x
|
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Cayman Islands
|
N/A
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(State or Other Jurisdiction of
Incorporation or Organization)
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(I.R.S. Employer
Identification No.)
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Title of Class
|
Name of Exchange on Which Registered
|
Class A ordinary shares,
$0.10 par value per share
|
The Nasdaq Stock Market LLC
|
Class A Ordinary Shares, $0.10 par value
|
30,130,214
|
Class B Ordinary Shares, $0.10 par value
|
6,254,715
|
(Class)
|
Outstanding as of February 22, 2019
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Page
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ITEM 1.
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ITEM 1A.
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ITEM 1B.
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ITEM 2.
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ITEM 3.
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ITEM 4.
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ITEM 5.
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ITEM 6.
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ITEM 7.
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ITEM 7A.
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ITEM 8.
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ITEM 9.
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ITEM 9A.
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ITEM 9B.
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ITEM 10.
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ITEM 11.
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ITEM 12.
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ITEM 13.
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ITEM 14.
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ITEM 15.
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●
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Our results of operations will likely fluctuate from period to period and may not be indicative of our long-term prospects;
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●
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Rating agencies may downgrade or withdraw either of our ratings;
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●
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Under our investment management structure, we have limited control over Solasglas Investments, LP (“SILP”);
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●
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SILP may be concentrated in a few large positions, which could result in large losses;
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●
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Competitors with greater resources may make it difficult for us to effectively market our products or offer our products at a profit;
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●
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If our losses and loss adjustment expenses greatly exceed our loss reserves, our financial condition may be significantly and negatively affected;
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●
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We may face risks from future strategic transactions such as acquisitions, dispositions, mergers or joint ventures;
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●
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The effect of emerging claim and coverage issues on our business is uncertain;
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●
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The property and casualty reinsurance market may be affected by cyclical trends;
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●
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Loss of key executives could adversely impact our ability to implement our business strategy; and
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●
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Currency fluctuations could result in exchange rate losses and negatively impact our business.
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●
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where we have domain-specific expertise and a high level of market access, we may seek to act as the lead underwriter to achieve greater influence in negotiating pricing, terms and conditions;
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●
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where our expertise is sufficient to thoroughly evaluate the risk, we will generally seek to participate on syndicated placements that have been negotiated and priced by another party that we judge to have market-leading expertise in the class, or as a quota share retrocessionaire of a market-leading reinsurer.
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●
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the value we add to a partnership primarily comes from application of our risk expertise, not solely capital or reinsurance support;
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●
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the partnership adds expertise to our company, in specific risk areas, technology, product innovation, and/or other areas;
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●
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the partnership provides access to a pool of capital, to products and/or to distribution;
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●
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overall, the partnership creates a combined effort that generates durable strategic and/or competitive position in one or more markets, and increases our opportunity for revenue growth and margin expansion.
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●
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target markets and lines of business where we believe an appropriate risk/reward profile exists;
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●
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attract and retain clients with expertise in their respective lines of business;
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●
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employ strict underwriting discipline; and
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●
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select reinsurance opportunities with anticipated favorable returns on capital over the life of the contract.
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Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
$
|
10,487
|
|
|
1.8
|
%
|
|
$
|
12,256
|
|
|
1.8
|
%
|
|
$
|
9,419
|
|
|
1.8
|
%
|
Motor
|
|
76,425
|
|
|
13.5
|
|
|
71,188
|
|
|
10.2
|
|
|
38,428
|
|
|
7.2
|
|
|||
Personal
|
|
14,118
|
|
|
2.5
|
|
|
49,491
|
|
|
7.2
|
|
|
46,327
|
|
|
8.6
|
|
|||
Total Property
|
|
101,030
|
|
|
17.8
|
|
|
132,935
|
|
|
19.2
|
|
|
94,174
|
|
|
17.6
|
|
|||
Casualty
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
General Liability
|
|
1,429
|
|
|
0.3
|
|
|
4,753
|
|
|
0.7
|
|
|
11,746
|
|
|
2.2
|
|
|||
Motor Liability
|
|
291,690
|
|
|
51.4
|
|
|
281,551
|
|
|
40.6
|
|
|
223,620
|
|
|
41.7
|
|
|||
Professional Liability
|
|
3,068
|
|
|
0.5
|
|
|
8,703
|
|
|
1.3
|
|
|
11,036
|
|
|
2.1
|
|
|||
Workers' Compensation
|
|
24,101
|
|
|
4.3
|
|
|
24,803
|
|
|
3.6
|
|
|
8,743
|
|
|
1.6
|
|
|||
Multi-line *
|
|
57,497
|
|
|
10.1
|
|
|
123,340
|
|
|
17.8
|
|
|
95,055
|
|
|
17.7
|
|
|||
Total Casualty
|
|
377,785
|
|
|
66.6
|
|
|
443,150
|
|
|
64.0
|
|
|
350,200
|
|
|
65.3
|
|
|||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accident & Health
|
|
69,605
|
|
|
12.2
|
|
|
66,800
|
|
|
9.6
|
|
|
52,114
|
|
|
9.6
|
|
|||
Financial
|
|
16,611
|
|
|
2.9
|
|
|
48,380
|
|
|
7.0
|
|
|
34,034
|
|
|
6.4
|
|
|||
Marine
|
|
394
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|
0.3
|
|
|||
Other Specialty
|
|
2,106
|
|
|
0.4
|
|
|
1,386
|
|
|
0.2
|
|
|
4,054
|
|
|
0.8
|
|
|||
Total Other
|
|
88,716
|
|
|
15.6
|
|
|
116,566
|
|
|
16.8
|
|
|
91,698
|
|
|
17.1
|
|
|||
|
|
$
|
567,531
|
|
|
100.0
|
%
|
|
$
|
692,651
|
|
|
100.0
|
%
|
|
$
|
536,072
|
|
|
100.0
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
U.S. and Caribbean
|
|
$
|
507,705
|
|
|
89.5
|
%
|
|
$
|
606,510
|
|
|
87.6
|
%
|
|
$
|
432,144
|
|
|
80.6
|
%
|
Worldwide
(1)
|
|
59,366
|
|
|
10.5
|
|
|
86,714
|
|
|
12.5
|
|
|
97,810
|
|
|
18.2
|
|
|||
Europe
(2)
|
|
506
|
|
|
—
|
|
|
(612
|
)
|
|
(0.1
|
)
|
|
6,250
|
|
|
1.2
|
|
|||
Asia
(2)
|
|
(46
|
)
|
|
—
|
|
|
39
|
|
|
—
|
|
|
(132
|
)
|
|
—
|
|
|||
|
|
$
|
567,531
|
|
|
100.0
|
%
|
|
$
|
692,651
|
|
|
100.0
|
%
|
|
$
|
536,072
|
|
|
100.0
|
%
|
(1)
|
“Worldwide” is composed of contracts that reinsure risks in more than one geographic area and do not specifically exclude the U.S.
|
(2)
|
The negative balances represent the reversal of premiums due to premium adjustments, termination of contracts and/or premium returned upon novation or commutation of contracts.
|
|
●
|
customized solutions that address the specific business needs of our clients;
|
|
●
|
demonstrated expertise in the underlying reinsured exposures and in the operation of the contracts;
|
|
●
|
rapid response to risk submissions;
|
|
●
|
timely payment of claims;
|
|
●
|
financial security; and
|
|
●
|
clear indication of risks we will and will not underwrite.
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Guy Carpenter
|
|
$
|
376,696
|
|
|
66.4
|
%
|
|
$
|
366,390
|
|
|
52.9
|
%
|
|
$
|
274,816
|
|
|
51.3
|
%
|
Aon Benfield
|
|
70,554
|
|
|
12.4
|
|
|
125,320
|
|
|
18.1
|
|
|
104,684
|
|
|
19.5
|
|
|||
|
|
$
|
447,250
|
|
|
78.8
|
%
|
|
$
|
491,710
|
|
|
71.0
|
%
|
|
$
|
379,500
|
|
|
70.8
|
%
|
|
●
|
the client’s and industry’s historical loss data;
|
|
●
|
the expected duration for claims to fully develop;
|
|
●
|
the client’s pricing and underwriting strategies;
|
|
●
|
the geographic areas in which the client is doing business and its market share;
|
|
●
|
the reputation and financial strength of the client and its management and underwriting teams;
|
|
●
|
the reputation and expertise of the broker;
|
|
●
|
the likelihood of establishing a long-term relationship with the client and the broker; and
|
|
●
|
reports provided by independent industry specialists.
|
|
●
|
to maintain capital and a margin of solvency in accordance with the capital and solvency requirements prescribed by the Law;
|
|
●
|
to carry on its business in accordance with the terms of the license application submitted to CIMA and to seek the prior approval of CIMA for any proposed change thereto;
|
|
●
|
to maintain adequate arrangements for the management of risks and a system of governance as approved by CIMA;
|
|
●
|
to maintain a minimum of at least two directors and to seek the prior approval of CIMA in respect of the appointment of directors and officers and to provide CIMA with information in connection therewith and notification of any changes thereto;
|
|
●
|
to have a place of business in the Cayman Islands and to maintain such resources, including staff and facilities, books and records as CIMA considers appropriate having regard for the nature and scale of the business of Greenlight Re;
|
|
●
|
to submit to CIMA an annual return in the prescribed form together with:
|
|
|
- financial statements prepared in accordance with any internationally recognized accounting standards, audited by an independent auditor approved by CIMA;
|
|
|
- an actuarial valuation of Greenlight Re’s assets and liabilities, certified by an actuary approved by CIMA;
|
|
|
- certification of solvency prepared by a person approved by CIMA in accordance with the prescribed requirements;
|
|
|
- confirmation that the information contained in Greenlight Re’s license application, as modified by any subsequent changes, remains correct;
|
|
|
- such other information as may be prescribed by CIMA; and
|
|
●
|
to pay an annual license fee.
|
|
●
|
to maintain a general review of insurance practices in the Cayman Islands;
|
|
●
|
to examine the affairs or business of any licensee or other person carrying on, or who has carried on, insurance business in order to ensure that the Law has been complied with and that the licensee is in a sound financial position and is carrying on its business in a fit and proper manner;
|
|
●
|
to examine and report on the annual returns delivered to CIMA in terms of the Law; and
|
|
●
|
to examine and make recommendations with respect to, among other things, proposals for the revocation of licenses and cases of suspected insolvency of licensed entities.
|
|
●
|
Composition of Investments:
At least 80% of the assets in its Investment Portfolio (as defined in the Limited Partnership Agreement) will be held in debt or equity securities (including swaps) of publicly-traded companies (or their subsidiaries), governments of the Organization of Economic Co-operation and Development high income countries, cash, cash equivalents and gold. No more than 10% of the assets in its Investment Portfolio will be held in private equity securities.
|
|
●
|
Concentration of Investments:
Other than cash, cash equivalents, United States government obligations and gold, no single investment in its Investment Portfolio will constitute more than 20% of the Investment Portfolio.
|
|
●
|
Liquidity:
Assets will be invested in such fashion that Greenlight Re has a reasonable expectation that it can meet any of its liabilities as they become due. Greenlight Re will review with the Investment Advisor the liquidity of the portfolio on a periodic basis.
|
|
●
|
Monitoring:
Greenlight Re will require the Investment Advisor to re-evaluate each position in its Investment Portfolio and to monitor changes in intrinsic value and trading value and provide monthly reports on its Investment Portfolio to Greenlight Re as Greenlight Re may reasonably determine.
|
|
●
|
Leverage:
Greenlight Re’s Investment Portfolio may not employ greater than 15% indebtedness for borrowed money, including net margin balances, for extended time periods. The Investment Advisor may employ, in the normal course of business, up to 30% indebtedness for periods of less than 30 days.
|
|
Currency hedging activities are excluded from leverage calculations.
Where the Investment Advisor enters into a secondary investment with the primary purpose of reducing the risk of another existing investment then the investment advisor may exclude the secondary investment from the calculation of leverage provided that the Investment Advisor receives approval from Greenlight Re’s Chief Financial Officer. Such authority is limited such that no more than 10% of indebtedness may be excluded from leverage calculations for such secondary investments.
|
|
●
|
Concentration of Investments
:
Other than cash, cash equivalents and United States government obligations, (1) no single investment in its Investment Portfolio will constitute more than 10% of its Investment Portfolio, (2) the 10 largest investments shall not constitute greater than 50% of its total Investment Portfolio, and (3) its Investment Portfolio shall at all times be composed of a minimum of 50 debt or equity securities of publicly traded companies (or their subsidiaries).
|
|
●
|
Leverage:
GRIL’s Investment Portfolio may not employ greater than 5% indebtedness for borrowed money, including net margin balances, for extended time periods. The Investment Advisor may use, in the normal course of business, an aggregate of up to 20% net margin leverage for periods of less than 30 days.
|
|
|
December 31
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
($ in thousands)
|
||||||||||||
Investment in related party investment fund, at fair value
|
|
$
|
235,612
|
|
|
79.9
|
%
|
|
$
|
—
|
|
|
—
|
%
|
Debt instruments
|
|
—
|
|
|
—
|
|
|
7,180
|
|
|
0.5
|
|
||
Equities – listed
|
|
36,908
|
|
|
12.5
|
|
|
1,203,672
|
|
|
86.4
|
|
||
Commodities
|
|
—
|
|
|
—
|
|
|
121,502
|
|
|
8.7
|
|
||
Private investments and unlisted equity funds
|
|
6,405
|
|
|
2.2
|
|
|
30,630
|
|
|
2.2
|
|
||
Equity method investment
|
|
5,003
|
|
|
1.7
|
|
|
—
|
|
|
—
|
|
||
|
|
283,928
|
|
|
96.3
|
|
|
1,362,984
|
|
|
97.8
|
|
||
Funds and cash held with brokers and swap counterparties
|
|
10,920
|
|
|
3.7
|
|
|
39,383
|
|
|
2.8
|
|
||
Financial contracts, net
|
|
—
|
|
|
—
|
|
|
(9,329
|
)
|
|
(0.6
|
)
|
||
Total long investments
|
|
$
|
294,848
|
|
|
100.0
|
%
|
|
$
|
1,393,038
|
|
|
100.0
|
%
|
|
|
December 31
|
||||||||||||
|
|
2018
|
|
2017
|
||||||||||
|
|
($ in thousands)
|
||||||||||||
Equities – listed
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
812,652
|
|
|
89.0
|
%
|
Sovereign debt – Non U.S.
|
|
—
|
|
|
—
|
|
|
100,145
|
|
|
11.0
|
|
||
Total short investments
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
912,797
|
|
|
100.0
|
%
|
|
|
December 31
|
||||||||||
|
|
2018
|
|
2017
|
||||||||
|
|
Long %
|
|
Short %
|
|
Long %
|
|
Short %
|
||||
Debt instruments
|
|
0.4
|
%
|
|
(1.7
|
)%
|
|
0.1
|
%
|
|
—
|
%
|
Equities & related derivatives
|
|
78.0
|
|
|
(50.0
|
)
|
|
98.5
|
|
|
(67.2
|
)
|
Private and unlisted equity securities
|
|
5.3
|
|
|
—
|
|
|
2.1
|
|
|
—
|
|
Total
|
|
83.7
|
%
|
|
(51.7
|
)%
|
|
100.7
|
%
|
|
(67.2
|
)%
|
Sector
|
|
Long %
|
|
Short %
|
|
Net %
|
|||
Communication Services
|
|
6.3
|
%
|
|
(6.9
|
)%
|
|
(0.6
|
)%
|
Consumer Discretionary
|
|
28.7
|
|
|
(15.3
|
)
|
|
13.4
|
|
Consumer Staples
|
|
0.5
|
|
|
(0.5
|
)
|
|
—
|
|
Energy
|
|
10.9
|
|
|
(0.4
|
)
|
|
10.5
|
|
Financial
|
|
23.9
|
|
|
(4.2
|
)
|
|
19.7
|
|
Healthcare
|
|
1.7
|
|
|
(7.6
|
)
|
|
(5.9
|
)
|
Industrials
|
|
6.1
|
|
|
(12.0
|
)
|
|
(5.9
|
)
|
Materials
|
|
1.5
|
|
|
—
|
|
|
1.5
|
|
Technology
|
|
4.0
|
|
|
(4.8
|
)
|
|
(0.8
|
)
|
Utilities
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
Total
|
|
83.7
|
%
|
|
(51.7
|
)%
|
|
32.0
|
%
|
Capitalization
|
|
Long %
|
|
Short %
|
|
Net %
|
|||
Mega Cap Equity (≥$25 billion)
|
|
22.4
|
%
|
|
(27.9
|
)%
|
|
(5.5
|
)%
|
Large Cap Equity (≥$5 billion and <$25 billion)
|
|
12.7
|
|
|
(15.4
|
)
|
|
(2.7
|
)
|
Mid Cap Equity (≥$1 billion and <$5 billion)
|
|
33.7
|
|
|
(6.1
|
)
|
|
27.6
|
|
Small Cap Equity (<$1 billion)
|
|
9.2
|
|
|
(0.6
|
)
|
|
8.6
|
|
Debt Instruments
|
|
0.4
|
|
|
(1.7
|
)
|
|
(1.3
|
)
|
Other Investments
|
|
5.3
|
|
|
—
|
|
|
5.3
|
|
Total
|
|
83.7
|
%
|
|
(51.7
|
)%
|
|
32.0
|
%
|
Quarter
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
|||||
1st
|
|
(11.8
|
)%
|
|
0.9
|
%
|
|
2.5
|
%
|
|
(1.8
|
)%
|
|
(0.7
|
)%
|
2nd
|
|
(3.8
|
)
|
|
(3.4
|
)
|
|
(3.4
|
)
|
|
(1.5
|
)
|
|
8.1
|
|
3rd
|
|
(8.4
|
)
|
|
5.5
|
|
|
3.1
|
|
|
(14.2
|
)
|
|
(3.7
|
)
|
4th
|
|
(10.2
|
)
|
|
(1.3
|
)
|
|
5.0
|
|
|
(4.0
|
)
|
|
5.3
|
|
Full Year
|
|
(30.3
|
)%
|
|
1.5
|
%
|
|
7.2
|
%
|
|
(20.2
|
)%
|
|
8.7
|
%
|
Acquisition costs
|
|
Ceding commission, profit commissions, brokerage fees, premium taxes and other direct expenses relating directly to the production of premiums.
|
Acquisition cost ratio
|
|
The acquisition cost ratio is calculated by dividing net acquisition costs by net premiums earned.
|
Actuary
|
|
A person professionally trained in the mathematical and technical aspects of insurance and related fields particularly in the calculation of premiums, loss reserves and other values.
|
Broker
|
|
An intermediary who negotiates contracts of insurance or reinsurance, receiving a commission for placement and other services rendered, between (1) a policyholder and a primary insurer, on behalf of the policyholder, (2) a primary insurer and a reinsurer, on behalf of the primary insurer, or (3) a reinsurer and a retrocessionaire, on behalf of the reinsurer.
|
Capacity
|
|
Capacity is the percentage of surplus, that an insurer or reinsurer is willing or able to place at risk or the dollar amount of exposure it is willing to assume. Capacity may apply to a single risk, a program, a line of business or an entire book of business. Capacity may be constrained by legal restrictions, corporate restrictions, or indirect financial restrictions such as capital adequacy requirements.
|
Casualty clash
|
|
Casualty clash primarily covers a single third party event that can affect multiple casualty policies. For example, a collapse of a building could give rise to a multiple claims under Engineering Errors and Omissions, Architect’s Errors and Omissions, and General Liability policies. The combined losses for all affected policies could give rise to a casualty clash loss.
|
Casualty reinsurance
|
|
Casualty reinsurance is primarily concerned with the losses caused by injuries to third persons (persons other than the policyholder) and the legal liability imposed on the policyholder resulting therefrom. This includes, but is not limited to workers’ compensation, automobile liability, and general liability. A greater degree of unpredictability is generally associated with casualty risks known as ‘‘long-tail risks,’’ where losses take time to become known and a claim may be separated from the circumstances that caused it by several years. An example of a long-tail casualty risk includes the use of certain drugs that may cause cancer or birth defects. There tends to be greater delay in the reporting and settlement of casualty reinsurance claims due to the long-tail nature of the underlying casualty risks and their greater potential for litigation.
|
Catastrophe
|
|
A severe loss, typically involving multiple claimants. Common perils include earthquakes, hurricanes, tsunamis, hailstorms, tornados, severe winter weather, floods, fires, explosions, volcanic eruptions and other natural or man-made disasters. Catastrophe losses may also arise from acts of war, acts of terrorism and political instability.
|
Cede; cedent
|
|
When a party reinsures its liability to another party, it ‘‘cedes’’ business to the reinsurer and is referred to as the ‘‘client.’’
|
Claim
|
|
Request by an insured or reinsured for indemnification by an insurance or reinsurance company for loss incurred from an insured peril or event.
