|
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
||||
|
|
Insurance |
Reinsurance |
Total |
Insurance |
Reinsurance |
Total |
|
|
Current accident year loss ratio excluding catastrophe and weather-related losses |
57.0% |
64.0% |
60.6% |
|
58.5% |
64.8% |
61.7% |
|
Catastrophe and weather-related losses ratio |
3.8% |
10.7% |
7.5% |
8.7% |
9.4% |
9.0% |
|
|
Current accident year loss ratio |
60.8% |
74.7% |
68.1% |
67.2% |
74.2% |
70.7% |
|
|
Prior year reserve development ratio |
(2.4%) |
(1.0%) |
(1.7%) |
(4.0%) |
(4.4%) |
(4.1%) |
|
|
Net losses and loss expenses ratio |
58.4% |
73.7% |
66.4% |
63.2% |
69.8% |
66.6% |
|
|
Acquisition cost ratio |
21.4% |
23.2% |
22.3% |
16.9% |
23.5% |
20.2% |
|
|
Underwriting-related general and administrative expense ratio |
18.3% |
4.3% |
11.1% |
16.8% |
5.1% |
10.8% |
|
|
Corporate expense ratio |
|
|
2.8% |
|
|
2.3% |
|
|
Combined ratio |
98.1% |
101.2% |
102.6% |
96.9% |
98.4% |
99.9% |
|
|
Acquisition cost ratio adjustment |
0.6% |
—% |
0.3% |
5.1% |
0.1% |
2.6% |
|
|
Ex-PGAAP Combined ratio |
98.7% |
101.2% |
102.9% |
102.0% |
98.5% |
102.5% |
|
|
|
Year ended December 31, |
|
|
|
2019 |
2018 |
|
Net income available to common shareholders |
$282,361 |
$396 |
|
|
|
|
|
Net investment (gains) lossesa |
(91,233) |
150,218 |
|
Foreign exchange (gains)b |
(12,041) |
(29,165) |
|
Reorganization expensesc |
37,384 |
66,940 |
|
Interest in (income) of equity method investmentsd |
(9,718) |
(993) |
|
Income tax expense (benefit) |
6,656 |
(26,697) |
|
Operating income |
$213,409 |
$160,699 |
|
|
|
|
|
Amortization of value of business acquired ("VOBA") and intangible assetse |
37,939 |
184,531 |
|
Amortization of acquisition costf |
(12,207) |
(125,467) |
|
Income tax (benefit) |
(4,888) |
(11,222) |
|
Ex-PGAAP operating incomeg |
$234,253 |
208,541 |
|
|
|
|
|
Earnings per diluted common share |
$3.34 |
$— |
|
|
|
|
|
Net investment (gains) losses |
(1.08) |
1.79 |
|
Foreign exchange (gains) |
(0.14) |
(0.35) |
|
Reorganization expenses |
0.44 |
0.80 |
|
Interest in (income) of equity method investments |
(0.12) |
(0.01) |
|
Income tax expense (benefit) |
0.08 |
(0.32) |
|
Operating income per diluted common share |
$2.52 |
$1.91 |
|
|
|
|
|
Amortization of VOBA and intangible assets |
$0.45 |
$2.20 |
|
Amortization of acquisition cost |
(0.14) |
(1.49) |
|
Income tax (benefit) |
(0.06) |
(0.14) |
|
Ex-PGAAP operating income per diluted common shareg |
$2.77 |
$2.48 |
|
|
|
|
|
Weighted average diluted common shares outstanding |
84,473 |
84,007 |
a Tax cost (benefit) of $12 million and $(12) million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the ability to utilize capital losses.
b Tax cost (benefit) of $1 million and $(4) million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions, after consideration of other relevant factors including the tax status of specific foreign exchange transactions.
c Tax (benefit) of $(7) million and $(11) million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
d Tax cost of $nil and $0.3 million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
e Tax (benefit) of $(7) million and $(35) million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
f Tax cost of $2 million and $24 million for the years ended December 31, 2019 and 2018, respectively. Tax impact is estimated by applying the statutory rates of applicable jurisdictions.
g Ex-PGAAP operating income (loss) and ex-PGAAP operating income (loss) per diluted common share are non-GAAP financial measures as defined in Item 10(e) of SEC Regulation S-K. The reconciliations to the most comparable GAAP financial measures, net income (loss) available (attributable) to common shareholders and earnings (loss) per diluted common share, respectively, are presented in the table above, and a discussion of the rationale for the presentation of these items is provided later in this report.
