on paid and unpaid losses
|
2,379,890
|
|
|
2,029,663
|
|
|
2,021,030
|
|
|
1,460,743
|
|
|
1,451,921
|
|
|||||
Total assets
|
19,363,315
|
|
|
16,556,270
|
|
|
13,606,422
|
|
|
12,865,744
|
|
|
11,772,534
|
|
|||||
Losses and loss adjustment expense liabilities
|
10,429,238
|
|
|
9,409,504
|
|
|
7,398,088
|
|
|
5,987,867
|
|
|
5,720,149
|
|
|||||
Defendant asbestos and environmental liabilities
|
847,685
|
|
|
203,320
|
|
|
219,164
|
|
|
234,020
|
|
|
—
|
|
|||||
Debt obligations
|
1,191,207
|
|
|
861,539
|
|
|
646,689
|
|
|
673,603
|
|
|
599,750
|
|
|||||
Total Liabilities
|
14,068,173
|
|
|
12,183,738
|
|
|
9,980,868
|
|
|
9,600,390
|
|
|
8,834,088
|
|
|||||
Total Enstar Group Limited shareholders’ equity
|
4,842,183
|
|
|
3,901,933
|
|
|
3,136,684
|
|
|
2,802,312
|
|
|
2,516,872
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Book Value per Share:(1)
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
$
|
201.39
|
|
|
$
|
158.06
|
|
|
$
|
161.63
|
|
|
$
|
144.66
|
|
|
$
|
130.65
|
|
Diluted
|
$
|
197.93
|
|
|
$
|
155.94
|
|
|
$
|
159.19
|
|
|
$
|
143.68
|
|
|
$
|
129.65
|
|
Shares Outstanding:
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
21,511,505
|
|
|
21,459,997
|
|
|
19,406,722
|
|
|
19,372,178
|
|
|
19,263,742
|
|
|||||
Diluted
|
21,989,971
|
|
|
21,881,063
|
|
|
19,830,767
|
|
|
19,645,309
|
|
|
19,714,810
|
|
Section
|
|
Page
|
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
||
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. Dollars)
|
||||||||||
Numerator:
|
|
|
|
|
|
||||||
Total Enstar Group Limited Shareholder's Equity
|
$
|
4,842,183
|
|
|
$
|
3,901,933
|
|
|
$
|
940,250
|
|
Less: Series D and E Preferred Shares
|
510,000
|
|
|
510,000
|
|
|
—
|
|
|||
Total Enstar Group Limited Ordinary Shareholders' Equity (A)
|
4,332,183
|
|
|
3,391,933
|
|
|
940,250
|
|
|||
Proceeds from assumed conversion of warrants (1)
|
20,229
|
|
|
20,229
|
|
|
—
|
|
|||
Numerator for fully diluted book value per ordinary share calculations (B)
|
$
|
4,352,412
|
|
|
$
|
3,412,162
|
|
|
$
|
940,250
|
|
|
|
|
|
|
|
||||||
Denominator:
|
|
|
|
|
|
||||||
Ordinary shares outstanding (C)
|
21,511,505
|
|
|
21,459,997
|
|
|
51,508
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Share-based compensation plans
|
302,565
|
|
|
245,165
|
|
|
57,400
|
|
|||
Warrants(1)
|
175,901
|
|
|
175,901
|
|
|
—
|
|
|||
Fully diluted ordinary shares outstanding (D)
|
21,989,971
|
|
|
21,881,063
|
|
|
108,908
|
|
|||
|
|
|
|
|
|
||||||
Book value per ordinary share
|
|
|
|
|
|
||||||
Basic book value per ordinary share = (A) / (C)
|
$
|
201.39
|
|
|
$
|
158.06
|
|
|
$
|
43.33
|
|
Fully diluted book value per ordinary share = (B) / (D)
|
$
|
197.93
|
|
|
$
|
155.94
|
|
|
$
|
41.99
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars, except per share data)
|
||||||
Net earnings (loss) attributable to Enstar Group Limited ordinary shareholders
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
Adjustments:
|
|
|
|
||||
Net realized and unrealized (gains) losses on fixed maturity investments and funds held - directly managed (1)
|
(534,730
|
)
|
|
243,093
|
|
||
Change in fair value of insurance contracts for which we have elected the fair value option
|
117,181
|
|
|
6,664
|
|
||
Tax effects of adjustments (2)
|
51,102
|
|
|
(16,588
|
)
|
||
Adjustments attributable to noncontrolling interest (3)
|
17,689
|
|
|
(9,166
|
)
|
||
Non-GAAP operating income attributable to Enstar Group Limited ordinary shareholders (4)
|
$
|
553,417
|
|
|
$
|
61,649
|
|
|
|
|
|
||||
Diluted net earnings (loss) per ordinary share (5)
|
$
|
41.43
|
|
|
$
|
(7.84
|
)
|
Adjustments:
|
|
|
|
||||
Net realized and unrealized (gains) losses on fixed maturity investments and funds held - directly managed (1)
|
(24.55
|
)
|
|
11.70
|
|
||
Change in fair value of insurance contracts for which we have elected the fair value option
|
5.38
|
|
|
0.32
|
|
||
Tax effects of adjustments (2)
|
2.35
|
|
|
(0.79
|
)
|
||
Adjustments attributable to noncontrolling interest (3)
|
0.81
|
|
|
(0.44
|
)
|
||
Diluted non-GAAP operating income per ordinary share (4)
|
$
|
25.42
|
|
|
$
|
2.95
|
|
|
|
|
|
||||
Weighted average ordinary shares outstanding - diluted
|
21,775,066
|
|
|
20,904,176
|
|
•
|
Atrium has been a consistent top-quartile performing Lloyd's business and is currently seeing market opportunities that are resulting in an increase to premiums written.
|
•
|
StarStone, with the strong support from its shareholders, has undertaken a significant re-positioning of its underwriting portfolio, resulting in lower premiums written in 2019. StarStone's focus is to achieve consistent underwriting profitability from its core lines of business. We believe StarStone is better positioned for the future and we expect that StarStone will seek to write more premiums through selective growth opportunities.
|
•
|
Our significant strategic investments include Enhanzed Re, Monument Re, AmTrust, amongst others, more fully described in Note 21 - "Related Party Transactions" in the notes to our consolidated financial statements included within Item 8 of this Annual Report on Form 10-K.
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
INCOME
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
1,154,861
|
|
|
$
|
895,575
|
|
|
$
|
259,286
|
|
Fees and commission income
|
28,453
|
|
|
35,088
|
|
|
(6,635
|
)
|
|||
Net investment income
|
321,276
|
|
|
270,671
|
|
|
50,605
|
|
|||
Net realized and unrealized gains (losses)
|
1,031,351
|
|
|
(412,884
|
)
|
|
1,444,235
|
|
|||
Other income
|
37,170
|
|
|
35,085
|
|
|
2,085
|
|
|||
|
2,573,111
|
|
|
823,535
|
|
|
1,749,576
|
|
|||
EXPENSES
|
|
|
|
|
|
||||||
Net incurred losses and LAE
|
872,575
|
|
|
454,025
|
|
|
418,550
|
|
|||
Life and annuity policy benefits
|
91
|
|
|
1,003
|
|
|
(912
|
)
|
|||
Acquisition costs
|
305,951
|
|
|
192,790
|
|
|
113,161
|
|
|||
General and administrative expenses
|
473,086
|
|
|
407,375
|
|
|
65,711
|
|
|||
Interest expense
|
52,541
|
|
|
26,217
|
|
|
26,324
|
|
|||
Net foreign exchange (gains) losses
|
(7,879
|
)
|
|
2,668
|
|
|
(10,547
|
)
|
|||
|
1,696,365
|
|
|
1,084,078
|
|
|
612,287
|
|
|||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
876,746
|
|
|
(260,543
|
)
|
|
1,137,289
|
|
|||
Income tax benefit (expense)
|
(4,437
|
)
|
|
6,124
|
|
|
(10,561
|
)
|
|||
Earnings from equity method investments
|
55,910
|
|
|
42,147
|
|
|
13,763
|
|
|||
NET EARNINGS (LOSS)
|
928,219
|
|
|
(212,272
|
)
|
|
1,140,491
|
|
|||
Net loss (earnings) attributable to noncontrolling interest
|
9,870
|
|
|
62,051
|
|
|
(52,181
|
)
|
|||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
938,089
|
|
|
(150,221
|
)
|
|
1,088,310
|
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
(23,781
|
)
|
|||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
1,064,529
|
|
•
|
Consolidated net earnings of $902.2 million and basic and diluted earnings per share of $42.00 and $41.43, respectively;
|
•
|
Non-GAAP operating income of $553.4 million and diluted non-GAAP operating income per ordinary share of $25.42. For a reconciliation of non-GAAP operating income to net earnings (loss) calculated in accordance with GAAP and diluted non-GAAP operating income per ordinary share to diluted net earnings (loss) per ordinary share calculated in accordance with GAAP, see "Non-GAAP Financial Measure" above;
|
•
|
Net earnings from Non-life Run-off segment of $1,059.8 million;
|
•
|
Combined ratio of 90.6% for our Atrium segment, with net premiums earned of $164.1 million.
|
•
|
Combined ratio of 103.4% for StarStone's core business lines, and 111.9% for StarStone Group after intragroup reinsurance cessions.
|
•
|
Net investment income of $321.3 million and net realized and unrealized gains of $1,031.4 million.
|
•
|
Total cash and investments of $14,263.0 million;
|
•
|
Total reinsurance balances recoverable on paid and unpaid losses of $2,379.9 million;
|
•
|
Total assets of $19,363.3 million;
|
•
|
Total gross and net reserves for losses and LAE of $10,429.2 million and $8,047.1 million, respectively. In our Non-life Run-off operations during 2019, gross and net reserves acquired and assumed were $2,109.1 million and $1,587.0 million, respectively;
|
•
|
Total capital under management of $6,486.3 million, including common equity of $4,332.2 million, preferred equity of $510.0 million, noncontrolling interests of $453.0 million, and debt of $1,191.2 million; and
|
•
|
Diluted book value per ordinary share of $197.93, an annual increase of 26.9%.
|
•
|
Non-life Run-off Segment - Our Non-life Run-off segment is the predominant driver of our results, contributing $1,059.8 million of net income to our consolidated results in 2019, an increase of $1,034.6 million compared to 2018, primarily due to net realized and unrealized gains on both our fixed income portfolio and our other investments;
|
•
|
Higher Net Investment Income - Total net investment income increased by $50.6 million in 2019, compared to 2018. The increase was primarily attributable to an increase in average invested assets and an increase in the book yield we obtained on our assets. The increase in average invested assets was primarily due to the new business we acquired by completing the Morse TEC, Zurich, Maiden Re Bermuda, Amerisure and AmTrust RITC transactions in 2019. The increase in the book yield was primarily due to the contractual yield received on the 2019 transactions and our asset allocation strategies;
|
•
|
Atrium - Net earnings attributable to the Atrium segment were $12.1 million in 2019, compared to $9.0 million in 2018. The combined ratio in 2019 was 90.6%, compared to 94.5% in 2018, and the improvement was primarily driven by a lower operating expense ratio;
|
•
|
StarStone - The StarStone segment results improved by $57.8 million, with net losses of $100.7 million in 2019, compared to net losses of $158.6 million in 2018. The decrease in net losses was primarily due to net realized and unrealized gains on investments in 2019, compared to net realized and unrealized losses on investments in 2018. Included in the segment results, the combined ratio for the StarStone Group was 111.9% in 2019 compared to 125.3% in 2018. StarStone has been repositioning the underwriting portfolio, resulting in significant improvement in the profitability of the core lines to achieve a combined ratio of 103.4%. The segment's underwriting result was impacted by large current year loss activity predominantly related to exited lines, and prior year adverse loss development;
|
•
|
Other Activities - Net losses attributable to our other activities were $69.0 million in 2019, compared to $38.0 million in 2018. The increase in net losses was primarily driven by the dividends on our preferred shares and largely related to increased performance-based compensation due to higher net earnings.
|
•
|
Net Realized and Unrealized Gains (Losses) - In 2019, net realized and unrealized gains were $1,031.4 million, compared to net losses of $412.9 million in 2018. The net realized and unrealized gains in 2019 were primarily attributable to an increase in the valuation of our fixed maturity investments due to declining interest rates and tighter credit spreads and gains on our other investments primarily due to strong performance in the global equity markets. Many insurance companies predominantly use available-for-sale accounting where unrealized amounts are recorded directly to shareholders’ equity and therefore do not impact earnings. Unrealized amounts would only become realizable in the event of a sale of the specific securities prior to maturity or a credit default. We have historically utilized trading accounting which is reflected
|
•
|
Noncontrolling Interest - Net (earnings) losses attributable to noncontrolling interest is the share of results from those subsidiary companies in which there are either noncontrolling interests or redeemable noncontrolling interests. In 2019, the net loss attributable to noncontrolling interest was $9.9 million, compared to net loss attributable to noncontrolling interest of $62.1 million in 2018. The reduction in losses attributable to noncontrolling interest was primarily due to an improvement in StarStone, as discussed above;
|
•
|
Income Taxes - We recorded an income tax expense of $4.4 million in 2019, compared to an income tax benefit of $6.1 million in 2018, a change of $10.6 million. Our effective tax rate was 0.5% in 2019 compared with 2.8% in 2018, primarily relating to the geographic distribution of our pre-tax net earnings (losses) between our taxable and non-taxable jurisdictions in 2018; and
|
•
|
Our non-GAAP operating income, which excludes the impact of unrealized losses on fixed maturity securities and other items, was $553.4 million for the year ended December 31, 2019, an increase of $491.8 million from non-GAAP operating income of $61.6 million for the year ended December 31, 2018. The increase was primarily attributable to our other investments results. For a reconciliation of non-GAAP operating income to net earnings (loss) calculated in accordance with GAAP, see "Non-GAAP Financial Measures" above.
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Segment split of net earnings (loss) attributable to Enstar Group Limited:
|
|
|
|
|
|
||||||
Non-life Run-off
|
$
|
1,059,804
|
|
|
$
|
25,222
|
|
|
$
|
1,034,582
|
|
Atrium
|
12,125
|
|
|
8,997
|
|
|
3,128
|
|
|||
StarStone
|
(100,733
|
)
|
|
(158,580
|
)
|
|
57,847
|
|
|||
Other
|
(69,021
|
)
|
|
(37,993
|
)
|
|
(31,028
|
)
|
|||
Net earnings (loss) attributable to Enstar Group Limited ordinary shareholders
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
1,064,529
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Gross premiums written
|
$
|
(25,069
|
)
|
|
$
|
(8,910
|
)
|
|
$
|
(16,159
|
)
|
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
(25,338
|
)
|
|
$
|
(9,217
|
)
|
|
$
|
(16,121
|
)
|
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
168,496
|
|
|
$
|
9,427
|
|
|
$
|
159,069
|
|
Net incurred losses and LAE
|
(51,625
|
)
|
|
306,067
|
|
|
(357,692
|
)
|
|||
Acquisition costs
|
(73,642
|
)
|
|
(4,006
|
)
|
|
(69,636
|
)
|
|||
Operating expenses
|
(199,756
|
)
|
|
(158,731
|
)
|
|
(41,025
|
)
|
|||
Underwriting income (loss)
|
(156,527
|
)
|
|
152,757
|
|
|
(309,284
|
)
|
|||
Net investment income
|
275,236
|
|
|
226,287
|
|
|
48,949
|
|
|||
Net realized and unrealized gains (losses)
|
968,350
|
|
|
(381,712
|
)
|
|
1,350,062
|
|
|||
Fees and commission income
|
18,293
|
|
|
16,466
|
|
|
1,827
|
|
|||
Other income
|
34,809
|
|
|
35,978
|
|
|
(1,169
|
)
|
|||
Corporate expenses
|
(70,689
|
)
|
|
(39,093
|
)
|
|
(31,596
|
)
|
|||
Interest expense
|
(62,055
|
)
|
|
(30,616
|
)
|
|
(31,439
|
)
|
|||
Net foreign exchange gains
|
9,918
|
|
|
2,534
|
|
|
7,384
|
|
|||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
1,017,335
|
|
|
(17,399
|
)
|
|
1,034,734
|
|
|||
Income tax benefit (expense)
|
(7,250
|
)
|
|
3,581
|
|
|
(10,831
|
)
|
|||
Earnings from equity method investments
|
56,128
|
|
|
42,147
|
|
|
13,981
|
|
|||
NET EARNINGS
|
1,066,213
|
|
|
28,329
|
|
|
1,037,884
|
|
|||
Net earnings attributable to noncontrolling interest
|
(6,409
|
)
|
|
(3,107
|
)
|
|
(3,302
|
)
|
|||
NET EARNINGS ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
1,059,804
|
|
|
$
|
25,222
|
|
|
$
|
1,034,582
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Gross premiums written
|
$
|
(25,069
|
)
|
|
$
|
(8,910
|
)
|
|
$
|
(16,159
|
)
|
Ceded reinsurance premiums written
|
(269
|
)
|
|
(307
|
)
|
|
38
|
|
|||
Net premiums written
|
(25,338
|
)
|
|
(9,217
|
)
|
|
(16,121
|
)
|
|||
Gross premiums earned
|
197,009
|
|
|
25,230
|
|
|
171,779
|
|
|||
Ceded reinsurance premiums earned
|
(28,513
|
)
|
|
(15,803
|
)
|
|
(12,710
|
)
|
|||
Net premiums earned
|
$
|
168,496
|
|
|
$
|
9,427
|
|
|
$
|
159,069
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Prior
Periods |
|
Current
Period |
|
Total
|
|
Prior
Periods |
|
Current
Period |
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Net losses paid
|
$
|
1,182,804
|
|
|
$
|
64,820
|
|
|
$
|
1,247,624
|
|
|
$
|
838,812
|
|
|
$
|
5
|
|
|
$
|
838,817
|
|
Net change in case and LAE reserves (1)
|
(553,996
|
)
|
|
23,105
|
|
|
(530,891
|
)
|
|
(552,124
|
)
|
|
4,704
|
|
|
(547,420
|
)
|
||||||
Net change in IBNR reserves (2)
|
(848,776
|
)
|
|
35,194
|
|
|
(813,582
|
)
|
|
(573,127
|
)
|
|
7,742
|
|
|
(565,385
|
)
|
||||||
Increase (reduction) in estimates of net ultimate losses
|
(219,968
|
)
|
|
123,119
|
|
|
(96,849
|
)
|
|
(286,439
|
)
|
|
12,451
|
|
|
(273,988
|
)
|
||||||
Increase (reduction) in provisions for unallocated LAE
|
(57,844
|
)
|
|
440
|
|
|
(57,404
|
)
|
|
(65,401
|
)
|
|
—
|
|
|
(65,401
|
)
|
||||||
Amortization of deferred charge assets
|
38,627
|
|
|
—
|
|
|
38,627
|
|
|
13,781
|
|
|
—
|
|
|
13,781
|
|
||||||
Amortization of fair value adjustments
|
50,070
|
|
|
—
|
|
|
50,070
|
|
|
12,877
|
|
|
—
|
|
|
12,877
|
|
||||||
Changes in fair value - fair value option
|
117,181
|
|
|
—
|
|
|
117,181
|
|
|
6,664
|
|
|
—
|
|
|
6,664
|
|
||||||
Net incurred losses and LAE
|
$
|
(71,934
|
)
|
|
$
|
123,559
|
|
|
$
|
51,625
|
|
|
$
|
(318,518
|
)
|
|
$
|
12,451
|
|
|
$
|
(306,067
|
)
|
(1)
|
Net change in case and LAE reserves comprises the movement during the year in specific case reserve liabilities as a result of claims settlements or changes advised to us by our policyholders and attorneys, less changes in case reserves recoverable advised by us to our reinsurers as a result of the settlement or movement of assumed claims.
|
(2)
|
Net change in IBNR represents the gross change in our actuarial estimates of IBNR, less amounts recoverable.
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Operating expenses
|
$
|
199,756
|
|
|
$
|
158,731
|
|
|
$
|
41,025
|
|
Corporate expenses
|
70,689
|
|
|
39,093
|
|
|
31,596
|
|
|||
General and administrative expenses
|
$
|
270,445
|
|
|
$
|
197,824
|
|
|
$
|
72,621
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Gross premiums written
|
$
|
192,373
|
|
|
$
|
171,494
|
|
|
$
|
20,879
|
|
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
172,356
|
|
|
$
|
153,488
|
|
|
$
|
18,868
|
|
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
164,059
|
|
|
$
|
146,315
|
|
|
$
|
17,744
|
|
Net incurred losses and LAE
|
(77,276
|
)
|
|
(69,810
|
)
|
|
(7,466
|
)
|
|||
Acquisition costs
|
(56,956
|
)
|
|
(50,646
|
)
|
|
(6,310
|
)
|
|||
Operating expenses
|
(14,452
|
)
|
|
(17,777
|
)
|
|
3,325
|
|
|||
Underwriting income
|
15,375
|
|
|
8,082
|
|
|
7,293
|
|
|||
Net investment income
|
7,049
|
|
|
5,686
|
|
|
1,363
|
|
|||
Net realized and unrealized gains (losses)
|
6,195
|
|
|
(3,251
|
)
|
|
9,446
|
|
|||
Fees and commission income
|
10,160
|
|
|
18,622
|
|
|
(8,462
|
)
|
|||
Other income
|
140
|
|
|
162
|
|
|
(22
|
)
|
|||
Corporate expenses
|
(13,825
|
)
|
|
(6,921
|
)
|
|
(6,904
|
)
|
|||
Net foreign exchange losses
|
(504
|
)
|
|
(3,394
|
)
|
|
2,890
|
|
|||
EARNINGS BEFORE INCOME TAXES
|
24,590
|
|
|
18,986
|
|
|
5,604
|
|
|||
Income tax expense
|
(4,033
|
)
|
|
(3,732
|
)
|
|
(301
|
)
|
|||
NET EARNINGS
|
20,557
|
|
|
15,254
|
|
|
5,303
|
|
|||
Net earnings attributable to noncontrolling interest
|
(8,432
|
)
|
|
(6,257
|
)
|
|
(2,175
|
)
|
|||
NET EARNINGS ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
12,125
|
|
|
$
|
8,997
|
|
|
$
|
3,128
|
|
|
|
|
|
|
|
||||||
Underwriting ratios:
|
|
|
|
|
|
||||||
Loss ratio (1)
|
47.1
|
%
|
|
47.7
|
%
|
|
(0.6
|
)%
|
|||
Acquisition cost ratio (1)
|
34.7
|
%
|
|
34.6
|
%
|
|
0.1
|
%
|
|||
Operating expense ratio (1)
|
8.8
|
%
|
|
12.2
|
%
|
|
(3.4
|
)%
|
|||
Combined ratio (1)
|
90.6
|
%
|
|
94.5
|
%
|
|
(3.9
|
)%
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Marine, Aviation and Transit
|
$
|
49,275
|
|
|
$
|
40,227
|
|
|
$
|
9,048
|
|
Binding Authorities
|
78,825
|
|
|
76,389
|
|
|
2,436
|
|
|||
Reinsurance
|
17,778
|
|
|
17,763
|
|
|
15
|
|
|||
Accident and Health
|
21,585
|
|
|
18,836
|
|
|
2,749
|
|
|||
Non-Marine Direct and Facultative
|
24,910
|
|
|
18,279
|
|
|
6,631
|
|
|||
Total
|
$
|
192,373
|
|
|
$
|
171,494
|
|
|
$
|
20,879
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Marine, Aviation and Transit
|
$
|
36,312
|
|
|
$
|
31,738
|
|
|
$
|
4,574
|
|
Binding Authorities
|
75,142
|
|
|
67,423
|
|
|
7,719
|
|
|||
Reinsurance
|
14,433
|
|
|
14,029
|
|
|
404
|
|
|||
Accident and Health
|
18,922
|
|
|
17,689
|
|
|
1,233
|
|
|||
Non-Marine Direct and Facultative
|
19,250
|
|
|
15,436
|
|
|
3,814
|
|
|||
Total
|
$
|
164,059
|
|
|
$
|
146,315
|
|
|
$
|
17,744
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Prior
Periods |
|
Current
Period |
|
Total
|
|
Prior
Periods |
|
Current
Period |
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Net losses paid
|
$
|
43,572
|
|
|
$
|
34,617
|
|
|
$
|
78,189
|
|
|
$
|
28,969
|
|
|
$
|
35,537
|
|
|
$
|
64,506
|
|
Net change in case and LAE reserves (1)
|
(13,278
|
)
|
|
16,812
|
|
|
3,534
|
|
|
(10,161
|
)
|
|
16,492
|
|
|
6,331
|
|
||||||
Net change in IBNR reserves (2)
|
(38,380
|
)
|
|
33,598
|
|
|
(4,782
|
)
|
|
(27,507
|
)
|
|
31,598
|
|
|
4,091
|
|
||||||
Increase (reduction) in estimates of net ultimate losses
|
(8,086
|
)
|
|
85,027
|
|
|
76,941
|
|
|
(8,699
|
)
|
|
83,627
|
|
|
74,928
|
|
||||||
Amortization of fair value adjustments
|
335
|
|
|
—
|
|
|
335
|
|
|
(5,118
|
)
|
|
—
|
|
|
(5,118
|
)
|
||||||
Net incurred losses and LAE
|
$
|
(7,751
|
)
|
|
$
|
85,027
|
|
|
$
|
77,276
|
|
|
$
|
(13,817
|
)
|
|
$
|
83,627
|
|
|
$
|
69,810
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Gross premiums written
|
$
|
917,555
|
|
|
$
|
1,121,135
|
|
|
$
|
(203,580
|
)
|
|
|
|
|
|
|
||||||
Net premiums written
|
$
|
735,429
|
|
|
$
|
805,562
|
|
|
$
|
(70,133
|
)
|
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
801,926
|
|
|
$
|
714,959
|
|
|
$
|
86,967
|
|
Net incurred losses and LAE
|
(727,636
|
)
|
|
(673,383
|
)
|
|
(54,253
|
)
|
|||
Acquisition costs
|
(174,711
|
)
|
|
(135,452
|
)
|
|
(39,259
|
)
|
|||
Operating expenses
|
(120,629
|
)
|
|
(156,726
|
)
|
|
36,097
|
|
|||
Underwriting loss
|
(221,050
|
)
|
|
(250,602
|
)
|
|
29,552
|
|
|||
Net investment income
|
47,401
|
|
|
35,973
|
|
|
11,428
|
|
|||
Net realized and unrealized gains (losses)
|
50,957
|
|
|
(17,672
|
)
|
|
68,629
|
|
|||
Other income (losses)
|
338
|
|
|
(541
|
)
|
|
879
|
|
|||
Corporate expenses
|
(7,790
|
)
|
|
—
|
|
|
(7,790
|
)
|
|||
Interest expense
|
(475
|
)
|
|
(624
|
)
|
|
149
|
|
|||
Net foreign exchange losses
|
(1,538
|
)
|
|
(2,856
|
)
|
|
1,318
|
|
|||
LOSS BEFORE INCOME TAXES
|
(132,157
|
)
|
|
(236,322
|
)
|
|
104,165
|
|
|||
Income tax benefit
|
6,931
|
|
|
6,327
|
|
|
604
|
|
|||
Losses from equity method investments
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
|||
NET LOSS
|
(125,444
|
)
|
|
(229,995
|
)
|
|
104,551
|
|
|||
Net loss attributable to noncontrolling interest
|
24,711
|
|
|
71,415
|
|
|
(46,704
|
)
|
|||
NET LOSS ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
(100,733
|
)
|
|
$
|
(158,580
|
)
|
|
$
|
57,847
|
|
|
|
|
|
|
|
||||||
Underwriting ratios:
|
|
|
|
|
|
||||||
Loss ratio (1)
|
90.7
|
%
|
|
94.2
|
%
|
|
(3.5
|
)%
|
|||
Acquisition cost ratio (1)
|
21.8
|
%
|
|
18.9
|
%
|
|
2.9
|
%
|
|||
Operating expense ratio (1)
|
15.1
|
%
|
|
22.0
|
%
|
|
(6.9
|
)%
|
|||
Combined ratio (1)
|
127.6
|
%
|
|
135.1
|
%
|
|
(7.5
|
)%
|
(1)
|
Refer to "Underwriting Ratios" for a description of how these ratios are calculated.
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
|
StarStone Group
|
|
StarStone Intra-Group Cessions
|
|
StarStone Segment
|
|
StarStone Group
|
|
StarStone Intra-Group Cessions
|
|
StarStone Segment
|
||||||||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net premiums earned
|
|
$
|
708,188
|
|
|
$
|
93,738
|
|
|
$
|
801,926
|
|
|
$
|
560,670
|
|
|
$
|
154,289
|
|
|
$
|
714,959
|
|
Net incurred losses and LAE
|
|
(533,671
|
)
|
|
(193,965
|
)
|
|
(727,636
|
)
|
|
(472,564
|
)
|
|
(200,819
|
)
|
|
(673,383
|
)
|
||||||
Acquisition costs
|
|
(138,970
|
)
|
|
(35,741
|
)
|
|
(174,711
|
)
|
|
(75,952
|
)
|
|
(59,500
|
)
|
|
(135,452
|
)
|
||||||
Operating expenses
|
|
(120,044
|
)
|
|
(585
|
)
|
|
(120,629
|
)
|
|
(153,733
|
)
|
|
(2,993
|
)
|
|
(156,726
|
)
|
||||||
Underwriting loss
|
|
(84,497
|
)
|
|
(136,553
|
)
|
|
(221,050
|
)
|
|
(141,579
|
)
|
|
(109,023
|
)
|
|
(250,602
|
)
|
||||||
Net investment income
|
|
47,307
|
|
|
94
|
|
|
47,401
|
|
|
35,973
|
|
|
—
|
|
|
35,973
|
|
||||||
Net realized and unrealized gains (losses)
|
|
43,834
|
|
|
7,123
|
|
|
50,957
|
|
|
(17,672
|
)
|
|
—
|
|
|
(17,672
|
)
|
||||||
Other income (losses)
|
|
338
|
|
|
—
|
|
|
338
|
|
|
(541
|
)
|
|
—
|
|
|
(541
|
)
|
||||||
Corporate expenses
|
|
(7,790
|
)
|
|
—
|
|
|
(7,790
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Interest income (expenses)
|
|
(16,612
|
)
|
|
16,137
|
|
|
(475
|
)
|
|
(2,500
|
)
|
|
1,876
|
|
|
(624
|
)
|
||||||
Net foreign exchange gain
|
|
(677
|
)
|
|
(861
|
)
|
|
(1,538
|
)
|
|
(1,208
|
)
|
|
(1,648
|
)
|
|
(2,856
|
)
|
||||||
LOSS BEFORE INCOME TAXES
|
|
(18,097
|
)
|
|
(114,060
|
)
|
|
(132,157
|
)
|
|
(127,527
|
)
|
|
(108,795
|
)
|
|
(236,322
|
)
|
||||||
Income tax benefit
|
|
6,931
|
|
|
—
|
|
|
6,931
|
|
|
6,327
|
|
|
—
|
|
|
6,327
|
|
||||||
Losses from equity method investments
|
|
(218
|
)
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
NET LOSS
|
|
(11,384
|
)
|
|
(114,060
|
)
|
|
(125,444
|
)
|
|
(121,200
|
)
|
|
(108,795
|
)
|
|
(229,995
|
)
|
||||||
Net loss attributable to noncontrolling interest
|
|
4,663
|
|
|
20,048
|
|
|
24,711
|
|
|
49,877
|
|
|
21,538
|
|
|
71,415
|
|
||||||
NET LOSS ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
|
$
|
(6,721
|
)
|
|
$
|
(94,012
|
)
|
|
$
|
(100,733
|
)
|
|
$
|
(71,323
|
)
|
|
$
|
(87,257
|
)
|
|
$
|
(158,580
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Underwriting ratios:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio (1)
|
|
75.4
|
%
|
|
206.9
|
%
|
|
90.7
|
%
|
|
84.3
|
%
|
|
130.2
|
%
|
|
94.2
|
%
|
||||||
Acquisition cost ratio (1)
|
|
19.6
|
%
|
|
38.1
|
%
|
|
21.8
|
%
|
|
13.5
|
%
|
|
38.6
|
%
|
|
18.9
|
%
|
||||||
Operating expense ratio (1)
|
|
16.9
|
%
|
|
0.7
|
%
|
|
15.1
|
%
|
|
27.5
|
%
|
|
1.9
|
%
|
|
22.0
|
%
|
||||||
Combined ratio (1)
|
|
111.9
|
%
|
|
245.7
|
%
|
|
127.6
|
%
|
|
125.3
|
%
|
|
170.7
|
%
|
|
135.1
|
%
|
(1)
|
Refer to "Underwriting Ratios" for a description of how these ratios are calculated.
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Core Lines
|
|
Exited Lines
|
|
StarStone Group
|
|
Core Lines
|
|
Exited Lines
|
|
StarStone Group
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Net premiums earned
|
$
|
616,176
|
|
|
$
|
92,012
|
|
|
$
|
708,188
|
|
|
$
|
409,725
|
|
|
$
|
150,945
|
|
|
$
|
560,670
|
|
Net incurred losses and LAE
|
(416,981
|
)
|
|
(116,690
|
)
|
|
(533,671
|
)
|
|
(309,750
|
)
|
|
(162,814
|
)
|
|
(472,564
|
)
|
||||||
Acquisition costs
|
(121,366
|
)
|
|
(17,604
|
)
|
|
(138,970
|
)
|
|
(68,608
|
)
|
|
(7,344
|
)
|
|
(75,952
|
)
|
||||||
Operating expenses
|
(98,983
|
)
|
|
(21,061
|
)
|
|
(120,044
|
)
|
|
(108,405
|
)
|
|
(45,328
|
)
|
|
(153,733
|
)
|
||||||
Underwriting income (loss)
|
$
|
(21,154
|
)
|
|
$
|
(63,343
|
)
|
|
$
|
(84,497
|
)
|
|
$
|
(77,038
|
)
|
|
$
|
(64,541
|
)
|
|
$
|
(141,579
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Underwriting ratios(1):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio
|
67.7
|
%
|
|
126.8
|
%
|
|
75.4
|
%
|
|
75.6
|
%
|
|
107.9
|
%
|
|
84.3
|
%
|
||||||
Acquisition cost ratio
|
19.7
|
%
|
|
19.1
|
%
|
|
19.6
|
%
|
|
16.7
|
%
|
|
4.9
|
%
|
|
13.5
|
%
|
||||||
Operating expense ratio
|
16.0
|
%
|
|
22.9
|
%
|
|
16.9
|
%
|
|
26.5
|
%
|
|
30.0
|
%
|
|
27.5
|
%
|
||||||
Combined ratio
|
103.4
|
%
|
|
168.8
|
%
|
|
111.9
|
%
|
|
118.8
|
%
|
|
142.8
|
%
|
|
125.3
|
%
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Casualty
|
$
|
364,413
|
|
|
$
|
332,042
|
|
|
$
|
32,371
|
|
Marine
|
245,046
|
|
|
272,714
|
|
|
(27,668
|
)
|
|||
Property
|
118,574
|
|
|
304,939
|
|
|
(186,365
|
)
|
|||
Aerospace
|
72,331
|
|
|
73,534
|
|
|
(1,203
|
)
|
|||
Workers' Compensation
|
117,191
|
|
|
137,906
|
|
|
(20,715
|
)
|
|||
Total
|
$
|
917,555
|
|
|
$
|
1,121,135
|
|
|
$
|
(203,580
|
)
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Casualty
|
$
|
321,088
|
|
|
$
|
253,065
|
|
|
$
|
68,023
|
|
Marine
|
221,740
|
|
|
188,556
|
|
|
33,184
|
|
|||
Property
|
138,090
|
|
|
156,695
|
|
|
(18,605
|
)
|
|||
Aerospace
|
44,755
|
|
|
57,776
|
|
|
(13,021
|
)
|
|||
Workers' Compensation
|
76,253
|
|
|
58,867
|
|
|
17,386
|
|
|||
Total
|
$
|
801,926
|
|
|
$
|
714,959
|
|
|
$
|
86,967
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Prior
Periods |
|
Current
Period |
|
Total
|
|
Prior
Periods |
|
Current
Period |
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Net losses paid
|
$
|
435,372
|
|
|
$
|
96,261
|
|
|
$
|
531,633
|
|
|
$
|
326,352
|
|
|
$
|
150,778
|
|
|
$
|
477,130
|
|
Net change in case and LAE reserves (1)
|
(85,983
|
)
|
|
111,950
|
|
|
25,967
|
|
|
(81,491
|
)
|
|
157,378
|
|
|
75,887
|
|
||||||
Net change in IBNR reserves (2)
|
(214,787
|
)
|
|
381,214
|
|
|
166,427
|
|
|
(144,212
|
)
|
|
258,091
|
|
|
113,879
|
|
||||||
Increase in estimates of net ultimate losses
|
134,602
|
|
|
589,425
|
|
|
724,027
|
|
|
100,649
|
|
|
566,247
|
|
|
666,896
|
|
||||||
Increase (reduction) in provisions for unallocated LAE
|
(5,602
|
)
|
|
9,043
|
|
|
3,441
|
|
|
(5,892
|
)
|
|
12,645
|
|
|
6,753
|
|
||||||
Amortization of fair value adjustments
|
168
|
|
|
—
|
|
|
168
|
|
|
(266
|
)
|
|
—
|
|
|
(266
|
)
|
||||||
Net incurred losses and LAE
|
$
|
129,168
|
|
|
$
|
598,468
|
|
|
$
|
727,636
|
|
|
$
|
94,491
|
|
|
$
|
578,892
|
|
|
$
|
673,383
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
Net premiums earned
|
$
|
20,380
|
|
|
$
|
24,874
|
|
|
$
|
(4,494
|
)
|
Net incurred losses and LAE
|
(16,038
|
)
|
|
(16,899
|
)
|
|
861
|
|
|||
Life and annuity policy benefits
|
(91
|
)
|
|
(1,003
|
)
|
|
912
|
|
|||
Acquisition costs
|
(642
|
)
|
|
(2,686
|
)
|
|
2,044
|
|
|||
Underwriting income
|
3,609
|
|
|
4,286
|
|
|
(677
|
)
|
|||
Net investment (losses) income
|
(8,410
|
)
|
|
2,725
|
|
|
(11,135
|
)
|
|||
Net realized and unrealized gains (losses)
|
5,849
|
|
|
(10,249
|
)
|
|
16,098
|
|
|||
Other income (losses)
|
1,883
|
|
|
(514
|
)
|
|
2,397
|
|
|||
Corporate expenses
|
(45,945
|
)
|
|
(28,127
|
)
|
|
(17,818
|
)
|
|||
Interest income
|
9,989
|
|
|
5,023
|
|
|
4,966
|
|
|||
Net foreign exchange gains
|
3
|
|
|
1,048
|
|
|
(1,045
|
)
|
|||
LOSS BEFORE INCOME TAXES
|
(33,022
|
)
|
|
(25,808
|
)
|
|
(7,214
|
)
|
|||
Income tax expense
|
(85
|
)
|
|
(52
|
)
|
|
(33
|
)
|
|||
NET LOSS ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
(33,107
|
)
|
|
(25,860
|
)
|
|
(7,247
|
)
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
(23,781
|
)
|
|||
NET LOSS ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
(69,021
|
)
|
|
$
|
(37,993
|
)
|
|
$
|
(31,028
|
)
|
•
|
Underwriting income was $3.6 million in 2019, compared to $4.3 million in 2018, a decrease of $0.7 million.
|
•
|
Investment results are separately discussed in the "Investments Results - Consolidated" section.
|
•
|
Corporate expenses were $45.9 million in 2019, compared to $28.1 million in 2018, an increase of $17.8 million, primarily due to an increase in performance-related compensation as a result of higher consolidated net earnings in 2019 compared to 2018.
|
•
|
Interest income was $10.0 million in 2019, compared to $5.0 million in 2018, an increase of $5.0 million. This represents the elimination of interest expense between our reportable segments.
|
•
|
In 2019, we paid $35.9 million of dividends on our Series D and Series E Preferred Shares compared to $12.1 million in 2018. On June 28, 2018, we issued 16,000 Series D Preferred Shares with an aggregate liquidation value of $400.0 million. On November 21, 2018, we issued 4,400 Series E Preferred Shares with an aggregate liquidation value of $110.0 million.
|
•
|
To follow an investment strategy designed to emphasize the security and growth of our invested assets that also meet our credit quality and diversification objectives.
|
•
|
To provide sufficient liquidity for the prompt payment of claims and contract liabilities.
|
•
|
To seek superior risk-adjusted returns, by allocating a portion of our portfolio to non-investment grade securities in accordance with our investment guidelines.
|
•
|
To consider the duration characteristics of our liabilities in determining the extent to which we correlate with assets of comparable duration depending on our other investment strategies and to the extent practicable.
|
|
|
2019
|
||||||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||||||||||
Short-term investments, trading, at fair value
|
|
$
|
50,268
|
|
|
$
|
1,222
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
51,490
|
|
Short-term investments, available-for-sale, at fair value
|
|
121,780
|
|
|
—
|
|
|
6,555
|
|
|
—
|
|
|
128,335
|
|
|||||
Fixed maturities, trading, at fair value
|
|
5,378,533
|
|
|
155,510
|
|
|
812,286
|
|
|
—
|
|
|
6,346,329
|
|
|||||
Fixed maturities, available-for-sale, at fair value
|
|
1,446,912
|
|
|
15,310
|
|
|
451,167
|
|
|
—
|
|
|
1,913,389
|
|
|||||
Funds held - directly managed
|
|
1,187,552
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,187,552
|
|
|||||
Equities, at fair value
|
|
576,893
|
|
|
22,079
|
|
|
130,749
|
|
|
—
|
|
|
729,721
|
|
|||||
Other investments, at fair value
|
|
2,386,776
|
|
|
7,417
|
|
|
130,227
|
|
|
—
|
|
|
2,524,420
|
|
|||||
Other investments, at cost
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Equity method investments
|
|
326,277
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
326,277
|
|
|||||
Total investments
|
|
11,474,991
|
|
|
201,538
|
|
|
1,530,984
|
|
|
—
|
|
|
13,207,513
|
|
|||||
Cash and cash equivalents (including restricted cash)
|
|
666,705
|
|
|
58,369
|
|
|
326,136
|
|
|
4,567
|
|
|
1,055,777
|
|
|||||
Funds held by reinsured companies
|
|
336,470
|
|
|
27,451
|
|
|
36,194
|
|
|
8,620
|
|
|
408,735
|
|
|||||
Total investable assets
|
|
$
|
12,478,166
|
|
|
$
|
287,358
|
|
|
$
|
1,893,314
|
|
|
$
|
13,187
|
|
|
$
|
14,672,025
|
|
Duration (in years) (1)
|
|
5.24
|
|
|
1.86
|
|
|
2.53
|
|
|
0.00
|
|
|
4.76
|
|
|||||
Average credit rating (2)
|
|
A+
|
|
|
AA-
|
|
|
A+
|
|
|
AAA
|
|
|
A+
|
|
|
|
2018
|
||||||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||||||||||
Short-term investments, trading, at fair value
|
|
$
|
106,375
|
|
|
$
|
541
|
|
|
$
|
7,200
|
|
|
$
|
—
|
|
|
$
|
114,116
|
|
Fixed maturities, trading, at fair value
|
|
5,790,219
|
|
|
139,121
|
|
|
1,319,453
|
|
|
—
|
|
|
7,248,793
|
|
|||||
Fixed maturities, available-for-sale, at fair value
|
|
—
|
|
|
29,975
|
|
|
—
|
|
|
121,634
|
|
|
151,609
|
|
|||||
Funds held - directly managed
|
|
1,198,154
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,198,154
|
|
|||||
Equities, at fair value
|
|
335,632
|
|
|
3,193
|
|
|
28,300
|
|
|
—
|
|
|
367,125
|
|
|||||
Other investments, at fair value
|
|
1,825,307
|
|
|
7,166
|
|
|
113,024
|
|
|
12,260
|
|
|
1,957,757
|
|
|||||
Equity method investments
|
|
204,507
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
204,507
|
|
|||||
Total investments
|
|
9,460,194
|
|
|
179,996
|
|
|
1,467,977
|
|
|
133,894
|
|
|
11,242,061
|
|
|||||
Cash and cash equivalents (including restricted cash)
|
|
585,956
|
|
|
54,679
|
|
|
318,811
|
|
|
23,138
|
|
|
982,584
|
|
|||||
Funds held by reinsured companies
|
|
263,713
|
|
|
26,489
|
|
|
20,823
|
|
|
10,242
|
|
|
321,267
|
|
|||||
Total investable assets
|
|
$
|
10,309,863
|
|
|
$
|
261,164
|
|
|
$
|
1,807,611
|
|
|
$
|
167,274
|
|
|
$
|
12,545,912
|
|
Duration (in years) (1)
|
|
5.41
|
|
|
1.70
|
|
|
2.66
|
|
|
5.70
|
|
|
4.86
|
|
|||||
Average credit rating (2)
|
|
A+
|
|
|
AA-
|
|
|
A+
|
|
|
AA-
|
|
|
A+
|
|
|
|
2019
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
Non-OTTI
|
|
Fair
Value
|
||||||||
U.S. government and agency
|
|
$
|
730,396
|
|
|
$
|
6,869
|
|
|
$
|
(1,222
|
)
|
|
$
|
736,043
|
|
U.K. government
|
|
155,261
|
|
|
6,628
|
|
|
(117
|
)
|
|
161,772
|
|
||||
Other government
|
|
684,117
|
|
|
24,994
|
|
|
(6,254
|
)
|
|
702,857
|
|
||||
Corporate
|
|
5,479,839
|
|
|
236,521
|
|
|
(19,293
|
)
|
|
5,697,067
|
|
||||
Municipal
|
|
157,868
|
|
|
10,161
|
|
|
(147
|
)
|
|
167,882
|
|
||||
Residential mortgage-backed
|
|
466,932
|
|
|
6,442
|
|
|
(1,538
|
)
|
|
471,836
|
|
||||
Commercial mortgage-backed
|
|
882,603
|
|
|
21,318
|
|
|
(3,892
|
)
|
|
900,029
|
|
||||
Asset-backed
|
|
779,279
|
|
|
2,035
|
|
|
(5,912
|
)
|
|
775,402
|
|
||||
|
|
$
|
9,336,295
|
|
|
$
|
314,968
|
|
|
$
|
(38,375
|
)
|
|
$
|
9,612,888
|
|
|
|
2018
|
||||||||||||||
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
Non-OTTI
|
|
Fair
Value
|
||||||||
U.S. government and agency
|
|
$
|
512,360
|
|
|
$
|
1,904
|
|
|
$
|
(4,019
|
)
|
|
$
|
510,245
|
|
U.K. government
|
|
301,749
|
|
|
6,526
|
|
|
(7,644
|
)
|
|
300,631
|
|
||||
Other government
|
|
814,614
|
|
|
5,261
|
|
|
(26,065
|
)
|
|
793,810
|
|
||||
Corporate
|
|
5,019,018
|
|
|
12,195
|
|
|
(191,373
|
)
|
|
4,839,840
|
|
||||
Municipal
|
|
132,928
|
|
|
494
|
|
|
(3,157
|
)
|
|
130,265
|
|
||||
Residential mortgage-backed
|
|
772,457
|
|
|
5,846
|
|
|
(4,746
|
)
|
|
773,557
|
|
||||
Commercial mortgage-backed
|
|
729,232
|
|
|
2,613
|
|
|
(18,782
|
)
|
|
713,063
|
|
||||
Asset-backed
|
|
642,618
|
|
|
1,032
|
|
|
(7,169
|
)
|
|
636,481
|
|
||||
|
|
$
|
8,924,976
|
|
|
$
|
35,871
|
|
|
$
|
(262,955
|
)
|
|
$
|
8,697,892
|
|
|
Fair Value
|
|
Average Credit Rating
|
||
|
(in thousands of U.S. dollars)
|
|
|
||
Citigroup Inc
|
$
|
115,392
|
|
|
BBB+
|
Bank of America Corp
|
111,165
|
|
|
A
|
|
JPMorgan Chase & Co
|
109,528
|
|
|
A
|
|
Morgan Stanley
|
106,453
|
|
|
A-
|
|
Apple Inc
|
101,538
|
|
|
AA+
|
|
Wells Fargo & Co
|
86,221
|
|
|
A
|
|
Comcast Corp
|
80,342
|
|
|
A-
|
|
HSBC Holdings PLC
|
68,469
|
|
|
A
|
|
Walmart Inc
|
59,773
|
|
|
AA
|
|
Goldman Sachs Group Inc
|
56,038
|
|
|
A-
|
|
|
$
|
894,919
|
|
|
|
|
|
2019
|
||||||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||||||||||
Net investment income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities and cash and cash equivalents
|
|
$
|
258,277
|
|
|
$
|
6,292
|
|
|
$
|
42,518
|
|
|
$
|
984
|
|
|
$
|
308,071
|
|
Equity securities
|
|
14,660
|
|
|
72
|
|
|
1,939
|
|
|
—
|
|
|
16,671
|
|
|||||
Other
|
|
14,916
|
|
|
975
|
|
|
5,425
|
|
|
(9,524
|
)
|
|
11,792
|
|
|||||
Gross investment income
|
|
287,853
|
|
|
7,339
|
|
|
49,882
|
|
|
(8,540
|
)
|
|
336,534
|
|
|||||
Investment expenses
|
|
(12,617
|
)
|
|
(290
|
)
|
|
(2,481
|
)
|
|
130
|
|
|
(15,258
|
)
|
|||||
Net investment income (expense)
|
|
$
|
275,236
|
|
|
$
|
7,049
|
|
|
$
|
47,401
|
|
|
$
|
(8,410
|
)
|
|
$
|
321,276
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net realized and unrealized gains and losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities
|
|
480,579
|
|
|
4,396
|
|
|
45,604
|
|
|
4,151
|
|
|
534,730
|
|
|||||
Equity securities
|
|
55,336
|
|
|
817
|
|
|
(1,168
|
)
|
|
—
|
|
|
54,985
|
|
|||||
Other investments
|
|
432,435
|
|
|
982
|
|
|
6,521
|
|
|
1,698
|
|
|
441,636
|
|
|||||
Net realized and unrealized gains and losses
|
|
$
|
968,350
|
|
|
$
|
6,195
|
|
|
$
|
50,957
|
|
|
$
|
5,849
|
|
|
$
|
1,031,351
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized income from cash and fixed maturities
|
|
$
|
258,277
|
|
|
$
|
6,292
|
|
|
$
|
42,518
|
|
|
$
|
984
|
|
|
$
|
308,071
|
|
Average aggregate fixed maturities and cash and cash equivalents, at cost (1)
|
|
9,031,708
|
|
|
256,109
|
|
|
1,638,695
|
|
|
72,045
|
|
|
10,998,557
|
|
|||||
Annualized Investment Book Yield
|
|
2.86
|
%
|
|
2.46
|
%
|
|
2.59
|
%
|
|
1.37
|
%
|
|
2.80
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total financial statement return (2)
|
|
$
|
1,243,586
|
|
|
$
|
13,244
|
|
|
$
|
98,358
|
|
|
$
|
(2,561
|
)
|
|
$
|
1,352,627
|
|
Average aggregate invested assets, at fair value (1)
|
|
11,799,264
|
|
|
270,590
|
|
|
1,837,229
|
|
|
79,478
|
|
|
13,986,561
|
|
|||||
Financial Statement Portfolio Return
|
|
10.54
|
%
|
|
4.89
|
%
|
|
5.35
|
%
|
|
(3.22
|
)%
|
|
9.67
|
%
|
|
|
2018
|
||||||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||||||||||
Net investment income:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturities and cash and cash equivalents
|
|
$
|
207,390
|
|
|
$
|
5,221
|
|
|
$
|
34,619
|
|
|
$
|
1,551
|
|
|
$
|
248,781
|
|
Equity securities
|
|
3,831
|
|
|
55
|
|
|
1,511
|
|
|
—
|
|
|
5,397
|
|
|||||
Other investments and other
|
|
21,638
|
|
|
684
|
|
|
2,522
|
|
|
1,370
|
|
|
26,214
|
|
|||||
Gross investment income
|
|
232,859
|
|
|
5,960
|
|
|
38,652
|
|
|
2,921
|
|
|
280,392
|
|
|||||
Investment expenses
|
|
(6,572
|
)
|
|
(274
|
)
|
|
(2,679
|
)
|
|
(196
|
)
|
|
(9,721
|
)
|
|||||
Net investment income
|
|
$
|
226,287
|
|
|
$
|
5,686
|
|
|
$
|
35,973
|
|
|
$
|
2,725
|
|
|
$
|
270,671
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net realized and unrealized gains and losses:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity securities
|
|
$
|
(222,442
|
)
|
|
$
|
(2,514
|
)
|
|
$
|
(18,143
|
)
|
|
$
|
6
|
|
|
$
|
(243,093
|
)
|
Equity securities
|
|
(8,383
|
)
|
|
(154
|
)
|
|
2,722
|
|
|
—
|
|
|
(5,815
|
)
|
|||||
Other investments
|
|
(150,887
|
)
|
|
(583
|
)
|
|
(2,251
|
)
|
|
(10,255
|
)
|
|
(163,976
|
)
|
|||||
Net realized and unrealized losses
|
|
$
|
(381,712
|
)
|
|
$
|
(3,251
|
)
|
|
$
|
(17,672
|
)
|
|
$
|
(10,249
|
)
|
|
$
|
(412,884
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Annualized income from cash and fixed maturities
|
|
$
|
207,390
|
|
|
$
|
5,221
|
|
|
$
|
34,619
|
|
|
$
|
1,551
|
|
|
$
|
248,781
|
|
Average aggregate fixed maturities and cash and cash equivalents, at cost (1)
|
|
7,537,621
|
|
|
265,238
|
|
|
1,535,360
|
|
|
160,359
|
|
|
9,498,578
|
|
|||||
Annualized Investment Book Yield
|
|
2.75
|
%
|
|
1.97
|
%
|
|
2.25
|
%
|
|
0.97
|
%
|
|
2.62
|
%
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total financial statement return (2)
|
|
$
|
(155,425
|
)
|
|
$
|
2,435
|
|
|
$
|
18,301
|
|
|
$
|
(7,524
|
)
|
|
$
|
(142,213
|
)
|
Average aggregate invested assets, at fair value (1)
|
|
9,041,377
|
|
|
272,386
|
|
|
1,670,240
|
|
|
222,822
|
|
|
11,206,825
|
|
|||||
Financial Statement Portfolio Return
|
|
(1.72
|
)%
|
|
0.89
|
%
|
|
1.10
|
%
|
|
(3.38
|
)%
|
|
(1.27
|
)%
|
•
|
net realized and unrealized gains on fixed income securities, including fixed income securities within our funds held portfolios, of $534.7 million in 2019, compared to net realized and unrealized losses of $243.1 million in 2018, an increase of $777.8 million, primarily driven by higher valuations due to declining interest rates and tighter credit spreads in the current period, compared to lower valuations in the comparative period due to higher interest rates and wider credit spreads;
|
•
|
net realized and unrealized gains on equity securities of $55.0 million in 2019, compared to net unrealized losses of $5.8 million in 2018, an increase of $60.8 million, primarily driven by a more favorable movement in global equity markets in 2019 compared to the comparative period; and
|
•
|
net realized and unrealized gains on other investments of $441.6 million in 2019, compared to net realized and unrealized losses of $164.0 million in 2018, representing a change of $605.6 million. The unrealized gains in 2019 primarily comprised unrealized gains in our hedge funds, equity funds, fixed income funds and private equity funds, principally driven by declining interest rates, tighter credit spreads, and a more favorable movement in global equity markets in 2019. The unrealized losses in 2018 primarily comprised unrealized losses in our equity funds, call options on equity, hedge funds, fixed income funds and CLO equities, partially offset by unrealized gains on our private debt and private equities.
