GREENLIGHT CAPITAL RE, LTD. - FORM 8-K - EX-99.1 - EXHIBIT 99.1

Attached files

file	filename
8-K - 8-K REG FD JUNE 6 2018 - GREENLIGHT CAPITAL RE, LTD.	a8k-losstrianglesregfd.htm

a) Loss Development Tables

The following tables present the incurred and paid claims development as of December 31, 2017, net of retrocession, as well as the total of incurred but not reported liabilities plus expected development on reported claims included within the net incurred claims amount.

The loss development tables presented below have been disaggregated by lines of business for the years ended from December 31, 2008 to 2017. The Company had previously disclosed the incurred and paid claims development tables in its Form 10-K for the year ended December 31, 2017, whereby the tables were categorized as Frequency - Health; Frequency - Non-Health; and Severity. Effective from 2018, the Company no longer categorizes its business as frequency and severity but instead categorizes its business as Property, Casualty and Other.

For purposes of the loss development tables, the property business has been further disaggregated into "Property" and "Automobile - Physical Damage". The casualty category has been disaggregated into "General Liability", "Motor Liability", "Professional Liability" and "Workers' Compensation". The incurred and paid claims relating to accident and health business have been presented separately as "Health". Other specialty business including financial, aviation, energy and marine which are individually insignificant to our overall business have been grouped together as "Other". Contracts that cover more than one line of business are grouped as "Multi-line" regardless of whether a portion of the underlying business is covered by one of the lines of business listed above.

For any incurred and paid claims denominated in a currency other than U.S. dollars, the following tables are presented using the foreign exchange rate in effect as of the current year end date. As a result, all prior year information has been recalculated to reflect the exchange rates as of December 31, 2017. This removes any changes in foreign currency exchange rates from distorting the claims development between the years presented.

For assumed contracts the Company does not generally receive claims information by accident year from the ceding insurers, but instead receives claims information by the treaty year of the contract. Claims reported by the ceding insurer to the Company may have the covered losses occurring in an accident year other than the treaty year. For the purpose of the loss development tables, the non-natural catastrophe losses incurred and paid claims have been allocated to the accident years based on the proportion of premiums earned for each contract during such accident year. The natural catastrophe losses are treated separately and losses arising from such events are allocated to the specific accident year in which they occurred.

For example, a one-year treaty incepting on October 1, 2010 (with underlying policies each having a one-year duration), would have a 24-month period over which the premiums would be earned. Therefore, claims would be allocated to accident years 2010, 2011 and 2012 based on the proportion of the premiums earned during each accident year. For illustration of this contract, any claims reported during 2010 would be allocated to the 2010 accident year. For losses reported during 2011, the claims would be allocated between 2010 and 2011 based on the percentage of premiums earned during 2010 and 2011. Similarly, for losses reported during 2012 and thereafter, the losses would be allocated to the 2010, 2011 and 2012 accident years based on the proportion of premiums earned during each of those years.

The information in the tables below about incurred and paid claims development for the years ended December 31, 2008 to 2017, is presented as unaudited supplementary information.



Property
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	3,690	$	4,876	$	4,590	$	4,590	$	4,315	$	4,339	$	4,339	$	2,599	$	2,599	$	2,599	$	—
2009			18,501		17,340		16,565		15,924		15,449		15,275		11,875		11,852		11,829		19
2010					39,106		41,983		51,698		51,483		52,263		52,507		53,723		53,574		31
2011							73,309		83,261		79,794		80,402		81,894		83,012		83,066		412
2012									63,961		50,183		50,874		52,812		53,218		53,473		215
2013											60,958		59,008		61,792		62,510		62,497		1,278
2014													41,743		45,156		46,847		47,087		1,884
2015															27,882		30,361		31,763		2,611
2016																	25,650		26,190		8,386
2017																			84,830		41,528
																	Total		$	456,908	$	56,364



Property
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	1,066	$	2,080	$	2,599	$	2,599	$	2,599	$	2,599	$	2,599	$	2,599	$	2,599	$	2,599
2009			4,421		10,602		11,378		11,674		11,780		11,839		11,804		11,826		11,810
2010					20,611		40,858		42,697		43,406		47,914		48,439		53,409		53,543
2011							49,441		74,383		77,182		79,022		81,214		82,370		82,655
2012									32,085		45,887		50,242		52,657		53,211		53,259
2013											34,807		55,678		58,669		60,489		61,219
2014													20,230		40,042		43,632		45,203
2015															12,938		25,333		29,152
2016																	9,947		17,804
2017																			43,301
																	Total		400,545
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	56,364