|
Client
|
|
A party whose liability is reinsured by a reinsurer. Also known as a cedent.
|
Combined ratio
|
|
The combined ratio is the sum of the loss ratio, acquisition cost ratio and underwriting expense ratio.
|
Composite ratio
|
|
The composite ratio is the ratio of underwriting losses incurred, loss adjustment expenses and acquisition costs, excluding underwriting related general and administrative expenses, to net premiums earned, or equivalently, the sum of the loss ratio and acquisition cost ratio.
|
Co-participation
|
|
The payment by the insured of a predetermined proportion of all losses above the predetermined amount.
|
Corporate expenses
|
|
Corporate expenses include those costs associated with operating as a publicly listed entity as well as an allocation of other general and administrative expenses.
|
Development
|
|
The difference between the amount of reserves for losses and loss adjustment expenses initially estimated by an insurer or reinsurer and the amount re-estimated in an evaluation at a later date.
|
Excess of loss reinsurance
|
|
Reinsurance that indemnifies the reinsured against all or a specified portion of losses in excess of a specified dollar or percentage loss ratio amount.
|
Financial strength rating
|
|
The opinion of rating agencies regarding the financial ability of an insurance or reinsurance company to meet its financial obligations under its policies.
|
Frequency business
|
|
Insurance/reinsurance that is characterized by contracts containing a potential large number of smaller losses emanating from multiple events.
|
Gross premiums written
|
|
Total premiums for assumed reinsurance during a given period.
|
Health insurance
|
|
Insurance against loss by illness or bodily injury. Health insurance provides coverage for medicine, visits to the doctor or emergency room, hospital stays and other medical expenses.
|
Incurred but not reported (IBNR)
|
|
Reserves for estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer, including unknown future developments on loss and loss adjustment expenses which are known to the insurer or reinsurer.
|
Internal expense ratio
|
|
A ratio calculated by dividing general and administrative expenses by premiums earned.
|
Loss adjustment expenses (LAE)
|
|
The expenses of settling claims, including legal and other fees and the portion of general expenses allocated to claim settlement costs. Also known as claim adjustment expenses.
|
Loss ratio
|
|
The loss ratio is calculated by dividing net loss and loss adjustment expenses incurred by net premiums earned.
|
Loss reserves and loss adjustment expense reserves
|
|
Liabilities established by insurers and reinsurers to reflect the estimated cost of claims payments and the related expenses that the insurer or reinsurer will ultimately be required to pay in respect of insurance or reinsurance contracts it has written. Reserves are established for losses and for loss adjustment expenses, and consist of reserves established with respect to individual reported claims and incurred but not reported losses.
|
Medical malpractice insurance
|
|
Medical malpractice insurance provides an indemnity to physicians and their employees for losses related to patient injuries arising from medical advice rendered or procedures performed.
|
Multi-line
|
|
Contracts that cover more than one line of business.
|
Net financial impact
|
|
The net impact of prior period loss development after taking into account net losses and loss expenses incurred, earned reinstatement premiums assumed and ceded, and adjustments to assumed and ceded acquisition costs and profit commissions.
|
Net premiums written
|
|
An insurer’s gross premiums written less premiums ceded to reinsurers.
|
Non-admitted insurers
|
|
An insurer not licensed to do business in the jurisdiction in question. Also known as an unauthorized insurer and unlicensed insurer.
|
Premiums; written, earned and unearned
|
|
Premiums represent the cost of insurance that is paid by the cedent or insured to the insurer or reinsurer. Written represents the complete amount of premiums received, and earned represents the amount recognized as income over a period of time. Unearned is the difference between written and earned premiums.
|
Probable maximum loss (PML)
|
|
PML is the anticipated loss, taking into account contract terms and limits, caused by a natural catastrophe affecting a broad geographic area, such as that caused by an earthquake or hurricane.
|
Professional liability insurance
|
|
Professional liability insurance protects a company and its representatives against legal claims arising from error or misconduct in providing or failing to provide professional services. This type of coverage includes errors and/or omissions policies, directors and officers coverage and specialty coverage like employment practices liability insurance.
|
Profit commission
|
|
A commission paid by a reinsurer to a ceding insurer based on a predetermined percentage of the profit realized by the reinsurer on the ceded business.
|
Property insurance
|
|
Property insurance covers a business’s building and its contents—money and securities, records, inventory, furniture, machinery, supplies and even intangible assets such as trademarks—when damage, theft or loss occurs.
|
Property catastrophe reinsurance
|
|
Property catastrophe reinsurance contracts are typically ‘‘all risk’’ in nature, meaning that they protect against losses from natural and/or man-made catastrophes. Losses on these contracts typically stem from direct property damage and business interruption.
|
Proportional reinsurance
|
|
All forms of reinsurance in which the reinsurer shares a proportional part of the original premiums and losses of the reinsured. In proportional reinsurance, the reinsurer generally pays the client a ceding commission. The ceding commission generally is based on the client’s cost of acquiring the business being reinsured (including commissions, premium taxes, assessments and miscellaneous administrative expenses) and also may include a profit component. Frequently referred to as quota-share reinsurance.
|
Quota-share reinsurance
|
|
A form of proportional reinsurance in which the reinsurer assumes an agreed percentage of each underlying insurance contract being reinsured.
|
Regulation 114 trusts
|
|
A three way investment trust agreement involving a cedent or client, a financial institution and a non-admitted reinsurer governed by Regulation 114 of the Official Compilation of Codes, Rules and Regulations (11 NYCRR4) of the New York State Insurance Department. Regulation 114 Trusts, also known as Reg 114 Trusts, must be maintained in the United States in an approved financial institution. Securities used to collateralize the trust are limited to cash and cash equivalents, U.S. Treasury securities, and fixed income securities rated ‘‘A’’ or higher.
|
Reinstatement premium
|
|
A Premium charged for the reinstatement of the amount of reinsurance coverage to its full amount reduced as a result of a reinsurance loss payment.
|
Reinsurance
|
|
An arrangement in which a reinsurer agrees to indemnify an insurance company, the client, against all or a portion of the insurance risks underwritten by the client under one or more policies. Reinsurance can provide a client with several benefits, including a reduction in net liability on individual risks and catastrophe protection from large or multiple losses. Reinsurance also provides a client with additional underwriting capacity by permitting it to accept larger risks and write more business than would be possible without a related increase in capital and surplus, and facilitates the maintenance of acceptable financial ratios by the client. Reinsurance does not legally discharge the client from its liability with respect to its obligations to the insured.
|
Reinsurer
|
|
An insurance company that assumes part of the risk in exchange for part of the premium to a primary insurer.
|
Retrocession; retrocessional coverage
|
|
A transaction whereby a reinsurer cedes to another reinsurer, commonly referred to as the retrocessionaire, all or part of the reinsurance that the first reinsurer has assumed. Retrocessional reinsurance does not legally discharge the ceding reinsurer from its liability with respect to its obligations to the reinsured.
|
Risk-free rate
|
|
The interest rate on a riskless, or safe, asset, usually taken to be a short-term U.S. government security.
|
Risk transfer
|
|
The shifting of all or a part of a risk to another party.
|
Self-insured retention (SIR)
|
|
A potential loss retained by an organization, i.e. not insured. The self-insured retention differs from a deductible because the insured performs all the functions normally undertaken by an insurance company for losses within the SIR, including claims adjusting and audits, funding and paying claims, and complying with applicable state and federal laws and regulations.
|
Severity business
|
|
Insurance/reinsurance that is characterized by contracts containing the potential for significant losses emanating from one event.
|
Surety and fidelity insurance
|
|
Surety and fidelity includes (1) insurance guaranteeing the fidelity of persons holding positions of public or private trust; (2) insurance guaranteeing the performance of contracts, other than insurance policies, and guaranteeing and executing bonds, undertakings and contracts of suretyship; and (3) insurance indemnifying banks, bankers, brokers, financial or moneyed corporations or associations against loss.
|
Underwriter
|
|
An employee of an insurance or reinsurance company who examines, accepts or rejects risks and classifies risks in order to charge an appropriate premium for each accepted risk.
|
Underwriting
|
|
The process of evaluating, defining, and pricing reinsurance risks including, where appropriate, the rejection of such risks, and the acceptance of the obligation to pay the reinsured under the terms of the contract.
|
Underwriting expense
|
|
Underwriting expenses include those expenses directly related to underwriting activities which are not eligible to be capitalized, as well as an allocation of other general and administrative expenses.
|
Underwriting expense ratio
|
|
The underwriting expense ratio includes those expenses directly related to underwriting activities as well as an allocation of other general and administrative expenses. Therefore, the underwriting expense ratio is the ratio of underwriting expenses to net premiums earned. In addition, the underwriting expense ratio includes any gain or loss resulting from deposit accounted contracts as well as any amortized cost of weather derivative swaps entered into as part of our underwriting activities
|
Workers’ compensation insurance
|
|
Workers’ compensation insurance provides medical, disability and lost-wage benefits to employees for injuries and illness sustained in the course of their employment.
|
|
|
|
|
●
|
our assessment of the quality of available reinsurance opportunities;
|
|
●
|
loss experience on our reinsurance liabilities;
|
|
●
|
reinsurance contract pricing;
|
|
●
|
the volume and mix of reinsurance products we underwrite;
|
|
●
|
the performance of our investment portfolio; and
|
|
●
|
our ability to assess and integrate our risk management strategy properly.
|
|
●
|
if A.M. Best alters its capital adequacy assessment methodology in a manner that would adversely affect the rating of our reinsurance entities;
|
|
●
|
if our actual losses significantly exceed our loss reserves;
|
|
●
|
if unfavorable financial or market trends impact us;
|
|
●
|
if we change our business practices from our organizational business plan in a manner that no longer supports our A.M. Best ratings;
|
|
●
|
if we are unable to retain our senior management and other key personnel; or
|
|
●
|
if our investments incur significant losses.
|
|
●
|
the general reputation and perceived financial strength of the reinsurer;
|
|
●
|
ratings assigned by independent rating agencies;
|
|
●
|
relationships with reinsurance brokers;
|
|
●
|
pricing;
|
|
●
|
ability to obtain terms and conditions appropriate with the risk being assumed and in accordance with our underwriting guidelines;
|
|
●
|
actual and perceived speed with which we pay claims; and
|
|
●
|
the experience and reputation of the members of our underwriting team in the particular lines of reinsurance we seek to underwrite.
|
|
●
|
the reporting delays that occur between the occurrence of an event or claim, its reporting to the primary insurance company and subsequent reporting to the reinsurance company by the primary insurance company;
|
|
●
|
the settlement delays associated with the reporting delays;
|
|
●
|
the diversity of development patterns among different types of reinsurance treaties; and
|
|
●
|
the necessary reliance on the client for information regarding claims.
|
|
●
|
fund liquidity needs caused by underwriting or investment losses;
|
|
●
|
meet rating agency capital requirements;
|
|
●
|
replace capital lost in the event of significant reinsurance losses or adverse reserve developments or significant investment losses;
|
|
●
|
satisfy collateral requirements that may be imposed by our clients or by regulators;
|
|
●
|
meet applicable statutory jurisdiction requirements; or
|
|
●
|
respond to competitive pressures.
|
|
●
|
we cease to carry on reinsurance business;
|
|
●
|
the direction and management of our reinsurance business has not been conducted in a fit and proper manner;
|
|
●
|
a person holding a position as a director, manager or officer is not a fit and proper person to hold the respective position; or
|
|
●
|
we become bankrupt or go into liquidation or we are wound up or otherwise dissolved.
|
|
●
|
a material violation of applicable law relating to DME II’s or DME Advisors’ advisory business;
|
|
●
|
DME II’s or DME Advisors’ gross negligence, willful misconduct or reckless disregard of DME II’s obligations under the SILP LPA or DME Advisors’ obligations under the IAA;
|
|
●
|
a material breach by DME II or DME Advisors of Greenlight Re’s or GRIL’s investment guidelines that is not cured within a 15-day period; or
|
|
●
|
a material breach by DME II or DME Advisors of its obligations under 5.2 of the SILP LPA, which relate to timely redemption of partnership interests.
|
•
|
limit our ability to obtain additional financing in the future for working capital, capital expenditures, acquisitions or other general corporate purposes;
|
•
|
require a substantial portion of our cash flows to be dedicated to debt service payments instead of other purposes, thereby reducing the amount of cash flows available for working capital, capital expenditures, acquisitions and other general corporate purposes;
|
•
|
discourage an acquisition of us by a third party;
|
•
|
place us at a competitive disadvantage to competitors carrying less debt; and
|
•
|
make us more vulnerable to economic downturns and limiting our ability to withstand competitive pressures or take advantage of new opportunities to grow our business.
|
|
●
|
the statutory provisions as to majority vote have been complied with;
|
|
|
|
|
●
|
the shareholders have been fairly represented at the meeting in question;
|
|
|
|
|
●
|
the scheme of arrangement is such as a businessperson would reasonably approve; and
|
|
|
|
|
●
|
the scheme of arrangement is not one that would more properly be sanctioned under some other provision of the Companies Law.
|
|
●
|
our gross income attributable to insurance or reinsurance policies where the direct or indirect insureds are our direct or indirect United States shareholders or persons related to such United States shareholders equals or exceeds 20% of our gross insurance income in any taxable year; and
|
|
●
|
direct or indirect insureds and persons related to such insureds owned directly or indirectly 20% or more of the voting power or value of our stock,
|
|
|
Year ended December 31
|
||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
($ in thousands, except per share and share amounts)
|
||||||||||||||||||
Selected Consolidated Statement of Operations Data
|
|
|
||||||||||||||||||
Gross premiums written
|
|
$
|
567,531
|
|
|
$
|
692,651
|
|
|
$
|
536,072
|
|
|
$
|
502,124
|
|
|
$
|
324,023
|
|
Net premiums earned
|
|
508,363
|
|
|
626,004
|
|
|
513,118
|
|
|
408,387
|
|
|
354,240
|
|
|||||
Net investment income (loss)
|
|
(323,106
|
)
|
|
20,231
|
|
|
76,183
|
|
|
(281,924
|
)
|
|
122,575
|
|
|||||
Loss and loss adjustment expenses incurred, net
|
|
363,873
|
|
|
502,404
|
|
|
380,815
|
|
|
317,097
|
|
|
234,986
|
|
|||||
Acquisition costs, net
|
|
145,475
|
|
|
161,740
|
|
|
134,534
|
|
|
116,207
|
|
|
107,665
|
|
|||||
General and administrative expenses
|
|
25,173
|
|
|
26,356
|
|
|
25,808
|
|
|
23,434
|
|
|
24,500
|
|
|||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
|
$
|
(350,054
|
)
|
|
$
|
(44,952
|
)
|
|
$
|
44,881
|
|
|
$
|
(326,425
|
)
|
|
$
|
109,592
|
|
Earnings (Loss) Per Share Data
(1)
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
$
|
(9.74
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
1.20
|
|
|
$
|
(8.90
|
)
|
|
$
|
2.94
|
|
Diluted
|
|
(9.74
|
)
|
|
(1.21
|
)
|
|
1.20
|
|
|
(8.90
|
)
|
|
2.89
|
|
|||||
Weighted average number of ordinary shares used in the determination of earnings and loss per share
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
35,951,659
|
|
|
37,002,260
|
|
|
37,267,145
|
|
|
36,670,466
|
|
|
37,242,687
|
|
|||||
Diluted
|
|
35,951,659
|
|
|
37,002,260
|
|
|
37,340,018
|
|
|
36,670,466
|
|
|
37,874,387
|
|
|||||
Underwriting Income (Loss) and Selected Ratios
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Underwriting income (loss) *
|
|
$
|
(14,384
|
)
|
|
$
|
(53,628
|
)
|
|
$
|
(18,814
|
)
|
|
$
|
(41,909
|
)
|
|
$
|
(4,908
|
)
|
Loss ratio
|
|
71.6
|
%
|
|
80.3
|
%
|
|
74.2
|
%
|
|
77.6
|
%
|
|
66.3
|
%
|
|||||
Acquisition cost ratio
|
|
28.6
|
%
|
|
25.8
|
%
|
|
26.2
|
%
|
|
28.5
|
%
|
|
30.4
|
%
|
|||||
Underwriting expense ratio
|
|
2.6
|
%
|
|
2.5
|
%
|
|
3.2
|
%
|
|
4.2
|
%
|
|
4.7
|
%
|
|||||
Combined ratio
|
|
102.8
|
%
|
|
108.6
|
%
|
|
103.6
|
%
|
|
110.3
|
%
|
|
101.4
|
%
|
|
|
December 31
|
||||||||||||||||||
|
|
2018
#
|
|
2017
|
|
2016
|
|
2015
|
|
2014
|
||||||||||
|
|
($ in thousands, except per share and share amounts)
|
||||||||||||||||||
Selected Consolidated Balance Sheet Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Total investments
|
|
$
|
283,928
|
|
|
$
|
1,362,984
|
|
|
$
|
1,022,537
|
|
|
$
|
1,064,164
|
|
|
$
|
1,430,978
|
|
Cash and cash equivalents
|
|
18,215
|
|
|
27,285
|
|
|
39,858
|
|
|
112,162
|
|
|
12,030
|
|
|||||
Restricted cash and cash equivalents
|
|
685,016
|
|
|
1,503,813
|
|
|
1,202,651
|
|
|
1,236,589
|
|
|
1,296,914
|
|
|||||
Total assets
|
|
1,435,445
|
|
|
3,357,393
|
|
|
2,664,693
|
|
|
2,712,522
|
|
|
2,995,292
|
|
|||||
Securities sold, not yet purchased, at fair value
|
|
—
|
|
|
912,797
|
|
|
859,902
|
|
|
882,906
|
|
|
1,090,731
|
|
|||||
Due to prime brokers and other financial institutions
|
|
—
|
|
|
672,700
|
|
|
319,830
|
|
|
396,453
|
|
|
211,070
|
|
|||||
Loss and loss adjustment expense reserves ^
|
|
482,662
|
|
|
464,380
|
|
|
306,641
|
|
|
305,997
|
|
|
264,243
|
|
|||||
Unearned premium reserves
|
|
211,789
|
|
|
255,818
|
|
|
222,527
|
|
|
211,954
|
|
|
128,736
|
|
|||||
Total liabilities
|
|
955,981
|
|
|
2,505,967
|
|
|
1,773,006
|
|
|
1,863,749
|
|
|
1,801,251
|
|
|||||
Total equity
|
|
477,772
|
|
|
844,257
|
|
|
885,803
|
|
|
836,509
|
|
|
1,179,384
|
|
|||||
Adjusted book value*
(2)
|
|
477,287
|
|
|
831,324
|
|
|
874,242
|
|
|
825,391
|
|
|
1,165,151
|
|
|||||
Diluted adjusted book value*
(3)
|
|
$
|
477,287
|
|
|
$
|
845,183
|
|
|
$
|
876,362
|
|
|
$
|
836,944
|
|
|
$
|
1,184,779
|
|
Ordinary shares outstanding
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic
|
|
36,384,929
|
|
|
37,359,545
|
|
|
37,366,327
|
|
|
37,027,467
|
|
|
37,384,543
|
|
|||||
Diluted
(4)
|
|
36,431,327
|
|
|
38,039,229
|
|
|
37,489,647
|
|
|
37,744,807
|
|
|
38,516,460
|
|
|||||
Per Share Data
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic adjusted book value per share*
(5)
|
|
$
|
13.12
|
|
|
$
|
22.25
|
|
|
$
|
23.40
|
|
|
$
|
22.29
|
|
|
$
|
31.17
|
|
Fully diluted adjusted book value per share*
(6)
|
|
13.10
|
|
|
22.22
|
|
|
23.38
|
|
|
22.17
|
|
|
30.76
|
|
(1)
|
The Company treats its unvested restricted stock awards, which contain non-forfeitable rights to dividends or dividend equivalents, whether paid or unpaid as “participating securities.” Basic earnings (loss) per share is calculated on the basis of the weighted average number of common shares and participating securities outstanding during the period. Diluted earnings (or loss) per share includes the dilutive effect of the following: (i) RSUs issued that would convert to common shares upon vesting, (ii) additional potential common shares issuable when stock options are exercised, determined using the treasury stock method, and (iii) those common shares with the potential to be issued by virtue of convertible debt and other such convertible instruments, determined using the treasury stock method. Diluted earnings (or loss) per share contemplates a conversion to common shares of all convertible instruments only if they are dilutive in nature with regards to earnings per share. In the event of a net loss, all RSUs, stock options outstanding, convertible debt and participating securities are excluded from the calculation of both basic and diluted loss per share since their inclusion would be anti-dilutive.
|
(2)
|
Adjusted book value equals total shareholders’ equity minus non-controlling interest in Joint Venture.
|
(3)
|
Diluted adjusted book value is the adjusted book value plus the proceeds from the exercise of in-the-money options issued and outstanding at year end.
|
(4)
|
Diluted number of shares outstanding is the sum of basic shares outstanding and the in-the-money options and restricted stock units issued and outstanding at year end.
|
(5)
|
Basic adjusted book value per share is calculated by dividing adjusted book value by the number of shares and share equivalents issued and outstanding at year end.
|
(6)
|
Fully diluted adjusted book value per share is calculated by dividing the diluted adjusted book value by the diluted number of shares outstanding at year end.
|
#
|
The movements from 2017 to 2018 in “Total investments”, “Restricted cash and cash equivalents”, “Securities sold, not yet purchased”, and “Due to prime brokers and other financial institutions”, related primarily to the change in our investment structure during the year ended December 31, 2018.
|
*
|
Adjusted book value, diluted adjusted book value, basic adjusted book value per share, fully diluted adjusted book value per share and underwriting income (loss) are non-GAAP measures. For a reconciliation of the non-GAAP measures to the most comparable GAAP measures, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Results of Operations”.
|
^
|
For detailed discussion of change in loss and loss adjustment expenses, refer to “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Condition” and Note 8 to the consolidated financial statements.
|
|
●
|
Property
|
|
●
|
Casualty
|
|
●
|
Other
|
|
●
|
premiums from reinsurance on property and casualty business assumed; and
|
|
●
|
income from investments.
|
|
●
|
underwriting losses and loss adjustment expenses;
|
|
●
|
acquisition costs;
|
|
●
|
general and administrative expenses;
|
|
●
|
interest expense; and
|
|
●
|
investment-related expenses.
|
•
|
Basic adjusted book value per share;
|
•
|
Fully diluted adjusted book value per share;
|
•
|
Net underwriting income (loss).
