Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 31, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Trading Symbol | 'AGII | ' |
Entity Registrant Name | 'Argo Group International Holdings, Ltd. | ' |
Entity Central Index Key | '0001091748 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 25,685,241 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Assets | ' | ' | |
Available-for-sale (cost: 2014 - $2,798.6; 2013 - $2,760.1) | $2,840.90 | $2,814.40 | [1] |
Equity securities, at fair value (cost: 2014 - $318.7; 2013 - $346.9) | 511.3 | 534.3 | [1] |
Other investments (cost: 2014 - $398.0; 2013 - $377.4) | 403.3 | 378.9 | [1] |
Short-term investments, at fair value (cost: 2014 - $356.2; 2013 - $351.6) | 356.2 | 351.6 | [1] |
Total investments | 4,111.70 | 4,079.20 | [1] |
Cash | 73.1 | 157.4 | [1] |
Accrued investment income | 22.2 | 25.7 | [1] |
Premiums receivable | 396.7 | 348.4 | [1] |
Reinsurance recoverables | 1,002.30 | 1,263.50 | [1] |
Goodwill | 153.8 | 153.8 | [1] |
Intangible assets, net of accumulated amortization | 81.7 | 86 | [1] |
Current income taxes receivable, net | 30 | 0 | [1] |
Deferred acquisition costs, net | 130 | 113.9 | [1] |
Ceded unearned premiums | 227 | 196.3 | [1] |
Other assets | 160.1 | 166.8 | [1] |
Total assets | 6,388.60 | 6,591 | [1] |
Liabilities and Shareholders' Equity | ' | ' | |
Reserves for losses and loss adjustment expenses | 3,062.60 | 3,230.30 | [1] |
Unearned premiums | 865.4 | 779.1 | [1] |
Accrued underwriting expenses | 130.6 | 122.3 | [1] |
Ceded reinsurance payable, net | 200.9 | 354.7 | [1] |
Funds held | 37.9 | 43.7 | [1] |
Senior unsecured fixed rate notes | 143.8 | 143.8 | [1] |
Other indebtedness | 64.4 | 66.3 | [1] |
Junior subordinated debentures | 172.7 | 193.3 | [1] |
Current income taxes payable, net | 0 | 5.2 | [1] |
Deferred tax liabilities, net | 55.7 | 28.7 | [1] |
Other liabilities | 27.7 | 60.6 | [1] |
Total liabilities | 4,761.70 | 5,028 | [1] |
Commitments and contingencies (Note 15) | ' | ' | [1] |
Shareholders' equity: | ' | ' | |
Common shares - $1.00 par, 500,000,000 shares authorized; 34,268,995 and 34,066,889 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 34.3 | 34.1 | [1] |
Additional paid-in capital | 834.4 | 827.3 | [1] |
Treasury shares (8,440,355 and 7,558,345 shares at September 30, 2014 and December 31, 2013, respectively) | -292.7 | -250.6 | [1] |
Retained earnings | 914.4 | 804.4 | [1] |
Accumulated other comprehensive income, net of taxes | 136.5 | 147.8 | [1] |
Total shareholders' equity | 1,626.90 | 1,563 | [1] |
Total liabilities and shareholders' equity | $6,388.60 | $6,591 | [1] |
[1] | Derived from audited consolidated financial statements. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, except Share data, unless otherwise specified | |||
Statement of Financial Position [Abstract] | ' | ' | |
Available-for-sale cost | $2,798.60 | $2,760.10 | [1] |
Equity securities cost | 318.7 | 346.9 | [1] |
Other investments cost | 398 | 377.4 | [1] |
Short-term investments, Cost | $356.20 | $351.60 | [1] |
Common shares, par value | $1 | $1 | [1] |
Common shares, shares authorized | 500,000,000 | 500,000,000 | [1] |
Common shares, shares issued | 34,268,995 | 34,066,889 | [1] |
Common shares, shares outstanding | 34,268,995 | 34,066,889 | [1] |
Treasury shares, shares | 8,440,355 | 7,558,345 | [1] |
[1] | Derived from audited consolidated financial statements. |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | $337.60 | $330.50 | $999.40 | $962.20 |
Net investment income | 20.8 | 24.1 | 64.7 | 77.3 |
Fee income, net | 1.6 | 0.3 | 0.1 | 0.5 |
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 |
Total revenue | 372.9 | 364 | 1,106.70 | 1,069.60 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 191.9 | 190.9 | 559.5 | 554.1 |
Other reinsurance-related expenses | 0 | 4.6 | 0 | 14.4 |
Underwriting, acquisition and insurance expenses | 133.8 | 126.7 | 399.3 | 378 |
Interest expense | 4.9 | 5.1 | 15 | 15.1 |
Foreign currency exchange (gain) loss | -6 | 3.8 | -2.8 | -5.2 |
Total expenses | 324.6 | 331.1 | 971 | 956.4 |
Income before income taxes | 48.3 | 32.9 | 135.7 | 113.2 |
Provision for income taxes | 3.6 | 1.9 | 12.2 | 17.8 |
Net income | 44.7 | 31 | 123.5 | 95.4 |
Net income per common share: | ' | ' | ' | ' |
Basic | $1.72 | $1.16 | $4.71 | $3.54 |
Diluted | $1.69 | $1.12 | $4.63 | $3.41 |
Dividend declared per common share: | $0.18 | $0.15 | $0.51 | $0.44 |
Weighted average common shares: | ' | ' | ' | ' |
Basic | 25,956,599 | 26,682,176 | 26,203,819 | 26,961,792 |
Diluted | 26,436,933 | 27,819,550 | 26,670,176 | 27,993,335 |
Net realized investment gains and other before other-than-temporary impairment losses | 13.1 | 9.2 | 44.1 | 31.5 |
Other-than-temporary impairment losses recognized in earnings | ' | ' | ' | ' |
Other-than-temporary impairment losses on fixed maturities | 0 | 0 | -1.2 | -0.3 |
Other-than-temporary impairment losses on equity securities | -0.2 | -0.1 | -0.4 | -1.6 |
Other-than-temporary impairment losses on Funds at Lloyd's foreign currency exchange | 0 | 0 | 0 | 0 |
Other-than-temporary impairment losses on other investments | 0 | 0 | 0 | 0 |
Impairment losses recognized in earnings | -0.2 | -0.1 | -1.6 | -1.9 |
Net realized investment gains and other | $12.90 | $9.10 | $42.50 | $29.60 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $44.70 | $31 | $123.50 | $95.40 |
Other comprehensive income: | ' | ' | ' | ' |
Foreign currency translation adjustments | -2.3 | -0.3 | -1.9 | -2.2 |
Unrealized gains (losses) on securities: | ' | ' | ' | ' |
(Losses) gains arising during the period | -38.8 | 23.2 | 16.1 | -34.8 |
Reclassification adjustment for gains included in net income | -5.8 | -3.3 | -22 | -18.3 |
Other comprehensive (loss) income before tax | -46.9 | 19.6 | -7.8 | -55.3 |
Unrealized gains (losses) on securities: | ' | ' | ' | ' |
(Losses) gains arising during the period | -4.9 | 5.4 | 10.7 | -10.9 |
Reclassification adjustment for gains included in net income | -4.1 | -2 | -7.2 | -6.7 |
Income tax provision related to other comprehensive (loss) income | -9 | 3.4 | 3.5 | -17.6 |
Other comprehensive (loss) income, net of tax | -37.9 | 16.2 | -11.3 | -37.7 |
Comprehensive income | $6.80 | $47.20 | $112.20 | $57.70 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' | |
Net income | $123.50 | $95.40 | |
Adjustments to reconcile net income to net cash (used) provided by operating activities: | ' | ' | |
Amortization and depreciation | 27.8 | 28.8 | |
Share-based payments expense | 13.3 | 17.8 | |
Excess tax benefit from share-based payment arrangements | -0.1 | -0.2 | |
Deferred income tax provision, net | 22.9 | 4.4 | |
Net realized investment and other gains | -42.5 | -29.6 | |
Loss on disposals of fixed assets, net | 0 | 0.2 | |
Change in: | ' | ' | |
Accrued investment income | 3.5 | 5 | |
Receivables | 214.1 | -3.5 | |
Deferred acquisition costs | -13 | -15.5 | |
Ceded unearned premiums | -31.2 | -38.5 | |
Reserves for losses and loss adjustment expenses | -167.7 | 1.4 | |
Unearned premiums | 87.6 | 118.8 | |
Ceded reinsurance payable and funds held | -159.5 | -188.3 | |
Income taxes | -35.3 | -2.3 | |
Accrued underwriting expenses | 4.1 | 27.6 | |
Other, net | 24.2 | -24.5 | |
Cash provided (used) by operating activities | 71.7 | -3 | |
Cash flows from investing activities: | ' | ' | |
Sales of fixed maturity investments | 884.6 | 1,308 | |
Maturities and mandatory calls of fixed maturity investments | 243.6 | 224.2 | |
Sales of equity securities | 61.8 | 65 | |
Sales of other investments | 29.7 | 5.8 | |
Purchases of fixed maturity investments | -1,197.30 | -1,264.70 | |
Purchases of equity securities | -17.7 | -71.4 | |
Purchases of other investments | -49.8 | -71.2 | |
Change in foreign regulatory deposits and voluntary pools | 22.5 | 0.6 | |
Change in short-term investments | -16.5 | -76.1 | |
Settlements of foreign currency exchange forward contracts | 0.6 | -6.4 | |
Purchases of fixed assets | -26.7 | -19.1 | |
Other, net | -21.5 | 4.5 | |
Cash (used) provided by investing activities | -86.7 | 99.2 | |
Cash flows from financing activities: | ' | ' | |
Redemption of trust preferred securities, net | -18 | 0 | |
Payment on note payable | -0.1 | 0 | |
Activity under stock incentive plans | 3.3 | 1.4 | |
Repurchase of Company's common shares | -40.9 | -40.1 | |
Excess tax expense from share-based payment arrangements | 0.1 | 0.2 | |
Payment of cash dividends to common shareholders | -13.4 | -11.8 | |
Cash used by financing activities | -69 | -50.3 | |
Effect of exchange rate changes on cash | -0.3 | -0.1 | |
Change in cash | -84.3 | 45.8 | |
Cash, beginning of period | 157.4 | [1] | 95.8 |
Cash, end of period | $73.10 | $141.60 | |
[1] | Derived from audited consolidated financial statements. |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 28, 2014. | ||
The interim financial information as of, and for the three and nine months ended, September 30, 2014 and 2013 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. | ||
10% Stock Dividend | ||
On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Changes and Error Corrections [Abstract] | ' | |
Recently Issued Accounting Standards | ' | |
2 | Recently Issued Accounting Standards | |
In February 2013, the Financial Accounting Standards Board (“FASB”) issued amendments to “Liabilities” (Topic 405) in order to resolve diversity in practice related to accounting for the recognition, measurement and disclosure of obligations resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting date. The amendments require an entity to measure the liability as the sum of (a) the amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, but early adoption is permitted. The amendments should be applied retrospectively to all prior periods presented for those obligations resulting from joint and several liability arrangements within the update’s scope that exist at the beginning of an entity’s fiscal year of adoption. The adoption of this amendment did not have a material impact on our financial results or disclosures. | ||
In March 2013, the FASB issued an amendment to “Consolidation” (Topic 810) to resolve the diversity in practice related to the release of the cumulative translation adjustment into net income when a parent sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The amendments in the update are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2013, but early adoption is permitted. The amendments should be applied prospectively to derecognition events occurring after the effective date with no adjustment to prior periods. The adoption of this amendment did not have an impact on our financial results or disclosures. | ||
In July 2013, the FASB issued amendments to “Income Taxes” (Topic 740) that require the presentation of certain unrecognized tax benefits as reductions to deferred tax assets rather than liabilities in our Consolidated Balance Sheets when a net operating loss carryforward, similar tax loss or tax credit carryforward exists. The new standard requires adoption on a prospective basis. The adoption of this amendment did not have an impact on our financial results or disclosures. | ||
In April 2014, the FASB issued amendments to “Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments require that a disposal representing a strategic shift that has, or will have, a major effect on an entity’s financial results or a business activity classified as held for sale should be reported as discontinued operations. The amendments also expand the disclosure requirements for discontinued operations and add new disclosures for individually significant dispositions that do not qualify as discontinued operations. The amendments are effective prospectively for fiscal years, and interim reporting periods within those years, beginning after December 15, 2014. Early adoption is permitted only for disposals not previously reported. We do not anticipate this update will have an impact on our financial results and disclosures. | ||
In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers” (Topic 606). The ASU is a comprehensive new revenue recognition model that requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. The ASU provides a five-step analysis of transactions to determine when and how revenue is recognized and requires additional disclosures sufficient to describe the nature, amount, timing and uncertainty of revenue and cash flows for these transactions. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, we will adopt this ASU on January 1, 2017. Companies may use either a “full retrospective” adoption, meaning the update is applied to all periods presented, or a “modified retrospective” adoption, meaning the update is applied only to the most current period presented in the financial statements. While insurance contracts are excluded from this ASU, our fee income related to our brokerage operations and management of the third-party capital for our underwriting Syndicate at Lloyd’s will be subject to this updated guidance. We are currently evaluating what impact this ASU will have on our financial results and disclosures and which adoption method to apply. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investments | ' | ||||||||||||||||||||||||
3 | Investments | ||||||||||||||||||||||||
Composition of Invested Assets | |||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments were as follows: | |||||||||||||||||||||||||