Motor - Physical Damage
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2009			—		—		—		—		—		—		—		—		—		—
2010					560		656		671		684		662		662		667		667		—
2011							3,276		3,271		3,343		3,285		3,285		3,306		3,306		3
2012									36,985		36,129		36,008		35,998		35,922		35,922		—
2013											46,189		45,629		44,728		44,656		44,695		219
2014													18,870		18,797		19,056		19,000		—
2015															22,035		22,516		22,505		—
2016																	27,853		28,279		942
2017																			39,985		17,208
																	Total		$	194,359	$	18,372



Motor - Physical Damage
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
2009			—		—		—		—		—		—		—		—		—
2010					560		620		620		620		620		644		667		667
2011							1,418		2,944		3,305		3,285		3,285		3,303		3,303
2012									16,902		34,588		35,854		35,903		35,922		35,922
2013											21,112		41,066		44,363		44,431		44,476
2014													10,305		17,621		18,420		19,000
2015															13,859		21,663		22,505
2016																	17,075		27,337
2017																			22,777
																	Total		175,987
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	18,372



General Liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	4,237	$	5,925	$	7,691	$	7,678	$	8,756	$	8,792	$	8,823	$	9,130	$	9,143	$	9,143	$	—
2009			4,427		4,125		5,028		5,656		6,147		6,664		9,952		10,113		10,124		—
2010					12,112		14,327		17,484		19,649		21,664		25,946		28,251		28,251		—
2011							20,925		30,693		40,756		44,897		61,446		77,105		77,105		—
2012									12,626		18,133		16,921		29,554		31,145		31,161		475
2013											3,018		2,689		4,666		4,511		4,510		236
2014													1,238		1,229		1,174		1,033		485
2015															1,699		1,690		1,756		1,224
2016																	6,203		6,519		4,930
2017																			5,439		5,303
																	Total		$	175,041	$	12,653



General Liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	—	$	42	$	2,927	$	5,505	$	8,650	$	8,689	$	8,746	$	8,777	$	9,143	$	9,143
2009			400		1,284		2,255		3,715		4,529		5,519		5,957		10,105		10,124
2010					2,107		5,096		9,356		14,051		17,471		19,228		28,251		28,251
2011							2,873		11,751		20,030		25,018		32,954		77,105		77,105
2012									1,750		9,926		13,142		15,836		30,667		30,687
2013											1,371		1,917		2,298		4,191		4,274
2014													18		146		413		548
2015															69		293		532
2016																	122		1,589
2017																			136
																	Total		162,389
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	12,653



Motor Liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	26,157	$	25,116	$	27,294	$	30,047	$	31,703	$	31,756	$	32,810	$	32,961	$	32,610	$	32,655	$	—
2009			56,960		68,194		77,373		85,241		80,756		81,537		83,270		82,569		82,609		—
2010					64,264		74,260		86,881		83,496		84,742		88,377		88,022		88,008		—
2011							52,983		57,498		57,342		62,921		70,880		70,435		70,495		62
2012									132,230		131,196		131,896		131,202		131,305		131,302		—
2013											182,833		179,930		174,744		174,782		174,848		—
2014													93,718		92,844		94,688		94,385		—
2015															128,199		130,410		129,991		—
2016																	166,389		169,294		11,430
2017																			187,109		72,638
																	Total		$	1,160,696	$	84,130



Motor Liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	7,216	$	18,881	$	24,119	$	28,477	$	30,980	$	31,756	$	32,653	$	32,735	$	32,610	$	32,655
2009			20,779		47,225		61,955		72,168		76,020		79,058		80,235		82,569		82,609
2010					23,413		44,889		60,630		70,356		79,089		82,266		88,008		88,008
2011							19,082		36,462		49,569		58,244		65,018		70,433		70,433
2012									58,585		118,142		126,622		128,913		131,302		131,302
2013											86,558		159,200		171,855		174,658		174,848
2014													49,994		86,297		89,687		94,385
2015															81,093		125,645		129,991
2016																	97,325		157,864
2017																			114,471
																	Total		1,076,566
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	84,130