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
|
($ in thousands, except per share and share amounts)
|
||||||||||
Numerator for basic adjusted and fully diluted adjusted book value per share:
|
|
|
|
|
|
||||||
Total equity (U.S. GAAP)
|
$
|
477,772
|
|
|
$
|
844,257
|
|
|
$
|
885,803
|
|
Less: Non-controlling interest in joint venture
|
(485
|
)
|
|
(12,933
|
)
|
|
(11,561
|
)
|
|||
Numerator for basic adjusted book value per share
|
477,287
|
|
|
831,324
|
|
|
874,242
|
|
|||
Add: Proceeds from in-the-money stock options issued and outstanding
|
—
|
|
|
13,859
|
|
|
2,120
|
|
|||
Numerator for fully diluted adjusted book value per share
|
$
|
477,287
|
|
|
$
|
845,183
|
|
|
$
|
876,362
|
|
Denominator for basic adjusted and fully diluted adjusted book value per share:
|
|
|
|
|
|
||||||
Ordinary shares issued and outstanding (denominator for basic adjusted book value per share)
|
36,384,929
|
|
|
37,359,545
|
|
|
37,366,327
|
|
|||
Add: In-the-money stock options and RSUs issued and outstanding
|
46,398
|
|
|
679,684
|
|
|
123,320
|
|
|||
Denominator for fully diluted adjusted book value per share
|
36,431,327
|
|
|
38,039,229
|
|
|
37,489,647
|
|
|||
Basic adjusted book value per share
|
$
|
13.12
|
|
|
$
|
22.25
|
|
|
$
|
23.40
|
|
Increase (decrease) in basic adjusted book value per share ($)
|
(9.13
|
)
|
|
(1.15
|
)
|
|
1.11
|
|
|||
Increase (decrease) in basic adjusted book value per share (%)
|
(41.0
|
)
|
|
(4.9
|
)
|
|
5.0
|
|
|||
|
|
|
|
|
|
||||||
Fully diluted adjusted book value per share
|
$
|
13.10
|
|
|
$
|
22.22
|
|
|
$
|
23.38
|
|
Change in fully diluted adjusted book value per share ($)
|
(9.12
|
)
|
|
(1.16
|
)
|
|
1.21
|
|
|||
Change in fully diluted adjusted book value per share (%)
|
(41.0
|
)
|
|
(5.0
|
)
|
|
5.5
|
|
|
Year ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
($ in thousands)
|
||||||||||
Income (loss) before income tax
|
$
|
(353,997
|
)
|
|
$
|
(44,825
|
)
|
|
$
|
47,209
|
|
Add (subtract):
|
|
|
|
|
|
||||||
Investment related (income) loss
|
323,106
|
|
|
(20,231
|
)
|
|
(76,183
|
)
|
|||
Other (income) expense
|
1,943
|
|
|
210
|
|
|
935
|
|
|||
Corporate expenses
|
12,059
|
|
|
11,218
|
|
|
9,225
|
|
|||
Interest expense
|
2,505
|
|
|
—
|
|
|
—
|
|
|||
Net underwriting income (loss)
|
$
|
(14,384
|
)
|
|
$
|
(53,628
|
)
|
|
$
|
(18,814
|
)
|
|
|
Year ended December 31,
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
(in thousands, except percentages)
|
||||||||||
Underwriting revenue
|
|
|
|
|
|
|
||||||
Gross premiums written
|
|
$
|
567,531
|
|
|
$
|
692,651
|
|
|
$
|
536,072
|
|
Gross premiums ceded
|
|
(102,788
|
)
|
|
(56,587
|
)
|
|
(10,015
|
)
|
|||
Net premiums written
|
|
464,743
|
|
|
636,064
|
|
|
526,057
|
|
|||
Change in net unearned premium reserves
|
|
43,620
|
|
|
(10,060
|
)
|
|
(12,939
|
)
|
|||
Net premiums earned
|
|
508,363
|
|
|
626,004
|
|
|
513,118
|
|
|||
Underwriting expenses
|
|
|
|
|
|
|
||||||
Loss and LAE incurred, net
|
|
|
|
|
|
|
||||||
Current year
|
|
363,871
|
|
|
466,247
|
|
|
345,303
|
|
|||
Prior year *
|
|
2
|
|
|
36,157
|
|
|
35,512
|
|
|||
Loss and LAE incurred, net
|
|
363,873
|
|
|
502,404
|
|
|
380,815
|
|
|||
Acquisition costs, net
|
|
145,475
|
|
|
161,740
|
|
|
134,534
|
|
|||
Underwriting expenses
|
|
13,114
|
|
|
15,138
|
|
|
16,583
|
|
|||
Deposit accounting expense (income)
|
|
285
|
|
|
350
|
|
|
—
|
|
|||
Underwriting income (loss)
|
|
(14,384
|
)
|
|
(53,628
|
)
|
|
(18,814
|
)
|
|||
|
|
|
|
|
|
|
||||||
Income (loss) from investment in related party investment fund
|
|
(60,573
|
)
|
|
—
|
|
|
—
|
|
|||
Net investment income (loss)
|
|
(262,533
|
)
|
|
20,231
|
|
|
76,183
|
|
|||
Net investment result
|
|
$
|
(323,106
|
)
|
|
$
|
20,231
|
|
|
$
|
76,183
|
|
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
(354,329
|
)
|
|
$
|
(44,374
|
)
|
|
$
|
46,700
|
|
|
|
|
|
|
|
|
||||||
Net income (loss) attributable to the Company
|
|
$
|
(350,054
|
)
|
|
$
|
(44,952
|
)
|
|
$
|
44,881
|
|
|
|
|
|
|
|
|
||||||
Loss ratio - current year
|
|
71.6
|
%
|
|
74.5
|
%
|
|
67.3
|
%
|
|||
Loss ratio - prior year
|
|
—
|
%
|
|
5.8
|
%
|
|
6.9
|
%
|
|||
Loss ratio
|
|
71.6
|
%
|
|
80.3
|
%
|
|
74.2
|
%
|
|||
Acquisition cost ratio
|
|
28.6
|
%
|
|
25.8
|
%
|
|
26.2
|
%
|
|||
Composite ratio
|
|
100.2
|
%
|
|
106.1
|
%
|
|
100.4
|
%
|
|||
Underwriting expense ratio
|
|
2.6
|
%
|
|
2.5
|
%
|
|
3.2
|
%
|
|||
Combined ratio
|
|
102.8
|
%
|
|
108.6
|
%
|
|
103.6
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
$
|
101,030
|
|
|
17.8
|
%
|
|
$
|
132,935
|
|
|
19.2
|
%
|
|
$
|
94,174
|
|
|
17.6
|
%
|
Casualty
|
|
377,785
|
|
|
66.6
|
|
|
443,150
|
|
|
64.0
|
|
|
350,200
|
|
|
65.3
|
|
|||
Other
|
|
88,716
|
|
|
15.6
|
|
|
116,566
|
|
|
16.8
|
|
|
91,698
|
|
|
17.1
|
|
|||
Total
|
|
$
|
567,531
|
|
|
100.0
|
%
|
|
$
|
692,651
|
|
|
100.0
|
%
|
|
$
|
536,072
|
|
|
100.0
|
%
|
Gross Premiums Written
|
||||||
Year ended December 31, 2018
|
||||||
|
|
Increase (decrease)
($ in millions) |
|
% change
|
|
Explanation
|
Property
|
|
$(31.9)
|
|
(24.0)%
|
|
The decrease was primarily due to homeowners’ insurance contracts that were not renewed, partially offset by an increase in gross premiums written relating to private passenger automobile contracts.
|
Casualty
|
|
$(65.4)
|
|
(14.8)%
|
|
The decrease was primarily due to a multi-line casualty contract renewed in 2018 at a lower share. To a lesser extent the decrease was due to change in premium estimates on another multi-line contract.
|
Other
|
|
$(27.8)
|
|
(23.9)%
|
|
The decrease was primarily due to commutation of a mortgage reinsurance contract during third quarter of 2018, and certain other mortgage insurance contracts renewed at a lower share compared to the expiring contracts. The decrease was partially offset by an increase relating to medical stop-loss business including some contracts where the underlying volume increased compared to the same period in 2017.
|
Gross Premiums Written
|
||||||
Year ended December 31, 2017
|
||||||
|
|
Increase (decrease)
($ in millions) |
|
% change
|
|
Explanation
|
Property
|
|
$38.8
|
|
41.2%
|
|
The increase was primarily due to growth in the volume of underlying policies on existing private passenger automobile contracts and new private passenger automobile contracts entered into during 2017 and late 2016. To a lesser extent, the increase in property premiums was also due to new excess of loss catastrophe contracts and reinstatement premiums recorded on those contracts resulting from natural catastrophe losses during the period.
The increases were partially offset by a homeowners’ property contract that was commuted during 2017. The comparative period gross premiums written relating to this contract included in-force unearned premiums.
|
Casualty
|
|
$93.0
|
|
26.5%
|
|
The increase was primarily due to growth in the volume of underlying policies on new and existing private passenger motor contracts. Additionally a new workers’ compensation contract and growth in volume of business written on multi-line contracts also contributed to the increase in casualty premiums written during 2017.
|
Other
|
|
$24.9
|
|
27.1%
|
|
The increase was partially due to a new transactional liability contract bound during the fourth quarter of 2016, resulting in full year’s premiums being recorded during 2017. Additionally, the increase was partially due to growth in the volume of underlying policies on existing employer medical stop-loss contracts, and to a lesser extent, due to new employer medical stop-loss contracts entered during 2017.
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
$
|
76,200
|
|
|
16.4
|
%
|
|
$
|
121,368
|
|
|
19.1
|
%
|
|
$
|
92,939
|
|
|
17.7
|
%
|
Casualty
|
|
300,503
|
|
|
64.7
|
|
|
398,298
|
|
|
62.6
|
|
|
341,479
|
|
|
64.9
|
|
|||
Other
|
|
88,040
|
|
|
18.9
|
|
|
116,398
|
|
|
18.3
|
|
|
91,639
|
|
|
17.4
|
|
|||
Total
|
|
$
|
464,743
|
|
|
100.0
|
%
|
|
$
|
636,064
|
|
|
100.0
|
%
|
|
$
|
526,057
|
|
|
100.0
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
$
|
84,116
|
|
|
16.6
|
%
|
|
$
|
134,402
|
|
|
21.5
|
%
|
|
$
|
92,038
|
|
|
17.9
|
%
|
Casualty
|
|
321,998
|
|
|
63.3
|
|
|
401,849
|
|
|
64.2
|
|
|
348,119
|
|
|
67.9
|
|
|||
Other
|
|
102,249
|
|
|
20.1
|
|
|
89,753
|
|
|
14.3
|
|
|
72,961
|
|
|
14.2
|
|
|||
Total
|
|
$
|
508,363
|
|
|
100.0
|
%
|
|
$
|
626,004
|
|
|
100.0
|
%
|
|
$
|
513,118
|
|
|
100.0
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
$
|
63,563
|
|
|
17.5
|
%
|
|
$
|
126,401
|
|
|
25.1
|
%
|
|
$
|
61,588
|
|
|
16.2
|
%
|
Casualty
|
|
243,091
|
|
|
66.8
|
|
|
316,800
|
|
|
63.1
|
|
|
274,569
|
|
|
72.1
|
|
|||
Other
|
|
57,219
|
|
|
15.7
|
|
|
59,203
|
|
|
11.8
|
|
|
44,658
|
|
|
11.7
|
|
|||
Total
|
|
$
|
363,873
|
|
|
100.0
|
%
|
|
$
|
502,404
|
|
|
100.0
|
%
|
|
$
|
380,815
|
|
|
100.0
|
%
|
|
|
Increase (decrease)
($ in millions) |
|
% change
|
|
Explanation
|
Property
|
|
$(62.8)
|
|
(49.7)%
|
|
The decrease in losses incurred was partially due to lower level of losses relating to natural catastrophes during 2018 of $21.0 million compared to losses incurred of $50.4 million during the same period in 2017. In addition, the lower property losses incurred during the 2018 were partially due to a homeowners’ insurance contract that was commuted at the end of 2017.
These developments were also the primary drivers of the 18.4 percentage-point decrease in the property loss ratio.
|
Casualty
|
|
$(73.7)
|
|
(23.3)%
|
|
The decrease in losses incurred was primarily due to a decrease in casualty exposure, which corresponds with the decrease in net earned premiums as explained above. This decrease in exposure was in part driven by the retrocession of private passenger automobile contracts resulting in increased losses recovered from retrocessionaires. The decrease also reflected the adverse loss development recorded during 2017 on various multi-line and casualty contracts, which did not have comparable loss development during 2018.
This decrease in adverse development also drove the 3.3 percentage-point decrease in the loss ratio. Partially offsetting this decrease was an increase in adverse loss development during 2018 relating to professional indemnity, motor liability and general liability contracts.
|
Other
|
|
$(2.0)
|
|
(3.4)%
|
|
The decrease was primarily driven by favorable loss development on mortgage contracts during 2018, and a decrease in exposure to transactional liability business, which corresponded with a decrease in the associated net premium earned.
These decreases were partially offset by an increase in losses incurred on medical stop-loss business, which corresponded with an increase in net premiums earned. The favorable loss development was the primary driver of the 10.0 percentage-point improvement in the loss ratio. The decrease in the loss ratio also reflects improved terms and conditions associated with health business earned during 2018 as compared to 2017. |
|
|
Increase (decrease)
($ in millions) |
|
% change
|
|
Explanation
|
Property
|
|
$64.8
|
|
105.2%
|
|
The increase was primarily due to catastrophe losses incurred during 2017 of $50.4 million, compared to the catastrophe losses incurred during 2016 of $4.4 million. To a lesser extent, the increase was due to the increased exposure to automobile contracts, which corresponded with an increase in net premiums earned.
The increase in natural catastrophe losses in 2017 over 2016 was the primary driver of the 27.1 percentage-point increase in the loss ratio.
|
Casualty
|
|
$42.2
|
|
15.4%
|
|
The increase primarily resulted from an increased exposure to workers’ compensation and automobile contracts, which corresponded with an increase in net premiums earned. To a lesser extent, the increase was partially related to increase in reserves due to adverse loss development on prior year professional liability and multi-line contracts.
|
Other
|
|
$14.5
|
|
32.6%
|
|
The increase was primarily related to greater exposure to medical stop-loss contracts (which corresponded with an increase in net premiums earned) as well as increased adverse loss development on the same business.
This adverse development was also the primary driver of the 4.8 percentage-point increase in the loss ratio from 2016 to 2017. |
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
$
|
20,190
|
|
|
13.9
|
%
|
|
$
|
35,852
|
|
|
22.2
|
%
|
|
$
|
27,492
|
|
|
20.4
|
%
|
Casualty
|
|
84,279
|
|
|
57.9
|
|
|
95,822
|
|
|
59.2
|
|
|
85,283
|
|
|
63.4
|
|
|||
Other
|
|
41,006
|
|
|
28.2
|
|
|
30,066
|
|
|
18.6
|
|
|
21,759
|
|
|
16.2
|
|
|||
Total
|
|
$
|
145,475
|
|
|
100.0
|
%
|
|
$
|
161,740
|
|
|
100.0
|
%
|
|
$
|
134,534
|
|
|
100.0
|
%
|
|
|
Increase / (decrease) in acquisition cost ratio points
|
Explanation
|
Property
|
|
(2.7)
|
The decrease was primarily due to a decrease in the in-force homeowners’ insurance business assumed, which has a higher rate of ceding commission than other property contracts. The decrease was partially offset by a higher acquisition cost ratio on motor business in 2018 primarily due to a change in structure on current contracts that resulted in higher ceding commissions.
|
Casualty
|
|
2.4
|
The increase was primarily due to (i) the reversal of profit commissions on multi-line and professional liability contracts that experienced adverse development during 2017 and (ii) changes in the structure of certain motor contracts.
|
Other
|
|
6.6
|
The increase was primarily due to an increase in profit commissions resulting from favorable loss development on mortgage insurance contracts, partially offset by lower ceding commissions on health business.
|
|
|
Increase / (decrease) in acquisition cost ratio points
|
Explanation
|
Property
|
|
(3.2)
|
The decrease was primarily related to (i) increased reinstatement premiums earned on catastrophe contracts, which generally incorporate low acquisition costs, and (ii) lower ceding commission rates on homeowners’ insurance.
|
Casualty
|
|
(0.7)
|
The decrease was due primarily to the reversal of a profit commission on a multi-line contract due to an increase in losses incurred during 2017.
|
Other
|
|
3.7
|
The increase was due primarily to an increase in mortgage business earned during 2017 over 2016. Mortgage premiums generally incorporate a relatively high acquisition cost ratio.
