| LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES | LOSS AND LOSS ADJUSTMENT EXPENSE RESERVES At December 31, 2022, the Company’s loss and loss adjustment expense reserves included estimated amounts for several catastrophe events. For significant catastrophe events, including, but not limited to, hurricanes, tornados, typhoons, floods, earthquakes, wildfires, war and pandemics, loss reserves are generally established based on loss payments and case reserves reported by clients when received. To establish IBNR loss estimates, the Company makes use of, among other things, the following information: • estimates communicated by ceding companies; • information received from clients, brokers, and loss adjusters; • an understanding of the underlying business written and its exposures to catastrophe event-related losses; • industry data; • catastrophe scenario modeling software; and • management’s judgment. At December 31, 2022, the Company’s loss and loss adjustment expense reserves included $13.6 million from the Russian-Ukrainian conflict and $19.5 million from Hurricane Ian. Additional information the Company considered in estimating its loss reserves included the following: • a review of in-force treaties that may provide coverage and incur losses; • catastrophe and scenario modeling analyses and results shared by cedents; • preliminary loss estimates received from clients, brokers, and loss adjusters; • reviews of industry insured loss estimates and market share analyses; and • management’s judgment. The Company’s Russian-Ukrainian conflict loss estimates include actuarial assumptions, including: • the areas within the affected regions that have incurred losses; • the scope of coverage provided by the underlying policies; • the interpretation of contract terms; • the determination of loss-triggering events; • regulatory, legislative, and judicial actions that could influence contract interpretations across the insurance industry; and • the ability of the cedents and insured to mitigate some or all of their losses. Due to the uncertainty associated with the foregoing assumptions, the Company’s loss estimates are subject to significant variability, and actual losses may ultimately differ materially from the Company's current estimates. The Company will evaluate its assumptions as new information becomes available and may adjust its loss estimates in future periods. Such adjustments may be material to the Company's results of operations and financial condition. Additionally, if the Russian-Ukrainian conflict is prolonged, the Company may incur additional losses in subsequent periods. At December 31, 2022 and 2021, loss and loss adjustment expense reserves were composed of the following: December 31, 2022 December 31, 2021 ($ in thousands) Case reserves $ 184,756 $ 190,220 IBNR 370,712 333,790 Total $ 555,468 $ 524,010 A summary of changes in outstanding loss and loss adjustment expense reserves for all lines of business consolidated for the years ended December 31, 2022, 2021, and 2020 is as follows: Consolidated 2022 2021 2020 ($ in thousands) Gross balance at January 1 $ 524,010 $ 494,179 $ 470,588 Less: Losses recoverable (11,100) (16,851) (27,531) Net balance at January 1 512,910 477,328 443,057 Incurred losses related to: Current year 316,367 389,080 333,096 Prior years 118 (14,100) 4,737 Total incurred 316,485 374,980 337,833 Paid losses related to: Current year (78,517) (152,214) (109,509) Prior years (198,897) (185,549) (195,726) Total paid (277,414) (337,763) (305,235) Foreign currency revaluation (9,752) (1,635) 1,673 Net balance at December 31 542,229 512,910 477,328 Add: Losses recoverable 13,239 11,100 16,851 Gross balance at December 31 $ 555,468 $ 524,010 $ 494,179 Loss development Year ended December 31, 2022 During the year ended December 31, 2022, the Company experienced $0.1 million in net adverse development on prior year loss and LAE reserves. This net adverse development resulted