September 30, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 209.8 | $ | 1.5 | $ | 0.5 | $ | 210.8 | |||||||||||||||||
Non-U.S. Governments | 76.9 | 0.6 | 0.5 | 77 | |||||||||||||||||||||
Obligations of states and political subdivisions | 485.6 | 24.2 | 0.6 | 509.2 | |||||||||||||||||||||
Credit-Financial | 489.1 | 12.8 | 1.3 | 500.6 | |||||||||||||||||||||
Credit-Industrial | 461 | 10.3 | 2.8 | 468.5 | |||||||||||||||||||||
Credit-Utility | 146.8 | 4.3 | 0.7 | 150.4 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency (1) | 179.4 | 8.2 | 0.9 | 186.7 | |||||||||||||||||||||
CMO/MBS-non agency | 13.7 | 0.9 | 0 | 14.6 | |||||||||||||||||||||
CMBS (2) | 163.8 | 2.1 | 0.2 | 165.7 | |||||||||||||||||||||
ABS-residential (3) | 5.2 | 0 | 0.3 | 4.9 | |||||||||||||||||||||
ABS-non residential | 209.2 | 0.8 | 0.3 | 209.7 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 140.4 | 1.8 | 7.4 | 134.8 | |||||||||||||||||||||
Credit | 217.7 | 3 | 12.7 | 208 | |||||||||||||||||||||
Total fixed maturities | 2,798.60 | 70.5 | 28.2 | 2,840.90 | |||||||||||||||||||||
Equity securities | 318.7 | 195.2 | 2.6 | 511.3 | |||||||||||||||||||||
Other investments | 398 | 7.3 | 2 | 403.3 | |||||||||||||||||||||
Short-term investments | 356.2 | 0 | 0 | 356.2 | |||||||||||||||||||||
Total investments | $ | 3,871.50 | $ | 273 | $ | 32.8 | $ | 4,111.70 | |||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 273.4 | $ | 2.4 | $ | 0.5 | $ | 275.3 | |||||||||||||||||
Non-U.S. Governments | 60.9 | 0.3 | 1 | 60.2 | |||||||||||||||||||||
Obligations of states and political subdivisions | 563.7 | 22.9 | 8.8 | 577.8 | |||||||||||||||||||||
Credit-Financial | 426.3 | 15.4 | 1.8 | 439.9 | |||||||||||||||||||||
Credit-Industrial | 385.5 | 13.8 | 2.2 | 397.1 | |||||||||||||||||||||
Credit-Utility | 162 | 5.4 | 0.8 | 166.6 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency (1) | 219.4 | 9.2 | 1.7 | 226.9 | |||||||||||||||||||||
CMO/MBS-non agency | 19.4 | 0.8 | 0 | 20.2 | |||||||||||||||||||||
CMBS (2) | 162.7 | 3.1 | 1 | 164.8 | |||||||||||||||||||||
ABS-residential (3) | 6.8 | 0.3 | 0.5 | 6.6 | |||||||||||||||||||||
ABS-non residential | 116.8 | 0.5 | 0.1 | 117.2 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 207.7 | 4.9 | 5.9 | 206.7 | |||||||||||||||||||||
Credit | 155.5 | 4.4 | 4.8 | 155.1 | |||||||||||||||||||||
Total fixed maturities | 2,760.10 | 83.4 | 29.1 | 2,814.40 | |||||||||||||||||||||
Equity securities | 346.9 | 188.6 | 1.2 | 534.3 | |||||||||||||||||||||
Other investments | 377.4 | 2.8 | 1.3 | 378.9 | |||||||||||||||||||||
Short-term investments | 351.6 | 0 | 0 | 351.6 | |||||||||||||||||||||
Total investments | $ | 3,836.00 | $ | 274.8 | $ | 31.6 | $ | 4,079.20 | |||||||||||||||||
(1) | Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). | ||||||||||||||||||||||||
(2) | Commercial mortgage-backed securities (“CMBS”). | ||||||||||||||||||||||||
(3) | Asset-backed securities (“ABS”). | ||||||||||||||||||||||||
Included in “Total investments” in our Consolidated Balance Sheets at September 30, 2014 and December 31, 2013 is $70.1 million and $87.3 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party capital participants that provide underwriting capital to our Syndicate 1200 segment. | |||||||||||||||||||||||||
Contractual Maturity | |||||||||||||||||||||||||
The amortized cost and fair values of fixed maturity investments as of September 30, 2014, by contractual maturity, were as follows: | |||||||||||||||||||||||||
(in millions) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due in one year or less | $ | 255.7 | $ | 254.2 | |||||||||||||||||||||
Due after one year through five years | 1,329.30 | 1,343.20 | |||||||||||||||||||||||
Due after five years through ten years | 472.9 | 488.2 | |||||||||||||||||||||||
Thereafter | 169.4 | 173.7 | |||||||||||||||||||||||
Structured securities | 571.3 | 581.6 | |||||||||||||||||||||||
Total | $ | 2,798.60 | $ | 2,840.90 | |||||||||||||||||||||
The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations. | |||||||||||||||||||||||||
Unrealized Losses and Other-than-temporary Impairments | |||||||||||||||||||||||||
An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below: | |||||||||||||||||||||||||
September 30, 2014 | Less Than One Year | One Year or Greater | Total | ||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 59.5 | $ | 0.3 | $ | 16.3 | $ | 0.2 | $ | 75.8 | $ | 0.5 | |||||||||||||
Non-U.S. Governments | 28.3 | 0.1 | 7.5 | 0.4 | 35.8 | 0.5 | |||||||||||||||||||
Obligations of states and political subdivisions | 16.4 | 0.1 | 27.9 | 0.5 | 44.3 | 0.6 | |||||||||||||||||||
Credit-Financial | 149.1 | 1.1 | 14.3 | 0.2 | 163.4 | 1.3 | |||||||||||||||||||
Credit-Industrial | 222.5 | 2.5 | 13.5 | 0.3 | 236 | 2.8 | |||||||||||||||||||
Credit-Utility (2) | 42.5 | 0.7 | 1.9 | 0 | 44.4 | 0.7 | |||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 23.8 | 0.1 | 17.1 | 0.8 | 40.9 | 0.9 | |||||||||||||||||||
CMBS | 29.8 | 0.1 | 6.6 | 0.1 | 36.4 | 0.2 | |||||||||||||||||||
ABS-residential | 0 | 0 | 3.4 | 0.3 | 3.4 | 0.3 | |||||||||||||||||||
ABS-non residential (2) | 106.9 | 0.3 | 3.6 | 0 | 110.5 | 0.3 | |||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 111.5 | 6.9 | 17 | 0.5 | 128.5 | 7.4 | |||||||||||||||||||
Credit | 179.8 | 12.6 | 0.7 | 0.1 | 180.5 | 12.7 | |||||||||||||||||||
Total fixed maturities | 970.1 | 24.8 | 129.8 | 3.4 | 1,099.90 | 28.2 | |||||||||||||||||||
Equity securities | 32.1 | 2.6 | 0 | 0 | 32.1 | 2.6 | |||||||||||||||||||
Other investments | (2.0 | ) | 2 | 0 | 0 | (2.0 | ) | 2 | |||||||||||||||||
Total | $ | 1,000.20 | $ | 29.4 | $ | 129.8 | $ | 3.4 | $ | 1,130.00 | $ | 32.8 | |||||||||||||
December 31, 2013 | Less Than One Year | One Year or Greater | Total | ||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 55.3 | $ | 0.5 | $ | 0 | $ | 0 | $ | 55.3 | $ | 0.5 | |||||||||||||
Non-U.S. Governments | 36.3 | 1 | 0 | 0 | 36.3 | 1 | |||||||||||||||||||
Obligations of states and political subdivisions (2) | 154.6 | 8.8 | 3.1 | 0 | 157.7 | 8.8 | |||||||||||||||||||
Credit-Financial | 88.7 | 1.7 | 2.4 | 0.1 | 91.1 | 1.8 | |||||||||||||||||||
Credit-Industrial | 85.7 | 2 | 2.9 | 0.2 | 88.6 | 2.2 | |||||||||||||||||||
Credit-Utility | 21.2 | 0.7 | 1.9 | 0.1 | 23.1 | 0.8 | |||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 58.4 | 1.2 | 5.6 | 0.5 | 64 | 1.7 | |||||||||||||||||||
CMBS (2) | 24.2 | 1 | 1.1 | 0 | 25.3 | 1 | |||||||||||||||||||
ABS-residential | 0 | 0 | 3.6 | 0.5 | 3.6 | 0.5 | |||||||||||||||||||
ABS-non residential (2) | 59.1 | 0.1 | 2 | 0 | 61.1 | 0.1 | |||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 170.5 | 5.9 | 0 | 0 | 170.5 | 5.9 | |||||||||||||||||||
Credit | 125.3 | 4.8 | 0 | 0 | 125.3 | 4.8 | |||||||||||||||||||
Total fixed maturities | 879.3 | 27.7 | 22.6 | 1.4 | 901.9 | 29.1 | |||||||||||||||||||
Equity securities | 25.5 | 1.2 | 0 | 0 | 25.5 | 1.2 | |||||||||||||||||||
Other investments | (1.4 | ) | 1.3 | 0 | 0 | (1.4 | ) | 1.3 | |||||||||||||||||
Short-term investments (1) | 4.5 | 0 | 0 | 0 | 4.5 | 0 | |||||||||||||||||||
Total | $ | 907.9 | $ | 30.2 | $ | 22.6 | $ | 1.4 | $ | 930.5 | $ | 31.6 | |||||||||||||
(1) | Unrealized losses less than one year are less than $0.1 million. | ||||||||||||||||||||||||
(2) | Unrealized losses one year or greater are less than $0.1 million. | ||||||||||||||||||||||||
We regularly evaluate our investments for other-than-temporary impairment. For fixed maturity securities, the evaluation for a credit loss is generally based on the present value of expected cash flows of the security as compared to the amortized book value. For structured securities, frequency and severity of loss inputs are used in projecting future cash flows of the securities. Loss frequency is measured as the credit default rate, which includes such factors as loan-to-value ratios and credit scores of borrowers. Loss severity includes such factors as trends in real estate values and proceeds at foreclosure. For equity securities and other investments, the length of time and the amount of decline in fair value are the principal factors in determining other-than-temporary impairment. We also recognize other-than-temporary losses on our fixed maturity securities that we intend to sell. | |||||||||||||||||||||||||
We hold a total of 5,853 securities, of which 1,668 were in an unrealized loss position for less than one year and 167 were in an unrealized loss position for a period one year or greater as of September 30, 2014. Unrealized losses greater than twelve months on fixed maturities were the result of a number of factors, including increased credit spreads, foreign currency fluctuations and higher market yields relative to the date the securities were purchased, and for structured securities, by the performance of the underlying collateral as well. In considering whether an investment is other-than-temporily impaired or not, we also considered that we do not intend to sell the investments and it is unlikely that we will be required to sell the investments before recovery of their amortized cost bases, which may be maturity. In situations where we did not recognize other-than-temporary losses on investments in our equity portfolio, we have evaluated the near-term prospects of the investment in relation to the severity and duration of the impairment based on that evaluation, have the ability and intent to hold these investments until a recovery of the cost basis. We do not consider these investments to be other-than-temporarily impaired at September 30, 2014. | |||||||||||||||||||||||||
There were no recognized other-than-temporary losses on our fixed maturities portfolio for the three months ended September 30, 2014 and 2013, respectively. We recognized other-than-temporary losses on our fixed maturities portfolio of $1.2 million and $0.3 million for the nine months ended September 30, 2014 and 2013, respectively. We recognized other-than-temporary losses on our equity portfolio of $0.2 million and $0.4 million for the three and nine months ended September 30, 2014, respectively. We recognized other-than-temporary losses on our equity portfolio of $0.1 million and $1.6 million for the three and nine months ended September 30, 2013, respectively. | |||||||||||||||||||||||||
Realized Gains and Losses | |||||||||||||||||||||||||
The following table presents our gross realized investment gains (losses): | |||||||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Realized gains | |||||||||||||||||||||||||
Fixed maturities | $ | 4.5 | $ | 5.8 | $ | 15.2 | $ | 27.5 | |||||||||||||||||
Equity securities | 0.7 | 7.2 | 16.1 | 15 | |||||||||||||||||||||
Other investments | 13.6 | 11.2 | 36.5 | 28.9 | |||||||||||||||||||||
Short-term investments | 0 | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
Other assets | 2 | 0 | 2 | 0 | |||||||||||||||||||||
Gross realized investment gains | 20.8 | 24.3 | 69.9 | 71.5 | |||||||||||||||||||||
Realized losses | |||||||||||||||||||||||||
Fixed maturities | (1.1 | ) | (6.1 | ) | (8.7 | ) | (14.5 | ) | |||||||||||||||||
Equity securities | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.8 | ) | |||||||||||||||||
Other investments | (6.5 | ) | (8.6 | ) | (12.6 | ) | (24.1 | ) | |||||||||||||||||
Short-term investments | 0 | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||||||||||||||
Other assets | 0 | 0 | (4.0 | ) | 0 | ||||||||||||||||||||
Other-than-temporary impairment losses on fixed maturities | 0 | 0 | (1.2 | ) | (0.3 | ) | |||||||||||||||||||
Other-than-temporary impairment losses on equity securities | (0.2 | ) | (0.1 | ) | (0.4 | ) | (1.6 | ) | |||||||||||||||||
Gross realized investment and other losses | (7.9 | ) | (15.2 | ) | (27.4 | ) | (41.9 | ) | |||||||||||||||||
Net realized investment gains and other | $ | 12.9 | $ | 9.1 | $ | 42.5 | $ | 29.6 | |||||||||||||||||
As of September 30, 2013, we hedged $2.0 million of certain holdings in non-U.S. Dollar denominated fixed maturity investments with $1.8 million of foreign exchange contracts. The net realized effect on income was not significant for the three and nine months ended September 30, 2013. This program was discontinued in 2014 and the net realized effect on income was not significant. | |||||||||||||||||||||||||
We also enter into foreign currency exchange forward contracts to manage currency exposure on losses related to global catastrophe events. These currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments.” The realized and unrealized gains and losses are included in “Net realized investment gains and other” in our Consolidated Statements of Income. The notional amount of the currency forward contracts was $25.6 million and $53.2 million as of September 30, 2014 and 2013, respectively. The fair value of the currency forward contracts was a loss of $2.0 million and a gain $1.6 million as of September 30, 2014 and 2013, respectively. For the three and nine months ended September 30, 2014, we recognized $2.1 million and $0.2 million in net realized losses, respectively, from the catastrophe event currency forward contracts. For the three and nine months ended September 30, 2013, we recognized $2.4 million in net realized gains and $2.2 million in net realized losses, respectively, from the catastrophe event currency forward contracts. | |||||||||||||||||||||||||