|
|
Year ended December 31
|
||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||
|
($ in thousands)
|
||||||||||
Underwriting expenses
|
$
|
13,114
|
|
|
$
|
15,138
|
|
|
$
|
16,583
|
|
Corporate expenses
|
12,059
|
|
|
11,218
|
|
|
9,225
|
|
|||
General and administrative expenses
|
$
|
25,173
|
|
|
$
|
26,356
|
|
|
$
|
25,808
|
|
|
|
Year ended December 31
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Realized gains (losses)
|
|
$
|
(236,887
|
)
|
|
$
|
87,618
|
|
|
$
|
(113,836
|
)
|
Change in unrealized gains and losses
|
|
(32,597
|
)
|
|
(41,444
|
)
|
|
209,993
|
|
|||
Investment related foreign exchange gains (losses)
|
|
938
|
|
|
(7,653
|
)
|
|
2,988
|
|
|||
Interest and dividend income, net of withholding taxes
|
|
35,468
|
|
|
25,510
|
|
|
23,915
|
|
|||
Interest, dividend and other expenses
|
|
(17,987
|
)
|
|
(23,937
|
)
|
|
(22,334
|
)
|
|||
Investment advisor compensation on joint venture
|
|
(11,221
|
)
|
|
(19,863
|
)
|
|
(24,543
|
)
|
|||
Income (loss) from equity method investment
|
|
(247
|
)
|
|
—
|
|
|
—
|
|
|||
Net investment income (loss)
|
|
$
|
(262,533
|
)
|
|
$
|
20,231
|
|
|
$
|
76,183
|
|
Income (loss) from investments in related party investment fund
|
|
$
|
(60,573
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Total investment related income (loss)
|
|
$
|
(323,106
|
)
|
|
$
|
20,231
|
|
|
$
|
76,183
|
|
|
Year ended December 31
|
|
Year ended December 31
|
|
Year ended December 31
|
||||||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||||||||||||||
|
Property
|
|
Casualty
|
|
Other
|
|
Total
|
|
Property
|
|
Casualty
|
|
Other
|
|
Total
|
|
Property
|
|
Casualty
|
|
Other
|
|
Total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loss ratio
|
75.6
|
%
|
|
75.5
|
%
|
|
56.0
|
%
|
|
71.6
|
%
|
|
94.0
|
%
|
|
78.8
|
%
|
|
66.0
|
%
|
|
80.3
|
%
|
|
66.9
|
%
|
|
78.9
|
%
|
|
61.2
|
%
|
|
74.2
|
%
|
Acquisition cost ratio
|
24.0
|
|
|
26.2
|
|
|
40.1
|
|
|
28.6
|
|
|
26.7
|
|
|
23.8
|
|
|
33.5
|
|
|
25.8
|
|
|
29.9
|
|
|
24.5
|
|
|
29.8
|
|
|
26.2
|
|
Composite ratio
|
99.6
|
%
|
|
101.7
|
%
|
|
96.1
|
%
|
|
100.2
|
%
|
|
120.7
|
%
|
|
102.6
|
%
|
|
99.5
|
%
|
|
106.1
|
%
|
|
96.8
|
%
|
|
103.4
|
%
|
|
91.0
|
%
|
|
100.4
|
%
|
Underwriting expense ratio
|
|
|
|
|
|
|
2.6
|
|
|
|
|
|
|
|
|
2.5
|
|
|
|
|
|
|
|
|
3.2
|
|
|||||||||
Combined ratio
|
|
|
|
|
|
|
102.8
|
%
|
|
|
|
|
|
|
|
108.6
|
%
|
|
|
|
|
|
|
|
103.6
|
%
|
|
December 31, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
|
Case
Reserves |
|
IBNR
|
|
Total
|
|
Case
Reserves |
|
IBNR
|
|
Total
|
||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||
Property
|
$
|
57,850
|
|
|
$
|
30,977
|
|
|
$
|
88,827
|
|
|
$
|
59,278
|
|
|
$
|
29,235
|
|
|
$
|
88,513
|
|
Casualty
|
133,881
|
|
|
221,212
|
|
|
355,093
|
|
|
101,770
|
|
|
228,696
|
|
|
330,466
|
|
||||||
Other
|
20,179
|
|
|
18,563
|
|
|
38,742
|
|
|
17,040
|
|
|
28,361
|
|
|
45,401
|
|
||||||
Total
|
$
|
211,910
|
|
|
$
|
270,752
|
|
|
$
|
482,662
|
|
|
$
|
178,088
|
|
|
$
|
286,292
|
|
|
$
|
464,380
|
|
|
|
January 1, 2019
|
||||||
|
|
1-in-250 year return period
|
||||||
Zone
|
|
Single Event Loss
|
|
Aggregate Loss
|
||||
|
|
($ in thousands)
|
||||||
United States, Canada and the Caribbean
|
|
$
|
91,483
|
|
|
$
|
107,635
|
|
Europe
|
|
43,937
|
|
|
48,848
|
|
||
Japan
|
|
23,348
|
|
|
25,584
|
|
||
Rest of the world
|
|
24,025
|
|
|
26,500
|
|
||
Maximum
|
|
91,483
|
|
|
117,475
|
|
|
Less than
1 year |
|
1-3 years
|
|
3-5 years
|
|
More than
5 years |
|
Total
|
||||||||||
|
($ in thousands)
|
||||||||||||||||||
Operating lease obligations
(1)
|
$
|
169
|
|
|
$
|
232
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
401
|
|
Interest and convertible note payable
(2)
|
4,000
|
|
|
8,000
|
|
|
106,400
|
|
|
—
|
|
|
118,400
|
|
|||||
Loan facility
(3)
|
5,750
|
|
|
|
|
|
|
|
|
5,750
|
|
||||||||
Loss and loss adjustment expense reserves
(4)
|
244,710
|
|
|
132,732
|
|
|
46,818
|
|
|
58,402
|
|
|
482,662
|
|
|||||
|
$
|
254,629
|
|
|
$
|
140,964
|
|
|
$
|
153,218
|
|
|
$
|
58,402
|
|
|
$
|
607,213
|
|
(3)
|
As of
December 31, 2018
, we had made a commitment to fund
$5.8 million
under a
$6.0 million
loan facility (See Note
4
). For purposes of the above table, we have assumed that the entire commitment will be made within one year.
|
•
|
|
equity price risk;
|
•
|
|
commodity price risk;
|
•
|
|
foreign currency risk;
|
•
|
|
interest rate risk;
|
•
|
|
credit risk; and
|
•
|
|
political risk.
|
|
10% increase in commodity prices
|
|
10% decrease in commodity prices
|
||||||||||
Commodity
|
Change in
fair value |
|
Change in fair value as % of investments
|
|
Change in
fair value |
|
Change in fair value as % of investments
|
||||||
|
($ in thousands)
|
|
|
|
($ in thousands)
|
|
|
||||||
Gold
|
$
|
8,878
|
|
|
1.7
|
%
|
|
$
|
(8,878
|
)
|
|
(1.7
|
)%
|
|
10% increase in U.S. dollar
|
|
10% decrease in U.S. dollar
|
||||||||||
Foreign Currency
|
Change in
fair value |
|
Change in fair value as % of investments
|
|
Change in
fair value |
|
Change in fair value as % of investments
|
||||||
|
($ in thousands)
|
||||||||||||
British Pound
|
$
|
(138
|
)
|
|
—
|
%
|
|
$
|
138
|
|
|
—
|
%
|
Euro
|
(243
|
)
|
|
—
|
|
|
243
|
|
|
—
|
|
||
Other
|
240
|
|
|
—
|
|
|
(240
|
)
|
|
—
|
|
||
Total
|
$
|
(141
|
)
|
|
—
|
%
|
|
$
|
141
|
|
|
—
|
%
|
|
100 basis point increase
in interest rates |
|
100 basis point decrease
in interest rates |
||||||||||
|
Change in
fair value |
|
Change in fair value as % of investments
|
|
Change in
fair value |
|
Change in fair value as % of investments
|
||||||
|
($ in thousands)
|
||||||||||||
Debt instruments
|
$
|
221
|
|
|
—
|
%
|
|
$
|
(229
|
)
|
|
—
|
%
|
Interest rate swaps
|
3,309
|
|
|
0.7
|
|
|
(3,309
|
)
|
|
(0.7
|
)
|
||
Net exposure to interest rate risk
|
$
|
3,530
|
|
|
0.7
|
%
|
|
$
|
(3,538
|
)
|
|
(0.7
|
)%
|
|
●
|
pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
|
|
|
|
|
●
|
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with U.S. GAAP, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
|
|
|
|
|
●
|
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on its financial statements.
|
|
|
Page
|
|
|
(a)(1)
|
Financial Statements
|
|
|
|
|
|
|
||
|
|
|
||
|
|
|
||
|
Consolidated Balance Sheets as of December 31, 2018 and 2017
|
|
|
|
|
Consolidated Statements of Operations for the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Consolidated Statements of Shareholders' Equity for the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Consolidated Statements of Cash Flows for the years ended December 31, 2018, 2017 and 2016
|
|
|
|
|
Notes to the Consolidated Financial Statements
|
|
|
|
(a)(2)
|
Financial Statement Schedules
|
|
|
|
|
|
|
||
|
|
|
||
|
|
|
||
|
|
|
||
(a)(3)
|
The exhibits required to be filed by this Item 15. are set forth in the
Exhibit Index
accompanying this report.
|
|
|
|
|
GREENLIGHT CAPITAL RE, LTD.
|
By:
|
/s/ Simon Burton
|
|
Simon Burton
Chief Executive Officer |
|
March 15, 2019
|
|
2018
|
|
2017
|
||||
Assets
|
|
|
|
||||
Investments
|
|
|
|
||||
Investment in related party investment fund, at fair value
|
$
|
235,612
|
|
|
$
|
—
|
|
Debt instruments, trading, at fair value
|
—
|
|
|
7,180
|
|
||
Equity securities, trading, at fair value
|
36,908
|
|
|
1,203,672
|
|
||
Other investments
|
11,408
|
|
|
152,132
|
|
||
Total investments
|
283,928
|
|
|
1,362,984
|
|
||
Cash and cash equivalents
|
18,215
|
|
|
27,285
|
|
||
Restricted cash and cash equivalents
|
685,016
|
|
|
1,503,813
|
|
||
Financial contracts receivable, at fair value
|
—
|
|
|
12,893
|
|
||
Reinsurance balances receivable
|
300,251
|
|
|
301,762
|
|
||
Loss and loss adjustment expenses recoverable
|
43,705
|
|
|
29,459
|
|
||
Deferred acquisition costs, net
|
49,929
|
|
|
62,350
|
|
||
Unearned premiums ceded
|
24,981
|
|
|
25,120
|
|
||
Notes receivable, net
|
26,861
|
|
|
28,497
|
|
||
Other assets
|
2,559
|
|
|
3,230
|
|
||
Total assets
|
$
|
1,435,445
|
|
|
$
|
3,357,393
|
|
Liabilities and equity
|
|
|
|
||||
Liabilities
|
|
|
|
||||
Due to related party investment fund
|
$
|
9,642
|
|
|
$
|
—
|
|
Securities sold, not yet purchased, at fair value
|
—
|
|
|
912,797
|
|
||
Financial contracts payable, at fair value
|
—
|
|
|
22,222
|
|
||
Due to prime brokers and other financial institutions
|
—
|
|
|
672,700
|
|
||
Loss and loss adjustment expense reserves
|
482,662
|
|
|
464,380
|
|
||
Unearned premium reserves
|
211,789
|
|
|
255,818
|
|
||
Reinsurance balances payable
|
139,218
|
|
|
144,058
|
|
||
Funds withheld
|
16,418
|
|
|
23,579
|
|
||
Other liabilities
|
5,067
|
|
|
10,413
|
|
||
Convertible senior notes payable, net of deferred costs
|
91,185
|
|
|
—
|
|
||
Total liabilities
|
955,981
|
|
|
2,505,967
|
|
||
|
|
|
|
||||
Redeemable non-controlling interest in related party joint venture
|
1,692
|
|
|
7,169
|
|
||
|
|
|
|
||||
Equity
|
|
|
|
||||
Preferred share capital (par value $0.10; authorized, 50,000,000; none issued)
|
—
|
|
|
—
|
|
||
Ordinary share capital (Class A: par value $0.10; authorized, 100,000,000; issued and outstanding, 30,130,214 (2017: 31,104,830): Class B: par value $0.10; authorized, 25,000,000; issued and outstanding, 6,254,715 (2017: 6,254,715))
|
3,638
|
|
|
3,736
|
|
||
Additional paid-in capital
|
499,726
|
|
|
503,316
|
|
||
Retained earnings (deficit)
|
(26,077
|
)
|
|
324,272
|
|
||
Shareholders’ equity attributable to Greenlight Capital Re, Ltd.
|
477,287
|
|
|
831,324
|
|
||
Non-controlling interest in related party joint venture
|
485
|
|
|
12,933
|
|
||
Total equity
|
477,772
|
|
|
844,257
|
|
||
Total liabilities, redeemable non-controlling interest and equity
|
$
|
1,435,445
|
|
|
$
|
3,357,393
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Revenues
|
|
|
|
|
|
||||||
Gross premiums written
|
$
|
567,531
|
|
|
$
|
692,651
|
|
|
$
|
536,072
|
|
Gross premiums ceded
|
(102,788
|
)
|
|
(56,587
|
)
|
|
(10,015
|
)
|
|||
Net premiums written
|
464,743
|
|
|
636,064
|
|
|
526,057
|
|
|||
Change in net unearned premium reserves
|
43,620
|
|
|
(10,060
|
)
|
|
(12,939
|
)
|
|||
Net premiums earned
|
508,363
|
|
|
626,004
|
|
|
513,118
|
|
|||
Income (loss) from investment in related party investment fund [net of related party expenses of $3,100, $0 and $0, respectively]
|
(60,573
|
)
|
|
—
|
|
|
—
|
|
|||
Net investment income (loss) [net of related party expenses of $11,221, $19,863 and $24,543, respectively]
|
(262,533
|
)
|
|
20,231
|
|
|
76,183
|
|
|||
Other income (expense), net
|
(2,228
|
)
|
|
(560
|
)
|
|
(935
|
)
|
|||
Total revenues
|
183,029
|
|
|
645,675
|
|
|
588,366
|
|
|||
Expenses
|
|
|
|
|
|
||||||
Loss and loss adjustment expenses incurred, net
|
363,873
|
|
|
502,404
|
|
|
380,815
|
|
|||
Acquisition costs, net
|
145,475
|
|
|
161,740
|
|
|
134,534
|
|
|||
General and administrative expenses
|
25,173
|
|
|
26,356
|
|
|
25,808
|
|
|||
Interest expense
|
2,505
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
537,026
|
|
|
690,500
|
|
|
541,157
|
|
|||
Income (loss) before income tax
|
(353,997
|
)
|
|
(44,825
|
)
|
|
47,209
|
|
|||
Income tax (expense) benefit
|
(332
|
)
|
|
451
|
|
|
(509
|
)
|
|||
Net income (loss)
|
(354,329
|
)
|
|
(44,374
|
)
|
|
46,700
|
|
|||
Loss (income) attributable to non-controlling interest in related party joint venture
|
4,275
|
|
|
(578
|
)
|
|
(1,819
|
)
|
|||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
$
|
(350,054
|
)
|
|
$
|
(44,952
|
)
|
|
$
|
44,881
|
|
Earnings (loss) per share
|
|
|
|
|
|
||||||
Basic
|
$
|
(9.74
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
1.20
|
|
Diluted
|
$
|
(9.74
|
)
|
|
$
|
(1.21
|
)
|
|
$
|
1.20
|
|
Weighted average number of ordinary shares used in the determination of earnings and loss per share
|
|
|
|
|
|
||||||
Basic
|
35,951,659
|
|
|
37,002,260
|
|
|
37,267,145
|
|
|||
Diluted
|
35,951,659
|
|
|
37,002,260
|
|
|
37,340,018
|
|
|
Ordinary share capital
|
|
Additional paid-in capital
|
|
Retained earnings (deficit)
|
|
Shareholders’ equity attributable to Greenlight Capital Re, Ltd.
|
|
Non-controlling
interest in joint venture |
|
Total equity
|
||||||||||||
Balance at December 31, 2015
|
$
|
3,703
|
|
|
$
|
496,401
|
|
|
$
|
325,287
|
|
|
$
|
825,391
|
|
|
$
|
11,118
|
|
|
$
|
836,509
|
|
Issue of Class A ordinary shares, net of forfeitures
|
34
|
|
|
—
|
|
|
—
|
|
|
34
|
|
|
—
|
|
|
34
|
|
||||||
Share-based compensation expense, net of forfeitures
|
—
|
|
|
3,936
|
|
|
—
|
|
|
3,936
|
|
|
—
|
|
|
3,936
|
|
||||||
Change in non-controlling interest in related party joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
443
|
|
|
443
|
|
||||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
—
|
|
|
—
|
|
|
44,881
|
|
|
44,881
|
|
|
—
|
|
|
44,881
|
|
||||||
Balance at December 31, 2016
|
$
|
3,737
|
|
|
$
|
500,337
|
|
|
$
|
370,168
|
|
|
$
|
874,242
|
|
|
$
|
11,561
|
|
|
$
|
885,803
|
|
Issue of Class A ordinary shares, net of forfeitures
|
13
|
|
|
—
|
|
|
—
|
|
|
13
|
|
|
—
|
|
|
13
|
|
||||||
Repurchase of Class A ordinary shares
|
(14
|
)
|
|
(1,861
|
)
|
|
(944
|
)
|
|
(2,819
|
)
|
|
—
|
|
|
(2,819
|
)
|
||||||
Share-based compensation expense, net of forfeitures
|
—
|
|
|
4,840
|
|
|
—
|
|
|
4,840
|
|
|
—
|
|
|
4,840
|
|
||||||
Change in non-controlling interest in related party joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,372
|
|
|
1,372
|
|
||||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
—
|
|
|
—
|
|
|
(44,952
|
)
|
|
(44,952
|
)
|
|
—
|
|
|
(44,952
|
)
|
||||||
Balance at December 31, 2017
|
$
|
3,736
|
|
|
$
|
503,316
|
|
|
$
|
324,272
|
|
|
$
|
831,324
|
|
|
$
|
12,933
|
|
|
$
|
844,257
|
|
Issue of Class A ordinary shares, net of forfeitures
|
20
|
|
|
—
|
|
|
—
|
|
|
20
|
|
|
—
|
|
|
20
|
|
||||||
Repurchase of Class A ordinary shares
|
(118
|
)
|
|
(16,090
|
)
|
|
(295
|
)
|
|
(16,503
|
)
|
|
—
|
|
|
(16,503
|
)
|
||||||
Share-based compensation expense, net of forfeitures
|
—
|
|
|
4,604
|
|
|
—
|
|
|
4,604
|
|
|
—
|
|
|
4,604
|
|
||||||
Issuance of convertible notes
|
—
|
|
|
7,896
|
|
|
—
|
|
|
7,896
|
|
|
—
|
|
|
7,896
|
|
||||||
Change in non-controlling interest in related party joint venture
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(12,448
|
)
|
|
(12,448
|
)
|
||||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
—
|
|
|
—
|
|
|
(350,054
|
)
|
|
(350,054
|
)
|
|
—
|
|
|
(350,054
|
)
|
||||||
Balance at December 31, 2018
|
$
|
3,638
|
|
|
$
|
499,726
|
|
|
$
|
(26,077
|
)
|
|
$
|
477,287
|
|
|
$
|
485
|
|
|
$
|
477,772
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
Cash provided by (used in) operating activities
|
|
|
|
|
|
||||||
Net income (loss)
|
$
|
(354,329
|
)
|
|
$
|
(44,374
|
)
|
|
$
|
46,700
|
|
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities
|
|
|
|
|
|
||||||
Loss (income) from investments in related party investment fund
|
60,573
|
|
|
—
|
|
|
—
|
|
|||
Loss (income) from equity accounted investment
|
247
|
|
|
—
|
|
|
—
|
|
|||
Net change in unrealized gains and losses on investments and financial contracts
|
32,597
|
|
|
41,444
|
|
|
(209,993
|
)
|
|||
Net realized (gains) losses on investments and financial contracts
|
236,887
|
|
|
(87,618
|
)
|
|
113,836
|
|
|||
Foreign exchange (gains) losses on investments
|
186
|
|
|
5,292
|
|
|
3,094
|
|
|||
Share-based compensation expense, net of forfeitures
|
4,624
|
|
|
4,853
|
|
|
3,970
|
|
|||
Amortization and interest expense
|
2,505
|
|
|
—
|
|
|
—
|
|
|||
Depreciation expense
|
260
|
|
|
368
|
|
|
390
|
|
|||
Net change in
|
|
|
|
|
|
||||||
Reinsurance balances receivable
|
1,511
|
|
|
(82,636
|
)
|
|
(31,186
|
)
|
|||
Loss and loss adjustment expenses recoverable
|
(14,246
|
)
|
|
(26,755
|
)
|
|
664
|
|
|||
Deferred acquisition costs, net
|
12,421
|
|
|
(1,328
|
)
|
|
(1,199
|
)
|
|||
Unearned premiums ceded
|
139
|
|
|
(22,743
|
)
|
|
874
|
|
|||
Other assets
|
411
|
|
|
705
|
|
|
2,171
|
|
|||
Loss and loss adjustment expense reserves
|
18,282
|
|
|
157,739
|
|
|
644
|
|
|||
Unearned premium reserves
|
(44,029
|
)
|
|
33,291
|
|
|
10,573
|
|
|||
Reinsurance balances payable
|
(4,840
|
)
|
|
102,643
|
|
|
23,089
|
|
|||
Funds withheld
|
(7,161
|
)
|
|
17,652
|
|
|
(1,216
|
)
|
|||
Other liabilities
|
(5,346
|
)
|
|
(4,114
|
)
|
|
1,802
|
|
|||
Net cash provided by (used in) operating activities
|
(59,308
|
)
|
|
94,419
|
|
|
(35,787
|
)
|
|||
Investing activities
|
|
|
|
|
|
||||||
Proceeds from redemptions from related party investment fund
|
96,635
|
|
|
—
|
|
|
—
|
|
|||
Contributions to related party investment fund
|
(268,317
|
)
|
|
—
|
|
|
—
|
|
|||
Purchases of investments
|
(402,244
|
)
|
|
(1,120,549
|
)
|
|
(1,310,837
|
)
|
|||
Sales of investments, trading
|
1,002,374
|
|
|
1,036,665
|
|
|
1,470,118
|
|
|||
Payments for financial contracts
|
(129,907
|
)
|
|
(24,714
|
)
|
|
(60,414
|
)
|
|||
Proceeds from financial contracts
|
44,596
|
|
|
82,789
|
|
|
20,426
|
|
|||
Securities sold, not yet purchased
|
340,693
|
|
|
1,120,506
|
|
|
699,237
|
|
|||
Dispositions of securities sold, not yet purchased
|
(844,379
|
)
|
|
(1,253,176
|
)
|
|
(792,970
|
)
|
|||
Change in due to prime brokers and other financial institutions
|
(672,700
|
)
|
|
352,870
|
|
|
(76,623
|
)
|
|||
Change in notes receivable, net
|
1,636
|
|
|
5,237
|
|
|
(8,588
|
)
|
|||
Non-controlling interest contribution into (withdrawal from) related party joint venture, net
|
(13,650
|
)
|
|
2,079
|
|
|
(7,756
|
)
|
|||
Net cash provided by (used in) investing activities
|
(845,263
|
)
|
|
201,707
|
|
|
(67,407
|
)
|
|||
Financing activities
|
|
|
|
|
|
||||||
Net proceeds from issuance of convertible senior notes payable, net of costs
|
96,576
|
|
|
—
|
|
|
—
|
|
|||
Repurchase of Class A ordinary shares
|
(16,503
|
)
|
|
(2,819
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
80,073
|
|
|
(2,819
|
)
|
|
—
|
|
|||
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash
|
(3,369
|
)
|
|
(4,718
|
)
|
|
(3,048
|
)
|
|||
Net increase (decrease) in cash, cash equivalents and restricted cash
|
(827,867
|
)
|
|
288,589
|
|
|
(106,242
|
)
|
|||
Cash, cash equivalents and restricted cash at beginning of the period (see Note 2)
|
1,531,098
|
|
|
1,242,509
|
|
|
1,348,751
|
|
|||
Cash, cash equivalents and restricted cash at end of the period (see Note 2)
|
$
|
703,231
|
|
|
$
|
1,531,098
|
|
|
$
|
1,242,509
|
|
Supplementary information
|
|
|
|
|
|
||||||
Interest paid in cash
|
$
|
11,088
|
|
|
$
|
10,062
|
|
|
$
|
7,823
|
|
Income tax paid in cash
|
4
|
|
|
—
|
|
|
—
|
|
|||
Non-cash transfer of investments (Note 3)
|
125,008
|
|
|
—
|
|
|
—
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
($ in thousands)
|
||||||
Cash and cash equivalents
|
$
|
18,215
|
|
|
$
|
27,285
|
|
Restricted cash and cash equivalents
|
685,016
|
|
|
1,503,813
|
|
||
Total cash, cash equivalents and restricted cash presented in the consolidated statements of cash flows
|
$
|
703,231
|
|
|
$
|
1,531,098
|
|
|
●
|
case reserves resulting from claims notified to the Company by its clients; and
|
|
●
|
reserves for estimated loss and loss adjustment expenses that have been incurred by insureds and reinsureds but not yet reported to the insurer or reinsurer, including unknown future developments on loss and loss adjustment expenses which are known to the insurer or reinsurer).
|
|
●
|
Paid Loss Development Method
.