primarily from the following: • $8.1 million of adverse development on motor and health business attributed to inflation-driven increases in claims costs; • $7.1 million of adverse development on multi-line business driven by worse than expected claims experience on whole account contracts written from 2014-2018; • $3.7 million of adverse development on professional liability contracts written from 2014 to 2017; • $3.0 million of adverse development on workers’ compensation contracts driven by poor claims experience across several states in the U.S.; and • $2.0 million of adverse development on general liability contracts due to reported claims being settled above expected levels. The adverse developments were partially offset by favorable developments relating to prior accident years primarily due to the following: • $9.8 million of favorable experience on mortgage business. On a financial-impact basis, the favorable loss development on these contracts was offset by increased profit commissions, which are included in the caption “Acquisition costs” in the Company’s consolidated statements of operations; • $9.2 million of favorable development on multi-line business driven primarily by a loss portfolio transfer on a whole account contract and better than anticipated claims experience on a combined workers’ compensation and commercial packages account across multiple years; and • $7.2 million of loss reserves released relating to catastrophe events, COVID-19, and property covers based on updated claims reporting received from cedents. The remaining development on prior year loss and LAE reserves recognized in 2022 related to several smaller adjustments made across various lines of business. Year ended December 31, 2021 During the year ended December 31, 2021, the Company experienced $14.1 million in net favorable development on prior year loss and LAE reserves. This net favorable development resulted primarily from the following: • $14.7 million of better-than-expected claims reporting on motor contracts, primarily relating to contracts that incepted in 2015 and 2016; • $8.9 million favorable loss development on various specialty lines of business, including crop, space, and marine and energy, as actual losses reported were better than expected; • $5.0 million of favorable loss development on mortgage contracts resulting from lower delinquencies and fewer reported claims than initially anticipated. On a financial-impact basis, the favorable loss development on these contracts was offset by increased profit commissions, which are included in the caption “Acquisition costs” in the Company’s consolidated statements of operations; and • $3.5 million favorable loss development on a multi-line contract that incepted in 2019. The favorable developments were partially offset by adverse developments relating to prior accident years primarily due to the following: • $14.4 million of adverse development on multi-line casualty contracts primarily relating to contracts that incepted in 2014 and 2015, resulting from unfavorable development in reported claims; • $2.9 million of adverse development on a general liability contract resulting from unfavorable development in reported claims; and • $1.2 million of adverse development on workers’ compensation contracts resulting from higher than anticipated losses. The remaining development on prior year loss and LAE reserves recognized in 2021 related to several smaller adjustments made across various lines of business. Year ended December 31, 2020 During the year ended December 31, 2020, the Company experienced $4.7 million in net adverse development on prior year loss and LAE reserves. This net adverse development resulted primarily from the following: • $7.6 million of adverse loss development on multi-line contracts that incepted from 2015 to 2018, resulting from unfavorable development in reported claims; • $1.9 million of adverse loss development on general liability contracts, primarily