In 2014, we entered into foreign currency exchange forward contracts to manage currency exposure on our Canadian dollar (“CAD”) investment portfolio. The currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments.” The realized and unrealized gains and losses are included in “Net realized investment gains and other” in our Consolidated Statements of Income. The notional amount of the currency forward contracts was $118.3 million as of September 30, 2014. The fair value of the currency forward contracts was $1.5 million as of September 30, 2014. For the three and nine months ended September 30, 2014, we recognized $1.1 million in net realized gains from the Canadian dollar currency forward contracts. | |||||||||||||||||||||||||
Also in 2014, we entered into foreign currency exchange forward contracts to manage currency exposure on certain Euro denominated investments. The currency forward contracts are carried at fair value in our Consolidated Balance Sheets in “Other investments”. The realized and unrealized gains and losses are included in “Net realized investment gains and other” in our Consolidated Statements of Income. The fair value of the currency forward contracts was $1.9 million as of September 30, 2014. For the three and nine months ended September 30, 2014, we recognized $2.0 million in net realized gains from these currency forward contracts. | |||||||||||||||||||||||||
Regulatory Deposits, Pledged Securities and Letters of Credit | |||||||||||||||||||||||||
At September 30, 2014, the amortized cost and fair value of investments on deposit with U.S. and various regulatory agencies for regulatory purposes were $196.0 million and $204.4 million, respectively. At December 31, 2013, the amortized cost and fair value of investments on deposit with U.S. and various regulatory agencies for regulatory purposes were $196.7 million and $203.4 million, respectively. | |||||||||||||||||||||||||
At September 30, 2014, investments with an amortized cost of $55.4 million and fair value of $55.8 million were pledged as collateral in support of irrevocable letters of credit (“LOC’s”) in the amount of $45.0 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves. At December 31, 2013, investments with an amortized cost of $96.6 million and fair value of $97.5 million were pledged as collateral in support of irrevocable LOC’s in the amount of $60.2 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves. | |||||||||||||||||||||||||
Our Corporate member’s capital supporting our Lloyd’s business was $243.2 million and $250.8 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||||||||||
Fair Value Measurements | |||||||||||||||||||||||||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market for the asset or liability, or in the absence of a principal market, the most advantageous market. Market participants are buyers and sellers in the principal (or most advantageous) market that are independent, knowledgeable, able to transact for the asset or liability and willing to transfer the asset or liability. | |||||||||||||||||||||||||
Valuation techniques consistent with the market approach, income approach and/or cost approach are used to measure fair value. The inputs of these valuation techniques are categorized into three levels. | |||||||||||||||||||||||||
• | Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that can be accessed at the reporting date. We define actively traded as a security that has traded in the past seven days. We receive one quote per instrument for Level 1 inputs. | ||||||||||||||||||||||||
• | Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. We receive one quote per instrument for Level 2 inputs. | ||||||||||||||||||||||||
• | Level 3 inputs are unobservable inputs. Unobservable inputs reflect our own assumptions about the assumptions market participants would use in pricing the asset or liability based on the best information available in the circumstances. | ||||||||||||||||||||||||
We receive fair value prices from third-party pricing services and our outside investment managers. These prices are determined using observable market information such as dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. We have reviewed the processes used by the third-party providers for pricing the securities, and have determined that these processes result in fair values consistent with GAAP requirements. In addition, we review these prices for reasonableness, and have not adjusted any prices received from the third-party providers as of September 30, 2014. A description of the valuation techniques we use to measure assets at fair value is as follows: | |||||||||||||||||||||||||
Fixed Maturities (Available-for-Sale) Levels 1 and 2: | |||||||||||||||||||||||||
• | United States Treasury securities are typically valued using Level 1 inputs. For these securities, we obtain fair value measurements from third-party pricing services using quoted prices (unadjusted) in active markets at the reporting date. | ||||||||||||||||||||||||
• | United States Government agencies, non-U.S. Government securities, obligations of states and political subdivisions, credit securities and foreign denominated securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, yield curves, live trading levels, trade execution data, credit information and the security’s terms and conditions, among other things. | ||||||||||||||||||||||||
• | CMO/MBS agency, CMO/MBS non-agency, CMBS, ABS residential and ABS non-residential securities are reported at fair value using Level 2 inputs. For these securities, we obtain fair value measurements from third-party pricing services. Observable data may include dealer quotes, market spreads, cash flows, yield curves, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the security’s terms and conditions, among other things. | ||||||||||||||||||||||||
Equity Securities Level 1: Equity securities are principally reported at fair value using Level 1 inputs. For these securities, we obtain fair value measurements from a third-party pricing service using quoted prices (unadjusted) in active markets at the reporting date. | |||||||||||||||||||||||||
Equity Securities Level 2: We own interests in equity funds that are reported at fair value using Level 2 inputs. The valuations are based on the funds’ net asset value per share, determined weekly or at the end of each month. The underlying assets in the funds are valued primarily on the basis of closing market quotations or official closing prices on each valuation day. | |||||||||||||||||||||||||
Equity Securities Level 3: We own certain equity securities that are reported at fair value using Level 3 inputs. The valuation techniques for these securities include the following: | |||||||||||||||||||||||||
• | Fair value measurements are obtained from the National Association of Insurance Commissioners’ Security Valuation Office at the reporting date. | ||||||||||||||||||||||||
• | Fair value measurements for an investment in an equity fund obtained by applying final prices provided by the administrator of the fund, which is based upon certain estimates and assumptions. | ||||||||||||||||||||||||
Other Investments Level 2: Foreign regulatory deposits are assets held in trust in jurisdictions where there is a legal and regulatory requirement to maintain funds locally in order to protect policyholders. Lloyd’s is the appointed investment manager for the funds. These assets are invested in short-term government securities, agency securities and corporate bonds and are valued using Level 2 inputs based upon values obtained from Lloyd’s. Foreign currency future contracts are valued by our counterparty using market driven foreign currency exchange rates and are considered Level 2 investments. | |||||||||||||||||||||||||
Short-term Investments: Short-term investments are principally reported at fair value using Level 1 inputs, with the exception of short-term corporate bonds reported at fair value using Level 2 inputs as described in the fixed maturities section above. Values for the investments categorized as Level 1 are obtained from various financial institutions as of the reporting date. | |||||||||||||||||||||||||
Other Assets Level 3: We had one reinsurance contract deemed a derivative in 2013. The fair values were estimated by management taking into account changes in the market for catastrophic bond reinsurance contracts with similar economic characteristics and potential recoveries from events preceding the valuation date. See Note 4, “Derivative Instruments” for related disclosures. | |||||||||||||||||||||||||
Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three and nine months ended September 30, 2014 or 2013. | |||||||||||||||||||||||||
Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
(in millions) | September 30, 2014 | Level 1 (a) | Level 2 (b) | Level 3 (c) | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 210.8 | $ | 120.8 | $ | 90 | $ | 0 | |||||||||||||||||
Non-U.S. Governments | 77 | 0 | 77 | 0 | |||||||||||||||||||||
Obligations of states and political subdivisions | 509.2 | 0 | 509.2 | 0 | |||||||||||||||||||||
Credit-Financial | 500.6 | 0 | 500.6 | 0 | |||||||||||||||||||||
Credit-Industrial | 468.5 | 0 | 468.5 | 0 | |||||||||||||||||||||
Credit-Utility | 150.4 | 0 | 150.4 | 0 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 186.7 | 0 | 186.7 | 0 | |||||||||||||||||||||
CMO/MBS-non agency | 14.6 | 0 | 14.6 | 0 | |||||||||||||||||||||
CMBS | 165.7 | 0 | 165.7 | 0 | |||||||||||||||||||||
ABS-residential | 4.9 | 0 | 4.9 | 0 | |||||||||||||||||||||
ABS-non residential | 209.7 | 0 | 209.7 | 0 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 134.8 | 0 | 134.8 | 0 | |||||||||||||||||||||
Credit | 208 | 0 | 208 | 0 | |||||||||||||||||||||
Total fixed maturities | 2,840.90 | 120.8 | 2,720.10 | 0 | |||||||||||||||||||||
Equity securities | 511.3 | 471 | 39.3 | 1 | |||||||||||||||||||||
Other investments | 98.1 | 0 | 98.1 | 0 | |||||||||||||||||||||
Short-term investments | 356.2 | 354.1 | 2.1 | 0 | |||||||||||||||||||||
$ | 3,806.50 | $ | 945.9 | $ | 2,859.60 | $ | 1 | ||||||||||||||||||
(a) | Quoted prices in active markets for identical assets | ||||||||||||||||||||||||
(b) | Significant other observable inputs | ||||||||||||||||||||||||
(c) | Significant unobservable inputs | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
(in millions) | December 31, 2013 | Level 1 (a) | Level 2 (b) | Level 3 (c) | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 275.3 | $ | 143.8 | $ | 131.5 | $ | 0 | |||||||||||||||||
Non-U.S. Governments | 60.2 | 0 | 60.2 | 0 | |||||||||||||||||||||
Obligations of states and political subdivisions | 577.8 | 0 | 577.8 | 0 | |||||||||||||||||||||
Credit-Financial | 439.9 | 0 | 439.9 | 0 | |||||||||||||||||||||
Credit-Industrial | 397.1 | 0 | 397.1 | 0 | |||||||||||||||||||||
Credit-Utility | 166.6 | 0 | 166.6 | 0 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 226.9 | 0 | 226.9 | 0 | |||||||||||||||||||||
CMO/MBS-non agency | 20.2 | 0 | 20.2 | 0 | |||||||||||||||||||||
CMBS | 164.8 | 0 | 164.8 | 0 | |||||||||||||||||||||
ABS-residential | 6.6 | 0 | 6.6 | 0 | |||||||||||||||||||||
ABS-non residential | 117.2 | 0 | 117.2 | 0 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 206.7 | 0 | 206.7 | 0 | |||||||||||||||||||||
Credit | 155.1 | 0 | 155.1 | 0 | |||||||||||||||||||||
Total fixed maturities | 2,814.40 | 143.8 | 2,670.60 | 0 | |||||||||||||||||||||
Equity securities | 534.3 | 476.7 | 56.3 | 1.3 | |||||||||||||||||||||
Other investments | 117.8 | 0 | 117.8 | 0 | |||||||||||||||||||||
Short-term investments | 351.6 | 347 | 4.6 | 0 | |||||||||||||||||||||
Other assets | 2.6 | 0 | 0 | 2.6 | |||||||||||||||||||||
$ | 3,820.70 | $ | 967.5 | $ | 2,849.30 | $ | 3.9 | ||||||||||||||||||
(a) | Quoted prices in active markets for identical assets | ||||||||||||||||||||||||
(b) | Significant other observable inputs | ||||||||||||||||||||||||
(c) | Significant unobservable inputs | ||||||||||||||||||||||||
The fair value measurements in the tables above do not equal “Total investments” on our Consolidated Balance Sheets as they exclude certain other investments that are accounted for under the equity-method of accounting and include reinsurance contracts that are classified as “Other assets”. | |||||||||||||||||||||||||
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: | |||||||||||||||||||||||||
Fair Value Measurements Using Observable Inputs (Level 3) | |||||||||||||||||||||||||
(in millions) | Equity | Other Assets | Total | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance, January 1, 2014 | $ | 1.3 | $ | 2.6 | $ | 3.9 | |||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||||
Included in net income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||||||
Purchases | 0 | 0 | 0 | ||||||||||||||||||||||
Issuances | 0 | 0 | 0 | ||||||||||||||||||||||
Sales | (0.3 | ) | 0 | (0.3 | ) | ||||||||||||||||||||
Settlements | 0 | (2.6 | ) | (2.6 | ) | ||||||||||||||||||||
Ending balance, September 30, 2014 | $ | 1 | $ | 0 | $ | 1 | |||||||||||||||||||
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2014 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
(in millions) | Equity | Other Assets | Total | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 1.8 | $ | 6.9 | $ | 8.7 | |||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||||
Included in net income (loss) | 0.1 | 0 | 0.1 | ||||||||||||||||||||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||||||
Purchases | 0 | 0 | 0 | ||||||||||||||||||||||
Issuances | 0 | 0 | 0 | ||||||||||||||||||||||