Ultimate losses are estimated by calculating past paid loss development factors and applying them to exposure periods with further expected paid loss development. The paid loss development method assumes that losses are paid in a consistent pattern. It provides an objective test of reported loss projections because paid losses contain no reserve estimates.
|
|
●
|
Reported Loss Development Method.
Ultimate losses are estimated by calculating past reported loss development factors and applying them to exposure periods with further expected reported loss development. Since reported losses include payments and case reserves, changes in both of these amounts are incorporated in this method.
|
|
●
|
Expected Loss Ratio Method.
Ultimate losses are estimated by multiplying earned premiums by an expected loss ratio. The expected loss ratio is selected using industry data, historical company data and actuarial professional judgment. This method is typically used for lines of business and contracts where there are no historical losses or where past loss experience is not considered applicable to the current period.
|
|
●
|
Bornhuetter-Ferguson Paid Loss Method.
Ultimate losses are estimated by modifying expected loss ratios to the extent that paid losses experienced to date differ from what would have been expected to have been paid based upon the selected paid loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of paid losses to calculate ultimate losses.
|
|
●
|
Bornhuetter-Ferguson Reported Loss Method.
Ultimate losses are estimated by modifying expected loss ratios to the extent reported losses experienced to date differ from what would have been expected to have been reported based upon the selected reported loss development pattern. This method avoids some of the distortions that could result from a large development factor being applied to a small base of reported losses to calculate ultimate losses.
|
|
●
|
Frequency / Severity Method.
Ultimate losses are estimated under this method by multiplying the ultimate number of claims (i.e. the frequency multiplied by the exposure base on which the frequency has been determined), by the estimated ultimate average cost per claim (i.e. the severity). This approach enables trends and patterns in the rates of claims emergence (i.e. reporting) and settlement (i.e. closure), as well as in the average cost of claims, to be analyzed separately.
|
•
|
RSUs issued that would convert to common shares upon vesting;
|
•
|
additional potential common shares issuable when stock options are exercised, determined using the treasury stock method; and
|
•
|
those common shares with the potential to be issued by virtue of convertible debt and other such convertible instruments, determined using the treasury stock method.
|
|
Year ended December 31
|
|||||||
|
2018
|
|
2017
|
|
2016
|
|||
Weighted average shares outstanding - basic
|
35,951,659
|
|
|
37,002,260
|
|
|
37,267,145
|
|
Effect of dilutive employee and director share-based awards
|
—
|
|
|
—
|
|
|
72,873
|
|
Weighted average shares outstanding - diluted
|
35,951,659
|
|
|
37,002,260
|
|
|
37,340,018
|
|
Anti-dilutive stock options outstanding
|
935,627
|
|
|
358,741
|
|
|
435,991
|
|
Participating securities excluded from calculation of loss per share
|
432,457
|
|
|
331,510
|
|
|
—
|
|
Non-cash transactions
|
($ in thousands)
|
||
Net investments transferred to related party investment fund (excluding cash and restricted cash)
|
$
|
124,344
|
|
Participating interest transferred to related party investment fund
|
664
|
|
|
Total non-cash transfer of assets
|
$
|
125,008
|
|
|
|
From September 1, 2018 (commencement of operations) to December 31, 2018
|
||
|
|
($ in thousands)
|
||
Investment income
|
|
|
||
Dividend income (net of withholding taxes)
|
|
$
|
2,160
|
|
Interest income
|
|
1,868
|
|
|
Total Investment income
|
|
4,028
|
|
|
|
|
|
||
Expenses
|
|
|
||
Management fee
|
|
(3,100
|
)
|
|
Interest
|
|
(2,627
|
)
|
|
Dividends
|
|
(1,608
|
)
|
|
Professional fees and other
|
|
(483
|
)
|
|
Total expenses
|
|
(7,818
|
)
|
|
Net investment income (loss)
|
|
(3,790
|
)
|
|
|
|
|
||
Realized and change in unrealized gains (losses) on investments
|
|
|
||
Net realized gain (loss) on investments
|
|
(80,996
|
)
|
|
Net change in unrealized appreciation on investments
|
|
14,789
|
|
|
Net gain (loss) on investments
|
|
(66,207
|
)
|
|
|
|
|
||
Net income (loss)
|
|
$
|
(69,997
|
)
|
|
|
|
||
GLRE Limited Partners’ share of net income (loss)
|
|
$
|
(60,573
|
)
|
|
|
December 31, 2018
|
||
|
|
($ in thousands)
|
||
Assets
|
|
|
||
Investments, at fair value
|
|
$
|
464,461
|
|
Due from brokers
|
|
77,821
|
|
|
Cash and cash equivalents
|
|
13,200
|
|
|
Interest and dividends receivable
|
|
2,358
|
|
|
Total assets
|
|
557,840
|
|
|
|
|
|
||
Liabilities and partners’ capital
|
|
|
||
Liabilities
|
|
|
||
Investments sold, not yet purchased, at fair value
|
|
(225,072
|
)
|
|
Notes Payable
|
|
(30,000
|
)
|
|
Due to brokers
|
|
(23,951
|
)
|
|
Interest and dividends payable
|
|
(1,238
|
)
|
|
Other liabilities
|
|
(169
|
)
|
|
Total liabilities
|
|
(280,430
|
)
|
|
|
|
|
||
Net Assets
|
|
$
|
277,410
|
|
|
|
|
||
GLRE Limited Partners’ share of Net Assets
|
|
$
|
235,612
|
|
|
|
Year ended December 31
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Gross realized gains
|
|
$
|
303,674
|
|
|
$
|
267,904
|
|
|
$
|
188,700
|
|
Gross realized losses
|
|
(540,561
|
)
|
|
(180,286
|
)
|
|
(302,536
|
)
|
|||
Net realized gains (losses)
|
|
$
|
(236,887
|
)
|
|
$
|
87,618
|
|
|
$
|
(113,836
|
)
|
Change in unrealized gains and losses
|
|
$
|
(32,597
|
)
|
|
$
|
(41,444
|
)
|
|
$
|
209,993
|
|
|
|
Cost/
amortized
cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair
value
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Corporate debt – U.S.
|
|
$
|
8,508
|
|
|
$
|
—
|
|
|
$
|
(7,186
|
)
|
|
$
|
1,322
|
|
Corporate debt – Non U.S.
|
|
2,109
|
|
|
—
|
|
|
(2,057
|
)
|
|
52
|
|
||||
Municipal debt – U.S.
|
|
5,831
|
|
|
—
|
|
|
(25
|
)
|
|
5,806
|
|
||||
Total debt instruments
|
|
$
|
16,448
|
|
|
$
|
—
|
|
|
$
|
(9,268
|
)
|
|
$
|
7,180
|
|
|
|
2017
|
||||||
|
|
Cost/
amortized
cost
|
|
Fair
value
|
||||
|
|
|
||||||
Within one year
|
|
$
|
7,557
|
|
|
$
|
441
|
|
From one to five years
|
|
—
|
|
|
—
|
|
||
From five to ten years
|
|
2,109
|
|
|
52
|
|
||
More than ten years
|
|
6,782
|
|
|
6,687
|
|
||
|
|
$
|
16,448
|
|
|
$
|
7,180
|
|
|
|
Cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair
value
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Equities – listed
|
|
$
|
50,521
|
|
|
$
|
1,015
|
|
|
$
|
(14,628
|
)
|
|
$
|
36,908
|
|
Total equity securities
|
|
$
|
50,521
|
|
|
$
|
1,015
|
|
|
$
|
(14,628
|
)
|
|
$
|
36,908
|
|
|
|
Cost
|
|
Unrealized
gains
|
|
Unrealized
losses
|
|
Fair
value
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Equities – listed
|
|
$
|
1,014,426
|
|
|
$
|
208,350
|
|
|
$
|
(19,104
|
)
|
|
$
|
1,203,672
|
|
Total equity securities
|
|
$
|
1,014,426
|
|
|
$
|
208,350
|
|
|
$
|
(19,104
|
)
|
|
$
|
1,203,672
|
|
|
|
Cost
|
|
Unrealized
gains |
|
Unrealized
losses |
|
Fair
value / carrying value |
||||||||
|
|
($ in thousands)
|
||||||||||||||
Private investments and unlisted equity funds
|
|
$
|
6,672
|
|
|
$
|
—
|
|
|
$
|
(267
|
)
|
|
$
|
6,405
|
|
Investment accounted for under the equity method
|
|
NA
|
|
|
NA
|
|
|
NA
|
|
|
5,003
|
|
||||
Total Other Investments
|
|
|
|
|
|
|
|
$
|
11,408
|
|
|
|
Cost
|
|
Unrealized
gains |
|
Unrealized
losses |
|
Fair
value |
||||||||
|
|
($ in thousands)
|
||||||||||||||
Commodities
|
|
$
|
101,184
|
|
|
$
|
20,318
|
|
|
$
|
—
|
|
|
$
|
121,502
|
|
Private investments and unlisted equity funds
|
|
25,316
|
|
|
5,314
|
|
|
—
|
|
|
30,630
|
|
||||
|
|
$
|
126,500
|
|
|
$
|
25,632
|
|
|
$
|
—
|
|
|
$
|
152,132
|
|
|
|
Proceeds
|
|
Unrealized gains
|
|
Unrealized losses
|
|
Fair value
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Equities – listed
|
|
$
|
(643,148
|
)
|
|
$
|
17,541
|
|
|
$
|
(187,045
|
)
|
|
$
|
(812,652
|
)
|
Sovereign debt – Non U.S.
|
|
(96,231
|
)
|
|
—
|
|
|
(3,914
|
)
|
|
(100,145
|
)
|
||||
|
|
$
|
(739,379
|
)
|
|
$
|
17,541
|
|
|
$
|
(190,959
|
)
|
|
$
|
(912,797
|
)
|
Financial Contracts
|
|
Listing currency
(1)
|
|
Notional amount of
underlying instruments |
|
Fair value of net assets
(obligations) on financial contracts |
|||
|
|
|
|
($ in thousands)
|
|||||
Financial contracts receivable
|
|
|
|
|
|
|
|||
Call options
|
|
USD
|
|
2,656
|
|
|
$
|
91
|
|
Commodity Swaps
|
|
USD
|
|
17,833
|
|
|
2,142
|
|
|
Forwards
|
|
KRW
|
|
41,379
|
|
|
801
|
|
|
Futures
|
|
USD
|
|
5,874
|
|
|
12
|
|
|
Interest rate swaps
|
|
JPY
|
|
21,269
|
|
|
479
|
|
|
Put options
(2)
|
|
USD
|
|
155
|
|
|
1
|
|
|
Total return swaps – equities
|
|
EUR/GBP/USD
|
|
34,965
|
|
|
9,357
|
|
|
Warrants and rights on listed equities
|
|
EUR/USD
|
|
29
|
|
|
10
|
|
|
Total financial contracts receivable, at fair value
|
|
|
|
|
|
$
|
12,893
|
|
|
Financial contracts payable
|
|
|
|
|
|
|
|||
Commodity Swaps
|
|
USD
|
|
26,795
|
|
|
$
|
(353
|
)
|
Put options
|
|
USD
|
|
130
|
|
|
(14
|
)
|
|
Total return swaps – equities
|
|
EUR/GBP/KRW/RON/USD
|
|
60,663
|
|
|
(21,855
|
)
|
|
Total financial contracts payable, at fair value
|
|
|
|
|
|
$
|
(22,222
|
)
|
Derivatives not designated as hedging instruments
|
|
|
Gain (loss) on derivatives recognized in income
|
||||||||||
|
|
|
Year ended December 31
|
||||||||||
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
|
($ in thousands)
|
||||||||||
Commodity swaps
|
|
|
$
|
4,402
|
|
|
$
|
(9,293
|
)
|
|
$
|
10,474
|
|
Forwards
|
|
|
(2,983
|
)
|
|
2,507
|
|
|
(302
|
)
|
|||
Futures
|
|
|
(13,339
|
)
|
|
(399
|
)
|
|
376
|
|
|||
Interest rate options
|
|
|
(1,771
|
)
|
|
—
|
|
|
—
|
|
|||
Interest rate swaps
|
|
|
(255
|
)
|
|
136
|
|
|
218
|
|
|||
Options, warrants, and rights
|
|
|
(14,627
|
)
|
|
(18,455
|
)
|
|
10,261
|
|
|||
Total return swaps – equities
|
|
|
(10,981
|
)
|
|
2,281
|
|
|
28,612
|
|
|||
Total
|
|
|
$
|
(39,554
|
)
|
|
$
|
(23,223
|
)
|
|
$
|
49,639
|
|
December 31, 2017
|
|
(i)
|
|
(ii)
|
|
(iii) = (i) - (ii)
|
|
(iv) Gross amounts not offset in the balance sheet
|
|
(v) = (iii) + (iv)
|
||||||||||||||
Description
|
|
Gross amounts of recognized assets (liabilities)
|
|
Gross amounts offset in the balance sheet
|
|
Net amounts of assets (liabilities) presented in the balance sheet
|
|
Financial instruments available for offset
|
|
Cash collateral (received) pledged
|
|
Net amount of asset (liability)
|
||||||||||||
|
|
($ in thousands)
|
||||||||||||||||||||||
Financial contracts receivable
|
|
$
|
12,893
|
|
|
$
|
—
|
|
|
$
|
12,893
|
|
|
$
|
(5,128
|
)
|
|
$
|
(1,336
|
)
|
|
$
|
6,429
|
|
Financial contracts payable
|
|
(22,222
|
)
|
|
—
|
|
|
(22,222
|
)
|
|
5,128
|
|
|
17,094
|
|
|
—
|
|
•
|
Level 1:
Quoted prices in active markets for identical assets or liabilities that the entity has the ability to access.
|
•
|
Level 2:
Observable inputs other than prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated with observable market data.
|
•
|
Level 3:
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets and liabilities. This includes certain pricing models, discounted cash flow methodologies, and similar techniques that use significant unobservable inputs.
|
|
|
Fair value measurements as of December 31, 2018
|
||||||||||||||
Description
|
|
Quoted prices in
active markets (Level 1) |
|
Significant other
observable inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
|
Total
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Listed equity securities
|
|
$
|
36,908
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,908
|
|
Private and unlisted equity securities
|
|
—
|
|
|
—
|
|
|
664
|
|
|
664
|
|
||||
|
|
$
|
36,908
|
|
|
$
|
—
|
|
|
$
|
664
|
|
|
$
|
37,572
|
|
Investment in related party investment fund measured at net asset value
(1) (2)
|
|
|
|
|
|
|
|
235,612
|
|
|||||||
Equities without readily determinable fair values for which measurement alternative is applied
|
|
|
|
|
|
|
|
5,741
|
|
|||||||
Investment accounted for under the equity method
|
|
|
|
|
|
|
|
5,003
|
|
|||||||
Total investments
|
|
|
|
|
|
|
|
$
|
283,928
|
|
|
|
Fair value measurements as of December 31, 2017
|
||||||||||||||
Description
|
|
Quoted prices in
active markets (Level 1) |
|
Significant other
observable inputs (Level 2) |
|
Significant
unobservable inputs (Level 3) |
|
Total
|
||||||||
|
|
($ in thousands)
|
||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Debt instruments
|
|
$
|
—
|
|
|
$
|
6,300
|
|
|
$
|
880
|
|
|
$
|
7,180
|
|
Listed equity securities
|
|
1,181,150
|
|
|
22,522
|
|
|
—
|
|
|
1,203,672
|
|
||||
Commodities
|
|
121,502
|
|
|
—
|
|
|
—
|
|
|
121,502
|
|
||||
Private and unlisted equity securities
|
|
—
|
|
|
—
|
|
|
6,108
|
|
|
6,108
|
|
||||
|
|
$
|
1,302,652
|
|
|
$
|
28,822
|
|
|
$
|
6,988
|
|
|
$
|
1,338,462
|
|
Unlisted equity funds measured at net asset value
(1)
|
|
|
|
|
|
|
|
24,522
|
|
|||||||
Total investments
|
|
|
|
|
|
|
|
$
|
1,362,984
|
|
||||||
Financial contracts receivable
|
|
$
|
22
|
|
|
$
|
12,871
|
|
|
$
|
—
|
|
|
$
|
12,893
|
|
|
|
|
|
|
|
|
|
|
||||||||
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Listed equity securities, sold not yet purchased
|
|
$
|
(812,652
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(812,652
|
)
|
Debt instruments, sold not yet purchased
|
|
—
|
|
|
(100,145
|
)
|
|
—
|
|
|
(100,145
|
)
|
||||
Total securities sold, not yet purchased
|
|
$
|
(812,652
|
)
|
|
$
|
(100,145
|
)
|
|
$
|
—
|
|
|
$
|
(912,797
|
)
|
Financial contracts payable
|
|
$
|
—
|
|
|
$
|
(22,222
|
)
|
|
$
|
—
|
|
|
$
|
(22,222
|
)
|
|
|
Fair Value Measurements Using Significant Unobservable Inputs (Level 3)
|
||||||||||
|
|
Year ended December 31, 2018
|
||||||||||
|
|
Assets
|
||||||||||
|
|
Debt instruments
|
|
Private and unlisted equity securities
|
|
Total
|
||||||
|
|
($ in thousands)
|
||||||||||
Beginning balance
|
|
$
|
880
|
|
|
$
|
6,108
|
|
|
$
|
6,988
|
|
Sales
|
|
(916
|
)
|
|
(1,890
|
)
|
|
(2,806
|
)
|
|||
Total realized and unrealized gains (losses) and amortization included in earnings, net
|
|
36
|
|
|
(304
|
)
|
|
(268
|
)
|
|||
Transfers out of Level 3
|
|
—
|
|
|
(3,250
|
)
|
|
(3,250
|
)
|
|||
Ending balance
|
|
$
|
—
|
|
|
$
|
664
|
|
|
$
|
664
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
($ in thousands)
|
||||||
Cash at banks
|
|
$
|
7,295
|
|
|
$
|
27,239
|
|
Cash held with brokers
|
|
10,920
|
|
|
46
|
|
||
Total cash and cash equivalents
|
|
$
|
18,215
|
|
|
$
|
27,285
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
($ in thousands)
|
||||||
Cash held as collateral in trust accounts
|
|
$
|
463,361
|
|
|
$
|
377,932
|
|
Cash collateral relating to letters of credit issued
|
|
221,655
|
|
|
173,748
|
|
||
Cash held by prime brokers relating to securities sold, not yet purchased
|
|
—
|
|
|
912,796
|
|
||
Cash and cash equivalents held by swap counterparties
|
|
—
|
|
|
39,337
|
|
||
Total restricted cash and cash equivalents
|
|
$
|
685,016
|
|
|
$
|
1,503,813
|
|
|
|
2018
|
|
2017
|
||||
|
|
($ in thousands)
|
||||||
Case reserves
|
|
$
|
211,910
|
|
|
$
|
178,088
|
|
IBNR
|
|
270,752
|
|
|
286,292
|
|
||
Total
|
|
$
|
482,662
|
|
|
$
|
464,380
|
|
Consolidated
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Gross balance at January 1
|
|
$
|
464,380
|
|
|
$
|
306,641
|
|
|
$
|
305,997
|
|
Less: Losses recoverable
|
|
(29,459
|
)
|
|
(2,704
|
)
|
|
(3,368
|
)
|
|||
Net balance at January 1
|
|
434,921
|
|
|
303,937
|
|
|
302,629
|
|
|||
Incurred losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
363,871
|
|
|
466,247
|
|
|
345,303
|
|
|||
Prior years
|
|
2
|
|
|
36,157
|
|
|
35,512
|
|
|||
Total incurred
|
|
363,873
|
|
|
502,404
|
|
|
380,815
|
|
|||
Paid losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
(160,975
|
)
|
|
(220,298
|
)
|
|
(156,181
|
)
|
|||
Prior years
|
|
(197,097
|
)
|
|
(154,183
|
)
|
|
(216,489
|
)
|
|||
Total paid
|
|
(358,072
|
)
|
|
(374,481
|
)
|
|
(372,670
|
)
|
|||
Foreign currency revaluation
|
|
(1,765
|
)
|
|
3,061
|
|
|
(6,837
|
)
|
|||
Net balance at December 31
|
|
438,957
|
|
|
434,921
|
|
|
303,937
|
|
|||
Add: Losses recoverable
|
|
43,705
|
|
|
29,459
|
|
|
2,704
|
|
|||
Gross balance at December 31
|
|
$
|
482,662
|
|
|
$
|
464,380
|
|
|
$
|
306,641
|
|
Health
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Gross balance at January 1
|
|
$
|
22,181
|
|
|
$
|
18,993
|
|
|
$
|
21,533
|
|
Less: Losses recoverable
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net balance at January 1
|
|
22,181
|
|
|
18,993
|
|
|
21,533
|
|
|||
Incurred losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
56,868
|
|
|
44,539
|
|
|
38,726
|
|
|||
Prior years
|
|
1,508
|
|
|
3,739
|
|
|
(1,477
|
)
|
|||
Total incurred
|
|
58,376
|
|
|
48,278
|
|
|
37,249
|
|
|||
Paid losses related to:
|
|
|
|
|
|
|
||||||
Current year
|
|
(34,696
|
)
|
|
(23,814
|
)
|
|
(22,039
|
)
|
|||
Prior years
|
|
(21,359
|
)
|
|
(21,276
|
)
|
|
(17,750
|
)
|
|||
Total paid
|
|
(56,055
|
)
|
|
(45,090
|
)
|
|
(39,789
|
)
|
|||
Foreign currency revaluation
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Net balance at December 31
|
|
24,502
|
|
|
22,181
|
|
|
18,993
|
|
|||
Add: Losses recoverable
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Gross balance at December 31
|
|
$
|
24,502
|
|
|
$
|
22,181
|
|
|
$
|
18,993
|
|
•
|
$11.9 million
of adverse loss development on non-standard automobile contracts stemming from industry-wide issues affecting motor liability claims in Florida over accident years 2015 to 2017;
|
•
|
$3.8 million
of adverse loss development on solicitors professional indemnity contracts resulting primarily from prevalence of several large claims being reported on prior accident years;
|
•
|
$2.0 million
of adverse loss development on general liability contracts, spread over treaty years 2012-2017, resulting from deteriorations in claims experience; and
|
•
|
$1.8 million
of adverse loss development on surety contracts, net of retrocession recoveries, due to deterioration on several previously reported claims for one legacy contract.