relating to unfavorable development in reported claims on a contract that incepted in 2019; • $1.9 million of adverse loss development on specialty health contracts primarily arising from a few large medical claims reported on a contract that incepted in 2019; and • $1.5 million of adverse loss development on motor contracts relating to the 2018 and 2019 treaty years, partially offset by favorable loss development on contracts that incepted from 2015 to 2017. The adverse developments were partially offset by favorable developments relating to prior accident years primarily due to the following: • $4.5 million of favorable development on property contracts primarily resulting from lower than anticipated losses relating to the 2017 and 2018 catastrophe events, partially offset by adverse loss development on 2019 contracts; • $2.2 million of favorable loss development on solicitors’ professional indemnity contracts resulting primarily from lower than expected claims on prior accident years. • $1.9 million of favorable loss development on a professional liability contract relating to a contract that incepted in 2008 where the reported claims have been lower than those previously anticipated. The remaining development on prior year loss and LAE reserves recognized in 2020 related to several smaller adjustments made across various lines of business. The changes in the outstanding loss and loss adjustment expense reserves for health claims for the years ended December 31, 2022, 2021, and 2020 are as follows: Health 2022 2021 2020 ($ in thousands) Gross balance at January 1 $ 11,894 $ 18,629 $ 19,306 Less: Losses recoverable — — — Net balance at January 1 11,894 18,629 19,306 Incurred losses related to: Current year 8,667 38,109 37,064 Prior years 2,822 (780) 870 Total incurred 11,489 37,329 37,934 Paid losses related to: Current year (5,219) (28,896) (21,313) Prior years (11,532) (15,168) (17,298) Total paid (16,751) (44,064) (38,611) Foreign currency revaluation — — — Net balance at December 31 6,632 11,894 18,629 Add: Losses recoverable 665 — — Gross balance at December 31 $ 7,297 $ 11,894 $ 18,629 Disclosures about Short-Duration Contracts The Company has one operating segment, Property & Casualty Reinsurance, and categorizes its business as Property, Casualty, and Other. The Company’s loss development tables presented below have been disaggregated by lines of business for the years ended from December 31, 2013, through 2022. For purposes of the loss development tables, the property business has been further disaggregated into "Property" and "Motor - Physical Damage." The casualty category has been disaggregated into "General Liability," "Motor Liability," "Professional Liability," and "Workers' Compensation." Contracts that cover more than one line of business, including Lloyd’s business, are grouped as "Multi-line." In addition, the incurred and paid claims relating to accident and health business have been presented separately as "Health." Other specialty business, including aviation, crop, cyber, energy, and marine, which are individually insignificant to our overall business, have been grouped as "Other." As the Company’s financial lines business has grown recently, the Company has elected to present the loss development table for financial business separately. During 2022, the Company revised its line-of-business allocation for certain contracts and disaggregated the “Financial” line from the “Other” loss development table. As a result, the historical incurred and paid claims development presented in the tables below differ from those disclosed in previously issued financial statements. Conforming changes were also made to the table above presenting t he changes in the outstanding loss and loss adjustment expense reserves for health claims for the years ended December 31, 2021, and 2020. The amounts shown in the caption “Net loss and loss adjustment expenses incurred” in the Company’s Consolidated