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||
Ordinary shareholders' equity
|
|
$
|
4,332,183
|
|
|
$
|
3,391,933
|
|
|
$
|
940,250
|
|
Series D and E Preferred Shares
|
|
510,000
|
|
|
510,000
|
|
|
—
|
|
|||
Total Enstar Group Limited Shareholders' Equity (A)
|
|
4,842,183
|
|
|
3,901,933
|
|
|
940,250
|
|
|||
Noncontrolling interest
|
|
14,168
|
|
|
12,056
|
|
|
2,112
|
|
|||
Total Shareholders' Equity (B)
|
|
4,856,351
|
|
|
3,913,989
|
|
|
942,362
|
|
|||
|
|
|
|
|
|
|
||||||
Senior Notes
|
|
842,216
|
|
|
348,054
|
|
|
494,162
|
|
|||
Revolving credit facility
|
|
—
|
|
|
15,000
|
|
|
(15,000
|
)
|
|||
Term loan facility
|
|
348,991
|
|
|
498,485
|
|
|
(149,494
|
)
|
|||
Total debt (C)
|
|
1,191,207
|
|
|
861,539
|
|
|
329,668
|
|
|||
|
|
|
|
|
|
|
||||||
Redeemable noncontrolling interest (D)
|
|
438,791
|
|
|
458,543
|
|
|
(19,752
|
)
|
|||
|
|
|
|
|
|
|
||||||
Total capitalization = (B) + (C) + (D)
|
|
$
|
6,486,349
|
|
|
$
|
5,234,071
|
|
|
$
|
1,252,278
|
|
|
|
|
|
|
|
|
||||||
Total capitalization attributable to Enstar = (A) + (C)
|
|
$
|
6,033,390
|
|
|
$
|
4,763,472
|
|
|
$
|
1,269,918
|
|
|
|
|
|
|
|
|
||||||
Debt to total capitalization
|
|
18.4
|
%
|
|
16.5
|
%
|
|
1.9
|
%
|
|||
Debt and Series D and E Preferred Shares to total capitalization
|
|
26.2
|
%
|
|
26.2
|
%
|
|
—
|
%
|
|||
|
|
|
|
|
|
|
||||||
Debt to total capitalization attributable to Enstar
|
|
19.7
|
%
|
|
18.1
|
%
|
|
1.6
|
%
|
|||
Debt and Series D and E Preferred Shares to total capitalization attributable to Enstar
|
|
28.2
|
%
|
|
28.8
|
%
|
|
(0.6
|
)%
|
Cash provided by (used in):
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
|
(in thousands of U.S. dollars)
|
||||||||||
Operating activities
|
|
$
|
1,763,516
|
|
|
$
|
(160,072
|
)
|
|
$
|
1,923,588
|
|
Investing activities
|
|
(1,983,537
|
)
|
|
(825,754
|
)
|
|
(1,157,783
|
)
|
|||
Financing activities
|
|
293,538
|
|
|
752,986
|
|
|
(459,448
|
)
|
|||
Effect of exchange rate changes on cash
|
|
(324
|
)
|
|
2,588
|
|
|
(2,912
|
)
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
73,193
|
|
|
(230,252
|
)
|
|
303,445
|
|
|||
Cash and cash equivalents, beginning of year
|
|
982,584
|
|
|
1,212,836
|
|
|
(230,252
|
)
|
|||
Cash and cash equivalents, end of year
|
|
$
|
1,055,777
|
|
|
$
|
982,584
|
|
|
$
|
73,193
|
|
Facility
|
|
Origination Date
|
|
Term
|
|
2019
|
|
2018
|
||||
4.50% Senior Notes due 2022
|
|
March 10, 2017
|
|
5 years
|
|
$
|
348,616
|
|
|
$
|
348,054
|
|
4.95% Senior Notes due 2029
|
|
May 28, 2019
|
|
10 years
|
|
493,600
|
|
|
—
|
|
||
Total Senior Notes
|
|
|
|
|
|
842,216
|
|
|
348,054
|
|
||
EGL Revolving Credit Facility
|
|
August 16, 2018
|
|
5 years
|
|
—
|
|
|
15,000
|
|
||
2018 EGL Term Loan Facility
|
|
December 27, 2018
|
|
3 years
|
|
348,991
|
|
|
498,485
|
|
||
Total debt obligations
|
|
|
|
$
|
1,191,207
|
|
|
$
|
861,539
|
|
|
Total
|
|
Less than
1 Year
|
|
1 - 3
years
|
|
3 - 5
years |
|
6 - 10
years |
|
More than
10 Years |
||||||||||||
|
(in millions of U.S. dollars)
|
||||||||||||||||||||||
Operating Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Estimated gross reserves for losses and LAE (1)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Asbestos
|
$
|
1,916.4
|
|
|
$
|
166.5
|
|
|
$
|
287.4
|
|
|
$
|
237.0
|
|
|
$
|
377.6
|
|
|
$
|
847.9
|
|
Environmental
|
343.3
|
|
|
38.5
|
|
|
66.2
|
|
|
53.0
|
|
|
75.5
|
|
|
110.1
|
|
||||||
General Casualty
|
991.0
|
|
|
215.7
|
|
|
263.1
|
|
|
199.6
|
|
|
195.3
|
|
|
117.3
|
|
||||||
Workers' compensation/personal accident
|
2,248.3
|
|
|
189.7
|
|
|
305.5
|
|
|
356.6
|
|
|
502.7
|
|
|
893.8
|
|
||||||
Marine, aviation and transit
|
411.6
|
|
|
125.7
|
|
|
130.0
|
|
|
60.1
|
|
|
51.6
|
|
|
44.2
|
|
||||||
Construction defect
|
128.1
|
|
|
35.3
|
|
|
46.5
|
|
|
22.8
|
|
|
13.9
|
|
|
9.6
|
|
||||||
Professional indemnity/ Directors & Officers
|
959.3
|
|
|
236.2
|
|
|
300.5
|
|
|
156.2
|
|
|
145.0
|
|
|
121.4
|
|
||||||
Motor
|
714.5
|
|
|
197.5
|
|
|
190.8
|
|
|
88.3
|
|
|
88.5
|
|
|
149.4
|
|
||||||
Property
|
204.2
|
|
|
83.9
|
|
|
68.7
|
|
|
25.3
|
|
|
16.0
|
|
|
10.3
|
|
||||||
Other
|
435.8
|
|
|
114.1
|
|
|
93.1
|
|
|
57.4
|
|
|
71.0
|
|
|
100.2
|
|
||||||
Total Non-Life Run-off
|
8,352.5
|
|
|
1,403.1
|
|
|
1,751.8
|
|
|
1,256.3
|
|
|
1,537.1
|
|
|
2,404.2
|
|
||||||
Atrium
|
225.7
|
|
|
88.7
|
|
|
82.0
|
|
|
33.1
|
|
|
18.3
|
|
|
3.6
|
|
||||||
StarStone
|
1,851.1
|
|
|
644.4
|
|
|
664.2
|
|
|
273.9
|
|
|
191.7
|
|
|
76.9
|
|
||||||
Other
|
23.1
|
|
|
3.4
|
|
|
9.3
|
|
|
4.2
|
|
|
4.2
|
|
|
2.0
|
|
||||||
ULAE
|
362.3
|
|
|
64.1
|
|
|
81.3
|
|
|
51.9
|
|
|
62.4
|
|
|
102.6
|
|
||||||
Estimated gross reserves for losses and LAE (1)
|
10,814.7
|
|
|
2,203.7
|
|
|
2,588.6
|
|
|
1,619.4
|
|
|
1,813.7
|
|
|
2,589.3
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Operating lease obligations
|
105.6
|
|
|
29.3
|
|
|
47.9
|
|
|
13.6
|
|
|
12.7
|
|
|
2.1
|
|
||||||
Investing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Investment commitments to private equity funds, CLO equity funds and real estate debt fund
|
482.3
|
|
|
185.8
|
|
|
155.0
|
|
|
141.5
|
|
|
—
|
|
|
—
|
|
||||||
Investment commitments to equity method investments
|
93.1
|
|
|
93.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Financing Activities
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loan repayments (including estimated interest payments)
|
1,505.8
|
|
|
54.8
|
|
|
789.2
|
|
|
50.5
|
|
|
611.3
|
|
|
—
|
|
||||||
Total
|
$
|
13,001.5
|
|
|
$
|
2,566.7
|
|
|
$
|
3,580.7
|
|
|
$
|
1,825.0
|
|
|
$
|
2,437.7
|
|
|
$
|
2,591.4
|
|
(1)
|
The reserves for losses and LAE represent management’s estimate of the ultimate cost of settling losses. The estimation of losses is based on various complex and subjective judgments. Actual losses paid may differ, perhaps significantly, from the reserve estimates reflected in our financial statements. Similarly, the timing of payment of our estimated losses is not fixed and there may be significant changes in actual payment activity. The assumptions used in estimating the likely payments due by period are based on our historical claims payment experience and industry payment patterns, but due to the inherent uncertainty in the process of estimating the timing of such payments, there is a risk that the amounts paid in any such period can be significantly different from the amounts disclosed above. The amounts in the above table represent our estimates of known liabilities as of December 31, 2019 and do not take into account corresponding reinsurance recoverable amounts that would be due to us. Furthermore, certain of the reserves included in the audited consolidated financial statements as of December 31, 2019 were acquired by us and initially recorded at fair value with subsequent amortization, whereas the expected payments by period in the table above are the estimated payments at a future time and do not reflect the fair value adjustment in the amount payable.
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Asbestos
|
$
|
542,681
|
|
|
$
|
1,373,678
|
|
|
$
|
1,916,359
|
|
|
$
|
490,117
|
|
|
$
|
1,271,982
|
|
|
$
|
1,762,099
|
|
Environmental
|
187,165
|
|
|
156,121
|
|
|
343,286
|
|
|
173,878
|
|
|
142,351
|
|
|
316,229
|
|
||||||
General casualty
|
501,863
|
|
|
489,129
|
|
|
990,992
|
|
|
399,396
|
|
|
421,426
|
|
|
820,822
|
|
||||||
Workers' compensation/personal accident
|
1,270,530
|
|
|
977,808
|
|
|
2,248,338
|
|
|
963,578
|
|
|
751,074
|
|
|
1,714,652
|
|
||||||
Marine, aviation and transit
|
290,067
|
|
|
121,577
|
|
|
411,644
|
|
|
244,611
|
|
|
100,135
|
|
|
344,746
|
|
||||||
Construction defect
|
29,772
|
|
|
98,312
|
|
|
128,084
|
|
|
29,245
|
|
|
94,888
|
|
|
124,133
|
|
||||||
Professional indemnity/Directors & Officers
|
693,760
|
|
|
265,490
|
|
|
959,250
|
|
|
485,478
|
|
|
170,926
|
|
|
656,404
|
|
||||||
Motor
|
480,668
|
|
|
233,806
|
|
|
714,474
|
|
|
317,829
|
|
|
165,543
|
|
|
483,372
|
|
||||||
Property
|
140,620
|
|
|
63,604
|
|
|
204,224
|
|
|
122,010
|
|
|
56,450
|
|
|
178,460
|
|
||||||
Other
|
269,956
|
|
|
165,882
|
|
|
435,838
|
|
|
208,647
|
|
|
97,573
|
|
|
306,220
|
|
||||||
|
$
|
4,407,082
|
|
|
$
|
3,945,407
|
|
|
$
|
8,352,489
|
|
|
$
|
3,434,789
|
|
|
$
|
3,272,348
|
|
|
$
|
6,707,137
|
|
Fair value adjustments
|
|
|
|
|
(170,689
|
)
|
|
|
|
|
|
(157,036
|
)
|
||||||||||
Fair value adjustments - fair value option
|
|
|
|
|
(217,933
|
)
|
|
|
|
|
|
(129,848
|
)
|
||||||||||
Deferred charge assets on retroactive reinsurance
|
|
|
|
|
—
|
|
|
|
|
|
|
(272,462
|
)
|
||||||||||
ULAE
|
|
|
|
|
331,494
|
|
|
|
|
|
|
331,494
|
|
||||||||||
Total
|
|
|
|
|
$
|
8,295,361
|
|
|
|
|
|
|
$
|
6,479,285
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Asbestos
|
$
|
341,544
|
|
|
$
|
1,275,476
|
|
|
$
|
1,617,020
|
|
|
$
|
321,356
|
|
|
$
|
1,171,754
|
|
|
$
|
1,493,110
|
|
Environmental
|
96,665
|
|
|
126,035
|
|
|
222,700
|
|
|
93,095
|
|
|
117,384
|
|
|
210,479
|
|
||||||
General casualty
|
500,033
|
|
|
379,484
|
|
|
879,517
|
|
|
416,097
|
|
|
298,612
|
|
|
714,709
|
|
||||||
Workers' compensation/personal accident
|
1,454,178
|
|
|
832,615
|
|
|
2,286,793
|
|
|
1,115,116
|
|
|
537,782
|
|
|
1,652,898
|
|
||||||
Marine, aviation and transit
|
301,783
|
|
|
72,888
|
|
|
374,671
|
|
|
227,994
|
|
|
78,023
|
|
|
306,017
|
|
||||||
Construction defect
|
20,712
|
|
|
99,288
|
|
|
120,000
|
|
|
19,310
|
|
|
94,736
|
|
|
114,046
|
|
||||||
Professional indemnity/Directors & Officers
|
603,665
|
|
|
216,839
|
|
|
820,504
|
|
|
426,020
|
|
|
166,898
|
|
|
592,918
|
|
||||||
Motor
|
564,307
|
|
|
321,992
|
|
|
886,299
|
|
|
414,847
|
|
|
304,874
|
|
|
719,721
|
|
||||||
Property
|
168,267
|
|
|
37,631
|
|
|
205,898
|
|
|
160,873
|
|
|
36,817
|
|
|
197,690
|
|
||||||
Other
|
220,615
|
|
|
165,519
|
|
|
386,134
|
|
|
175,289
|
|
|
111,453
|
|
|
286,742
|
|
||||||
|
$
|
4,271,769
|
|
|
$
|
3,527,767
|
|
|
$
|
7,799,536
|
|
|
$
|
3,369,997
|
|
|
$
|
2,918,333
|
|
|
$
|
6,288,330
|
|
Fair value adjustments
|
|
|
|
|
(217,527
|
)
|
|
|
|
|
|
(203,183
|
)
|
||||||||||
Fair value adjustments - fair value option
|
|
|
|
|
(374,752
|
)
|
|
|
|
|
|
(244,013
|
)
|
||||||||||
Deferred charge assets on retroactive reinsurance
|
|
|
|
|
—
|
|
|
|
|
|
|
(86,585
|
)
|
||||||||||
ULAE
|
|
|
|
|
333,405
|
|
|
|
|
|
|
333,405
|
|
||||||||||
Total
|
|
|
|
|
$
|
7,540,662
|
|
|
|
|
|
|
$
|
6,087,954
|
|
•
|
To the extent that the nature of the acquired loss reserves are conducive to commutation, our aim is to settle the majority of the acquired loss reserves within a time frame of approximately five to seven years from the date of acquisition.
|
•
|
To the extent that acquired reserves are not conducive to commutation, we will instead adopt a disciplined claims management approach to pay only valid claims on a timely basis and endeavor to reduce the level of acquired LAE provisions by streamlining claims handling procedures.
|
•
|
previous commutations completed by existing portfolio companies with policyholders of the newly-acquired company;
|
•
|
nature of liabilities;
|
•
|
size of incurred loss reserves;
|
•
|
recent loss development history; and
|
•
|
targets for claims audits.
|
•
|
Large loss advices and cash calls are provided to us as soon as practicable after an individual loss or claim is made or settled by the insured.
|
•
|
The remaining broker advices are issued monthly, quarterly or annually depending on the provisions of the individual policies or the ceding company’s practice.
|
•
|
For certain direct insurance policies where the claims are managed by Third Party Administrators (TPAs) and Managing General Agents (MGAs), loss bordereaux are received either monthly or quarterly depending on the arrangement with the TPA and MGA. Loss advices for direct insurance policies may be received from the broker, agent or directly from the insured.
|
•
|
We closely monitor cedant loss reporting and, for those cedants identified as providing inadequate, untimely or unusual reporting of losses, we conduct, in accordance with the provisions of the insurance and reinsurance contracts, detailed claims audits at the insured’s or reinsured’s premises. Such claims audits have the benefit of validating advised claims, determining whether the cedant’s loss reserving practices and reporting are adequate and identifying potential loss reserving issues of which our actuaries need to be made aware. Any required adjustments to advised claims reserves reported by cedants identified during the claims audits will be recorded as an adjustment to the advised case reserve.
|
•
|
Onsite claims audits are often supplemented by further reviews by our internal and external legal advisors to determine the reasonableness of advised case reserves and, if considered necessary, an adjustment to the reported case reserve will be recorded.
|
•
|
Our actuaries project expected paid and incurred loss development for each class of business, which is monitored on a quarterly basis. Should actual paid and incurred development differ significantly from the expected paid and incurred development, we will investigate the cause and, in conjunction with our actuaries, consider whether any adjustment to total loss reserves is required.
|
•
|
Our actuaries consider the quality of ceding company data as part of their ongoing evaluation of the liability for ultimate losses and LAE, and the methodologies they select for estimating ultimate losses inherently compensate for potential weaknesses in this data, including weaknesses in loss reports provided by cedants.
|
•
|
Gross, ceded and net incurred loss report - This report provides, for each reporting period, the total (including commuted policies) gross, ceded and net incurred loss development for each company and a commentary on each company’s loss development. The report highlights the causes of any unusual or significant loss development activity (including commutations).
|
•
|
Actual versus expected gross incurred loss development schedule - This schedule provides a summary, and commentary thereon, of each company’s (excluding companies or portfolios of business acquired in the current year) non-commuted incurred gross losses compared to the estimate of the development of non-commuted incurred gross losses provided by our actuaries at the beginning of the year as part of the prior year’s reserving process.
|
•
|
Commutations summary schedule - This schedule summarizes all commutations completed during the year for all companies, and identifies the policyholder with which we commuted, the incurred losses settled by the commutation (comprising outstanding unpaid losses and case reserves) and the amount of the commutation settlement.
|
•
|
Analysis of paid, incurred and ultimate losses - This analysis for each company, and in the aggregate, provides a summary of the gross, ceded and net paid and incurred losses and the impact of applying our actuaries’ recommended loss reserves. This report, reviewed in conjunction with the previous reports, provides an analytical tool to review each company’s incurred loss or gain and reduction in IBNR reserves to assess whether the ultimate reduction in loss reserves appears reasonable in light of known developments within each company.
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Low
|
|
Selected
|
|
High
|
|
Low
|
|
Selected
|
|
High
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Asbestos
|
$
|
1,639,077
|
|
|
$
|
1,916,359
|
|
|
$
|
2,447,051
|
|
|
$
|
1,384,890
|
|
|
$
|
1,617,020
|
|
|
$
|
1,931,409
|
|
Environmental
|
296,253
|
|
|
343,286
|
|
|
413,991
|
|
|
184,749
|
|
|
222,700
|
|
|
267,159
|
|
||||||
General casualty
|
875,288
|
|
|
990,992
|
|
|
1,116,946
|
|
|
803,851
|
|
|
879,517
|
|
|
976,457
|
|
||||||
Workers' compensation/personal accident
|
1,983,940
|
|
|
2,248,338
|
|
|
2,555,782
|
|
|
2,063,005
|
|
|
2,286,793
|
|
|
2,577,116
|
|
||||||
Marine, aviation and transit
|
368,090
|
|
|
411,644
|
|
|
480,875
|
|
|
338,318
|
|
|
374,671
|
|
|
419,911
|
|
||||||
Construction defect
|
112,549
|
|
|
128,084
|
|
|
145,253
|
|
|
107,126
|
|
|
120,000
|
|
|
139,129
|
|
||||||
Professional indemnity/Directors & Officers
|
876,445
|
|
|
959,250
|
|
|
1,062,111
|
|
|
758,021
|
|
|
820,504
|
|
|
910,718
|
|
||||||
Motor
|
633,338
|
|
|
714,474
|
|
|
800,217
|
|
|
806,731
|
|
|
886,299
|
|
|
951,734
|
|
||||||
Property
|
184,028
|
|
|
204,224
|
|
|
226,688
|
|
|
192,869
|
|
|
205,898
|
|
|
225,013
|
|
||||||
Other
|
380,793
|
|
|
435,838
|
|
|
520,909
|
|
|
346,674
|
|
|
386,134
|
|
|
428,904
|
|
||||||
|
7,349,801
|
|
|
8,352,489
|
|
|
9,769,823
|
|
|
6,986,234
|
|
|
7,799,536
|
|
|
8,827,550
|
|
||||||
Fair value adjustments
|
(147,158
|
)
|
|
(170,689
|
)
|
|
(194,310
|
)
|
|
(198,969
|
)
|
|
(217,527
|
)
|
|
(239,227
|
)
|
||||||
Fair value adjustments - fair value option
|
(190,549
|
)
|
|
(217,933
|
)
|
|
(265,609
|
)
|
|
(329,874
|
)
|
|
(374,752
|
)
|
|
(420,609
|
)
|
||||||
ULAE
|
291,696
|
|
|
331,494
|
|
|
385,762
|
|
|
296,704
|
|
|
333,405
|
|
|
373,360
|
|
||||||
Total
|
$
|
7,303,790
|
|
|
$
|
8,295,361
|
|
|
$
|
9,695,666
|
|
|
$
|
6,754,095
|
|
|
$
|
7,540,662
|
|
|
$
|
8,541,074
|
|
•
|
For example, if it were found that large settlements were consistently leading to large negative, or favorable, incurred losses upon settlement, it might be an indication that reserves on remaining exposures are redundant.
|
•
|
Conversely, if it were found that large settlements were consistently leading to large positive, or adverse, incurred losses upon settlement, it might be an indication—particularly if the size of the losses were increasing—that certain loss reserves on remaining exposures are deficient.
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Balance as at January 1
|
$
|
1,617,020
|
|
|
$
|
1,801,044
|
|
Less: reinsurance reserves recoverable
|
123,910
|
|
|
122,222
|
|
||
Net balance as at January 1
|
1,493,110
|
|
|
1,678,822
|
|
||
Total net incurred losses and LAE
|
6,811
|
|
|
(64,949
|
)
|
||
Total net paid losses
|
(118,557
|
)
|
|
(108,248
|
)
|
||
Effect of exchange rate movement
|
37,249
|
|
|
(70,084
|
)
|
||
Acquired on purchase of subsidiaries
|
—
|
|
|
7,569
|
|
||
Assumed business
|
382,474
|
|
|
50,000
|
|
||
Ceded business
|
(38,988
|
)
|
|
—
|
|
||
Net balance as at December 31
|
1,762,099
|
|
|
1,493,110
|
|
||
Plus: reinsurance reserves recoverable
|
154,260
|
|
|
123,910
|
|
||
Balance as at December 31
|
$
|
1,916,359
|
|
|
$
|
1,617,020
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Balance as at January 1
|
$
|
222,700
|
|
|
$
|
191,060
|
|
Less: reinsurance reserves recoverable
|
12,221
|
|
|
6,666
|
|
||
Net balance as at January 1
|
210,479
|
|
|
184,394
|
|
||
Total net incurred losses and LAE
|
14,988
|
|
|
14,153
|
|
||
Total net paid losses
|
(16,899
|
)
|
|
(21,273
|
)
|
||
Effect of exchange rate movement
|
(3,615
|
)
|
|
(320
|
)
|
||
Acquired on purchase of subsidiaries
|
—
|
|
|
13,525
|
|
||
Assumed business
|
124,009
|
|
|
20,000
|
|
||
Ceded business
|
(12,733
|
)
|
|
—
|
|
||
Net balance as at December 31
|
316,229
|
|
|
210,479
|
|
||
Plus: reinsurance reserves recoverable
|
27,057
|
|
|
12,221
|
|
||
Balance as at December 31
|
$
|
343,286
|
|
|
$
|
222,700
|
|
•
|
the mix of product types (e.g., primary insurance, excess insurance, reinsurance of primary, excess of loss reinsurance, retrocession)
|
•
|
the average attachment point and limit of coverages (e.g., first-dollar primary versus umbrella over primary versus high-excess)
|
•
|
payment and reporting lags related to the international domicile of our subsidiaries as well as the difference in lags between primary, excess and reinsurance policies
|
•
|
payment and reporting pattern acceleration due to large "wholesale" settlements (e.g., policy buy-backs and commutations) pursued by us, and
|
•
|
lists of individual risks remaining and general trends within the legal and tort environments.
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Marine, Aviation and Transit
|
$
|
24,668
|
|
|
$
|
34,156
|
|
|
$
|
58,824
|
|
|
$
|
21,012
|
|
|
$
|
24,829
|
|
|
$
|
45,841
|
|
Binding Authorities
|
31,507
|
|
|
54,039
|
|
|
85,546
|
|
|
29,590
|
|
|
51,984
|
|
|
81,574
|
|
||||||
Reinsurance
|
18,385
|
|
|
29,533
|
|
|
47,918
|
|
|
16,209
|
|
|
23,338
|
|
|
39,547
|
|
||||||
Accident and Health
|
5,460
|
|
|
7,880
|
|
|
13,340
|
|
|
4,735
|
|
|
7,469
|
|
|
12,204
|
|
||||||
Non-Marine Direct and Facultative
|
9,121
|
|
|
10,935
|
|
|
20,056
|
|
|
8,584
|
|
|
9,637
|
|
|
18,221
|
|
||||||
Total
|
$
|
89,141
|
|
|
$
|
136,543
|
|
|
$
|
225,684
|
|
|
$
|
80,130
|
|
|
$
|
117,257
|
|
|
$
|
197,387
|
|
Fair value adjustments
|
|
|
|
|
3,700
|
|
|
|
|
|
|
3,181
|
|
||||||||||
ULAE
|
|
|
|
|
2,288
|
|
|
|
|
|
|
2,288
|
|
||||||||||
Total
|
|
|
|
|
$
|
231,672
|
|
|
|
|
|
|
$
|
202,856
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Marine, Aviation and Transit
|
$
|
32,999
|
|
|
$
|
36,011
|
|
|
$
|
69,010
|
|
|
$
|
21,460
|
|
|
$
|
24,207
|
|
|
$
|
45,667
|
|
Binding Authorities
|
28,512
|
|
|
59,302
|
|
|
87,814
|
|
|
26,601
|
|
|
57,016
|
|
|
83,617
|
|
||||||
Reinsurance
|
18,547
|
|
|
27,653
|
|
|
46,200
|
|
|
15,180
|
|
|
24,823
|
|
|
40,003
|
|
||||||
Accident and Health
|
4,972
|
|
|
6,348
|
|
|
11,320
|
|
|
4,225
|
|
|
5,837
|
|
|
10,062
|
|
||||||
Non-Marine Direct and Facultative
|
9,855
|
|
|
11,207
|
|
|
21,062
|
|
|
8,529
|
|
|
9,389
|
|
|
17,918
|
|
||||||
Total
|
$
|
94,885
|
|
|
$
|
140,521
|
|
|
$
|
235,406
|
|
|
$
|
75,995
|
|
|
$
|
121,272
|
|
|
$
|
197,267
|
|
Fair value adjustments
|
|
|
|
|
3,476
|
|
|
|
|
|
|
2,847
|
|
||||||||||
ULAE
|
|
|
|
|
2,402
|
|
|
|
|
|
|
2,402
|
|
||||||||||
Total
|
|
|
|
|
$
|
241,284
|
|
|
|
|
|
|
$
|
202,516
|
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Casualty
|
$
|
191,317
|
|
|
$
|
481,473
|
|
|
$
|
672,790
|
|
|
$
|
156,086
|
|
|
$
|
422,186
|
|
|
$
|
578,272
|
|
Marine
|
195,068
|
|
|
173,319
|
|
|
368,387
|
|
|
162,073
|
|
|
138,586
|
|
|
300,659
|
|
||||||
Property
|
367,258
|
|
|
152,514
|
|
|
519,772
|
|
|
158,156
|
|
|
92,655
|
|
|
250,811
|
|
||||||
Aerospace
|
79,249
|
|
|
33,000
|
|
|
112,249
|
|
|
47,796
|
|
|
22,862
|
|
|
70,658
|
|
||||||
Workers' Compensation
|
55,902
|
|
|
122,047
|
|
|
177,949
|
|
|
36,673
|
|
|
74,661
|
|
|
111,334
|
|
||||||
Total
|
$
|
888,794
|
|
|
$
|
962,353
|
|
|
$
|
1,851,147
|
|
|
$
|
560,784
|
|
|
$
|
750,950
|
|
|
$
|
1,311,734
|
|
Fair value adjustments
|
|
|
|
|
(522
|
)
|
|
|
|
|
|
1,600
|
|
||||||||||
ULAE
|
|
|
|
|
28,503
|
|
|
|
|
|
|
28,503
|
|
||||||||||
Total
|
|
|
|
|
$
|
1,879,128
|
|
|
|
|
|
|
$
|
1,341,837
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Casualty
|
$
|
177,432
|
|
|
$
|
331,432
|
|
|
$
|
508,864
|
|
|
$
|
137,828
|
|
|
$
|
282,026
|
|
|
$
|
419,854
|
|
Marine
|
185,084
|
|
|
182,453
|
|
|
367,537
|
|
|
163,889
|
|
|
133,426
|
|
|
297,315
|
|
||||||
Property
|
317,102
|
|
|
123,511
|
|
|
440,613
|
|
|
151,774
|
|
|
65,522
|
|
|
217,296
|
|
||||||
Aerospace
|
67,203
|
|
|
40,416
|
|
|
107,619
|
|
|
45,879
|
|
|
36,167
|
|
|
82,046
|
|
||||||
Workers' Compensation
|
49,373
|
|
|
110,082
|
|
|
159,455
|
|
|
33,759
|
|
|
68,969
|
|
|
102,728
|
|
||||||
Total
|
$
|
796,194
|
|
|
$
|
787,894
|
|
|
$
|
1,584,088
|
|
|
$
|
533,129
|
|
|
$
|
586,110
|
|
|
$
|
1,119,239
|
|
Fair value adjustments
|
|
|
|
|
(467
|
)
|
|
|
|
|
|
1,432
|
|
||||||||||
ULAE
|
|
|
|
|
25,076
|
|
|
|
|
|
|
25,076
|
|
||||||||||
Total
|
|
|
|
|
$
|
1,608,697
|
|
|
|
|
|
|
$
|
1,145,747
|
|
|
2019
|
|
2018
|
||||
Defendant asbestos and environmental liabilities:
|
|
|
|
||||
Defendant asbestos liabilities
|
$
|
1,100,593
|
|
|
$
|
265,975
|
|
Defendant environmental liabilities
|
10,279
|
|
|
2,152
|
|
||
Estimated future expenses
|
51,637
|
|
|
19,843
|
|
||
Fair value adjustments
|
(314,824
|
)
|
|
(84,650
|
)
|
||
Defendant asbestos and environmental liabilities
|
847,685
|
|
|
203,320
|
|
||
Other assets:
|
|
|
|
||||
Insurance recoveries related to defendant asbestos and environmental liabilities
|
549,593
|
|
|
183,676
|
|
||
Fair value adjustments
|
(100,738
|
)
|
|
(47,868
|
)
|
||
Insurance balances recoverable
|
448,855
|
|
|
135,808
|
|
||
|
|
|
|
||||
Net liabilities relating to defendant asbestos and environmental exposures
|
$
|
398,830
|
|
|
$
|
67,512
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Reinsurance balances recoverable on paid and unpaid losses
|
$
|
1,684,372
|
|
|
$
|
1,290,072
|
|
Reinsurance balances recoverable on paid and unpaid losses, fair value
|
695,518
|
|
|
739,591
|
|
||
Total reinsurance balances recoverable on paid and unpaid losses
|
$
|
2,379,890
|
|
|
$
|
2,029,663
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Intangible assets with a definite life
|
$
|
14,630
|
|
|
$
|
16,887
|
|
Intangible assets with an indefinite life
|
87,031
|
|
|
87,031
|
|
||
Total intangible assets
|
$
|
101,661
|
|
|
$
|
103,918
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Deferred charge asset
|
$
|
272,462
|
|
|
$
|
86,585
|
|
•
|
Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments.
|
•
|
Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data
|
•
|
Level 3 - Valuations based on unobservable inputs where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values.
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Short-term investments, trading, at fair value
|
$
|
51,490
|
|
|
$
|
114,116
|
|
Short-term investments, available-for-sale, at fair value
|
128,335
|
|
|
—
|
|
||
Fixed maturities, trading, at fair value
|
6,346,329
|
|
|
7,248,793
|
|
||
Fixed maturities, available-for-sale, at fair value
|
1,913,389
|
|
|
151,609
|
|
||
Fixed maturity investments within funds held - directly managed
|
1,173,345
|
|
|
1,183,374
|
|
||
Total fixed maturity investments
|
$
|
9,612,888
|
|
|
$
|
8,697,892
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Publicly traded equity investments in common and preferred stocks
|
$
|
327,875
|
|
|
$
|
138,415
|
|
Exchange-traded funds
|
133,047
|
|
|
—
|
|
||
Privately held equity investments in common and preferred stocks
|
268,799
|
|
|
228,710
|
|
||
Total equity investments
|
$
|
729,721
|
|
|
$
|
367,125
|
|
|
|
2019
|
|
2018
|
||||
Hedge funds
|
|
$
|
1,121,904
|
|
|
$
|
852,584
|
|
Fixed income funds
|
|
481,039
|
|
|
403,858
|
|
||
Equity funds
|
|
410,149
|
|
|
333,681
|
|
||
Private equity funds
|
|
329,885
|
|
|
248,628
|
|
||
CLO equities
|
|
87,555
|
|
|
39,052
|
|
||
CLO equity funds
|
|
87,509
|
|
|
37,260
|
|
||
Other
|
|
6,379
|
|
|
9,313
|
|
||
Private credit funds
|
|
—
|
|
|
33,381
|
|
||
Total other investments
|
|
$
|
2,524,420
|
|
|
$
|
1,957,757
|
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Gross Losses and loss adjustment expenses, fair value
|
$
|
2,621,122
|
|
|
$
|
2,874,055
|
|
|
|
|
|
||||
Reinsurance balances recoverable on paid and unpaid losses, fair value
|
$
|
695,518
|
|
|
$
|
739,591
|
|
|
|
|
|
||||
Net losses and LAE, fair value
|
$
|
1,925,604
|
|
|
$
|
2,134,464
|
|
•
|
The discounted cash flow approach uses (i) estimated nominal cash flows based upon an appropriate payment pattern developed in accordance with standard actuarial techniques and (ii) a discount rate based upon a high quality rated corporate bond plus a credit spread for non-performance risk. The model uses corporate bond rates across the yield curve depending on the estimated timing of the future cash flows and specific to the currency of the risk.
|
•
|
The risk margin was calculated using the present value of the cost of capital. The cost of capital approach uses (i) projected capital requirements, (ii) multiplied by the risk cost of capital representing the return required for non-hedgeable risk based upon the weighted average cost of capital less investment income, and (iii) discounted using the weighted average cost of capital.
|
•
|
An increase in the corporate bond rate or credit spread for non-performance risk would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the corporate bond rate or credit spread for non-performance risk would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
An increase in the weighted average cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the weighted average cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
An increase in the risk cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the risk cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
An acceleration of the estimated payment pattern would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a deceleration of the estimated payment pattern would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
|
2019
|
|
2018
|
||||
|
(in thousands of U.S. dollars)
|
||||||
Redeemable noncontrolling interest
|
$
|
438,791
|
|
|
$
|
458,543
|
|
|
|
Interest Rate Shift in Basis Points
|
||||||||||||||||||
As of December 31, 2019
|
|
-100
|
|
-50
|
|
—
|
|
+50
|
|
+100
|
||||||||||
|
|
(in millions of U.S. dollars)
|
||||||||||||||||||
Total Market Value
|
|
$
|
10,757
|
|
|
$
|
10,490
|
|
|
$
|
10,227
|
|
|
$
|
9,976
|
|
|
$
|
9,736
|
|
Market Value Change from Base
|
|
5.2
|
%
|
|
2.6
|
%
|
|
—
|
|
|
(2.5
|
)%
|
|
(4.8
|
)%
|
|||||
Change in Unrealized Value
|
|
$
|
530
|
|
|
$
|
263
|
|
|
$
|
—
|
|
|
$
|
(251
|
)
|
|
$
|
(491
|
)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
As of December 31, 2018
|
|
-100
|
|
-50
|
|
—
|
|
+50
|
|
+100
|
||||||||||
Total Market Value
|
|
$
|
9,555
|
|
|
$
|
9,325
|
|
|
$
|
9,101
|
|
|
$
|
8,885
|
|
|
$
|
8,677
|
|
Market Value Change from Base
|
|
5.0
|
%
|
|
2.5
|
%
|
|
—
|
|
|
(2.4
|
)%
|
|
(4.7
|
)%
|
|||||
Change in Unrealized Value
|
|
$
|
454
|
|
|
$
|
224
|
|
|
$
|
—
|
|
|
$
|
(216
|
)
|
|
$
|
(424
|
)
|
|
|
Credit Spread Shift in Basis Points
|
||||||||||
As of December 31, 2019
|
|
—
|
|
+50
|
|
+100
|
||||||
|
|
(in millions of U.S. dollars)
|
||||||||||
Total Market Value
|
|
$
|
10,227
|
|
|
$
|
9,999
|
|
|
$
|
9,777
|
|
Market Value Change from Base
|
|
|
|
(2.2
|
)%
|
|
(4.4
|
)%
|
||||
Change in Unrealized Value
|
|
|
|
$
|
(228
|
)
|
|
$
|
(450
|
)
|
||
|
|
|
|
|
|
|
||||||
As of December 31, 2018
|
|
—
|
|
+50
|
|
+100
|
||||||
Total Market Value
|
|
$
|
9,101
|
|
|
$
|
8,896
|
|
|
$
|
8,699
|
|
Market Value Change from Base
|
|
|
|
(2.3
|
)%
|
|
(4.4
|
)%
|
||||
Change in Unrealized Value
|
|
|
|
$
|
(205
|
)
|
|
$
|
(402
|
)
|
Credit rating
|
2019
|
|
2018
|
|
Change
|
|||
AAA
|
27.1
|
%
|
|
28.2
|
%
|
|
(1.1
|
)%
|
AA
|
12.9
|
%
|
|
14.4
|
%
|
|
(1.5
|
)%
|
A
|
34.3
|
%
|
|
30.2
|
%
|
|
4.1
|
%
|
BBB
|
21.4
|
%
|
|
23.4
|
%
|
|
(2.0
|
)%
|
Non-investment grade
|
4.1
|
%
|
|
3.6
|
%
|
|
0.5
|
%
|
Not rated
|
0.2
|
%
|
|
0.2
|
%
|
|
—
|
%
|
Total
|
100.0
|
%
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|||
Average credit rating
|
A+
|
|
|
A+
|
|
|
|
|
2019
|
|
2018
|
|
Change
|
||||||
|
(in millions of U.S. dollars)
|
||||||||||
Publicly traded equity investments in common and preferred stocks
|
$
|
327.9
|
|
|
$
|
138.4
|
|
|
$
|
189.5
|
|
Privately held equity investments in common and preferred stocks
|
268.8
|
|
|
228.7
|
|
|
40.1
|
|
|||
Private equity funds
|
329.9
|
|
|
248.6
|
|
|
81.3
|
|
|||
Equity funds
|
410.1
|
|
|
333.7
|
|
|
76.4
|
|
|||
Call options on equity
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|||
Fair value of equities at risk
|
$
|
1,336.8
|
|
|
$
|
949.4
|
|
|
$
|
387.4
|
|
|
|
|
|
|
|
||||||
Impact of 10% decline in fair value
|
$
|
133.7
|
|
|
$
|
94.9
|
|
|
$
|
38.8
|
|
|
|
AUD
|
|
CAD
|
|
EUR
|
|
GBP
|
|
Other
|
|
Total
|
||||||||||||
|
|
(in millions of U.S. dollars)
|
||||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total net foreign currency exposure
|
|
$
|
20.2
|
|
|
$
|
(10.6
|
)
|
|
$
|
12.9
|
|
|
$
|
(11.9
|
)
|
|
$
|
0.6
|
|
|
$
|
11.2
|
|
Pre-tax impact of a 10% movement in USD(1)
|
|
$
|
2.0
|
|
|
$
|
(1.1
|
)
|
|
$
|
1.3
|
|
|
$
|
(1.2
|
)
|
|
$
|
0.1
|
|
|
$
|
1.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
2018
|
|
|
||||||||||||||||||||||
Total net foreign currency exposure
|
|
$
|
17.5
|
|
|
$
|
20.2
|
|
|
$
|
17.2
|
|
|
$
|
(35.8
|
)
|
|
$
|
1.7
|
|
|
$
|
20.7
|
|
Pre-tax impact of a 10% movement in USD(1)
|
|
$
|
1.8
|
|
|
$
|
2.0
|
|
|
$
|
1.7
|
|
|
$
|
(3.6
|
)
|
|
$
|
0.2
|
|
|
$
|
2.1
|
|
(1)
|
Assumes 10% change in U.S. dollar relative to other currencies.
|
•
|
Transaction Risk: The functional currency for the majority of our subsidiaries is the U.S. dollar. Within these entities, any fluctuations in foreign currency exchange rates relative to the U.S. dollar has a direct impact on the valuation of our assets and liabilities denominated in other currencies. All changes in foreign exchange rates, with the exception of non-U.S. dollar available-for-sale investments, are recognized in our consolidated statements of earnings. Changes in foreign exchange rates relating to non-U.S. dollar available-for-sale investments are recorded accumulated other comprehensive income (loss) in shareholders’ equity. Our subsidiaries with non-U.S. dollar functional currencies are also exposed to fluctuations in foreign currency exchange rates relative to their own functional currency.
|
•
|
Translation Risk: Our net investments in certain European, British, and Australian subsidiaries whose functional currencies are the Euro, British pound and Australian dollar, respectively. The foreign exchange gain or loss resulting from the translation of their financial statements from functional currency into U.S. dollars is recorded in the cumulative translation adjustment account, which is a component of accumulated other comprehensive income (loss) in shareholders’ equity.
|
•
|
Seeking to match our liabilities under insurance and reinsurance policies that are payable in foreign currencies with assets that are denominated in such currencies, subject to regulatory constraints.
|
•
|
Selectively utilizing foreign currency forward contracts to mitigate foreign currency risk.
|
•
|
We may borrow to hedge the foreign currency exposure on our net investment in certain of our subsidiaries whose functional currency is denominated in non-U.S. dollars. This is referred to as a non-derivative hedge.
|
CONSOLIDATED FINANCIAL STATEMENTS
|
Page
|
|
|
SCHEDULES
|
|
•
|
Comparing the methodologies and assumptions used by the Company in estimating loss reserves and asbestos and environmental liabilities with generally accepted actuarial methodologies;
|
•
|
Evaluating loss development factors, expected loss ratios, and expected trends in claim frequency and severity, by comparing them to historical results and industry trends used in the estimation process of loss reserves;
|
•
|
Evaluating expected trends in claim frequency and severity, by comparing them to historical results and industry trends used in the estimation process of asbestos and environmental liabilities;
|
•
|
Developing an independent actuarial estimate of loss reserves and asbestos and environmental liabilities for selected lines of business;
|
•
|
Examining the Company’s internal or independent external actuarial analyses for the remaining lines of business by 1) analyzing claims development in the current year; and 2) evaluating changes in methodologies and assumptions from the prior year;
|
•
|
Evaluating the Company’s overall recorded loss reserves by assessing the movement of the recorded loss reserves within the Company’s range of actuarially determined reserves; and
|
•
|
Evaluating the Company’s overall recorded asbestos and environmental liabilities by assessing the movement of the recorded asbestos and environmental liabilities within the Company’s range of actuarially determined reserves.
|
•
|
Comparing the methodologies and assumptions used by the Company in estimating the nominal loss reserves with generally accepted actuarial methodologies;
|
•
|
Evaluating loss development factors and expected trends in claim frequency and severity, by comparing them to historical results and industry trends;
|
•
|
Developing an independent actuarial estimate of the nominal loss reserves for selected lines of business;
|
•
|
Examining the Company’s internal and independent external actuarial analyses for the remaining lines of business by 1) analyzing claims development in the current year; and 2) evaluating changes in methodologies and assumptions from the prior year;
|
•
|
Evaluating the Company’s overall nominal loss reserves and assessing the movement of the nominal loss reserves within the Company’s range of actuarially determined reserves; and
|
•
|
Evaluating the projected payout, including timing, and amount of the nominal cash flows used to develop the fair value, by comparing the assumptions used with the assumptions applied in developing the nominal loss reserves.
|
•
|
Comparing the methodologies and assumptions used by the Company in estimating the nominal asbestos liabilities with generally accepted actuarial methodologies;
|
•
|
Evaluating expected trends in claim frequency and severity, by comparing them to historical results and industry trends;
|
•
|
Developing an independent actuarial estimate of nominal asbestos liabilities for selected lines of - business;
|
•
|
Examining the Company’s internal actuarial analysis for the remaining lines of business by analyzing claims development in the current year;
|
•
|
Developing independent actuarial estimates of the projected payout, including timing, and amount of asbestos liabilities; and
|
•
|
Evaluating the methodologies and assumptions used by the Company in determining the risk margin used in the estimation of the fair value of the acquired asbestos liabilities.
|
•
|
Evaluating the discount rate used in the estimation of the fair value of the asbestos liabilities by assessing the inputs into the discount rate.
|
/s/ KPMG Audit Limited
|
KPMG Audit Limited
|
|
2019
|
|
2018
|
||||
|
(expressed in thousands of U.S. dollars, except share data)
|
||||||
ASSETS
|
|
|
|
||||
Short-term investments, trading, at fair value
|
$
|
51,490
|
|
|
$
|
114,116
|
|
Short-term investments, available-for-sale, at fair value (amortized cost: 2019 — $128,311; 2018 — $nil)
|
128,335
|
|
|
—
|
|
||
Fixed maturities, trading, at fair value
|
6,346,329
|
|
|
7,248,793
|
|
||
Fixed maturities, available-for-sale, at fair value (amortized cost: 2019 — $1,914,143; 2018 — $151,433)
|
1,913,389
|
|
|
151,609
|
|
||
Funds held - directly managed
|
1,187,552
|
|
|
1,198,154
|
|
||
Equities, at fair value
|
729,721
|
|
|
367,125
|
|
||
Other investments, at fair value
|
2,524,420
|
|
|
1,957,757
|
|
||
Equity method investments
|
326,277
|
|
|
204,507
|
|
||
13,207,513
|
|
|
11,242,061
|
|
|||
Cash and cash equivalents
|
703,085
|
|
|
602,096
|
|
||
Restricted cash and cash equivalents
|
352,692
|
|
|
380,488
|
|
||
Premiums receivable
|
576,980
|
|
|
787,468
|
|
||
170,984
|
|
|
10,124
|
|
|||
1,684,372
|
|
|
1,290,072
|
|
|||
695,518
|
|
|
739,591
|
|
|||
448,855
|
|
|
135,808
|
|
|||
Funds held by reinsured companies
|
408,735
|
|
|
321,267
|
|
||
Deferred acquisition costs
|
153,505
|
|
|
121,101
|
|
||
216,468
|
|
|
218,725
|
|
|||
Other assets
|
744,608
|
|
|
707,469
|
|
||
TOTAL ASSETS
|
$
|
19,363,315
|
|
|
$
|
16,556,270
|
|
|
|
|
|
||||
LIABILITIES
|
|
|
|
||||
$
|
7,808,116
|
|
|
$
|
6,535,449
|
|
|
2,621,122
|
|
|
2,874,055
|
|
|||
847,685
|
|
|
203,320
|
|
|||
Unearned premiums
|
746,775
|
|
|
842,618
|
|
||
Insurance and reinsurance balances payable
|
373,180
|
|
|
388,086
|
|
||
16,074
|
|
|
10,542
|
|
|||
1,191,207
|
|
|
861,539
|
|
|||
Other liabilities
|
464,014
|
|
|
468,129
|
|
||
TOTAL LIABILITIES
|
14,068,173
|
|
|
12,183,738
|
|
||
|
|
|
|
||||
|
|
|
|||||
|
|
|
|
||||
438,791
|
|
|
458,543
|
|
|||
|
|
|
|
||||
|
|
|
|||||
Ordinary shares (par value $1 each, issued and outstanding 2019: 21,511,505; 2018: 21,459,997):
|
|
|
|
||||
Voting Ordinary Shares (issued and outstanding 2019: 18,001,823; 2018: 17,950,315)
|
18,002
|
|
|
17,950
|
|
||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2019 and 2018: 2,599,672)
|
2,600
|
|
|
2,600
|
|
||
Non-voting convertible ordinary Series E Shares (issued and outstanding 2019 and 2018: 910,010)
|
910
|
|
|
910
|
|
||
Preferred Shares:
|
|
|
|
||||
Series C Preferred Shares (issued and held in treasury 2019 and 2018: 388,571)
|
389
|
|
|
389
|
|
||
Series D Preferred Shares (issued and outstanding 2019 and 2018: 16,000)
|
400,000
|
|
|
400,000
|
|
||
Series E Preferred Shares (issued and outstanding 2019 and 2018: 4,400)
|
110,000
|
|
|
110,000
|
|
||
Treasury shares, at cost (Series C Preferred Shares 2019 and 2018: 388,571)
|
(421,559
|
)
|
|
(421,559
|
)
|
||
Additional paid-in capital
|
1,836,778
|
|
|
1,804,664
|
|
||
Accumulated other comprehensive income
|
7,171
|
|
|
10,440
|
|
||
Retained earnings
|
2,887,892
|
|
|
1,976,539
|
|
||
Total Enstar Group Limited Shareholders’ Equity
|
4,842,183
|
|
|
3,901,933
|
|
||
Noncontrolling interest
|
14,168
|
|
|
12,056
|
|
||
TOTAL SHAREHOLDERS’ EQUITY
|
$
|
4,856,351
|
|
|
$
|
3,913,989
|
|
TOTAL LIABILITIES, REDEEMABLE NONCONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY
|
19,363,315
|
|
|
16,556,270
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(expressed in thousands of U.S.