|
•
|
$7.5 million
of favorable prior period experience on property contracts stemming primarily from accident years 2015 and 2016 where claims experience has been better than expected;
|
•
|
$5.9 million
of favorable loss development, net of retrocession recoveries, relating to 2017 hurricanes as a result of claims experience being better than initially estimated. The favorable loss development was partially offset by
$1.6 million
of return premiums relating to reinstatement premiums previously recorded; and
|
•
|
$4.1 million
of favorable loss development on prior period mortgage insurance contracts resulting from ongoing favorable claims experience across all prior accident years.
|
•
|
$10.7 million
of adverse loss development associated with various classes of professional liability exposure, driven by additional reporting on individual claims, as well as the Company’s assessment of industry wide loss ratio performance;
|
•
|
$4.3 million
of adverse loss development associated with motor contracts based on re-projection of ultimate losses using client reporting patterns;
|
•
|
$4.1 million
of adverse loss development relating to Florida homeowners’ insurance contracts, largely driven by “assignment of benefits” issues whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters;
|
•
|
$3.7 million
of adverse loss development associated with specialty health contracts arising from frequency of medical claims reported; and
|
•
|
$2.2 million
of adverse loss development due to large claims reported on a surety contract.
|
•
|
$19.0 million
of losses resulting from the loss portfolio transfer and subsequent novation of legacy construction defect liabilities;
|
•
|
$7.0 million
of adverse loss development relating to our Florida homeowners’ insurance contracts as a result of deterioration of sinkhole claims and an increase in the practice of “assignment of benefits” whereby homeowners assign their rights for filing and settling claims to attorneys and public adjusters;
|
•
|
$6.7 million
of adverse loss development relating to our private passenger motor contracts. While the loss indications are close to our expectations, the volume and frequency of unmerited suits served to the cedent by attorneys and medical clinics has resulted in an increase in loss adjustment expenses to defend such claims; and
|
•
|
$4.5 million
of adverse loss development on an excess of loss contract relating to losses resulting from the U.S. sub-prime crisis.
|
Health
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
24,939
|
|
$
|
23,889
|
|
$
|
23,327
|
|
$
|
23,355
|
|
$
|
23,356
|
|
$
|
23,356
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
—
|
|
2010
|
|
36,075
|
|
35,924
|
|
36,224
|
|
36,159
|
|
36,159
|
|
36,145
|
|
36,145
|
|
36,145
|
|
36,145
|
|
—
|
|
||||||||||||
2011
|
|
|
36,140
|
|
36,212
|
|
35,821
|
|
35,800
|
|
35,595
|
|
35,595
|
|
35,595
|
|
35,566
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
24,712
|
|
23,088
|
|
22,780
|
|
22,681
|
|
22,671
|
|
22,671
|
|
22,658
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
30,544
|
|
33,841
|
|
34,203
|
|
33,960
|
|
33,945
|
|
33,945
|
|
—
|
|
|||||||||||||||
2014
|
|
|
|
|
|
32,875
|
|
30,191
|
|
29,514
|
|
29,072
|
|
29,031
|
|
—
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
34,097
|
|
33,530
|
|
34,116
|
|
33,894
|
|
—
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
37,747
|
|
40,889
|
|
41,255
|
|
—
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
45,007
|
|
46,455
|
|
2,330
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
56,868
|
|
22,172
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
359,172
|
|
24,502
|
|
Health
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
8,626
|
|
$
|
23,030
|
|
$
|
23,327
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
23,356
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
23,355
|
|
$
|
23,355
|
|
2010
|
|
17,826
|
|
35,795
|
|
36,224
|
|
36,159
|
|
36,159
|
|
36,145
|
|
36,145
|
|
36,145
|
|
36,145
|
|
|||||||||||
2011
|
|
|
26,979
|
|
35,542
|
|
35,814
|
|
35,800
|
|
35,595
|
|
35,595
|
|
35,595
|
|
35,566
|
|
||||||||||||
2012
|
|
|
|
14,896
|
|
22,691
|
|
22,780
|
|
22,679
|
|
22,671
|
|
22,671
|
|
22,658
|
|
|||||||||||||
2013
|
|
|
|
|
21,459
|
|
33,841
|
|
34,024
|
|
33,957
|
|
33,945
|
|
33,945
|
|
||||||||||||||
2014
|
|
|
|
|
|
19,049
|
|
28,515
|
|
29,117
|
|
29,038
|
|
29,031
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
14,529
|
|
31,802
|
|
34,044
|
|
33,894
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
21,881
|
|
39,988
|
|
41,255
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
23,834
|
|
44,125
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
34,696
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
334,670
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Health)
|
|
$
|
24,502
|
|
Multiline
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
2010
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
2011
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
2014
|
|
|
|
|
|
2,390
|
|
2,390
|
|
2,390
|
|
2,609
|
|
2,625
|
|
1,539
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
27,900
|
|
28,040
|
|
30,461
|
|
31,957
|
|
15,925
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
55,635
|
|
59,882
|
|
60,588
|
|
33,635
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
81,612
|
|
79,253
|
|
51,999
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
58,537
|
|
50,430
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
232,960
|
|
$
|
153,528
|
|
Multiline
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
2010
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||
2011
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||
2012
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||
2013
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
||||||||||||||
2014
|
|
|
|
|
|
—
|
|
—
|
|
139
|
|
560
|
|
1,086
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
28
|
|
2,817
|
|
9,959
|
|
16,032
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
5,844
|
|
16,468
|
|
26,953
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
9,535
|
|
27,253
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
8,107
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
79,431
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Multiline)
|
|
$
|
153,528
|
|
General Liability
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
4,424
|
|
$
|
4,121
|
|
$
|
5,024
|
|
$
|
5,652
|
|
$
|
6,147
|
|
$
|
6,664
|
|
$
|
9,952
|
|
$
|
10,113
|
|
$
|
10,124
|
|
$
|
10,124
|
|
$
|
—
|
|
2010
|
|
12,110
|
|
14,327
|
|
17,484
|
|
19,649
|
|
21,664
|
|
25,946
|
|
28,251
|
|
28,251
|
|
28,251
|
|
—
|
|
||||||||||||
2011
|
|
|
20,925
|
|
30,693
|
|
40,756
|
|
44,897
|
|
61,446
|
|
77,105
|
|
77,105
|
|
77,105
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
12,626
|
|
18,133
|
|
16,921
|
|
29,554
|
|
31,145
|
|
31,161
|
|
31,274
|
|
384
|
|
||||||||||||||
2013
|
|
|
|
|
3,018
|
|
2,689
|
|
4,666
|
|
4,511
|
|
4,510
|
|
4,916
|
|
265
|
|
|||||||||||||||
2014
|
|
|
|
|
|
1,238
|
|
1,229
|
|
1,174
|
|
1,033
|
|
1,355
|
|
862
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
1,699
|
|
1,690
|
|
1,756
|
|
1,979
|
|
1,432
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
6,203
|
|
6,519
|
|
7,124
|
|
3,847
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
5,433
|
|
6,527
|
|
5,116
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
2,913
|
|
2,748
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
171,568
|
|
$
|
14,654
|
|
General Liability
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
400
|
|
$
|
1,284
|
|
$
|
2,255
|
|
$
|
3,715
|
|
$
|
4,529
|
|
$
|
5,519
|
|
$
|
5,957
|
|
$
|
10,105
|
|
$
|
10,124
|
|
$
|
10,124
|
|
2010
|
|
2,107
|
|
5,096
|
|
9,356
|
|
14,051
|
|
17,471
|
|
19,228
|
|
28,251
|
|
28,251
|
|
28,251
|
|
|||||||||||
2011
|
|
|
2,873
|
|
11,751
|
|
20,030
|
|
25,018
|
|
32,954
|
|
77,105
|
|
77,105
|
|
77,105
|
|
||||||||||||
2012
|
|
|
|
1,750
|
|
9,926
|
|
13,142
|
|
15,836
|
|
30,667
|
|
30,687
|
|
30,891
|
|
|||||||||||||
2013
|
|
|
|
|
1,371
|
|
1,917
|
|
2,298
|
|
4,191
|
|
4,274
|
|
4,652
|
|
||||||||||||||
2014
|
|
|
|
|
|
18
|
|
146
|
|
413
|
|
548
|
|
492
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
69
|
|
293
|
|
532
|
|
548
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
122
|
|
1,589
|
|
3,277
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
136
|
|
1,412
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
165
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
156,917
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (General Liability)
|
|
$
|
14,654
|
|
Motor Casualty
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
56,960
|
|
$
|
68,194
|
|
$
|
77,373
|
|
$
|
85,241
|
|
$
|
80,756
|
|
$
|
81,537
|
|
$
|
83,270
|
|
$
|
82,569
|
|
$
|
82,609
|
|
$
|
82,615
|
|
$
|
—
|
|
2010
|
|
64,264
|
|
74,260
|
|
86,881
|
|
83,496
|
|
84,742
|
|
88,377
|
|
88,022
|
|
88,008
|
|
88,012
|
|
—
|
|
||||||||||||
2011
|
|
|
53,035
|
|
57,498
|
|
57,342
|
|
62,921
|
|
70,880
|
|
70,435
|
|
70,495
|
|
70,495
|
|
62
|
|
|||||||||||||
2012
|
|
|
|
132,284
|
|
131,196
|
|
131,896
|
|
131,202
|
|
131,305
|
|
131,302
|
|
131,302
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
182,833
|
|
179,930
|
|
174,744
|
|
174,782
|
|
174,848
|
|
174,925
|
|
—
|
|
|||||||||||||||
2014
|
|
|
|
|
|
93,718
|
|
92,844
|
|
94,688
|
|
94,385
|
|
94,147
|
|
—
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
128,199
|
|
130,410
|
|
129,991
|
|
132,853
|
|
3,282
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
166,389
|
|
169,294
|
|
174,037
|
|
3,380
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
187,109
|
|
188,754
|
|
18,597
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
150,700
|
|
67,048
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
1,287,840
|
|
$
|
92,369
|
|
Motor Casualty
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
20,779
|
|
$
|
47,225
|
|
$
|
61,955
|
|
$
|
72,168
|
|
$
|
76,020
|
|
$
|
79,058
|
|
$
|
80,235
|
|
$
|
82,569
|
|
$
|
82,609
|
|
$
|
82,615
|
|
2010
|
|
23,413
|
|
44,889
|
|
60,630
|
|
70,356
|
|
79,089
|
|
82,266
|
|
88,008
|
|
88,008
|
|
88,012
|
|
|||||||||||
2011
|
|
|
19,082
|
|
36,462
|
|
49,569
|
|
58,244
|
|
65,018
|
|
70,433
|
|
70,433
|
|
70,433
|
|
||||||||||||
2012
|
|
|
|
58,585
|
|
118,142
|
|
126,622
|
|
128,913
|
|
131,302
|
|
131,302
|
|
131,302
|
|
|||||||||||||
2013
|
|
|
|
|
86,558
|
|
159,200
|
|
171,855
|
|
174,658
|
|
174,848
|
|
174,925
|
|
||||||||||||||
2014
|
|
|
|
|
|
49,994
|
|
86,297
|
|
89,687
|
|
94,385
|
|
94,147
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
81,093
|
|
125,645
|
|
129,174
|
|
129,571
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
97,325
|
|
157,948
|
|
170,658
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
115,204
|
|
170,157
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
83,652
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
1,195,472
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Casualty)
|
|
$
|
92,369
|
|
Motor Property
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
2010
|
|
560
|
|
656
|
|
671
|
|
684
|
|
662
|
|
662
|
|
667
|
|
667
|
|
667
|
|
—
|
|
||||||||||||
2011
|
|
|
3,276
|
|
3,271
|
|
3,343
|
|
3,285
|
|
3,285
|
|
3,306
|
|
3,306
|
|
3,306
|
|
3
|
|
|||||||||||||
2012
|
|
|
|
36,985
|
|
36,129
|
|
36,008
|
|
35,998
|
|
35,922
|
|
35,922
|
|
35,922
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
46,189
|
|
45,629
|
|
44,728
|
|
44,656
|
|
44,695
|
|
44,719
|
|
244
|
|
|||||||||||||||
2014
|
|
|
|
|
|
18,870
|
|
18,797
|
|
19,056
|
|
19,000
|
|
19,006
|
|
19
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
22,035
|
|
22,516
|
|
22,505
|
|
23,263
|
|
668
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
27,853
|
|
28,279
|
|
29,090
|
|
481
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
39,986
|
|
39,621
|
|
2,563
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
42,336
|
|
18,760
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
237,930
|
|
$
|
22,738
|
|
Motor Property
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
2010
|
|
560
|
|
620
|
|
620
|
|
620
|
|
620
|
|
644
|
|
667
|
|
667
|
|
667
|
|
|||||||||||
2011
|
|
|
1,418
|
|
2,944
|
|
3,305
|
|
3,285
|
|
3,285
|
|
3,303
|
|
3,303
|
|
3,303
|
|
||||||||||||
2012
|
|
|
|
16,902
|
|
34,588
|
|
35,854
|
|
35,903
|
|
35,922
|
|
35,922
|
|
35,922
|
|
|||||||||||||
2013
|
|
|
|
|
21,112
|
|
41,066
|
|
44,363
|
|
44,431
|
|
44,476
|
|
44,476
|
|
||||||||||||||
2014
|
|
|
|
|
|
10,305
|
|
17,621
|
|
18,420
|
|
18,981
|
|
18,987
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
13,859
|
|
22,013
|
|
22,505
|
|
22,595
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
16,725
|
|
27,023
|
|
28,609
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
23,091
|
|
37,058
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
23,576
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
215,192
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Motor Property)
|
|
$
|
22,738
|
|
Other
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
429
|
|
$
|
611
|
|
$
|
547
|
|
$
|
589
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
—
|
|
2010
|
|
4,008
|
|
3,858
|
|
4,291
|
|
4,130
|
|
4,130
|
|
4,130
|
|
3,955
|
|
4,130
|
|
3,955
|
|
—
|
|
||||||||||||
2011
|
|
|
7,341
|
|
8,014
|
|
7,525
|
|
7,473
|
|
7,470
|
|
7,468
|
|
7,468
|
|
7,468
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
4,090
|
|
3,591
|
|
3,756
|
|
3,773
|
|
3,759
|
|
3,755
|
|
3,782
|
|
47
|
|
||||||||||||||
2013
|
|
|
|
|
2,492
|
|
2,875
|
|
2,840
|
|
2,821
|
|
2,801
|
|
2,755
|
|
177
|
|
|||||||||||||||
2014
|
|
|
|
|
|
4,768
|
|
3,525
|
|
1,776
|
|
1,701
|
|
1,084
|
|
—
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
4,794
|
|
6,769
|
|
6,898
|
|
4,519
|
|
1,119
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
8,356
|
|
10,396
|
|
9,137
|
|
3,495
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
9,080
|
|
6,004
|
|
2,922
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
6,164
|
|
5,202
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
45,448
|
|
$
|
12,962
|
|
Other
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
151
|
|
$
|
249
|
|
$
|
547
|
|
$
|
589
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
$
|
580
|
|
2010
|
|
864
|
|
1,593
|
|
3,123
|
|
3,130
|
|
3,406
|
|
3,477
|
|
3,955
|
|
3,955
|
|
3,955
|
|
|||||||||||
2011
|
|
|
1,162
|
|
7,544
|
|
7,513
|
|
7,468
|
|
7,468
|
|
7,468
|
|
7,468
|
|
7,468
|
|
||||||||||||
2012
|
|
|
|
3,005
|
|
3,251
|
|
3,676
|
|
3,683
|
|
3,684
|
|
3,688
|
|
3,735
|
|
|||||||||||||
2013
|
|
|
|
|
213
|
|
1,828
|
|
2,426
|
|
2,339
|
|
2,323
|
|
2,578
|
|
||||||||||||||
2014
|
|
|
|
|
|
197
|
|
659
|
|
1,124
|
|
1,282
|
|
1,084
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
472
|
|
1,387
|
|
2,010
|
|
3,400
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
1,472
|
|
3,105
|
|
5,642
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
483
|
|
3,082
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