Professional Liability
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	11,122	$	10,265	$	7,475	$	7,539	$	6,725	$	6,725	$	6,725	$	6,725	$	6,725	$	6,725	$	4,810
2009			8,502		6,329		6,312		6,312		6,592		6,592		6,771		6,771		6,831		6,182
2010					3,904		3,350		3,594		3,739		3,936		3,967		3,952		3,951		2,182
2011							6,160		7,045		7,510		8,220		8,279		8,104		8,356		424
2012									11,454		11,459		12,014		12,459		12,652		13,386		1,377
2013											12,676		13,578		15,132		16,814		17,650		3,285
2014													19,602		18,991		18,954		21,559		7,111
2015															18,769		18,769		21,348		12,186
2016																	13,871		17,077		14,864
2017																			10,284		10,055
																	Total		$	127,167	$	62,476



Professional Liability
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	—	$	—	$	324	$	1,048	$	1,572	$	1,607	$	1,607	$	1,756	$	1,756	$	1,915
2009			—		—		—		92		128		128		383		383		649
2010					—		35		409		849		1,133		1,504		1,648		1,769
2011							112		1,357		3,751		5,345		6,708		7,426		7,932
2012									543		3,739		6,516		9,007		10,467		12,009
2013											724		3,550		7,922		11,392		14,365
2014													1,396		5,546		9,904		14,448
2015															1,209		3,412		9,162
2016																	346		2,213
2017																			229
																	Total		64,691
							All outstanding liabilities before 2008, net of reinsurance												2,486
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	64,962



Workers' Compensation
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	5,030	$	4,352	$	3,575	$	3,554	$	3,461	$	3,384	$	3,384	$	3,384	$	3,384	$	3,384	$	—
2009			10,063		10,292		9,938		10,076		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		—
2011							14,915		15,233		16,861		16,861		16,861		16,861		16,861		—
2012									11,763		12,213		12,213		12,213		12,213		12,213		—
2013											4,751		4,751		4,751		4,751		4,751		—
2014													—		—		—		—		—
2015															1,014		1,010		951		387
2016																	4,342		4,275		2,355
2017																			10,887		8,859
																	Total		$	76,647	$	11,601



Workers' Compensation
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	375	$	1,610	$	2,483	$	2,942	$	3,079	$	3,384	$	3,384	$	3,384	$	3,384	$	3,384
2009			1,043		4,995		7,833		9,893		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
2011							5,004		11,175		16,861		16,861		16,861		16,861		16,861
2012									2,359		12,213		12,213		12,213		12,213		12,213
2013											4,751		4,751		4,751		4,751		4,751
2014													—		—		—		—
2015															28		251		564
2016																	613		1,920
2017																			2,028
																	Total		65,046
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	11,601



Health
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	10,593	$	11,652	$	11,422	$	11,417	$	11,238	$	11,238	$	11,238	$	11,235	$	11,235	$	11,235	$	—
2009			24,939		23,889		23,327		23,355		23,356		23,356		23,355		23,355		23,355		—
2010					36,075		35,924		36,224		36,159		36,159		36,145		36,145		36,145		—
2011							36,140		36,212		35,821		35,800		35,595		35,595		35,595		—
2012									24,712		23,088		22,780		22,681		22,671		22,671		—
2013											30,544		33,748		34,203		33,960		33,945		—
2014													32,968		30,191		29,514		29,040		—
2015															34,097		33,530		34,148		60
2016																	37,747		40,889		927
2017																			45,007		21,194
																	Total		$	312,030	$	22,181



Health
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	4,199	$	10,880	$	11,302	$	11,285	$	11,238	$	11,238	$	11,238	$	11,235	$	11,235	$	11,235
2009			8,626		23,030		23,327		23,355		23,355		23,356		23,355		23,355		23,355
2010					17,826		35,795		36,224		36,159		36,159		36,145		36,145		36,145
2011							26,979		35,542		35,814		35,800		35,595		35,595		35,595
2012									14,896		22,691		22,780		22,679		22,671		22,671
2013											21,459		33,748		34,016		33,957		33,945
2014													19,162		28,514		29,118		29,040
2015															14,529		31,837		34,088
2016																	21,844		39,963
2017																			23,813
																	Total		289,850
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	22,181