Sales | (0.6 | ) | 0 | (0.6 | ) | ||||||||||||||||||||
Settlements | 0 | (4.3 | ) | (4.3 | ) | ||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 1.3 | $ | 2.6 | $ | 3.9 | |||||||||||||||||||
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
At September 30, 2014 and December 31, 2013, we did not have any financial assets or financial liabilities measured at fair value on a nonrecurring basis or any financial liabilities on a recurring basis. |
Derivative_Instruments
Derivative Instruments | 9 Months Ended | |
Sep. 30, 2014 | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |
Derivative Instruments | ' | |
4 | Derivative Instruments | |
Through our subsidiary Argo Re, Ltd. (“Argo Re”), we entered into a reinsurance contract with a special purpose reinsurance company that provided us with protection against certain severe catastrophe events and the occurrence of multiple significant catastrophe events during the same year. The contract entered into on December 28, 2011 and effective January 1, 2012, provided coverage of $100 million for hurricanes and earthquakes (including fire) in the U.S. and covered losses for the first and subsequent events on a per-occurrence basis over a 24-month coverage period. This contract expired in December 2013. Each event had an activation level, which, if attained, put the notes on risk for a subsequent event. Once the coverage had been activated, a second loss during the coverage period in excess of the loss trigger level resulted in a loss to the note holders. This transaction ignored the effects of inuring reinsurance, creating the remote possibility of a double recovery on covered events, and was therefore deemed to be a derivative. | ||
We recorded the contract at fair value, and such fair value is included in “Other assets” in our Consolidated Balance Sheets with any changes in the value reflected in “Other reinsurance-related expenses” in our Consolidated Statements of Income. As there is no quoted fair value available for this derivative, the fair value was estimated by management taking into account changes in the market for catastrophe bond reinsurance contracts with similar economic characteristics and potential recoveries from events preceding the valuation date. Included in “Other reinsurance-related expenses” for the three and nine months ended September 30, 2013 was $4.6 million and $14.4 million, respectively, which was incurred due to the change in the fair value of the derivative, principally due to the passage of the transaction’s risk coverage term. Included in “Other assets” in our Consolidated Balance Sheets at December 31, 2013 was $2.6 million, which represented the fair value of the contract at that date. As the contract expired in December 2013, no such expense was incurred during 2014, nor was it reflected on our Consolidated Balance Sheets at September 30, 2014. | ||
The special purpose reinsurance company that was the counterparty to this transaction was a variable interest entity under the provisions of Accounting Standards Codification (“ASC”) Topic 810-10, “Consolidation.” Argo Group was not the primary beneficiary of this entity and was therefore not required to consolidate it in our consolidated financial statements. |
Reserves_for_Losses_and_Loss_A
Reserves for Losses and Loss Adjustment Expenses | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Insurance [Abstract] | ' | ||||||||
Reserves for Losses and Loss Adjustment Expenses | ' | ||||||||
5 | Reserves for Losses and Loss Adjustment Expenses | ||||||||
The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): | |||||||||
For the Nine Months | |||||||||
Ended September 30, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Net reserves beginning of the year | $ | 2,107.60 | $ | 2,110.90 | |||||
Add: | |||||||||
Losses and LAE incurred during current calendar year, net of reinsurance: | |||||||||
Current accident year | 585.9 | 575.6 | |||||||
Prior accident years | (26.4 | ) | (21.5 | ) | |||||
Losses and LAE incurred during calendar year, net of reinsurance | 559.5 | 554.1 | |||||||
Deduct: | |||||||||
Losses and LAE payments made during current calendar year, net of reinsurance: | |||||||||
Current accident year | 115.3 | 131.7 | |||||||
Prior accident years | 435.5 | 429 | |||||||
Losses and LAE payments made during current calendar year, net of reinsurance | 550.8 | 560.7 | |||||||
Add: | |||||||||
Change in participation interest (1) | 24.7 | 10.4 | |||||||
Foreign exchange adjustments | (4.9 | ) | (6.3 | ) | |||||
Net reserves - end of period | 2,136.10 | 2,108.40 | |||||||
Add: | |||||||||
Reinsurance recoverables on unpaid losses and LAE, end of period | 926.5 | 1,114.50 | |||||||
Gross reserves - end of period | $ | 3,062.60 | $ | 3,222.90 | |||||
(1) | Amount represents increase in reserves due to change in syndicate participation. | ||||||||
On December 31, 2012, Syndicate 1200 entered into a retroactive whole account quota share contract covering the 2009 and prior years of account. The counterparty was another syndicate within the Lloyd’s market. As a result of this transaction, reserves for losses and LAE at December 31, 2012 were net of $192.2 million ceded under this quota share agreement. Subject to a Split Reinsurance to Close arrangement previously approved by the Prudential Regulatory Authority, the liabilities assumed by the whole account quota share provider were legally transferred to that quota share provider on January 18, 2014, with an inception date of January 1, 2014. | |||||||||
Reserves for losses and loss adjustment expenses represent the estimated indemnity cost and related adjustment expenses necessary to investigate and settle claims. Such estimates are based upon individual case estimates for reported claims, estimates from ceding companies for reinsurance assumed and actuarial estimates for losses that have been incurred but not yet reported to the insurer. Any change in probable ultimate liabilities is reflected in current operating results. | |||||||||
Impacting losses and LAE for the nine months ended September 30, 2014 was $26.4 million in favorable prior years’ loss reserve development comprised of the following: $34.6 million of net favorable development in the Excess and Surplus Lines segment primarily caused by favorable development in the general and products liability lines, partially offset by unfavorable development in commercial automobile and property lines; $5.2 million of net unfavorable development in the Commercial Specialty segment, primarily driven by unfavorable development in general liability lines due to increases in claim severity, as well as unfavorable development in auto liability lines, partially offset by favorable development in short-tail and workers compensation lines; $0.1 million of net favorable development in the International Specialty segment; $15.8 million of net favorable development in the Syndicate 1200 segment primarily driven by favorable development in various property classes, as well as favorable development in professional indemnity and aerospace, partially offset by unfavorable development in general liability; $18.9 million of unfavorable development in the Run-off Lines segment primarily caused by $9.9 million of unfavorable development in workers compensation lines driven by increasing medical costs on older claims, as well as $9.0 million in asbestos liability driven by increasing defense costs on primary business and activity on assumed business including the impact of arbitrations and commutations. | |||||||||
Impacting losses and LAE for the nine months ended September 30, 2013 was $21.5 million in favorable prior years’ loss reserve development comprised of the following: $26.8 million net favorable development in the Excess and Surplus Lines segment primarily caused by favorable development in the general and products liability lines, partially offset by unfavorable development in commercial automobile; $0.4 million of net unfavorable development in the Commercial Specialty segment, primarily driven by unfavorable development in general liability lines due to increases in claim severity and unfavorable development in automobile liability lines, partially offset by favorable development in short-tail and workers compensation lines; $0.6 million net favorable development in the International Specialty segment; $4.1 million net favorable development in the Syndicate 1200 segment driven by favorable development in various property classes, partially offset by unfavorable development in the onshore energy and general liability classes of business; $9.6 million unfavorable development in the Run-off Lines segment primarily caused by $6.4 million of unfavorable development in asbestos driven by an increase in defense costs for claims from general liability policies written on a direct basis and commutation and settlement activity and $2.0 million of unfavorable development in the medical malpractice liability line due to the loss of the New York Liquidation Bureau funding for structured settlement annuity payments. | |||||||||
In the opinion of management, our reserves represent the best estimate of our ultimate liabilities, based on currently known facts, current law, current technology and assumptions considered reasonable where facts are not known. Due to the significant uncertainties and related management judgments, there can be no assurance that future loss development, favorable or unfavorable, will not occur. |
Debt
Debt | 9 Months Ended | |
Sep. 30, 2014 | ||
Debt Disclosure [Abstract] | ' | |
Debt | ' | |
6 | Debt | |
Borrowing Under Revolving Credit Facility | ||
On March 7, 2014, each of Argo Group, Argo Group US, Inc., Argo International Holdings Limited and Argo Underwriting Agency Limited (the “Borrowers”) entered into a $175.0 million Credit Agreement (“New Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent. The New Credit Agreement replaced and terminated the original $150.0 million Credit Agreement. The New Credit Agreement provides for a $175.0 million revolving credit facility with a maturity date of March 7, 2018 unless extended in accordance with the terms of the New Credit Agreement. Borrowings under the New Credit Agreement may be used for general corporate purposes, including working capital and permitted acquisitions, and each of the Borrowers has agreed to be jointly and severally liable for the obligations of the other Borrowers under the New Credit Agreement. | ||
The New Credit Agreement contains customary events of default. If an event of default occurs and is continuing, the Borrowers might be required immediately to repay all amounts outstanding under the New Credit Agreement. Lenders holding at least a majority of the loans and commitments under the New Credit Agreement may elect to accelerate the maturity of the loans and/or terminate the commitments under the New Credit Agreement upon the occurrence and during the continuation of an event of default. | ||
Included in the New Credit Agreement is a provision that allows up to $17.5 million of the revolving credit facility to be used for LOC’s, subject to availability. On March 7, 2014, the $0.2 million LOC outstanding under the original $150.0 million Credit Agreement was transferred to the New Credit Agreement. As of September 30, 2014 and December 31, 2013, there were no borrowings outstanding and $0.2 million in LOC’s against the Credit Facility. | ||
Junior Subordinated Debentures | ||
On July 16, 2014, Argo Group US, Inc. purchased the outstanding PXRE Capital Trust V $20,000,000 Junior Subordinated Debt Securities (“Capital Trust V”) at a discount equal to 90.0% of the principal amount plus accrued and unpaid interest through the date of purchase for a total price of $18.2 million. As of September 30, 2014, the Capital Trust V has not yet been redeemed and interest will continue to accrue and be paid until the redemption date. In accordance with ASC Topic 405, “Liabilities,” we have eliminated the outstanding debt, associated interest and intercompany balances related to the purchase of the Capital Trust V since the purchase by Argo Group Us, Inc. In essence, this reduces our outstanding debt related to the Junior Subordinated Debentures. |
Disclosures_about_Fair_Value_o
Disclosures about Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Disclosures about Fair Value of Financial Instruments | ' | ||||||||||||||||
7 | Disclosures about Fair Value of Financial Instruments | ||||||||||||||||
Cash. The carrying amount approximates fair value. | |||||||||||||||||
Investment securities and short-term investments. See Note 3, “Investments,” for additional information. | |||||||||||||||||
Premiums receivable and reinsurance recoverables on paid losses. The carrying value of current receivables approximates fair value. At September 30, 2014 and December 31, 2013, the carrying values of premiums receivable over 90 days were $17.9 million and $9.8 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at September 30, 2014 and December 31, 2013, are amounts that are due from third-party trade capital providers associated with the operations of Argo International. Upon settlement, the receivable is offset against the liability also reflected in our accompanying Consolidated Balance Sheets. At September 30, 2014 and December 31, 2013, the payable was in excess of the receivable. Of our reinsurance recoverable on paid losses, excluding amounts attributable to Argo International’s third-party trade capital providers, at September 30, 2014 and December 31, 2013, the carrying values over 90 days were $13.2 million and $22.2 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At September 30, 2014 and December 31, 2013, the allowance for doubtful accounts for premiums receivable was $4.9 million and $4.5 million, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $2.0 million and $1.6 million, respectively. Premiums receivable over 90 days were secured by collateral in the amount of $0.3 million and $0.4 million at September 30, 2014 and December 31, 2013, respectively. | |||||||||||||||||