962
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
32,486
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Other)
|
|
$
|
12,962
|
|
Property
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
18,501
|
|
$
|
17,340
|
|
$
|
16,565
|
|
$
|
15,924
|
|
$
|
15,449
|
|
$
|
15,275
|
|
$
|
11,875
|
|
$
|
11,852
|
|
$
|
11,829
|
|
$
|
11,757
|
|
$
|
—
|
|
2010
|
|
39,106
|
|
41,983
|
|
51,698
|
|
51,483
|
|
52,263
|
|
52,507
|
|
53,723
|
|
53,574
|
|
53,495
|
|
—
|
|
||||||||||||
2011
|
|
|
73,309
|
|
83,261
|
|
79,794
|
|
80,402
|
|
81,894
|
|
83,012
|
|
83,067
|
|
83,006
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
63,961
|
|
50,183
|
|
50,874
|
|
52,812
|
|
53,218
|
|
53,473
|
|
53,737
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
60,949
|
|
58,992
|
|
61,776
|
|
62,495
|
|
62,482
|
|
62,422
|
|
435
|
|
|||||||||||||||
2014
|
|
|
|
|
|
41,736
|
|
45,150
|
|
46,842
|
|
47,082
|
|
46,871
|
|
573
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
27,861
|
|
30,344
|
|
31,744
|
|
30,946
|
|
1,137
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
25,626
|
|
26,101
|
|
23,977
|
|
2,962
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
84,747
|
|
78,405
|
|
22,024
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
28,211
|
|
22,848
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
472,827
|
|
$
|
49,979
|
|
Property
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
4,421
|
|
$
|
10,602
|
|
$
|
11,378
|
|
$
|
11,674
|
|
$
|
11,780
|
|
$
|
11,840
|
|
$
|
11,805
|
|
$
|
11,826
|
|
$
|
11,810
|
|
$
|
11,757
|
|
2010
|
|
20,611
|
|
40,858
|
|
42,697
|
|
43,406
|
|
47,914
|
|
48,438
|
|
53,408
|
|
53,542
|
|
53,495
|
|
|||||||||||
2011
|
|
|
49,441
|
|
74,383
|
|
77,182
|
|
79,022
|
|
81,214
|
|
82,370
|
|
82,655
|
|
83,006
|
|
||||||||||||
2012
|
|
|
|
32,085
|
|
45,887
|
|
50,242
|
|
52,657
|
|
53,211
|
|
53,259
|
|
53,737
|
|
|||||||||||||
2013
|
|
|
|
|
34,807
|
|
55,668
|
|
58,525
|
|
60,344
|
|
61,074
|
|
61,987
|
|
||||||||||||||
2014
|
|
|
|
|
|
20,230
|
|
40,171
|
|
43,637
|
|
45,208
|
|
46,298
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
12,939
|
|
25,451
|
|
28,842
|
|
29,809
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
9,941
|
|
18,181
|
|
21,016
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
43,271
|
|
56,380
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
5,363
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
422,848
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Property)
|
|
$
|
49,979
|
|
Professional Liability
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
8,484
|
|
$
|
6,310
|
|
$
|
6,293
|
|
$
|
6,293
|
|
$
|
6,592
|
|
$
|
6,592
|
|
$
|
6,771
|
|
$
|
6,771
|
|
$
|
6,831
|
|
$
|
6,831
|
|
$
|
1,905
|
|
2010
|
|
3,828
|
|
3,296
|
|
3,526
|
|
3,663
|
|
3,850
|
|
3,878
|
|
3,864
|
|
3,864
|
|
3,864
|
|
424
|
|
||||||||||||
2011
|
|
|
5,818
|
|
6,654
|
|
7,093
|
|
7,764
|
|
7,819
|
|
7,654
|
|
7,892
|
|
7,892
|
|
352
|
|
|||||||||||||
2012
|
|
|
|
10,818
|
|
10,823
|
|
11,347
|
|
11,767
|
|
11,949
|
|
12,643
|
|
12,643
|
|
1,140
|
|
||||||||||||||
2013
|
|
|
|
|
11,973
|
|
12,824
|
|
14,292
|
|
15,881
|
|
16,671
|
|
16,838
|
|
2,528
|
|
|||||||||||||||
2014
|
|
|
|
|
|
18,515
|
|
17,938
|
|
17,902
|
|
20,363
|
|
21,328
|
|
5,492
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
18,127
|
|
18,117
|
|
20,628
|
|
21,989
|
|
10,397
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
13,630
|
|
16,773
|
|
17,126
|
|
12,309
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
10,220
|
|
9,908
|
|
8,477
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
4,477
|
|
4,236
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
122,896
|
|
$
|
47,260
|
|
Professional Liability
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
|
$
|
92
|
|
$
|
128
|
|
$
|
128
|
|
$
|
383
|
|
$
|
383
|
|
$
|
649
|
|
$
|
4,926
|
|
2010
|
|
—
|
|
33
|
|
388
|
|
805
|
|
1,073
|
|
1,429
|
|
1,566
|
|
1,684
|
|
3,440
|
|
|||||||||||
2011
|
|
|
106
|
|
1,282
|
|
3,543
|
|
5,049
|
|
6,336
|
|
7,014
|
|
7,491
|
|
7,539
|
|
||||||||||||
2012
|
|
|
|
513
|
|
3,532
|
|
6,155
|
|
8,507
|
|
9,886
|
|
11,342
|
|
11,503
|
|
|||||||||||||
2013
|
|
|
|
|
684
|
|
3,352
|
|
7,482
|
|
10,760
|
|
13,568
|
|
14,310
|
|
||||||||||||||
2014
|
|
|
|
|
|
1,319
|
|
5,238
|
|
9,354
|
|
13,646
|
|
15,836
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
1,142
|
|
3,227
|
|
8,725
|
|
11,592
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
334
|
|
2,140
|
|
4,817
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
225
|
|
1,431
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
241
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
75,635
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
558
|
|
|||||||||||||||||||||||
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Professional Liability)
|
|
$
|
47,817
|
|
Workers' Compensation
|
|||||||||||||||||||||||||||||||||
|
Incurred claims and allocated claim adjustment expenses, net of reinsurance
|
December 31, 2018
|
|||||||||||||||||||||||||||||||
|
For the years ended December 31,
|
Total IBNR plus expected development on reported claims
|
|||||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
|||||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
|
||||||||||||||||||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||||||||
2009
|
$
|
10,063
|
|
$
|
10,292
|
|
$
|
9,938
|
|
$
|
10,076
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
—
|
|
2010
|
|
11,181
|
|
11,736
|
|
12,426
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
—
|
|
||||||||||||
2011
|
|
|
14,915
|
|
15,233
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
—
|
|
|||||||||||||
2012
|
|
|
|
11,763
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
—
|
|
||||||||||||||
2013
|
|
|
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
—
|
|
|||||||||||||||
2014
|
|
|
|
|
|
—
|
|
—
|
|
—
|
|
3
|
|
—
|
|
—
|
|
||||||||||||||||
2015
|
|
|
|
|
|
|
1,014
|
|
1,010
|
|
948
|
|
950
|
|
263
|
|
|||||||||||||||||
2016
|
|
|
|
|
|
|
|
4,342
|
|
4,275
|
|
4,266
|
|
1,484
|
|
||||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
10,884
|
|
10,348
|
|
4,992
|
|
|||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
13,616
|
|
9,403
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
$
|
86,330
|
|
$
|
16,142
|
|
Workers' Compensation
|
||||||||||||||||||||||||||||||
|
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
|
|||||||||||||||||||||||||||||
|
For the years ended December 31,
|
|||||||||||||||||||||||||||||
Accident year
|
2009
|
2010
|
2011
|
2012
|
2013
|
2014
|
2015
|
2016
|
2017
|
2018
|
||||||||||||||||||||
|
(Unaudited - Supplementary Information)
|
|
||||||||||||||||||||||||||||
|
($ in thousands)
|
|||||||||||||||||||||||||||||
2009
|
$
|
1,043
|
|
$
|
4,995
|
|
$
|
7,833
|
|
$
|
9,893
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
$
|
10,217
|
|
2010
|
|
3,184
|
|
8,170
|
|
12,270
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
13,108
|
|
|||||||||||
2011
|
|
|
5,004
|
|
11,175
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
16,861
|
|
||||||||||||
2012
|
|
|
|
2,359
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
12,213
|
|
|||||||||||||
2013
|
|
|
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
4,751
|
|
||||||||||||||
2014
|
|
|
|
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
|||||||||||||||
2015
|
|
|
|
|
|
|
28
|
|
251
|
|
564
|
|
688
|
|
||||||||||||||||
2016
|
|
|
|
|
|
|
|
613
|
|
1,920
|
|
2,782
|
|
|||||||||||||||||
2017
|
|
|
|
|
|
|
|
|
2,028
|
|
5,356
|
|
||||||||||||||||||
2018
|
|
|
|
|
|
|
|
|
|
4,213
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
Total
|
|
70,189
|
|
||||||||||||||||||
|
|
|
|
All outstanding liabilities before 2009, net of reinsurance
|
|
—
|
|
|||||||||||||||||||||||
|
Liabilities for claims and claims adjustment expenses, net of reinsurance (Workers' Compensation)
|
|
$
|
16,142
|
|
|
|
December 31, 2018
|
||
|
|
($ in thousands)
|
||
Net outstanding liabilities
|
|
|
||
Health
|
|
$
|
24,502
|
|
Multiline
|
|
153,528
|
|
|
General Liability
|
|
14,654
|
|
|
Motor Casualty
|
|
92,369
|
|
|
Motor Property
|
|
22,738
|
|
|
Other
|
|
12,962
|
|
|
Property
|
|
49,979
|
|
|
Professional Liability
|
|
47,817
|
|
|
Workers' Compensation
|
|
16,142
|
|
|
Liabilities for claims and claims adjustment expenses, net of reinsurance
|
|
434,691
|
|
|
Add: Reinsurance recoverable on unpaid claims
|
|
43,705
|
|
|
Add: Unallocated claims adjustment expenses
|
|
4,266
|
|
|
Total gross liabilities for unpaid claims and claim adjustment expense
|
|
$
|
482,662
|
|
Years
|
1
|
2
|
3
|
4
|
5
|
6
|
7
|
8
|
9
|
10
|
||||||||||
|
(Unaudited - Supplementary Information)
|
|||||||||||||||||||
Multiline
|
5.4
|
%
|
11.0
|
%
|
15.2
|
%
|
20.3
|
%
|
20.8
|
%
|
18.2
|
%
|
9.1
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
General Liability
|
4.7
|
%
|
13.1
|
%
|
12.3
|
%
|
11.8
|
%
|
18.8
|
%
|
29.3
|
%
|
6.0
|
%
|
3.2
|
%
|
0.8
|
%
|
—
|
%
|
Motor Casualty
|
44.9
|
%
|
32.6
|
%
|
8.7
|
%
|
5.2
|
%
|
3.5
|
%
|
2.1
|
%
|
1.9
|
%
|
1.1
|
%
|
—
|
%
|
—
|
%
|
Motor Property
|
53.5
|
%
|
40.7
|
%
|
5.0
|
%
|
0.6
|
%
|
0.1
|
%
|
0.1
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
Other
|
25.9
|
%
|
39.4
|
%
|
18.5
|
%
|
5.3
|
%
|
4.5
|
%
|
3.7
|
%
|
2.7
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
Property
|
51.9
|
%
|
32.5
|
%
|
6.3
|
%
|
2.6
|
%
|
2.8
|
%
|
1.0
|
%
|
2.6
|
%
|
0.3
|
%
|
—
|
%
|
—
|
%
|
Professional Liability
|
4.2
|
%
|
15.6
|
%
|
23.2
|
%
|
19.0
|
%
|
14.2
|
%
|
8.1
|
%
|
3.9
|
%
|
2.2
|
%
|
2.3
|
%
|
2.3
|
%
|
Workers' Compensation
|
27.0
|
%
|
43.2
|
%
|
22.8
|
%
|
5.7
|
%
|
0.8
|
%
|
0.5
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
—
|
%
|
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||
|
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
|
Class A
|
|
Class B
|
||||||
Balance – beginning of year
|
|
31,104,830
|
|
|
6,254,715
|
|
|
31,111,432
|
|
|
6,254,895
|
|
|
30,772,572
|
|
|
6,254,895
|
|
Issue of ordinary shares, net of forfeitures
|
|
205,384
|
|
|
—
|
|
|
129,530
|
|
|
—
|
|
|
338,860
|
|
|
—
|
|
Repurchase of ordinary shares
|
|
(1,180,000
|
)
|
|
—
|
|
|
(136,312
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
Class B shares converted to Class A shares
|
|
—
|
|
|
—
|
|
|
180
|
|
|
(180
|
)
|
|
—
|
|
|
—
|
|
Balance – end of year
|
|
30,130,214
|
|
|
6,254,715
|
|
|
31,104,830
|
|
|
6,254,715
|
|
|
31,111,432
|
|
|
6,254,895
|
|
|
|
Number of
non-vested restricted shares |
|
Weighted
average grant date fair value |
|||
Balance at December 31, 2016
|
|
365,432
|
|
|
$
|
26.76
|
|
Granted
|
|
166,767
|
|
|
21.60
|
|
|
Vested
|
|
(153,746
|
)
|
|
28.97
|
|
|
Forfeited
|
|
(46,943
|
)
|
|
24.57
|
|
|
Balance at December 31, 2017
|
|
331,510
|
|
|
23.45
|
|
|
Granted
|
|
245,975
|
|
|
15.78
|
|
|
Vested
|
|
(100,384
|
)
|
|
27.74
|
|
|
Forfeited
|
|
(44,644
|
)
|
|
18.77
|
|
|
Balance at December 31, 2018
|
|
432,457
|
|
|
$
|
18.58
|
|
|
|
2018
|
|
2017
|
|
2016
|
|||
Risk free rate
|
|
—
|
%
|
|
2.32
|
%
|
|
1.54
|
%
|
Estimated volatility
|
|
—
|
%
|
|
31.4
|
%
|
|
32.4
|
%
|
Expected term (in years)
|
|
0
|
|
|
10
|
|
|
10
|
|
Dividend yield
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Forfeiture rate
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
Number of
options
|
|
Weighted
average
exercise
price
|
|
Weighted
average
grant date
fair value
|
|
Intrinsic value
($ in millions)
|
|
Weighted average remaining contractual term
|
|||||||
Balance at December 31, 2015
|
906,991
|
|
|
$
|
19.78
|
|
|
$
|
8.53
|
|
|
$
|
2.6
|
|
|
2.9 years
|
Granted
|
57,386
|
|
|
19.87
|
|
|
8.71
|
|
|
|
|
|
||||
Exercised
|
(421,000
|
)
|
|
12.53
|
|
|
6.44
|
|
|
3.1
|
|
|
|
|||
Balance at December 31, 2016
|
543,377
|
|
|
25.40
|
|
|
10.17
|
|
|
0.5
|
|
|
4.7 years
|
|||
Granted
|
522,250
|
|
|
21.25
|
|
|
9.63
|
|
|
|
|
|
||||
Exercised
|
(50,000
|
)
|
|
19.60
|
|
|
10.18
|
|
|
0.1
|
|
|
|
|||
Balance at December 31, 2017
|
1,015,627
|
|
|
23.55
|
|
|
9.89
|
|
|
—
|
|
|
6.9 years
|
|||
Expired
|
(80,000
|
)
|
|
29.39
|
|
|
8.69
|
|
|
|
|
|
||||
Balance at December 31, 2018
|
935,627
|
|
|
$
|
23.05
|
|
|
$
|
10.00
|
|
|
$
|
—
|
|
|
6.4 years
|
|
December 31, 2018
|
|
December 31, 2017
|
|
December 31, 2016
|
||||||
Number of options exercisable
|
535,627
|
|
|
535,627
|
|
|
472,042
|
|
|||
Weighted average exercise price
|
$
|
24.43
|
|
|
$
|
25.66
|
|
|
$
|
25.73
|
|
Weighted average remaining contractual term
|
4.9
|
|
|
4.6
|
|
|
4.1
|
|
|||
Intrinsic value ($ in millions)
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
|
Number of
non-vested RSUs |
|
Weighted
average grant date fair value |
|||
Balance at December 31, 2016
|
|
15,934
|
|
|
$
|
27.52
|
|
Granted
|
|
11,559
|
|
|
21.65
|
|
|
Vested
|
|
(4,695
|
)
|
|
32.60
|
|
|
Balance at December 31, 2017
|
|
22,798
|
|
|
23.50
|
|
|
Granted
|
|
28,301
|
|
|
15.90
|
|
|
Vested
|
|
(4,053
|
)
|
|
32.21
|
|
|
Forfeited
|
|
(648
|
)
|
|
21.65
|
|
|
Balance at December 31, 2018
|
|
46,398
|
|
|
$
|
18.13
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Realized gains (losses)
|
|
$
|
(236,887
|
)
|
|
$
|
87,618
|
|
|
$
|
(113,836
|
)
|
Change in unrealized gains and losses
|
|
(32,597
|
)
|
|
(41,444
|
)
|
|
209,993
|
|
|||
Investment related foreign exchange gains (losses)
|
|
938
|
|
|
(7,653
|
)
|
|
2,988
|
|
|||
Interest and dividend income, net of withholding taxes
|
|
35,468
|
|
|
25,510
|
|
|
23,915
|
|
|||
Interest, dividend and other expenses
|
|
(17,987
|
)
|
|
(23,937
|
)
|
|
(22,334
|
)
|
|||
Investment advisor compensation on joint venture
|
|
(11,221
|
)
|
|
(19,863
|
)
|
|
(24,543
|
)
|
|||
Income (loss) from equity method investment
|
|
(247
|
)
|
|
—
|
|
|
—
|
|
|||
Net investment income (loss)
|
|
$
|
(262,533
|
)
|
|
$
|
20,231
|
|
|
$
|
76,183
|
|
Income (loss) from investments in related party investment fund
|
|
$
|
(60,573
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
Total investment related income (loss)
|
|
$
|
(323,106
|
)
|
|
$
|
20,231
|
|
|
$
|
76,183
|
|
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Current tax (expense) benefit
|
|
$
|
1,840
|
|
|
$
|
465
|
|
|
$
|
(492
|
)
|
Deferred tax (expense) benefit
|
|
(4
|
)
|
|
(14
|
)
|
|
(17
|
)
|
|||
Increase in deferred tax valuation allowance
|
|
(2,168
|
)
|
|
—
|
|
|
—
|
|
|||
Income tax (expense) benefit
|
|
$
|
(332
|
)
|
|
$
|
451
|
|
|
$
|
(509
|
)
|
|
|
Redeemable non-controlling interest in related party joint venture
|
|
Non-controlling interest in related party joint venture
|
|
Total non-controlling interest in related party joint venture
|
||||||||||||||||||||||||||||||||
|
|
Year ended December 31
|
|
Year ended December 31
|
|
Year ended December 31
|
||||||||||||||||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
|
2018
|
|
2017
|
|
2016
|
||||||||||||||||||||
Opening balance
|
|
$
|
7,169
|
|
|
$
|
5,884
|
|
|
$
|
12,265
|
|
—
|
|
$
|
12,933
|
|
|
$
|
11,561
|
|
|
$
|
11,118
|
|
—
|
|
$
|
20,102
|
|
|
$
|
17,445
|
|
|
$
|
23,383
|
|