dollars, except share and per share data) |
||||||||||
INCOME
|
|
|
|
|
|
||||||
Net premiums earned
|
$
|
1,154,861
|
|
|
$
|
895,575
|
|
|
$
|
613,121
|
|
Fees and commission income
|
28,453
|
|
|
35,088
|
|
|
66,103
|
|
|||
Net investment income
|
321,276
|
|
|
270,671
|
|
|
208,789
|
|
|||
Net realized and unrealized gains (losses)
|
1,031,351
|
|
|
(412,884
|
)
|
|
190,334
|
|
|||
Other income
|
37,170
|
|
|
35,085
|
|
|
22,605
|
|
|||
|
2,573,111
|
|
|
823,535
|
|
|
1,100,952
|
|
|||
EXPENSES
|
|
|
|
|
|
||||||
Net incurred losses and loss adjustment expenses
|
872,575
|
|
|
454,025
|
|
|
193,551
|
|
|||
Life and annuity policy benefits
|
91
|
|
|
1,003
|
|
|
4,015
|
|
|||
Acquisition costs
|
305,951
|
|
|
192,790
|
|
|
96,906
|
|
|||
General and administrative expenses
|
473,086
|
|
|
407,375
|
|
|
435,985
|
|
|||
Interest expense
|
52,541
|
|
|
26,217
|
|
|
28,102
|
|
|||
Net foreign exchange (gains) losses
|
(7,879
|
)
|
|
2,668
|
|
|
17,537
|
|
|||
Loss on sale of subsidiary
|
—
|
|
|
—
|
|
|
16,349
|
|
|||
|
1,696,365
|
|
|
1,084,078
|
|
|
792,445
|
|
|||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
876,746
|
|
|
(260,543
|
)
|
|
308,507
|
|
|||
Income tax benefit (expense)
|
(4,437
|
)
|
|
6,124
|
|
|
6,395
|
|
|||
Earnings from equity method investments
|
55,910
|
|
|
42,147
|
|
|
5,904
|
|
|||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
928,219
|
|
|
(212,272
|
)
|
|
320,806
|
|
|||
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
10,993
|
|
|||
NET EARNINGS (LOSS)
|
928,219
|
|
|
(212,272
|
)
|
|
331,799
|
|
|||
Net loss (earnings) attributable to noncontrolling interest
|
9,870
|
|
|
62,051
|
|
|
(20,341
|
)
|
|||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
938,089
|
|
|
(150,221
|
)
|
|
311,458
|
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
—
|
|
|||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
311,458
|
|
|
|
|
|
|
|
||||||
Earnings per ordinary share attributable to Enstar Group Limited:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
42.00
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.50
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
0.56
|
|
|||
Net earnings (loss) per ordinary share
|
$
|
42.00
|
|
|
$
|
(7.84
|
)
|
|
$
|
16.06
|
|
Diluted:
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
41.43
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.39
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
0.56
|
|
|||
Net earnings (loss) per ordinary share
|
$
|
41.43
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.95
|
|
Weighted average ordinary shares outstanding:
|
|
|
|
|
|
||||||
Basic
|
21,482,617
|
|
|
20,698,310
|
|
|
19,388,621
|
|
|||
Diluted
|
21,775,066
|
|
|
20,904,176
|
|
|
19,527,591
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(expressed in thousands of U.S. dollars)
|
||||||||||
NET EARNINGS (LOSS)
|
$
|
928,219
|
|
|
$
|
(212,272
|
)
|
|
$
|
331,799
|
|
|
|
|
|
|
|
||||||
Other comprehensive income (loss), net of income taxes:
|
|
|
|
|
|
||||||
Unrealized holding gains (losses) on fixed income investments arising during the year
|
2,896
|
|
|
(2,284
|
)
|
|
4,776
|
|
|||
Reclassification adjustment for net realized gains (losses) included in net earnings
|
(3,894
|
)
|
|
63
|
|
|
(491
|
)
|
|||
Unrealized gains (losses) arising during the year, net of reclassification adjustment
|
(998
|
)
|
|
(2,221
|
)
|
|
4,285
|
|
|||
Change in currency translation adjustment
|
(2,428
|
)
|
|
(202
|
)
|
|
9,423
|
|
|||
Reclassification to earnings on disposal of subsidiary
|
—
|
|
|
—
|
|
|
20,751
|
|
|||
Total cumulative translation adjustment
|
(2,428
|
)
|
|
(202
|
)
|
|
30,174
|
|
|||
Decrease in defined benefit pension liability
|
42
|
|
|
2,156
|
|
|
1,501
|
|
|||
Total other comprehensive gain (loss)
|
(3,384
|
)
|
|
(267
|
)
|
|
35,960
|
|
|||
|
|
|
|
|
|
||||||
Comprehensive income (loss)
|
924,835
|
|
|
(212,539
|
)
|
|
367,759
|
|
|||
Comprehensive loss (income) attributable to noncontrolling interest
|
9,985
|
|
|
62,291
|
|
|
(22,285
|
)
|
|||
|
|
|
|
|
|
||||||
COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
$
|
934,820
|
|
|
$
|
(150,248
|
)
|
|
$
|
345,474
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(expressed in thousands of U.S. dollars)
|
||||||||||
Share Capital — Voting Ordinary Shares
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
17,950
|
|
|
$
|
16,402
|
|
|
$
|
16,175
|
|
Issue of shares
|
52
|
|
|
1,548
|
|
|
35
|
|
|||
Conversion of Series C Non-Voting Convertible Ordinary Shares
|
—
|
|
|
—
|
|
|
192
|
|
|||
Balance, end of year
|
$
|
18,002
|
|
|
$
|
17,950
|
|
|
$
|
16,402
|
|
Share Capital — Non-Voting Convertible Ordinary Series C Shares
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
2,600
|
|
|
$
|
2,600
|
|
|
$
|
2,792
|
|
Conversion to Voting Ordinary Shares
|
—
|
|
|
—
|
|
|
(192
|
)
|
|||
Balance, end of year
|
$
|
2,600
|
|
|
$
|
2,600
|
|
|
$
|
2,600
|
|
Share Capital — Non-Voting Convertible Ordinary Series E Shares
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
910
|
|
|
$
|
405
|
|
|
$
|
405
|
|
Issue of shares
|
—
|
|
|
505
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
910
|
|
|
$
|
910
|
|
|
$
|
405
|
|
Share Capital - Series C Convertible Participating Non-Voting Preferred Shares
|
|
|
|
|
|
||||||
Balance, beginning and end of year
|
$
|
389
|
|
|
$
|
389
|
|
|
$
|
389
|
|
Share Capital - Series D Preferred Shares
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
400,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Issue of shares
|
—
|
|
|
400,000
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
400,000
|
|
|
$
|
400,000
|
|
|
$
|
—
|
|
Share Capital - Series E Preferred Shares
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
110,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Issue of shares
|
—
|
|
|
110,000
|
|
|
—
|
|
|||
Balance, end of year
|
$
|
110,000
|
|
|
$
|
110,000
|
|
|
$
|
—
|
|
Treasury Shares (Series C Preferred Shares)
|
|
|
|
|
|
||||||
Balance, beginning and end of year
|
$
|
(421,559
|
)
|
|
$
|
(421,559
|
)
|
|
$
|
(421,559
|
)
|
Additional Paid-in Capital
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
1,804,664
|
|
|
$
|
1,395,067
|
|
|
$
|
1,380,109
|
|
Issue of voting ordinary shares
|
583
|
|
|
413,141
|
|
|
450
|
|
|||
Issuance costs of preferred shares
|
—
|
|
|
(14,643
|
)
|
|
—
|
|
|||
Amortization of share-based compensation
|
31,531
|
|
|
11,099
|
|
|
14,508
|
|
|||
Balance, end of year
|
$
|
1,836,778
|
|
|
$
|
1,804,664
|
|
|
$
|
1,395,067
|
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
10,440
|
|
|
$
|
10,468
|
|
|
$
|
(23,549
|
)
|
Cumulative translation adjustment
|
|
|
|
|
|
||||||
Balance, beginning of year
|
10,986
|
|
|
11,171
|
|
|
(18,993
|
)
|
|||
Change in currency translation adjustment
|
(2,438
|
)
|
|
(185
|
)
|
|
9,413
|
|
|||
Reclassification to earnings on disposal of subsidiary
|
—
|
|
|
—
|
|
|
20,751
|
|
|||
Balance, end of year
|
8,548
|
|
|
10,986
|
|
|
11,171
|
|
|||
Defined benefit pension liability
|
|
|
|
|
|
||||||
Balance, beginning of year
|
(987
|
)
|
|
(3,143
|
)
|
|
(4,644
|
)
|
|||
Change in defined benefit pension liability
|
42
|
|
|
2,156
|
|
|
1,501
|
|
|||
Balance, end of year
|
(945
|
)
|
|
(987
|
)
|
|
(3,143
|
)
|
|||
Unrealized gains (losses) on investments
|
|
|
|
|
|
||||||
Balance, beginning of year
|
441
|
|
|
2,440
|
|
|
88
|
|
|||
Change in unrealized gains (losses) on investments
|
(873
|
)
|
|
(1,999
|
)
|
|
2,352
|
|
|||
Balance, end of year
|
(432
|
)
|
|
441
|
|
|
2,440
|
|
|||
Balance, end of year
|
$
|
7,171
|
|
|
$
|
10,440
|
|
|
$
|
10,468
|
|
Retained Earnings
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
1,976,539
|
|
|
$
|
2,132,912
|
|
|
$
|
1,847,550
|
|
Net earnings (loss) attributable to Enstar Group Limited ordinary shareholders
|
928,219
|
|
|
(212,272
|
)
|
|
331,799
|
|
|||
Net loss (earnings) attributable to noncontrolling interest
|
9,870
|
|
|
62,051
|
|
|
(20,341
|
)
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
—
|
|
|||
Change in redemption value of redeemable noncontrolling interests
|
9,178
|
|
|
7,554
|
|
|
(30,978
|
)
|
|||
Cumulative effect of change in accounting principle
|
—
|
|
|
(1,573
|
)
|
|
4,882
|
|
|||
Balance, end of year
|
$
|
2,887,892
|
|
|
$
|
1,976,539
|
|
|
$
|
2,132,912
|
|
Noncontrolling Interest (excludes redeemable noncontrolling interests)
|
|
|
|
|
|
||||||
Balance, beginning of year
|
$
|
12,056
|
|
|
$
|
9,264
|
|
|
$
|
8,520
|
|
Purchase of noncontrolling shareholders' interest in subsidiaries
|
(47
|
)
|
|
—
|
|
|
—
|
|
|||
Contribution of capital
|
—
|
|
|
49
|
|
|
22
|
|
|||
Net earnings attributable to noncontrolling interest
|
2,159
|
|
|
2,743
|
|
|
722
|
|
|||
Balance, end of year
|
$
|
14,168
|
|
|
$
|
12,056
|
|
|
$
|
9,264
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(expressed in thousands of U.S. dollars)
|
||||||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net earnings (loss)
|
$
|
928,219
|
|
|
$
|
(212,272
|
)
|
|
$
|
331,799
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
(10,993
|
)
|
|||
Adjustments to reconcile net earnings to cash flows used in operating activities:
|
|
|
|
|
|
||||||
Realized losses (gains) on sale of investments
|
(96,328
|
)
|
|
27,633
|
|
|
(1,668
|
)
|
|||
Unrealized losses (gains) on investments
|
(935,023
|
)
|
|
385,251
|
|
|
(188,666
|
)
|
|||
Depreciation and other amortization
|
35,583
|
|
|
33,295
|
|
|
36,115
|
|
|||
Earnings from equity method investments
|
(55,910
|
)
|
|
(42,147
|
)
|
|
(5,904
|
)
|
|||
Sales and maturities of trading securities
|
5,829,277
|
|
|
4,802,224
|
|
|
6,111,607
|
|
|||
Purchases of trading securities
|
(4,591,459
|
)
|
|
(5,592,311
|
)
|
|
(7,544,649
|
)
|
|||
Net loss on sale of subsidiary
|
—
|
|
|
—
|
|
|
16,349
|
|
|||
Other non-cash items
|
33,857
|
|
|
11,857
|
|
|
41,087
|
|
|||
Changes in:
|
|
|
|
|
|
||||||
Reinsurance balances recoverable on paid and unpaid losses
|
(350,243
|
)
|
|
(268,039
|
)
|
|
(530,857
|
)
|
|||
Funds held by reinsured companies
|
(87,468
|
)
|
|
(126,897
|
)
|
|
(93,310
|
)
|
|||
Losses and loss adjustment expenses
|
1,021,175
|
|
|
960,199
|
|
|
1,363,032
|
|
|||
Defendant asbestos and environmental liabilities
|
(18,142
|
)
|
|
(15,844
|
)
|
|
(14,857
|
)
|
|||
Policy benefits for life and annuity contracts
|
(103,080
|
)
|
|
(6,776
|
)
|
|
(3,314
|
)
|
|||
Insurance and reinsurance balances payable
|
(15,227
|
)
|
|
151,918
|
|
|
(157,741
|
)
|
|||
Unearned premiums
|
(95,843
|
)
|
|
173,725
|
|
|
34,854
|
|
|||
Premiums receivable
|
210,493
|
|
|
(212,423
|
)
|
|
(19,026
|
)
|
|||
Other operating assets and liabilities
|
53,635
|
|
|
(229,465
|
)
|
|
293,035
|
|
|||
Net cash flows provided by (used in) operating activities
|
1,763,516
|
|
|
(160,072
|
)
|
|
(343,107
|
)
|
|||
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Acquisitions, net of cash acquired
|
$
|
172,482
|
|
|
$
|
(245,151
|
)
|
|
$
|
(4,185
|
)
|
Sale of subsidiary, net of cash sold
|
—
|
|
|
—
|
|
|
126,611
|
|
|||
Sales and maturities of available-for-sale securities
|
344,325
|
|
|
58,219
|
|
|
86,359
|
|
|||
Purchase of available-for-sale securities
|
(2,212,204
|
)
|
|
(10,386
|
)
|
|
(14,848
|
)
|
|||
Purchase of other investments
|
(796,918
|
)
|
|
(901,071
|
)
|
|
(109,885
|
)
|
|||
Proceeds from other investments
|
582,662
|
|
|
436,396
|
|
|
232,827
|
|
|||
Purchase of equity method investments
|
(69,213
|
)
|
|
(155,440
|
)
|
|
—
|
|
|||
Other investing activities
|
(4,671
|
)
|
|
(8,321
|
)
|
|
(23,617
|
)
|
|||
Net cash flows provided by (used in) investing activities
|
(1,983,537
|
)
|
|
(825,754
|
)
|
|
293,262
|
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Net proceeds from the issuance of preferred shares
|
$
|
—
|
|
|
$
|
495,357
|
|
|
$
|
—
|
|
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
—
|
|
|||
Contribution by noncontrolling interest
|
—
|
|
|
49
|
|
|
22
|
|
|||
Contribution by redeemable noncontrolling interest
|
13,127
|
|
|
55,377
|
|
|
—
|
|
|||
Dividends paid to noncontrolling interest
|
(11,556
|
)
|
|
(3,852
|
)
|
|
(27,458
|
)
|
|||
Purchase of noncontrolling interest in subsidiaries
|
(47
|
)
|
|
—
|
|
|
—
|
|
|||
Receipt of loans
|
1,070,502
|
|
|
1,132,507
|
|
|
874,100
|
|
|||
Repayment of loans
|
(742,574
|
)
|
|
(914,319
|
)
|
|
(912,140
|
)
|
|||
Net cash flows provided by (used in) financing activities
|
293,538
|
|
|
752,986
|
|
|
(65,476
|
)
|
|||
EFFECT OF EXCHANGE RATE CHANGES ON FOREIGN CURRENCY CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(324
|
)
|
|
2,588
|
|
|
9,512
|
|
|||
NET INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
73,193
|
|
|
(230,252
|
)
|
|
(105,809
|
)
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF YEAR
|
982,584
|
|
|
1,212,836
|
|
|
1,318,645
|
|
|||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF YEAR
|
$
|
1,055,777
|
|
|
$
|
982,584
|
|
|
$
|
1,212,836
|
|
|
|
|
|
|
|
||||||
Supplemental Cash Flow Information:
|
|
|
|
|
|
||||||
Income taxes paid, net of refunds
|
$
|
5,012
|
|
|
$
|
17,610
|
|
|
$
|
13,192
|
|
Interest paid
|
$
|
49,457
|
|
|
$
|
25,240
|
|
|
$
|
21,487
|
|
|
|
|
|
|
|
||||||
Reconciliation to Consolidated Balance Sheets:
|
|
|
|
|
|
||||||
Cash and cash equivalents
|
$
|
703,085
|
|
|
$
|
602,096
|
|
|
$
|
955,150
|
|
Restricted cash and cash equivalents
|
352,692
|
|
|
380,488
|
|
|
257,686
|
|
|||
Cash, cash equivalents and restricted cash
|
$
|
1,055,777
|
|
|
$
|
982,584
|
|
|
$
|
1,212,836
|
|
(i)
|
Non-life Run-off: This segment comprises the operations of our subsidiaries that are running off their property and casualty and other non-life business. It also includes our management business, which manages the run-off portfolios of third parties through our service companies;
|
(ii)
|
Atrium: Atrium Underwriters Ltd. is a managing general agent at Lloyd’s of London ("Lloyd's"), which manages Syndicate 609. Through a corporate capital vehicle, Atrium 5 Ltd., we provide 25% of the syndicate’s underwriting capacity and capital (with the balance provided by traditional Lloyd’s Names). Atrium specializes in a wide range of industry classes, including marine, aviation and transit, property and casualty binding authorities, reinsurance, accident and health and non-marine direct and facultative; and
|
(iii)
|
StarStone: StarStone is a global specialty insurer that underwrites a diverse range of property, casualty and specialty insurance through its operations in Bermuda, the United States, the United Kingdom, and Continental Europe. Certain business of StarStone placed into run-off at the time of our acquisition of StarStone is recorded in our Non-life Run-off segment.
|
•
|
liability for losses and loss adjustment expenses ("LAE");
|
•
|
reinsurance balances recoverable on paid and unpaid losses;
|
•
|
defendant asbestos and environmental liabilities and related insurance balances recoverable;
|
•
|
valuation allowances on reinsurance balances recoverable and deferred tax assets;
|
•
|
impairment charges, including other-than-temporary impairments on investment securities classified as available-for-sale, and impairments on goodwill, intangible assets and deferred charge assets;
|
•
|
gross and net premiums written and net premiums earned;
|
•
|
fair value measurements of investments;
|
•
|
fair value estimates associated with accounting for acquisitions;
|
•
|
fair value estimates associated with loss portfolio transfer reinsurance agreements for which we have elected the fair value option; and
|
•
|
redeemable noncontrolling interests.
|
•
|
Net losses paid: paid losses and LAE, net of related reinsurance recoveries.
|
•
|
Net change in case and LAE reserves: the change in case reserves and associated LAE, net of related reinsurance recoveries.
|
•
|
Net change in IBNR reserves: the change in IBNR reserves, net of related reinsurance recoveries.
|
•
|
Increase (reduction) in estimates of net ultimate losses: the total of net losses paid, net change in case and LAE reserves and the net change in IBNR. This includes the net impact of commutations and policy buybacks on the liability for losses and LAE reserves and reinsurance recoveries.
|
•
|
Increase (reduction) in provisions for unallocated LAE: the net change in our provision for unallocated LAE.
|
•
|
Amortization of deferred charge assets: the amortization of the deferred charge assets associated with assumed retroactive reinsurance contracts, where the estimated ultimate losses assumed at the inception of the contracts is greater than the premium consideration received.
|
•
|
Amortization of fair value adjustments: the amortization of the fair value adjustments associated with acquired companies, where the assumed losses and LAE reserves and the acquired reinsurance recoveries are fair valued on acquisition.
|
•
|
Changes in fair value - fair value option: the changes in the fair value for reinsurance agreements where we have elected the fair value option. The change in fair value component includes the changes in the discounted cash flows and risk margin. The underlying net losses paid, net change in case and LAE reserves and the net change in IBNR reserves relating to these reinsurance agreements for which we have elected the fair value option are included within the appropriate line items described above.
|
•
|
Net incurred losses and LAE: the total of increase (reduction) in estimates of net ultimate losses, increase (reduction) in provisions for unallocated LAE, amortization of deferred charge assets, amortization of fair value adjustments and changes in fair value - fair value option.
|
ASSETS
|
|
|
||
Cash and cash equivalents
|
|
$
|
171,412
|
|
Deferred tax assets
|
|
140,000
|
|
|
Other assets - insurance balances receivable
|
|
371,116
|
|
|
TOTAL ASSETS
|
|
682,528
|
|
|
LIABILITIES
|
|
|
||
Defendant asbestos and environmental liabilities
|
|
662,507
|
|
|
Other liabilities
|
|
20,021
|
|
|
TOTAL LIABILITIES
|
|
$
|
682,528
|
|
NET ASSETS ACQUIRED AT FAIR VALUE
|
|
—
|
|
Net investment income
|
|
$
|
488
|
|
General and administrative expenses
|
|
(1,459
|
)
|
|
Other expenses
|
|
(1,512
|
)
|
|
Net loss
|
|
$
|
(2,483
|
)
|
2019
|
Enstar Group Limited
|
|
Morse TEC
|
|
Pro Forma Adjustments
|
|
Enstar Group Limited - Pro forma
|
||||||||
Total income
|
$
|
2,629,021
|
|
|
$
|
76,480
|
|
|
$
|
(488
|
)
|
|
$
|
2,705,013
|
|
Total expenses
|
(1,700,802
|
)
|
|
(8,918
|
)
|
|
1,459
|
|
|
(1,708,261
|
)
|
||||
Total noncontrolling interest
|
9,870
|
|
|
—
|
|
|
—
|
|
|
9,870
|
|
||||
Net earnings (loss) attributable to Enstar Group Limited
|
$
|
938,089
|
|
|
$
|
67,562
|
|
|
$
|
971
|
|
|
$
|
1,006,622
|
|
2018
|
Enstar Group Limited
|
|
Morse TEC
|
|
Enstar Group Limited - Pro forma
|
||||||
Total income
|
$
|
865,682
|
|
|
$
|
42,766
|
|
|
$
|
908,448
|
|
Total expenses
|
(1,077,954
|
)
|
|
(30,187
|
)
|
|
(1,108,141
|
)
|
|||
Total noncontrolling interest
|
62,051
|
|
|
—
|
|
|
62,051
|
|
|||
Net earnings (loss) attributable to Enstar Group Limited
|
$
|
(150,221
|
)
|
|
$
|
12,579
|
|
|
$
|
(137,642
|
)
|
Cash paid
|
|
$
|
286,375
|
|
Adjustment for the fair value of preexisting relationships
|
|
10,273
|
|
|
Total purchase price
|
|
$
|
296,648
|
|
Net assets acquired at fair value (excluding preexisting relationships)
|
|
$
|
296,648
|
|
Excess of purchase price over fair value of net assets acquired
|
|
$
|
—
|
|
ASSETS
|
|
|
||
Fixed maturities, trading, at fair value
|
|
$
|
1,098,593
|
|
Short-term investments, trading, at fair value
|
|
3,508
|
|
|
Total investments
|
|
1,102,101
|
|
|
Cash and cash equivalents
|
|
12,035
|
|
|
Restricted cash and cash equivalents
|
|
26,871
|
|
|
Premiums receivable
|
|
138,378
|
|
|
Prepaid reinsurance premiums
|
|
3,257
|
|
|
Reinsurance balances recoverable
|
|
87,018
|
|
|
Other assets
|
|
96,669
|
|
|
TOTAL ASSETS
|
|
$
|
1,466,329
|
|
LIABILITIES
|
|
|
||
Losses and LAE
|
|
$
|
1,027,367
|
|
Unearned premiums
|
|
85,696
|
|
|
Other liabilities
|
|
56,618
|
|
|
TOTAL LIABILITIES
|
|
1,169,681
|
|
|
NET ASSETS ACQUIRED AT FAIR VALUE
|
|
$
|
296,648
|
|
Net investment income
|
|
$
|
675
|
|
Net unrealized gains
|
|
3,749
|
|
|
General and administrative expenses
|
|
(435
|
)
|
|
Net earnings
|
|
$
|
3,989
|
|
Fair value of Enstar ordinary shares issued
|
|
$
|
414,750
|
|
Fair value of previously held equity method investment
|
|
336,137
|
|
|
Adjustment for the fair value of preexisting relationships
|
|
37,169
|
|
|
Total purchase price
|
|
$
|
788,056
|
|
Net assets acquired at fair value (excluding preexisting relationships)
|
|
$
|
746,320
|
|
Excess of purchase price over fair value of net assets acquired
|
|
$
|
41,736
|
|
Number of Enstar ordinary shares issued
|
|
2,007,017
|
||
Closing price of Enstar voting ordinary shares as of May 14, 2018
|
|
$
|
206.65
|
|
Fair value of Enstar ordinary shares issued to shareholders of KaylaRe
|
|
$
|
414,750
|
|
Carrying value of previously held equity method investment prior to the close of the transaction
|
|
$
|
320,130
|
|
Price-to-book multiple
|
|
1.05
|
||
Fair value of previously held equity method investment prior to the close of the transaction
|
|
$
|
336,137
|
|
|
|
|
||
Gain recognized on remeasurement of previously held equity method investment to fair value
|
|
$
|
16,007
|
|
ASSETS
|
Carrying value
|
|
Fair value
|
|
Loss on deemed settlement
|
||||||
Funds held by reinsured companies
|
$
|
386,793
|
|
|
$
|
386,793
|
|
|
$
|
—
|
|
Deferred acquisition costs/Value of business acquired
|
33,549
|
|
|
40,268
|
|
|
6,719
|
|
|||
TOTAL ASSETS
|
420,342
|
|
|
427,061
|
|
|
6,719
|
|
|||
LIABILITIES
|
|
|
|
|
|
||||||
Losses and LAE
|
339,747
|
|
|
333,205
|
|
|
(6,542
|
)
|
|||
Unearned premiums
|
105,602
|
|
|
105,602
|
|
|
—
|
|
|||
Insurance and reinsurance balances payable
|
25,897
|
|
|
23,559
|
|
|
(2,338
|
)
|
|||
Other liabilities
|
1,864
|
|
|
1,864
|
|
|
—
|
|
|||
TOTAL LIABILITIES
|
473,110
|
|
|
464,230
|
|
|
(8,880
|
)
|
|||
NET ASSETS (LIABILITIES)
|
$
|
(52,768
|
)
|
|
$
|
(37,169
|
)
|
|
$
|
15,599
|
|
ASSETS
|
|
|
||
Fixed maturities, trading, at fair value
|
|
$
|
126,393
|
|
Other investments, at fair value
|
|
626,476
|
|
|
Total investments
|
|
752,869
|
|
|
Cash and cash equivalents
|
|
5,657
|
|
|
Premiums receivable
|
|
10,965
|
|
|
Deferred acquisition costs
|
|
275
|
|
|
Other assets
|
|
614
|
|
|
TOTAL ASSETS
|
|
$
|
770,380
|
|
LIABILITIES
|
|
|
||
Losses and LAE
|
|
$
|
4,059
|
|
Unearned premiums
|
|
10,984
|
|
|
Insurance and reinsurance balances payable
|
|
13
|
|
|
Other liabilities
|
|
9,004
|
|
|
TOTAL LIABILITIES
|
|
24,060
|
|
|
NET ASSETS ACQUIRED AT FAIR VALUE
|
|
$
|
746,320
|
|
Premiums earned
|
|
$
|
13,627
|
|
Incurred losses and LAE
|
|
(12,364
|
)
|
|
Acquisition costs
|
|
(341
|
)
|
|
Underwriting income
|
|
922
|
|
|
Net investment income
|
|
3,096
|
|
|
Net unrealized gains
|
|
(47,769
|
)
|
|
General and administrative expenses
|
|
(2,164
|
)
|
|
Net loss
|
|
$
|
(45,915
|
)
|
|
2019
|
||||||||||||||||||||||
|
Short-term investments, trading
|
|
Short-term investments, available-for-sale
|
|
Fixed maturities, trading
|
|
Fixed maturities, available-for-sale
|
|
Fixed maturities, funds held - directly managed
|
|
Total
|
||||||||||||
U.S. government and agency
|
$
|
—
|
|
|
$
|
111,583
|
|
|
$
|
219,194
|
|
|
$
|
298,729
|
|
|
$
|
106,537
|
|
|
$
|
736,043
|
|
U.K. government
|
24,411
|
|
|
1,069
|
|
|
122,012
|
|
|
14,280
|
|
|
—
|
|
|
161,772
|
|
||||||
Other government
|
21,958
|
|
|
387
|
|
|
575,018
|
|
|
84,760
|
|
|
20,734
|
|
|
702,857
|
|
||||||
Corporate
|
5,121
|
|
|
13,915
|
|
|
4,007,386
|
|
|
1,067,256
|
|
|
603,389
|
|
|
5,697,067
|
|
||||||
Municipal
|
—
|
|
|
1,381
|
|
|
102,554
|
|
|
14,491
|
|
|
49,456
|
|
|
167,882
|
|
||||||
Residential mortgage-backed
|
—
|
|
|
—
|
|
|
258,412
|
|
|
127,219
|
|
|
86,205
|
|
|
471,836
|
|
||||||
Commercial mortgage-backed
|
—
|
|
|
—
|
|
|
571,129
|
|
|
98,557
|
|
|
230,343
|
|
|
900,029
|
|
||||||
Asset-backed
|
—
|
|
|
—
|
|
|
490,624
|
|
|
208,097
|
|
|
76,681
|
|
|
775,402
|
|
||||||
Total fixed maturity and short-term investments
|
$
|
51,490
|
|
|
$
|
128,335
|
|
|
$
|
6,346,329
|
|
|
$
|
1,913,389
|
|
|
$
|
1,173,345
|
|
|
$
|
9,612,888
|
|
|
2018
|
||||||||||||||||||
|
Short-term investments, trading
|
|
Fixed maturities, trading
|
|
Fixed maturities, available-for-sale
|
|
Fixed maturities, funds held - directly managed
|
|
Total
|
||||||||||
U.S. government and agency
|
$
|
45,885
|
|
|
$
|
389,735
|
|
|
$
|
573
|
|
|
$
|
74,052
|
|
|
$
|
510,245
|
|
U.K. government
|
2,275
|
|
|
298,356
|
|
|
—
|
|
|
—
|
|
|
300,631
|
|
|||||
Other government
|
19,064
|
|
|
679,525
|
|
|
73,185
|
|
|
22,036
|
|
|
793,810
|
|
|||||
Corporate
|
44,900
|
|
|
4,081,793
|
|
|
75,359
|
|
|
637,788
|
|
|
4,839,840
|
|
|||||
Municipal
|
—
|
|
|
73,856
|
|
|
2,480
|
|
|
53,929
|
|
|
130,265
|
|
|||||
Residential mortgage-backed
|
—
|
|
|
682,962
|
|
|
12
|
|
|
90,583
|
|
|
773,557
|
|
|||||
Commercial mortgage-backed
|
—
|
|
|
488,598
|
|
|
—
|
|
|
224,465
|
|
|
713,063
|
|
|||||
Asset-backed
|
1,992
|
|
|
553,968
|
|
|
—
|
|
|
80,521
|
|
|
636,481
|
|
|||||
Total fixed maturity and short-term investments
|
$
|
114,116
|
|
|
$
|
7,248,793
|
|
|
$
|
151,609
|
|
|
$
|
1,183,374
|
|
|
$
|
8,697,892
|
|
As of December 31, 2019
|
|
Amortized
Cost
|
|
Fair Value
|
|
% of Total
Fair
Value
|
|||||
One year or less
|
|
$
|
537,944
|
|
|
$
|
536,156
|
|
|
5.6
|
%
|
More than one year through two years
|
|
801,473
|
|
|
808,071
|
|
|
8.4
|
%
|
||
More than two years through five years
|
|
2,175,547
|
|
|
2,212,834
|
|
|
23.0
|
%
|
||
More than five years through ten years
|
|
2,108,172
|
|
|
2,198,505
|
|
|
22.9
|
%
|
||
More than ten years
|
|
1,584,345
|
|
|
1,710,055
|
|
|
17.8
|
%
|
||
Residential mortgage-backed
|
|
466,932
|
|
|
471,836
|
|
|
4.9
|
%
|
||
Commercial mortgage-backed
|
|
882,603
|
|
|
900,029
|
|
|
9.4
|
%
|
||
Asset-backed
|
|
779,279
|
|
|
775,402
|
|
|
8.0
|
%
|
||
|
|
$
|
9,336,295
|
|
|
$
|
9,612,888
|
|
|
100.0
|
%
|
|
|
Amortized
Cost
|
|
Fair Value
|
|
% of Total
|
|
AAA
Rated
|
|
AA Rated
|
|
A Rated
|
|
BBB
Rated
|
|
Non-
Investment
Grade
|
|
Not Rated
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
U.S. government and agency
|
|
$
|
730,396
|
|
|
$
|
736,043
|
|
|
7.7
|
%
|
|
$
|
736,043
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
U.K. government
|
|
155,261
|
|
|
161,772
|
|
|
1.7
|
%
|
|
—
|
|
|
161,772
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
Other government
|
|
684,117
|
|
|
702,857
|
|
|
7.3
|
%
|
|
316,151
|
|
|
154,072
|
|
|
63,270
|
|
|
144,557
|
|
|
24,807
|
|
|
—
|
|
||||||||
Corporate
|
|
5,479,839
|
|
|
5,697,067
|
|
|
59.2
|
%
|
|
149,108
|
|
|
619,707
|
|
|
2,911,867
|
|
|
1,703,328
|
|
|
311,167
|
|
|
1,890
|
|
||||||||
Municipal
|
|
157,868
|
|
|
167,882
|
|
|
1.7
|
%
|
|
16,381
|
|
|
77,291
|
|
|
50,938
|
|
|
23,272
|
|
|
—
|
|
|
—
|
|
||||||||
Residential mortgage-backed
|
|
466,932
|
|
|
471,836
|
|
|
4.9
|
%
|
|
381,502
|
|
|
47,489
|
|
|
2,295
|
|
|
1,882
|
|
|
34,055
|
|
|
4,613
|
|
||||||||
Commercial mortgage-backed
|
|
882,603
|
|
|
900,029
|
|
|
9.4
|
%
|
|
632,461
|
|
|
89,347
|
|
|
95,508
|
|
|
66,573
|
|
|
6,224
|
|
|
9,916
|
|
||||||||
Asset-backed
|
|
779,279
|
|
|
775,402
|
|
|
8.1
|
%
|
|
378,116
|
|
|
89,418
|
|
|
174,118
|
|
|
117,275
|
|
|
15,694
|
|
|
781
|
|
||||||||
Total
|
|
$
|
9,336,295
|
|
|
$
|
9,612,888
|
|
|
100.0
|
%
|
|
$
|
2,609,762
|
|
|
$
|
1,239,096
|
|
|
$
|
3,297,996
|
|
|
$
|
2,056,887
|
|
|
$
|
391,947
|
|
|
$
|
17,200
|
|
% of total fair value
|
|
|
|
|
|
|
|
27.1
|
%
|
|
12.9
|
%
|
|
34.3
|
%
|
|
21.4
|
%
|
|
4.1
|
%
|
|
0.2
|
%
|
2019
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
Non-OTTI
|
|
Fair
Value
|
||||||||
U.S. government and agency
|
|
$
|
410,842
|
|
|
$
|
77
|
|
|
$
|
(607
|
)
|
|
$
|
410,312
|
|
U.K. government
|
|
15,067
|
|
|
282
|
|
|
—
|
|
|
15,349
|
|
||||
Other government
|
|
84,116
|
|
|
1,119
|
|
|
(88
|
)
|
|
85,147
|
|
||||
Corporate
|
|
1,081,713
|
|
|
4,026
|
|
|
(4,568
|
)
|
|
1,081,171
|
|
||||
Municipal
|
|
15,963
|
|
|
20
|
|
|
(111
|
)
|
|
15,872
|
|
||||
Residential mortgage-backed
|
|
127,704
|
|
|
240
|
|
|
(725
|
)
|
|
127,219
|
|
||||
Commercial mortgage-backed
|
|
98,928
|
|
|
38
|
|
|
(409
|
)
|
|
98,557
|
|
||||
Asset-backed
|
|
208,121
|
|
|
169
|
|
|
(193
|
)
|
|
208,097
|
|
||||
|
|
$
|
2,042,454
|
|
|
$
|
5,971
|
|
|
$
|
(6,701
|
)
|
|
$
|
2,041,724
|
|
2018
|
|
Amortized
Cost
|
|
Gross
Unrealized
Gains
|
|
Gross
Unrealized
Losses
Non-OTTI
|
|
Fair
Value
|
||||||||
U.S. government and agency
|
|
$
|
576
|
|
|
$
|
—
|
|
|
$
|
(3
|
)
|
|
$
|
573
|
|
Other government
|
|
72,811
|
|
|
1,219
|
|
|
(845
|
)
|
|
73,185
|
|
||||
Corporate
|
|
75,535
|
|
|
1,006
|
|
|
(1,182
|
)
|
|
75,359
|
|
||||
Municipal
|
|
2,499
|
|
|
—
|
|
|
(19
|
)
|
|
2,480
|
|
||||
Residential mortgage-backed
|
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
||||
|
|
$
|
151,433
|
|
|
$
|
2,225
|
|
|
$
|
(2,049
|
)
|
|
$
|
151,609
|
|
|
|
|
12 Months or Greater
|
|
Less Than 12 Months
|
|
Total
|
||||||||||||||||||
2019
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|||||||||||||
Fixed maturity investments, at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
U.S. government and agency
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
222,643
|
|
|
$
|
(607
|
)
|
|
$
|
222,643
|
|
|
$
|
(607
|
)
|
|
Other government
|
|
1,080
|
|
|
(23
|
)
|
|
37,796
|
|
|
(65
|
)
|
|
38,876
|
|
|
(88
|
)
|
||||||
|
Corporate
|
|
2,754
|
|
|
(306
|
)
|
|
461,772
|
|
|
(4,262
|
)
|
|
464,526
|
|
|
(4,568
|
)
|
||||||
|
Municipal
|
|
128
|
|
|
—
|
|
|
12,046
|
|
|
(111
|
)
|
|
12,174
|
|
|
(111
|
)
|
||||||
|
Residential mortgage-backed
|
|
—
|
|
|
—
|
|
|
65,992
|
|
|
(725
|
)
|
|
65,992
|
|
|
(725
|
)
|
||||||
|
Commercial mortgage-backed
|
|
—
|
|
|
—
|
|
|
79,606
|
|
|
(409
|
)
|
|
79,606
|
|
|
(409
|
)
|
||||||
|
Asset-backed
|
|
—
|
|
|
—
|
|
|
129,014
|
|
|
(193
|
)
|
|
129,014
|
|
|
(193
|
)
|
||||||
Total fixed maturity and short-term investments
|
|
$
|
3,962
|
|
|
$
|
(329
|
)
|
|
$
|
1,008,869
|
|
|
$
|
(6,372
|
)
|
|
$
|
1,012,831
|
|
|
$
|
(6,701
|
)
|
|
|
|
12 Months or Greater
|
|
Less Than 12 Months
|
|
Total
|
||||||||||||||||||
2018
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|
Fair
Value
|
|
Gross Unrealized
Losses
|
|||||||||||||
Fixed maturity and short-term investments, at fair value
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
U.S. government and agency
|
|
$
|
573
|
|
|
$
|
(3
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
573
|
|
|
$
|
(3
|
)
|
|
Other government
|
|
7,351
|
|
|
(345
|
)
|
|
11,000
|
|
|
(500
|
)
|
|
18,351
|
|
|
(845
|
)
|
||||||
|
Corporate
|
|
11,888
|
|
|
(629
|
)
|
|
25,227
|
|
|
(553
|
)
|
|
37,115
|
|
|
(1,182
|
)
|
||||||
|
Municipal
|
|
1,783
|
|
|
(18
|
)
|
|
283
|
|
|
(1
|
)
|
|
2,066
|
|
|
(19
|
)
|
||||||
|
Residential mortgage-backed
|
|
12
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
||||||
Total fixed maturity and short-term investments
|
|
$
|
21,607
|
|
|
$
|
(995
|
)
|
|
$
|
36,510
|
|
|
$
|
(1,054
|
)
|
|
$
|
58,117
|
|
|
$
|
(2,049
|
)
|
|
2019
|
|
2018
|
||||
Publicly traded equity investments in common and preferred stocks
|
$
|
327,875
|
|
|
$
|
138,415
|
|
Exchange-traded funds
|
133,047
|
|
|
—
|
|
||
Privately held equity investments in common and preferred stocks
|
268,799
|
|
|
228,710
|
|
||
|
$
|
729,721
|
|
|
$
|
367,125
|
|
|
|
2019
|
|
2018
|
||||
Hedge funds
|
|
$
|
1,121,904
|
|
|
$
|
852,584
|
|
Fixed income funds
|
|
481,039
|
|
|
403,858
|
|
||
Equity funds
|
|
410,149
|
|
|
333,681
|
|
||
Private equity funds
|
|
329,885
|
|
|
248,628
|
|
||
CLO equity funds
|
|
87,509
|
|
|
37,260
|
|
||
CLO equities
|
|
87,555
|
|
|
39,052
|
|
||
Private credit funds
|
|
—
|
|
|
33,381
|
|
||
Others
|
|
6,379
|
|
|
9,313
|
|
||
|
|
$
|
2,524,420
|
|
|
$
|
1,957,757
|
|
•
|
Hedge funds may invest in a wide range of instruments, including debt and equity securities, and utilize various sophisticated strategies to achieve their objectives. We invest in a mixture of fixed income, equity and multi-strategy hedge funds.
|
•
|
Fixed income funds comprise a number of positions in diversified fixed income funds that are managed by third-party managers. Underlying investments vary from high-grade corporate bonds to non-investment grade senior secured loans and bonds, but are generally invested in liquid fixed income markets. These funds have regularly published prices.
|
•
|
Equity funds invest in a diversified portfolio of U.S. and international publicly-traded equity securities.
|
•
|
Private equity funds invest primarily in the financial services industry.
|
•
|
CLO equity funds invest primarily in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans.
|
•
|
CLO equities comprise investments in the equity tranches of term-financed securitizations of diversified pools of corporate bank loans.
|
•
|
Private credit funds invest in direct senior or collateralized loans.
|
•
|
Others comprise of various investments including a real estate debt fund that invests primarily in European commercial real estate equity, call options on equities and a fund that provides loans to educational institutions throughout the United States and its territories.