At September 30, 2014 and December 31, 2013, the fair value of our Junior subordinated debentures, Senior unsecured fixed rate notes and Other indebtedness was estimated using appropriate market indices or quoted prices from external sources based on current market conditions. | |||||||||||||||||
A summary of our financial instruments whose carrying value did not equal fair value is shown below: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
(in millions) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Junior subordinated debentures | $ | 172.7 | $ | 155.5 | $ | 193.3 | $ | 155.5 | |||||||||
Senior unsecured fixed rate notes | 143.8 | 132.3 | 143.8 | 116.2 | |||||||||||||
Other indebtedness: | |||||||||||||||||
Floating rate loan stock | 63.8 | 57.4 | 65.5 | 52.7 | |||||||||||||
Note payable | 0.6 | 0.6 | 0.8 | 0.6 | |||||||||||||
$ | 380.9 | $ | 345.8 | $ | 403.4 | $ | 325 | ||||||||||
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Shareholders' Equity | ' | ||||||||||||||||||||
8 | Shareholders’ Equity | ||||||||||||||||||||
On August 5, 2014, our Board of Directors declared a quarterly cash dividend in the amount of $0.18 on each share of common stock outstanding. On September 15, 2014, we paid $4.7 million to our shareholders of record on September 1, 2014. | |||||||||||||||||||||
On August 6, 2013, our Board of Directors declared a quarterly cash dividend in the amount of $0.15 on each share of common stock outstanding. On September 20, 2013, we paid $4.0 million to our shareholders of record on September 2, 2013. | |||||||||||||||||||||
On November 13, 2007, our Board of Directors authorized the repurchase of up to $150.0 million of Argo Group’s common shares. On February 18, 2011, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2011 Repurchase Authorization”). The 2011 Repurchase Authorization superseded the November 13, 2007 repurchase program such that no further amounts could be repurchased under the repurchase program approved in 2007. On November 5, 2013, our Board of Directors authorized the repurchase of up to $150.0 million of our common shares (“2013 Repurchase Authorization”). The 2013 Repurchase Authorization superseded the 2011 Repurchase Authorization such that no further amounts could be repurchased under the 2011 Repurchase Authorization. As of September 30, 2014, availability under the 2013 Repurchase Authorization for future repurchases of our common shares was $101.5 million. | |||||||||||||||||||||
For the three and nine months ended September 30, 2014, we repurchased a total of 206,710 common shares and 882,010 common shares, respectively, for $10.8 million and $42.2 million, respectively. A summary of activity from January 1, 2014 through September 30, 2014 follows. | |||||||||||||||||||||
For the three and nine months ended September 30, 2014, we repurchased 98,108 common shares and 301,758 common shares, respectively, on the open market for $5.2 million and $14.9 million, respectively. In 2014, we repurchased shares under Securities Exchange Act of 1934 Rule 10b5-1 trading plans as follows: | |||||||||||||||||||||
Date Trading | 2014 | Number of | Average Price of | Total Cost | Repurchase | ||||||||||||||||
Plan Initiated | Purchase Period | Shares Repurchased | Shares Repurchased | (in millions) | Authorization Year | ||||||||||||||||
12/17/13 | 02/04/14-02/12/14 | 15,789 | $ | 43.28 | $ | 0.7 | 2013 | ||||||||||||||
3/18/14 | 03/18/14-04/28/14 | 436,867 | $ | 45.81 | $ | 20 | 2013 | ||||||||||||||
6/13/14 | 06/17/14-08/04/14 | 41,362 | $ | 49.94 | $ | 2.1 | 2013 | ||||||||||||||
9/12/14 | 09/16/14-09/30/14 | 86,234 | $ | 52.17 | $ | 4.5 | 2013 | ||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
9 | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||
In February 2013, the FASB issued ASU 2013-02 that amends ASC 220, “Comprehensive Income.” An entity is required to report the effect of significant reclassifications, by component, out of accumulated other comprehensive income (loss) on the respective line items in net income if the item is required under GAAP to be reclassified in its entirety in the same reporting period. Effective January 1, 2013, we adopted the update prospectively. | |||||||||||||||||
A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the nine months ended September 30, 2014 and 2013 is presented in the following tables: | |||||||||||||||||
(in millions) | Foreign Currency | Unrealized | Defined Benefit | Total | |||||||||||||
Translation | Holding Gains | Pension Plans | |||||||||||||||
Adjustments | on Securities | ||||||||||||||||
Beginning balance, January 1, 2014 | $ | (11.5 | ) | $ | 163.9 | $ | (4.6 | ) | $ | 147.8 | |||||||
Other comprehensive income before reclassifications | (1.9 | ) | 5.4 | 0 | 3.5 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | (14.8 | ) | 0 | (14.8 | ) | |||||||||||
Net current-period other comprehensive income | (1.9 | ) | (9.4 | ) | 0 | (11.3 | ) | ||||||||||
Ending balance, September 30, 2014 | $ | (13.4 | ) | $ | 154.5 | $ | (4.6 | ) | $ | 136.5 | |||||||
(in millions) | Foreign Currency | Unrealized | Defined Benefit | Total | |||||||||||||
Translation | Holding Gains | Pension Plans | |||||||||||||||
Adjustments | on Securities | ||||||||||||||||
Beginning balance, January 1, 2013 | $ | (8.7 | ) | $ | 204.1 | $ | (5.9 | ) | $ | 189.5 | |||||||
Other comprehensive loss before reclassifications | (2.2 | ) | (23.9 | ) | 0 | (26.1 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | (11.6 | ) | 0 | (11.6 | ) | |||||||||||
Net current-period other comprehensive loss | (2.2 | ) | (35.5 | ) | 0 | (37.7 | ) | ||||||||||
Ending balance, September 30, 2013 | $ | (10.9 | ) | $ | 168.6 | $ | (5.9 | ) | $ | 151.8 | |||||||
The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Unrealized gains and losses on securities | |||||||||||||||||
Net realized investment gains | $ | (5.8 | ) | $ | (3.3 | ) | $ | (22.0 | ) | $ | (18.3 | ) | |||||
Provision for income taxes | 4.1 | 2 | 7.2 | 6.7 | |||||||||||||
Net of taxes | $ | (1.7 | ) | $ | (1.3 | ) | $ | (14.8 | ) | $ | (11.6 | ) | |||||
Net_Income_Per_Common_Share
Net Income Per Common Share | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Common Share | ' | ||||||||||||||||
10 | Net Income Per Common Share | ||||||||||||||||
The following table presents the calculation of net income per common share on a basic and diluted basis: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions, except number of shares and per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 44.7 | $ | 31 | $ | 123.5 | $ | 95.4 | |||||||||
Weighted average common shares outstanding - basic | 25,956,599 | 26,682,176 | 26,203,819 | 26,961,792 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Equity compensation awards | 480,334 | 1,137,374 | 466,357 | 1,031,543 | |||||||||||||
Weighted average common shares outstanding - diluted | 26,436,933 | 27,819,550 | 26,670,176 | 27,993,335 | |||||||||||||
Net income per common share - basic | $ | 1.72 | $ | 1.16 | $ | 4.71 | $ | 3.54 | |||||||||
Net income per common share - diluted | $ | 1.69 | $ | 1.12 | $ | 4.63 | $ | 3.41 | |||||||||
Excluded from the weighted average common shares outstanding calculation at September 30, 2014 and 2013 are 8,440,355 shares and 7,408,601 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three and nine months ended September 30, 2014, equity compensation awards to purchase 1,879 shares of common stock were excluded from the computation of diluted net income per common share as these instruments were anti-dilutive. These instruments expire at varying times from 2014 through 2016. For the three and nine months ended September 30, 2013, equity compensation awards to purchase 58,784 shares of common stock were excluded from the computation of diluted net income per common share as these instruments were anti-dilutive. These instruments expire at varying times from 2013 through 2020. |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Supplemental Cash Flow Information | ' | ||||||||
11 | Supplemental Cash Flow Information | ||||||||
Income taxes paid. We paid income taxes of $23.8 million and $14.1 million during the nine months ended September 30, 2014 and 2013, respectively. | |||||||||
Interest paid. Interest paid was as follows: | |||||||||
For the Nine Months | |||||||||
Ended September 30, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Senior unsecured fixed rate notes | $ | 7 | $ | 7 | |||||
Junior subordinated debentures | 5.8 | 6 | |||||||
Other indebtedness | 2.3 | 2.1 | |||||||
Total interest paid | $ | 15.1 | $ | 15.1 | |||||
Sharebased_Compensation
Share-based Compensation | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Share-based Compensation | ' | ||||||||
12 | Share-based Compensation | ||||||||
The fair value method of accounting is used for equity-based compensation plans. Under the fair value method, compensation cost is measured based on the fair value of the award at the measurement date and recognized over the requisite service period. We use the Black-Scholes model to estimate the fair values on the measurement date for share options and share appreciation rights (“SARs”). The Black-Scholes model uses several assumptions to value a share award. The volatility assumption is based on the historical change in Argo Group’s stock price over the previous five years preceding the measurement date. The risk-free rate of return assumption is based on the five-year U.S. Treasury constant maturity rate on the measurement date. The expected award life is based upon the average holding period over the history of the incentive plan. The expected dividend yield is based on our history and expected dividend payouts. | |||||||||
The following table summarizes the assumptions we used for the nine months ended September 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Risk-free rate of return | 1.77 | % | 1.44 | % | |||||
Expected dividend yields | 1.49 | % | 1.55 | % | |||||
Expected award life (years) | 4.67 | 4.92 | |||||||
Expected volatility | 22.84 | % | 31.12 | % | |||||
Argo Group’s 2014 Long-Term Incentive Plan | |||||||||
In November 2007, the shareholders of Argo Group approved the 2007 Long-Term Incentive Plan, which provides for an aggregate of 4.5 million shares of our common stock that may be issued to executives, non-employee directors and other key employees. As of May 2014, 1,789,004 shares remained available for grant under the 2007 Long-Term Incentive Plan. In May 2014, the shareholders of Argo Group approved the 2014 Long-Term Incentive Plan (the “2014 Plan”), which provides for an additional 2.8 million shares of our common stock to be available for issuance to executives, non-employee directors and other key employees. The share awards may be in the form of share options, SARs, restricted shares, restricted share awards, restricted share units (“RSU”) awards, performance awards, other share-based awards and other cash-based awards. Shares issued under this plan may be shares that are authorized and unissued or shares that we reacquired, including shares purchased on the open market. Share options and SARs will count as one share for the purposes of the limits under the 2014 Plan; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan. | |||||||||
Share options may be in the form of incentive share options and non-qualified share options. Share options are required to have an exercise price that is not less than the market value on the date of grant. We are prohibited from repricing the options. The term of the share options cannot exceed seven years from the grant date. | |||||||||
A summary of restricted share activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Outstanding at January 1, 2014 | 257,975 | $ | 32.97 | ||||||
Granted | 107,696 | $ | 44.93 | ||||||
Vested and issued | (58,680 | ) | $ | 31.62 | |||||
Expired or forfeited | (35,511 | ) | $ | 33.08 | |||||
Outstanding at September 30, 2014 | 271,480 | $ | 37.99 | ||||||
The restricted shares vest over two to four years. Expense recognized under this plan for the restricted shares was $0.8 million and $2.2 million for the three and nine months ended September 30, 2014, respectively, as compared to $0.6 million and $2.2 million for the three and nine months ended September 30, 2013, respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expenses” in the accompanying Consolidated Statements of Income. As of September 30, 2014, there was $7.3 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group. | |||||||||
A summary of stock-settled SARs activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 1,288,698 | $ | 29.47 | ||||||
Granted | 188,273 | $ | 43.23 | ||||||
Exercised | (107,979 | ) | $ | 29.4 | |||||
Expired or forfeited | (68,523 | ) | $ | 32.95 | |||||
Outstanding at September 30, 2014 | 1,300,469 | $ | 31.28 | ||||||