Statements of Operations and the allocation between “Current year” and “Prior years” are unaffected by these revisions. For each category, the following tables present the incurred and paid claims development at December 31, 2022, net of retrocession, and the total of incurred but not reported liabilities plus expected development on reported claims included within the net incurred claims amount. Health claims have been disaggregated and presented separately. The tables below present incurred and paid claims development for the years ended December 31, 2013 to 2021. They are presented as unaudited supplementary information. Totals may not sum due to rounding. Health Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 31,293 $ 34,612 $ 34,759 $ 34,518 $ 34,490 $ 34,458 $ 34,457 $ 34,437 $ 34,437 $ 34,429 $ — 2014 33,755 30,844 30,163 29,722 29,475 29,407 29,397 29,397 29,393 — 2015 35,082 34,514 35,099 34,549 34,498 34,535 34,493 34,535 100 2016 38,768 41,910 41,969 42,049 41,999 41,833 41,833 66 2017 45,911 47,349 47,834 47,682 47,600 47,531 46 2018 57,925 61,365 60,911 60,598 60,372 10 2019 34,623 36,168 35,755 35,670 1,135 2020 37,064 37,275 37,558 1,245 2021 38,109 41,028 670 2022 8,667 3,448 Total $ 371,016 $ 6,721 Health Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 21,674 $ 34,353 $ 34,537 $ 34,470 $ 34,457 $ 34,457 $ 34,457 $ 34,437 $ 34,437 $ 34,429 2014 19,329 28,919 29,532 29,453 29,446 29,407 29,397 29,397 29,393 2015 14,778 32,331 34,631 34,481 34,441 34,440 34,440 34,435 2016 22,126 40,554 41,881 41,806 41,788 41,788 41,767 2017 24,105 44,980 47,582 47,507 47,502 47,485 2018 35,134 59,499 60,521 60,436 60,362 2019 17,677 34,077 34,551 34,535 2020 21,313 36,096 36,313 2021 28,896 40,358 2022 5,219 Total 364,295 All outstanding liabilities before 2013, net of reinsurance (89) Liabilities for claims and claims adjustment expenses, net of reinsurance (Health) $ 6,632 Multiline Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ — $ — $ — $ — $ — $ — $ — $ — $ (7) $ (7) $ — 2014 2,390 2,390 2,390 2,609 2,625 2,586 2,653 3,010 3,256 710 2015 27,826 27,957 30,361 31,850 30,753 32,154 34,877 36,683 6,702 2016 55,471 59,668 60,363 59,398 61,858 67,267 70,133 14,265 2017 82,815 78,969 82,725 84,552 89,056 91,056 19,786 2018 58,143 50,404 53,405 53,665 54,135 11,006 2019 45,299 48,696 47,914 46,553 10,092 2020 52,665 51,777 46,363 11,936 2021 77,944 75,552 43,084 2022 121,725 103,130 Total $ 545,449 $ 220,711 Multiline Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ — $ — $ — $ — $ — $ — $ — $ — $ (7) $ (7) 2014 — — 145 566 1,092 1,413 1,995 2,281 2,546 2015 25 2,788 9,836 15,917 18,868 24,580 27,212 29,981 2016 5,825 16,391 26,746 32,594 42,308 48,616 55,868 2017 9,498 27,107 39,188 53,535 63,449 71,269 2018 8,070 20,480 31,912 38,512 43,129 2019 10,948 23,182 29,966 36,461 2020 12,327 23,943 34,428 2021 13,440 32,468 2022 18,595 Total 324,738 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline) $ 220,711 General Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 3,018 $ 2,689 $ 4,666 $ 4,511 $ 4,510 $ 4,916 $ 4,770 $ 4,648 $ 4,980 $ 5,198 $ — 2014 1,238 1,229 1,174 1,033 1,355 1,000 1,000 3,606 1,144 78 2015 1,699 1,690 1,756 1,979 2,152 2,190 2,294 1,866 172 2016 6,203 6,519 7,124 7,867 8,095 8,444 9,389 198 2017 5,425 6,519 7,374 8,444 9,951 7,533 133 2018 2,874 3,411 3,921 4,585 4,097 1,417 2019 1,000 986 1,031 649 361 2020 1,812 1,776 1,633 1,507 2021 5,141 12,059 11,957 2022 16,229 15,821 Total $ 59,797 $ 31,644 General Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 1,371 $ 1,917 $ 2,298 $ 4,191 $ 4,274 $ 4,652 $ 4,770 $ 4,648 $ 4,980 $ 5,198 2014 18 146 413 548 492 762 473 1,014 1,066 2015 69 293 532 548 926 945 1,431 1,694 2016 122 1,589 3,276 4,670 6,109 6,565 9,191 2017 136 1,412 2,823 4,381 5,703 7,400 2018 165 1,286 2,275 2,790 2,680 2019 26 226 306 288 2020 71 71 126 2021 — 102 2022 408 Total 28,153 All outstanding liabilities before 2013, net of reinsurance 28 Liabilities