|
|
|
Less than 1 Year
|
|
1-2 years
|
|
2-3 years
|
|
More than 3 years
|
|
Not Eligible/ Restricted
|
|
Total
|
|
Redemption Frequency
|
||||||||||||
Hedge funds
|
|
$
|
343,005
|
|
|
$
|
624,233
|
|
|
$
|
—
|
|
|
$
|
102,600
|
|
|
$
|
52,066
|
|
|
$
|
1,121,904
|
|
|
Monthly to Bi-annually
|
Fixed income funds
|
|
477,935
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,104
|
|
|
481,039
|
|
|
Daily to Quarterly
|
||||||
Equity funds
|
|
410,149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
410,149
|
|
|
Daily to Quarterly
|
||||||
Private equity funds
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329,885
|
|
|
329,885
|
|
|
N/A
|
||||||
CLO equity funds
|
|
60,735
|
|
|
—
|
|
|
26,774
|
|
|
—
|
|
|
—
|
|
|
87,509
|
|
|
Quarterly to Bi-annually
|
||||||
CLO equities
|
|
87,555
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,555
|
|
|
N/A
|
||||||
Other
|
|
34
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,345
|
|
|
6,379
|
|
|
N/A
|
||||||
|
|
$
|
1,379,413
|
|
|
$
|
624,233
|
|
|
$
|
26,774
|
|
|
$
|
102,600
|
|
|
$
|
391,400
|
|
|
$
|
2,524,420
|
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||
|
Investment
|
|
Ownership %
|
|
Carrying Value
|
|
Investment
|
|
Ownership %
|
|
Carrying Value
|
||||||||||
Enhanzed Re
|
$
|
154,050
|
|
|
47.4
|
%
|
|
$
|
182,856
|
|
|
$
|
94,800
|
|
|
47.4
|
%
|
|
$
|
94,800
|
|
Citco
|
50,000
|
|
|
31.9
|
%
|
|
51,742
|
|
|
50,000
|
|
|
31.9
|
%
|
|
50,812
|
|
||||
Monument
|
26,600
|
|
|
26.6
|
%
|
|
60,598
|
|
|
26,600
|
|
|
26.6
|
%
|
|
42,193
|
|
||||
Clear Spring
|
11,210
|
|
|
20.0
|
%
|
|
$
|
10,645
|
|
|
11,210
|
|
|
20.0
|
%
|
|
10,070
|
|
|||
Other
|
24,963
|
|
|
~30%
|
|
|
20,436
|
|
|
15,250
|
|
|
~30%
|
|
|
6,632
|
|
||||
|
$
|
266,823
|
|
|
|
|
$
|
326,277
|
|
|
$
|
197,860
|
|
|
|
|
$
|
204,507
|
|
|
2019
|
|
2018
|
||||
Fixed maturity investments, trading
|
$
|
1,173,345
|
|
|
$
|
1,183,374
|
|
Other assets
|
14,207
|
|
|
14,780
|
|
||
|
$
|
1,187,552
|
|
|
$
|
1,198,154
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Funds held - Directly Managed - Fair Value Option
|
|
Funds held - Directly Managed - Variable Return
|
|
Total
|
|
Funds held - Directly Managed - Fair Value Option
|
|
Funds held - Directly Managed - Variable Return
|
|
Total
|
|
|||||||||||
Fixed maturity investments, at amortized cost
|
$
|
185,859
|
|
|
$
|
940,194
|
|
|
$
|
1,126,053
|
|
|
$
|
179,670
|
|
|
$
|
1,044,377
|
|
|
$
|
1,224,047
|
|
Net unrealized gains (losses):
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Change in fair value - fair value option accounting
|
5,438
|
|
|
—
|
|
|
5,438
|
|
|
(2,733
|
)
|
|
—
|
|
|
(2,733
|
)
|
||||||
Change in fair value - embedded derivative accounting
|
—
|
|
|
41,854
|
|
|
41,854
|
|
|
—
|
|
|
(37,940
|
)
|
|
(37,940
|
)
|
||||||
Fixed maturity investments within funds held - directly managed, at fair value
|
$
|
191,297
|
|
|
$
|
982,048
|
|
|
$
|
1,173,345
|
|
|
$
|
176,937
|
|
|
$
|
1,006,437
|
|
|
$
|
1,183,374
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Fixed maturity investments
|
|
$
|
233,310
|
|
|
$
|
189,000
|
|
|
$
|
144,367
|
|
Short-term investments and cash and cash equivalents
|
|
16,607
|
|
|
12,117
|
|
|
9,314
|
|
|||
Funds held
|
|
19,981
|
|
|
10,041
|
|
|
601
|
|
|||
Funds held – directly managed
|
|
38,173
|
|
|
37,623
|
|
|
32,479
|
|
|||
Investment income from fixed maturities and cash and cash equivalents
|
|
308,071
|
|
|
248,781
|
|
|
186,761
|
|
|||
Equity investments
|
|
16,671
|
|
|
5,397
|
|
|
4,355
|
|
|||
Other investments
|
|
11,792
|
|
|
19,703
|
|
|
14,337
|
|
|||
Life settlements and other
|
|
—
|
|
|
6,511
|
|
|
14,370
|
|
|||
Investment income from equities and other investments
|
|
28,463
|
|
|
31,611
|
|
|
33,062
|
|
|||
Gross investment income
|
|
336,534
|
|
|
280,392
|
|
|
219,823
|
|
|||
Investment expenses
|
|
(15,258
|
)
|
|
(9,721
|
)
|
|
(11,034
|
)
|
|||
Net investment income
|
|
$
|
321,276
|
|
|
$
|
270,671
|
|
|
$
|
208,789
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net realized gains (losses) on sale:
|
|
|
|
|
|
|
||||||
Gross realized gains on fixed maturity securities, available-for-sale securities (1)
|
|
$
|
4,856
|
|
|
$
|
27
|
|
|
$
|
616
|
|
Gross realized losses on fixed maturity securities, available-for-sale securities (1)
|
|
(962
|
)
|
|
(90
|
)
|
|
(125
|
)
|
|||
Net realized gains (losses) on fixed maturity securities, trading
|
|
91,313
|
|
|
(27,646
|
)
|
|
4,695
|
|
|||
Net realized gains (losses) on fixed maturity securities in funds held - directly managed portfolios
|
|
1,495
|
|
|
(3,940
|
)
|
|
(4,219
|
)
|
|||
Net realized gains (losses) on equity investments, trading
|
|
(374
|
)
|
|
4,016
|
|
|
701
|
|
|||
Total net realized gains (losses) on sale
|
|
96,328
|
|
|
(27,633
|
)
|
|
1,668
|
|
|||
Net unrealized gains (losses):
|
|
|
|
|
|
|
||||||
Fixed maturity securities, trading
|
|
349,975
|
|
|
(165,187
|
)
|
|
35,878
|
|
|||
Fixed maturity securities in funds held - directly managed portfolios
|
|
88,053
|
|
|
(46,257
|
)
|
|
33,902
|
|
|||
Equity investments, trading
|
|
55,359
|
|
|
(9,831
|
)
|
|
16,498
|
|
|||
Other investments
|
|
441,636
|
|
|
(163,976
|
)
|
|
102,388
|
|
|||
Total net unrealized gains (losses)
|
|
935,023
|
|
|
(385,251
|
)
|
|
188,666
|
|
|||
Net realized and unrealized gains (losses)
|
|
$
|
1,031,351
|
|
|
$
|
(412,884
|
)
|
|
$
|
190,334
|
|
|
|
2019
|
|
2018
|
||||
Collateral in trust for third party agreements
|
|
$
|
4,104,093
|
|
|
$
|
4,336,752
|
|
Assets on deposit with regulatory authorities
|
|
445,626
|
|
|
579,048
|
|
||
Collateral for secured letter of credit facilities
|
|
133,238
|
|
|
127,841
|
|
||
Funds at Lloyd's (1)
|
|
639,316
|
|
|
354,589
|
|
||
|
|
$
|
5,322,273
|
|
|
$
|
5,398,230
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
|
|
|
Fair Value
|
|
|
|
Fair Value
|
||||||||||||||||
|
|
Gross Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Gross Notional Amount
|
|
Assets
|
|
Liabilities
|
||||||||||||
Foreign exchange forward - AUD
|
|
$
|
64,620
|
|
|
$
|
52
|
|
|
$
|
2,033
|
|
|
$
|
42,258
|
|
|
$
|
1,377
|
|
|
$
|
—
|
|
Foreign exchange forward - EUR
|
|
112,284
|
|
|
246
|
|
|
1,635
|
|
|
66,422
|
|
|
238
|
|
|
300
|
|
||||||
Foreign exchange forward - GBP
|
|
318,387
|
|
|
344
|
|
|
7,784
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total qualifying hedges
|
|
$
|
495,291
|
|
|
$
|
642
|
|
|
$
|
11,452
|
|
|
$
|
108,680
|
|
|
$
|
1,615
|
|
|
$
|
300
|
|
|
|
Amount of Gains (Losses) Deferred in AOCI
|
||||||||||
|
|
2019
|
|
2018
|
|
2017
|
||||||
Foreign exchange forward - AUD
|
|
$
|
(722
|
)
|
|
$
|
3,438
|
|
|
$
|
(1,247
|
)
|
Foreign exchange forward - EUR
|
|
1,817
|
|
|
1,000
|
|
|
—
|
|
|||
Foreign exchange forward - GBP
|
|
(16,423
|
)
|
|
—
|
|
|
—
|
|
|||
Total qualifying hedges
|
|
$
|
(15,328
|
)
|
|
$
|
4,438
|
|
|
$
|
(1,247
|
)
|
|
Amount of Gains (Losses) Deferred in AOCI
|
||||
|
2018
|
|
2017
|
||
Net gains (losses) on qualifying non-derivative hedges
|
3,144
|
|
|
(9,375
|
)
|
|
|
December 31, 2019
|
|
2019
|
||||||||||||
|
|
|
|
Fair Value
|
|
|
||||||||||
|
|
Gross Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Gains (losses) on non-qualifying hedges charged to earnings
|
||||||||
Foreign exchange forward - AUD
|
|
$
|
913
|
|
|
$
|
839
|
|
|
$
|
892
|
|
|
$
|
1,523
|
|
Foreign exchange forward - CAD
|
|
66,266
|
|
|
10
|
|
|
1,482
|
|
|
(2,079
|
)
|
||||
Foreign exchange forward - EUR
|
|
74,444
|
|
|
507
|
|
|
1,440
|
|
|
1,759
|
|
||||
Foreign exchange forward - GBP
|
|
11,940
|
|
|
13
|
|
|
292
|
|
|
12,004
|
|
||||
Total non-qualifying hedges
|
|
$
|
153,563
|
|
|
$
|
1,369
|
|
|
$
|
4,106
|
|
|
$
|
13,207
|
|
|
|
December 31, 2018
|
|
2018
|
||||||||||||
|
|
|
|
Fair Value
|
|
|
||||||||||
|
|
Gross Notional Amount
|
|
Assets
|
|
Liabilities
|
|
Gains (losses) on non-qualifying hedges charged to earnings
|
||||||||
Foreign exchange forward - AUD
|
|
$
|
45,427
|
|
|
$
|
1,952
|
|
|
$
|
310
|
|
|
$
|
4,958
|
|
Foreign exchange forward - CAD
|
|
55,050
|
|
|
1,441
|
|
|
—
|
|
|
9,311
|
|
||||
Foreign exchange forward - EUR
|
|
54,282
|
|
|
139
|
|
|
301
|
|
|
2,296
|
|
||||
Foreign exchange forward - GBP
|
|
256,959
|
|
|
1,554
|
|
|
72
|
|
|
15,078
|
|
||||
Total non-qualifying hedges
|
|
$
|
411,718
|
|
|
$
|
5,086
|
|
|
$
|
683
|
|
|
$
|
31,643
|
|
|
|
2019
|
||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Total
|
||||||||
Recoverable from reinsurers on unpaid:
|
|
|
|
|
|
|
|
|
||||||||
Outstanding losses
|
|
$
|
972,293
|
|
|
$
|
9,011
|
|
|
$
|
328,009
|
|
|
$
|
1,309,313
|
|
IBNR
|
|
673,059
|
|
|
19,286
|
|
|
211,404
|
|
|
903,749
|
|
||||
Fair value adjustments - acquired companies
|
|
(13,652
|
)
|
|
519
|
|
|
(2,122
|
)
|
|
(15,255
|
)
|
||||
Fair value adjustments - fair value option
|
|
(88,086
|
)
|
|
—
|
|
|
—
|
|
|
(88,086
|
)
|
||||
Total reinsurance reserves recoverable
|
|
1,543,614
|
|
|
28,816
|
|
|
537,291
|
|
|
2,109,721
|
|
||||
Paid losses recoverable
|
|
181,375
|
|
|
1,541
|
|
|
87,253
|
|
|
270,169
|
|
||||
Total
|
|
$
|
1,724,989
|
|
|
$
|
30,357
|
|
|
$
|
624,544
|
|
|
$
|
2,379,890
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Consolidated Balance Sheet:
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance balances recoverable on paid and unpaid losses
|
|
$
|
1,029,471
|
|
|
$
|
30,357
|
|
|
$
|
624,544
|
|
|
$
|
1,684,372
|
|
Reinsurance balances recoverable on paid and unpaid losses - fair value option
|
|
695,518
|
|
|
—
|
|
|
—
|
|
|
695,518
|
|
||||
Total
|
|
$
|
1,724,989
|
|
|
$
|
30,357
|
|
|
$
|
624,544
|
|
|
$
|
2,379,890
|
|
|
|
2018
|
||||||||||||||
|
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Total
|
||||||||
Recoverable from reinsurers on unpaid:
|
|
|
|
|
|
|
|
|
||||||||
Outstanding losses
|
|
$
|
901,772
|
|
|
$
|
18,891
|
|
|
$
|
263,065
|
|
|
$
|
1,183,728
|
|
IBNR
|
|
609,434
|
|
|
19,247
|
|
|
201,784
|
|
|
830,465
|
|
||||
Fair value adjustments - acquired companies
|
|
(14,344
|
)
|
|
630
|
|
|
(1,899
|
)
|
|
(15,613
|
)
|
||||
Fair value adjustments - fair value option
|
|
(130,739
|
)
|
|
—
|
|
|
—
|
|
|
(130,739
|
)
|
||||
Total reinsurance reserves recoverable
|
|
1,366,123
|
|
|
38,768
|
|
|
462,950
|
|
|
1,867,841
|
|
||||
Paid losses recoverable
|
|
138,265
|
|
|
(256
|
)
|
|
23,813
|
|
|
161,822
|
|
||||
Total
|
|
$
|
1,504,388
|
|
|
$
|
38,512
|
|
|
$
|
486,763
|
|
|
$
|
2,029,663
|
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation to Consolidated Balance Sheet:
|
|
|
|
|
|
|
|
|
||||||||
Reinsurance balances recoverable on paid and unpaid losses
|
|
$
|
764,797
|
|
|
$
|
38,512
|
|
|
$
|
486,763
|
|
|
$
|
1,290,072
|
|
Reinsurance balances recoverable on paid and unpaid losses - fair value option
|
|
739,591
|
|
|
—
|
|
|
—
|
|
|
739,591
|
|
||||
Total
|
|
$
|
1,504,388
|
|
|
$
|
38,512
|
|
|
$
|
486,763
|
|
|
$
|
2,029,663
|
|
|
December 31, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||||||||||||
|
Non-life
Run-off |
|
Atrium
|
|
StarStone
|
|
Total
|
|
% of
Total |
|
Non-life
Run-off |
|
Atrium
|
|
StarStone
|
|
Total
|
|
% of
Total |
||||||||||||||||||
Top ten reinsurers
|
$
|
1,154,110
|
|
|
$
|
22,051
|
|
|
$
|
388,171
|
|
|
$
|
1,564,332
|
|
|
65.7
|
%
|
|
$
|
1,124,079
|
|
|
$
|
25,239
|
|
|
$
|
263,192
|
|
|
$
|
1,412,510
|
|
|
69.6
|
%
|
Other reinsurers > $1 million
|
551,636
|
|
|
7,761
|
|
|
233,871
|
|
|
793,268
|
|
|
33.4
|
%
|
|
364,098
|
|
|
12,091
|
|
|
220,123
|
|
|
596,312
|
|
|
29.4
|
%
|
||||||||
Other reinsurers < $1 million
|
19,243
|
|
|
545
|
|
|
2,502
|
|
|
22,290
|
|
|
0.9
|
%
|
|
16,211
|
|
|
1,182
|
|
|
3,448
|
|
|
20,841
|
|
|
1.0
|
%
|
||||||||
Total
|
$
|
1,724,989
|
|
|
$
|
30,357
|
|
|
$
|
624,544
|
|
|
$
|
2,379,890
|
|
|
100.0
|
%
|
|
$
|
1,504,388
|
|
|
$
|
38,512
|
|
|
$
|
486,763
|
|
|
$
|
2,029,663
|
|
|
100.0
|
%
|
|
December 31, 2019
|
|
|
December 31, 2018
|
|
||
Information regarding top ten reinsurers:
|
|
|
|
||||
Number of top 10 reinsurers rated A- or better
|
8
|
|
|
7
|
|
||
Number of top 10 non-rated reinsurers (1)
|
2
|
|
|
3
|
|
||
|
|
|
|
||||
Recoverables rated A- or better in top 10
|
$
|
1,292,207
|
|
|
$
|
1,096,272
|
|
Collaterized non-rated reinsurers recoverables in top 10 (1)
|
272,125
|
|
|
316,238
|
|
||
|
$
|
1,564,332
|
|
|
$
|
1,412,510
|
|
|
|
|
|
||||
Single reinsurers that represent 10% or more of total reinsurance balance recoverables as of December 31, 2019:
|
|
|
|
||||
|
|
|
|
||||
Hannover Ruck SE (2)
|
$
|
261,295
|
|
|
$
|
279,723
|
|
Lloyd's Syndicates (3)
|
$
|
411,030
|
|
|
$
|
334,509
|
|
|
2019
|
|
2018
|
||||||||||||||||||||||||||
|
Gross
|
|
Provisions for Bad Debt
|
|
Net
|
|
Provisions as a
% of Gross |
|
Gross
|
|
Provisions for Bad Debt
|
|
Net
|
|
Provisions as a
% of Gross |
||||||||||||||
Reinsurers rated A- or above
|
$
|
1,904,268
|
|
|
$
|
43,427
|
|
|
$
|
1,860,841
|
|
|
2.3
|
%
|
|
$
|
1,612,464
|
|
|
$
|
51,519
|
|
|
$
|
1,560,945
|
|
|
3.2
|
%
|
Reinsurers rated below A-, secured
|
487,608
|
|
|
—
|
|
|
487,608
|
|
|
—
|
%
|
|
430,852
|
|
|
—
|
|
|
430,852
|
|
|
—
|
%
|
||||||
Reinsurers rated below A-, unsecured
|
135,653
|
|
|
104,212
|
|
|
31,441
|
|
|
76.8
|
%
|
|
143,079
|
|
|
105,213
|
|
|
37,866
|
|
|
73.5
|
%
|
||||||
Total
|
$
|
2,527,529
|
|
|
$
|
147,639
|
|
|
$
|
2,379,890
|
|
|
5.8
|
%
|
|
$
|
2,186,395
|
|
|
$
|
156,732
|
|
|
$
|
2,029,663
|
|
|
7.2
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Beginning carrying value
|
$
|
86,585
|
|
|
$
|
80,192
|
|
|
$
|
94,551
|
|
Recorded during the year
|
224,504
|
|
|
20,174
|
|
|
—
|
|
|||
Amortization
|
(38,627
|
)
|
|
(13,781
|
)
|
|
(14,359
|
)
|
|||
Ending carrying value
|
$
|
272,462
|
|
|
$
|
86,585
|
|
|
$
|
80,192
|
|
|
2019
|
||||||||||||||||||
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Outstanding losses
|
$
|
4,407,082
|
|
|
$
|
89,141
|
|
|
$
|
888,794
|
|
|
$
|
9,512
|
|
|
$
|
5,394,529
|
|
IBNR
|
3,945,407
|
|
|
136,543
|
|
|
962,353
|
|
|
13,565
|
|
|
5,057,868
|
|
|||||
Fair value adjustments - acquired companies
|
(170,689
|
)
|
|
3,700
|
|
|
(522
|
)
|
|
—
|
|
|
(167,511
|
)
|
|||||
Fair value adjustments - fair value option
|
(217,933
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(217,933
|
)
|
|||||
ULAE
|
331,494
|
|
|
2,288
|
|
|
28,503
|
|
|
—
|
|
|
362,285
|
|
|||||
Total
|
$
|
8,295,361
|
|
|
$
|
231,672
|
|
|
$
|
1,879,128
|
|
|
$
|
23,077
|
|
|
$
|
10,429,238
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation to Consolidated Balance Sheet:
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses
|
$
|
5,674,239
|
|
|
$
|
231,672
|
|
|
$
|
1,879,128
|
|
|
$
|
23,077
|
|
|
$
|
7,808,116
|
|
Losses and loss adjustment expenses, at fair value
|
2,621,122
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,621,122
|
|
|||||
Total
|
$
|
8,295,361
|
|
|
$
|
231,672
|
|
|
$
|
1,879,128
|
|
|
$
|
23,077
|
|
|
$
|
10,429,238
|
|
|
2018
|
||||||||||||||||||
|
Non-life
Run-off |
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Outstanding losses
|
$
|
4,271,769
|
|
|
$
|
94,885
|
|
|
$
|
796,194
|
|
|
$
|
6,052
|
|
|
$
|
5,168,900
|
|
IBNR
|
3,527,767
|
|
|
140,521
|
|
|
787,894
|
|
|
12,809
|
|
|
4,468,991
|
|
|||||
Fair value adjustments- acquired companies
|
(217,527
|
)
|
|
3,476
|
|
|
(467
|
)
|
|
—
|
|
|
(214,518
|
)
|
|||||
Fair value adjustments - fair value option
|
(374,752
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(374,752
|
)
|
|||||
ULAE
|
333,405
|
|
|
2,402
|
|
|
25,076
|
|
|
—
|
|
|
360,883
|
|
|||||
Total
|
$
|
7,540,662
|
|
|
$
|
241,284
|
|
|
$
|
1,608,697
|
|
|
$
|
18,861
|
|
|
$
|
9,409,504
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reconciliation to Consolidated Balance Sheet:
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and loss adjustment expenses
|
$
|
4,666,607
|
|
|
$
|
241,284
|
|
|
$
|
1,608,697
|
|
|
$
|
18,861
|
|
|
$
|
6,535,449
|
|
Losses and loss adjustment expenses, at fair value
|
2,874,055
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,874,055
|
|
|||||
Total
|
$
|
7,540,662
|
|
|
$
|
241,284
|
|
|
$
|
1,608,697
|
|
|
$
|
18,861
|
|
|
$
|
9,409,504
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as at January 1
|
$
|
9,409,504
|
|
|
$
|
7,398,088
|
|
|
$
|
5,987,867
|
|
Less: reinsurance reserves recoverable
|
1,867,841
|
|
|
1,870,033
|
|
|
1,388,193
|
|
|||
Less: deferred charge assets on retroactive reinsurance
|
86,585
|
|
|
80,192
|
|
|
94,551
|
|
|||
Net balance as at January 1
|
7,455,078
|
|
|
5,447,863
|
|
|
4,505,123
|
|
|||
Net incurred losses and LAE:
|
|
|
|
|
|
|
|||||
Current period
|
823,658
|
|
|
689,782
|
|
|
437,853
|
|
|||
Prior periods
|
48,917
|
|
|
(235,757
|
)
|
|
(244,302
|
)
|
|||
Total net incurred losses and LAE
|
872,575
|
|
|
454,025
|
|
|
193,551
|
|
|||
Net paid losses:
|
|
|
|
|
|
|
|||||
Current period
|
(200,264
|
)
|
|
(189,560
|
)
|
|
(82,273
|
)
|
|||
Prior periods
|
(1,669,004
|
)
|
|
(1,194,985
|
)
|
|
(862,921
|
)
|
|||
Total net paid losses
|
(1,869,268
|
)
|
|
(1,384,545
|
)
|
|
(945,194
|
)
|
|||
Effect of exchange rate movement
|
48,695
|
|
|
(145,243
|
)
|
|
158,429
|
|
|||
Acquired on purchase of subsidiaries
|
686
|
|
|
1,310,874
|
|
|
10,251
|
|
|||
Assumed business
|
1,586,307
|
|
|
1,772,104
|
|
|
1,525,703
|
|
|||
Ceded business
|
(47,018
|
)
|
|
—
|
|
|
—
|
|
|||
Net balance as at December 31
|
8,047,055
|
|
|
7,455,078
|
|
|
5,447,863
|
|
|||
Plus: reinsurance reserves recoverable
|
2,109,721
|
|
|
1,867,841
|
|
|
1,870,033
|
|
|||
Plus: deferred charge assets on retroactive reinsurance
|
272,462
|
|
|
86,585
|
|
|
80,192
|
|
|||
Balance as at December 31
|
$
|
10,429,238
|
|
|
$
|
9,409,504
|
|
|
$
|
7,398,088
|
|
|
2019
|
||||||||||||||||||
|
Non-life
Run-off |
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Net losses paid
|
$
|
1,247,624
|
|
|
$
|
78,189
|
|
|
$
|
531,633
|
|
|
$
|
11,822
|
|
|
$
|
1,869,268
|
|
Net change in case and LAE reserves
|
(530,891
|
)
|
|
3,534
|
|
|
25,967
|
|
|
3,460
|
|
|
(497,930
|
)
|
|||||
Net change in IBNR reserves
|
(813,582
|
)
|
|
(4,782
|
)
|
|
166,427
|
|
|
756
|
|
|
(651,181
|
)
|
|||||
Increase (reduction) in estimates of net ultimate losses
|
(96,849
|
)
|
|
76,941
|
|
|
724,027
|
|
|
16,038
|
|
|
720,157
|
|
|||||
Increase (reduction) in provisions for unallocated LAE
|
(57,404
|
)
|
|
—
|
|
|
3,441
|
|
|
—
|
|
|
(53,963
|
)
|
|||||
Amortization of deferred charge assets
|
38,627
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,627
|
|
|||||
Amortization of fair value adjustments
|
50,070
|
|
|
335
|
|
|
168
|
|
|
—
|
|
|
50,573
|
|
|||||
Changes in fair value - fair value option
|
117,181
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
117,181
|
|
|||||
Net incurred losses and LAE
|
$
|
51,625
|
|
|
$
|
77,276
|
|
|
$
|
727,636
|
|
|
$
|
16,038
|
|
|
$
|
872,575
|
|
|
2018
|
||||||||||||||||||
|
Non-life
Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Net losses paid
|
$
|
838,817
|
|
|
$
|
64,506
|
|
|
$
|
477,130
|
|
|
$
|
4,092
|
|
|
$
|
1,384,545
|
|
Net change in case and LAE reserves
|
(547,420
|
)
|
|
6,331
|
|
|
75,887
|
|
|
4,808
|
|
|
(460,394
|
)
|
|||||
Net change in IBNR reserves
|
(565,385
|
)
|
|
4,091
|
|
|
113,879
|
|
|
7,999
|
|
|
(439,416
|
)
|
|||||
Increase (reduction) in estimates of net ultimate losses
|
(273,988
|
)
|
|
74,928
|
|
|
666,896
|
|
|
16,899
|
|
|
484,735
|
|
|||||
Increase (reduction) in provisions for unallocated LAE
|
(65,401
|
)
|
|
—
|
|
|
6,753
|
|
|
—
|
|
|
(58,648
|
)
|
|||||
Amortization of deferred charge assets
|
13,781
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,781
|
|
|||||
Amortization of fair value adjustments
|
12,877
|
|
|
(5,118
|
)
|
|
(266
|
)
|
|
—
|
|
|
7,493
|
|
|||||
Changes in fair value - fair value option
|
6,664
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,664
|
|
|||||
Net incurred losses and LAE
|
$
|
(306,067
|
)
|
|
$
|
69,810
|
|
|
$
|
673,383
|
|
|
$
|
16,899
|
|
|
$
|
454,025
|
|
|
2017
|
||||||||||||||
|
Non-life
Run-off |
|
Atrium
|
|
StarStone
|
|
Total
|
||||||||
Net losses paid
|
$
|
581,723
|
|
|
$
|
55,678
|
|
|
$
|
307,793
|
|
|
$
|
945,194
|
|
Net change in case and LAE reserves
|
(381,053
|
)
|
|
8,338
|
|
|
31,685
|
|
|
(341,030
|
)
|
||||
Net change in IBNR reserves
|
(390,727
|
)
|
|
7,679
|
|
|
(23,540
|
)
|
|
(406,588
|
)
|
||||
Increase (reduction) in estimates of net ultimate losses
|
(190,057
|
)
|
|
71,695
|
|
|
315,938
|
|
|
197,576
|
|
||||
Increase (reduction) in provisions for bad debt
|
(1,536
|
)
|
|
159
|
|
|
—
|
|
|
(1,377
|
)
|
||||
Increase (reduction) in provisions for unallocated LAE
|
(53,810
|
)
|
|
285
|
|
|
(187
|
)
|
|
(53,712
|
)
|
||||
Amortization of deferred charge assets
|
14,359
|
|
|
—
|
|
|
—
|
|
|
14,359
|
|
||||
Amortization of fair value adjustments
|
10,114
|
|
|
(2,720
|
)
|
|
(945
|
)
|
|
6,449
|
|
||||
Changes in fair value - fair value option
|
30,256
|
|
|
—
|
|
|
—
|
|
|
30,256
|
|
||||
Net incurred losses and LAE
|
$
|
(190,674
|
)
|
|
$
|
69,419
|
|
|
$
|
314,806
|
|
|
$
|
193,551
|
|
•
|
Non-Life Run-off - Presented by acquisition year, if significant, and further disaggregated, if significant, by line of business within that acquisition year. The disaggregated lines of business include General Casualty, Workers’ Compensation, Marine, Aviation and Transportation, Professional Indemnity / Directors & Officers and Motor.
|
•
|
Atrium - The loss development disclosures for our Atrium segment have not been disaggregated further by line of business as the segment comprised approximately only 2% of our total consolidated liability for losses and LAE as of December 31, 2019 and was, therefore, not considered material for further disaggregation.
|
•
|
StarStone - All the lines of business related to the StarStone segment have been included within the loss development disclosures below, namely, Casualty, Marine, Property, Aerospace and Workers’ Compensation.
|
•
|
The incurred loss development tables include both reported case reserves and IBNR liabilities, as well as cumulative paid losses;
|
•
|
Both the incurred and cumulative paid loss development tables include allocated LAE (i.e. claims handling costs allocated to specific individual claims) but exclude unallocated LAE (i.e. the costs associated with internal claims staff and third party administrators as well as consultants that cannot be allocated to specific individual claims);
|
•
|
The fair value adjustments related to business acquisitions are excluded from the loss development tables, however the undiscounted incurred losses, cumulative paid losses and allocated LAE related to business acquisitions are included in the loss development tables;
|
•
|
The fair value adjustments related to retroactive reinsurance agreements for which we have elected the fair value option are excluded from the loss development tables, however the undiscounted incurred losses, cumulative paid losses and allocated LAE related to retroactive reinsurance agreements for which we have elected the fair value option are included in the loss development tables;
|
•
|
The amounts relating to the amortization of deferred charge assets are excluded from the loss development tables;
|
•
|
The amounts relating to the increase (reduction) in provisions for unallocated LAE are excluded from the loss development tables;
|
•
|
In the incurred loss development tables, the incurred effect of agreeing a commutation or policy buyback is included in the period in which the commutation or policy buyback is contractually agreed. We reflect the net incurred loss development arising from a commutation or policy buyback in the fiscal year in which a commutation or policy buyback is contractually agreed, and the net incurred loss development is allocated to the appropriate accident year. The claim will generally have been adjusted throughout its lifetime and the amounts recorded in prior years (supplementary information) remain unchanged in our tables, such that the incurred amount that we recognize in the year in which a commutation or policy buyback is contractually agreed represents the effect of the commutation or policy buyback settlement compared to the carried net loss and LAE reserve balance in the prior year. We do not recast prior years to remove commuted or bought back
|
•
|
In the cumulative paid losses tables, we reflect the amount of the commutation or policy buyback settlements in the year in which they are actually paid or received, and the net payment is allocated to the appropriate accident year. The claim or recoverable may have recorded payments or receipts throughout its lifetime and amounts recorded in prior years (supplementary information) remain unchanged in our tables, such that the amounts paid or received that we recognize in the year in which a commutation or policy buyback is paid or received represents the amount actually paid or received. We do not recast prior years to remove payments or receipts related to commutations or policy buybacks, as we consider commutations and policy buybacks a key component of our business and reflective of our ability to effectively manage acquired losses and LAE liabilities. Payments relating to commutations and policy buybacks are not adjusted in future years but the payments remain in our total cumulative paid losses;
|
•
|
The amounts included within the loss development tables for the years ended December 31, 2010 through to December 31, 2018 (April 1, 2014 through to December 31, 2018 in the case of StarStone since its date of acquisition), as well as the historical average annual percentage payout ratios as of December 31, 2019, are presented as supplementary information and are therefore unaudited;
|
•
|
All data presented within the loss development tables is net of reinsurance recoveries, excluding provisions for uncollectible reinsurance recoverables;
|
•
|
All data presented within the loss development tables is net of intercompany activity, including the Intra-Group Cessions within the StarStone segment. On May 14, 2018, we completed the acquisition of KaylaRe and subsequently eliminated all the related intercompany balances. In the loss development disclosures provided in our Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2017, the StarStone loss triangles were presented net of the external reinsurance provided by KaylaRe since it was not a consolidated subsidiary at that time. However, after the acquisition of KaylaRe in May 2018, the reinsurance arrangement with StarStone became an intercompany transaction and was eliminated on consolidation. In addition, the StarStone loss development disclosures relating to the prior years (supplementary information) were retrospectively recast as if KaylaRe had always been a consolidated subsidiary, to allow for comparability between fiscal years;
|
•
|
The IBNR reserves included within each incurred loss development table by accident year, reflect the net IBNR recorded as of December 31, 2019, including expected development on reported losses;
|
•
|
For the Non-life Run-off segment loss development tables, all information for both acquisitions and retroactive reinsurance agreements is presented prospectively. As the reserves are effectively re-underwritten at the date the reserves are acquired or assumed, we believe that the historical loss development prior to being acquired is not relevant to our own experience managing these reserves. In addition, the information required to prepare the loss development disclosures on a retrospective basis is not always available to us and a mixed approach would result in loss development tables that are not entirely reflective of the actual loss development;
|
•
|
For the Non-life Run-off segment we have also presented the net incurred and paid losses and ALAE information by calendar year as well as IBNR and claim counts for accident years older than 10 years on a single row within the loss development tables. This presentation differs from the typical approach where only the net outstanding losses and LAE reserves are presented as a reconciling item at the bottom of the loss development tables. The additional detailed disclosures are provided on a voluntary basis and the inclusion of the disclosures is to provide additional information to the users of our financial statements and to also enable the reconciliation of our total loss reserves by acquisition year and by significant line of business.
|
•
|
For the StarStone segment loss development tables, all information has been presented on a prospective basis from the date of our acquisition of StarStone, which was effective on April 1, 2014. Providing pre-acquisition incurred and paid losses by accident year for years prior to 2014 was determined to be impracticable due to significant data limitations; and
|
•
|
For the Atrium segment loss development tables, all information has been presented on a retrospective basis.
|
•
|
Non-Life Run-off - The claim frequency information for the exposures included within our Non-life Run-off lines of business includes direct and assumed open and closed claims by accident year at the claimant level. Reported claims that are closed without a payment are included within our cumulative number of reported claims because we typically incur claim adjustment expenses on them prior to their closure. The claim count numbers exclude counts related to claims within policy deductibles where the insured is responsible for the payment of losses within the deductible layer. Individual claim counts related to certain assumed reinsurance contracts such as excess-of-loss and quota share treaties are not available to us, and the losses arising from these treaties have been treated as single claims for the purposes of determining claim counts. Therefore, each treaty year within the reinsurance contract is deemed a single claim because the detailed underlying individual claim information is generally not reported to us by our cedents; and
|
•
|
StarStone and Atrium - The claim frequency information is determined at the claimant level for the exposures within the lines of business related to these segments. Our claims system assigns a unique claim identifier to each reported claim we receive. Each unique claim identifier is deemed to be a single claim, irrespective of whether the claim remains open or has been closed with or without payment. For certain insurance facilities and business produced or managed by managing general agents, coverholders and third party administrators where the underlying claims data is reported to us in an aggregated format, the information necessary to provide cumulative claims frequency is not available. In such cases, we typically record a “block” claim in our system. This also applies to a small amount of assumed reinsurance business that we write where, similarly, the underlying claims data is reported to us in an aggregated format. In such instances, each assumed reinsurance contract is deemed a single claim.
|
•
|
Claim counts are presented only on a reported and not on an ultimate basis. Therefore, reported claim counts include open claims which have outstanding reserves but exclude IBNR claims. As such the reported claims are consistent with reported losses, which can be calculated by subtracting IBNR losses from incurred losses. However, the reported claim counts are inconsistent with the losses in the incurred loss development tables, which include IBNR losses, and to losses in the paid loss development tables, which exclude outstanding reserves;
|
•
|
Reported claim counts have not been adjusted for ceded reinsurance, which may distort any measures of frequency or severity;
|
•
|
For lines of business that have a mix of primary and excess layer exposures, such as our general casualty and workers’ compensation lines of business, the reported claim counts may fluctuate from period to period between exposure layers, thereby distorting any measure of frequency and severity; and
|
•
|
The use of our reported claim frequency information to project ultimate loss payouts by disaggregated disclosure category or line of business may not be as meaningful as claim count information related to individual contracts at a more granular level.
|
•
|
Non-life Run-off - The annual percentage payout disclosures for our Non-life Run-off segment are based on the payout of incurred claims by age, net of reinsurance. For our Non-life Run-off segment, claims aging reflects the number of years that have lapsed since the original acquisition of the related net liability for losses and LAE reserves to the date the claim is paid. There may be occasions where, due to our claims management strategies (including commutations and policy buy-backs) or due to the timing of claims payments relative to the associated recovery, the cash received from reinsurance recoveries is greater than the cash paid out to our claimants, (i.e. a net recovery rather than a net payout for a particular calendar year), thereby resulting in a negative annual percentage payout for that calendar year.
|
•
|
Atrium and StarStone - The average annual percentage payout disclosures for our Atrium and StarStone segments are based on the payout of incurred claims by age, net of reinsurance.
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as at January 1
|
$
|
7,540,662
|
|
|
$
|
5,949,472
|
|
|
$
|
4,716,363
|
|
Less: reinsurance reserves recoverable
|
1,366,123
|
|
|
1,377,485
|
|
|
1,000,953
|
|
|||
Less: deferred charge assets on retroactive reinsurance
|
86,585
|
|
|
80,192
|
|
|
94,551
|
|
|||
Net balance as at January 1
|
6,087,954
|
|
|
4,491,795
|
|
|
3,620,859
|
|
|||
Net incurred losses and LAE:
|
|
|
|
|
|
||||||
Current period
|
123,559
|
|
|
12,451
|
|
|
5,866
|
|
|||
Prior periods
|
(71,934
|
)
|
|
(318,518
|
)
|
|
(196,540
|
)
|
|||
Total net incurred losses and LAE
|
51,625
|
|
|
(306,067
|
)
|
|
(190,674
|
)
|
|||
Net paid losses:
|
|
|
|
|
|
||||||
Current period
|
(64,820
|
)
|
|
(5
|
)
|
|
(2,835
|
)
|
|||
Prior periods
|
(1,182,804
|
)
|
|
(838,812
|
)
|
|
(578,888
|
)
|
|||
Total net paid losses
|
(1,247,624
|
)
|
|
(838,817
|
)
|
|
(581,723
|
)
|
|||
Effect of exchange rate movement
|
47,355
|
|
|
(132,632
|
)
|
|
138,772
|
|
|||
Acquired on purchase of subsidiaries
|
686
|
|
|
1,111,839
|
|
|
10,251
|
|
|||
Assumed business
|
1,586,307
|
|
|
1,761,836
|
|
|
1,494,310
|
|
|||
Ceded business
|
(47,018
|
)
|
|
—
|
|
|
—
|
|
|||
Net balance as at December 31
|
6,479,285
|
|
|
6,087,954
|
|
|
4,491,795
|
|
|||
Plus: reinsurance reserves recoverable
|
1,543,614
|
|
|
1,366,123
|
|
|
1,377,485
|
|
|||
Plus: deferred charge assets on retroactive reinsurance
|
272,462
|
|
|
86,585
|
|
|
80,192
|
|
|||
Balance as at December 31
|
$
|
8,295,361
|
|
|
$
|
7,540,662
|
|
|
$
|
5,949,472
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
|
Prior
Period
|
|
Current
Period
|
|
Total
|
|
Prior
Period
|
|
Current
Period
|
|
Total
|
|
Prior
Period
|
|
Current
Period
|
|
Total
|
||||||||||||||||||
Net losses paid
|
$
|
1,182,804
|
|
|
$
|
64,820
|
|
|
$
|
1,247,624
|
|
|
$
|
838,812
|
|
|
$
|
5
|
|
|
$
|
838,817
|
|
|
$
|
578,888
|
|
|
$
|
2,835
|
|
|
$
|
581,723
|
|
Net change in case and LAE reserves
|
(553,996
|
)
|
|
23,105
|
|
|
(530,891
|
)
|
|
(552,124
|
)
|
|
4,704
|
|
|
(547,420
|
)
|
|
(381,450
|
)
|
|
397
|
|
|
(381,053
|
)
|
|||||||||
Net change in IBNR reserves
|
(848,776
|
)
|
|
35,194
|
|
|
(813,582
|
)
|
|
(573,127
|
)
|
|
7,742
|
|
|
(565,385
|
)
|
|
(393,100
|
)
|
|
2,373
|
|
|
(390,727
|
)
|
|||||||||
Increase (reduction) in estimates of net ultimate losses
|
(219,968
|
)
|
|
123,119
|
|
|
(96,849
|
)
|
|
(286,439
|
)
|
|
12,451
|
|
|
(273,988
|
)
|
|
(195,662
|
)
|
|
5,605
|
|
|
(190,057
|
)
|
|||||||||
Reduction in provisions for bad debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,536
|
)
|
|
—
|
|
|
(1,536
|
)
|
|||||||||
Increase (reduction) in provisions for unallocated LAE
|
(57,844
|
)
|
|
440
|
|
|
(57,404
|
)
|
|
(65,401
|
)
|
|
—
|
|
|
(65,401
|
)
|
|
(54,071
|
)
|
|
261
|
|
|
(53,810
|
)
|
|||||||||
Amortization of deferred charge assets
|
38,627
|
|
|
—
|
|
|
38,627
|
|
|
13,781
|
|
|
—
|
|
|
13,781
|
|
|
14,359
|
|
|
—
|
|
|
14,359
|
|
|||||||||
Amortization of fair value adjustments
|
50,070
|
|
|
—
|
|
|
50,070
|
|
|
12,877
|
|
|
—
|
|
|
12,877
|
|
|
10,114
|
|
|
—
|
|
|
10,114
|
|
|||||||||
Changes in fair value - fair value option
|
117,181
|
|
|
—
|
|
|
117,181
|
|
|
6,664
|
|
|
—
|
|
|
6,664
|
|
|
30,256
|
|
|
—
|
|
|
30,256
|
|
|||||||||
Net incurred losses and LAE
|
$
|
(71,934
|
)
|
|
$
|
123,559
|
|
|
$
|
51,625
|
|
|
$
|
(318,518
|
)
|
|
$
|
12,451
|
|
|
$
|
(306,067
|
)
|
|
$
|
(196,540
|
)
|
|
$
|
5,866
|
|
|
$
|
(190,674
|
)
|
|
Net losses paid
|
|
Net change in case and LAE reserves
|
|
Net change in IBNR reserves
|
|
Increase (reduction) in estimates of net ultimate losses
|
||||||||
Asbestos
|
$
|
118,557
|
|
|
$
|
35,003
|
|
|
$
|
(146,749
|
)
|
|
$
|
6,811
|
|
Environmental
|
16,899
|
|
|
13,796
|
|
|
(15,707
|
)
|
|
14,988
|
|
||||
General Casualty
|
175,044
|
|
|
(89,968
|
)
|
|
(91,818
|
)
|
|
(6,742
|
)
|
||||
Workers' Compensation
|
208,961
|
|
|
(156,435
|
)
|
|
(188,944
|
)
|
|
(136,418
|
)
|
||||
Marine, aviation and transit
|
82,058
|
|
|
(77,958
|
)
|
|
(24,508
|
)
|
|
(20,408
|
)
|
||||
Construction defect
|
32,078
|
|
|
(8,313
|
)
|
|
(25,025
|
)
|
|
(1,260
|
)
|
||||
Professional indemnity/ Directors & Officers
|
103,413
|
|
|
(36,986
|
)
|
|
(104,984
|
)
|
|
(38,557
|
)
|
||||
Motor
|
276,563
|
|
|
(134,127
|
)
|
|
(179,887
|
)
|
|
(37,451
|
)
|
||||
Property
|
94,093
|
|
|
(73,259
|
)
|
|
(7,358
|
)
|
|
13,476
|
|
||||
All Other
|
75,138
|
|
|
(25,749
|
)
|
|
(63,796
|
)
|
|
(14,407
|
)
|
||||
Total
|
$
|
1,182,804
|
|
|
$
|
(553,996
|
)
|
|
$
|
(848,776
|
)
|
|
$
|
(219,968
|
)
|
|
Net losses paid
|
|
Net change in case and LAE reserves
|
|
Net change in IBNR reserves
|
|
Increase (reduction) in estimates of net ultimate losses
|
||||||||
Asbestos
|
$
|
108,248
|
|
|
$
|
(21,535
|
)
|
|
$
|
(151,662
|
)
|
|
$
|
(64,949
|
)
|
Environmental
|
21,273
|
|
|
479
|
|
|
(7,599
|
)
|
|
14,153
|
|
||||
General Casualty
|
141,624
|
|
|
(115,240
|
)
|
|
(60,828
|
)
|
|
(34,444
|
)
|
||||
Workers' Compensation
|
139,226
|
|
|
(178,138
|
)
|
|
(115,648
|
)
|
|
(154,560
|
)
|
||||
Marine, aviation and transit
|
67,831
|
|
|
(44,200
|
)
|
|
(21,188
|
)
|
|
2,443
|
|
||||
Construction defect
|
22,182
|
|
|
(7,257
|
)
|
|
(33,146
|
)
|
|
(18,221
|
)
|
||||
Professional indemnity/ Directors & Officers
|
161,797
|
|
|
(11,159
|
)
|
|
(130,957
|
)
|
|
19,681
|
|
||||
Motor
|
104,182
|
|
|
(109,962
|
)
|
|
(34,215
|
)
|
|
(39,995
|
)
|
||||
Property
|
22,178
|
|
|
(24,271
|
)
|
|
(11,497
|
)
|
|
(13,590
|
)
|
||||
All Other
|
50,271
|
|
|
(40,841
|
)
|
|
(6,387
|
)
|
|
3,043
|
|
||||
Total
|
$
|
838,812
|
|
|
$
|
(552,124
|
)
|
|
$
|
(573,127
|
)
|
|
$
|
(286,439
|
)
|
|
Net losses paid
|
|
Net change in case and LAE reserves
|
|
Net change in IBNR reserves
|
|
Increase (reduction) in estimates of net ultimate losses
|
||||||||
Asbestos
|
$
|
105,731
|
|
|
$
|
(1,865
|
)
|
|
$
|
(76,837
|
)
|
|
$
|
27,029
|
|
Environmental
|
26,542
|
|
|
(9,438
|
)
|
|
(7,748
|
)
|
|
9,356
|
|
||||
General Casualty
|
94,526
|
|
|
(54,292
|
)
|
|
(49,025
|
)
|
|
(8,791
|
)
|
||||
Workers' Compensation
|
187,712
|
|
|
(190,924
|
)
|
|
(151,797
|
)
|
|
(155,009
|
)
|
||||
Marine, aviation and transit
|
18,272
|
|
|
(9,322
|
)
|
|
(11,517
|
)
|
|
(2,567
|
)
|
||||
Construction defect
|
33,802
|
|
|
(24,023
|
)
|
|
(42,804
|
)
|
|
(33,025
|
)
|
||||
Professional indemnity/ Directors & Officers
|
33,402
|
|
|
(19,054
|
)
|
|
(24,559
|
)
|
|
(10,211
|
)
|
||||
Motor
|
24,391
|
|
|
(15,990
|
)
|
|
(8,513
|
)
|
|
(112
|
)
|
||||
Property
|
13,440
|
|
|
(11,196
|
)
|
|
(5,162
|
)
|
|
(2,918
|
)
|
||||
All Other
|
41,070
|
|
|
(45,346
|
)
|
|
(15,138
|
)
|
|
(19,414
|
)
|
||||
Total
|
$
|
578,888
|
|
|
$
|
(381,450
|
)
|
|
$
|
(393,100
|
)
|
|
$
|
(195,662
|
)
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Asbestos
|
$
|
542,681
|
|
|
$
|
1,373,678
|
|
|
$
|
1,916,359
|
|
|
$
|
490,117
|
|
|
$
|
1,271,982
|
|
|
$
|
1,762,099
|
|
Environmental
|
187,165
|
|
|
156,121
|
|
|
343,286
|
|
|
173,878
|
|
|
142,351
|
|
|
316,229
|
|
||||||
General casualty
|
501,863
|
|
|
489,129
|
|
|
990,992
|
|
|
399,396
|
|
|
421,426
|
|
|
820,822
|
|
||||||
Workers' compensation/personal accident
|
1,270,530
|
|
|
977,808
|
|
|
2,248,338
|
|
|
963,578
|
|
|
751,074
|
|
|
1,714,652
|
|
||||||
Marine, aviation and transit
|
290,067
|
|
|
121,577
|
|
|
411,644
|
|
|
244,611
|
|
|
100,135
|
|
|
344,746
|
|
||||||
Construction defect
|
29,772
|
|
|
98,312
|
|
|
128,084
|
|
|
29,245
|
|
|
94,888
|
|
|
124,133
|
|
||||||
Professional indemnity/Directors & Officers
|
693,760
|
|
|
265,490
|
|
|
959,250
|
|
|
485,478
|
|
|
170,926
|
|
|
656,404
|
|
||||||
Motor
|
480,668
|
|
|
233,806
|
|
|
714,474
|
|
|
317,829
|
|
|
165,543
|
|
|
483,372
|
|
||||||
Property
|
140,620
|
|
|
63,604
|
|
|
204,224
|
|
|
122,010
|
|
|
56,450
|
|
|
178,460
|
|
||||||
Other
|
269,956
|
|
|
165,882
|
|
|
435,838
|
|
|
208,647
|
|
|
97,573
|
|
|
306,220
|
|
||||||
|
$
|
4,407,082
|
|
|
$
|
3,945,407
|
|
|
$
|
8,352,489
|
|
|
$
|
3,434,789
|
|
|
$
|
3,272,348
|
|
|
$
|
6,707,137
|
|
Fair value adjustments
|
|
|
|
|
(170,689
|
)
|
|
|
|
|
|
(157,036
|
)
|
||||||||||
Fair value adjustments - fair value option
|
|
|
|
|
(217,933
|
)
|
|
|
|
|
|
(129,848
|
)
|
||||||||||
Deferred charge on retroactive reinsurance
|
|
|
|
|
—
|
|
|
|
|
|
|
(272,462
|
)
|
||||||||||
ULAE
|
|
|
|
|
331,494
|
|
|
|
|
|
|
331,494
|
|
||||||||||
Total
|
|
|
|
|
$
|
8,295,361
|
|
|
|
|
|
|
$
|
6,479,285
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Asbestos
|
$
|
341,544
|
|
|
$
|
1,275,476
|
|
|
$
|
1,617,020
|
|
|
$
|
321,356
|
|
|
$
|
1,171,754
|
|
|
$
|
1,493,110
|
|
Environmental
|
96,665
|
|
|
126,035
|
|
|
222,700
|
|
|
93,095
|
|
|
117,384
|
|
|
210,479
|
|
||||||
General casualty
|
500,033
|
|
|
379,484
|
|
|
879,517
|
|
|
416,097
|
|
|
298,612
|
|
|
714,709
|
|
||||||
Workers' compensation/personal accident
|
1,454,178
|
|
|
832,615
|
|
|
2,286,793
|
|
|
1,115,116
|
|
|
537,782
|
|
|
1,652,898
|
|
||||||
Marine, aviation and transit
|
301,783
|
|
|
72,888
|
|
|
374,671
|
|
|
227,994
|
|
|
78,023
|
|
|
306,017
|
|
||||||
Construction defect
|
20,712
|
|
|
99,288
|
|
|
120,000
|
|
|
19,310
|
|
|
94,736
|
|
|
114,046
|
|
||||||
Professional indemnity/Directors & Officers
|
603,665
|
|
|
216,839
|
|
|
820,504
|
|
|
426,020
|
|
|
166,898
|
|
|
592,918
|
|
||||||
Motor
|
564,307
|
|
|
321,992
|
|
|
886,299
|
|
|
414,847
|
|
|
304,874
|
|
|
719,721
|
|
||||||
Property
|
168,267
|
|
|
37,631
|
|
|
205,898
|
|
|
160,873
|
|
|
36,817
|
|
|
197,690
|
|
||||||
Other
|
220,615
|
|
|
165,519
|
|
|
386,134
|
|
|
175,289
|
|
|
111,453
|
|
|
286,742
|
|
||||||
|
$
|
4,271,769
|
|
|
$
|
3,527,767
|
|
|
$
|
7,799,536
|
|
|
$
|
3,369,997
|
|
|
$
|
2,918,333
|
|
|
$
|
6,288,330
|
|
Fair value adjustments
|
|
|
|
|
(217,527
|
)
|
|
|
|
|
|
(203,183
|
)
|
||||||||||
Fair value adjustments - fair value option
|
|
|
|
|
(374,752
|
)
|
|
|
|
|
|
(244,013
|
)
|
||||||||||
Deferred charge on retroactive reinsurance
|
|
|
|
|
—
|
|
|
|
|
|
|