The stock-settled SARs vest over a one to four year period. Upon exercise of the stock-settled SARs, the employee is entitled to receive shares of our common stock equal to the appreciation of the stock as compared to the exercise price. Expense recognized for the stock-settled SARs was $0.3 million and $1.6 million for the three and nine months ended September 30, 2014, respectively, and $0.8 million and $2.1 million for the three and nine months ended September 30, 2013, respectively. As of September 30, 2014, there was $3.6 million of total unrecognized compensation cost related to stock-settled SARs outstanding. | |||||||||
A summary of cash-settled SARs activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 1,743,758 | $ | 33 | ||||||
Granted | 756,853 | $ | 44.28 | ||||||
Exercised | (386,615 | ) | $ | 30.94 | |||||
Expired or forfeited | (170,195 | ) | $ | 35.49 | |||||
Outstanding at September 30, 2014 | 1,943,801 | $ | 37.58 | ||||||
The cash-settled SARs vest over a one to four year period. Upon exercise of the cash-settled SARs, the employee is entitled to receive cash payment for the appreciation in the value of our common stock over the exercise price. We account for the cash-settled SARs as liability awards, which require the awards to be revalued at each reporting period. Expense recognized for the cash-settled SARs was $1.2 million and $9.2 million for the three and nine months ended September 30, 2014, respectively, and $1.7 million and $12.7 million for the three and nine months ended September 30, 2013, respectively. As of September 30, 2014, there was $10.2 million of total unrecognized compensation cost related to cash-settled SARs outstanding. |
Underwriting_Acquisition_and_I
Underwriting, Acquisition and Insurance Expenses | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Underwriting, Acquisition and Insurance Expenses | ' | ||||||||||||||||
13 | Underwriting, Acquisition and Insurance Expenses | ||||||||||||||||
Underwriting, acquisition and insurance expenses were as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Commissions | $ | 59.8 | $ | 57.2 | $ | 178 | $ | 174.7 | |||||||||
General expenses | 69 | 65.4 | 211.9 | 200.8 | |||||||||||||
Premium taxes, boards and bureaus | 7.2 | 6.8 | 19.5 | 19.7 | |||||||||||||
136 | 129.4 | 409.4 | 395.2 | ||||||||||||||
Net deferral amortization of policy acquisition costs | (2.2 | ) | (2.7 | ) | (10.1 | ) | (17.2 | ) | |||||||||
Total underwriting, acquisition and insurance expenses | $ | 133.8 | $ | 126.7 | $ | 399.3 | $ | 378 | |||||||||
Included in general expenses for the three months ended September 30, 2014 and 2013 was $2.2 million and $3.2 million, respectively, and $13.3 million and $17.6 million for the nine months ended September 30, 2014 and 2013, respectively, of total equity compensation expense. |
Income_Taxes
Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Taxes | ' | ||||||||||||||||
14 | Income Taxes | ||||||||||||||||
We are incorporated under the laws of Bermuda and, under current Bermuda law, are not obligated to pay any taxes in Bermuda based upon income or capital gains. We have received an undertaking from the Supervisor of Insurance in Bermuda pursuant to the provisions of the Exempted Undertakings Tax Protection Act, 2011, which exempts us from any Bermuda taxes computed on profits, income or any capital asset, gain or appreciation or any tax in the nature of estate duty or inheritance tax, at least until the year 2035. | |||||||||||||||||
We do not consider ourselves to be engaged in a trade or business in the United States or the United Kingdom and, accordingly, do not expect to be subject to direct United States or United Kingdom income taxation. | |||||||||||||||||
We have subsidiaries based in the United Kingdom that are subject to the tax laws of that country. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Six of the United Kingdom subsidiaries are deemed to be engaged in business in the United States, and therefore, are subject to United States corporate tax in respect of a proportion of their United States underwriting business only. Relief is available against the United Kingdom tax liabilities in respect of overseas taxes paid that arise from the underwriting business. Corporate income tax losses incurred in the United Kingdom can be carried forward, for application against future income, indefinitely. Our United Kingdom subsidiaries file separate United Kingdom income tax returns. | |||||||||||||||||
We have subsidiaries based in the United States that are subject to United States tax laws. Under current law, these subsidiaries are taxed at the applicable corporate tax rates. Our United States subsidiaries file a consolidated United States federal income tax return. | |||||||||||||||||
We also have operations in Belgium, Switzerland, Brazil, France, Malta, Spain, Singapore and Ireland, which also are subject to income taxes imposed by the jurisdiction in which they operate. We have operations in the United Arab Emirates, which are not subject to income tax under the laws of that country. | |||||||||||||||||
Our income tax provision includes the following components: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Current tax provision | $ | (15.0 | ) | $ | 3.5 | $ | (10.7 | ) | $ | 13.4 | |||||||
Deferred tax provision related to: | |||||||||||||||||
Future tax deductions | 19.7 | (2.4 | ) | 52.9 | 2 | ||||||||||||
Valuation allowance change | (1.1 | ) | 0.8 | (30.0 | ) | 2.4 | |||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
Our expected income tax provision computed on pre-tax income (loss) at the weighted average tax rate has been calculated as the sum of the pre-tax income (loss) in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. For the three and nine months ended September 30, 2014 and 2013, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: | |||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in millions) | Pre-tax | Effective Tax | Pre-tax | Effective Tax | |||||||||||||
Income (Loss) | Rate | Income (Loss) | Rate | ||||||||||||||
Bermuda | $ | 27.5 | 0 | % | $ | 14.2 | 0 | % | |||||||||
United States | 13.5 | 16.2 | % | 19.6 | 22.9 | % | |||||||||||
United Kingdom | 9.2 | 15.4 | % | 1.6 | -164.7 | % | |||||||||||
Belgium | (0.1 | ) | -7.9 | % | 0.1 | 91.6 | % | ||||||||||
Brazil | (1.2 | ) | 0 | % | (1.5 | ) | 0 | % | |||||||||
United Arab Emirates | 0 | 0 | % | (0.4 | ) | 0 | % | ||||||||||
Ireland | 0 | 0 | % | (0.1 | ) | 0 | % | ||||||||||
Malta | (0.8 | ) | 0 | % | (0.6 | ) | 0 | % | |||||||||
Switzerland | 0.2 | 4.8 | % | 0 | (1) | 19.7 | % | ||||||||||
Pre-tax income | $ | 48.3 | $ | 32.9 | |||||||||||||
(1) | Pre-tax income for the respective period was less than $0.1 million. | ||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in millions) | Pre-tax | Effective Tax | Pre-tax | Effective Tax | |||||||||||||
Income (Loss) | Rate | Income (Loss) | Rate | ||||||||||||||
Bermuda | $ | 74.3 | 0 | % | $ | 34.2 | 0 | % | |||||||||
United States | 49.2 | 20.9 | % | 68.6 | 23.5 | % | |||||||||||
United Kingdom | 11.1 | 17.1 | % | 18.3 | 9.2 | % | |||||||||||
Belgium | (0.1 | ) | -32.4 | % | 0.1 | 26.9 | % | ||||||||||
Brazil | 3.9 | 0 | % | (6.2 | ) | 0 | % | ||||||||||
United Arab Emirates | (0.9 | ) | 0 | % | (0.4 | ) | 0 | % | |||||||||
Ireland | 0 | 0 | % | (0.1 | ) | 0 | % | ||||||||||
Malta | (1.8 | ) | 0 | % | (1.3 | ) | 0 | % | |||||||||
Switzerland | 0 | (2) | 24.2 | % | 0 | (2) | 21 | % | |||||||||
Pre-tax income | $ | 135.7 | $ | 113.2 | |||||||||||||
(2) | Pre-tax income for the respective period was less than $0.1 million. | ||||||||||||||||
A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income tax provision at expected rate | $ | 6.1 | $ | 6.2 | $ | 20.6 | $ | 25.2 | |||||||||
Tax effect of: | |||||||||||||||||
Tax-exempt interest | (1.1 | ) | (1.3 | ) | (3.4 | ) | (4.1 | ) | |||||||||
Dividends received deduction | (0.5 | ) | (0.7 | ) | (1.7 | ) | (1.8 | ) | |||||||||
Valuation allowance change | (1.1 | ) | 0.8 | (30.0 | ) | 2.4 | |||||||||||
Other permanent adjustments, net | (0.1 | ) | (0.5 | ) | (1.0 | ) | (1.4 | ) | |||||||||
Adjustment for prior year tax return | (1.1 | ) | 0 | (1.1 | ) | 0 | |||||||||||
Adjustment for annualized rate - United States | 0.3 | 0.3 | 0.5 | (0.1 | ) | ||||||||||||
Adjustment for annualized rate - Foreign | 0.5 | 0 | (1.4 | ) | 0 | ||||||||||||
Prior period adjustment to deferred | 0.9 | 0 | (0.2 | ) | 0 | ||||||||||||
United States state tax benefit | 0 | (0.1 | ) | 0 | (0.4 | ) | |||||||||||
PXRE Reinsurance capital loss carryforward | 0 | 0 | 29.8 | 0 | |||||||||||||
Deferred tax rate reduction | (0.1 | ) | (1.3 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Foreign exchange adjustments | (0.2 | ) | (1.7 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Foreign withholding taxes | 0 | 0.2 | 0.3 | 0.6 | |||||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
Income tax provision (benefit) - Foreign | $ | 1.5 | $ | (2.6 | ) | $ | 2 | $ | 1.7 | ||||||||
Income tax provision - United States Federal | 2.1 | 4.4 | 9.8 | 16.1 | |||||||||||||
Income tax (benefit) provision - United States State | 0 | (0.1 | ) | 0.1 | (0.6 | ) | |||||||||||
Foreign withholding tax - United States | 0 | 0.2 | 0.3 | 0.6 | |||||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
We recognize accrued interest and penalties, if any, within our global operations in “Interest expense” and “Underwriting, acquisition and insurance expenses,” respectively, in our Consolidated Statements of Income. | |||||||||||||||||
Our net deferred tax assets (liabilities) are supported by taxes paid in previous periods, reversal of the taxable temporary differences and recognition of future income. Management regularly evaluates the recoverability of the deferred tax assets and makes any necessary adjustments to them based upon any changes in management’s expectations of future taxable income. Realization of deferred tax assets is dependent upon our generation of sufficient taxable income in the future to recover tax benefits that cannot be recovered from taxes paid in the carryback period, which is generally two years for net operating losses and three years for capital losses for our United States operations. At September 30, 2014, we had a total net deferred tax liability of $29.4 million prior to any valuation allowance. Management has concluded that a valuation allowance is required for a portion of the tax effected net operating loss carryforward of $18.0 million from PXRE Corporation and for the tax effected net operating loss carryforward of $1.0 million from ARIS. The capital loss carryforward generated from the sale of PXRE Reinsurance Company expired on December 31, 2013. Of the PXRE Corporation loss carryforwards, $16.5 million will expire if not used by December 31, 2025 and $1.5 million will expire if not used by December 31, 2027. Of the ARIS loss carryforward, $0.2 million will expire if not used by December 31, 2027, $0.4 million will expire if not used by December 31, 2028 and $0.4 million will expire if not used by December 31, 2029. The valuation allowances have been established as Internal Revenue Code Section 382 limits the application of net operating loss and net capital loss carryforwards following an ownership change. The loss carryforwards available per year are $2.8 million as required by Internal Revenue Code Section 382. Further, due to cumulative losses since inception, management has concluded that a valuation allowance is required for the full amount of the tax effected net operating losses generated by our Brazil and Malta entities. Accordingly, a valuation allowance of $26.3 million is required as of September 30, 2014 of which $16.1 million relates to the PXRE Corporation and ARIS loss carryforwards, $8.1 million relates to Brazil operations and $2.1 million relates to Malta operations. For the nine months ended September 30, 2014, the valuation allowance was reduced by $29.8 million pertaining to the expiration of the PXRE Reinsurance Company capital loss carryforward, reduced by $0.7 million pertaining to the PXRE Corporation and ARIS loss carryforwards, increased by $0.2 million pertaining to our Brazil operations and increased by $0.3 million pertaining to our Malta operations. | |||||||||||||||||
We had no material unrecognized tax benefits as of September 30, 2014 and 2013. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2011. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2011. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
15. Commitments and Contingencies | |
Argo Group’s subsidiaries are parties to legal actions incidental to their business. Based on the opinion of counsel, management believes that the resolution of these matters will not materially affect our financial condition or results of operations. | |
We have contractual commitments to invest up to $42.4 million related to our limited partnership investments at September 30, 2014. These commitments will be funded as required by the partnership agreements. |
Segment_Information
Segment Information | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Segment Information | ' | ||||||||||||||||
16. Segment Information | |||||||||||||||||
We are primarily engaged in underwriting property and casualty insurance and reinsurance. We have four ongoing reporting segments: Excess and Surplus Lines, Commercial Specialty, International Specialty and Syndicate 1200. Additionally, we have a Run-off Lines segment for certain products that we no longer underwrite. | |||||||||||||||||