for claims and claims adjustment expenses, net of reinsurance (General Liability) $ 31,672 Motor Casualty Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 182,833 $ 179,930 $ 174,744 $ 175,094 $ 175,161 $ 175,233 $ 175,177 $ 175,206 $ 175,180 $ 175,205 $ 12 2014 93,718 92,844 94,688 94,131 94,147 94,192 94,230 94,226 94,230 77 2015 128,199 130,410 129,745 132,853 134,951 133,632 128,536 128,567 258 2016 166,389 169,789 174,037 183,801 180,118 180,003 180,045 414 2017 187,109 188,754 199,258 191,064 188,718 188,207 937 2018 150,700 162,016 149,467 148,830 147,369 5,452 2019 168,154 193,242 189,971 190,477 3,799 2020 98,243 97,356 99,091 6,838 2021 102,415 104,647 13,861 2022 21,973 1,451 Total $ 1,329,809 $ 33,099 Motor Casualty Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 86,558 $ 159,200 $ 171,855 $ 174,997 $ 175,187 $ 175,187 $ 175,193 $ 175,192 $ 175,193 $ 175,193 2014 49,994 86,297 89,348 94,046 94,105 94,151 94,150 94,153 94,153 2015 81,093 125,645 129,174 129,351 129,454 128,121 128,280 128,309 2016 97,325 157,948 170,658 182,800 179,033 179,540 179,631 2017 115,204 170,157 188,225 186,105 187,047 187,270 2018 83,652 143,267 141,593 141,764 141,918 2019 99,043 170,331 184,519 186,678 2020 42,778 87,180 92,252 2021 56,700 90,786 2022 20,522 Total 1,296,710 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Casualty) $ 33,099 Motor Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 46,189 $ 45,629 $ 44,728 $ 44,656 $ 44,695 $ 44,719 $ 44,719 $ 44,724 $ 44,729 $ 44,724 $ 3 2014 18,870 18,797 19,056 19,000 19,006 19,004 19,020 19,036 19,020 47 2015 22,035 22,516 23,005 23,263 23,396 23,246 22,901 22,712 67 2016 27,853 28,279 29,090 30,367 29,822 29,858 29,835 95 2017 39,486 39,621 41,394 39,720 39,643 39,334 202 2018 42,336 45,209 43,266 41,122 40,753 430 2019 43,103 48,007 49,140 48,782 901 2020 23,785 23,837 24,310 1,546 2021 25,743 28,845 2,241 2022 3,726 640 Total $ 302,042 $ 6,172 Motor Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 21,112 $ 41,066 $ 44,387 $ 44,675 $ 44,719 $ 44,719 $ 44,721 $ 44,721 $ 44,721 $ 44,721 2014 10,305 17,621 18,370 18,951 18,957 18,972 18,972 18,973 18,973 2015 13,859 22,123 22,615 22,705 22,749 22,625 22,642 22,646 2016 16,707 27,005 28,591 30,033 29,647 29,726 29,740 2017 23,091 37,058 39,711 38,971 39,115 39,132 2018 23,576 40,118 40,086 40,246 40,323 2019 25,103 43,672 47,346 47,881 2020 10,880 21,684 22,764 2021 14,955 26,605 2022 3,087 Total 295,870 All outstanding liabilities before 2013, net of reinsurance (19) Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Property) $ 6,152 Property Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 60,949 $ 58,994 $ 61,778 $ 62,496 $ 62,484 $ 62,423 $ 62,766 $ 62,649 $ 62,727 $ 62,521 $ 67 2014 41,737 45,151 46,842 47,082 46,871 47,027 46,994 46,952 46,930 262 2015 27,839 30,321 31,719 30,920 30,581 30,521 30,392 30,436 223 2016 25,603 26,058 23,932 23,404 23,140 22,962 23,018 273 2017 81,378 76,605 67,409 67,858 67,665 67,033 1,656 2018 27,888 29,761 24,491 23,794 23,229 3,374 2019 22,247 14,571 13,979 12,176 2,375 2020 29,139 25,196 21,643 6,540 2021 26,720 27,018 13,824 2022 41,248 22,098 Total $ 355,251 $ 50,690 Property Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 34,807 $ 55,669 $ 58,526 $ 60,345 $ 61,075 $ 61,988 $ 62,229 $ 62,305 $ 62,368 $ 62,454 2014 20,230 40,172 43,638 45,208 46,298 46,518 46,615 46,632 46,668 2015 12,941 25,441 28,825 29,790 29,996 30,099 30,121 30,214 2016 9,937 18,162 20,991 21,974 22,321 22,654 22,745 2017 43,261 55,529 62,869 64,100 65,267 65,377 2018 5,192 15,414 18,134 18,848 19,855 2019 4,046 6,937 8,327 9,801 2020 6,011 11,289 15,103 2021 4,953 13,194 2022 19,150 Total 304,561 All outstanding liabilities before 2013, net of reinsurance (42) Liabilities for claims and claims adjustment expenses, net of reinsurance (Property) $ 50,648 Professional Liability Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 11,357 $ 12,165 $ 13,557 $ 15,065 $ 15,814 $ 