Multi-line
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	1,034	$	580	$	280	$	280	$	280	$	2,370	$	2,369	$	2,369	$	4,739	$	4,739	$	—
2009			—		—		—		—		—		—		—		—		—		—
2010					—		—		—		—		—		—		—		—		—
2011							—		—		—		—		—		—		—		—
2012									—		—		—		—		—		—		—
2013											—		—		—		—		—		—
2014													2,390		2,390		2,390		2,609		2,020
2015															27,985		28,136		30,575		20,531
2016																	55,822		60,126		43,485
2017																			81,952		72,376
																	Total		$	180,001	$	138,412



Multi-line
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	4,739	$	4,739
2009			—		—		—		—		—		—		—		—		—
2010					—		—		—		—		—		—		—		—
2011							—		—		—		—		—		—		—
2012									—		—		—		—		—		—
2013											—		—		—		—		—
2014													—		22		167		588
2015															10		2,815		10,044
2016																	5,867		16,641
2017																			9,577
																	Total		41,589
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	138,412



Other
	Incurred claims and allocated claim adjustment expenses, net of reinsurance																				December 31, 2017
	For the years ended December 31,																				Total IBNR plus expected development on reported claims
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	3,321	$	2,889	$	2,852	$	2,819	$	2,752	$	2,751	$	2,751	$	2,751	$	2,751	$	2,751	$	—
2009			429		611		547		589		580		580		580		580		580		—
2010					4,008		3,858		4,291		4,130		4,130		4,130		3,955		4,130		175
2011							6,842		7,715		7,480		7,473		7,470		7,468		7,468		—
2012									4,090		3,639		3,756		3,773		3,759		3,755		67
2013											2,495		2,875		2,841		2,837		2,802		431
2014													4,768		3,524		1,760		1,701		772
2015															4,794		6,769		6,899		4,576
2016																	8,366		10,409		7,309
2017																			9,094		8,609
																	Total		$	49,589	$	21,939



Other
	Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance
	For the years ended December 31,
Accident year	2008		2009		2010		2011		2012		2013		2014		2015		2016		2017
	(Unaudited - Supplementary Information)
	($ in thousands)
2008	$	1,688	$	2,531	$	2,539	$	2,560	$	2,752	$	2,751	$	2,751	$	2,751	$	2,751	$	2,751
2009			151		249		547		589		580		580		580		580		580
2010					864		1,593		3,123		3,130		3,406		3,477		3,955		3,955
2011							1,162		7,457		7,468		7,468		7,468		7,468		7,468
2012									3,092		3,298		3,676		3,683		3,684		3,688
2013											215		1,866		2,473		2,387		2,371
2014													159		611		919		929
2015															472		1,549		2,323
2016																	1,469		3,100
2017																			484
																	Total		27,649
							All outstanding liabilities before 2008, net of reinsurance												—
			Liabilities for claims and claims adjustment expenses, net of reinsurance																$	21,939

The reconciliation of the net incurred and paid claims development tables to the liability for claims and claim adjustment expenses in the consolidated balance sheet is as follows:



	December 31, 2017
	($ in thousands)
Net outstanding liabilities
Property	$	56,364
Motor Physical Damage	18,372
General Liability	12,653
Motor Liability	84,130
Professional Liability	64,962
Workers' Compensation	11,601
Health	22,181
Multi Line	138,412
Other	21,939
Liabilities for claims and claims adjustment expenses, net of reinsurance	430,614
Add: Reinsurance recoverable on unpaid claims	29,459
Add: Unallocated claims adjustment expenses	4,307
Total gross liabilities for unpaid claims and claim adjustment expense	$	464,380

b) Ratios Table

The following table provides the ratios for the years ended December 31, 2017 and 2016 based on the new categories of Property, Casualty and Other.



	Year ended December 31,
	2017								2016
	Property		Casualty		Other		Total		Property		Casualty		Other		Total

Loss ratio	94.0	%	78.2	%	74.1	%	80.3	%	66.9	%	84.4	%	62.8	%	74.2	%
Acquisition cost ratio	26.7	%	21.7	%	31.2	%	25.8	%	29.9	%	21.0	%	32.1	%	26.2	%
Composite ratio	120.7	%	99.9	%	105.3	%	106.1	%	96.8	%	105.4	%	94.9	%	100.4	%
Underwriting expense ratio							2.5	%							3.2	%
Combined ratio							108.6	%							103.6	%

GREENLIGHT CAPITAL RE, LTD. - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - June 6, 2018

Attached files

GREENLIGHT CAPITAL RE, LTD. Reports