(86,585
|
)
|
||||||||||
ULAE
|
|
|
|
|
333,405
|
|
|
|
|
|
|
333,405
|
|
||||||||||
Total
|
|
|
|
|
$
|
7,540,662
|
|
|
|
|
|
|
$
|
6,087,954
|
|
|
Acquisition Year
|
|
||||||||||||||||||||||||||||||||||
|
2009 and Prior
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
2019
|
Total
|
||||||||||||||||||||||||
Asbestos
|
$
|
180,887
|
|
$
|
36,371
|
|
$
|
—
|
|
$
|
—
|
|
$
|
7,973
|
|
$
|
—
|
|
$
|
673
|
|
$
|
387,808
|
|
$
|
729,749
|
|
$
|
60,424
|
|
$
|
336,925
|
|
$
|
1,740,810
|
|
Environmental
|
44,461
|
|
10,364
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
101,649
|
|
26,798
|
|
17,247
|
|
108,094
|
|
308,613
|
|
||||||||||||
General casualty
|
60,400
|
|
13,409
|
|
24,072
|
|
12,082
|
|
14,695
|
|
30,313
|
|
46,838
|
|
5,389
|
|
59,432
|
|
305,370
|
|
241,541
|
|
813,541
|
|
||||||||||||
Workers' compensation/personal accident
|
3,362
|
|
49,828
|
|
145,975
|
|
3,986
|
|
58,316
|
|
—
|
|
331,383
|
|
266,932
|
|
73,069
|
|
385,223
|
|
392,454
|
|
1,710,528
|
|
||||||||||||
Marine, aviation and transit
|
8,890
|
|
2,638
|
|
3,256
|
|
—
|
|
—
|
|
13,762
|
|
1,589
|
|
—
|
|
81,037
|
|
139,908
|
|
91,909
|
|
342,989
|
|
||||||||||||
Construction defect
|
—
|
|
18
|
|
55
|
|
—
|
|
—
|
|
—
|
|
46,906
|
|
18,982
|
|
22,973
|
|
—
|
|
35,198
|
|
124,132
|
|
||||||||||||
Professional indemnity/Directors & Officers
|
9,438
|
|
5,021
|
|
8,619
|
|
28,274
|
|
—
|
|
35,795
|
|
—
|
|
77,685
|
|
—
|
|
326,157
|
|
164,271
|
|
655,260
|
|
||||||||||||
Motor
|
25,131
|
|
5,756
|
|
217
|
|
500
|
|
660
|
|
250
|
|
14,785
|
|
203
|
|
4,453
|
|
406,545
|
|
22,099
|
|
480,599
|
|
||||||||||||
Property
|
3,957
|
|
4,058
|
|
298
|
|
6,199
|
|
—
|
|
14,127
|
|
3,581
|
|
—
|
|
455
|
|
66,755
|
|
78,785
|
|
178,215
|
|
||||||||||||
All Other
|
17,889
|
|
13,843
|
|
422
|
|
6,295
|
|
3,361
|
|
5,587
|
|
7,600
|
|
26,528
|
|
118,979
|
|
16,562
|
|
84,344
|
|
301,410
|
|
||||||||||||
Total
|
$
|
354,415
|
|
$
|
141,306
|
|
$
|
182,914
|
|
$
|
57,336
|
|
$
|
85,005
|
|
$
|
99,834
|
|
$
|
453,355
|
|
$
|
885,176
|
|
$
|
1,116,945
|
|
$
|
1,724,191
|
|
$
|
1,555,620
|
|
$
|
6,656,097
|
|
|
|
2019
|
||||||||||
|
|
Total Net Reserves per all Acquisition Years
|
|
Provision for Bad Debt
|
|
Total Net Reserves
|
||||||
Asbestos
|
|
$
|
1,740,810
|
|
|
$
|
21,289
|
|
|
$
|
1,762,099
|
|
Environmental
|
|
308,613
|
|
|
7,616
|
|
|
316,229
|
|
|||
General casualty
|
|
813,541
|
|
|
7,281
|
|
|
820,822
|
|
|||
Workers' compensation/personal accident
|
|
1,710,528
|
|
|
4,124
|
|
|
1,714,652
|
|
|||
Marine, aviation and transit
|
|
342,989
|
|
|
1,757
|
|
|
344,746
|
|
|||
Construction defect
|
|
124,132
|
|
|
1
|
|
|
124,133
|
|
|||
Professional indemnity/Directors & Officers
|
|
655,260
|
|
|
1,144
|
|
|
656,404
|
|
|||
Motor
|
|
480,599
|
|
|
2,773
|
|
|
483,372
|
|
|||
Property
|
|
178,215
|
|
|
245
|
|
|
178,460
|
|
|||
All Other
|
|
301,410
|
|
|
4,810
|
|
|
306,220
|
|
|||
Total
|
|
$
|
6,656,097
|
|
|
$
|
51,040
|
|
|
$
|
6,707,137
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||||||||
|
|
|
For the Years Ended December 31,
|
|
||||||||||||||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2011 (unaudited)
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
2009 and Prior
|
$
|
596,121
|
|
$
|
621,742
|
|
$
|
586,636
|
|
$
|
490,822
|
|
$
|
424,001
|
|
$
|
370,995
|
|
$
|
315,912
|
|
$
|
270,905
|
|
$
|
256,864
|
|
$
|
235,348
|
|
|
$
|
23,721
|
|
112,787
|
|
2010
|
285
|
|
412
|
|
449
|
|
141
|
|
140
|
|
140
|
|
140
|
|
142
|
|
142
|
|
142
|
|
|
—
|
|
26
|
|
|||||||||||
2011
|
—
|
|
102
|
|
36
|
|
45
|
|
54
|
|
61
|
|
71
|
|
79
|
|
86
|
|
93
|
|
|
—
|
|
19
|
|
|||||||||||
2012
|
—
|
|
|
121
|
|
10
|
|
10
|
|
10
|
|
10
|
|
17
|
|
18
|
|
17
|
|
|
—
|
|
7
|
|
||||||||||||
2013
|
—
|
|
|
|
23
|
|
43
|
|
15
|
|
15
|
|
15
|
|
15
|
|
15
|
|
|
—
|
|
16
|
|
|||||||||||||
2014
|
—
|
|
|
|
|
1
|
|
3
|
|
3
|
|
3
|
|
18
|
|
15
|
|
|
3
|
|
14
|
|
||||||||||||||
2015
|
—
|
|
|
|
|
|
—
|
|
(2
|
)
|
(2
|
)
|
32
|
|
24
|
|
|
5
|
|
1
|
|
|||||||||||||||
2016
|
—
|
|
|
|
|
|
|
2
|
|
(139
|
)
|
(110
|
)
|
(99
|
)
|
|
8
|
|
2
|
|
||||||||||||||||
2017
|
—
|
|
|
|
|
|
|
|
—
|
|
21
|
|
15
|
|
|
2
|
|
2
|
|
|||||||||||||||||
2018
|
—
|
|
|
|
|
|
|
|
|
7
|
|
8
|
|
|
2
|
|
1
|
|
||||||||||||||||||
2019
|
—
|
|
|
|
|
|
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||||||||||||||
|
$
|
596,406
|
|
|
|
|
|
|
|
|
|
$
|
235,578
|
|
|
$
|
23,741
|
|
112,875
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||||||||||||||||||||
|
|
|
For The Years Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||
Accident Year
|
|
2011 (unaudited)
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||||||||||
2009 and Prior
|
|
$
|
59,906
|
|
$
|
97,414
|
|
$
|
92,129
|
|
$
|
21,874
|
|
$
|
15,512
|
|
$
|
24,434
|
|
$
|
16,751
|
|
$
|
27,013
|
|
$
|
52,483
|
|
|
|
|
|||||
2010
|
|
$
|
91
|
|
115
|
|
140
|
|
140
|
|
140
|
|
140
|
|
142
|
|
142
|
|
142
|
|
|
|
|
|||||||||||||
2011
|
|
27
|
|
36
|
|
45
|
|
54
|
|
61
|
|
71
|
|
79
|
|
86
|
|
93
|
|
|
|
|
||||||||||||||
2012
|
|
|
6
|
|
10
|
|
10
|
|
10
|
|
10
|
|
17
|
|
17
|
|
17
|
|
|
|
|
|||||||||||||||
2013
|
|
|
|
6
|
|
10
|
|
15
|
|
15
|
|
15
|
|
15
|
|
15
|
|
|
|
|
||||||||||||||||
2014
|
|
|
|
|
1
|
|
3
|
|
3
|
|
3
|
|
4
|
|
7
|
|
|
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
—
|
|
(2
|
)
|
(2
|
)
|
3
|
|
11
|
|
|
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
2
|
|
(153
|
)
|
(124
|
)
|
(114
|
)
|
|
|
|
|||||||||||||||||||
2017
|
|
|
|
|
|
|
|
—
|
|
3
|
|
6
|
|
|
|
|
||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
1
|
|
4
|
|
|
|
|
|||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
$
|
52,664
|
|
|
|
|
|||||||||||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
182,914
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
||||||||||||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||||||||
2009 and Prior
|
$
|
315,850
|
|
$
|
314,772
|
|
$
|
306,078
|
|
$
|
297,612
|
|
$
|
283,244
|
|
$
|
273,273
|
|
$
|
266,124
|
|
$
|
257,947
|
|
$
|
252,794
|
|
|
$
|
18,173
|
|
47,708
|
|
2010
|
831
|
|
920
|
|
3,068
|
|
2,788
|
|
2,400
|
|
2,468
|
|
1,368
|
|
1,242
|
|
1,208
|
|
|
64
|
|
6
|
|
||||||||||
2011
|
1,360
|
|
1,341
|
|
1,222
|
|
1,081
|
|
1,002
|
|
981
|
|
960
|
|
944
|
|
944
|
|
|
—
|
|
5
|
|
||||||||||
2012
|
50
|
|
74
|
|
45
|
|
332
|
|
315
|
|
371
|
|
363
|
|
152
|
|
152
|
|
|
—
|
|
6
|
|
||||||||||
2013
|
—
|
|
|
866
|
|
109
|
|
390
|
|
396
|
|
385
|
|
124
|
|
124
|
|
|
—
|
|
5
|
|
|||||||||||
2014
|
—
|
|
|
|
2,736
|
|
2,843
|
|
1,420
|
|
1,189
|
|
1,093
|
|
1,048
|
|
|
23
|
|
7
|
|
||||||||||||
2015
|
—
|
|
|
|
|
667
|
|
1,388
|
|
676
|
|
676
|
|
676
|
|
|
—
|
|
5
|
|
|||||||||||||
2016
|
—
|
|
|
|
|
|
61
|
|
1,158
|
|
1,019
|
|
969
|
|
|
139
|
|
2
|
|
||||||||||||||
2017
|
—
|
|
|
|
|
|
|
69
|
|
153
|
|
91
|
|
|
—
|
|
4
|
|
|||||||||||||||
2018
|
—
|
|
|
|
|
|
|
|
—
|
|
141
|
|
|
18
|
|
1
|
|
||||||||||||||||
2019
|
—
|
|
|
|
|
|
|
|
|
251
|
|
|
37
|
|
4
|
|
|||||||||||||||||
|
$
|
318,091
|
|
|
|
|
|
|
|
|
$
|
258,398
|
|
|
$
|
18,454
|
|
47,753
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||
Accident Year
|
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||||||||
2009 and Prior
|
|
$
|
2,754
|
|
$
|
67,858
|
|
$
|
108,965
|
|
$
|
139,542
|
|
$
|
163,845
|
|
$
|
173,921
|
|
$
|
187,091
|
|
$
|
197,236
|
|
|
|
|
|||||
2010
|
|
$
|
167
|
|
463
|
|
618
|
|
685
|
|
712
|
|
748
|
|
776
|
|
801
|
|
|
|
|
||||||||||||
2011
|
|
110
|
|
454
|
|
679
|
|
792
|
|
849
|
|
905
|
|
944
|
|
944
|
|
|
|
|
|||||||||||||
2012
|
|
28
|
|
45
|
|
45
|
|
47
|
|
152
|
|
152
|
|
152
|
|
152
|
|
|
|
|
|||||||||||||
2013
|
|
|
100
|
|
109
|
|
124
|
|
124
|
|
124
|
|
124
|
|
124
|
|
|
|
|
||||||||||||||
2014
|
|
|
|
62
|
|
205
|
|
420
|
|
617
|
|
791
|
|
905
|
|
|
|
|
|||||||||||||||
2015
|
|
|
|
|
103
|
|
107
|
|
676
|
|
676
|
|
676
|
|
|
|
|
||||||||||||||||
2016
|
|
|
|
|
|
2
|
|
51
|
|
89
|
|
89
|
|
|
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
12
|
|
39
|
|
91
|
|
|
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
—
|
|
27
|
|
|
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
17
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
$
|
201,062
|
|
|
|
|
|||||||||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
57,336
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|||||||||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||||||
2009 and Prior
|
$
|
207,452
|
|
$
|
227,635
|
|
$
|
233,644
|
|
$
|
225,478
|
|
$
|
218,082
|
|
$
|
212,039
|
|
$
|
200,034
|
|
$
|
188,416
|
|
|
$
|
15,864
|
|
44,881
|
|
2010
|
110,795
|
|
118,652
|
|
117,915
|
|
133,289
|
|
135,364
|
|
125,148
|
|
123,802
|
|
122,441
|
|
|
4,635
|
|
11,537
|
|
|||||||||
2011
|
96,929
|
|
102,288
|
|
100,482
|
|
100,243
|
|
95,848
|
|
87,913
|
|
86,403
|
|
85,920
|
|
|
2,218
|
|
11,175
|
|
|||||||||
2012
|
131,119
|
|
127,323
|
|
121,364
|
|
118,085
|
|
114,772
|
|
110,045
|
|
107,853
|
|
108,025
|
|
|
2,090
|
|
10,420
|
|
|||||||||
2013
|
13,062
|
|
90,739
|
|
91,634
|
|
88,920
|
|
85,791
|
|
81,732
|
|
80,036
|
|
80,091
|
|
|
1,277
|
|
5,649
|
|
|||||||||
2014
|
—
|
|
|
4,514
|
|
3,714
|
|
3,425
|
|
16,800
|
|
16,225
|
|
16,304
|
|
|
90
|
|
175
|
|
||||||||||
2015
|
—
|
|
|
|
265
|
|
280
|
|
982
|
|
329
|
|
250
|
|
|
54
|
|
2
|
|
|||||||||||
2016
|
—
|
|
|
|
|
103
|
|
71
|
|
70
|
|
69
|
|
|
2
|
|
1
|
|
||||||||||||
2017
|
—
|
|
|
|
|
|
30
|
|
13
|
|
13
|
|
|
—
|
|
1
|
|
|||||||||||||
2018
|
—
|
|
|
|
|
|
|
22
|
|
17
|
|
|
—
|
|
1
|
|
||||||||||||||
2019
|
—
|
|
|
|
|
|
|
|
13
|
|
|
3
|
|
1
|
|
|||||||||||||||
|
$
|
559,357
|
|
|
|
|
|
|
|
$
|
601,559
|
|
|
$
|
26,233
|
|
83,843
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|||||||||||||||||||||||||
Accident Year
|
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||||||
2009 and Prior
|
|
$
|
48,802
|
|
$
|
84,422
|
|
$
|
109,918
|
|
$
|
128,474
|
|
$
|
129,803
|
|
$
|
136,898
|
|
$
|
140,814
|
|
|
|
|
|||||
2010
|
|
$
|
24,752
|
|
48,783
|
|
75,351
|
|
92,782
|
|
98,341
|
|
105,023
|
|
105,873
|
|
|
|
|
|||||||||||
2011
|
|
30,323
|
|
52,455
|
|
63,952
|
|
70,498
|
|
75,055
|
|
77,290
|
|
79,113
|
|
|
|
|
||||||||||||
2012
|
|
33,361
|
|
59,095
|
|
74,663
|
|
86,916
|
|
92,445
|
|
96,780
|
|
99,781
|
|
|
|
|
||||||||||||
2013
|
|
17,022
|
|
37,653
|
|
52,638
|
|
62,876
|
|
68,866
|
|
71,487
|
|
74,556
|
|
|
|
|
||||||||||||
2014
|
|
|
993
|
|
1,747
|
|
2,256
|
|
15,804
|
|
15,959
|
|
16,123
|
|
|
|
|
|||||||||||||
2015
|
|
|
|
43
|
|
102
|
|
112
|
|
165
|
|
190
|
|
|
|
|
||||||||||||||
2016
|
|
|
|
|
34
|
|
64
|
|
65
|
|
66
|
|
|
|
|
|||||||||||||||
2017
|
|
|
|
|
|
9
|
|
13
|
|
13
|
|
|
|
|
||||||||||||||||
2018
|
|
|
|
|
|
|
13
|
|
17
|
|
|
|
|
|||||||||||||||||
2019
|
|
|
|
|
|
|
|
8
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
|
$
|
516,554
|
|
|
|
|
|||||||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
85,005
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||
|
|
|
For the Years Ended December 31,
|
|
|||||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||||
2009 and Prior
|
$
|
37,554
|
|
$
|
33,315
|
|
$
|
23,192
|
|
$
|
20,933
|
|
$
|
22,105
|
|
$
|
21,089
|
|
$
|
19,229
|
|
|
$
|
72
|
|
6,363
|
|
2010
|
104,408
|
|
100,017
|
|
100,345
|
|
133,784
|
|
119,430
|
|
115,341
|
|
122,063
|
|
|
10,628
|
|
6,454
|
|
||||||||
2011
|
73,942
|
|
128,979
|
|
153,910
|
|
133,521
|
|
135,540
|
|
140,845
|
|
143,664
|
|
|
9,369
|
|
6,693
|
|
||||||||
2012
|
140,683
|
|
146,060
|
|
177,122
|
|
185,261
|
|
178,247
|
|
165,223
|
|
162,068
|
|
|
11,175
|
|
5,086
|
|
||||||||
2013
|
86,920
|
|
75,762
|
|
93,936
|
|
82,344
|
|
86,798
|
|
86,393
|
|
84,590
|
|
|
13,971
|
|
3,171
|
|
||||||||
2014
|
—
|
|
12,826
|
|
9,503
|
|
13,817
|
|
7,420
|
|
5,765
|
|
5,589
|
|
|
1,731
|
|
1,113
|
|
||||||||
2015
|
—
|
|
|
33,545
|
|
15,529
|
|
20,709
|
|
18,616
|
|
17,799
|
|
|
73
|
|
186
|
|
|||||||||
2016
|
—
|
|
|
|
330
|
|
1,075
|
|
4,607
|
|
773
|
|
|
89
|
|
44
|
|
||||||||||
2017
|
—
|
|
|
|
|
5,074
|
|
3,920
|
|
8,196
|
|
|
423
|
|
37
|
|
|||||||||||
2018
|
—
|
|
|
|
|
|
6
|
|
5
|
|
|
—
|
|
17
|
|
||||||||||||
2019
|
—
|
|
|
|
|
|
|
—
|
|
|
899
|
|
5
|
|
|||||||||||||
|
$
|
443,507
|
|
|
|
|
|
|
$
|
563,976
|
|
|
$
|
48,430
|
|
29,169
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||||||||||||||
|
|
|
For The Years Ended December 31,
|
|
|
|
|||||||||||||||||||||
Accident Year
|
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||||
2009 and Prior
|
|
$
|
7,044
|
|
$
|
13,090
|
|
$
|
15,652
|
|
$
|
16,337
|
|
$
|
16,884
|
|
$
|
16,934
|
|
|
|
|
|||||
2010
|
|
$
|
29,424
|
|
69,414
|
|
87,233
|
|
102,138
|
|
102,128
|
|
103,753
|
|
|
|
|
||||||||||
2011
|
|
84,042
|
|
109,574
|
|
110,338
|
|
113,406
|
|
120,564
|
|
126,650
|
|
|
|
|
|||||||||||
2012
|
|
47,495
|
|
89,618
|
|
119,807
|
|
128,692
|
|
127,958
|
|
132,508
|
|
|
|
|
|||||||||||
2013
|
|
21,752
|
|
40,237
|
|
47,537
|
|
55,882
|
|
63,256
|
|
62,009
|
|
|
|
|
|||||||||||
2014
|
|
1,462
|
|
2,494
|
|
3,280
|
|
3,975
|
|
5,994
|
|
7,671
|
|
|
|
|
|||||||||||
2015
|
|
|
1,739
|
|
4,295
|
|
11,465
|
|
13,487
|
|
12,774
|
|
|
|
|
||||||||||||
2016
|
|
|
|
20
|
|
556
|
|
571
|
|
601
|
|
|
|
|
|||||||||||||
2017
|
|
|
|
|
537
|
|
1,553
|
|
1,237
|
|
|
|
|
||||||||||||||
2018
|
|
|
|
|
|
5
|
|
5
|
|
|
|
|
|||||||||||||||
2019
|
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
$
|
464,142
|
|
|
|
|
|||||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
99,834
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2015
(unaudited) |
2016
(unaudited) |
2017
(unaudited) |
2018
(unaudited) |
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||
2009 and Prior
|
$
|
953,149
|
|
$
|
877,641
|
|
$
|
585,616
|
|
$
|
536,452
|
|
$
|
508,471
|
|
$
|
467,530
|
|
|
$
|
51,305
|
|
11,285
|
|
2010
|
49,049
|
|
53,914
|
|
52,889
|
|
55,761
|
|
51,348
|
|
49,031
|
|
|
6,860
|
|
2,349
|
|
|||||||
2011
|
124,400
|
|
137,102
|
|
130,994
|
|
129,386
|
|
127,098
|
|
127,673
|
|
|
18,940
|
|
5,379
|
|
|||||||
2012
|
178,936
|
|
187,288
|
|
197,716
|
|
200,749
|
|
192,896
|
|
192,338
|
|
|
23,706
|
|
4,714
|
|
|||||||
2013
|
229,182
|
|
189,430
|
|
196,205
|
|
199,593
|
|
188,572
|
|
184,189
|
|
|
16,027
|
|
5,182
|
|
|||||||
2014
|
143,623
|
|
142,425
|
|
137,061
|
|
142,332
|
|
136,403
|
|
151,243
|
|
|
18,617
|
|
10,707
|
|
|||||||
2015
|
22,540
|
|
69,067
|
|
68,034
|
|
65,243
|
|
63,776
|
|
68,388
|
|
|
5,125
|
|
21,014
|
|
|||||||
2016
|
—
|
|
|
14,172
|
|
12,504
|
|
12,750
|
|
13,837
|
|
|
2,053
|
|
3,365
|
|
||||||||
2017
|
—
|
|
|
|
4,056
|
|
4,497
|
|
5,194
|
|
|
453
|
|
900
|
|
|||||||||
2018
|
—
|
|
|
|
|
2,965
|
|
1,845
|
|
|
997
|
|
270
|
|
||||||||||
2019
|
—
|
|
|
|
|
|
1,804
|
|
|
1,775
|
|
3
|
|
|||||||||||
|
$
|
1,700,879
|
|
|
|
|
|
$
|
1,263,072
|
|
|
$
|
145,858
|
|
65,168
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|||||||||||||||||||
Accident Year
|
|
2015
(unaudited) |
2016
(unaudited) |
2017
(unaudited) |
2018
(unaudited) |
2019
|
|
|
|
|||||||||||||||
2009 and Prior
|
|
$
|
23,605
|
|
$
|
67,899
|
|
$
|
114,682
|
|
$
|
140,691
|
|
$
|
165,931
|
|
|
|
|
|||||
2010
|
|
$
|
9,191
|
|
15,301
|
|
19,665
|
|
25,625
|
|
28,455
|
|
|
|
|
|||||||||
2011
|
|
33,826
|
|
55,077
|
|
70,975
|
|
86,324
|
|
97,842
|
|
|
|
|
||||||||||
2012
|
|
52,728
|
|
94,767
|
|
119,382
|
|
142,165
|
|
158,417
|
|
|
|
|
||||||||||
2013
|
|
46,761
|
|
89,868
|
|
120,429
|
|
145,659
|
|
159,626
|
|
|
|
|
||||||||||
2014
|
|
30,747
|
|
64,353
|
|
90,738
|
|
109,149
|
|
125,226
|
|
|
|
|
||||||||||
2015
|
|
20,653
|
|
38,193
|
|
46,067
|
|
51,315
|
|
59,247
|
|
|
|
|
||||||||||
2016
|
|
|
5,325
|
|
7,038
|
|
8,298
|
|
9,405
|
|
|
|
|
|||||||||||
2017
|
|
|
|
2,311
|
|
3,909
|
|
4,691
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
558
|
|
835
|
|
|
|
|
|||||||||||||
2019
|
|
|
|
|
|
42
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
$
|
809,717
|
|
|
|
|
|||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
453,355
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|||||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||||
2009 and Prior
|
$
|
921,259
|
|
$
|
834,148
|
|
$
|
538,290
|
|
$
|
488,356
|
|
$
|
462,612
|
|
$
|
418,931
|
|
|
$
|
43,677
|
|
8,129
|
|
2010
|
31,919
|
|
34,360
|
|
31,402
|
|
30,407
|
|
27,922
|
|
26,913
|
|
|
1,877
|
|
471
|
|
|||||||
2011
|
76,789
|
|
73,723
|
|
69,009
|
|
68,013
|
|
66,781
|
|
67,236
|
|
|
5,836
|
|
1,238
|
|
|||||||
2012
|
120,298
|
|
110,007
|
|
108,251
|
|
106,625
|
|
100,187
|
|
98,532
|
|
|
5,774
|
|
1,804
|
|
|||||||
2013
|
146,237
|
|
124,726
|
|
122,238
|
|
121,010
|
|
113,056
|
|
112,199
|
|
|
6,789
|
|
2,379
|
|
|||||||
2014
|
82,141
|
|
86,852
|
|
82,038
|
|
83,095
|
|
78,389
|
|
78,457
|
|
|
2,633
|
|
3,680
|
|
|||||||
2015
|
4,089
|
|
18,647
|
|
12,623
|
|
13,488
|
|
12,295
|
|
11,125
|
|
|
545
|
|
2,900
|
|
|||||||
2016
|
—
|
|
|
873
|
|
955
|
|
583
|
|
536
|
|
|
72
|
|
38
|
|
||||||||
2017
|
—
|
|
|
|
358
|
|
61
|
|
41
|
|
|
21
|
|
10
|
|
|||||||||
2018
|
—
|
|
|
|
|
—
|
|
5
|
|
|
3
|
|
1
|
|
||||||||||
2019
|
—
|
|
|
|
|
|
1
|
|
|
—
|
|
1
|
|
|||||||||||
|
$
|
1,382,732
|
|
|
|
|
|
$
|
813,976
|
|
|
$
|
67,228
|
|
20,651
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|||||||||||||||||||
Accident Year
|
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||
2009 and Prior
|
|
$
|
16,278
|
|
$
|
56,563
|
|
$
|
96,000
|
|
$
|
115,884
|
|
$
|
137,417
|
|
|
|
|
|||||
2010
|
|
$
|
4,352
|
|
8,446
|
|
11,906
|
|
16,141
|
|
17,912
|
|
|
|
|
|||||||||
2011
|
|
16,032
|
|
30,462
|
|
39,635
|
|
50,470
|
|
55,595
|
|
|
|
|
||||||||||
2012
|
|
25,103
|
|
52,851
|
|
66,092
|
|
79,367
|
|
88,369
|
|
|
|
|
||||||||||
2013
|
|
27,737
|
|
55,675
|
|
75,065
|
|
91,559
|
|
100,890
|
|
|
|
|
||||||||||
2014
|
|
17,824
|
|
38,051
|
|
53,308
|
|
65,561
|
|
72,696
|
|
|
|
|
||||||||||
2015
|
|
3,034
|
|
5,672
|
|
7,917
|
|
9,169
|
|
9,248
|
|
|
|
|
||||||||||
2016
|
|
|
134
|
|
363
|
|
417
|
|
447
|
|
|
|
|
|||||||||||
2017
|
|
|
|
2
|
|
10
|
|
18
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
—
|
|
1
|
|
|
|
|
|||||||||||||
2019
|
|
|
|
|
|
—
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
$
|
482,593
|
|
|
|
|
|||||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
331,383
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||
2009 and Prior
|
$
|
1,263,726
|
|
$
|
1,274,524
|
|
$
|
1,302,307
|
|
$
|
1,282,385
|
|
$
|
1,287,000
|
|
|
$
|
303,592
|
|
22,892
|
|
2010
|
32,571
|
|
32,451
|
|
32,866
|
|
28,093
|
|
25,710
|
|
|
5,047
|
|
706
|
|
||||||
2011
|
17,291
|
|
17,291
|
|
19,920
|
|
19,754
|
|
18,829
|
|
|
2,830
|
|
789
|
|
||||||
2012
|
13,717
|
|
13,717
|
|
17,020
|
|
14,765
|
|
12,717
|
|
|
2,012
|
|
776
|
|
||||||
2013
|
373
|
|
373
|
|
1,312
|
|
1,237
|
|
1,120
|
|
|
827
|
|
112
|
|
||||||
2014
|
391
|
|
391
|
|
1,380
|
|
1,056
|
|
869
|
|
|
485
|
|
50
|
|
||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2017
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
2018
|
—
|
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
2019
|
—
|
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||||
|
$
|
1,328,069
|
|
|
|
|
$
|
1,346,245
|
|
|
$
|
314,793
|
|
25,325
|
|
||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
||||||||||||||||
Accident Year
|
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||
2009 and Prior
|
|
$
|
96,937
|
|
$
|
213,509
|
|
$
|
317,309
|
|
$
|
428,904
|
|
|
|
|
|||||
2010
|
|
$
|
2,757
|
|
7,111
|
|
10,001
|
|
14,236
|
|
|
|
|
||||||||
2011
|
|
2,758
|
|
6,647
|
|
8,218
|
|
9,691
|
|
|
|
|
|||||||||
2012
|
|
2,734
|
|
5,206
|
|
6,461
|
|
7,587
|
|
|
|
|
|||||||||
2013
|
|
145
|
|
191
|
|
278
|
|
285
|
|
|
|
|
|||||||||
2014
|
|
178
|
|
207
|
|
284
|
|
366
|
|
|
|
|
|||||||||
2015
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2016
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2017
|
|
|
—
|
|
—
|
|
—
|
|
|
|
|
||||||||||
2018
|
|
|
|
—
|
|
—
|
|
|
|
|
|||||||||||
2019
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
|
|
|
|
$
|
461,069
|
|
|
|
|
|||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
885,176
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
||||||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||||
2009 and Prior
|
$
|
413,381
|
|
$
|
412,474
|
|
$
|
377,285
|
|
$
|
369,093
|
|
$
|
362,905
|
|
|
$
|
26,747
|
|
9,092
|
|
2010
|
24,075
|
|
25,330
|
|
26,034
|
|
22,383
|
|
19,541
|
|
|
3,660
|
|
323
|
|
||||||
2011
|
15,376
|
|
15,376
|
|
16,399
|
|
16,501
|
|
16,327
|
|
|
1,456
|
|
476
|
|
||||||
2012
|
13,074
|
|
13,074
|
|
15,465
|
|
13,276
|
|
11,379
|
|
|
1,093
|
|
608
|
|
||||||
2013
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2014
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2015
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2016
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2017
|
—
|
|
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
2018
|
—
|
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||||
2019
|
—
|
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||||
|
$
|
465,906
|
|
|
|
|
$
|
410,152
|
|
|
$
|
32,956
|
|
10,499
|
|
||||||
|
|
|
|
|
|
|
|
|
|||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
||||||||||||||||
Accident Year
|
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||
2009 and Prior
|
|
$
|
33,610
|
|
$
|
59,725
|
|
$
|
83,273
|
|
$
|
117,191
|
|
|
|
|
|||||
2010
|
|
$
|
1,908
|
|
5,539
|
|
7,326
|
|
9,891
|
|
|
|
|
||||||||
2011
|
|
2,631
|
|
5,871
|
|
7,305
|
|
8,756
|
|
|
|
|
|||||||||
2012
|
|
2,638
|
|
5,028
|
|
6,247
|
|
7,382
|
|
|
|
|
|||||||||
2013
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2014
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2015
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2016
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2017
|
|
|
—
|
|
—
|
|
—
|
|
|
|
|
||||||||||
2018
|
|
|
|
—
|
|
—
|
|
|
|
|
|||||||||||
2019
|
|
|
|
|
—
|
|
|
|
|
||||||||||||
|
|
|
|
|
$
|
143,220
|
|
|
|
|
|||||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
266,932
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||||||||
|
|
For the Years Ended December 31,
|
|
|||||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||||
2009 and Prior
|
$
|
1,449,663
|
|
$
|
1,374,191
|
|
$
|
1,304,002
|
|
$
|
1,313,517
|
|
|
$
|
776,522
|
|
11,481
|
|
2010
|
34,561
|
|
28,737
|
|
18,908
|
|
21,021
|
|
|
8,209
|
|
36
|
|
|||||
2011
|
36,184
|
|
29,273
|
|
25,390
|
|
27,315
|
|
|
8,573
|
|
7
|
|
|||||
2012
|
39,449
|
|
35,467
|
|
31,240
|
|
29,452
|
|
|
6,389
|
|
11
|
|
|||||
2013
|
36,320
|
|
30,335
|
|
28,140
|
|
24,703
|
|
|
1,242
|
|
11
|
|
|||||
2014
|
31,474
|
|
20,315
|
|
16,984
|
|
15,996
|
|
|
2,195
|
|
20
|
|
|||||
2015
|
9,207
|
|
6,494
|
|
7,002
|
|
6,295
|
|
|
931
|
|
8
|
|
|||||
2016
|
1,484
|
|
(4
|
)
|
125
|
|
919
|
|
|
86
|
|
3
|
|
|||||
2017
|
95
|
|
174
|
|
—
|
|
—
|
|
|
416
|
|
1
|
|
|||||
2018
|
—
|
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||||
2019
|
—
|
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||||
|
$
|
1,638,437
|
|
|
|
$
|
1,439,218
|
|
|
$
|
804,563
|
|
11,578
|
|
||||
|
|
|
|
|
|
|
|
|||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||
|
|
For the Years Ended December 31,
|
|
|
|
|||||||||||||
Accident Year
|
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||
2009 and Prior
|
|
$
|
80,189
|
|
$
|
165,471
|
|
$
|
243,621
|
|
|
|
|
|||||
2010
|
|
$
|
4,287
|
|
7,394
|
|
9,121
|
|
|
|
|
|||||||
2011
|
|
4,125
|
|
9,257
|
|
12,971
|
|
|
|
|
||||||||
2012
|
|
10,348
|
|
15,371
|
|
18,603
|
|
|
|
|
||||||||
2013
|
|
9,508
|
|
15,711
|
|
21,277
|
|
|
|
|
||||||||
2014
|
|
6,482
|
|
8,987
|
|
11,559
|
|
|
|
|
||||||||
2015
|
|
1,361
|
|
3,720
|
|
4,687
|
|
|
|
|
||||||||
2016
|
|
(56
|
)
|
66
|
|
434
|
|
|
|
|
||||||||
2017
|
|
4
|
|
—
|
|
—
|
|
|
|
|
||||||||
2018
|
|
|
—
|
|
—
|
|
|
|
|
|||||||||
2019
|
|
|
|
—
|
|
|
|
|
||||||||||
|
|
|
|
$
|
322,273
|
|
|
|
|
|||||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
1,116,945
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited) |
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
559,105
|
|
$
|
383,948
|
|
$
|
355,392
|
|
|
$
|
106,822
|
|
209,846
|
|
2010
|
88,147
|
|
108,810
|
|
94,273
|
|
|
23,039
|
|
13,799
|
|
||||
2011
|
159,362
|
|
147,341
|
|
142,391
|
|
|
21,380
|
|
14,100
|
|
||||
2012
|
225,177
|
|
219,807
|
|
211,156
|
|
|
20,218
|
|
14,055
|
|
||||
2013
|
263,008
|
|
267,132
|
|
255,973
|
|
|
54,609
|
|
16,251
|
|
||||
2014
|
408,726
|
|
453,181
|
|
423,289
|
|
|
90,111
|
|
18,887
|
|
||||
2015
|
354,692
|
|
474,678
|
|
467,650
|
|
|
97,189
|
|
23,421
|
|
||||
2016
|
170,311
|
|
172,245
|
|
174,845
|
|
|
55,384
|
|
2,094
|
|
||||
2017
|
207,035
|
|
207,172
|
|
205,460
|
|
|
79,430
|
|
4,163
|
|
||||
2018
|
315,659
|
|
315,659
|
|
285,038
|
|
|
88,411
|
|
4,929
|
|
||||
2019
|
—
|
|
|
68,271
|
|
|
19,774
|
|
1,634
|
|
|||||
|
$
|
2,751,222
|
|
|
$
|
2,683,738
|
|
|
$
|
656,367
|
|
323,179
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited) |
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
41,953
|
|
$
|
36,359
|
|
|
|
|
|||||
2010
|
|
$
|
11,109
|
|
23,761
|
|
|
|
|
||||||
2011
|
|
26,998
|
|
47,261
|
|
|
|
|
|||||||
2012
|
|
31,845
|
|
74,768
|
|
|
|
|
|||||||
2013
|
|
42,312
|
|
90,716
|
|
|
|
|
|||||||
2014
|
|
93,536
|
|
181,166
|
|
|
|
|
|||||||
2015
|
|
100,598
|
|
191,150
|
|
|
|
|
|||||||
2016
|
|
6,258
|
|
62,658
|
|
|
|
|
|||||||
2017
|
|
52
|
|
72,794
|
|
|
|
|
|||||||
2018
|
|
—
|
|
139,815
|
|
|
|
|
|||||||
2019
|
|
|
39,099
|
|
|
|
|
||||||||
|
|
|
$
|
959,547
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
1,724,191
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
97,189
|
|
$
|
48,898
|
|
$
|
42,901
|
|
|
$
|
3,969
|
|
45,895
|
|
2010
|
30,895
|
|
23,086
|
|
23,059
|
|
|
7,004
|
|
1,885
|
|
||||
2011
|
17,518
|
|
15,854
|
|
15,532
|
|
|
2,086
|
|
1,404
|
|
||||
2012
|
36,536
|
|
31,901
|
|
27,774
|
|
|
3,716
|
|
1,567
|
|
||||
2013
|
42,528
|
|
54,061
|
|
44,782
|
|
|
5,123
|
|
1,571
|
|
||||
2014
|
65,355
|
|
80,316
|
|
72,333
|
|
|
16,793
|
|
2,210
|
|
||||
2015
|
77,011
|
|
91,825
|
|
102,399
|
|
|
28,926
|
|
3,430
|
|
||||
2016
|
28,825
|
|
28,825
|
|
36,585
|
|
|
14,377
|
|
253
|
|
||||
2017
|
37,209
|
|
37,209
|
|
41,664
|
|
|
20,392
|
|
230
|
|
||||
2018
|
39,888
|
|
39,888
|
|
40,753
|
|
|
20,480
|
|
182
|
|
||||
2019
|
—
|
|
|
6,767
|
|
|
2,802
|
|
34
|
|
|||||
|
$
|
472,954
|
|
|
$
|
454,549
|
|
|
$
|
125,668
|
|
58,661
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited)
|
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
3,496
|
|
$
|
7,146
|
|
|
|
|
|||||
2010
|
|
$
|
5,345
|
|
7,835
|
|
|
|
|
||||||
2011
|
|
2,236
|
|
6,621
|
|
|
|
|
|||||||
2012
|
|
1,104
|
|
11,097
|
|
|
|
|
|||||||
2013
|
|
10,015
|
|
19,756
|
|
|
|
|
|||||||
2014
|
|
13,427
|
|
28,071
|
|
|
|
|
|||||||
2015
|
|
15,163
|
|
32,244
|
|
|
|
|
|||||||
2016
|
|
—
|
|
14,109
|
|
|
|
|
|||||||
2017
|
|
—
|
|
11,048
|
|
|
|
|
|||||||
2018
|
|
—
|
|
8,879
|
|
|
|
|
|||||||
2019
|
|
|
2,373
|
|
|
|
|
||||||||
|
|
|
$
|
149,179
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
305,370
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
106,230
|
|
$
|
101,016
|
|
$
|
108,435
|
|
|
$
|
30,391
|
|
1,742
|
|
2010
|
24,838
|
|
25,149
|
|
24,102
|
|
|
8,642
|
|
355
|
|
||||
2011
|
29,795
|
|
24,877
|
|
26,179
|
|
|
12,202
|
|
401
|
|
||||
2012
|
28,788
|
|
29,174
|
|
27,723
|
|
|
12,633
|
|
468
|
|
||||
2013
|
37,716
|
|
38,309
|
|
37,866
|
|
|
16,786
|
|
866
|
|
||||
2014
|
65,000
|
|
66,305
|
|
57,128
|
|
|
24,865
|
|
1,335
|
|
||||
2015
|
38,734
|
|
39,336
|
|
34,649
|
|
|
16,909
|
|
1,437
|
|
||||
2016
|
44,686
|
|
44,686
|
|
38,945
|
|
|
21,267
|
|
892
|
|
||||
2017
|
52,360
|
|
52,360
|
|
49,156
|
|
|
28,222
|
|
998
|
|
||||
2018
|
65,075
|
|
65,075
|
|
60,923
|
|
|
24,137
|
|
886
|
|
||||
2019
|
—
|
|
|
20,889
|
|
|
5,472
|
|
383
|
|
|||||
|
$
|
493,222
|
|
|
$
|
485,995
|
|
|
$
|
201,526
|
|
9,763
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited)
|
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
3,633
|
|
$
|
10,643
|
|
|
|
|
|||||
2010
|
|
$
|
317
|
|
4,542
|
|
|
|
|
||||||
2011
|
|
(1,517
|
)
|
1,825
|
|
|
|
|
|||||||
2012
|
|
521
|
|
5,513
|
|
|
|
|
|||||||
2013
|
|
1,532
|
|
7,743
|
|
|
|
|
|||||||
2014
|
|
3,248
|
|
14,666
|
|
|
|
|
|||||||
2015
|
|
1,355
|
|
4,066
|
|
|
|
|
|||||||
2016
|
|
—
|
|
3,666
|
|
|
|
|
|||||||
2017
|
|
—
|
|
5,900
|
|
|
|
|
|||||||
2018
|
|
—
|
|
28,725
|
|
|
|
|
|||||||
2019
|
|
|
13,483
|
|
|
|
|
||||||||
|
|
|
$
|
100,772
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
385,223
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
26,321
|
|
$
|
28,798
|
|
$
|
20,641
|
|
|
$
|
(1,842
|
)
|
57,002
|
|
2010
|
3,324
|
|
2,062
|
|
(6,710
|
)
|
|
(1,049
|
)
|
3,243
|
|
||||
2011
|
8,676
|
|
9,472
|
|
10,345
|
|
|
1,486
|
|
3,966
|
|
||||
2012
|
16,069
|
|
12,297
|
|
10,151
|
|
|
(6,037
|
)
|
4,280
|
|
||||
2013
|
43,798
|
|
35,462
|
|
29,464
|
|
|
2,404
|
|
5,720
|
|
||||
2014
|
62,766
|
|
81,126
|
|
82,479
|
|
|
14,668
|
|
5,862
|
|
||||
2015
|
26,007
|
|
65,209
|
|
72,055
|
|
|
8,758
|
|
6,606
|
|
||||
2016
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2017
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2018
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2019
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||
|
$
|
186,961
|
|
|
$
|
218,425
|
|
|
$
|
18,388
|
|
86,679
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited)
|
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
3,211
|
|
$
|
(3,789
|
)
|
|
|
|
|||||
2010
|
|
$
|
(3,689
|
)
|
(7,715
|
)
|
|
|
|
||||||
2011
|
|
4,953
|
|
5,901
|
|
|
|
|
|||||||
2012
|
|
1,180
|
|
3,482
|
|
|
|
|
|||||||
2013
|
|
5,642
|
|
11,734
|
|
|
|
|
|||||||
2014
|
|
22,990
|
|
40,926
|
|
|
|
|
|||||||
2015
|
|
21,956
|
|
27,978
|
|
|
|
|
|||||||
2016
|
|
—
|
|
—
|
|
|
|
|
|||||||
2017
|
|
—
|
|
—
|
|
|
|
|
|||||||
2018
|
|
—
|
|
—
|
|
|
|
|
|||||||
2019
|
|
|
—
|
|
|
|
|
||||||||
|
|
|
$
|
78,517
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
139,908
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
200,658
|
|
$
|
92,577
|
|
$
|
100,687
|
|
|
$
|
(1,316
|
)
|
52,393
|
|
2010
|
25,474
|
|
39,710
|
|
33,765
|
|
|
8,220
|
|
4,259
|
|
||||
2011
|
44,476
|
|
50,663
|
|
46,111
|
|
|
2,837
|
|
3,745
|
|
||||
2012
|
55,366
|
|
68,004
|
|
65,180
|
|
|
12,943
|
|
3,263
|
|
||||
2013
|
56,251
|
|
60,010
|
|
74,018
|
|
|
9,407
|
|
3,223
|
|
||||
2014
|
84,795
|
|
106,888
|
|
101,771
|
|
|
16,922
|
|
3,563
|
|
||||
2015
|
45,515
|
|
97,288
|
|
79,028
|
|
|
19,285
|
|
3,903
|
|
||||
2016
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2017
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2018
|
—
|
|
—
|
|
—
|
|
|
—
|
|
—
|
|
||||
2019
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|||||
|
$
|
512,535
|
|
|
$
|
500,560
|
|
|
$
|
68,298
|
|
74,349
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited)
|
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
24,232
|
|
$
|
33,585
|
|
|
|
|
|||||
2010
|
|
$
|
3,644
|
|
12,243
|
|
|
|
|
||||||
2011
|
|
12,453
|
|
19,732
|
|
|
|
|
|||||||
2012
|
|
15,706
|
|
22,837
|
|
|
|
|
|||||||
2013
|
|
10,599
|
|
18,601
|
|
|
|
|
|||||||
2014
|
|
21,640
|
|
40,189
|
|
|
|
|
|||||||
2015
|
|
13,696
|
|
27,216
|
|
|
|
|
|||||||
2016
|
|
—
|
|
—
|
|
|
|
|
|||||||
2017
|
|
—
|
|
—
|
|
|
|
|
|||||||
2018
|
|
—
|
|
—
|
|
|
|
|
|||||||
2019
|
|
|
—
|
|
|
|
|
||||||||
|
|
|
$
|
174,403
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
326,157
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
|||||||||||||
|
|
For the Year Ended December 31,
|
|
||||||||||||
Accident Year
|
Total Net Reserves Acquired
|
2018
(unaudited)
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||||
2009 and Prior
|
$
|
17,648
|
|
$
|
15,490
|
|
$
|
10,781
|
|
|
$
|
(291
|
)
|
356
|
|
2010
|
23,548
|
|
13,937
|
|
15,187
|
|
|
1,015
|
|
922
|
|
||||
2011
|
46,015
|
|
36,282
|
|
35,843
|
|
|
1,477
|
|
1,209
|
|
||||
2012
|
62,432
|
|
55,338
|
|
60,620
|
|
|
6,949
|
|
1,594
|
|
||||
2013
|
74,615
|
|
68,022
|
|
61,396
|
|
|
14,105
|
|
626
|
|
||||
2014
|
111,418
|
|
99,140
|
|
86,887
|
|
|
10,440
|
|
1,140
|
|
||||
2015
|
129,271
|
|
127,187
|
|
126,345
|
|
|
15,912
|
|
1,274
|
|
||||
2016
|
90,166
|
|
92,100
|
|
93,824
|
|
|
19,439
|
|
644
|
|
||||
2017
|
100,316
|
|
100,453
|
|
99,129
|
|
|
30,312
|
|
2,797
|
|
||||
2018
|
180,471
|
|
180,471
|
|
157,556
|
|
|
42,546
|
|
3,731
|
|
||||
2019
|
—
|
|
|
39,757
|
|
|
11,457
|
|
1,200
|
|
|||||
|
$
|
835,900
|
|
|
$
|
787,325
|
|
|
$
|
153,361
|
|
15,493
|
|
||
|
|
|
|
|
|
|
|||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
||||||||||||
|
|
For the Year Ended December 31,
|
|
|
|
||||||||||
Accident Year
|
|
2018
(unaudited)
|
2019
|
|
|
|
|||||||||
2009 and Prior
|
|
$
|
2,398
|
|
$
|
5,112
|
|
|
|
|
|||||
2010
|
|
$
|
4,437
|
|
6,911
|
|
|
|
|
||||||
2011
|
|
5,631
|
|
12,112
|
|
|
|
|
|||||||
2012
|
|
11,520
|
|
23,284
|
|
|
|
|
|||||||
2013
|
|
10,226
|
|
27,839
|
|
|
|
|
|||||||
2014
|
|
20,746
|
|
46,359
|
|
|
|
|
|||||||
2015
|
|
19,857
|
|
58,433
|
|
|
|
|
|||||||
2016
|
|
6,258
|
|
42,527
|
|
|
|
|
|||||||
2017
|
|
52
|
|
48,655
|
|
|
|
|
|||||||
2018
|
|
—
|
|
86,861
|
|
|
|
|
|||||||
2019
|
|
|
22,687
|
|
|
|
|
||||||||
|
|
|
$
|
380,780
|
|
|
|
|
|||||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
406,545
|
|
|
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
As of December 31, 2019
|
||||||||||
|
|
For the Year Ended December 31,
|
|
|||||||||
Accident Year
|
Total Net Reserves Acquired
|
2019
|
|
IBNR
|
Cumulative Number of Claims
|
|||||||
2009 and Prior
|
$
|
604,631
|
|
$
|
598,841
|
|
|
$
|
330,575
|
|
81,869
|
|
2010
|
35,515
|
|
24,353
|
|
|
3,586
|
|
21,945
|
|
|||
2011
|
47,718
|
|
38,961
|
|
|
1,506
|
|
21,380
|
|
|||
2012
|
70,661
|
|
51,937
|
|
|
27,520
|
|
15,532
|
|
|||
2013
|
110,426
|
|
87,708
|
|
|
36,879
|
|
19,223
|
|
|||
2014
|
135,465
|
|
131,000
|
|
|
76,169
|
|
21,224
|
|
|||
2015
|
182,991
|
|
186,727
|
|
|
99,838
|
|
35,276
|
|
|||
2016
|
238,798
|
|
308,254
|
|
|
179,237
|
|
39,815
|
|
|||
2017
|
116,386
|
|
116,386
|
|
|
116,386
|
|
2
|
|
|||
2018
|
162,744
|
|
162,744
|
|
|
162,744
|
|
2
|
|
|||
2019
|
—
|
|
54,601
|
|
|
12,706
|
|
85
|
|
|||
|
$
|
1,705,335
|
|
$
|
1,761,512
|
|
|
$
|
1,047,146
|
|
256,353
|
|
|
|
|
|
|
|
|||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||
|
|
For the Year Ended December 31,
|
|
|
|
|||||||
Accident Year
|
|
2019
|
|
|
|
|||||||
2009 and Prior
|
|
$
|
21,678
|
|
|
|
|
|||||
2010
|
|
4,923
|
|
|
|
|
||||||
2011
|
|
4,649
|
|
|
|
|
||||||
2012
|
|
6,455
|
|
|
|
|
||||||
2013
|
|
12,893
|
|
|
|
|
||||||
2014
|
|
26,910
|
|
|
|
|
||||||
2015
|
|
34,610
|
|
|
|
|
||||||
2016
|
|
68,179
|
|
|
|
|
||||||
2017
|
|
—
|
|
|
|
|
||||||
2018
|
|
—
|
|
|
|
|
||||||
2019
|
|
25,595
|
|
|
|
|
||||||
|
|
$
|
205,892
|
|
|
|
|
|||||
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
1,555,620
|
|
|
|
|
|
Annual Percentage Payout of Incurred Losses since Year of Acquisition, Net of Reinsurance
|
|||||||||||||||||||
Year of Acquisition
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
2010 - All lines of business
|
12.95
|
%
|
20.21
|
%
|
21.16
|
%
|
10.49
|
%
|
5.42
|
%
|
1.75
|
%
|
2.12
|
%
|
3.58
|
%
|
2.30
|
%
|
2.10
|
%
|
2011 - All lines of business
|
25.48
|
%
|
15.94
|
%
|
(2.22
|
)%
|
(29.82
|
)%
|
(2.70
|
)%
|
3.79
|
%
|
(3.32
|
)%
|
4.38
|
%
|
10.83
|
%
|
|
|
2012 - All lines of business
|
1.18
|
%
|
25.49
|
%
|
16.08
|
%
|
12.00
|
%
|
9.56
|
%
|
4.26
|
%
|
5.22
|
%
|
4.02
|
%
|
|
|
||
2013 - All lines of business
|
25.64
|
%
|
21.47
|
%
|
15.78
|
%
|
10.91
|
%
|
6.08
|
%
|
3.86
|
%
|
2.14
|
%
|
|
|
|
|||
2014 - All lines of business
|
33.91
|
%
|
23.93
|
%
|
10.99
|
%
|
7.95
|
%
|
3.44
|
%
|
2.08
|
%
|
|
|
|
|
||||
2015 - All lines of business
|
17.22
|
%
|
16.89
|
%
|
12.71
|
%
|
9.69
|
%
|
7.60
|
%
|
|
|
|
|
|
|||||
2015 - Workers' compensation
|
13.56
|
%
|
16.89
|
%
|
12.58
|
%
|
9.62
|
%
|
6.64
|
%
|
|
|
|
|
|
|||||
2016 - All lines of business
|
7.84
|
%
|
9.46
|
%
|
8.15
|
%
|
8.80
|
%
|
|
|
|
|
|
|
||||||
2016 - Workers' Compensation
|
9.94
|
%
|
8.63
|
%
|
6.82
|
%
|
9.53
|
%
|
|
|
|
|
|
|
||||||
2017 - All lines of business
|
8.08
|
%
|
7.62
|
%
|
6.69
|
%
|
|
|
|
|
|
|
|
|||||||
2018 - All lines of business
|
13.22
|
%
|
22.54
|
%
|
|
|
|
|
|
|
|
|
||||||||
2018 - General Casualty
|
11.17
|
%
|
21.65
|
%
|
|
|
|
|
|
|
|
|
||||||||
2018 - Workers' Compensation
|
1.87
|
%
|
18.87
|
%
|
|
|
|
|
|
|
|
|
||||||||
2018 - Marine, Aviation & Transit
|
25.75
|
%
|
10.20
|
%
|
|
|
|
|
|
|
|
|
||||||||
2018 - Professional Indemnity/Directors & Officers
|
20.37
|
%
|
14.47
|
%
|
|
|
|
|
|
|
|
|
||||||||
2018 - Motor
|
10.30
|
%
|
38.06
|
%
|
|
|
|
|
|
|
|
|
||||||||
2019 - All lines of business
|
11.69
|
%
|
|
|
|
|
|
|
|
|
|
|||||||||
2019 - General Casualty
|
9.50
|
%
|
|
|
|
|
|
|
|
|
|
|||||||||
2019 - Workers' Compensation
|
3.78
|
%
|
|
|
|
|
|
|
|
|
|
|||||||||
2019 - Professional Indemnity/Directors & Officers
|
21.10
|
%
|
|
|
|
|
|
|
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as at January 1
|
$
|
241,284
|
|
|
$
|
240,873
|
|
|
$
|
212,122
|
|
Less: reinsurance reserves recoverable
|
38,768
|
|
|
40,531
|
|
|
30,009
|
|
|||
Net balance as at January 1
|
202,516
|
|
|
200,342
|
|
|
182,113
|
|
|||
Net incurred losses and LAE:
|
|
|
|
|
|
||||||
Current period
|
85,027
|
|
|
83,627
|
|
|
90,359
|
|
|||
Prior periods
|
(7,751
|
)
|
|
(13,817
|
)
|
|
(20,940
|
)
|
|||
Total net incurred losses and LAE
|
77,276
|
|
|
69,810
|
|
|
69,419
|
|
|||
Net paid losses:
|
|
|
|
|
|
||||||
Current period
|
(34,617
|
)
|
|
(35,537
|
)
|
|
(24,571
|
)
|
|||
Prior periods
|
(43,572
|
)
|
|
(28,969
|
)
|
|
(31,107
|
)
|
|||
Total net paid losses
|
(78,189
|
)
|
|
(64,506
|
)
|
|
(55,678
|
)
|
|||
Effect of exchange rate movement
|
1,253
|
|
|
(3,130
|
)
|
|
4,488
|
|
|||
Net balance as at December 31
|
202,856
|
|
|
202,516
|
|
|
200,342
|
|
|||
Plus: reinsurance reserves recoverable
|
28,816
|
|
|
38,768
|
|
|
40,531
|
|
|||
Balance as at December 31
|
$
|
231,672
|
|
|
$
|
241,284
|
|
|
$
|
240,873
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
|
Prior
Period
|
|
Current
Period
|
|
Total
|
|
Prior
Period
|
|
Current
Period
|
|
Total
|
|
Prior
Period
|
|
Current
Period
|
|
Total
|
||||||||||||||||||
Net losses paid
|
$
|
43,572
|
|
|
$
|
34,617
|
|
|
$
|
78,189
|
|
|
$
|
28,969
|
|
|
$
|
35,537
|
|
|
$
|
64,506
|
|
|
$
|
31,107
|
|
|
$
|
24,571
|
|
|
$
|
55,678
|
|
Net change in case and LAE reserves
|
(13,278
|
)
|
|
16,812
|
|
|
3,534
|
|
|
(10,161
|
)
|
|
16,492
|
|
|
6,331
|
|
|
(13,324
|
)
|
|
21,662
|
|
|
8,338
|
|
|||||||||
Net change in IBNR reserves
|
(38,380
|
)
|
|
33,598
|
|
|
(4,782
|
)
|
|
(27,507
|
)
|
|
31,598
|
|
|
4,091
|
|
|
(35,650
|
)
|
|
43,329
|
|
|
7,679
|
|
|||||||||
Increase (reduction) in estimates of net ultimate losses
|
(8,086
|
)
|
|
85,027
|
|
|
76,941
|
|
|
(8,699
|
)
|
|
83,627
|
|
|
74,928
|
|
|
(17,867
|
)
|
|
89,562
|
|
|
71,695
|
|
|||||||||
Increase in provisions for bad debt
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89
|
|
|
70
|
|
|
159
|
|
|||||||||
Increase (reduction) in provisions for unallocated LAE
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(442
|
)
|
|
727
|
|
|
285
|
|
|||||||||
Amortization of fair value adjustments
|
335
|
|
|
—
|
|
|
335
|
|
|
(5,118
|
)
|
|
—
|
|
|
(5,118
|
)
|
|
(2,720
|
)
|
|
—
|
|
|
(2,720
|
)
|
|||||||||
Net incurred losses and LAE
|
$
|
(7,751
|
)
|
|
$
|
85,027
|
|
|
$
|
77,276
|
|
|
$
|
(13,817
|
)
|
|
$
|
83,627
|
|
|
$
|
69,810
|
|
|
$
|
(20,940
|
)
|
|
$
|
90,359
|
|
|
$
|
69,419
|
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Marine, Aviation and Transit
|
$
|
24,668
|
|
|
$
|
34,156
|
|
|
$
|
58,824
|
|
|
$
|
21,012
|
|
|
$
|
24,829
|
|
|
$
|
45,841
|
|
Binding Authorities
|
31,507
|
|
|
54,039
|
|
|
85,546
|
|
|
29,590
|
|
|
51,984
|
|
|
81,574
|
|
||||||
Reinsurance
|
18,385
|
|
|
29,533
|
|
|
47,918
|
|
|
16,209
|
|
|
23,338
|
|
|
39,547
|
|
||||||
Accident and Health
|
5,460
|
|
|
7,880
|
|
|
13,340
|
|
|
4,735
|
|
|
7,469
|
|
|
12,204
|
|
||||||
Non-Marine Direct and Facultative
|
9,121
|
|
|
10,935
|
|
|
20,056
|
|
|
8,584
|
|
|
9,637
|
|
|
18,221
|
|
||||||
Total
|
$
|
89,141
|
|
|
$
|
136,543
|
|
|
$
|
225,684
|
|
|
$
|
80,130
|
|
|
$
|
117,257
|
|
|
$
|
197,387
|
|
Fair value adjustments
|
|
|
|
|
3,700
|
|
|
|
|
|
|
3,181
|
|
||||||||||
ULAE
|
|
|
|
|
2,288
|
|
|
|
|
|
|
2,288
|
|
||||||||||
Total
|
|
|
|
|
$
|
231,672
|
|
|
|
|
|
|
$
|
202,856
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Marine, Aviation and Transit
|
$
|
32,999
|
|
|
$
|
36,011
|
|
|
$
|
69,010
|
|
|
$
|
21,460
|
|
|
$
|
24,207
|
|
|
$
|
45,667
|
|
Binding Authorities
|
28,512
|
|
|
59,302
|
|
|
87,814
|
|
|
26,601
|
|
|
57,016
|
|
|
83,617
|
|
||||||
Reinsurance
|
18,547
|
|
|
27,653
|
|
|
46,200
|
|
|
15,180
|
|
|
24,823
|
|
|
40,003
|
|
||||||
Accident and Health
|
4,972
|
|
|
6,348
|
|
|
11,320
|
|
|
4,225
|
|
|
5,837
|
|
|
10,062
|
|
||||||
Non-Marine Direct and Facultative
|
9,855
|
|
|
11,207
|
|
|
21,062
|
|
|
8,529
|
|
|
9,389
|
|
|
17,918
|
|
||||||
Total
|
$
|
94,885
|
|
|
$
|
140,521
|
|
|
$
|
235,406
|
|
|
$
|
75,995
|
|
|
$
|
121,272
|
|
|
$
|
197,267
|
|
Fair value adjustments
|
|
|
|
|
3,476
|
|
|
|
|
|
|
2,847
|
|
||||||||||
ULAE
|
|
|
|
|
2,402
|
|
|
|
|
|
|
2,402
|
|
||||||||||
Total
|
|
|
|
|
$
|
241,284
|
|
|
|
|
|
|
$
|
202,516
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
||||||||||||||||||||||||||||||||||||
|
For the Years Ended December 31,
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||||||||
Accident Year
|
2010 (unaudited)
|
2011 (unaudited)
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
IBNR(1)
|
Cumulative Number of Claims
|
|||||||||||||||||||||||
2009 and Prior
|
546,446
|
|
609,275
|
|
593,467
|
|
573,576
|
|
569,959
|
|
564,128
|
|
560,524
|
|
558,768
|
|
556,252
|
|
553,325
|
|
|
2,839
|
|
1,381
|
|
|||||||||||
2010
|
26,782
|
|
64,985
|
|
57,835
|
|
51,698
|
|
47,558
|
|
46,024
|
|
45,540
|
|
44,289
|
|
43,739
|
|
43,723
|
|
|
518
|
|
201
|
|
|||||||||||
2011
|
|
86,326
|
|
84,661
|
|
72,898
|
|
71,104
|
|
69,385
|
|
68,083
|
|
67,358
|
|
66,904
|
|
66,534
|
|
|
991
|
|
252
|
|
||||||||||||
2012
|
|
|
70,259
|
|
57,279
|
|
55,903
|
|
53,723
|
|
51,930
|
|
51,012
|
|
50,541
|
|
50,352
|
|
|
601
|
|
385
|
|
|||||||||||||
2013
|
|
|
|
58,326
|
|
63,710
|
|
57,798
|
|
54,472
|
|
51,706
|
|
52,049
|
|
50,638
|
|
|
1,441
|
|
566
|
|
||||||||||||||
2014
|
|
|
|
|
69,253
|
|
69,500
|
|
66,104
|
|
60,542
|
|
57,667
|
|
56,737
|
|
|
3,104
|
|
932
|
|
|||||||||||||||
2015
|
|
|
|
|
|
69,646
|
|
71,498
|
|
63,530
|
|
60,210
|
|
58,785
|
|
|
6,018
|
|
1,515
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
73,190
|
|
75,318
|
|
70,179
|
|
67,031
|
|
|
10,449
|
|
2,803
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
90,247
|
|
94,984
|
|
91,109
|
|
|
20,400
|
|
5,053
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
85,044
|
|
91,621
|
|
|
37,297
|
|
6,644
|
|
|||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
86,269
|
|
|
33,598
|
|
5,362
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,216,124
|
|
|
$
|
117,257
|
|
25,094
|
|
|||||||||||||||||
(1) Total of IBNR plus expected development on reported losses.