Income (loss) attributed to non-controlling interest
|
|
(2,680
|
)
|
|
201
|
|
|
1,375
|
|
—
|
|
(1,595
|
)
|
|
378
|
|
|
443
|
|
—
|
|
(4,275
|
)
|
|
578
|
|
|
1,818
|
|
|||||||||
Net contribution into (withdrawal from) non-controlling interest
|
|
(2,797
|
)
|
|
1,084
|
|
|
(7,756
|
)
|
—
|
|
(10,853
|
)
|
|
994
|
|
|
—
|
|
—
|
|
(13,650
|
)
|
|
2,079
|
|
|
(7,756
|
)
|
|||||||||
Ending balance
|
|
$
|
1,692
|
|
|
$
|
7,169
|
|
|
$
|
5,884
|
|
|
$
|
485
|
|
|
$
|
12,933
|
|
|
$
|
11,561
|
|
|
$
|
2,177
|
|
|
$
|
20,102
|
|
|
$
|
17,445
|
|
|
|
Facility
|
|
Termination Date
|
|
Notice period required for termination
|
||
|
|
($ in thousands)
|
|
|
|
|
||
Butterfield Bank (Cayman) Limited
|
|
14,900
|
|
|
June 30, 2019
|
|
90 days prior to termination date
|
|
Citibank Europe plc
|
|
400,000
|
|
|
October 11, 2019
|
|
120 days prior to termination date
|
|
|
|
$
|
414,900
|
|
|
|
|
|
|
2019
|
|
2020
|
|
2021
|
|
2022
|
|
2023
|
|
Thereafter
|
|
Total
|
||||||||||||||
|
($ in thousands)
|
||||||||||||||||||||||||||
Operating lease obligations
|
$
|
169
|
|
|
$
|
169
|
|
|
$
|
63
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
401
|
|
Interest and convertible note payable
|
4,000
|
|
|
4,000
|
|
|
4,000
|
|
|
4,000
|
|
|
102,400
|
|
|
—
|
|
|
118,400
|
|
|||||||
Loan facility
|
5,750
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
5,750
|
|
|||||||
|
$
|
9,919
|
|
|
$
|
4,169
|
|
|
$
|
4,063
|
|
|
$
|
4,000
|
|
|
$
|
102,400
|
|
|
$
|
—
|
|
|
$
|
124,551
|
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Guy Carpenter
|
|
$
|
376,696
|
|
|
66.4
|
%
|
|
$
|
366,390
|
|
|
52.9
|
%
|
|
$
|
274,816
|
|
|
51.3
|
%
|
Aon Benfield
|
|
70,554
|
|
|
12.4
|
|
|
125,320
|
|
|
18.1
|
|
|
104,684
|
|
|
19.5
|
|
|||
|
|
$
|
447,250
|
|
|
78.8
|
%
|
|
$
|
491,710
|
|
|
71.0
|
%
|
|
$
|
379,500
|
|
|
70.8
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Commercial
|
|
$
|
10,487
|
|
|
1.8
|
%
|
|
$
|
12,256
|
|
|
1.8
|
%
|
|
$
|
9,419
|
|
|
1.8
|
%
|
Motor
|
|
76,425
|
|
|
13.5
|
|
|
71,188
|
|
|
10.2
|
|
|
38,428
|
|
|
7.2
|
|
|||
Personal
|
|
14,118
|
|
|
2.5
|
|
|
49,491
|
|
|
7.2
|
|
|
46,327
|
|
|
8.6
|
|
|||
Total Property
|
|
101,030
|
|
|
17.8
|
|
|
132,935
|
|
|
19.2
|
|
|
94,174
|
|
|
17.6
|
|
|||
Casualty
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
General Liability
|
|
1,429
|
|
|
0.3
|
|
|
4,753
|
|
|
0.7
|
|
|
11,746
|
|
|
2.2
|
|
|||
Motor Liability
|
|
291,690
|
|
|
51.4
|
|
|
281,551
|
|
|
40.6
|
|
|
223,620
|
|
|
41.7
|
|
|||
Professional Liability
|
|
3,068
|
|
|
0.5
|
|
|
8,703
|
|
|
1.3
|
|
|
11,036
|
|
|
2.1
|
|
|||
Workers' Compensation
|
|
24,101
|
|
|
4.3
|
|
|
24,803
|
|
|
3.6
|
|
|
8,743
|
|
|
1.6
|
|
|||
Multi-line *
|
|
57,497
|
|
|
10.1
|
|
|
123,340
|
|
|
17.8
|
|
|
95,055
|
|
|
17.7
|
|
|||
Total Casualty
|
|
377,785
|
|
|
66.6
|
|
|
443,150
|
|
|
64.0
|
|
|
350,200
|
|
|
65.3
|
|
|||
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Accident & Health
|
|
69,605
|
|
|
12.2
|
|
|
66,800
|
|
|
9.6
|
|
|
52,114
|
|
|
9.6
|
|
|||
Financial
|
|
16,611
|
|
|
2.9
|
|
|
48,380
|
|
|
7.0
|
|
|
34,034
|
|
|
6.4
|
|
|||
Marine
|
|
394
|
|
|
0.1
|
|
|
—
|
|
|
—
|
|
|
1,496
|
|
|
0.3
|
|
|||
Other Specialty
|
|
2,106
|
|
|
0.4
|
|
|
1,386
|
|
|
0.2
|
|
|
4,054
|
|
|
0.8
|
|
|||
Total Other
|
|
88,716
|
|
|
15.6
|
|
|
116,566
|
|
|
16.8
|
|
|
91,698
|
|
|
17.1
|
|
|||
|
|
$
|
567,531
|
|
|
100.0
|
%
|
|
$
|
692,651
|
|
|
100.0
|
%
|
|
$
|
536,072
|
|
|
100.0
|
%
|
|
|
Year ended December 31
|
|||||||||||||||||||
|
|
2018
|
|
2017
|
|
2016
|
|||||||||||||||
|
|
($ in thousands)
|
|||||||||||||||||||
U.S. and Caribbean
|
|
$
|
507,705
|
|
|
89.5
|
%
|
|
$
|
606,510
|
|
|
87.6
|
%
|
|
$
|
432,144
|
|
|
80.6
|
%
|
Worldwide
(1)
|
|
59,366
|
|
|
10.5
|
|
|
86,714
|
|
|
12.5
|
|
|
97,810
|
|
|
18.2
|
|
|||
Europe
(2)
|
|
506
|
|
|
—
|
|
|
(612
|
)
|
|
(0.1
|
)
|
|
6,250
|
|
|
1.2
|
|
|||
Asia
(2)
|
|
(46
|
)
|
|
—
|
|
|
39
|
|
|
—
|
|
|
(132
|
)
|
|
—
|
|
|||
|
|
$
|
567,531
|
|
|
100.0
|
%
|
|
$
|
692,651
|
|
|
100.0
|
%
|
|
$
|
536,072
|
|
|
100.0
|
%
|
|
|
2018
|
||||||||||||||
|
|
Quarter ended
|
||||||||||||||
|
|
March 31 |
|
June 30 |
|
September 30 |
|
December 31 |
||||||||
|
|
($ in thousands, except per share amounts)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Gross premiums written
|
|
$
|
175,125
|
|
|
$
|
142,109
|
|
|
$
|
115,154
|
|
|
$
|
135,143
|
|
Gross premiums ceded
|
|
(29,843
|
)
|
|
(27,237
|
)
|
|
(15,456
|
)
|
|
(30,252
|
)
|
||||
Net premiums written
|
|
145,282
|
|
|
114,872
|
|
|
99,698
|
|
|
104,891
|
|
||||
Change in net unearned premium reserves
|
|
562
|
|
|
13,944
|
|
|
14,406
|
|
|
14,708
|
|
||||
Net premiums earned
|
|
145,844
|
|
|
128,816
|
|
|
114,104
|
|
|
119,599
|
|
||||
Income (loss) from investment in related party investment fund
|
|
—
|
|
|
—
|
|
|
(10,025
|
)
|
|
(50,548
|
)
|
||||
Net investment income (loss)
|
|
(145,216
|
)
|
|
(40,656
|
)
|
|
(70,851
|
)
|
|
(5,810
|
)
|
||||
Other income (expense), net
|
|
(487
|
)
|
|
(76
|
)
|
|
(683
|
)
|
|
(982
|
)
|
||||
Total revenues
|
|
141
|
|
|
88,084
|
|
|
32,545
|
|
|
62,259
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Loss and loss adjustment expenses incurred, net
|
|
95,824
|
|
|
84,815
|
|
|
86,780
|
|
|
96,454
|
|
||||
Acquisition costs, net
|
|
44,209
|
|
|
34,623
|
|
|
28,331
|
|
|
38,312
|
|
||||
General and administrative expenses
|
|
5,956
|
|
|
6,958
|
|
|
7,136
|
|
|
5,123
|
|
||||
Interest expense
|
|
—
|
|
|
—
|
|
|
927
|
|
|
1,578
|
|
||||
Total expenses
|
|
145,989
|
|
|
126,396
|
|
|
123,174
|
|
|
141,467
|
|
||||
Income (loss) before income tax expense
|
|
(145,848
|
)
|
|
(38,312
|
)
|
|
(90,629
|
)
|
|
(79,208
|
)
|
||||
Income tax (expense) benefit
|
|
770
|
|
|
323
|
|
|
355
|
|
|
(1,780
|
)
|
||||
Net income (loss)
|
|
(145,078
|
)
|
|
(37,989
|
)
|
|
(90,274
|
)
|
|
(80,988
|
)
|
||||
Loss (income) attributable to non-controlling interest in related party joint venture
|
|
2,326
|
|
|
621
|
|
|
1,159
|
|
|
169
|
|
||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
|
$
|
(142,752
|
)
|
|
$
|
(37,368
|
)
|
|
$
|
(89,115
|
)
|
|
$
|
(80,819
|
)
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
(3.85
|
)
|
|
$
|
(1.01
|
)
|
|
$
|
(2.48
|
)
|
|
$
|
(2.25
|
)
|
Diluted
|
|
$
|
(3.85
|
)
|
|
$
|
(1.01
|
)
|
|
$
|
(2.48
|
)
|
|
$
|
(2.25
|
)
|
Weighted average number of ordinary shares used in the determination of earnings and loss per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
37,087,169
|
|
|
36,952,472
|
|
|
35,952,472
|
|
|
35,952,472
|
|
||||
Diluted
|
|
37,087,169
|
|
|
36,952,472
|
|
|
35,952,472
|
|
|
35,952,472
|
|
|
|
2017
|
||||||||||||||
|
|
Quarter ended
|
||||||||||||||
|
|
March 31 |
|
June 30 |
|
September 30 |
|
December 31 |
||||||||
|
|
($ in thousands)
|
||||||||||||||
Revenues
|
|
|
|
|
|
|
|
|
||||||||
Gross premiums written
|
|
$
|
197,214
|
|
|
$
|
174,889
|
|
|
$
|
181,588
|
|
|
$
|
138,960
|
|
Gross premiums ceded
|
|
(3,426
|
)
|
|
(2,523
|
)
|
|
(7,931
|
)
|
|
(42,707
|
)
|
||||
Net premiums written
|
|
193,788
|
|
|
172,366
|
|
|
173,657
|
|
|
96,253
|
|
||||
Change in net unearned premium reserves
|
|
(41,886
|
)
|
|
(12,042
|
)
|
|
(964
|
)
|
|
44,832
|
|
||||
Net premiums earned
|
|
151,902
|
|
|
160,324
|
|
|
172,693
|
|
|
141,085
|
|
||||
Net investment income (loss)
|
|
11,618
|
|
|
(39,149
|
)
|
|
63,976
|
|
|
(16,214
|
)
|
||||
Other income (expense), net
|
|
(7
|
)
|
|
303
|
|
|
(520
|
)
|
|
(336
|
)
|
||||
Total revenues
|
|
163,513
|
|
|
121,478
|
|
|
236,149
|
|
|
124,535
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
||||||||
Loss and loss adjustment expenses incurred, net
|
|
104,812
|
|
|
106,016
|
|
|
168,918
|
|
|
122,658
|
|
||||
Acquisition costs, net
|
|
43,211
|
|
|
45,429
|
|
|
38,011
|
|
|
35,089
|
|
||||
General and administrative expenses
|
|
6,743
|
|
|
6,347
|
|
|
8,202
|
|
|
5,064
|
|
||||
Total expenses
|
|
154,766
|
|
|
157,792
|
|
|
215,131
|
|
|
162,811
|
|
||||
Income (loss) before income tax
|
|
8,747
|
|
|
(36,314
|
)
|
|
21,018
|
|
|
(38,276
|
)
|
||||
Income tax (expense) benefit
|
|
(121
|
)
|
|
295
|
|
|
(65
|
)
|
|
342
|
|
||||
Net income (loss)
|
|
8,626
|
|
|
(36,019
|
)
|
|
20,953
|
|
|
(37,934
|
)
|
||||
Loss (income) attributable to non-controlling interest in related party joint venture
|
|
(252
|
)
|
|
550
|
|
|
(1,078
|
)
|
|
202
|
|
||||
Net income (loss) attributable to Greenlight Capital Re, Ltd.
|
|
$
|
8,374
|
|
|
$
|
(35,469
|
)
|
|
$
|
19,875
|
|
|
$
|
(37,732
|
)
|
Earnings (loss) per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.22
|
|
|
$
|
(0.96
|
)
|
|
$
|
0.53
|
|
|
$
|
(1.02
|
)
|
Diluted
|
|
$
|
0.22
|
|
|
$
|
(0.96
|
)
|
|
$
|
0.53
|
|
|
$
|
(1.02
|
)
|
Weighted average number of ordinary shares used in the determination of earnings and loss per share
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
37,341,338
|
|
|
37,025,703
|
|
|
37,345,985
|
|
|
37,023,895
|
|
||||
Diluted
|
|
37,376,649
|
|
|
37,025,703
|
|
|
37,375,273
|
|
|
37,023,895
|
|
Type of Investment
|
|
Cost
|
|
Fair Value
|
|
Balance
Sheet Value |
||||||
|
|
($ in thousands)
|
||||||||||
Equity securities, trading, at fair value
|
|
|
|
|
|
|
||||||
Equities – listed
|
|
50,521
|
|
|
36,908
|
|
|
36,908
|
|
|||
Total investments, trading
|
|
$
|
50,521
|
|
|
$
|
36,908
|
|
|
$
|
36,908
|
|
Other investments, at fair value
|
|
|
|
|
|
|
||||||
Private investments and unlisted equity funds
|
|
$
|
6,672
|
|
|
$
|
6,405
|
|
|
$
|
6,405
|
|
Investment accounted for under the equity method
|
|
NA
|
|
|
5,003
|
|
|
5,003
|
|
|||
Total other investments, at fair value
|
|
6,672
|
|
|
11,408
|
|
|
11,408
|
|
|||
Total investments
|
|
$
|
57,193
|
|
|
$
|
48,316
|
|
|
$
|
48,316
|
|
|
|
December 31, 2018
|
|
December 31, 2017
|
||||
|
|
($ in thousands)
|
||||||
Assets
|
|
|
|
|
|
|
||
Other investments
|
|
$
|
800
|
|
|
$
|
—
|
|
Cash and cash equivalents
|
|
3
|
|
|
84
|
|
||
Investment in subsidiaries
|
|
553,323
|
|
|
815,009
|
|
||
Notes receivable, net
|
|
21,965
|
|
|
15,355
|
|
||
Due from subsidiaries
|
|
—
|
|
|
876
|
|
||
Total assets
|
|
$
|
576,091
|
|
|
$
|
831,324
|
|
Liabilities and equity
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Convertible senior notes payable, net of deferred costs
|
|
$
|
91,185
|
|
|
$
|
—
|
|
Due to subsidiaries
|
|
7,619
|
|
|
—
|
|
||
Total liabilities
|
|
98,804
|
|
|
—
|
|
||
Shareholders’ equity
|
|
|
|
|
||||
Share capital
|
|
3,638
|
|
|
3,736
|
|
||
Additional paid-in capital
|
|
499,726
|
|
|
503,316
|
|
||
Retained earnings (deficit)
|
|
(26,077
|
)
|
|
324,272
|
|
||
Total shareholders’ equity
|
|
477,287
|
|
|
831,324
|
|
||
Total liabilities and equity
|
|
$
|
576,091
|
|
|
$
|
831,324
|
|
|
|
Year ended December 31
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Revenue
|
|
|
|
|
|
|
||||||
Net investment income
|
|
$
|
1,574
|
|
|
$
|
34,487
|
|
|
$
|
952
|
|
Total revenues
|
|
1,574
|
|
|
34,487
|
|
|
952
|
|
|||
Expenses
|
|
|
|
|
|
|
|
|
|
|||
General and administrative expenses
|
|
4,445
|
|
|
4,691
|
|
|
4,042
|
|
|||
Interest expense
|
|
2,505
|
|
|
—
|
|
|
—
|
|
|||
Total expenses
|
|
6,950
|
|
|
4,691
|
|
|
4,042
|
|
|||
Net income (loss) before equity in earnings of consolidated subsidiaries
|
|
(5,376
|
)
|
|
29,796
|
|
|
(3,090
|
)
|
|||
Equity in earnings of consolidated subsidiaries
|
|
(344,678
|
)
|
|
(74,748
|
)
|
|
47,971
|
|
|||
Consolidated net income (loss)
|
|
$
|
(350,054
|
)
|
|
$
|
(44,952
|
)
|
|
$
|
44,881
|
|
|
|
Year Ended December 31
|
||||||||||
|
|
2018
|
|
2017
|
|
2016
|
||||||
|
|
($ in thousands)
|
||||||||||
Cash provided by (used in) operating activities
|
|
|
|
|
|
|
||||||
Net income (loss)
|
|
$
|
(350,054
|
)
|
|
$
|
(44,952
|
)
|
|
$
|
44,881
|
|
Adjustments to reconcile net income or loss to net cash provided by (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|||
Equity in earnings of consolidated subsidiaries
|
|
344,678
|
|
|
74,748
|
|
|
(47,971
|
)
|
|||
Share-based compensation expense, net of forfeitures
|
|
4,382
|
|
|
4,691
|
|
|
4,042
|
|
|||
Amortization and interest expense
|
|
2,505
|
|
|
0
|
|
|
0
|
|
|||
Net change in
|
|
|
|
|
|
|
|
|
|
|||
Due from subsidiaries
|
|
876
|
|
|
(876
|
)
|
|
—
|
|
|||
Due to subsidiaries
|
|
7,619
|
|
|
(29,023
|
)
|
|
12,037
|
|
|||
Net cash provided by (used in) operating activities
|
|
10,006
|
|
|
4,588
|
|
|
12,989
|
|
|||
Investing activities
|
|
|
|
|
|
|
||||||
Purchase of investments
|
|
(800
|
)
|
|
—
|
|
|
—
|
|
|||
Change in note receivable
|
|
(6,610
|
)
|
|
(191
|
)
|
|
(12,989
|
)
|
|||
Contributed surplus to subsidiaries, net
|
|
(82,750
|
)
|
|
(1,500
|
)
|
|
—
|
|
|||
Net cash (used in) provided by investing activities
|
|
(90,160
|
)
|
|
(1,691
|
)
|
|
(12,989
|
)
|
|||
Financing activities
|
|
|
|
|
|
|
|
|
|
|||
Net proceeds from issuance of convertible senior notes payable, net of costs
|
|
96,576
|
|
|
—
|
|
|
—
|
|
|||
Repurchase of Class A ordinary shares
|
|
(16,503
|
)
|
|
(2,819
|
)
|
|
—
|
|
|||
Net cash provided by (used in) financing activities
|
|
80,073
|
|
|
(2,819
|
)
|
|
—
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
|
(81
|
)
|
|
78
|
|
|
—
|
|
|||
Cash and cash equivalents at beginning of the year
|
|
84
|
|
|
6
|
|
|
6
|
|
|||
Cash and cash equivalents at end of the year
|
|
$
|
3
|
|
|
$
|
84
|
|
|
$
|
6
|
|
Supplementary information
|
|
|
|
|
|
|
||||||
Non cash consideration from (to) subsidiaries, net
|
|
$
|
(242
|
)
|
|
$
|
(162
|
)
|
|
$
|
72
|
|
Year
|
Segment
|
Deferred
acquisition costs, net |
Reserves
for losses and loss adjustment expenses – gross |
Unearned
premiums – gross |
Net
premiums earned |
Total
investment related income (loss) |
Net losses,
and loss adjustment expenses |
Amortization
of deferred acquisition costs |
Other
operating expenses |
Gross
premiums written |
||||||||||||||||||
2018
|
Property & Casualty
|
$
|
49,929
|
|
$
|
482,662
|
|
$
|
211,789
|
|
$
|
508,363
|
|
$
|
(323,106
|
)
|
$
|
363,873
|
|
$
|
145,475
|
|
$
|
25,173
|
|
$
|
567,531
|
|
2017
|
Property & Casualty
|
$
|
62,350
|
|
$
|
464,380
|
|
$
|
255,818
|
|
$
|
626,004
|
|
$
|
20,231
|
|
$
|
502,404
|
|
$
|
161,740
|
|
$
|
26,356
|
|
$
|
692,651
|
|
2016
|
Property & Casualty
|
$
|
61,022
|
|
$
|
306,641
|
|
$
|
222,527
|
|
$
|
513,118
|
|
$
|
76,183
|
|
$
|
380,815
|
|
$
|
134,534
|
|
$
|
25,808
|
|
$
|
536,072
|
|
Year
|
Segment
|
|
Direct gross
premiums |
|
Premiums
ceded to other companies |
|
Premiums
assumed from other companies |
|
Net written premiums
|
|
Percentage of
amount assumed to net |
|||||||||
2018
|
Property & Casualty
|
|
$
|
—
|
|
|
$
|
102,788
|
|
|
$
|
567,531
|
|
|
$
|
464,743
|
|
|
122
|
%
|
2017
|
Property & Casualty
|
|
$
|
—
|
|
|
$
|
56,587
|
|
|
$
|
692,651
|
|
|
$
|
636,064
|
|
|
109
|
%
|
2016
|
Property & Casualty
|
|
$
|
—
|
|
|
$
|
10,015
|
|
|
$
|
536,072
|
|
|
$
|
526,057
|
|
|
102
|
%
|
Exhibit Number
|
Description of Exhibit
|
3.1
|
|
4.1
|
|
4.2
|
|
4.3
|
|
10.1
|
|
10.2 (1)
|
|
10.3 (1)
|
|
10.4 (1)
|
|
10.5 (1)
|
|
10.6 (1)
|
|
10.7
|
|
10.8
|
|
10.9 (1)
|
|
10.10 (1)
|
|
10.11
|
|
10.12 (1)
|
|
10.15
|
|
10.17
|
|
10.18
|
|
10.19
|
|
10.20
|