• Filing Date: 2020-03-23
  • Form Type: 10-K
  • Description: Annual report
Derivative Instruments
12 Months Ended
Dec. 31, 2019
Derivative Asset [Abstract]  
Derivative Instruments

Inward Industry Loss Warranty ("ILW") Swap


In January 2018, the Company entered into an inward ILW swap (the "2018 Inward ILW Swap") with a third-party under which qualifying loss payments are triggered by reference to the level of losses incurred by the insurance industry as a whole, rather than by losses incurred by the insured. In return for a fixed payment received of $1 million, the Company was required to make a floating payment in the event of certain losses incurred from specified natural catastrophes in North America, Caribbean, Europe, Japan, Australia, New Zealand and Latin America from January 2018 to December 2018. The Company’s maximum payment obligation under the 2018 Inward ILW Swap was $4 million. The ILW Swap expired on December 31, 2018 and the Company did not renew the ILW Swap during the year ending December 31, 2019.


During the year ending December 31, 2019, the Company settled its payment obligation of $4 million under the 2018 Inward ILW Swap.