|
|
|
|
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|||||||||||||||||||||||||||||||||
|
For The Years Ended December 31,
|
|
|
|
||||||||||||||||||||||||||||||||
Accident Year
|
2010 (unaudited)
|
2011 (unaudited)
|
2012 (unaudited)
|
2013 (unaudited)
|
2014 (unaudited)
|
2015 (unaudited)
|
2016 (unaudited)
|
2017 (unaudited)
|
2018 (unaudited)
|
2019
|
|
|
|
|||||||||||||||||||||||
2009 and Prior
|
$
|
491,683
|
|
$
|
510,113
|
|
$
|
521,740
|
|
$
|
531,928
|
|
$
|
536,706
|
|
$
|
541,597
|
|
$
|
543,591
|
|
$
|
544,954
|
|
$
|
543,253
|
|
$
|
544,625
|
|
|
|
|
|||
2010
|
11,442
|
|
25,127
|
|
32,223
|
|
36,530
|
|
39,022
|
|
40,049
|
|
40,650
|
|
41,223
|
|
41,386
|
|
41,631
|
|
|
|
|
|||||||||||||
2011
|
|
17,138
|
|
39,997
|
|
52,450
|
|
58,627
|
|
62,560
|
|
63,914
|
|
65,199
|
|
64,669
|
|
65,040
|
|
|
|
|
||||||||||||||
2012
|
|
|
11,228
|
|
31,474
|
|
37,991
|
|
42,152
|
|
44,430
|
|
45,321
|
|
46,901
|
|
47,598
|
|
|
|
|
|||||||||||||||
2013
|
|
|
|
14,579
|
|
32,064
|
|
40,443
|
|
43,511
|
|
45,387
|
|
46,099
|
|
46,637
|
|
|
|
|
||||||||||||||||
2014
|
|
|
|
|
17,596
|
|
34,368
|
|
41,595
|
|
46,879
|
|
48,542
|
|
51,263
|
|
|
|
|
|||||||||||||||||
2015
|
|
|
|
|
|
12,029
|
|
29,687
|
|
38,987
|
|
44,544
|
|
47,704
|
|
|
|
|
||||||||||||||||||
2016
|
|
|
|
|
|
|
13,729
|
|
34,606
|
|
44,273
|
|
47,962
|
|
|
|
|
|||||||||||||||||||
2017
|
|
|
|
|
|
|
|
14,371
|
|
47,723
|
|
56,057
|
|
|
|
|
||||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
13,130
|
|
34,166
|
|
|
|
|
|||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
36,054
|
|
|
|
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,018,737
|
|
|
|
|
||||||||||||||||||||
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
$
|
197,387
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
197,387
|
|
Reinsurance recoverable on unpaid losses
|
28,297
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
225,684
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Atrium
|
24.69
|
%
|
32.30
|
%
|
14.57
|
%
|
8.25
|
%
|
4.69
|
%
|
2.47
|
%
|
1.88
|
%
|
0.63
|
%
|
0.47
|
%
|
0.56
|
%
|
|
2019
|
|
2018
|
|
2017
|
||||||
Balance as at January 1
|
$
|
1,608,697
|
|
|
$
|
1,207,743
|
|
|
$
|
1,059,382
|
|
Less: reinsurance reserves recoverable
|
462,950
|
|
|
452,017
|
|
|
357,231
|
|
|||
Net balance as at January 1
|
1,145,747
|
|
|
755,726
|
|
|
702,151
|
|
|||
Net incurred losses and LAE:
|
|
|
|
|
|
||||||
Current period
|
598,468
|
|
|
578,892
|
|
|
341,628
|
|
|||
Prior periods
|
129,168
|
|
|
94,491
|
|
|
(26,822
|
)
|
|||
Total net incurred losses and LAE
|
727,636
|
|
|
673,383
|
|
|
314,806
|
|
|||
Net paid losses:
|
|
|
|
|
|
||||||
Current period
|
(96,261
|
)
|
|
(150,778
|
)
|
|
(54,867
|
)
|
|||
Prior periods
|
(435,372
|
)
|
|
(326,352
|
)
|
|
(252,926
|
)
|
|||
Total net paid losses
|
(531,633
|
)
|
|
(477,130
|
)
|
|
(307,793
|
)
|
|||
Effect of exchange rate movement
|
87
|
|
|
(9,481
|
)
|
|
15,169
|
|
|||
Acquired on purchase of subsidiaries
|
—
|
|
|
192,981
|
|
|
—
|
|
|||
Assumed business
|
—
|
|
|
10,268
|
|
|
31,393
|
|
|||
Ceded business
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net balance as at December 31
|
1,341,837
|
|
|
1,145,747
|
|
|
755,726
|
|
|||
Plus: reinsurance reserves recoverable
|
537,291
|
|
|
462,950
|
|
|
452,017
|
|
|||
Balance as at December 31
|
$
|
1,879,128
|
|
|
$
|
1,608,697
|
|
|
$
|
1,207,743
|
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||||||||||||||
|
Prior
Period |
|
Current
Period |
|
Total
|
|
Prior
Period |
|
Current
Period |
|
Total
|
|
Prior
Period |
|
Current
Period |
|
Total
|
||||||||||||||||||
Net losses paid
|
$
|
435,372
|
|
|
$
|
96,261
|
|
|
$
|
531,633
|
|
|
$
|
326,352
|
|
|
$
|
150,778
|
|
|
$
|
477,130
|
|
|
$
|
252,926
|
|
|
$
|
54,867
|
|
|
$
|
307,793
|
|
Net change in case and LAE reserves
|
(85,983
|
)
|
|
111,950
|
|
|
25,967
|
|
|
(81,491
|
)
|
|
157,378
|
|
|
75,887
|
|
|
(63,785
|
)
|
|
95,470
|
|
|
31,685
|
|
|||||||||
Net change in IBNR reserves
|
(214,787
|
)
|
|
381,214
|
|
|
166,427
|
|
|
(144,212
|
)
|
|
258,091
|
|
|
113,879
|
|
|
(208,244
|
)
|
|
184,704
|
|
|
(23,540
|
)
|
|||||||||
Increase (reduction) in estimates of net ultimate losses
|
134,602
|
|
|
589,425
|
|
|
724,027
|
|
|
100,649
|
|
|
566,247
|
|
|
666,896
|
|
|
(19,103
|
)
|
|
335,041
|
|
|
315,938
|
|
|||||||||
Increase (reduction) in provisions for unallocated LAE
|
(5,602
|
)
|
|
9,043
|
|
|
3,441
|
|
|
(5,892
|
)
|
|
12,645
|
|
|
6,753
|
|
|
(6,774
|
)
|
|
6,587
|
|
|
(187
|
)
|
|||||||||
Amortization of fair value adjustments
|
168
|
|
|
—
|
|
|
168
|
|
|
(266
|
)
|
|
—
|
|
|
(266
|
)
|
|
(945
|
)
|
|
—
|
|
|
(945
|
)
|
|||||||||
Net incurred losses and LAE
|
$
|
129,168
|
|
|
$
|
598,468
|
|
|
$
|
727,636
|
|
|
$
|
94,491
|
|
|
$
|
578,892
|
|
|
$
|
673,383
|
|
|
$
|
(26,822
|
)
|
|
$
|
341,628
|
|
|
$
|
314,806
|
|
|
2019
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Casualty
|
$
|
191,317
|
|
|
$
|
481,473
|
|
|
$
|
672,790
|
|
|
$
|
156,086
|
|
|
$
|
422,186
|
|
|
$
|
578,272
|
|
Marine
|
195,068
|
|
|
173,319
|
|
|
368,387
|
|
|
162,073
|
|
|
138,586
|
|
|
300,659
|
|
||||||
Property
|
367,258
|
|
|
152,514
|
|
|
519,772
|
|
|
158,156
|
|
|
92,655
|
|
|
250,811
|
|
||||||
Aerospace
|
79,249
|
|
|
33,000
|
|
|
112,249
|
|
|
47,796
|
|
|
22,862
|
|
|
70,658
|
|
||||||
Workers' Compensation
|
55,902
|
|
|
122,047
|
|
|
177,949
|
|
|
36,673
|
|
|
74,661
|
|
|
111,334
|
|
||||||
Total
|
$
|
888,794
|
|
|
$
|
962,353
|
|
|
$
|
1,851,147
|
|
|
$
|
560,784
|
|
|
$
|
750,950
|
|
|
$
|
1,311,734
|
|
Fair value adjustments
|
|
|
|
|
(522
|
)
|
|
|
|
|
|
1,600
|
|
||||||||||
ULAE
|
|
|
|
|
28,503
|
|
|
|
|
|
|
28,503
|
|
||||||||||
Total
|
|
|
|
|
$
|
1,879,128
|
|
|
|
|
|
|
$
|
1,341,837
|
|
|
2018
|
||||||||||||||||||||||
|
Gross
|
|
Net
|
||||||||||||||||||||
|
OLR
|
|
IBNR
|
|
Total
|
|
OLR
|
|
IBNR
|
|
Total
|
||||||||||||
|
(in thousands of U.S. dollars)
|
||||||||||||||||||||||
Casualty
|
$
|
177,432
|
|
|
$
|
331,432
|
|
|
$
|
508,864
|
|
|
$
|
137,828
|
|
|
$
|
282,026
|
|
|
$
|
419,854
|
|
Marine
|
185,084
|
|
|
182,453
|
|
|
367,537
|
|
|
163,889
|
|
|
133,426
|
|
|
297,315
|
|
||||||
Property
|
317,102
|
|
|
123,511
|
|
|
440,613
|
|
|
151,774
|
|
|
65,522
|
|
|
217,296
|
|
||||||
Aerospace
|
67,203
|
|
|
40,416
|
|
|
107,619
|
|
|
45,879
|
|
|
36,167
|
|
|
82,046
|
|
||||||
Workers' Compensation
|
49,373
|
|
|
110,082
|
|
|
159,455
|
|
|
33,759
|
|
|
68,969
|
|
|
102,728
|
|
||||||
Total
|
$
|
796,194
|
|
|
$
|
787,894
|
|
|
$
|
1,584,088
|
|
|
$
|
533,129
|
|
|
$
|
586,110
|
|
|
$
|
1,119,239
|
|
Fair value adjustments
|
|
|
|
|
(467
|
)
|
|
|
|
|
|
1,432
|
|
||||||||||
ULAE
|
|
|
|
|
25,076
|
|
|
|
|
|
|
25,076
|
|
||||||||||
Total
|
|
|
|
|
$
|
1,608,697
|
|
|
|
|
|
|
$
|
1,145,747
|
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited)
|
|
2015
(Unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
IBNR(1)
|
|
Cumulative Number of Claims
|
|||||||||||||||
2009 and Prior
|
|
$
|
82,278
|
|
|
$
|
82,329
|
|
|
$
|
82,400
|
|
|
$
|
82,324
|
|
|
$
|
82,535
|
|
|
$
|
82,574
|
|
|
$
|
—
|
|
|
2,543
|
|
2010
|
|
16,623
|
|
|
17,769
|
|
|
17,856
|
|
|
18,538
|
|
|
18,556
|
|
|
18,612
|
|
|
119
|
|
|
729
|
|
|||||||
2011
|
|
21,101
|
|
|
25,435
|
|
|
25,745
|
|
|
24,971
|
|
|
25,422
|
|
|
26,159
|
|
|
765
|
|
|
2,035
|
|
|||||||
2012
|
|
56,891
|
|
|
48,251
|
|
|
43,936
|
|
|
40,095
|
|
|
39,477
|
|
|
42,055
|
|
|
3,059
|
|
|
3,128
|
|
|||||||
2013
|
|
72,771
|
|
|
66,888
|
|
|
77,756
|
|
|
76,172
|
|
|
78,788
|
|
|
87,575
|
|
|
9,817
|
|
|
4,998
|
|
|||||||
2014
|
|
91,369
|
|
|
92,793
|
|
|
92,812
|
|
|
90,335
|
|
|
90,588
|
|
|
101,748
|
|
|
19,074
|
|
|
5,734
|
|
|||||||
2015
|
|
|
|
105,135
|
|
|
111,067
|
|
|
110,179
|
|
|
123,208
|
|
|
131,156
|
|
|
22,056
|
|
|
4,744
|
|
||||||||
2016
|
|
|
|
|
|
125,367
|
|
|
129,130
|
|
|
140,601
|
|
|
169,207
|
|
|
39,548
|
|
|
4,467
|
|
|||||||||
2017
|
|
|
|
|
|
|
|
137,614
|
|
|
162,599
|
|
|
194,259
|
|
|
64,639
|
|
|
4,830
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
159,324
|
|
|
181,499
|
|
|
90,672
|
|
|
3,902
|
||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
198,218
|
|
|
172,437
|
|
|
2,780
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,233,062
|
|
|
$
|
422,186
|
|
|
39,890
|
|
|||||||||
(1) Total of IBNR plus expected development on reported losses.
|
|||||||||||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||||||
Accident Year
|
|
2014
(Unaudited)
|
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
|
|
|
|||||||||||||||
2009 and Prior
|
|
$
|
82,257
|
|
|
$
|
82,319
|
|
|
$
|
82,395
|
|
|
$
|
82,318
|
|
|
$
|
82,534
|
|
|
$
|
82,546
|
|
|
|
|
|
|||
2010
|
|
15,555
|
|
|
17,768
|
|
|
17,855
|
|
|
18,537
|
|
|
18,555
|
|
|
18,466
|
|
|
|
|
|
|||||||||
2011
|
|
15,745
|
|
|
21,088
|
|
|
23,731
|
|
|
24,294
|
|
|
24,925
|
|
|
25,389
|
|
|
|
|
|
|||||||||
2012
|
|
18,412
|
|
|
29,503
|
|
|
32,694
|
|
|
33,943
|
|
|
36,162
|
|
|
36,076
|
|
|
|
|
|
|||||||||
2013
|
|
23,054
|
|
|
30,448
|
|
|
50,137
|
|
|
54,688
|
|
|
60,389
|
|
|
69,703
|
|
|
|
|
|
|||||||||
2014
|
|
5,769
|
|
|
21,911
|
|
|
37,607
|
|
|
50,767
|
|
|
64,672
|
|
|
68,827
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
8,088
|
|
|
27,292
|
|
|
49,014
|
|
|
68,194
|
|
|
92,327
|
|
|
|
|
|
||||||||||
2016
|
|
|
|
|
|
4,642
|
|
|
42,935
|
|
|
74,921
|
|
|
97,715
|
|
|
|
|
|
|||||||||||
2017
|
|
|
|
|
|
|
|
9,997
|
|
|
50,705
|
|
|
107,625
|
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
20,649
|
|
|
47,973
|
|
|
|
|
|
|||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
8,143
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
654,790
|
|
|
|
|
|
||||||||||||
|
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
|
$
|
578,272
|
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
578,272
|
|
Reinsurance recoverable on unpaid losses
|
94,518
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
672,790
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Casualty
|
5.87
|
%
|
17.83
|
%
|
17.73
|
%
|
17.98
|
%
|
13.06
|
%
|
5.94
|
%
|
3.72
|
%
|
1.44
|
%
|
0.71
|
%
|
(0.23
|
)%
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
For The Years Ended December 31,
|
|
As of December 31, 2019
|
||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited)
|
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
IBNR(1)
|
|
Cumulative Number of Claims
|
||||||||||||||
2009 and Prior
|
|
$
|
27,070
|
|
|
$
|
27,002
|
|
|
$
|
27,018
|
|
|
$
|
27,050
|
|
|
$
|
27,076
|
|
|
$
|
27,100
|
|
|
$
|
—
|
|
|
1,991
|
2010
|
|
22,347
|
|
|
19,270
|
|
|
19,114
|
|
|
19,176
|
|
|
19,040
|
|
|
19,050
|
|
|
144
|
|
|
1,029
|
|||||||
2011
|
|
29,527
|
|
|
27,753
|
|
|
27,330
|
|
|
27,371
|
|
|
27,715
|
|
|
33,538
|
|
|
514
|
|
|
1,961
|
|||||||
2012
|
|
47,957
|
|
|
51,418
|
|
|
51,074
|
|
|
49,813
|
|
|
50,618
|
|
|
59,597
|
|
|
405
|
|
|
2,422
|
|||||||
2013
|
|
62,904
|
|
|
55,154
|
|
|
52,938
|
|
|
53,913
|
|
|
57,224
|
|
|
46,309
|
|
|
243
|
|
|
2,226
|
|||||||
2014
|
|
50,079
|
|
|
53,452
|
|
|
48,450
|
|
|
54,958
|
|
|
50,576
|
|
|
50,026
|
|
|
833
|
|
|
4,003
|
|||||||
2015
|
|
|
|
71,004
|
|
|
70,033
|
|
|
79,494
|
|
|
81,088
|
|
|
82,698
|
|
|
1,082
|
|
|
5,742
|
||||||||
2016
|
|
|
|
|
|
82,486
|
|
|
83,070
|
|
|
87,169
|
|
|
86,774
|
|
|
4,214
|
|
|
6,904
|
|||||||||
2017
|
|
|
|
|
|
|
|
130,700
|
|
|
158,785
|
|
|
166,042
|
|
|
10,802
|
|
|
8,524
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
167,902
|
|
|
167,565
|
|
|
33,836
|
|
|
9,881
|
|||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
163,412
|
|
|
86,513
|
|
|
5,219
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
902,111
|
|
|
$
|
138,586
|
|
|
49,902
|
|||||||||
(1) Total of IBNR plus expected development on reported losses.
|
||||||||||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
||||||||||||||||||||||||||
|
|
|
|
For The Years Ended December 31,
|
|
|
|
|
||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited)
|
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
|
|
|
||||||||||||||
2008 and Prior
|
|
$
|
26,939
|
|
|
$
|
26,990
|
|
|
$
|
27,015
|
|
|
$
|
27,042
|
|
|
$
|
27,077
|
|
|
$
|
27,092
|
|
|
|
|
|
||
2009
|
|
16,300
|
|
|
18,324
|
|
|
18,403
|
|
|
18,372
|
|
|
18,437
|
|
|
18,539
|
|
|
|
|
|
||||||||
2010
|
|
29,395
|
|
|
31,152
|
|
|
32,397
|
|
|
32,643
|
|
|
32,803
|
|
|
32,558
|
|
|
|
|
|
||||||||
2011
|
|
49,727
|
|
|
53,711
|
|
|
55,446
|
|
|
56,589
|
|
|
57,206
|
|
|
57,711
|
|
|
|
|
|
||||||||
2012
|
|
12,529
|
|
|
21,213
|
|
|
25,135
|
|
|
27,237
|
|
|
29,071
|
|
|
38,733
|
|
|
|
|
|
||||||||
2013
|
|
10,878
|
|
|
24,813
|
|
|
32,332
|
|
|
36,773
|
|
|
42,420
|
|
|
43,789
|
|
|
|
|
|
||||||||
2014
|
|
|
|
10,871
|
|
|
30,562
|
|
|
50,062
|
|
|
56,154
|
|
|
59,478
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
|
|
12,131
|
|
|
41,696
|
|
|
57,265
|
|
|
72,475
|
|
|
|
|
|
||||||||||
2016
|
|
|
|
|
|
|
|
25,258
|
|
|
68,952
|
|
|
108,000
|
|
|
|
|
|
|||||||||||
2017
|
|
|
|
|
|
|
|
|
|
41,427
|
|
|
104,825
|
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
|
|
38,252
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
601,452
|
|
|
|
|
|
|||||||||||
|
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
|
$
|
300,659
|
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
300,659
|
|
Reinsurance recoverable on unpaid losses
|
67,728
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
368,387
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Marine
|
18.70
|
%
|
29.98
|
%
|
19.76
|
%
|
9.79
|
%
|
5.60
|
%
|
3.86
|
%
|
4.63
|
%
|
0.32
|
%
|
(0.09
|
)%
|
0.30
|
%
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
As of December 31, 2019
|
||||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited) |
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
IBNR(1)
|
|
Cumulative Number of Claims
|
||||||||||||||
2009 and Prior
|
|
$
|
113,828
|
|
|
$
|
113,118
|
|
|
$
|
113,206
|
|
|
$
|
113,696
|
|
|
$
|
114,633
|
|
|
$
|
114,991
|
|
|
$
|
—
|
|
|
2,901
|
2010
|
|
74,893
|
|
|
73,437
|
|
|
72,072
|
|
|
72,134
|
|
|
72,146
|
|
|
72,088
|
|
|
—
|
|
|
1,557
|
|||||||
2011
|
|
91,161
|
|
|
89,708
|
|
|
89,752
|
|
|
89,441
|
|
|
89,359
|
|
|
89,708
|
|
|
4
|
|
|
1,621
|
|||||||
2012
|
|
65,824
|
|
|
61,707
|
|
|
60,683
|
|
|
61,637
|
|
|
58,721
|
|
|
58,985
|
|
|
12
|
|
|
1,501
|
|||||||
2013
|
|
78,145
|
|
|
65,152
|
|
|
64,804
|
|
|
63,959
|
|
|
62,177
|
|
|
60,582
|
|
|
13
|
|
|
1,959
|
|||||||
2014
|
|
58,975
|
|
|
43,848
|
|
|
43,169
|
|
|
43,603
|
|
|
41,563
|
|
|
40,818
|
|
|
1,082
|
|
|
2,094
|
|||||||
2015
|
|
|
|
78,993
|
|
|
76,550
|
|
|
70,359
|
|
|
70,244
|
|
|
71,189
|
|
|
3,964
|
|
|
5,720
|
||||||||
2016
|
|
|
|
|
|
87,562
|
|
|
95,557
|
|
|
95,151
|
|
|
95,038
|
|
|
2,672
|
|
|
6,791
|
|||||||||
2017
|
|
|
|
|
|
|
|
155,484
|
|
|
171,665
|
|
|
183,584
|
|
|
6,554
|
|
|
8,034
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
165,311
|
|
|
178,800
|
|
|
8,433
|
|
|
6,653
|
|||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
122,118
|
|
|
69,922
|
|
|
3,277
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
1,087,901
|
|
|
$
|
92,656
|
|
|
42,108
|
|||||||||
(1) Total of IBNR plus expected development on reported losses.
|
||||||||||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|
||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited) |
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
|
|
|
||||||||||||||
2009 and Prior
|
|
$
|
112,693
|
|
|
$
|
112,957
|
|
|
$
|
112,987
|
|
|
$
|
113,237
|
|
|
$
|
113,143
|
|
|
$
|
113,338
|
|
|
|
|
|
||
2010
|
|
69,070
|
|
|
71,958
|
|
|
72,069
|
|
|
72,131
|
|
|
72,148
|
|
|
71,969
|
|
|
|
|
|
||||||||
2011
|
|
87,411
|
|
|
88,608
|
|
|
89,113
|
|
|
89,366
|
|
|
89,345
|
|
|
89,387
|
|
|
|
|
|
||||||||
2012
|
|
48,103
|
|
|
52,168
|
|
|
54,308
|
|
|
55,274
|
|
|
55,474
|
|
|
57,753
|
|
|
|
|
|
||||||||
2013
|
|
30,880
|
|
|
46,285
|
|
|
51,086
|
|
|
53,172
|
|
|
59,277
|
|
|
60,416
|
|
|
|
|
|
||||||||
2014
|
|
5,500
|
|
|
18,830
|
|
|
31,617
|
|
|
34,563
|
|
|
36,106
|
|
|
37,240
|
|
|
|
|
|
||||||||
2015
|
|
|
|
10,433
|
|
|
28,652
|
|
|
55,372
|
|
|
63,880
|
|
|
64,764
|
|
|
|
|
|
|||||||||
2016
|
|
|
|
|
|
26,838
|
|
|
58,035
|
|
|
75,387
|
|
|
85,023
|
|
|
|
|
|
||||||||||
2017
|
|
|
|
|
|
|
|
37,410
|
|
|
98,267
|
|
|
139,555
|
|
|
|
|
|
|||||||||||
2018
|
|
|
|
|
|
|
|
|
|
59,187
|
|
|
98,065
|
|
|
|
|
|
||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
19,580
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
837,090
|
|
|
|
|
|
|||||||||||
|
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
|
$
|
250,811
|
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
250,811
|
|
Reinsurance recoverable on unpaid losses
|
268,961
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
519,772
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Property
|
20.98
|
%
|
29.19
|
%
|
27.01
|
%
|
8.82
|
%
|
2.69
|
%
|
3.22
|
%
|
0.54
|
%
|
1.04
|
%
|
—
|
%
|
0.20
|
%
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited) |
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
IBNR(1)
|
|
Cumulative Number of Claims
|
|||||||||||||||
2009 and Prior
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2010
|
|
18,441
|
|
|
18,073
|
|
|
18,382
|
|
|
18,896
|
|
|
18,970
|
|
|
18,772
|
|
|
17
|
|
|
579
|
|
|||||||
2011
|
|
58,786
|
|
|
57,257
|
|
|
57,681
|
|
|
58,114
|
|
|
59,647
|
|
|
58,770
|
|
|
61
|
|
|
2,197
|
|
|||||||
2012
|
|
55,675
|
|
|
55,370
|
|
|
56,212
|
|
|
56,159
|
|
|
57,450
|
|
|
57,185
|
|
|
125
|
|
|
2,421
|
|
|||||||
2013
|
|
72,098
|
|
|
70,180
|
|
|
70,511
|
|
|
74,900
|
|
|
77,393
|
|
|
76,964
|
|
|
274
|
|
|
2,568
|
|
|||||||
2014
|
|
65,208
|
|
|
53,541
|
|
|
53,553
|
|
|
52,341
|
|
|
54,408
|
|
|
48,657
|
|
|
464
|
|
|
2,861
|
|
|||||||
2015
|
|
|
|
66,335
|
|
|
69,499
|
|
|
72,519
|
|
|
73,183
|
|
|
71,196
|
|
|
1,318
|
|
|
2,975
|
|
||||||||
2016
|
|
|
|
|
|
37,741
|
|
|
45,019
|
|
|
48,180
|
|
|
45,380
|
|
|
1,714
|
|
|
2,880
|
|
|||||||||
2017
|
|
|
|
|
|
|
|
31,380
|
|
|
35,075
|
|
|
56,354
|
|
|
3,142
|
|
|
3,100
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
59,498
|
|
|
55,986
|
|
|
3,980
|
|
|
2,891
|
|
|||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
45,483
|
|
|
11,766
|
|
|
1,232
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
534,747
|
|
|
$
|
22,861
|
|
|
23,704
|
|
|||||||||
(1) Total of IBNR plus expected development on reported losses
|
|||||||||||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
For The Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited) |
|
2015 (unaudited)
|
|
2016 (unaudited)
|
|
2017 (unaudited)
|
|
2018 (unaudited)
|
|
2019
|
|
|
|
|
|||||||||||||||
2009 and Prior
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|||
2010
|
|
15,396
|
|
|
16,539
|
|
|
17,145
|
|
|
18,209
|
|
|
18,494
|
|
|
18,548
|
|
|
|
|
|
|||||||||
2011
|
|
53,821
|
|
|
55,179
|
|
|
55,858
|
|
|
56,435
|
|
|
57,028
|
|
|
57,555
|
|
|
|
|
|
|||||||||
2012
|
|
45,897
|
|
|
49,332
|
|
|
52,142
|
|
|
53,622
|
|
|
54,812
|
|
|
55,585
|
|
|
|
|
|
|||||||||
2013
|
|
50,842
|
|
|
59,850
|
|
|
63,439
|
|
|
68,775
|
|
|
72,770
|
|
|
73,511
|
|
|
|
|
|
|||||||||
2014
|
|
17,297
|
|
|
31,147
|
|
|
38,426
|
|
|
40,678
|
|
|
43,801
|
|
|
43,779
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
32,388
|
|
|
52,185
|
|
|
60,820
|
|
|
64,000
|
|
|
66,293
|
|
|
|
|
|
||||||||||
2016
|
|
|
|
|
|
11,815
|
|
|
31,858
|
|
|
37,037
|
|
|
39,361
|
|
|
|
|
|
|||||||||||
2017
|
|
|
|
|
|
|
|
10,398
|
|
|
28,221
|
|
|
45,946
|
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
25,552
|
|
|
40,304
|
|
|
|
|
|
|||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
23,207
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
464,089
|
|
|
|
|
|
||||||||||||
|
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
|
$
|
70,658
|
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
70,658
|
|
Reinsurance recoverable on unpaid losses
|
41,591
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
112,249
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Aerospace
|
37.03
|
%
|
31.40
|
%
|
16.33
|
%
|
4.98
|
%
|
4.76
|
%
|
3.00
|
%
|
1.81
|
%
|
2.68
|
%
|
1.21
|
%
|
0.29
|
%
|
Incurred Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
For The Years Ended December 31,
|
|
As of December 31, 2019
|
|||||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited)
|
|
2015
(unaudited)
|
|
2016
(unaudited)
|
|
2017
(unaudited)
|
|
2018
(unaudited)
|
|
2019
|
|
IBNR(1)
|
|
Cumulative Number of Claims
|
|||||||||||||||
2009 and Prior
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
—
|
|
2010
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
2011
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
2014
|
|
15,607
|
|
|
17,199
|
|
|
18,290
|
|
|
15,662
|
|
|
15,203
|
|
|
14,873
|
|
|
1,421
|
|
|
1,062
|
|
|||||||
2015
|
|
|
|
54,977
|
|
|
55,505
|
|
|
50,103
|
|
|
47,338
|
|
|
45,812
|
|
|
4,905
|
|
|
2,522
|
|
||||||||
2016
|
|
|
|
|
|
62,942
|
|
|
54,121
|
|
|
54,793
|
|
|
55,150
|
|
|
9,101
|
|
|
2,507
|
|
|||||||||
2017
|
|
|
|
|
|
|
|
43,366
|
|
|
39,089
|
|
|
29,676
|
|
|
6,037
|
|
|
2,110
|
|
||||||||||
2018
|
|
|
|
|
|
|
|
|
|
44,615
|
|
|
39,247
|
|
|
13,672
|
|
|
2,820
|
|
|||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
56,754
|
|
|
39,525
|
|
|
2,860
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
241,512
|
|
|
$
|
74,661
|
|
|
13,881
|
|
|||||||||
(1) Total of IBNR plus expected development on reported losses.
|
|||||||||||||||||||||||||||||||
Cumulative Paid Losses and Allocated Loss Adjustment Expenses, Net of Reinsurance
|
|
|
|
|
|||||||||||||||||||||||||||
|
|
|
|
For The Years Ended December 31,
|
|
|
|
|
|||||||||||||||||||||||
Accident Year
|
|
2014
(unaudited)
|
|
2015
(unaudited)
|
|
2016
(unaudited)
|
|
2017
(unaudited)
|
|
2018
(unaudited)
|
|
2019
|
|
|
|
|
|||||||||||||||
2009 and Prior
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
|
|||
2010
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||||
2011
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||||
2012
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||||
2013
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
|
|
|||||||||
2014
|
|
1,491
|
|
|
6,079
|
|
|
9,279
|
|
|
11,431
|
|
|
12,243
|
|
|
12,617
|
|
|
|
|
|
|||||||||
2015
|
|
|
|
6,361
|
|
|
20,194
|
|
|
30,439
|
|
|
35,311
|
|
|
37,385
|
|
|
|
|
|
||||||||||
2016
|
|
|
|
|
|
7,953
|
|
|
23,428
|
|
|
32,739
|
|
|
39,333
|
|
|
|
|
|
|||||||||||
2017
|
|
|
|
|
|
|
|
5,477
|
|
|
13,509
|
|
|
18,899
|
|
|
|
|
|
||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
4,508
|
|
|
15,064
|
|
|
|
|
|
|||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
6,880
|
|
|
|
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
$
|
130,178
|
|
|
|
|
|
||||||||||||
|
|
|
|
|
|
Total outstanding liabilities for unpaid losses and LAE, net of reinsurance
|
|
$
|
111,334
|
|
|
|
|
|
|
2019
|
||
Liabilities for unpaid losses and allocated LAE, net of reinsurance
|
$
|
111,334
|
|
Reinsurance recoverable on unpaid losses
|
66,615
|
|
|
Gross liability for unpaid losses and LAE before unallocated loss adjustment expenses and fair value adjustments
|
$
|
177,949
|
|
|
Average Annual Percentage Payout of Incurred Losses by Age, Net of Reinsurance
|
|||||||||||||||||||
|
Year 1
|
Year 2
|
Year 3
|
Year 4
|
Year 5
|
Year 6
|
Year 7
|
Year 8
|
Year 9
|
Year 10
|
||||||||||
Workers' compensation
|
13.40
|
%
|
28.61
|
%
|
19.73
|
%
|
12.35
|
%
|
4.99
|
%
|
2.51
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
|
2019
|
|
2018
|
||||
Defendant asbestos and environmental liabilities:
|
|
|
|
||||
Defendant asbestos liabilities
|
$
|
1,100,593
|
|
|
$
|
265,975
|
|
Defendant environmental liabilities
|
10,279
|
|
|
2,152
|
|
||
Estimated future expenses
|
51,637
|
|
|
19,843
|
|
||
Fair value adjustments
|
(314,824
|
)
|
|
(84,650
|
)
|
||
Defendant asbestos and environmental liabilities
|
847,685
|
|
|
203,320
|
|
||
|
|
|
|
||||
Insurance balances recoverable:
|
|
|
|
||||
Insurance recoveries related to defendant asbestos and environmental liabilities
|
549,593
|
|
|
183,676
|
|
||
Fair value adjustments
|
(100,738
|
)
|
|
(47,868
|
)
|
||
Insurance balances recoverable
|
448,855
|
|
|
135,808
|
|
||
|
|
|
|
||||
Net liabilities relating to defendant asbestos and environmental exposures
|
$
|
398,830
|
|
|
$
|
67,512
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Balance as at January 1
|
203,320
|
|
|
219,164
|
|
|
234,020
|
|
Less: Insurance balances recoverable
|
135,808
|
|
|
122,326
|
|
|
133,032
|
|
Net balance as at January 1
|
67,512
|
|
|
96,838
|
|
|
100,988
|
|
Total net paid claims
|
(13,708
|
)
|
|
(6,351
|
)
|
|
(6,927
|
)
|
Amounts recorded in other income (expense):
|
|
|
|
|
|
|||
Net change in actuarial estimates
|
(4,263
|
)
|
|
(23,221
|
)
|
|
2,800
|
|
Amortization of fair value adjustments
|
13,500
|
|
|
246
|
|
|
(23
|
)
|
Total other expense (income)
|
9,237
|
|
|
(22,975
|
)
|
|
2,777
|
|
Acquired on purchase of subsidiaries
|
335,789
|
|
|
—
|
|
|
—
|
|
Net balance as at December 31
|
398,830
|
|
|
67,512
|
|
|
96,838
|
|
Plus: Insurance balances recoverable
|
448,855
|
|
|
135,808
|
|
|
122,326
|
|
Balance as at December 31
|
847,685
|
|
|
203,320
|
|
|
219,164
|
|
•
|
Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Valuation adjustments and block discounts are not applied to Level 1 instruments.
|
•
|
Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data.
|
•
|
Level 3 - Valuations based on unobservable inputs where there is little or no market activity. Unadjusted third party pricing sources or management's assumptions and internal valuation models may be used to determine the fair values.
|
|
|
December 31, 2019
|
||||||||||||||||||
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Fair Value Based on NAV as Practical Expedient
|
|
Total Fair
Value |
||||||||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency
|
|
$
|
—
|
|
|
$
|
736,043
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
736,043
|
|
U.K. government
|
|
—
|
|
|
161,772
|
|
|
—
|
|
|
—
|
|
|
161,772
|
|
|||||
Other government
|
|
—
|
|
|
702,857
|
|
|
—
|
|
|
—
|
|
|
702,857
|
|
|||||
Corporate
|
|
—
|
|
|
5,697,067
|
|
|
—
|
|
|
—
|
|
|
5,697,067
|
|
|||||
Municipal
|
|
—
|
|
|
167,882
|
|
|
—
|
|
|
—
|
|
|
167,882
|
|
|||||
Residential mortgage-backed
|
|
—
|
|
|
471,836
|
|
|
—
|
|
|
—
|
|
|
471,836
|
|
|||||
Commercial mortgage-backed
|
|
—
|
|
|
900,029
|
|
|
—
|
|
|
—
|
|
|
900,029
|
|
|||||
Asset-backed
|
|
—
|
|
|
775,402
|
|
|
—
|
|
|
—
|
|
|
775,402
|
|
|||||
|
|
$
|
—
|
|
|
$
|
9,612,888
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9,612,888
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other assets included within funds held - directly managed
|
|
—
|
|
|
14,207
|
|
|
—
|
|
|
—
|
|
|
14,207
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Publicly traded equity investments
|
|
$
|
297,310
|
|
|
$
|
30,565
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
327,875
|
|
Exchange-traded funds
|
|
133,047
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
133,047
|
|
|||||
Privately held equity investments
|
|
—
|
|
|
—
|
|
|
268,799
|
|
|
—
|
|
|
268,799
|
|
|||||
|
|
$
|
430,357
|
|
|
$
|
30,565
|
|
|
$
|
268,799
|
|
|
$
|
—
|
|
|
$
|
729,721
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedge funds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,121,904
|
|
|
$
|
1,121,904
|
|
Fixed income funds
|
|
—
|
|
|
398,143
|
|
|
—
|
|
|
82,896
|
|
|
481,039
|
|
|||||
Equity funds
|
|
—
|
|
|
111,040
|
|
|
—
|
|
|
299,109
|
|
|
410,149
|
|
|||||
Private equity funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
329,885
|
|
|
329,885
|
|
|||||
CLO equities
|
|
—
|
|
|
—
|
|
|
87,555
|
|
|
—
|
|
|
87,555
|
|
|||||
CLO equity funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
87,509
|
|
|
87,509
|
|
|||||
Other
|
|
—
|
|
|
34
|
|
|
314
|
|
|
6,031
|
|
|
6,379
|
|
|||||
|
|
$
|
—
|
|
|
$
|
509,217
|
|
|
$
|
87,869
|
|
|
$
|
1,927,334
|
|
|
$
|
2,524,420
|
|
Total Investments
|
|
$
|
430,357
|
|
|
$
|
10,166,877
|
|
|
$
|
356,668
|
|
|
$
|
1,927,334
|
|
|
$
|
12,881,236
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
173,892
|
|
|
$
|
222,191
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
396,083
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance balances recoverable on paid and unpaid losses:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
695,518
|
|
|
$
|
—
|
|
|
$
|
695,518
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives qualifying as hedging
|
|
$
|
—
|
|
|
$
|
642
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
642
|
|
Derivatives not qualifying as hedges
|
|
$
|
—
|
|
|
$
|
1,369
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,369
|
|
Derivative instruments
|
|
$
|
—
|
|
|
$
|
2,011
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,011
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and LAE:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,621,122
|
|
|
$
|
—
|
|
|
$
|
2,621,122
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives qualifying as hedging
|
|
$
|
—
|
|
|
$
|
11,452
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
11,452
|
|
Derivatives not qualifying as hedges
|
|
$
|
—
|
|
|
$
|
4,106
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,106
|
|
Derivative instruments
|
|
$
|
—
|
|
|
$
|
15,558
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
15,558
|
|
|
|
December 31, 2018
|
||||||||||||||||||
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant
Other Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
|
Fair Value Based on NAV as Practical Expedient
|
|
Total Fair
Value |
||||||||||
Investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Fixed maturity investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. government and agency
|
|
$
|
—
|
|
|
$
|
510,245
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
510,245
|
|
U.K government
|
|
—
|
|
|
300,631
|
|
|
—
|
|
|
—
|
|
|
300,631
|
|
|||||
Other government
|
|
—
|
|
|
793,810
|
|
|
—
|
|
|
—
|
|
|
793,810
|
|
|||||
Corporate
|
|
—
|
|
|
4,802,454
|
|
|
37,386
|
|
|
—
|
|
|
4,839,840
|
|
|||||
Municipal
|
|
—
|
|
|
130,265
|
|
|
—
|
|
|
—
|
|
|
130,265
|
|
|||||
Residential mortgage-backed
|
|
—
|
|
|
773,557
|
|
|
—
|
|
|
—
|
|
|
773,557
|
|
|||||
Commercial mortgage-backed
|
|
—
|
|
|
705,674
|
|
|
7,389
|
|
|
—
|
|
|
713,063
|
|
|||||
Asset-backed
|
|
—
|
|
|
627,360
|
|
|
9,121
|
|
|
—
|
|
|
636,481
|
|
|||||
|
|
$
|
—
|
|
|
$
|
8,643,996
|
|
|
$
|
53,896
|
|
|
$
|
—
|
|
|
$
|
8,697,892
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other assets included within funds held - directly managed
|
|
$
|
—
|
|
|
$
|
14,780
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
14,780
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Publicly traded equity investments
|
|
$
|
102,102
|
|
|
$
|
36,313
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
138,415
|
|
Privately held equity investments
|
|
—
|
|
|
—
|
|
|
228,710
|
|
|
—
|
|
|
228,710
|
|
|||||
|
|
$
|
102,102
|
|
|
$
|
36,313
|
|
|
$
|
228,710
|
|
|
$
|
—
|
|
|
$
|
367,125
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other investments:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Hedge funds
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
852,584
|
|
|
$
|
852,584
|
|
Fixed income funds
|
|
—
|
|
|
290,864
|
|
|
—
|
|
|
112,994
|
|
|
403,858
|
|
|||||
Equity funds
|
|
—
|
|
|
100,440
|
|
|
—
|
|
|
233,241
|
|
|
333,681
|
|
|||||
Private equity funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
248,628
|
|
|
248,628
|
|
|||||
CLO equities
|
|
—
|
|
|
—
|
|
|
39,052
|
|
|
—
|
|
|
39,052
|
|
|||||
CLO equity funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
37,260
|
|
|
37,260
|
|
|||||
Private credit funds
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,381
|
|
|
33,381
|
|
|||||
Other
|
|
—
|
|
|
578
|
|
|
315
|
|
|
8,420
|
|
|
9,313
|
|
|||||
|
|
$
|
—
|
|
|
$
|
391,882
|
|
|
$
|
39,367
|
|
|
$
|
1,526,508
|
|
|
$
|
1,957,757
|
|
Total Investments
|
|
$
|
102,102
|
|
|
$
|
9,086,971
|
|
|
$
|
321,973
|
|
|
$
|
1,526,508
|
|
|
$
|
11,037,554
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
|
$
|
243,839
|
|
|
$
|
21,146
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
264,985
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Reinsurance recoverable:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
739,591
|
|
|
$
|
—
|
|
|
$
|
739,591
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Assets:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives qualifying as hedging
|
|
$
|
—
|
|
|
$
|
1,615
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,615
|
|
Derivatives not qualifying as hedges
|
|
—
|
|
|
5,086
|
|
|
—
|
|
|
—
|
|
|
5,086
|
|
|||||
Derivative instruments
|
|
$
|
—
|
|
|
$
|
6,701
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
6,701
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Losses and LAE:
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,874,055
|
|
|
$
|
—
|
|
|
$
|
2,874,055
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Other Liabilities:
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivatives qualifying as hedging
|
|
$
|
—
|
|
|
$
|
300
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
300
|
|
Derivatives not qualifying as hedges
|
|
—
|
|
|
683
|
|
|
—
|
|
|
—
|
|
|
683
|
|
|||||
Derivative instruments
|
|
$
|
—
|
|
|
$
|
983
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
983
|
|
•
|
U.S. government and agency securities consist of securities issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and other agencies. Non-U.S. government securities consist of bonds issued by non-U.S. governments and agencies along with supranational organizations. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. These are considered to be observable market inputs and, therefore, the fair values of these securities are classified as Level 2.
|
•
|
Corporate securities consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark yields, and industry and market indicators. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2. Where pricing is unavailable from pricing services, such as in periods of low trading activity or when transactions are not orderly, we obtain non-binding quotes from broker-dealers. Where significant inputs are unable to be corroborated with market observable information, we classify the securities as Level 3.
|
•
|
Municipal securities consist primarily of bonds issued by U.S.-domiciled state and municipal entities. The fair values of these securities are determined using the spread above the risk-free yield curve, reported trades, broker-dealer quotes and benchmark yields. These are considered observable market inputs and, therefore, the fair values of these securities are classified as Level 2.
|
•
|
Asset-backed securities consist primarily of investment-grade bonds backed by pools of loans with a variety of underlying collateral. Residential and commercial mortgage-backed securities include both agency and non-agency originated securities. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. The significant inputs used to determine the fair value of these securities include the spread above the risk-free yield curve, reported trades, benchmark yields, prepayment speeds and default rates. The fair values of these securities are classified as Level 2 if the significant inputs are
|
•
|
For our investments in hedge funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy.
|
•
|
Our investments in fixed income funds and equity funds are valued based on a combination of prices from independent pricing services, external fund managers or third-party administrators. For the publicly available prices we have classified the investments as Level 2. For the non-publicly available prices we are using NAV as a practical expedient and therefore these have not been categorized within the fair value hierarchy.
|
•
|
For our investments in private equity funds, we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy.
|
•
|
We measure the fair value of our direct investment in CLO equities based on valuations provided by independent pricing services, our external CLO equity manager, and valuations provided by the broker or lead underwriter of the investment (the "broker"). Our CLO equity investments have been classified as Level 3 due to the use of unobservable inputs in the valuation and the limited number of relevant trades in secondary markets.
|
•
|
For our investments in the CLO equity funds, we measure fair value by obtaining the most recently available NAV as advised by the external fund manager or third party administrator. The fair value of these investments is measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy.
|
•
|
For our investments in private credit funds, we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair values of these investments are measured using the NAV as a practical expedient and therefore have not been categorized within the fair value hierarchy.
|
•
|
Included within other is an investment in a real estate debt fund, for which we measure fair value by obtaining the most recently available NAV from the external fund manager or third-party administrator. The fair value of this investment is measured using the NAV as a practical expedient and therefore has not been categorized within the fair value hierarchy.
|
|
|
2019
|
||||||||||||||||||||||||||
|
|
Fixed maturity investments
|
|
Privately-held Equities
|
|
Other Investments
|
|
Total
|
||||||||||||||||||||
|
|
Corporate
|
|
Residential mortgage-backed
|
|
Commercial mortgage-backed
|
|
Asset-backed
|
|
|
|
|||||||||||||||||
Beginning fair value
|
|
$
|
37,386
|
|
|
$
|
—
|
|
|
$
|
7,389
|
|
|
$
|
9,121
|
|
|
$
|
228,710
|
|
|
$
|
39,367
|
|
|
$
|
321,973
|
|
Purchases
|
|
184
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
33,713
|
|
|
56,908
|
|
|
90,805
|
|
|||||||
Sales
|
|
(3,520
|
)
|
|
—
|
|
|
(784
|
)
|
|
(5,088
|
)
|
|
(2,016
|
)
|
|
(590
|
)
|
|
(11,998
|
)
|
|||||||
Total realized and unrealized gains (losses)
|
|
90
|
|
|
(1
|
)
|
|
64
|
|
|
241
|
|
|
8,392
|
|
|
(7,816
|
)
|
|
970
|
|
|||||||
Transfer into Level 3 from Level 2
|
|
3,535
|
|
|
102
|
|
|
1,515
|
|
|
22,771
|
|
|
—
|
|
|
—
|
|
|
27,923
|
|
|||||||
Transfer out of Level 3 into Level 2
|
|
(37,675
|
)
|
|
(101
|
)
|
|
(8,184
|
)
|
|
(27,045
|
)
|
|
—
|
|
|
—
|
|
|
(73,005
|
)
|
|||||||
Ending fair value
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
268,799
|
|
|
$
|
87,869
|
|
|
$
|
356,668
|
|
|
|
2018
|
||||||||||||||||||||||||||
|
|
Fixed maturity investments
|
|
Privately-held Equities
|
|
Other Investments
|
|
Total
|
||||||||||||||||||||
|
|
Corporate
|
|
Residential mortgage-backed
|
|
Commercial mortgage-backed
|
|
Asset-backed
|
|
|
|
|||||||||||||||||
Beginning fair value
|
|
$
|
67,178
|
|
|
$
|
3,080
|
|
|
$
|
21,494
|
|
|
$
|
27,892
|
|
|
$
|
—
|
|
|
$
|
57,079
|
|
|
$
|
176,723
|
|
Purchases
|
|
14,391
|
|
|
—
|
|
|
3,749
|
|
|
46,074
|
|
|
227,000
|
|
|
13,173
|
|
|
304,387
|
|
|||||||
Sales
|
|
(65,700
|
)
|
|
(1,184
|
)
|
|
(5,781
|
)
|
|
(49,020
|
)
|
|
—
|
|
|
(12,091
|
)
|
|
(133,776
|
)
|
|||||||
Total realized and unrealized losses
|
|
(57
|
)
|
|
(28
|
)
|
|
(645
|
)
|
|
(1,843
|
)
|
|
(2
|
)
|
|
(18,794
|
)
|
|
(21,369
|
)
|
|||||||
Transfer into Level 3 from Level 2
|
|
28,339
|
|
|
1,795
|
|
|
4,897
|
|
|
9,890
|
|
|
1,712
|
|
|
—
|
|
|
46,633
|
|
|||||||
Transfer out of Level 3 into Level 2
|
|
(6,765
|
)
|
|
(3,663
|
)
|
|
(16,325
|
)
|
|
(23,872
|
)
|
|
—
|
|
|
—
|
|
|
(50,625
|
)
|
|||||||
Ending fair value
|
|
$
|
37,386
|
|
|
$
|
—
|
|
|
$
|
7,389
|
|
|
$
|
9,121
|
|
|
$
|
228,710
|
|
|
$
|
39,367
|
|
|
$
|
321,973
|
|
Qualitative Information about Level 3 Fair Value Measurements
|
|||||||
|
Fair Value at December 31, 2019
|
|
Valuation Techniques
|
|
Unobservable Input
|
|
Range (Average) (1)
|
|
(in millions of U.S. dollars)
|
|
|
|
|
|
|
CLO equities
|
$87.6
|
|
Consensus pricing
|
|
Offered quotes
|
|
14-87 (48)
|
|
Discounted Cash Flow method
|
|
Discount rate (%) (2)
Recovery rate (3) Prepayment rate (4) Collateral reinvestment coupon floor (5) |
|
10%-30% (19.5%)
50%-70% (60%) 20%-30% (25%) 1% |
||
Privately held equity investments
|
268.8
|
|
Transactional value
|
|
Implied price at recent purchase transaction
|
|
13.50 - 13.85
|
|
Cost as approximation of fair value
|
|
Cost as approximation of fair value
|
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Liability for losses and LAE
|
|
Reinsurance balances recoverable on paid and unpaid losses
|
|
Net
|
|
Liability for losses and LAE
|
|
Reinsurance balances recoverable on paid and unpaid losses
|
|
Net
|
||||||||||||
Beginning fair value
|
$
|
2,874,055
|
|
|
$
|
739,591
|
|
|
$
|
2,134,464
|
|
|
$
|
1,794,669
|
|
|
$
|
542,224
|
|
|
$
|
1,252,445
|
|
Assumed business
|
9,218
|
|
|
—
|
|
|
9,218
|
|
|
1,890,061
|
|
|
372,780
|
|
|
1,517,281
|
|
||||||
Incurred losses and LAE:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reduction in estimates of ultimate losses
|
(32,690
|
)
|
|
(2,958
|
)
|
|
(29,732
|
)
|
|
(108,429
|
)
|
|
(30,041
|
)
|
|
(78,388
|
)
|
||||||
Reduction in unallocated LAE
|
(19,915
|
)
|
|
—
|
|
|
(19,915
|
)
|
|
(20,656
|
)
|
|
—
|
|
|
(20,656
|
)
|
||||||
Change in fair value
|
160,630
|
|
|
43,449
|
|
|
117,181
|
|
|
27,845
|
|
|
21,181
|
|
|
6,664
|
|
||||||
Total incurred losses and LAE
|
108,025
|
|
|
40,491
|
|
|
67,534
|
|
|
(101,240
|
)
|
|
(8,860
|
)
|
|
(92,380
|
)
|
||||||
Paid losses
|
(416,770
|
)
|
|
(92,145
|
)
|
|
(324,625
|
)
|
|
(576,949
|
)
|
|
(148,175
|
)
|
|
(428,774
|
)
|
||||||
Effect of exchange rate movements
|
46,594
|
|
|
7,581
|
|
|
39,013
|
|
|
(132,486
|
)
|
|
(18,378
|
)
|
|
(114,108
|
)
|
||||||
Ending fair value
|
$
|
2,621,122
|
|
|
$
|
695,518
|
|
|
$
|
1,925,604
|
|
|
$
|
2,874,055
|
|
|
$
|
739,591
|
|
|
$
|
2,134,464
|
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Changes in fair value due to changes in:
|
|
|
|
|
|
|
||||||
Duration
|
|
$
|
22,719
|
|
|
$
|
74,011
|
|
|
$
|
41,332
|
|
Corporate bond yield
|
|
94,462
|
|
|
(71,031
|
)
|
|
(11,076
|
)
|
|||
Risk cost of capital
|
|
—
|
|
|
3,684
|
|
|
—
|
|
|||
Change in fair value
|
|
$
|
117,181
|
|
|
$
|
6,664
|
|
|
$
|
30,256
|
|
|
|
|
2019
|
|
2018
|
Valuation Technique
|
Unobservable (U) and Observable (O) Inputs
|
Weighted Average
|
|
Weighted Average
|
|
Internal model
|
Corporate bond yield (O)
|
A rated
|
|
A rated
|
|
Internal model
|
Credit spread for non-performance risk (U)
|
0.2%
|
|
0.2%
|
|
Internal model
|
Risk cost of capital (U)
|
5.1%
|
|
5.0%
|
|
Internal model
|
Weighted average cost of capital (U)
|
8.5%
|
|
8.5%
|
|
Internal model
|
Duration - liability (U)
|
7.82 years
|
|
7.33 years
|
|
Internal model
|
Duration - reinsurance balances recoverable on paid and unpaid losses (U)
|
8.68 years
|
|
7.98 years
|
•
|
An increase in the corporate bond rate or credit spread for non-performance risk would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the corporate bond rate or credit spread for non-performance risk would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
An increase in the weighted average cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the weighted average cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
An increase in the risk cost of capital would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a decrease in the risk cost of capital would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
•
|
The duration of the liability and recoverable is adjusted every period to reflect actual net payments during the period and expected future payments. An acceleration of the estimated payment pattern, a decrease in duration, would result in an increase in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses. Conversely, a deceleration of the estimated payment pattern, an increase in duration, would result in a decrease in the fair value of the liability for losses and LAE and reinsurance balances recoverable on paid and unpaid losses.