We consider many factors, including the nature of each segment’s insurance and reinsurance products, production sources, distribution strategies and the regulatory environment, in determining how to aggregate reporting segments. | |||||||||||||||||
In evaluating the operating performance of our segments, we focus on core underwriting and investing results before the consideration of realized gains or losses from the sales of investments. Realized investment gains are reported as a component of the Corporate and Other segment, as decisions regarding the acquisition and disposal of securities reside with the investment function and are not under the control of the individual business segments. Identifiable assets by segment are those assets used in the operation of each segment. | |||||||||||||||||
Revenue and income (loss) before income taxes for each segment were as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | |||||||||||||||||
Earned premiums | |||||||||||||||||
Excess and Surplus Lines | $ | 121.2 | $ | 120.6 | $ | 363.9 | $ | 334.4 | |||||||||
Commercial Specialty | 72.7 | 74.6 | 215.5 | 225.1 | |||||||||||||
International Specialty | 38 | 37.5 | 112.6 | 106.6 | |||||||||||||
Syndicate 1200 | 104.4 | 97.3 | 305.9 | 295.6 | |||||||||||||
Run-off Lines | 1.3 | 0.5 | 1.5 | 0.5 | |||||||||||||
Total earned premiums | 337.6 | 330.5 | 999.4 | 962.2 | |||||||||||||
Net investment income | |||||||||||||||||
Excess and Surplus Lines | 8.9 | 10.2 | 27.2 | 32.3 | |||||||||||||
Commercial Specialty | 4.5 | 5.6 | 13.8 | 17.6 | |||||||||||||
International Specialty | 2.3 | 2.4 | 6.1 | 6.4 | |||||||||||||
Syndicate 1200 | 2.1 | 2.5 | 7.9 | 8.1 | |||||||||||||
Run-off Lines | 2.4 | 2.6 | 7.2 | 8.2 | |||||||||||||
Corporate and Other | 0.6 | 0.8 | 2.5 | 4.7 | |||||||||||||
Total net investment income | 20.8 | 24.1 | 64.7 | 77.3 | |||||||||||||
Fee income, net | 1.6 | 0.3 | 0.1 | 0.5 | |||||||||||||
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 | |||||||||||||
Total revenue | $ | 372.9 | $ | 364 | $ | 1,106.70 | $ | 1,069.60 | |||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Excess and Surplus Lines | $ | 27.6 | $ | 29.6 | $ | 75.9 | $ | 60.2 | |||||||||
Commercial Specialty | 8 | 10.1 | 9.2 | 17.3 | |||||||||||||
International Specialty | 4 | 0.5 | 16.4 | 8.1 | |||||||||||||
Syndicate 1200 | 8.8 | 8.5 | 34.7 | 26.7 | |||||||||||||
Run-off Lines | (8.3 | ) | (9.1 | ) | (17.6 | ) | (5.8 | ) | |||||||||
Total segment income before taxes | 40.1 | 39.6 | 118.6 | 106.5 | |||||||||||||
Corporate and Other | (4.7 | ) | (15.8 | ) | (25.4 | ) | (22.9 | ) | |||||||||
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 | |||||||||||||
Total income before income taxes | $ | 48.3 | $ | 32.9 | $ | 135.7 | $ | 113.2 | |||||||||
The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2014 and 2013. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Bermuda | $ | 27 | $ | 27.4 | $ | 75.7 | $ | 75.3 | |||||||||
Brazil | 11 | 9.9 | 35.4 | 29.9 | |||||||||||||
Malta | 0.5 | 0.5 | 1.6 | 1.3 | |||||||||||||
United Kingdom | 104.4 | 97.7 | 305.9 | 296 | |||||||||||||
United States | 194.7 | 195 | 580.8 | 559.7 | |||||||||||||
Total earned premiums | $ | 337.6 | $ | 330.5 | $ | 999.4 | $ | 962.2 | |||||||||
The following table presents our identifiable assets. | |||||||||||||||||
(in millions) | September 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Excess and Surplus Lines | $ | 2,383.80 | $ | 2,252.20 | |||||||||||||
Commercial Specialty | 1,287.00 | 1,333.40 | |||||||||||||||
International Specialty | 771.5 | 743.6 | |||||||||||||||
Syndicate 1200 | 1,287.20 | 1,638.80 | |||||||||||||||
Run-off Lines | 586.2 | 555.9 | |||||||||||||||
Corporate and Other | 72.9 | 67.1 | |||||||||||||||
Total | $ | 6,388.60 | $ | 6,591.00 | |||||||||||||
Included in total assets at September 30, 2014 and December 31, 2013 are $287.6 million and $386.8 million, respectively, in assets associated with trade capital providers. |
Information_Provided_in_Connec
Information Provided in Connection with Outstanding Debt of Subsidiaries | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||
Information Provided in Connection with Outstanding Debt of Subsidiaries | ' | ||||||||||||||||||||
17. Information Provided in Connection with Outstanding Debt of Subsidiaries | |||||||||||||||||||||
The following tables present condensed consolidating financial information at September 30, 2014 and December 31, 2013 and for the three and nine months ended September 30, 2014 and 2013, for Argo Group (the “Parent Guarantor”) and Argo Group US (the “Subsidiary Issuer”). The Subsidiary Issuer is an indirect 100 percent-owned subsidiary of the Parent Guarantor. Investments in subsidiaries are accounted for by the Parent Guarantor under the equity method for purposes of the supplemental consolidating presentation. Earnings of subsidiaries are reflected in the Parent Guarantor’s investment accounts and earnings. The Parent Guarantor fully and unconditionally guarantees certain of the debt of the Subsidiary Issuer. Condensed consolidating financial information of the Subsidiary Issuer is presented on a consolidated basis and consists principally of the net assets, results of operations and cash flows of operating insurance company subsidiaries. | |||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments | $ | 1.9 | $ | 2,847.80 | $ | 1,262.00 | $ | 0 | $ | 4,111.70 | |||||||||||
Cash | 0 | 69 | 22.1 | (18.0 | ) | 73.1 | |||||||||||||||
Accrued investment income | 0 | 17.2 | 5 | 0 | 22.2 | ||||||||||||||||
Premiums receivable | 0 | 161 | 235.7 | 0 | 396.7 | ||||||||||||||||
Reinsurance recoverables | 0 | 1,188.70 | (186.4 | ) | 0 | 1,002.30 | |||||||||||||||
Goodwill and other intangible assets, net | 0 | 135.6 | 99.9 | 0 | 235.5 | ||||||||||||||||
Current income taxes receivable, net | 0 | 25.3 | 4.7 | 0 | 30 | ||||||||||||||||
Deferred acquisition costs, net | 0 | 58.4 | 71.6 | 0 | 130 | ||||||||||||||||
Ceded unearned premiums | 0 | 100.9 | 126.1 | 0 | 227 | ||||||||||||||||
Other assets | 10.4 | 104.1 | 52.6 | (7.0 | ) | 160.1 | |||||||||||||||
Due from affiliates | 7 | (18.8 | ) | 18.8 | (7.0 | ) | 0 | ||||||||||||||
Intercompany note receivable | 0 | 71.4 | (71.4 | ) | 0 | 0 | |||||||||||||||
Investments in subsidiaries | 1,710.80 | 0 | 0 | (1,710.8 | ) | 0 | |||||||||||||||
Total assets | $ | 1,730.10 | $ | 4,760.60 | $ | 1,640.70 | $ | (1,742.8 | ) | $ | 6,388.60 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Reserves for losses and loss adjustment expenses | $ | 0 | $ | 2,160.50 | $ | 902.1 | $ | 0 | $ | 3,062.60 | |||||||||||
Unearned premiums | 0 | 453.1 | 412.3 | 0 | 865.4 | ||||||||||||||||
Funds held and ceded reinsurance payable, net | 0 | 658.5 | (419.7 | ) | 0 | 238.8 | |||||||||||||||
Long-term debt | 49 | 288.7 | 63.8 | (20.6 | ) | 380.9 | |||||||||||||||
Deferred tax liabilities, net | 0 | 47.1 | 8.6 | 0 | 55.7 | ||||||||||||||||
Accrued underwriting expenses and other liabilities | 13.3 | 93.5 | 51.5 | 0 | 158.3 | ||||||||||||||||
Intercompany note payable | 40.9 | 0 | 0 | (40.9 | ) | 0 | |||||||||||||||
Total liabilities | 103.2 | 3,701.40 | 1,018.60 | (61.5 | ) | 4,761.70 | |||||||||||||||
Total shareholders’ equity | 1,626.90 | 1,059.20 | 622.1 | (1,681.3 | ) | 1,626.90 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,730.10 | $ | 4,760.60 | $ | 1,640.70 | $ | (1,742.8 | ) | $ | 6,388.60 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments | $ | 1.1 | $ | 2,785.10 | $ | 1,293.00 | $ | 0 | $ | 4,079.20 | |||||||||||
Cash | 0 | 132.1 | 25.3 | 0 | 157.4 | ||||||||||||||||
Accrued investment income | 0 | 19.7 | 6 | 0 | 25.7 | ||||||||||||||||
Premiums receivable | 0 | 150.8 | 197.6 | 0 | 348.4 | ||||||||||||||||
Reinsurance recoverables | 0 | 1,145.90 | 117.6 | 0 | 1,263.50 | ||||||||||||||||
Goodwill and other intangible assets, net | 0 | 137.4 | 102.4 | 0 | 239.8 | ||||||||||||||||
Current income taxes receivable, net | 0 | 0.5 | (0.5 | ) | 0 | 0 | |||||||||||||||
Deferred acquisition costs, net | 0 | 55.6 | 58.3 | 0 | 113.9 | ||||||||||||||||
Ceded unearned premiums | 0 | 88.2 | 108.1 | 0 | 196.3 | ||||||||||||||||
Other assets | 4.6 | 97.8 | 64.4 | 0 | 166.8 | ||||||||||||||||
Due from affiliates | 3.1 | 1.5 | (1.5 | ) | (3.1 | ) | 0 | ||||||||||||||
Intercompany note receivable | 0 | 87.4 | (87.4 | ) | 0 | 0 | |||||||||||||||
Investments in subsidiaries | 1,625.20 | 0 | 0 | (1,625.2 | ) | 0 | |||||||||||||||
Total assets | $ | 1,634.00 | $ | 4,702.00 | $ | 1,883.30 | $ | (1,628.3 | ) | $ | 6,591.00 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Reserves for losses and loss adjustment expenses | $ | 0 | $ | 2,157.00 | $ | 1,073.30 | $ | 0 | $ | 3,230.30 | |||||||||||
Unearned premiums | 0 | 425.5 | 353.6 | 0 | 779.1 | ||||||||||||||||
Funds held and ceded reinsurance payable, net | 0 | 642.4 | (244.0 | ) | 0 | 398.4 | |||||||||||||||
Long-term debt | 49 | 288.9 | 65.5 | 0 | 403.4 | ||||||||||||||||
Current income taxes payable, net | 0 | 8.9 | (3.7 | ) | 0 | 5.2 | |||||||||||||||
Deferred tax liabilities, net | 0 | 22.8 | 5.9 | 0 | 28.7 | ||||||||||||||||
Accrued underwriting expenses and other liabilities | 15.4 | 98.2 | 69.3 | 0 | 182.9 | ||||||||||||||||
Intercompany note payable | 6.6 | 0 | 0 | (6.6 | ) | 0 | |||||||||||||||
Total liabilities | 71 | 3,643.70 | 1,319.90 | (6.6 | ) | 5,028.00 | |||||||||||||||
Total shareholders’ equity | 1,563.00 | 1,058.30 | 563.4 | (1,621.7 | ) | 1,563.00 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,634.00 | $ | 4,702.00 | $ | 1,883.30 | $ | (1,628.3 | ) | $ | 6,591.00 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 114.2 | $ | 223.4 | $ | 0 | $ | 337.6 | |||||||||||
Net investment (loss) income | (0.1 | ) | 13.6 | 7.3 | 0 | 20.8 | |||||||||||||||
Fee income, net | 0 | 1.5 | 0.1 | 0 | 1.6 | ||||||||||||||||
Net realized investment gains and other | 0 | 9.2 | 3.7 | 0 | 12.9 | ||||||||||||||||
Total revenue | (0.1 | ) | 138.5 | 234.5 | 0 | 372.9 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 69.9 | 122 | 0 | 191.9 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 2.3 | 51.6 | 79.9 | 0 | 133.8 | ||||||||||||||||
Interest expense | 0.7 | 3.8 | 0.6 | (0.2 | ) | 4.9 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.3 | (6.3 | ) | 0 | (6.0 | ) | ||||||||||||||
Total expenses | 3 | 125.6 | 196.2 | (0.2 | ) | 324.6 | |||||||||||||||
(Loss) income before income taxes | (3.1 | ) | 12.9 | 38.3 | 0.2 | 48.3 | |||||||||||||||
Provision for income taxes | 0 | 2.1 | 1.5 | 0 | 3.6 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (3.1 | ) | 10.8 | 36.8 | 0.2 | 44.7 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 47.9 | 0 | 0 | (47.9 | ) | 0 | |||||||||||||||
Net income | $ | 44.8 | $ | 10.8 | $ | 36.8 | $ | (47.7 | ) | $ | 44.7 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 105.2 | $ | 225.3 | $ | 0 | $ | 330.5 | |||||||||||
Net investment income | 0 | 16.7 | 7.7 | (0.3 | ) | 24.1 | |||||||||||||||
Fee income, net | 0 | (0.6 | ) | 0.9 | 0 | 0.3 | |||||||||||||||
Net realized investment gains and other | 0 | 7.2 | 1.9 | 0 | 9.1 | ||||||||||||||||
Total revenue | 0 | 128.5 | 235.8 | (0.3 | ) | 364 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 65.9 | 125 | 0 | 190.9 | ||||||||||||||||
Other reinsurance-related expenses | 0 | (2.9 | ) | 7.5 | 0 | 4.6 | |||||||||||||||
Underwriting, acquisition and insurance expenses | 5.8 | 42.1 | 78.8 | 0 | 126.7 | ||||||||||||||||
Interest expense | 0.7 | 3.8 | 0.9 | (0.3 | ) | 5.1 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | (0.1 | ) | 3.9 | 0 | 3.8 | |||||||||||||||
Total expenses | 6.5 | 108.8 | 216.1 | (0.3 | ) | 331.1 | |||||||||||||||
(Loss) income before income taxes | (6.5 | ) | 19.7 | 19.7 | 0 | 32.9 | |||||||||||||||
Provision for income taxes | 0 | 4.4 | (2.5 | ) | 0 | 1.9 | |||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (6.5 | ) | 15.3 | 22.2 | 0 | 31 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 37.5 | 0 | 0 | (37.5 | ) | 0 | |||||||||||||||
Net income | $ | 31 | $ | 15.3 | $ | 22.2 | $ | (37.5 | ) | $ | 31 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 343.7 | $ | 655.7 | $ | 0 | $ | 999.4 | |||||||||||
Net investment (loss) income | (0.3 | ) | 42.4 | 22.6 | 0 | 64.7 | |||||||||||||||
Fee (expense) income, net | 0 | (1.5 | ) | 1.6 | 0 | 0.1 | |||||||||||||||
Net realized investment gains and other | 0 | 34.6 | 7.9 | 0 | 42.5 | ||||||||||||||||
Total revenue | (0.3 | ) | 419.2 | 687.8 | 0 | 1,106.70 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 211.2 | 348.3 | 0 | 559.5 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 12.5 | 147.9 | 238.9 | 0 | 399.3 | ||||||||||||||||
Interest expense | 1.8 | 11.4 | 2.1 | (0.3 | ) | 15 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.1 | (2.9 | ) | 0 | (2.8 | ) | ||||||||||||||
Total expenses | 14.3 | 370.6 | 586.4 | (0.3 | ) | 971 | |||||||||||||||
(Loss) income before income taxes | (14.6 | ) | 48.6 | 101.4 | 0.3 | 135.7 | |||||||||||||||
Provision for income taxes | 0 | 10.2 | 2 | 0 | 12.2 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (14.6 | ) | 38.4 | 99.4 | 0.3 | 123.5 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 138.1 | 0 | 0 | (138.1 | ) | 0 | |||||||||||||||
Net income | $ | 123.5 | $ | 38.4 | $ | 99.4 | $ | (137.8 | ) | $ | 123.5 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 321.2 | $ | 641 | $ | 0 | $ | 962.2 | |||||||||||