15,973 $ 15,791 $ 15,471 $ 15,257 $ 15,264 $ 329 2014 17,564 17,016 16,982 19,317 20,232 20,528 20,289 19,770 19,768 916 2015 17,567 17,549 19,999 21,271 21,434 20,771 20,607 21,466 2,563 2016 13,432 16,521 16,855 16,451 16,273 16,713 17,528 4,213 2017 10,176 9,863 9,685 9,904 10,272 11,146 2,849 2018 4,471 4,458 4,578 5,171 6,167 1,593 2019 586 611 762 922 264 2020 66 62 62 63 2021 158 165 165 2022 464 464 Total $ 92,954 $ 13,419 Professional Liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 649 $ 3,180 $ 7,097 $ 10,207 $ 12,871 $ 13,575 $ 13,404 $ 14,795 $ 14,726 $ 14,935 2014 1,251 4,969 8,874 12,945 15,023 15,032 18,336 18,300 18,852 2015 1,084 3,065 8,343 11,113 11,937 16,452 17,915 18,903 2016 325 2,079 4,687 7,552 10,191 11,287 13,315 2017 222 1,418 3,062 4,821 5,783 8,297 2018 240 1,139 1,979 3,229 4,574 2019 145 266 544 658 2020 — — — 2021 — — 2022 — Total 79,536 All outstanding liabilities before 2013, net of reinsurance 425 Liabilities for claims and claims adjustment expenses, net of reinsurance (Professional Liability) $ 13,844 Workers' Compensation Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ — 2014 — — — 3 — — — 160 — — 2015 1,014 1,010 948 950 951 919 919 889 20 2016 4,342 4,275 4,266 3,975 3,778 3,716 3,646 81 2017 10,879 10,343 9,600 9,060 8,756 8,977 426 2018 13,595 13,485 13,039 12,544 12,909 800 2019 22,926 23,311 22,612 23,955 3,808 2020 44,845 40,826 43,633 11,525 2021 64,679 63,398 20,544 2022 33,284 24,219 Total $ 195,443 $ 61,421 Workers' Compensation Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 $ 4,751 2014 — — — — — — — — — 2015 28 251 564 688 777 832 851 870 2016 613 1,920 2,782 3,274 3,459 3,521 3,565 2017 2,028 5,356 7,399 8,003 8,379 8,551 2018 4,213 8,321 10,773 11,806 12,109 2019 5,473 13,600 17,655 20,148 2020 11,288 23,463 32,108 2021 23,210 42,854 2022 9,066 Total 134,021 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation) $ 61,421 Financial Lines Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 285 $ 644 $ 754 $ 752 $ 741 $ 728 $ 686 $ 661 $ 98 $ 172 $ 428 2014 500 503 580 506 1,096 2,063 2,228 1,668 1,959 (257) 2015 1,947 2,206 3,025 3,010 3,121 3,087 3,034 3,035 220 2016 4,820 6,670 6,289 7,470 7,470 6,694 6,676 254 2017 9,006 5,865 6,277 8,339 6,789 6,068 75 2018 4,069 4,429 6,646 4,838 4,775 568 2019 7,741 12,319 10,509 8,521 2,396 2020 18,647 19,825 17,615 8,490 2021 17,700 16,397 14,201 2022 23,978 23,158 Total $ 89,198 $ 49,534 Financial Lines Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ — $ 209 $ 244 $ 87 $ 72 $ 326 $ 289 $ 300 $ (336) $ (256) 2014 90 347 429 587 1,210 2,279 2,483 1,896 2,216 2015 223 851 1,399 1,964 2,477 2,651 2,746 2,815 2016 1,193 2,426 4,726 6,340 6,279 6,295 6,423 2017 187 2,894 4,603 5,584 5,683 5,993 2018 671 3,931 3,655 3,807 4,207 2019 2,949 4,009 4,760 6,125 2020 2,705 5,017 9,125 2021 500 2,196 2022 820 Total 39,664 All outstanding liabilities before 2013, net of reinsurance 9 Liabilities for claims and claims adjustment expenses, net of reinsurance (Other) $ 49,543 Other Incurred claims and allocated claim adjustment expenses, net of reinsurance December 31, 2022 For the years ended December 31, Total IBNR plus expected development on reported claims Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ 1,458 $ 1,461 $ 1,531 $ 1,511 $ 1,514 $ 1,514 $ 1,511 $ 1,511 $ 1,514 $ 1,511 $ — 2014 3,388 2,369 545 546 544 491 491 680 491 1 2015 1,861 3,579 2,890 853 854 177 179 174 41 2016 2,509 2,697 1,126 954 973 1,004 1,017 263 2017 993 994 569 1,023 1,093 1,111 358 2018 1,311 2,369 2,433 2,295 2,435 497 2019 9,136 7,874 6,950 7,065 949 2020 24,491 17,478 20,953 5,666 2021 30,020 24,410 13,162 2022 44,170 43,077 Total $ 103,336 $ 64,013 Other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 (Unaudited - Supplementary Information) ($ in thousands) 2013 $ (3) $ 878 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 $ 1,511 2014 101 174 545 546 519 491 491 491 491 2015 — 8 24 55 73 100 106 133 2016 35 