|
|
2019
|
|
2018
|
|
2017
|
||||||||||||||||||
|
Premiums
Written
|
|
Premiums
Earned
|
|
Premiums
Written
|
|
Premiums
Earned
|
|
Premiums
Written
|
|
Premiums
Earned
|
||||||||||||
Non-life Run-off
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross
|
$
|
(25,069
|
)
|
|
$
|
197,009
|
|
|
$
|
(8,910
|
)
|
|
$
|
25,230
|
|
|
$
|
14,102
|
|
|
$
|
23,950
|
|
Ceded
|
(269
|
)
|
|
(28,513
|
)
|
|
(307
|
)
|
|
(15,803
|
)
|
|
(7,620
|
)
|
|
(9,788
|
)
|
||||||
Net
|
$
|
(25,338
|
)
|
|
$
|
168,496
|
|
|
$
|
(9,217
|
)
|
|
$
|
9,427
|
|
|
$
|
6,482
|
|
|
$
|
14,162
|
|
Atrium
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross
|
$
|
192,373
|
|
|
$
|
182,678
|
|
|
$
|
171,494
|
|
|
$
|
164,428
|
|
|
$
|
153,472
|
|
|
$
|
152,278
|
|
Ceded
|
(20,017
|
)
|
|
(18,619
|
)
|
|
(18,006
|
)
|
|
(18,113
|
)
|
|
(19,258
|
)
|
|
(17,531
|
)
|
||||||
Net
|
$
|
172,356
|
|
|
$
|
164,059
|
|
|
$
|
153,488
|
|
|
$
|
146,315
|
|
|
$
|
134,214
|
|
|
$
|
134,747
|
|
StarStone
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross
|
$
|
917,555
|
|
|
$
|
1,021,827
|
|
|
$
|
1,121,135
|
|
|
$
|
1,010,816
|
|
|
$
|
895,160
|
|
|
$
|
865,159
|
|
Ceded
|
(182,126
|
)
|
|
(219,901
|
)
|
|
(315,573
|
)
|
|
(295,857
|
)
|
|
(430,259
|
)
|
|
(405,756
|
)
|
||||||
Net
|
$
|
735,429
|
|
|
$
|
801,926
|
|
|
$
|
805,562
|
|
|
$
|
714,959
|
|
|
$
|
464,901
|
|
|
$
|
459,403
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross
|
$
|
18,534
|
|
|
$
|
20,544
|
|
|
$
|
32,378
|
|
|
$
|
25,237
|
|
|
$
|
5,719
|
|
|
$
|
5,900
|
|
Ceded
|
(22
|
)
|
|
(164
|
)
|
|
(311
|
)
|
|
(363
|
)
|
|
(926
|
)
|
|
(1,091
|
)
|
||||||
Net
|
$
|
18,512
|
|
|
$
|
20,380
|
|
|
$
|
32,067
|
|
|
$
|
24,874
|
|
|
$
|
4,793
|
|
|
$
|
4,809
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Gross
|
$
|
1,103,393
|
|
|
$
|
1,422,058
|
|
|
$
|
1,316,097
|
|
|
$
|
1,225,711
|
|
|
$
|
1,068,453
|
|
|
$
|
1,047,287
|
|
Ceded
|
(202,434
|
)
|
|
(267,197
|
)
|
|
(334,197
|
)
|
|
(330,136
|
)
|
|
(458,063
|
)
|
|
(434,166
|
)
|
||||||
Net
|
$
|
900,959
|
|
|
$
|
1,154,861
|
|
|
$
|
981,900
|
|
|
$
|
895,575
|
|
|
$
|
610,390
|
|
|
$
|
613,121
|
|
|
|
|
Intangible assets
|
|
|
||||||||||||||
|
Goodwill
|
|
Intangible
assets with
a definite life
|
|
Intangible
assets with
an indefinite life
|
|
Total
|
|
Total
|
||||||||||
Balance as of December 31, 2017
|
$
|
73,071
|
|
|
$
|
20,487
|
|
|
$
|
87,031
|
|
|
$
|
107,518
|
|
|
$
|
180,589
|
|
Acquired during the year
|
41,736
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
41,736
|
|
|||||
Amortization
|
—
|
|
|
(3,600
|
)
|
|
—
|
|
|
(3,600
|
)
|
|
(3,600
|
)
|
|||||
Balance as of December 31, 2018
|
$
|
114,807
|
|
|
$
|
16,887
|
|
|
$
|
87,031
|
|
|
$
|
103,918
|
|
|
$
|
218,725
|
|
Amortization
|
—
|
|
|
(2,257
|
)
|
|
—
|
|
|
(2,257
|
)
|
|
(2,257
|
)
|
|||||
Balance as of December 31, 2019
|
$
|
114,807
|
|
|
$
|
14,630
|
|
|
$
|
87,031
|
|
|
$
|
101,661
|
|
|
$
|
216,468
|
|
|
|
2019
|
|
2018
|
||||
Non-life Run-Off
|
|
$
|
62,959
|
|
|
$
|
62,959
|
|
Atrium
|
|
38,848
|
|
|
38,848
|
|
||
StarStone
|
|
13,000
|
|
|
13,000
|
|
||
|
|
$
|
114,807
|
|
|
$
|
114,807
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Intangible asset amortization
|
$
|
2,257
|
|
|
$
|
3,600
|
|
|
$
|
4,266
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
|
Gross
Carrying
Value
|
|
Accumulated
Amortization
|
|
Net
Carrying
Value
|
||||||||||||
Intangible assets with a definite life:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Distribution channel
|
$
|
20,000
|
|
|
$
|
(8,111
|
)
|
|
$
|
11,889
|
|
|
$
|
20,000
|
|
|
$
|
(6,776
|
)
|
|
$
|
13,224
|
|
Technology
|
15,000
|
|
|
(15,000
|
)
|
|
—
|
|
|
15,000
|
|
|
(14,778
|
)
|
|
222
|
|
||||||
Brand
|
7,000
|
|
|
(4,259
|
)
|
|
2,741
|
|
|
7,000
|
|
|
(3,559
|
)
|
|
3,441
|
|
||||||
Total
|
$
|
42,000
|
|
|
$
|
(27,370
|
)
|
|
$
|
14,630
|
|
|
$
|
42,000
|
|
|
$
|
(25,113
|
)
|
|
$
|
16,887
|
|
Intangible assets with an indefinite life:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lloyd’s syndicate capacity
|
$
|
37,031
|
|
|
$
|
—
|
|
|
$
|
37,031
|
|
|
$
|
37,031
|
|
|
$
|
—
|
|
|
$
|
37,031
|
|
Licenses
|
19,900
|
|
|
—
|
|
|
19,900
|
|
|
19,900
|
|
|
—
|
|
|
19,900
|
|
||||||
Management contract
|
30,100
|
|
|
—
|
|
|
30,100
|
|
|
30,100
|
|
|
—
|
|
|
30,100
|
|
||||||
Total
|
$
|
87,031
|
|
|
$
|
—
|
|
|
$
|
87,031
|
|
|
$
|
87,031
|
|
|
$
|
—
|
|
|
$
|
87,031
|
|
|
2019
|
|
2018
|
||||||||||||||||||||
|
Atrium
|
|
StarStone
|
|
Total
|
|
Atrium
|
|
StarStone
|
|
Total
|
||||||||||||
Intangible assets with a definite life:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Distribution channel
|
$
|
11,889
|
|
|
$
|
—
|
|
|
$
|
11,889
|
|
|
$
|
13,224
|
|
|
$
|
—
|
|
|
$
|
13,224
|
|
Technology
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|
222
|
|
||||||
Brand
|
2,741
|
|
|
—
|
|
|
2,741
|
|
|
3,441
|
|
|
—
|
|
|
3,441
|
|
||||||
Total
|
$
|
14,630
|
|
|
$
|
—
|
|
|
$
|
14,630
|
|
|
$
|
16,665
|
|
|
$
|
222
|
|
|
$
|
16,887
|
|
Intangible assets with an indefinite life:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Lloyd’s syndicate capacity
|
$
|
33,031
|
|
|
$
|
4,000
|
|
|
$
|
37,031
|
|
|
$
|
33,031
|
|
|
$
|
4,000
|
|
|
$
|
37,031
|
|
Licenses
|
—
|
|
|
19,900
|
|
|
19,900
|
|
|
—
|
|
|
19,900
|
|
|
19,900
|
|
||||||
Management contract
|
30,100
|
|
|
—
|
|
|
30,100
|
|
|
30,100
|
|
|
—
|
|
|
30,100
|
|
||||||
Total
|
$
|
63,131
|
|
|
$
|
23,900
|
|
|
$
|
87,031
|
|
|
$
|
63,131
|
|
|
$
|
23,900
|
|
|
$
|
87,031
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total intangible assets
|
$
|
77,761
|
|
|
$
|
23,900
|
|
|
$
|
101,661
|
|
|
$
|
79,796
|
|
|
$
|
24,122
|
|
|
$
|
103,918
|
|
Year
|
|
Atrium
|
|
StarStone
|
|
Total
|
||||||
2020
|
|
$
|
2,033
|
|
|
$
|
—
|
|
|
$
|
2,033
|
|
2021
|
|
2,033
|
|
|
—
|
|
|
2,033
|
|
|||
2022
|
|
2,033
|
|
|
—
|
|
|
2,033
|
|
|||
2023
|
|
1,975
|
|
|
—
|
|
|
1,975
|
|
|||
2024
|
|
1,333
|
|
|
—
|
|
|
1,333
|
|
|||
2025 and thereafter
|
|
5,223
|
|
|
—
|
|
|
5,223
|
|
|||
Total amortization
|
|
$
|
14,630
|
|
|
$
|
—
|
|
|
$
|
14,630
|
|
Facility
|
|
Origination Date
|
|
Term
|
|
December 31,
2019 |
|
December 31,
2018 |
||||
4.50% Senior Notes due 2022
|
|
March 10, 2017
|
|
5 years
|
|
$
|
348,616
|
|
|
$
|
348,054
|
|
4.95% Senior Notes due 2029
|
|
May 28, 2019
|
|
10 years
|
|
493,600
|
|
|
—
|
|
||
Total senior notes
|
|
|
|
|
|
842,216
|
|
|
348,054
|
|
||
EGL Revolving Credit Facility
|
|
August 16, 2018
|
|
5 years
|
|
—
|
|
|
15,000
|
|
||
2018 EGL Term Loan Facility
|
|
December 27, 2018
|
|
3 years
|
|
348,991
|
|
|
498,485
|
|
||
Total debt obligations
|
|
|
|
$
|
1,191,207
|
|
|
$
|
861,539
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Interest expense on debt obligations
|
$
|
51,245
|
|
|
$
|
25,205
|
|
|
$
|
25,619
|
|
Amortization of debt issuance costs
|
953
|
|
|
537
|
|
|
416
|
|
|||
Funds withheld balances and other
|
343
|
|
|
475
|
|
|
2,067
|
|
|||
Total interest expense
|
$
|
52,541
|
|
|
$
|
26,217
|
|
|
$
|
28,102
|
|
|
|
2019
|
|
2018
|
||||
Balance at beginning of year
|
|
$
|
458,543
|
|
|
$
|
479,606
|
|
Capital contributions
|
|
13,127
|
|
|
55,377
|
|
||
Dividends paid
|
|
(11,556
|
)
|
|
(3,852
|
)
|
||
Net loss attributable to RNCI
|
|
(12,029
|
)
|
|
(64,794
|
)
|
||
Accumulated other comprehensive income (loss) attributable to RNCI
|
|
(116
|
)
|
|
(240
|
)
|
||
Change in redemption value of RNCI
|
|
(9,178
|
)
|
|
(7,554
|
)
|
||
Balance at end of year
|
|
$
|
438,791
|
|
|
$
|
458,543
|
|
•
|
the Series A shares were canceled in June 2016 in an internal reorganization as described below.
|
•
|
the Series C shares were originally issued in connection with investment transactions in April and December of 2011. In addition, there were 66,520 Series C Non-Voting Ordinary Shares issued in March 2017 in connection with the exercise of warrants as described below. The Series C shares: (i) have all of the economic rights (including dividend rights) attaching to Voting Ordinary Shares but are non-voting except in certain limited circumstances; (ii) will automatically convert at a one-for-one exchange ratio (subject to adjustment for share splits, dividends, recapitalizations, consolidations or similar transactions) into Voting Ordinary Shares if the registered holder transfers them in a widely dispersed offering; (iii) may only vote on certain limited matters that would constitute a variation of class rights and as required under Bermuda law, provided that the aggregate voting power of the Series C shares with respect to any merger, consolidation or amalgamation will not exceed 0.01% of the aggregate voting power of our issued share capital; and (iv) require the registered holders’ written consent in order to vary the rights of the shares in a significant and adverse manner. During the three months ended March 31, 2017, 192,485 Series C Non-Voting Ordinary Shares were converted into Voting Ordinary Shares in a widely dispersed offering by their registered holders.
|
•
|
the Series B and Series D shares were created in connection with the 2011 investment transactions, but no shares in these series are issued and outstanding. Holders of the Series C shares have the right to convert such shares, on a share-for-share basis, subject to certain adjustments, into Series D shares at their option. There is no economic difference in Series B, C or D shares, but there are slight differences in the conversion rights and the limited voting rights of each series.
|
•
|
there were 910,010 Series E shares issued and outstanding as of December 31, 2019. On May 14, 2018, 505,239 Series E non-voting shares were issued as consideration for the acquisition of KaylaRe Holdings Ltd, as described in Note 3 - "Acquisitions". The Series E shares have substantially the same rights as the Series C shares, except that (i) they are convertible only into Voting Ordinary Shares and (ii) they may only vote as required under Bermuda law. The Series E shares include all other Non-Voting Ordinary Shares authorized under our bye-laws but not classified as Series A, B, C or D Non-Voting Ordinary Shares.
|
|
2019
|
|
2018
|
|
2017
|
||||||
Numerator:
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
300,465
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
10,993
|
|
|||
Net earnings (loss) attributable to Enstar Group Limited
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
311,458
|
|
Denominator:
|
|
|
|
|
|
||||||
Weighted-average ordinary shares outstanding — basic
|
21,482,617
|
|
|
20,698,310
|
|
|
19,388,621
|
|
|||
Effect of dilutive securities:
|
|
|
|
|
|
||||||
Share-based compensation plans
|
227,878
|
|
|
129,746
|
|
|
62,732
|
|
|||
Warrants
|
64,571
|
|
|
76,120
|
|
|
76,238
|
|
|||
Weighted-average ordinary shares outstanding — diluted
|
21,775,066
|
|
|
20,904,176
|
|
|
19,527,591
|
|
|||
Earnings per share attributable to Enstar Group Limited:
|
|
|
|
|
|
||||||
Basic:
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
42.00
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.50
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
0.56
|
|
|||
Net earnings (loss) per ordinary share
|
$
|
42.00
|
|
|
$
|
(7.84
|
)
|
|
$
|
16.06
|
|
Diluted(1):
|
|
|
|
|
|
||||||
Net earnings (loss) from continuing operations
|
$
|
41.43
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.39
|
|
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
0.56
|
|
|||
Net earnings (loss) per ordinary share
|
$
|
41.43
|
|
|
$
|
(7.84
|
)
|
|
$
|
15.95
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Share-based compensation plans:
|
|
|
|
|
|
||||||
Restricted shares and restricted share units
|
$
|
6,564
|
|
|
$
|
7,641
|
|
|
$
|
7,302
|
|
Performance share units
|
23,582
|
|
|
1,968
|
|
|
5,832
|
|
|||
Cash-settled stock appreciation rights
|
2,575
|
|
|
(3,316
|
)
|
|
8,875
|
|
|||
Other share-based compensation plans:
|
|
|
|
|
|
||||||
Northshore incentive plan
|
3,652
|
|
|
2,792
|
|
|
3,156
|
|
|||
StarStone incentive plan
|
223
|
|
|
—
|
|
|
—
|
|
|||
Deferred compensation and ordinary share plan for non-employee directors
|
992
|
|
|
1,155
|
|
|
758
|
|
|||
Employee share purchase plan
|
411
|
|
|
430
|
|
|
403
|
|
|||
Total share-based compensation
|
$
|
37,999
|
|
|
$
|
10,670
|
|
|
$
|
26,326
|
|
|
Number of
Shares
|
|
Weighted-Average Share Price
|
|
Nonvested — January 1
|
59,936
|
|
|
$191.89
|
Granted
|
50,054
|
|
|
176.16
|
Vested
|
(42,462
|
)
|
|
189.98
|
Forfeited
|
(2,956
|
)
|
|
206.85
|
Nonvested — December 31
|
64,572
|
|
|
180.49
|
Grant Year
|
|
Inception-to-date Activity Roll-forward
|
|
Performance Criteria:
Change in FDBVPS (3 year)
|
|
Performance Multiplier
Levels Per Award Agreements
|
||||||||||||||||||||||||
PSUs Granted
at Target
|
|
Forfeited
|
|
Estimated Change in Multiplier
|
|
Nonvested at December 31, 2019
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
Threshold
|
|
Target
|
|
Maximum
|
||||||||||||
2017
|
|
36,321
|
|
|
(12,176
|
)
|
|
9,560
|
|
|
33,705
|
|
|
20.00
|
%
|
|
30.00
|
%
|
|
40.00
|
%
|
|
50.00
|
%
|
|
100.00
|
%
|
|
150.00
|
%
|
2017
|
|
91,875
|
|
|
—
|
|
|
18,081
|
|
|
109,956
|
|
|
30.30
|
%
|
|
35.65
|
%
|
|
41.00
|
%
|
|
50.00
|
%
|
|
100.00
|
%
|
|
150.00
|
%
|
2018
|
|
39,682
|
|
|
(11,414
|
)
|
|
—
|
|
|
28,268
|
|
|
25.00
|
%
|
|
32.50
|
%
|
|
40.00
|
%
|
|
50.00
|
%
|
|
100.00
|
%
|
|
150.00
|
%
|
2019
|
|
18,308
|
|
|
(798
|
)
|
|
—
|
|
|
17,510
|
|
|
20.00
|
%
|
|
30.00
|
%
|
|
40.00
|
%
|
|
60.00
|
%
|
|
100.00
|
%
|
|
150.00
|
%
|
|
|
186,186
|
|
|
(24,388
|
)
|
|
27,641
|
|
|
189,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Grant Year
|
|
Inception-to-date Activity Roll-forward
|
|
Performance Criteria:
Average Annual Operating ROE
|
|
Performance Multiplier
Levels Per Award Agreements
|
||||||||||||||||||||||||
PSUs Granted
at Target
|
|
Forfeited
|
|
Estimated Change in Multiplier
|
|
Nonvested at December 31, 2019
|
|
Threshold
|
|
Target
|
|
Maximum
|
|
Threshold
|
|
Target
|
|
Maximum
|
||||||||||||
2019
|
|
18,308
|
|
|
(798
|
)
|
|
—
|
|
|
17,510
|
|
|
9.60
|
%
|
|
12.00
|
%
|
|
14.40
|
%
|
|
60.00
|
%
|
|
100.00
|
%
|
|
150.00
|
%
|
Award Description
|
|
2019
|
|
2018
|
|
2017
|
2017 FDBVPS Type I (30.00% Target Change)
|
|
139%
|
|
50%
|
|
100%
|
2017 FDBVPS Type II (35.65% Target Change)
|
|
120%
|
|
50%
|
|
100%
|
2018 FDBVPS
|
|
100%
|
|
50%
|
|
n/a
|
2019 FDBVPS
|
|
100%
|
|
n/a
|
|
n/a
|
2019 Average Operating ROE
|
|
100%
|
|
n/a
|
|
n/a
|
|
Number of
Shares
|
|
Weighted-Average Share Price
|
|
Nonvested — January 1
|
159,168
|
|
|
$190.77
|
Granted
|
36,616
|
|
|
166.42
|
Increase for above target vest
|
27,641
|
|
|
188.62
|
Vested
|
(2,631
|
)
|
|
195.60
|
Forfeited
|
(13,845
|
)
|
|
198.37
|
Nonvested — December 31
|
206,949
|
|
|
185.61
|
|
Number of
SARs
|
|
Weighted-Average Exercise Price of SARs
|
|
Weighted-Average Expected Term (in years)
|
|
Aggregate
Intrinsic Value(1)
|
|||||
Balance, beginning of year
|
109,081
|
|
|
$
|
142.37
|
|
|
|
|
|
||
Exercised
|
(19,854
|
)
|
|
138.07
|
|
|
|
|
|
|||
Balance, end of year
|
89,227
|
|
|
143.33
|
|
|
2.39
|
|
$
|
6,133
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Weighted-average fair value per SAR
|
$
|
76.03
|
|
|
$
|
45.85
|
|
|
$
|
75.38
|
|
Weighted-average volatility
|
19.75
|
%
|
|
18.94
|
%
|
|
19.44
|
%
|
|||
Weighted-average risk-free interest rate
|
1.64
|
%
|
|
2.72
|
%
|
|
1.65
|
%
|
|||
Dividend yield
|
0.00
|
%
|
|
0.00
|
%
|
|
0.00
|
%
|
|
2019
|
|
2018
|
|
2017
|
|||
Restricted share units credited to the accounts of non-employee directors
|
5,976
|
|
|
5,691
|
|
|
3,852
|
|
|
2019
|
|
2018
|
|
2017
|
|||
Number of shares issued to employees
|
15,269
|
|
|
14,183
|
|
|
12,401
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Defined contribution plans
|
$
|
11,798
|
|
|
$
|
11,434
|
|
|
$
|
12,247
|
|
Defined benefit plan
|
684
|
|
|
2,243
|
|
|
1,988
|
|
|||
Total pension expense
|
$
|
12,482
|
|
|
$
|
13,677
|
|
|
$
|
14,235
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Domestic (Bermuda)
|
$
|
576,339
|
|
|
$
|
(232,743
|
)
|
|
$
|
167,263
|
|
Foreign
|
356,317
|
|
|
14,347
|
|
|
147,148
|
|
|||
Total earnings (loss) before income tax on continuing operations
|
$
|
932,656
|
|
|
$
|
(218,396
|
)
|
|
$
|
314,411
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Current:
|
|
|
|
|
|
||||||
Domestic (Bermuda)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Foreign
|
18,433
|
|
|
(3,632
|
)
|
|
10,299
|
|
|||
|
18,433
|
|
|
(3,632
|
)
|
|
10,299
|
|
|||
Deferred:
|
|
|
|
|
|
||||||
Domestic (Bermuda)
|
—
|
|
|
—
|
|
|
—
|
|
|||
Foreign
|
(13,996
|
)
|
|
(2,492
|
)
|
|
(16,694
|
)
|
|||
|
(13,996
|
)
|
|
(2,492
|
)
|
|
(16,694
|
)
|
|||
Total income tax expense (benefit) on continuing operations
|
$
|
4,437
|
|
|
$
|
(6,124
|
)
|
|
$
|
(6,395
|
)
|
|
2019
|
|
2018
|
|
2017
|
||||||
Earnings (loss) before income tax
|
$
|
932,656
|
|
|
$
|
(218,396
|
)
|
|
$
|
314,411
|
|
Bermuda income taxes at statutory rate
|
0.0
|
%
|
|
0.0
|
%
|
|
0.0
|
%
|
|||
Foreign income tax rate differential
|
8.6
|
%
|
|
0.7
|
%
|
|
13.1
|
%
|
|||
Change in valuation allowance
|
(8.2
|
)%
|
|
(0.3
|
)%
|
|
(34.9
|
)%
|
|||
Effect of change in foreign (U.S.) tax rate
|
—
|
%
|
|
—
|
%
|
|
20.3
|
%
|
|||
U.S. base erosion and anti-abuse tax
|
0.5
|
%
|
|
(0.6
|
)%
|
|
—
|
%
|
|||
Other
|
(0.4
|
)%
|
|
3.0
|
%
|
|
(0.5
|
)%
|
|||
Effective tax rate
|
0.5
|
%
|
|
2.8
|
%
|
|
(2.0
|
)%
|
|
2019
|
|
2018
|
||||
Deferred tax assets:
|
|
|
|
||||
Net operating loss carryforwards
|
$
|
159,436
|
|
|
$
|
183,633
|
|
Insurance reserves
|
14,104
|
|
|
18,677
|
|
||
Unearned premiums
|
7,131
|
|
|
11,314
|
|
||
Lloyd's underwriting losses taxable in future periods
|
—
|
|
|
6,201
|
|
||
Provisions for bad debt
|
6,172
|
|
|
2,594
|
|
||
Unrealized losses on investments
|
—
|
|
|
5,160
|
|
||
Defendant asbestos and environmental liabilities (1)
|
140,000
|
|
|
—
|
|
||
Other deferred tax assets
|
—
|
|
|
183
|
|
||
Gross deferred tax assets
|
326,843
|
|
|
227,762
|
|
||
Valuation allowance
|
(117,390
|
)
|
|
(212,113
|
)
|
||
Deferred tax assets
|
209,453
|
|
|
15,649
|
|
||
|
|
|
|
||||
Deferred tax liabilities:
|
|
|
|
||||
Unrealized gains on investments
|
(10,107
|
)
|
|
—
|
|
||
Lloyd's underwriting profit taxable in future periods
|
(8,852
|
)
|
|
—
|
|
||
Deferred policy acquisition cost
|
(8,267
|
)
|
|
—
|
|
||
Other deferred tax liabilities
|
(27,317
|
)
|
|
(16,067
|
)
|
||
Deferred tax liabilities
|
(54,543
|
)
|
|
(16,067
|
)
|
||
|
|
|
|
||||
Net deferred tax asset (liability)
|
$
|
154,910
|
|
|
$
|
(418
|
)
|
|
December 31,
|
||||||
|
2019
|
|
2018
|
||||
|
Net Deferred Tax
Asset
|
|
Net Deferred Tax
Liability
|
||||
United States
|
$
|
169,891
|
|
|
$
|
5,151
|
|
United Kingdom
|
(16,074
|
)
|
|
(8,377
|
)
|
||
Other
|
1,093
|
|
|
2,808
|
|
||
Total
|
$
|
154,910
|
|
|
$
|
(418
|
)
|
Tax Jurisdiction
|
Loss Carryforwards
|
|
Tax effect
|
|
Expiration
|
||||
Operating and Capital Loss Carryforwards:
|
|
|
|
|
|
||||
United States - Net operating loss
|
$
|
513,476
|
|
|
$
|
107,830
|
|
|
2024-2038
|
United Kingdom
|
224,150
|
|
|
38,106
|
|
|
Indefinitely
|
||
Other
|
52,484
|
|
|
13,500
|
|
|
Various
|
Major Tax Jurisdiction
|
|
Open Tax Years
|
United States
|
|
2016-2019
|
United Kingdom
|
|
2016-2019
|
Australia
|
|
2014-2019
|
|
2019
|
|
2018
|
||||
Redeemable Noncontrolling Interest
|
$
|
420,499
|
|
|
$
|
439,428
|
|
•
|
Investments in funds (carried within other investments) managed by Stone Point, with respect to which we recognized net unrealized gains (losses);
|
•
|
Investments in registered investment companies affiliated with entities owned by Trident or otherwise affiliated with Stone Point, with respect to which we recognized net unrealized gains (losses) and interest income;
|
•
|
Separate accounts managed by Eagle Point Credit Management, PRIMA Capital Advisors and SKY Harbor Capital Management, which are affiliates of entities owned by Trident, with respect to which we incurred management fees;
|
•
|
Investments in funds (carried within other investments) managed by Sound Point Capital, an entity in which Mr. Carey has an indirect minority ownership interest and serves as a director, with respect to which we recognized net unrealized gains (losses);
|
•
|
Sound Point Capital has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income;
|
•
|
Marble Point Capital, which is an affiliate of an entity owned by Trident, has acted as collateral manager for certain of our direct investments in CLO debt and equity securities, with respect to which we recognized net unrealized gains (losses) and interest income;
|
•
|
A separate account managed by Sound Point Capital, with respect to which we incurred management fees in prior periods; and
|
•
|
In the fourth quarter of 2018, we invested $25.0 million in Mitchell TopCo Holdings, the parent company of Mitchell International and Genex Services, as a co-investor alongside certain Trident funds.
|
|
December 31, 2019
|
|
December 31, 2018
|
||||
Short-term investments, available-for-sale, at fair value
|
$
|
1,431
|
|
|
$
|
—
|
|
Fixed maturities, trading, at fair value
|
269,131
|
|
|
176,193
|
|
||
Fixed maturities, available-for-sale, at fair value
|
160,303
|
|
|
—
|
|
||
Equities, at fair value
|
121,794
|
|
|
57,319
|
|
||
Other investments, at fair value:
|
|
|
|
||||
Hedge funds
|
18,993
|
|
|
19,535
|
|
||
Fixed income funds
|
381,449
|
|
|
324,561
|
|
||
Private equity funds
|
34,858
|
|
|
52,925
|
|
||
CLO equities
|
32,560
|
|
|
15,372
|
|
||
CLO equity funds
|
87,509
|
|
|
37,260
|
|
||
Private Debt
|
16,312
|
|
|
10,387
|
|
||
Real estate fund
|
18,106
|
|
|
8,025
|
|
||
Cash and cash equivalents
|
54,080
|
|
|
11,739
|
|
||
Other assets
|
10
|
|
|
5,216
|
|
||
Other liabilities
|
4,710
|
|
|
4,240
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
Net investment income
|
$
|
8,733
|
|
|
$
|
7,424
|
|
|
$
|
5,990
|
|
Net realized and unrealized gains (losses)
|
26,631
|
|
|
207
|
|
|
24,684
|
|
|||
Total net earnings
|
$
|
35,364
|
|
|
$
|
7,631
|
|
|
$
|
30,674
|
|
|
2018
|
|
2017
|
||||
Fee income due to Enstar Limited
|
$
|
1,453
|
|
|
$
|
2,679
|
|
|
|
|
|
||||
Transactions under KaylaRe-StarStone QS:
|
|
|
|
||||
Ceded premium earned
|
(52,651
|
)
|
|
(234,079
|
)
|
||
Net incurred losses
|
31,654
|
|
|
155,433
|
|
||
Acquisition costs
|
18,774
|
|
|
99,500
|
|
||
|
|
|
|
||||
Transactions under Fitzwilliam reinsurance agreement:
|
|
|
|
||||
Profit Commission
|
—
|
|
|
18,843
|
|
||
|
|
|
|
||||
Total net earnings (loss)
|
$
|
(770
|
)
|
|
$
|
42,376
|
|
|
2019
|
|
2018
|
||||
Investments in funds managed by AnglePoint, held by Enhanzed Re
|
$
|
327,799
|
|
|
$
|
75,192
|
|
Our ownership of equity method investments
|
47.4
|
%
|
|
47.4
|
%
|
||
Our share of Enhanzed Re's funds managed by AnglePoint
|
$
|
155,377
|
|
|
$
|
35,641
|
|
|
|
|
|
||||
Investment in other funds managed by Hillhouse:
|
|
|
|
||||
InRe Fund
|
$
|
918,633
|
|
|
$
|
678,420
|
|
Other funds
|
232,968
|
|
|
166,646
|
|
||
|
$
|
1,151,601
|
|
|
$
|
845,066
|
|
|
2019
|
|
2018
|
||||
Investment in Monument
|
$
|
60,598
|
|
|
$
|
42,193
|
|
|
2019
|
|
2018
|
||||
Investment in Clear Spring
|
$
|
10,645
|
|
|
$
|
10,070
|
|
|
2019
|
|
2018
|
||||
Balances under StarStone ceding quota share:
|
|
|
|
||||
Reinsurance balances recoverable on paid and unpaid losses
|
$
|
22,812
|
|
|
$
|
23,718
|
|
Prepaid insurance premiums
|
51
|
|
|
13,821
|
|
||
Ceded payable
|
3,616
|
|
|
14,153
|
|
||
Ceded acquisition costs
|
21
|
|
|
3,233
|
|
||
|
|
|
|
||||
Balances under assuming quota share:
|
|
|
|
||||
Losses and LAE
|
6,135
|
|
|
5,778
|
|
||
Unearned reinsurance premiums
|
13
|
|
|
3,455
|
|
||
Funds held
|
8,611
|
|
|
10,242
|
|
|
2019
|
|
2018
|
||||
Investment in AmTrust
|
$
|
240,115
|
|
|
$
|
200,000
|
|
|
2019
|
|
2018
|
||||
Investment in Citco
|
$
|
51,742
|
|
|
$
|
50,812
|
|
|
2019
|
|
2018
|
||||
Investment in Enhanzed Re
|
$
|
182,856
|
|
|
$
|
94,800
|
|
|
2019
|
||
Balances under ceding quota share:
|
|
||
Insurance balances payables
|
$
|
1,443
|
|
Reinsurance balances recoverable
|
59,601
|
|
|
Funds held
|
50,089
|
|
|
|
|
||
Other assets
|
1,033
|
|
|
2019
|
||
Amounts under ceding quota share:
|
|
||
Acquisition costs
|
$
|
73
|
|
|
|
||
Other income
|
749
|
|
|
|
|
||
Total net earnings (loss)
|
$
|
822
|
|
|
2019
|
||
Operating lease cost
|
$
|
13,627
|
|
Sublease income
|
(542
|
)
|
|
Total lease cost
|
$
|
13,085
|
|
|
2019
|
||
Operating cash flow information:
|
|
||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
11,129
|
|
Non-cash activity:
|
|
||
Right-of-use assets obtained in exchange for lease obligations
|
$
|
57,536
|
|
|
Balance sheet classification
|
|
2019
|
||
Right-of-use assets
|
Other assets
|
|
$
|
46,747
|
|
Current lease liabilities
|
Other liabilities
|
|
11,403
|
|
|
Non-current lease liabilities
|
Other liabilities
|
|
34,785
|
|
|
|
2019
|
|
Weighted-average remaining lease term
|
|
6.3 years
|
|
Weighted-average discount rate
|
|
6.3
|
%
|
|
|
2019
|
||
2020
|
|
$
|
13,663
|
|
2021
|
|
9,854
|
|
|
2022
|
|
8,103
|
|
|
2023
|
|
7,044
|
|
|
2024
|
|
5,358
|
|
|
2025 and beyond
|
|
13,119
|
|
|
Total lease payments
|
|
57,141
|
|
|
Less: Imputed interest
|
|
(10,953
|
)
|
|
Present value of lease liabilities
|
|
$
|
46,188
|
|
2019
|
|
$
|
9,510
|
|
2020
|
|
10,754
|
|
|
2021
|
|
9,772
|
|
|
2022
|
|
7,500
|
|
|
2023
|
|
6,592
|
|
|
2024 and beyond
|
|
21,276
|
|
|
|
|
$
|
65,404
|
|
|
2019
|
||||||||||||||||||
|
Non-Life
Run-Off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Gross premiums written
|
$
|
(25,069
|
)
|
|
$
|
192,373
|
|
|
$
|
917,555
|
|
|
$
|
18,534
|
|
|
$
|
1,103,393
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written
|
$
|
(25,338
|
)
|
|
$
|
172,356
|
|
|
$
|
735,429
|
|
|
$
|
18,512
|
|
|
$
|
900,959
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums earned
|
$
|
168,496
|
|
|
$
|
164,059
|
|
|
$
|
801,926
|
|
|
$
|
20,380
|
|
|
$
|
1,154,861
|
|
Net incurred losses and LAE
|
(51,625
|
)
|
|
(77,276
|
)
|
|
(727,636
|
)
|
|
(16,038
|
)
|
|
(872,575
|
)
|
|||||
Life and Annuity Policy Benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(91
|
)
|
|
(91
|
)
|
|||||
Acquisition costs
|
(73,642
|
)
|
|
(56,956
|
)
|
|
(174,711
|
)
|
|
(642
|
)
|
|
(305,951
|
)
|
|||||
Operating expenses
|
(199,756
|
)
|
|
(14,452
|
)
|
|
(120,629
|
)
|
|
—
|
|
|
(334,837
|
)
|
|||||
Underwriting income (loss)
|
(156,527
|
)
|
|
15,375
|
|
|
(221,050
|
)
|
|
3,609
|
|
|
(358,593
|
)
|
|||||
Net investment income
|
275,236
|
|
|
7,049
|
|
|
47,401
|
|
|
(8,410
|
)
|
|
321,276
|
|
|||||
Net realized and unrealized gains
|
968,350
|
|
|
6,195
|
|
|
50,957
|
|
|
5,849
|
|
|
1,031,351
|
|
|||||
Fees and commission income
|
18,293
|
|
|
10,160
|
|
|
—
|
|
|
—
|
|
|
28,453
|
|
|||||
Other income
|
34,809
|
|
|
140
|
|
|
338
|
|
|
1,883
|
|
|
37,170
|
|
|||||
Corporate expenses
|
(70,689
|
)
|
|
(13,825
|
)
|
|
(7,790
|
)
|
|
(45,945
|
)
|
|
(138,249
|
)
|
|||||
Interest income (expense)
|
(62,055
|
)
|
|
—
|
|
|
(475
|
)
|
|
9,989
|
|
|
(52,541
|
)
|
|||||
Net foreign exchange gains (losses)
|
9,918
|
|
|
(504
|
)
|
|
(1,538
|
)
|
|
3
|
|
|
7,879
|
|
|||||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
1,017,335
|
|
|
24,590
|
|
|
(132,157
|
)
|
|
(33,022
|
)
|
|
876,746
|
|
|||||
Income tax benefit (expense)
|
(7,250
|
)
|
|
(4,033
|
)
|
|
6,931
|
|
|
(85
|
)
|
|
(4,437
|
)
|
|||||
Earnings (losses) from equity method investments
|
56,128
|
|
|
—
|
|
|
(218
|
)
|
|
—
|
|
|
55,910
|
|
|||||
NET EARNINGS (LOSS)
|
1,066,213
|
|
|
20,557
|
|
|
(125,444
|
)
|
|
(33,107
|
)
|
|
928,219
|
|
|||||
Net loss (earnings) attributable to noncontrolling interest
|
(6,409
|
)
|
|
(8,432
|
)
|
|
24,711
|
|
|
—
|
|
|
9,870
|
|
|||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
1,059,804
|
|
|
12,125
|
|
|
(100,733
|
)
|
|
(33,107
|
)
|
|
938,089
|
|
|||||
Dividends on preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(35,914
|
)
|
|
(35,914
|
)
|
|||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
1,059,804
|
|
|
$
|
12,125
|
|
|
$
|
(100,733
|
)
|
|
$
|
(69,021
|
)
|
|
$
|
902,175
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio
|
|
|
47.1
|
%
|
|
90.7
|
%
|
|
|
|
|
||||||||
Acquisition expense ratio
|
|
|
34.7
|
%
|
|
21.8
|
%
|
|
|
|
|
||||||||
Operating expense ratio
|
|
|
8.8
|
%
|
|
15.1
|
%
|
|
|
|
|
||||||||
Combined ratio
|
|
|
90.6
|
%
|
|
127.6
|
%
|
|
|
|
|
|
2018
|
||||||||||||||||||
|
Non-Life
Run-Off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Gross premiums written
|
$
|
(8,910
|
)
|
|
$
|
171,494
|
|
|
$
|
1,121,135
|
|
|
$
|
32,378
|
|
|
$
|
1,316,097
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written
|
$
|
(9,217
|
)
|
|
$
|
153,488
|
|
|
$
|
805,562
|
|
|
$
|
32,067
|
|
|
$
|
981,900
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums earned
|
$
|
9,427
|
|
|
$
|
146,315
|
|
|
$
|
714,959
|
|
|
$
|
24,874
|
|
|
$
|
895,575
|
|
Net incurred losses and LAE
|
306,067
|
|
|
(69,810
|
)
|
|
(673,383
|
)
|
|
(16,899
|
)
|
|
(454,025
|
)
|
|||||
Life and annuity policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,003
|
)
|
|
(1,003
|
)
|
|||||
Acquisition costs
|
(4,006
|
)
|
|
(50,646
|
)
|
|
(135,452
|
)
|
|
(2,686
|
)
|
|
(192,790
|
)
|
|||||
Operating expenses
|
(158,731
|
)
|
|
(17,777
|
)
|
|
(156,726
|
)
|
|
—
|
|
|
(333,234
|
)
|
|||||
Underwriting income (loss)
|
152,757
|
|
|
8,082
|
|
|
(250,602
|
)
|
|
4,286
|
|
|
(85,477
|
)
|
|||||
Net investment income
|
226,287
|
|
|
5,686
|
|
|
35,973
|
|
|
2,725
|
|
|
270,671
|
|
|||||
Net realized and unrealized losses
|
(381,712
|
)
|
|
(3,251
|
)
|
|
(17,672
|
)
|
|
(10,249
|
)
|
|
(412,884
|
)
|
|||||
Fees and commission income
|
16,466
|
|
|
18,622
|
|
|
—
|
|
|
—
|
|
|
35,088
|
|
|||||
Other income (losses)
|
35,978
|
|
|
162
|
|
|
(541
|
)
|
|
(514
|
)
|
|
35,085
|
|
|||||
Corporate expenses
|
(39,093
|
)
|
|
(6,921
|
)
|
|
—
|
|
|
(28,127
|
)
|
|
(74,141
|
)
|
|||||
Interest income (expense)
|
(30,616
|
)
|
|
—
|
|
|
(624
|
)
|
|
5,023
|
|
|
(26,217
|
)
|
|||||
Net foreign exchange gains (losses)
|
2,534
|
|
|
(3,394
|
)
|
|
(2,856
|
)
|
|
1,048
|
|
|
(2,668
|
)
|
|||||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
(17,399
|
)
|
|
18,986
|
|
|
(236,322
|
)
|
|
(25,808
|
)
|
|
(260,543
|
)
|
|||||
Income tax benefit (expense)
|
3,581
|
|
|
(3,732
|
)
|
|
6,327
|
|
|
(52
|
)
|
|
6,124
|
|
|||||
Earnings from equity method investments
|
42,147
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
42,147
|
|
|||||
NET EARNINGS (LOSS)
|
28,329
|
|
|
15,254
|
|
|
(229,995
|
)
|
|
(25,860
|
)
|
|
(212,272
|
)
|
|||||
Net loss (earnings) attributable to noncontrolling interest
|
(3,107
|
)
|
|
(6,257
|
)
|
|
71,415
|
|
|
—
|
|
|
62,051
|
|
|||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
25,222
|
|
|
8,997
|
|
|
(158,580
|
)
|
|
(25,860
|
)
|
|
(150,221
|
)
|
|||||
Dividends on preferred shares
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,133
|
)
|
|
(12,133
|
)
|
|||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
25,222
|
|
|
$
|
8,997
|
|
|
$
|
(158,580
|
)
|
|
$
|
(37,993
|
)
|
|
$
|
(162,354
|
)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio
|
|
|
47.7
|
%
|
|
94.2
|
%
|
|
|
|
|
||||||||
Acquisition expense ratio
|
|
|
34.6
|
%
|
|
18.9
|
%
|
|
|
|
|
||||||||
Operating expense ratio
|
|
|
12.2
|
%
|
|
22.0
|
%
|
|
|
|
|
||||||||
Combined ratio
|
|
|
94.5
|
%
|
|
135.1
|
%
|
|
|
|
|
|
2017
|
||||||||||||||||||
|
Non-Life
Run-Off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
||||||||||
Gross premiums written
|
$
|
14,102
|
|
|
$
|
153,472
|
|
|
$
|
895,160
|
|
|
$
|
5,719
|
|
|
$
|
1,068,453
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums written
|
$
|
6,482
|
|
|
$
|
134,214
|
|
|
$
|
464,901
|
|
|
$
|
4,793
|
|
|
$
|
610,390
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net premiums earned
|
$
|
14,162
|
|
|
$
|
134,747
|
|
|
$
|
459,403
|
|
|
$
|
4,809
|
|
|
$
|
613,121
|
|
Net incurred losses and LAE
|
190,674
|
|
|
(69,419
|
)
|
|
(314,806
|
)
|
|
—
|
|
|
(193,551
|
)
|
|||||
Life and annuity policy benefits
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,015
|
)
|
|
(4,015
|
)
|
|||||
Acquisition costs
|
(328
|
)
|
|
(47,688
|
)
|
|
(48,012
|
)
|
|
(878
|
)
|
|
(96,906
|
)
|
|||||
Operating expenses
|
(132,235
|
)
|
|
(17,444
|
)
|
|
(135,558
|
)
|
|
—
|
|
|
(285,237
|
)
|
|||||
Underwriting income (loss)
|
72,273
|
|
|
196
|
|
|
(38,973
|
)
|
|
(84
|
)
|
|
33,412
|
|
|||||
Net investment income
|
166,678
|
|
|
4,218
|
|
|
27,706
|
|
|
10,187
|
|
|
208,789
|
|
|||||
Net realized and unrealized gains (losses)
|
179,545
|
|
|
1,117
|
|
|
16,613
|
|
|
(6,941
|
)
|
|
190,334
|
|
|||||
Fees and commission income (expense)
|
43,849
|
|
|
22,788
|
|
|
632
|
|
|
(1,166
|
)
|
|
66,103
|
|
|||||
Other income
|
21,157
|
|
|
230
|
|
|
570
|
|
|
648
|
|
|
22,605
|
|
|||||
Corporate expenses
|
(101,592
|
)
|
|
(12,142
|
)
|
|
—
|
|
|
(37,014
|
)
|
|
(150,748
|
)
|
|||||
Interest income (expense)
|
(28,970
|
)
|
|
(559
|
)
|
|
(1,902
|
)
|
|
3,329
|
|
|
(28,102
|
)
|
|||||
Net foreign exchange gains
|
(7,347
|
)
|
|
(5,060
|
)
|
|
(926
|
)
|
|
(4,204
|
)
|
|
(17,537
|
)
|
|||||
Loss on sale of subsidiary
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,349
|
)
|
|
(16,349
|
)
|
|||||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
345,593
|
|
|
10,788
|
|
|
3,720
|
|
|
(51,594
|
)
|
|
308,507
|
|
|||||
Income tax benefit (expense)
|
6,990
|
|
|
(1,593
|
)
|
|
988
|
|
|
10
|
|
|
6,395
|
|
|||||
Earnings from equity method investments
|
5,904
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,904
|
|
|||||
NET EARNINGS (LOSS) FROM CONTINUING OPERATIONS
|
358,487
|
|
|
9,195
|
|
|
4,708
|
|
|
(51,584
|
)
|
|
320,806
|
|
|||||
Net earnings from discontinued operations, net of income taxes
|
—
|
|
|
—
|
|
|
—
|
|
|
10,993
|
|
|
10,993
|
|
|||||
NET EARNINGS (LOSS)
|
358,487
|
|
|
9,195
|
|
|
4,708
|
|
|
(40,591
|
)
|
|
331,799
|
|
|||||
Net earnings attributable to noncontrolling interest
|
(14,687
|
)
|
|
(3,772
|
)
|
|
(1,882
|
)
|
|
—
|
|
|
(20,341
|
)
|
|||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
343,800
|
|
|
$
|
5,423
|
|
|
$
|
2,826
|
|
|
$
|
(40,591
|
)
|
|
$
|
311,458
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting ratios:
|
|
|
|
|
|
|
|
|
|
||||||||||
Loss ratio
|
|
|
51.5
|
%
|
|
68.5
|
%
|
|
|
|
|
||||||||
Acquisition expense ratio
|
|
|
35.4
|
%
|
|
10.5
|
%
|
|
|
|
|
||||||||
Operating expense ratio
|
|
|
13.0
|
%
|
|
29.5
|
%
|
|
|
|
|
||||||||
Combined ratio
|
|
|
99.9
|
%
|
|
108.5
|
%
|
|
|
|
|
|
Non-life Run-off
|
|
Atrium
|
|
StarStone
|
|
Other
|
|
Total
|
|||||||||||||||||||||||||
|
Total
|
|
%
|
|
Total
|
|
%
|
|
Total
|
|
%
|
|
Total
|
|
%
|
|
Total
|
|
%
|
|||||||||||||||
|
(In thousands of U.S. dollars, except percentages)
|
|||||||||||||||||||||||||||||||||
United States
|
$
|
(25,012
|
)
|
|
99.7
|
%
|
|
$
|
102,199
|
|
|
53.1
|
%
|
|
$
|
548,683
|
|
|
59.8
|
%
|
|
$
|
17,239
|
|
|
93.0
|
%
|
|
$
|
643,109
|
|
|
58.2
|
%
|
United Kingdom
|
350
|
|
|
(1.4
|
)%
|
|
12,972
|
|
|
6.7
|
%
|
|
114,822
|
|
|
12.5
|
%
|
|
—
|
|
|
—
|
%
|
|
128,144
|
|
|
11.6
|
%
|
|||||
Europe
|
(265
|
)
|
|
1.1
|
%
|
|
17,677
|
|
|
9.2
|
%
|
|
115,481
|
|
|
12.6
|
%
|
|
1,295
|
|
|
7.0
|
%
|
|
134,188
|
|
|
12.2
|
%
|
|||||
Asia
|
(48
|
)
|
|
0.2
|
%
|
|
5,700
|
|
|
3.0
|
%
|
|
75,773
|
|
|
8.3
|
%
|
|
—
|
|
|
—
|
%
|
|
81,425
|
|
|
7.4
|
%
|
|||||
Rest of World
|
(94
|
)
|
|
0.4
|
%
|
|
53,825
|
|
|
28.0
|
%
|
|
62,796
|
|
|
6.8
|
%
|
|
—
|
|
|
—
|
%
|
|
116,527
|
|
|
10.6
|
%
|
|||||
Total
|
$
|
(25,069
|
)
|
|
100.0
|
%
|
|
$
|
192,373
|
|
|
100.0
|
%
|
|
$
|
917,555
|
|
|
100.0
|
%
|
|
$
|
18,534
|
|
|
100.0
|
%
|
|
$
|
1,103,393
|
|
|
100.0
|
%
|
|
2019
|
|
2018
|
||||
Assets by Segment:
|
|
|
|
||||
Non-life Run-off
|
$
|
15,775,409
|
|
|
$
|
13,362,749
|
|
Atrium
|
580,405
|
|
|
591,722
|
|
||
StarStone
|
3,522,353
|
|
|
3,416,132
|
|
||
Other
|
(514,852
|
)
|
|
(814,333
|
)
|
||
Total assets
|
$
|
19,363,315
|
|
|
$
|
16,556,270
|
|
|
December 31,
|
|
September 30,
|
|
June 30,
|
|
March 31,
|
||||||||||||||||||||||||
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||||||||||
INCOME
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net premiums earned
|
$
|
272,686
|
|
|
$
|
231,947
|
|
|
$
|
270,325
|
|
|
$
|
264,597
|
|
|
$
|
276,563
|
|
|
$
|
228,812
|
|
|
$
|
335,287
|
|
|
$
|
170,219
|
|
Fees and commission income
|
9,007
|
|
|
11,455
|
|
|
6,587
|
|
|
6,950
|
|
|
6,178
|
|
|
8,352
|
|
|
6,681
|
|
|
8,331
|
|
||||||||
Net investment income
|
79,376
|
|
|
68,453
|
|
|
85,472
|
|
|
69,430
|
|
|
77,732
|
|
|
66,469
|
|
|
78,696
|
|
|
66,319
|
|
||||||||
Net realized and unrealized gains (losses)
|
152,664
|
|
|
(158,213
|
)
|
|
148,185
|
|
|
(57,223
|
)
|
|
269,711
|
|
|
(54,418
|
)
|
|
460,791
|
|
|
(143,030
|
)
|
||||||||
Other income (losses)
|
19,502
|
|
|
34,267
|
|
|
826
|
|
|
8,226
|
|
|
11,030
|
|
|
(9,351
|
)
|
|
5,812
|
|
|
1,943
|
|
||||||||
|
533,235
|
|
|
187,909
|
|
|
511,395
|
|
|
291,980
|
|
|
641,214
|
|
|
239,864
|
|
|
887,267
|
|
|
103,782
|
|
||||||||
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Net incurred losses and loss adjustment expenses
|
121,416
|
|
|
187,698
|
|
|
222,417
|
|
|
153,974
|
|
|
216,338
|
|
|
92,819
|
|
|
312,404
|
|
|
19,534
|
|
||||||||
Life and annuity policy benefits
|
(2,199
|
)
|
|
786
|
|
|
—
|
|
|
423
|
|
|
2,194
|
|
|
(160
|
)
|
|
96
|
|
|
(46
|
)
|
||||||||
Acquisition costs
|
95,026
|
|
|
55,106
|
|
|
50,282
|
|
|
54,242
|
|
|
66,855
|
|
|
53,334
|
|
|
93,788
|
|
|
30,108
|
|
||||||||
General and administrative expenses
|
129,569
|
|
|
106,950
|
|
|
113,924
|
|
|
102,553
|
|
|
117,519
|
|
|
102,612
|
|
|
112,074
|
|
|
95,260
|
|
||||||||
Interest expense
|
13,519
|
|
|
4,644
|
|
|
14,950
|
|
|
4,640
|
|
|
13,036
|
|
|
8,922
|
|
|
11,036
|
|
|
8,011
|
|
||||||||
Net foreign exchange losses (gains)
|
12,189
|
|
|
1,279
|
|
|
(13,631
|
)
|
|
1,040
|
|
|
(2,587
|
)
|
|
(5,519
|
)
|
|
(3,850
|
)
|
|
5,868
|
|
||||||||
|
369,520
|
|
|
356,463
|
|
|
387,942
|
|
|
316,872
|
|
|
413,355
|
|
|
252,008
|
|
|
525,548
|
|
|
158,735
|
|
||||||||
EARNINGS (LOSS) BEFORE INCOME TAXES
|
163,715
|
|
|
(168,554
|
)
|
|
123,453
|
|
|
(24,892
|
)
|
|
227,859
|
|
|
(12,144
|
)
|
|
361,719
|
|
|
(54,953
|
)
|
||||||||
Income tax benefit (expense)
|
22,427
|
|
|
10,688
|
|
|
(14,597
|
)
|
|
(746
|
)
|
|
(7,518
|
)
|
|
(3,646
|
)
|
|
(4,749
|
)
|
|
(172
|
)
|
||||||||
Earnings from equity method investments
|
11,722
|
|
|
8,488
|
|
|
17,703
|
|
|
3,317
|
|
|
17,713
|
|
|
15,645
|
|
|
8,772
|
|
|
14,697
|
|
||||||||
NET EARNINGS (LOSS)
|
197,864
|
|
|
(149,378
|
)
|
|
126,559
|
|
|
(22,321
|
)
|
|
238,054
|
|
|
(145
|
)
|
|
365,742
|
|
|
(40,428
|
)
|
||||||||
Net loss (earnings) attributable to noncontrolling interest
|
4,900
|
|
|
42,955
|
|
|
109
|
|
|
11,489
|
|
|
2,713
|
|
|
8,389
|
|
|
2,148
|
|
|
(782
|
)
|
||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED
|
202,764
|
|
|
(106,423
|
)
|
|
126,668
|
|
|
(10,832
|
)
|
|
240,767
|
|
|
8,244
|
|
|
367,890
|
|
|
(41,210
|
)
|
||||||||
Dividends on preferred shares
|
(8,925
|
)
|
|
(7,000
|
)
|
|
(8,925
|
)
|
|
(5,133
|
)
|
|
(8,925
|
)
|
|
—
|
|
|
(9,139
|
)
|
|
—
|
|
||||||||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
193,839
|
|
|
$
|
(113,423
|
)
|
|
$
|
117,743
|
|
|
$
|
(15,965
|
)
|
|
$
|
231,842
|
|
|
$
|
8,244
|
|
|
$
|
358,751
|
|
|
$
|
(41,210
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Earnings Loss) per ordinary share attributable to Enstar Group Limited:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Basic
|
$
|
9.02
|
|
|
$
|
(5.29
|
)
|
|
$
|
5.48
|
|
|
$
|
(0.74
|
)
|
|
$
|
10.79
|
|
|
$
|
0.40
|
|
|
$
|
16.71
|
|
|
$
|
(2.12
|
)
|
Diluted(1):
|
$
|
8.89
|
|
|
$
|
(5.29
|
)
|
|
$
|
5.42
|
|
|
$
|
(0.74
|
)
|
|
$
|
10.70
|
|
|
$
|
0.40
|
|
|
$
|
16.57
|
|
|
$
|
(2.12
|
)
|
Type of investment
|
|
Cost (1)
|
|
Fair Value
|
|
Amount at which shown in the balance sheet
|
||||||
Fixed maturity securities and short-term investments — Trading and fixed maturity investments within funds held - directly managed:(2)
|
|
|
|
|
|
|
||||||
U.S. government and agency
|
|
$
|
319,554
|
|
|
$
|
325,731
|
|
|
$
|
325,731
|
|
U.K. government
|
|
140,194
|
|
|
146,423
|
|
|
146,423
|
|
|||
Other government
|
|
600,001
|
|
|
617,710
|
|
|
617,710
|
|
|||
Corporate
|
|
4,398,126
|
|
|
4,615,896
|
|
|
4,615,896
|
|
|||
Municipal
|
|
141,905
|
|
|
152,010
|
|
|
152,010
|
|
|||
Residential mortgage-backed
|
|
339,228
|
|
|
344,617
|
|
|
344,617
|
|
|||
Commercial mortgage-backed
|
|
783,675
|
|
|
801,472
|
|
|
801,472
|
|
|||
Asset-backed
|
|
562,020
|
|
|
558,217
|
|
|
558,217
|
|
|||
Total
|
|
7,284,703
|
|
|
7,562,076
|
|
|
7,562,076
|
|
|||
Fixed maturity securities and short-term investments — Available-for-sale:(2)
|
|
|
|
|
|
|
||||||
U.S. government and agency
|
|
410,842
|
|
|
410,312
|
|
|
410,312
|
|
|||
U.K. government
|
|
15,067
|
|
|
15,349
|
|
|
15,349
|
|
|||
Other government
|
|
84,116
|
|
|
85,147
|
|
|
85,147
|
|
|||
Corporate
|
|
1,081,713
|
|
|
1,081,171
|
|
|
1,081,171
|
|
|||
Municipal
|
|
15,963
|
|
|
15,872
|
|
|
15,872
|
|
|||
Residential mortgage-backed
|
|
127,704
|
|
|
127,219
|
|
|
127,219
|
|
|||
Commercial mortgage-backed
|
|
98,928
|
|
|
98,557
|
|
|
98,557
|
|
|||
Asset-backed
|
|
202,136
|
|
|
202,117
|
|
|
202,117
|
|
|||
Total
|
|
2,036,469
|
|
|
2,035,744
|
|
|
2,035,744
|
|
|||
Equities(3)
|
|
312,407
|
|
|
367,812
|
|
|
367,812
|
|
|||
Other investments, at fair value(4)
|
|
783,032
|
|
|
783,032
|
|
|
783,032
|
|
|||
Total
|
|
$
|
10,416,611
|
|
|
$
|
10,748,664
|
|
|
$
|
10,748,664
|
|
(1)
|
Original cost of fixed maturity securities is reduced by repayments and adjusted for amortization of premiums or accretion of discounts.