|
|
Year ended December 31, 2019 |
|
Year ended December 31, 2018 |
||||
|
|
Insurance |
Reinsurance |
Total |
Insurance |
Reinsurance |
Total |
|
|
Underwriting revenues |
|
|
|
|
|
|
|
|
Gross premiums written |
$3,675,931 |
$3,222,927 |
$6,898,858 |
$3,797,592 |
$3,112,473 |
$6,910,065 |
|
|
Ceded premium written |
(1,466,776) |
(942,467) |
(2,409,243) |
(1,472,845) |
(778,258) |
(2,251,103) |
|
|
Net premiums written |
2,209,155 |
2,280,460 |
4,489,615 |
2,324,747 |
2,334,215 |
4,658,962 |
|
|
|
|
|
|
|
|
|
|
|
Gross premiums earned |
3,623,180 |
3,287,497 |
6,910,677 |
3,757,436 |
3,124,781 |
6,882,217 |
|
|
Ceded premiums earned |
(1,433,096) |
(890,403) |
(2,323,499) |
(1,394,830) |
(695,892) |
(2,090,722) |
|
|
Net premiums earned |
2,190,084 |
2,397,094 |
4,587,178 |
2,362,606 |
2,428,889 |
4,791,495 |
|
|
Other insurance related income |
2,858 |
13,586 |
16,444 |
3,460 |
7,162 |
10,622 |
|
|
Total underwriting revenues |
2,192,942 |
2,410,680 |
4,603,622 |
2,366,066 |
2,436,051 |
4,802,117 |
|
|
|
|
|
|
|
|
|
|
|
Underwriting expenses |
|
|
|
|
|
|
|
|
Net losses and loss expenses |
1,278,679 |
1,766,119 |
3,044,798 |
1,494,323 |
1,695,964 |
3,190,287 |
|
|
Acquisition costs |
468,281 |
556,301 |
1,024,582 |
399,193 |
569,642 |
968,835 |
|
|
Underwriting-related general and administrative expensesa |
401,963 |
103,772 |
505,735 |
395,252 |
123,916 |
519,168 |
|
|
Total underwriting expenses |
2,148,923 |
2,426,192 |
4,575,115 |
2,288,768 |
2,389,522 |
4,678,290 |
|
|
Underwriting income (loss) |
44,019 |
(15,512) |
28,507 |
77,298 |
46,529 |
123,827 |
|
|
Acquisition costs adjustment |
12,139 |
68 |
12,206 |
121,014 |
4,453 |
125,467 |
|
|
Ex-PGAAP underwriting income (loss)b |
$31,880 |
$(15,580) |
$16,301 |
$(43,716) |
$42,076 |
(1,640) |
|
|
|
|
|
|
|
|
|
|
|
Other (expenses) income |
|
|
|
|
|
|
|
|
Net investment income |
|
|
$478,572 |
|
|
438,507 |
|
|
Net investment gains (losses) |
|
|
91,233 |
|
|
(150,218) |
|
|
Corporate expensesa |
|
|
(129,096) |
|
|
(108,221) |
|
|
Foreign exchange gains |
|
|
12,041 |
|
|
29,165 |
|
|
Interest expense and financing costs |
|
|
(68,107) |
|
|
(67,432) |
|
|
Reorganization expenses |
|
|
(37,384) |
|
|
(66,940) |
|
|
Amortization of value of business acquired |
|
|
(26,722) |
|
|
(172,332) |
|
|
Amortization of intangible assets |
|
|
(11,597) |
|
|
(13,814) |
|
|
Total (other) expenses income |
|
|
308,940 |
|
|
(111,285) |
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes and interest in income of equity method investments |
|
|
|
|
|
|
|
a Underwriting-related general and administrative expenses is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to general and administrative expenses, the most comparable GAAP financial measure, also included corporate expenses as presented above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.
b Ex-PGAAP underwriting income (loss) is a non-GAAP financial measure as defined in Item 10(e) of SEC Regulation S-K. The reconciliation to the most comparable GAAP financial measure, income (loss) before income taxes and interest in income (loss) of equity method investments is presented in the table above. A discussion of the rationale for the presentation of non-GAAP financial measures is included later in this report.