111 285 389 559 610 754 2017 24 163 284 458 547 754 2018 26 1,168 1,409 1,776 1,938 2019 2,141 4,374 5,490 6,116 2020 2,631 12,927 15,287 2021 8,838 11,248 2022 1,093 Total 39,323 All outstanding liabilities before 2013, net of reinsurance — Liabilities for claims and claims adjustment expenses, net of reinsurance (Other) $ 64,013 For incurred and paid claims denominated in currencies other than U.S. dollars, the above tables are presented using the foreign exchange rate in effect at the current year-end date. As a result, all prior year information has been restated to reflect December 31, 2022, foreign exchange rates. This treatment prevents changes in foreign currency exchange rates from distorting the claims development between the years presented. For assumed contracts, the Company does not generally receive claims information by accident year from the ceding insurers but instead receives claims information by the treaty year of the contract. Claims reported by the ceding insurer to the Company may have the covered losses occurring in an accident year other than the treaty year. Some incurred and paid claims have been allocated to the accident years for the loss development tables based on the proportion of premiums earned for each contract during such accident year. For example, a one-year quota-share reinsurance treaty incepting on October 1, 2020 (with underlying policies each having a one-year duration) would have a 24-month period over which the premiums would be earned. Therefore, claims would be allocated to accident years 2020, 2021 and 2022 based on the proportion of the premiums earned during each accident year. For illustration of this contract, any claims reported during 2020 would be allocated to the 2020 accident year. For losses reported during 2021, the claims would be allocated between 2020 and 2021 based on the percentage of premiums earned during 2020 and 2021. Similarly, for losses reported during 2022 and thereafter, the losses would be allocated to the 2020, 2021 and 2022 accident years based on the proportion of premiums earned during each of those years. However, natural catastrophes and certain other large losses are addressed separately and are assigned to the accident year in which they occurred. The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows: December 31, 2022 ($ in thousands) Net outstanding liabilities Health $ 6,632 Multiline 220,711 General Liability 31,672 Motor Casualty 33,099 Motor Property 6,152 Property 50,648 Professional Liability 13,844 Workers' Compensation 61,421 Financial Lines 49,543 Other 64,013 Liabilities for claims and claims adjustment expenses, net of reinsurance 537,735 Add: Reinsurance recoverable on unpaid claims 13,239 Add: Unallocated claims adjustment expenses 4,432 Add: Allowance for credit losses 62 Total gross liabilities for unpaid claims and claim adjustment expense $ 555,468 The average historical annual percentage payout of net incurred claims (excluding health) at December 31, 2022, is as follows: Years 1 2 3 4 5 6 7 8 9 10 (Unaudited - Supplementary Information) Multiline 11.2 % 16.1 % 14.0 % 11.9 % 10.5 % 10.2 % 10.4 % 8.8 % 4.7 % 2.2 % General Liability 4.7 % 13.6 % 12.9 % 12.2 % 18.1 % 27.6 % 7.2 % 2.9 % 0.5 % 0.3 % Motor Casualty 49.0 % 35.8 % 7.8 % 3.7 % 1.7 % 1.0 % 0.8 % 0.2 % — % — % Motor Property 53.3 % 40.8 % 4.9 % 1.0 % — % — % — % — % — % — % Property 49.5 % 34.7 % 8.0 % 2.9 % 2.5 % 0.8 % 1.0 % 0.5 % 0.1 % — % Professional Liability 2.9 % 10.4 % 15.2 % 13.5 % 9.4 % 7.9 % 5.8 % 2.2 % 3.2 % 29.5 % Workers' Compensation 30.9 % 36.5 % 22.4 % 7.6 % 1.6 % 0.8 % 0.1 % 0.1 % — % — % Financial Lines 20.9 % 34.3 % 21.2 % 11.3 % 4.5 % 3.7 % 1.8 % 1.0 % — % 1.3 % Other 20.6 % 27.2 % 11.2 % 10.0 % 8.3 % 7.7 % 7.6 % 7.4 % — % — % The historical annual percentage payout pattern for health claims is excluded from the table above because health claims have short settlement periods, and including it would skew the results presented. |