|
(2)
|
The difference in the amount of fixed maturities shown at fair value and the fixed maturities shown in our consolidated balance sheet relates to the fair value of $15.1 million as of December 31, 2019 for our investment in fixed maturities issued by affiliates of Stone Point. Refer to Note 21 - "Related Party Transactions" of the notes to the consolidated financial statements.
|
(3)
|
The difference in the amount of equities shown at fair value and the equities shown in our consolidated balance sheet relates to the fair value of $96.8 million as of December 31, 2019 for our investment in a registered investment company affiliated with entities owned by Trident, $25.0 million as a co-investor alongside Stone Point and a $240.1 million investment in AmTrust. Refer to Note 21 - "Related Party Transactions" of the notes to the consolidated financial statements.
|
(4)
|
The difference in the amount of other investments shown at fair value and the other investments shown in our consolidated balance sheet relates to the fair value of $1,741.4 million as of December 31, 2019 for our other investments in funds or companies owned by or affiliated with certain related parties. Refer to Note 21 - "Related Party Transactions" of the notes to the consolidated financial statements.
|
|
|
2019
|
|
2018
|
||||
|
|
(in thousands of U.S.
dollars, except share data)
|
||||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
4,568
|
|
|
$
|
15,213
|
|
Balances due from subsidiaries
|
|
134,897
|
|
|
25,091
|
|
||
Investments in subsidiaries
|
|
6,050,197
|
|
|
4,843,913
|
|
||
Other assets
|
|
6,391
|
|
|
8,596
|
|
||
TOTAL ASSETS
|
|
$
|
6,196,053
|
|
|
$
|
4,892,813
|
|
LIABILITIES
|
|
|
|
|
||||
Debt obligations
|
|
$
|
1,191,207
|
|
|
$
|
861,539
|
|
Balances due to subsidiaries
|
|
135,532
|
|
|
120,397
|
|
||
Other liabilities
|
|
27,131
|
|
|
8,944
|
|
||
TOTAL LIABILITIES
|
|
1,353,870
|
|
|
990,880
|
|
||
COMMITMENTS AND CONTINGENCIES
|
|
|
|
|
||||
SHAREHOLDERS’ EQUITY
|
|
|
|
|
||||
Ordinary shares (par value $1 each, issued and outstanding 2019: 21,511,505; 2018: 21,459,997):
|
|
|
|
|
||||
Voting Ordinary Shares (issued and outstanding 2019: 18,001,823; 2018: 17,950,315)
|
|
18,002
|
|
|
17,950
|
|
||
Non-voting convertible ordinary Series C Shares (issued and outstanding 2019 and 2018: 2,599,672)
|
|
2,600
|
|
|
2,600
|
|
||
Non-voting convertible ordinary Series E Shares (issued and outstanding 2019 and 2018: 910,010)
|
|
910
|
|
|
910
|
|
||
Preferred Shares:
|
|
|
|
|
||||
Series C Preferred Shares (issued and held in treasury 2019 and 2018: 388,571)
|
|
389
|
|
|
389
|
|
||
Series D Preferred Shares (issued and outstanding 2019 and 2018: 16,000)
|
|
400,000
|
|
|
400,000
|
|
||
Series E Preferred Shares (issued and outstanding 2019 and 2018: 4,400)
|
|
110,000
|
|
|
110,000
|
|
||
Treasury shares, at cost (Series C Preferred Shares 2019 and 2018: 388,571)
|
|
(421,559
|
)
|
|
(421,559
|
)
|
||
Additional paid-in capital
|
|
1,836,778
|
|
|
1,804,664
|
|
||
Accumulated other comprehensive income
|
|
7,171
|
|
|
10,440
|
|
||
Retained earnings
|
|
2,887,892
|
|
|
1,976,539
|
|
||
Total Enstar Group Limited Shareholders’ Equity
|
|
4,842,183
|
|
|
3,901,933
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
$
|
6,196,053
|
|
|
$
|
4,892,813
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
INCOME
|
|
|
|
|
|
||||||
Net investment income
|
$
|
3,649
|
|
|
$
|
142
|
|
|
$
|
80
|
|
Other income
|
—
|
|
|
—
|
|
|
1,050
|
|
|||
Dividend income from subsidiaries
|
—
|
|
|
—
|
|
|
249,055
|
|
|||
|
3,649
|
|
|
142
|
|
|
250,185
|
|
|||
EXPENSES
|
|
|
|
|
|
||||||
General and administrative expenses
|
44,964
|
|
|
68,977
|
|
|
87,596
|
|
|||
Interest expense
|
51,508
|
|
|
27,353
|
|
|
23,138
|
|
|||
Net foreign exchange losses (gains)
|
(21,516
|
)
|
|
7,655
|
|
|
6,135
|
|
|||
|
74,956
|
|
|
103,985
|
|
|
116,869
|
|
|||
EARNINGS (LOSSES) BEFORE EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES
|
(71,307
|
)
|
|
(103,843
|
)
|
|
133,316
|
|
|||
Equity in undistributed earnings (losses) of subsidiaries - continuing operations
|
1,009,396
|
|
|
(46,378
|
)
|
|
167,149
|
|
|||
Equity in undistributed earnings (losses) of subsidiaries - discontinued operations
|
—
|
|
|
—
|
|
|
10,993
|
|
|||
NET EARNINGS
|
938,089
|
|
|
(150,221
|
)
|
|
311,458
|
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
—
|
|
|||
NET EARNINGS (LOSS) ATTRIBUTABLE TO ENSTAR GROUP LIMITED ORDINARY SHAREHOLDERS
|
$
|
902,175
|
|
|
$
|
(162,354
|
)
|
|
$
|
311,458
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
NET EARNINGS
|
$
|
938,089
|
|
|
$
|
(150,221
|
)
|
|
$
|
311,458
|
|
OTHER COMPREHENSIVE INCOME (LOSS) RELATING TO SUBSIDIARIES, NET OF TAX
|
(3,269
|
)
|
|
(27
|
)
|
|
34,016
|
|
|||
COMPREHENSIVE INCOME
|
$
|
934,820
|
|
|
$
|
(150,248
|
)
|
|
$
|
345,474
|
|
|
2019
|
|
2018
|
|
2017
|
||||||
|
(in thousands of U.S. dollars)
|
||||||||||
OPERATING ACTIVITIES:
|
|
|
|
|
|
||||||
Net cash flows provided by (used in) operating activities
|
$
|
(128,462
|
)
|
|
$
|
(128,382
|
)
|
|
$
|
97,898
|
|
INVESTING ACTIVITIES:
|
|
|
|
|
|
||||||
Dividends and return of capital from subsidiaries
|
65,500
|
|
|
101,000
|
|
|
217,450
|
|
|||
Contributions to subsidiaries
|
(240,382
|
)
|
|
(660,339
|
)
|
|
(465,650
|
)
|
|||
Net cash flows used in investing activities
|
(174,882
|
)
|
|
(559,339
|
)
|
|
(248,200
|
)
|
|||
FINANCING ACTIVITIES:
|
|
|
|
|
|
||||||
Net proceeds from the issuance of preferred shares
|
—
|
|
|
495,357
|
|
|
—
|
|
|||
Dividends on preferred shares
|
(35,914
|
)
|
|
(12,133
|
)
|
|
—
|
|
|||
Repayment of loans
|
(219,000
|
)
|
|
(898,633
|
)
|
|
(696,640
|
)
|
|||
Receipt of loans
|
547,613
|
|
|
1,115,885
|
|
|
844,516
|
|
|||
Net cash flows provided by financing activities
|
292,699
|
|
|
700,476
|
|
|
147,876
|
|
|||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(10,645
|
)
|
|
12,755
|
|
|
(2,426
|
)
|
|||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
|
15,213
|
|
|
2,458
|
|
|
4,884
|
|
|||
CASH AND CASH EQUIVALENTS, END OF YEAR
|
$
|
4,568
|
|
|
$
|
15,213
|
|
|
$
|
2,458
|
|
|
As of December 31,
|
|
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||
|
Deferred
Acquisition
Costs
|
|
Reserves
for Losses
and Loss
Adjustment
Expenses
|
|
Unearned
Premiums
|
|
Policy Benefits for Life and Annuity Contracts
|
|
Net
Premiums
Earned
|
|
Net
Investment
Income
|
|
Losses
and Loss
Expenses
and
Policy
Benefits
|
|
Amortization
of Deferred
Acquisition
Costs
|
|
Other Operating Expenses
|
|
Net
Premiums
Written
|
||||||||||||||||||||
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life run-off
|
$
|
41,753
|
|
|
$
|
8,295,361
|
|
|
$
|
129,715
|
|
|
$
|
—
|
|
|
$
|
168,496
|
|
|
$
|
275,236
|
|
|
$
|
51,625
|
|
|
$
|
73,642
|
|
|
$
|
270,445
|
|
|
$
|
(25,338
|
)
|
Atrium
|
22,184
|
|
|
231,672
|
|
|
80,863
|
|
|
—
|
|
|
164,059
|
|
|
7,049
|
|
|
77,276
|
|
|
56,956
|
|
|
28,277
|
|
|
172,356
|
|
||||||||||
StarStone
|
89,180
|
|
|
1,879,128
|
|
|
518,199
|
|
|
—
|
|
|
801,926
|
|
|
47,401
|
|
|
727,636
|
|
|
174,711
|
|
|
128,419
|
|
|
735,429
|
|
||||||||||
Other
|
388
|
|
|
23,077
|
|
|
17,998
|
|
|
—
|
|
|
20,380
|
|
|
(8,410
|
)
|
|
16,129
|
|
|
642
|
|
|
45,945
|
|
|
18,512
|
|
||||||||||
Total
|
$
|
153,505
|
|
|
$
|
10,429,238
|
|
|
$
|
746,775
|
|
|
$
|
—
|
|
|
$
|
1,154,861
|
|
|
$
|
321,276
|
|
|
$
|
872,666
|
|
|
$
|
305,951
|
|
|
$
|
473,086
|
|
|
$
|
900,959
|
|
2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life run-off
|
$
|
4,378
|
|
|
$
|
7,540,662
|
|
|
$
|
136,023
|
|
|
$
|
—
|
|
|
$
|
9,427
|
|
|
$
|
226,287
|
|
|
$
|
(306,067
|
)
|
|
$
|
4,006
|
|
|
$
|
197,824
|
|
|
$
|
(9,217
|
)
|
Atrium
|
20,355
|
|
|
241,284
|
|
|
70,429
|
|
|
—
|
|
|
146,315
|
|
|
5,686
|
|
|
69,810
|
|
|
50,646
|
|
|
24,698
|
|
|
153,488
|
|
||||||||||
StarStone
|
96,004
|
|
|
1,608,697
|
|
|
619,164
|
|
|
—
|
|
|
714,959
|
|
|
35,973
|
|
|
673,383
|
|
|
135,452
|
|
|
156,726
|
|
|
805,562
|
|
||||||||||
Other
|
364
|
|
|
18,861
|
|
|
17,002
|
|
|
105,080
|
|
|
24,874
|
|
|
2,725
|
|
|
17,902
|
|
|
2,686
|
|
|
28,127
|
|
|
32,067
|
|
||||||||||
Total
|
$
|
121,101
|
|
|
$
|
9,409,504
|
|
|
$
|
842,618
|
|
|
$
|
105,080
|
|
|
$
|
895,575
|
|
|
$
|
270,671
|
|
|
$
|
455,028
|
|
|
$
|
192,790
|
|
|
$
|
407,375
|
|
|
$
|
981,900
|
|
2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
Non-life run-off
|
$
|
655
|
|
|
$
|
5,949,472
|
|
|
$
|
14,275
|
|
|
$
|
—
|
|
|
$
|
14,162
|
|
|
$
|
166,678
|
|
|
$
|
(190,674
|
)
|
|
$
|
328
|
|
|
$
|
233,827
|
|
|
$
|
6,482
|
|
Atrium
|
18,385
|
|
|
240,873
|
|
|
64,877
|
|
|
—
|
|
|
134,747
|
|
|
4,218
|
|
|
69,419
|
|
|
47,688
|
|
|
29,586
|
|
|
134,214
|
|
||||||||||
StarStone
|
45,944
|
|
|
1,207,743
|
|
|
504,045
|
|
|
—
|
|
|
459,403
|
|
|
27,706
|
|
|
314,806
|
|
|
48,012
|
|
|
135,558
|
|
|
464,901
|
|
||||||||||
Other
|
—
|
|
|
—
|
|
|
—
|
|
|
117,207
|
|
|
4,809
|
|
|
10,187
|
|
|
4,015
|
|
|
878
|
|
|
37,014
|
|
|
4,793
|
|
||||||||||
Total
|
$
|
64,984
|
|
|
$
|
7,398,088
|
|
|
$
|
583,197
|
|
|
$
|
117,207
|
|
|
$
|
613,121
|
|
|
$
|
208,789
|
|
|
$
|
197,566
|
|
|
$
|
96,906
|
|
|
$
|
435,985
|
|
|
$
|
610,390
|
|
|
Gross
|
|
Ceded to
Other
Companies
|
|
Assumed
from
Other
Companies
|
|
Net Amount
|
|
Percentage
of Amount
Assumed
to Net
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||
2019
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
725,293
|
|
|
$
|
(65,795
|
)
|
|
$
|
—
|
|
|
$
|
659,498
|
|
|
—
|
%
|
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
1,146,956
|
|
|
(267,174
|
)
|
|
273,807
|
|
|
1,153,589
|
|
|
23.7
|
%
|
||||
Life and annuities
|
1,295
|
|
|
(23
|
)
|
|
—
|
|
|
1,272
|
|
|
—
|
%
|
||||
Total premiums earned
|
$
|
1,148,251
|
|
|
$
|
(267,197
|
)
|
|
$
|
273,807
|
|
|
$
|
1,154,861
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2018
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
855,366
|
|
|
$
|
(84,603
|
)
|
|
$
|
—
|
|
|
$
|
770,763
|
|
|
—
|
%
|
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
985,637
|
|
|
(330,110
|
)
|
|
236,182
|
|
|
891,709
|
|
|
26.5
|
%
|
||||
Life and annuities
|
3,892
|
|
|
(26
|
)
|
|
—
|
|
|
3,866
|
|
|
—
|
%
|
||||
Total premiums earned
|
$
|
989,529
|
|
|
$
|
(330,136
|
)
|
|
$
|
236,182
|
|
|
$
|
895,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
2017
|
|
|
|
|
|
|
|
|
|
|||||||||
Life insurance in force
|
$
|
979,291
|
|
|
$
|
(100,189
|
)
|
|
$
|
—
|
|
|
$
|
879,102
|
|
|
—
|
%
|
Premiums earned:
|
|
|
|
|
|
|
|
|
|
|||||||||
Property and casualty
|
899,226
|
|
|
(433,075
|
)
|
|
142,161
|
|
|
608,312
|
|
|
23.4
|
%
|
||||
Life and annuities
|
5,900
|
|
|
(1,091
|
)
|
|
—
|
|
|
4,809
|
|
|
—
|
%
|
||||
Total premiums earned
|
$
|
905,126
|
|
|
$
|
(434,166
|
)
|
|
$
|
142,161
|
|
|
$
|
613,121
|
|
|
|
|
Balance at Beginning of Year
|
|
Charged to costs and expenses
|
|
Charged to other
accounts |
|
Deductions (1)
|
|
Balance at End of Year
|
|||||
December 31, 2019
|
|
|
|
|
|
|
|
|
|
|||||
Reinsurance balances recoverable on paid and unpaid losses:
|
|
|
|
|
|
|
|
|
|
|||||
Provisions for bad debt
|
156,732
|
|
|
—
|
|
|
111
|
|
|
(9,204
|
)
|
|
147,639
|
|
Valuation allowance for deferred tax assets
|
212,113
|
|
|
2,792
|
|
|
—
|
|
|
(97,515
|
)
|
|
117,390
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2018
|
|
|
|
|
|
|
|
|
|
|||||
Reinsurance balances recoverable on paid and unpaid losses:
|
|
|
|
|
|
|
|
|
|
|||||
Provisions for bad debt
|
165,213
|
|
|
—
|
|
|
(1,837
|
)
|
|
(6,644
|
)
|
|
156,732
|
|
Valuation allowance for deferred tax assets
|
188,300
|
|
|
(2,492
|
)
|
|
18,000
|
|
|
8,305
|
|
|
212,113
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2017
|
|
|
|
|
|
|
|
|
|
|||||
Reinsurance balances recoverable on paid and unpaid losses:
|
|
|
|
|
|
|
|
|
|
|||||
Provisions for bad debt
|
174,516
|
|
|
(1,536
|
)
|
|
(4,191
|
)
|
|
(3,576
|
)
|
|
165,213
|
|
Valuation allowance for deferred tax assets
|
290,861
|
|
|
(16,694
|
)
|
|
—
|
|
|
(85,867
|
)
|
|
188,300
|
|
(1)
|
Credited to the related asset account.
|
|
|
As of December 31,
|
|
Year ended December 31,
|
||||||||||||||||||||||||||||||||||||
Affiliation with Registrant
|
|
Deferred Acquisition Costs
|
|
Reserves for Unpaid Losses and Loss Adjustment Expenses
|
|
Unearned
Premiums
|
|
Net Premiums Earned
|
|
Net Investment Income
|
|
Net Losses and Loss Expenses Incurred
|
|
Net Paid Losses and Loss Expenses
|
|
Amortization of Deferred Acquisition Costs
|
|
Net Premiums Written
|
||||||||||||||||||||||
Current Year
|
|
Prior Year
|
|
|||||||||||||||||||||||||||||||||||||
Consolidated Subsidiaries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||
2019
|
|
$
|
153,505
|
|
|
$
|
10,429,238
|
|
|
$
|
746,775
|
|
|
$
|
1,153,589
|
|
|
$
|
320,780
|
|
|
$
|
823,658
|
|
|
$
|
48,917
|
|
|
$
|
(1,869,268
|
)
|
|
$
|
305,774
|
|
|
$
|
899,687
|
|
2018
|
|
121,101
|
|
|
9,409,504
|
|
|
842,618
|
|
|
891,708
|
|
|
269,093
|
|
|
689,782
|
|
|
(235,757
|
)
|
|
(1,384,545
|
)
|
|
192,790
|
|
|
978,037
|
|
||||||||||
2017
|
|
64,984
|
|
|
7,398,088
|
|
|
583,197
|
|
|
608,312
|
|
|
198,602
|
|
|
437,853
|
|
|
(244,302
|
)
|
|
(945,194
|
)
|
|
96,028
|
|
|
605,597
|
|
/s/ KPMG Audit Limited
|
KPMG Audit Limited
|
(a)
|
Financial Statements and Financial Statement Schedules: see Item 8 in Part II of this report.
|
(b)
|
Exhibits: see accompanying exhibit index that precedes the signature page of this report.
|
Exhibit
No.
|
|
Description
|
2.1s
|
|
Stock Purchase Agreement, dated February 17, 2017, by and between Southland National Holdings, Inc. and Laguna Life Holdings SARL (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on February 21, 2017).
|
|
|
|
|
Amendment No. 1 to Stock Purchase Agreement, dated June 1, 2017, by and between Southland National Holdings, Inc. and Laguna Life Holdings SARL (incorporated by reference to Exhibit 2.1 to the Company’s Form 10-Q filed on November 8, 2017).
|
|
|
|
|
|
Amendment No. 2 to Stock Purchase Agreement, dated July 31, 2017, by and between Southland National Holdings, Inc. and Laguna Life Holdings SARL (incorporated by reference to Exhibit 2.2 to the Company’s Form 10-Q filed on November 8, 2017).
|
|
|
|
|
|
Amendment No. 3 to Stock Purchase Agreement, dated December 15, 2017, by and between Southland National Holdings, Inc. and Laguna Life Holdings SARL (incorporated by reference to Exhibit 2.14 to the Company’s Form 10-K filed on February 28, 2018).
|
|
|
|
|
2.5s
|
|
Master Transaction Agreement, dated as of August 31, 2018, by and among Enstar Group Limited, Enstar Holdings (US) LLC and Maiden Holdings North America, Ltd. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on September 4, 2018).
|
|
|
|
|
Memorandum of Association of Enstar Group Limited (incorporated by reference to Exhibit 3.1 to the Company’s Form 10-K/A filed on May 2, 2011).
|
|
|
|
|
|
Fifth Amended and Restated Bye-Laws of Enstar Group Limited (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on June 13, 2019).
|
|
|
|
|
|
Certificate of Designations for the Series B Convertible Participating Non-Voting Perpetual Preferred Stock (incorporated by reference to Exhibit 3.1 to the Company’s Form 8-K filed on July 9, 2013).
|
|
|
|
|
|
Certificate of Designations of Series C Participating Non-Voting Perpetual Preferred Stock of Enstar Group Limited, dated as of June 13, 2016 (incorporated by reference to Exhibit 3.1 to the Company's Form 8-K filed on June 17, 2016).
|
|
|
|
|
|
Certificate of Designations of Series D Perpetual Non-Cumulative Preferred Shares of Enstar Group Limited, dated as of June 27, 2018 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on June 27, 2018).
|
|
|
|
|
|
Certificate of Designations of Series E Perpetual Non-Cumulative Preferred Shares of Enstar Group Limited, dated as of November 21, 2018 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on November 21, 2018).
|
|
|
Senior Indenture, dated as of March 10, 2017, between Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to the Company's Form 8-K filed on March 10, 2017).
|
|
|
|
|
|
First Supplemental Indenture, dated as of March 10, 2017, between Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.2 to the Company's Form 8-K filed on March 10, 2017).
|
|
|
|
|
|
Second Supplemental Indenture, dated as of March 26, 2019, between Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on March 26, 2019).
|
|
|
|
|
|
Third Supplemental Indenture, dated as of May 28, 2019, between Enstar Group Limited and The Bank of New York Mellon, as trustee (incorporated by reference to Exhibit 4.2 to the Company’s Form 8-K filed on May 28, 2019).
|
|
|
|
|
|
Deposit Agreement, dated as of June 27, 2018, between Enstar Group Limited and American Stock Transfer (incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K filed on June 27, 2018).
|
|
|
|
|
|
Deposit Agreement, dated as of November 21, 2018, between Enstar Group Limited and American Stock Transfer (incorporated by reference to Exhibit 4.3 to the Company’s Form 8-K filed on November 21, 2018).
|
|
|
|
|
4.7*
|
|
Description of Securities.
|
|
|
|
|
Form of Warrant (incorporated by reference to Exhibit 99.2 to the Company’s Form 8-K filed on April 21, 2011).
|
|
|
|
|
|
Registration Rights Agreement, dated as of January 31, 2007, by and among Castlewood Holdings Limited, Trident II, L.P., Marsh & McLennan Capital Professionals Fund, L.P., Marsh & McLennan Employees’ Securities Company, L.P., Dominic F. Silvester, J. Christopher Flowers, and other parties thereto set forth on the Schedule of Shareholders attached thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K12B filed on January 31, 2007).
|
|
|
|
|
|
Registration Rights Agreement, dated as of April 20, 2011, by and among Enstar Group Limited, GSCP VI AIV Navi, Ltd., GSCP VI Offshore Navi, Ltd., GSCP VI Parallel AIV Navi, Ltd., GSCP VI Employee Navi, Ltd., and GSCP VI GmbH Navi, L.P. (incorporated by reference to Exhibit 99.3 to the Company’s Form 8-K filed on April 21, 2011).
|
|
|
|
|
|
Registration Rights Agreement, dated April 1, 2014, among Enstar Group Limited, FR XI Offshore AIV, L.P., First Reserve Fund XII, L.P., FR XII A Parallel Vehicle L.P., FR Torus Co-Investment, L.P. and Corsair Specialty Investors, L.P. (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on April 4, 2014).
|
|
|
|
|
|
Form of Waiver Agreement (incorporated herein by reference to Exhibit 4.7 to the Company's Form S-3 filed on October 10, 2017).
|
|
|
|
|
|
Shareholder Rights Agreement, dated June 3, 2015, between Enstar Group Limited and Canada Pension Plan Investment Board (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on June 3, 2015.
|
|
|
|
|
10.7+
|
|
Form of Director Indemnification Agreement (incorporated by reference to Exhibit 10.1 to the Company’s Form S-3 (No. 333-151461) initially filed on June 5, 2008).
|
|
|
|
10.8+
|
|
Amended and Restated Employment Agreement, dated as of January 21, 2020, by and between Enstar Group Limited and Dominic F. Silvester (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on January 27, 2020).
|
|
|
|
10.9+
|
|
Amended and Restated Employment Agreement, dated as of January 21, 2020, by and between Enstar Group Limited and Paul J. O’Shea (incorporated by reference to Exhibit 10.3 to the Company’s Form 8-K filed on January 27, 2020).
|
|
|
|
|
Amended and Restated Employment Agreement, dated January 21, 2020, by and between Enstar Group Limited and Orla M. Gregory (incorporated by reference to Exhibit 10.4 to the Company’s Form 8-K filed on January 27, 2020).
|
|
|
|
|
|
Employment Agreement, dated December 28, 2017, by and between Enstar Group Limited and Guy T.A. Bowker (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on January 4, 2018).
|
|
|
|
|
|
Employment Agreement, dated January 8, 2018, by and between Enstar Group Limited and Paul M.J. Brockman(incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q filed on May 8, 2019).
|
|
|
|
|
10.13*+
|
|
Employment Agreement, dated September 9, 2016, by and between Enstar Group Limited and Nazar Alobaidat.
|
|
|
|
|
Enstar Group Limited Deferred Compensation and Ordinary Share Plan for Non-Employee Directors, effective as of June 5, 2007 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on June 11, 2007).
|
|
|
|
|
|
Amended and Restated Enstar Group Limited Deferred Compensation and Ordinary Share Plan for Non-Employee Directors, effective as of January 1, 2015 (incorporated by reference to Exhibit 10.13 to the Company’s Form 10-K filed on March 2, 2015).
|
|
|
|
|
|
Form of Non-Employee Director Restricted Stock Award Agreement (incorporated by reference to Exhibit 10.32 to the Company’s Form 10-K filed on March 2, 2015).
|
|
|
|
|
|
Castlewood Holdings Limited 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.11 to the proxy statement/prospectus that forms a part of the Company’s Form S-4 declared effective December 15, 2006).
|
|
|
|
|
|
First Amendment to Castlewood Holdings Limited 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on April 6, 2007).
|
|
|
|
|
|
Form of Award Agreement under the Castlewood Holdings Limited 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on April 6, 2007).
|
|
|
|
|
|
Form of Stock Appreciation Right Award Agreement pursuant to the 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to the Company’s Form 10-Q filed on August 11, 2014).
|
|
|
|
|
|
Form of Restricted Stock Award Agreement pursuant to the 2006 Equity Incentive Plan (incorporated by reference to Exhibit 10.6 to the Company’s Form 10-Q filed on August 11, 2014).
|
|
|
|
|
|
Enstar Group Limited Amended and Restated 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on December 2, 2019).
|
|
|
|
|
|
Form of Restricted Stock Award Agreement under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on August 5, 2016).
|
|
|
|
|
|
Form of Stock Appreciation Right Award Agreement under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q filed on August 5, 2016).
|
|
|
|
|
|
Form of Restricted Stock Unit Award Agreement under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.2 to the Company's Form 10-Q filed on November 8, 2016).
|
|
|
|
|
|
Form of Performance Stock Unit Award Agreement under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.3 to the Company's Form 10-Q filed on November 8, 2016).
|
|
|
|
|
|
Form of Performance Stock Unit Award Agreement (2018) under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.1 to the Company's Form 10-Q filed on November 8, 2017).
|
|
|
|
|
|
Form of Performance Stock Unit Award Agreement (3-Year Cycle) (2020) under the Enstar Group Limited 2016 Equity Incentive Plan (incorporated by reference to Exhibit 10.5 to the Company’s Form 8-K filed on January 27, 2020).
|
|
|
|
|
10.29*+
|
|
Form of Performance Stock Unit Award Agreement (Annual Cycle) (2020) under the Enstar Group Limited 2016 Equity Incentive Plan.
|
|
|
|
10.30*+
|
|
Form of Restricted Stock Unit Award Agreement (2020) under the Enstar Group Limited 2016 Equity Incentive Plan.
|
|
|
|
|
Joint Share Ownership Agreement, dated January 21, 2020, by and among Enstar Group Limited, Dominic F. Silvester and Zedra Trust Company, as trustee (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on January 27, 2020).
|
|
|
|
|
|
Enstar Group Limited Amended and Restated Employee Share Purchase Plan (incorporated by reference to Exhibit 10.4 to the Company’s Form 10-Q filed on November 8, 2016).
|
|
|
|
|
|
Amended and Restated Enstar Group Limited 2019-2021 Annual Incentive Program (incorporated by reference to Exhibit 10.30 to the Company’s Form 10-K filed on March 1, 2019).
|
|
|
|
|
|
Amended and Restated Bayshore Shareholders’ Agreement, dated May 8, 2014, among Bayshore Holdings Limited, Kenmare Holdings Ltd., Trident V, L.P., Trident V Parallel Fund, L.P., Trident V Professionals Fund, L.P., and Dowling Capital Partners I, L.P. (incorporated by reference to Exhibit 10.3 of the Company’s Form 10-Q filed on August 11, 2014).
|
|
|
|
|
|
Voting and Shareholders’ Agreement, dated as of December 23, 2015, among North Bay Holdings Limited, Kenmare Holdings Ltd., Trident V, L.P., Trident V Parallel Fund, L.P., Trident V Professionals Fund, L.P., Dowling Capital Partners I, L.P., Atrium Nominees Limited, Bayshore Holdings Limited, Northshore Holdings Limited and Enstar Group Limited (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on December 30, 2015).
|
|
|
|
|
|
Second Amended and Restated Northshore Shareholders’ Agreement, dated as of December 23, 2015, among Northshore Holdings Limited, North Bay Holdings Limited and Atrium Nominees Limited (incorporated by reference to Exhibit 10.2 of the Company’s Form 8-K filed on December 30, 2015).
|
|
|
|
|
|
Exchange Agreement, dated as of February 2, 2018, by and among Enstar Group Limited, KaylaRe Holdings, Ltd., HH KaylaRe Holdings, Ltd., Hillhouse Fund III, L.P., Trident V, L.P., Trident V Parallel Fund, L.P, Trident V Professionals Fund, L.P., Souris Partners and Cavello Bay Reinsurance Limited (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on February 8, 2018).
|
|
|
|
|
|
Master Agreement, dated March 1, 2019, by and among Enstar Group Limited, Maiden Holdings, Ltd. and Maiden Reinsurance Ltd. (incorporated by reference to Exhibit 10.2 to the Company’s Form 10-Q filed on May 8, 2019).
|
|
|
Amendment to Master Agreement, dated June 28, 2019, by and among Enstar Group Limited, Maiden Holdings, Ltd. and Maiden Reinsurance Ltd. (incorporated by reference to Exhibit 10.1 to the Company’s Form 10-Q filed on August 6, 2019).
|
|
|
|
|
Subscription Agreement, dated as of December 11, 2018, by and between Cavello Bay Reinsurance Limited and Enhanzed Reinsurance Limited (incorporated by reference to Exhibit 10.36 to the Company’s Form 10-K filed on March 1, 2019).
|
|
|
|
|
|
Revolving Credit Agreement, dated as of August 16, 2018, by and among Enstar Group Limited and certain of its subsidiaries, National Australia Bank Limited, Barclays Bank PLC, Wells Fargo Securities, LLC Wells Fargo Bank, National Association and each of the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on August 21, 2018).
|
|
|
|
|
|
First Amendment to Revolving Credit Agreement, dated as of December 19, 2018, by and among Enstar Group Limited and certain of its subsidiaries, National Australia Bank Limited, Barclays Bank PLC, Wells Fargo Securities, LLC Wells Fargo Bank, National Association and each of the lenders party thereto (incorporated by reference to Exhibit 10.38 to the Company’s Form 10-K filed on March 1, 2019).
|
|
|
|
|
|
Term Loan Credit Agreement, dated as of December 27, 2018, by and among Enstar Group Limited and certain of its subsidiaries, Wells Fargo Bank, National Association and each of the lenders party thereto (incorporated by reference to Exhibit 10.1 of the Company’s Form 8-K filed on January 2, 2019).
|
|
|
|
|
|
Letter of Credit Facility Agreement, dated as of August 5, 2019, by and among Enstar Group Limited and certain of its subsidiaries, National Australia Bank Limited, London Branch, The Bank of Nova Scotia and each of the lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on August 7, 2019).
|
|
|
|
|
|
First Amendment to Letter of Credit Facility Agreement, dated as of December 9, 2019, by and among Enstar Group Limited and certain of its subsidiaries, National Australia Bank Limited, London Branch, The Bank of Nova Scotia and each of the lenders party thereto (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on December 11, 2019).
|
|
|
|
|
21.1*
|
|
List of Subsidiaries.
|
|
|
|
23.1*
|
|
Consent of KPMG Audit Limited.
|
|
|
|
31.1*
|
|
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
31.2*
|
|
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934 as adopted under Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.1**
|
|
Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
32.2**
|
|
Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
|
101*
|
|
Inline XBRL Document Set for the consolidated financial statements and accompanying notes in Part II, Item 8 of this Annual Report on Form 10-K.
|
|
|
|
104*
|
|
The cover page from the Company’s Annual Report on Form 10-K for the year ended December 31, 2019, formatted as Inline XBRL (included in Exhibit 101).
|
|
ENSTAR GROUP LIMITED
|
|
|
By:
|
/S/ DOMINIC F. SILVESTER
|
|
Dominic F. Silvester
Chief Executive Officer
|
|
|
|
Signature
|
|
Title
|
|
|
|
/s/ ROBERT J. CAMPBELL
Robert J. Campbell
|
|
Chairman and Director
|
|
|
|
/s/ DOMINIC F. SILVESTER
Dominic F. Silvester
|
|
Chief Executive Officer and Director
|
|
|
|
/s/ GUY BOWKER
Guy Bowker |
|
Chief Financial Officer (signing in his capacity as principal financial officer and principal accounting officer)
|
|
|
|
/s/ PAUL J. O’SHEA
Paul J. O’Shea
|
|
President and Director
|
|
|
|
/s/ B. FREDERICK BECKER
B. Frederick Becker
|
|
Director
|
|
|
|
/s/ SANDRA L. BOSS
Sandra L. Boss
|
|
Director
|
|
|
|
/s/ JAMES D. CAREY
James D. Carey
|
|
Director
|
|
|
|
/s/ HANS-PETER GERHARDT
Hans-Peter Gerhardt
|
|
Director
|
|
|
|
/s/ MYRON HENDRY
Myron Hendry |
|
Director
|
|
|
|
/s/ JIE LIU
Jie Liu
|
|
Director
|
|
|
|
/s/ HITESH PATEL
Hitesh Patel
|
|
Director
|
|
|
|
/s/ POUL A. WINSLOW
Poul A. Winslow
|
|
Director
|
•
|
on and after September 1, 2028, we have the option to redeem the Series D Preferred Shares, in whole or from time to time in part, at a redemption price equal to $25,000 per Series D Preferred Share (equivalent to $25.00 per depositary share);
|
•
|
we have the option to redeem all (but not less than all) of the Series D Preferred Shares, at a redemption price equal to the greater of (i) $25,000 per share (equivalent to $25.00 per depositary share) or (ii) the sum of the present value of $25,000 per Series D Preferred Share (equivalent to $25.00 per depositary share) and the present value of all undeclared dividends for the dividend periods from the redemption date to and including the September 1, 2028 dividend payment date, in each case, discounted to the redemption date on a quarterly basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined herein) plus 65 basis points, if we submit to our holders of ordinary shares a proposal for an amalgamation, consolidation, merger, scheme of arrangement, reconstruction, reincorporation, de-registration or any other similar transaction involving us that requires, or we submit any proposal for any other matter that (as a result of any change in Bermuda law after the date of this prospectus supplement, whether by enactment or official interpretation) requires, in either case, a vote of the holders of the Series D Preferred Shares at the time outstanding, voting as a single class (alone or with one or more other classes or series of preferred shares); provided, that no redemption may occur prior to September 1, 2028 unless (i) we have sufficient funds in order to meet the individual and group Enhanced Capital Requirements (as defined in the Bermuda capital adequacy regulations) under the BMA’s capital adequacy regulations (the “ECR”) and the BMA (or its successor, if any) approves of the redemption or (ii) we replace the capital represented by the Series D Preferred Shares with capital having equal or better treatment as the Series D Preferred Shares under the ECR (the conditions described in clauses (i) and (ii) above, the “Redemption Requirements”);
|
•
|
we will have the option to redeem all (but not less than all) of the Series D Preferred Shares, at a redemption price of $25,000 per share (equivalent to $25.00 per depositary share), if as a result of a “change in tax law” (as defined herein) there is, in our reasonable determination, a substantial probability that we or any successor company would become obligated to pay any additional amounts on the next succeeding dividend payment date with respect to the Series D Preferred Shares and the payment of those additional amounts cannot be avoided by the use of any reasonable measures available to us or any successor company (a “tax
|
•
|
we will have the option to redeem the Series D Preferred Shares, in whole or from time to time in part, at a redemption price of $25,000 per share (equivalent to $25.00 per depositary share), at any time within 90 days following the occurrence of the date on which we have reasonably determined a “capital disqualification event” (as defined herein) has occurred as a result of any amendment or proposed amendment to, or change or proposed change in, the laws or regulations of Bermuda that is enacted or becomes effective after the initial issuance of the Series D Preferred Shares or any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of the Series D Preferred Shares; provided that no redemption may occur prior to September 1, 2028 unless one of the Redemption Requirements is met; and
|
•
|
we will have the option to redeem all (but not less than all) of the Series D Preferred Shares, at a redemption price of $25,500 per share (equivalent to $25.50 per depositary share) within 90 days of the occurrence of a “rating agency event” (as defined herein); provided that no redemption may occur prior to September 1, 2028 unless one of the Redemption Requirements is met.
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•
|
on and after March 1, 2024, we will have the option to redeem the Series E Preferred Shares, in whole or from time to time in part, at a redemption price equal to $25,000 per Series E Preferred Share (equivalent to $25.00 per depositary share);
|
•
|
we will have the option to redeem all (but not less than all) of the Series E Preferred Shares, at a redemption price of $26,000 per share (equivalent to $26.00 per depositary share), if we submit to our holders of ordinary shares a proposal for an amalgamation, consolidation, merger, scheme of arrangement, reconstruction, reincorporation, de-registration or any other similar transaction involving us that requires, or we submit any proposal for any other matter that (as a result of any change in Bermuda law after the date of this prospectus supplement, whether by enactment or official interpretation) requires, in either case, a vote of the holders of the Series E Preferred Shares at the time outstanding, voting as a single class (alone or with one or more other classes or series of preference shares); provided, that no redemption may occur prior to March 1, 2024 unless (i) we have sufficient funds in order to meet the individual and group Enhanced Capital Requirements (as defined in the Bermuda capital adequacy regulations) under the BMA’s capital adequacy regulations (the “ECR”) and the BMA (or its successor, if any) approves of the redemption or (ii) we replace the capital represented by the Series E Preferred Shares with capital having equal or better treatment as the Series E Preferred Shares under the ECR (the conditions described in clauses (i) and (ii) above, the “Redemption Requirements”);
|
•
|
we will have the option to redeem all (but not less than all) of the Series E Preferred Shares, at a redemption price of $25,000 per share (equivalent to $25.00 per depositary share), if as a result of a “change in tax law” (as defined herein) there is, in our reasonable determination, a substantial probability that we or any successor company would become obligated to pay any additional amounts on the next succeeding dividend payment date with respect to the Series E Preferred Shares and the payment of those additional amounts cannot be avoided by the use of any reasonable measures available to us or any successor company (a “tax event”); provided that no redemption may occur prior to March 1, 2024 unless one of the Redemption Requirements is met;
|
•
|
we will have the option to redeem the Series E Preferred Shares, in whole or from time to time in part, at a redemption price of $25,000 per share (equivalent to $25.00 per depositary share), at any time within 90 days following the occurrence of the date on which we have reasonably determined a “capital disqualification event” (as defined herein) has occurred as a result of any amendment or proposed amendment to, or change or proposed change in, the laws or regulations of Bermuda that is enacted or becomes effective after the initial issuance of the Series E Preferred Shares or any official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws or regulations that is announced after the initial issuance of the Series E Preferred Shares; provided that no redemption may occur prior to March 1, 2024 unless one of the Redemption Requirements is met; and
|
•
|
we will have the option to redeem all (but not less than all) of the Series E Preferred Shares, at a redemption price of $25,500 per share (equivalent to $25.50 per depositary share) within 90 days of the occurrence of a “rating agency event” (as defined herein); provided that no redemption may occur prior to March 1, 2024 unless one of the Redemption Requirements is met.
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Number of RSUs Becoming Vested
|
Vesting Date
|
|
|
|
|
|
|
(i)
|
If the Grantee’s Termination of Service occurs by reason of the Grantee’s death, disability or termination by the Company or a Related Corporation without Cause (or, if the Grantee’s employment agreement so provides, the voluntary termination by the Grantee for Good Reason), 100% of the unvested RSUs shall vest as of the date of such Termination of Service.
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(ii)
|
If the Grantee experiences a Termination of Service for Cause, any RSUs granted to the Grantee shall be forfeited at the time of such termination, and the Committee may require
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(iii)
|
Except as otherwise provided in this paragraph 3, if the Grantee experiences a Termination of Service for any reason, any RSUs granted to the Grantee that are not fully vested as of the date of Termination of Service shall be forfeited at the time of such termination.
|
(c)
|
Upon the occurrence of a Change in Control, if the Committee makes a good faith determination that an Alternative Award (as defined in Section 14 of the Plan) has not been granted by the acquirer, 100% of the unvested RSUs shall vest as of the date of the Change in Control.
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(d)
|
Upon the occurrence of a Change in Control, if the Committee makes a good faith determination that an Alternative Award has been granted by the acquirer, the Alternative Award shall continue to vest subject to this paragraph 3.
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Name
|
Jurisdiction of Incorporation
|
Alpha Insurance SA
|
Belgium
|
Arden Reinsurance Company Ltd.*
|
Bermuda
|
Arena SA*
|
Belgium
|
Atrium 5 Limited*
|
United Kingdom
|
Atrium Insurance Agency Limited*
|
United Kingdom
|
Atrium Underwriters Limited*
|
United Kingdom
|
Atrium Underwriting Group Limited*
|
United Kingdom
|
Cavello Bay Reinsurance Limited
|
Bermuda
|
Clarendon National Insurance Company
|
Texas
|
Copper Coast Funds ICAV
|
Ireland
|
East Point Reinsurance Company of Hong Kong Limited
|
Hong Kong
|
Enstar Australia Holdings Pty Limited
|
Australia
|
Enstar Limited
|
Bermuda
|
Enstar (US Asia-Pac) Holdings Limited
|
United Kingdom
|
Fitzwilliam Insurance Limited
|
Bermuda
|
Gordian Runoff Limited
|
Australia
|
Harper Insurance Limited
|
Bermuda
|
Inter-Ocean Reinsurance (Ireland) Limited
|
Ireland
|
Kenmare Holdings Ltd.
|
Bermuda
|
Kinsale Brokers Limited
|
United Kingdom
|
Maiden Reinsurance North America, Inc.
|
Missouri
|
Mercantile Indemnity Company Limited
|
United Kingdom
|
North Bay Holdings Limited*
|
Bermuda
|
Northshore Holdings Limited*
|
Bermuda
|
Paladin Managed Care Services, Inc.
|
California
|
Pavonia Life Insurance Company of New York
|
New York
|
Providence Washington Insurance Company
|
Rhode Island
|
River Thames Insurance Company Limited
|
United Kingdom
|
Rombalds Run-Off Limited
|
United Kingdom
|
SGL No.1 Limited
|
United Kingdom
|
StarStone Bermuda Intermediaries Ltd.*
|
Bermuda
|
StarStone Corporate Capital Limited*
|
Ireland
|
StarStone Corporate Capital 1 Limited*
|
United Kingdom
|
StarStone Insurance Bermuda Limited*
|
Bermuda
|
StarStone Insurance SE*
|
Liechtenstein
|
StarStone Insurance Services Limited*
|
United Kingdom
|
StarStone National Insurance Company*
|
Delaware
|
StarStone Specialty Insurance Company*
|
Delaware
|
StarStone Underwriting Limited*
|
United Kingdom
|
Vander Haeghen & Co SA*
|
Belgium
|
Yosemite Insurance Company
|
Oklahoma
|
Notes:
|
|
(1) The subsidiary listing excludes noncontrolled entities and branches of subsidiaries. Subsidiaries marked with an asterisk are not wholly owned, directly or indirectly, by Enstar Group Limited. A number of subsidiaries have been omitted from the list because, considered in the aggregate, they would not constitute a single significant subsidiary.
|
|
/s/ KPMG Audit Limited
|
KPMG Audit Limited
|
Hamilton, Bermuda
|
1.
|
I have reviewed this Annual Report on Form 10-K of Enstar Group Limited;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ DOMINIC F. SILVESTER
|
Dominic F. Silvester
|
Chief Executive Officer
|
1.
|
I have reviewed this Annual Report on Form 10-K of Enstar Group Limited;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a.
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b.
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c.
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d.
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a.
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b.
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/S/ GUY BOWKER
|
Guy Bowker
|
Chief Financial Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ DOMINIC F. SILVESTER
|
Dominic F. Silvester
|
Chief Executive Officer
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
/S/ GUY BOWKER
|
Guy Bowker
|
Chief Financial Officer
|