Net investment income | 0 | 57.2 | 21 | (0.9 | ) | 77.3 | |||||||||||||||
Fee income, net | 0 | (1.9 | ) | 2.4 | 0 | 0.5 | |||||||||||||||
Net realized investment gains (losses) and other | 0 | 32.8 | (3.2 | ) | 0 | 29.6 | |||||||||||||||
Total revenue | 0 | 409.3 | 661.2 | (0.9 | ) | 1,069.60 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 194.9 | 359.2 | 0 | 554.1 | ||||||||||||||||
Other reinsurance-related expenses | 0 | 0 | 14.4 | 0 | 14.4 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 18.3 | 134.3 | 225.4 | 0 | 378 | ||||||||||||||||
Interest expense | 2.3 | 11.4 | 2.3 | (0.9 | ) | 15.1 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.1 | (5.3 | ) | 0 | (5.2 | ) | ||||||||||||||
Total expenses | 20.6 | 340.7 | 596 | (0.9 | ) | 956.4 | |||||||||||||||
(Loss) income before income taxes | (20.6 | ) | 68.6 | 65.2 | 0 | 113.2 | |||||||||||||||
Provision for income taxes | 0 | 16 | 1.8 | 0 | 17.8 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (20.6 | ) | 52.6 | 63.4 | 0 | 95.4 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 116 | 0 | 0 | (116.0 | ) | 0 | |||||||||||||||
Net income | $ | 95.4 | $ | 52.6 | $ | 63.4 | $ | (116.0 | ) | $ | 95.4 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Net cash flows from operating activities | $ | (16.5 | ) | $ | 11.8 | $ | 70 | $ | 6.4 | $ | 71.7 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Proceeds from sales of investments | 0 | 609.2 | 366.9 | 0 | 976.1 | ||||||||||||||||
Proceeds from maturities and mandatory calls of investments | 0 | 148 | 95.6 | 0 | 243.6 | ||||||||||||||||
Purchases of investments | 0 | (773.1 | ) | (491.7 | ) | 0 | (1,264.8 | ) | |||||||||||||
Change in short-term investments and foreign regulatory deposits | 0.1 | (12.5 | ) | 18.4 | 0 | 6 | |||||||||||||||
Settlements of foreign currency exchange forward contracts | (0.5 | ) | 0 | 1.1 | 0 | 0.6 | |||||||||||||||
Issuance of intercompany note, net | 0 | 14.5 | (48.5 | ) | 34 | 0 | |||||||||||||||
Purchase of fixed assets | (7.0 | ) | (17.7 | ) | 4.4 | (6.4 | ) | (26.7 | ) | ||||||||||||
Other, net | 0 | (2.4 | ) | (19.1 | ) | 0 | (21.5 | ) | |||||||||||||
Cash (used) provided by investing activities | (7.4 | ) | (34.0 | ) | (72.9 | ) | 27.6 | (86.7 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Borrowings under intercompany note, net | 34 | 0 | 0 | (34.0 | ) | 0 | |||||||||||||||
Redemption of trust preferred securities, net | 0 | 0 | 0 | (18.0 | ) | (18.0 | ) | ||||||||||||||
Payment on note payable | 0 | (0.1 | ) | 0 | 0 | (0.1 | ) | ||||||||||||||
Activity under stock incentive plans | 3.3 | 0 | 0 | 0 | 3.3 | ||||||||||||||||
Repurchase of Company’s common shares | 0 | (40.9 | ) | 0 | 0 | (40.9 | ) | ||||||||||||||
Excess tax expense from share-based payment arrangements | 0 | 0.1 | 0 | 0 | 0.1 | ||||||||||||||||
Payment of cash dividends to common shareholders | (13.4 | ) | 0 | 0 | 0 | (13.4 | ) | ||||||||||||||
Cash provided (used) by financing activities | 23.9 | (40.9 | ) | 0 | (52.0 | ) | (69.0 | ) | |||||||||||||
Effect of exchange rate changes on cash | 0 | 0 | (0.3 | ) | 0 | (0.3 | ) | ||||||||||||||
Change in cash | 0 | (63.1 | ) | (3.2 | ) | (18.0 | ) | (84.3 | ) | ||||||||||||
Cash, beginning of period | 0 | 132.1 | 25.3 | 0 | 157.4 | ||||||||||||||||
Cash, end of period | $ | 0 | $ | 69 | $ | 22.1 | $ | (18.0 | ) | $ | 73.1 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Net cash flows from operating activities | $ | (15.5 | ) | $ | 75.9 | $ | (63.4 | ) | $ | 0 | $ | (3.0 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Proceeds from sales of investments | 0 | 863.2 | 515.6 | 0 | 1,378.80 | ||||||||||||||||
Proceeds from maturities and mandatory calls of investments | 0 | 139 | 85.2 | 0 | 224.2 | ||||||||||||||||
Purchases of investments | 0 | (942.4 | ) | (464.9 | ) | 0 | (1,407.3 | ) | |||||||||||||
Change in short-term investments and foreign regulatory deposits | (0.8 | ) | (38.5 | ) | (36.2 | ) | 0 | (75.5 | ) | ||||||||||||
Settlements of foreign currency exchange forward contracts | 1.9 | 0 | (8.3 | ) | 0 | (6.4 | ) | ||||||||||||||
Issuance of intercompany note, net | 0 | 0 | (24.9 | ) | 24.9 | 0 | |||||||||||||||
Purchase of fixed assets | 0 | (17.7 | ) | (1.4 | ) | 0 | (19.1 | ) | |||||||||||||
Other, net | (0.1 | ) | 4.4 | 0.2 | 0 | 4.5 | |||||||||||||||
Cash provided by investing activities | 1 | 8 | 65.3 | 24.9 | 99.2 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Borrowings under intercompany note, net | 24.9 | 0 | 0 | (24.9 | ) | 0 | |||||||||||||||
Activity under stock incentive plans | 1.4 | 0 | 0 | 0 | 1.4 | ||||||||||||||||
Repurchase of Company’s common shares | 0 | (40.1 | ) | 0 | 0 | (40.1 | ) | ||||||||||||||
Excess tax expense from share-based payment arrangements | 0 | (0.2 | ) | 0.4 | 0 | 0.2 | |||||||||||||||
Payment of cash dividends to common shareholders | (11.8 | ) | 0 | 0 | 0 | (11.8 | ) | ||||||||||||||
Cash provided (used) by financing activities | 14.5 | (40.3 | ) | 0.4 | (24.9 | ) | (50.3 | ) | |||||||||||||
Effect of exchange rate changes on cash | 0 | 0 | (0.1 | ) | 0 | (0.1 | ) | ||||||||||||||
Change in cash | (0.0 | ) | 43.6 | 2.2 | 0 | 45.8 | |||||||||||||||
Cash, beginning of period | 0 | 73.9 | 21.9 | 0 | 95.8 | ||||||||||||||||
Cash, end of period | $ | (0.0 | ) | $ | 117.5 | $ | 24.1 | $ | 0 | $ | 141.6 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 9 Months Ended | |
Sep. 30, 2014 | ||
Accounting Policies [Abstract] | ' | |
Basis of Presentation | ' | |
1 | Basis of Presentation | |
The accompanying consolidated financial statements of Argo Group International Holdings, Ltd. (“Argo Group,” “we” or the “Company”) and its subsidiaries have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions for Form 10-Q and Article 10 of Regulation S-X. The preparation of interim financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. The major estimates reflected in our consolidated financial statements include, but are not limited to, reserves for losses and loss adjustment expenses; reinsurance recoverables, including the reinsurance recoverables allowance for doubtful accounts; estimates of written and earned premiums; reinsurance premium receivable; fair value of investments and assessment of potential impairment; valuation of goodwill and intangibles and our deferred tax asset valuation allowance. Actual results could differ from those estimates. Certain financial information that normally is included in annual financial statements, including certain financial statement footnotes, prepared in accordance with GAAP, is not required for interim reporting purposes and has been condensed or omitted. These statements should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2013, filed with the Securities and Exchange Commission on February 28, 2014. | ||
The interim financial information as of, and for the three and nine months ended, September 30, 2014 and 2013 is unaudited. However, in the opinion of management, the interim information includes all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results presented for the interim periods. The operating results for the interim periods are not necessarily indicative of the results to be expected for the full year. All significant intercompany amounts have been eliminated in consolidation. Certain amounts in prior years’ financial statements have been reclassified to conform to the current presentation. | ||
10% Stock Dividend | ' | |
10% Stock Dividend | ||
On May 7, 2013, our Board of Directors declared a 10% stock dividend, payable on June 17, 2013, to shareholders of record at the close of business on June 3, 2013. As a result of the stock dividend, 2,447,839 additional shares were issued. Cash was paid in lieu of fractional shares of our common shares. All references to share and per share amounts in this document and related disclosures have been adjusted to reflect the stock dividend for all periods presented. |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments | ' | ||||||||||||||||||||||||
The amortized cost, gross unrealized gains, gross unrealized losses and fair value of investments were as follows: | |||||||||||||||||||||||||
September 30, 2014 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 209.8 | $ | 1.5 | $ | 0.5 | $ | 210.8 | |||||||||||||||||
Non-U.S. Governments | 76.9 | 0.6 | 0.5 | 77 | |||||||||||||||||||||
Obligations of states and political subdivisions | 485.6 | 24.2 | 0.6 | 509.2 | |||||||||||||||||||||
Credit-Financial | 489.1 | 12.8 | 1.3 | 500.6 | |||||||||||||||||||||
Credit-Industrial | 461 | 10.3 | 2.8 | 468.5 | |||||||||||||||||||||
Credit-Utility | 146.8 | 4.3 | 0.7 | 150.4 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency (1) | 179.4 | 8.2 | 0.9 | 186.7 | |||||||||||||||||||||
CMO/MBS-non agency | 13.7 | 0.9 | 0 | 14.6 | |||||||||||||||||||||
CMBS (2) | 163.8 | 2.1 | 0.2 | 165.7 | |||||||||||||||||||||
ABS-residential (3) | 5.2 | 0 | 0.3 | 4.9 | |||||||||||||||||||||
ABS-non residential | 209.2 | 0.8 | 0.3 | 209.7 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 140.4 | 1.8 | 7.4 | 134.8 | |||||||||||||||||||||
Credit | 217.7 | 3 | 12.7 | 208 | |||||||||||||||||||||
Total fixed maturities | 2,798.60 | 70.5 | 28.2 | 2,840.90 | |||||||||||||||||||||
Equity securities | 318.7 | 195.2 | 2.6 | 511.3 | |||||||||||||||||||||
Other investments | 398 | 7.3 | 2 | 403.3 | |||||||||||||||||||||
Short-term investments | 356.2 | 0 | 0 | 356.2 | |||||||||||||||||||||
Total investments | $ | 3,871.50 | $ | 273 | $ | 32.8 | $ | 4,111.70 | |||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
(in millions) | Cost | Unrealized | Unrealized | Value | |||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 273.4 | $ | 2.4 | $ | 0.5 | $ | 275.3 | |||||||||||||||||
Non-U.S. Governments | 60.9 | 0.3 | 1 | 60.2 | |||||||||||||||||||||
Obligations of states and political subdivisions | 563.7 | 22.9 | 8.8 | 577.8 | |||||||||||||||||||||
Credit-Financial | 426.3 | 15.4 | 1.8 | 439.9 | |||||||||||||||||||||
Credit-Industrial | 385.5 | 13.8 | 2.2 | 397.1 | |||||||||||||||||||||
Credit-Utility | 162 | 5.4 | 0.8 | 166.6 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency (1) | 219.4 | 9.2 | 1.7 | 226.9 | |||||||||||||||||||||
CMO/MBS-non agency | 19.4 | 0.8 | 0 | 20.2 | |||||||||||||||||||||
CMBS (2) | 162.7 | 3.1 | 1 | 164.8 | |||||||||||||||||||||
ABS-residential (3) | 6.8 | 0.3 | 0.5 | 6.6 | |||||||||||||||||||||
ABS-non residential | 116.8 | 0.5 | 0.1 | 117.2 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 207.7 | 4.9 | 5.9 | 206.7 | |||||||||||||||||||||
Credit | 155.5 | 4.4 | 4.8 | 155.1 | |||||||||||||||||||||
Total fixed maturities | 2,760.10 | 83.4 | 29.1 | 2,814.40 | |||||||||||||||||||||
Equity securities | 346.9 | 188.6 | 1.2 | 534.3 | |||||||||||||||||||||
Other investments | 377.4 | 2.8 | 1.3 | 378.9 | |||||||||||||||||||||
Short-term investments | 351.6 | 0 | 0 | 351.6 | |||||||||||||||||||||
Total investments | $ | 3,836.00 | $ | 274.8 | $ | 31.6 | $ | 4,079.20 | |||||||||||||||||
(1) | Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). | ||||||||||||||||||||||||
(2) | Commercial mortgage-backed securities (“CMBS”). | ||||||||||||||||||||||||
(3) | Asset-backed securities (“ABS”). | ||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity | ' | ||||||||||||||||||||||||
The amortized cost and fair values of fixed maturity investments as of September 30, 2014, by contractual maturity, were as follows: | |||||||||||||||||||||||||
(in millions) | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Due in one year or less | $ | 255.7 | $ | 254.2 | |||||||||||||||||||||
Due after one year through five years | 1,329.30 | 1,343.20 | |||||||||||||||||||||||
Due after five years through ten years | 472.9 | 488.2 | |||||||||||||||||||||||
Thereafter | 169.4 | 173.7 | |||||||||||||||||||||||
Structured securities | 571.3 | 581.6 | |||||||||||||||||||||||
Total | $ | 2,798.60 | $ | 2,840.90 | |||||||||||||||||||||
Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments | ' | ||||||||||||||||||||||||
An aging of unrealized losses on our investments in fixed maturities, equity securities, other investments and short-term investments is presented below: | |||||||||||||||||||||||||
September 30, 2014 | Less Than One Year | One Year or Greater | Total | ||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 59.5 | $ | 0.3 | $ | 16.3 | $ | 0.2 | $ | 75.8 | $ | 0.5 | |||||||||||||
Non-U.S. Governments | 28.3 | 0.1 | 7.5 | 0.4 | 35.8 | 0.5 | |||||||||||||||||||
Obligations of states and political subdivisions | 16.4 | 0.1 | 27.9 | 0.5 | 44.3 | 0.6 | |||||||||||||||||||
Credit-Financial | 149.1 | 1.1 | 14.3 | 0.2 | 163.4 | 1.3 | |||||||||||||||||||
Credit-Industrial | 222.5 | 2.5 | 13.5 | 0.3 | 236 | 2.8 | |||||||||||||||||||
Credit-Utility (2) | 42.5 | 0.7 | 1.9 | 0 | 44.4 | 0.7 | |||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 23.8 | 0.1 | 17.1 | 0.8 | 40.9 | 0.9 | |||||||||||||||||||
CMBS | 29.8 | 0.1 | 6.6 | 0.1 | 36.4 | 0.2 | |||||||||||||||||||
ABS-residential | 0 | 0 | 3.4 | 0.3 | 3.4 | 0.3 | |||||||||||||||||||
ABS-non residential (2) | 106.9 | 0.3 | 3.6 | 0 | 110.5 | 0.3 | |||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 111.5 | 6.9 | 17 | 0.5 | 128.5 | 7.4 | |||||||||||||||||||
Credit | 179.8 | 12.6 | 0.7 | 0.1 | 180.5 | 12.7 | |||||||||||||||||||
Total fixed maturities | 970.1 | 24.8 | 129.8 | 3.4 | 1,099.90 | 28.2 | |||||||||||||||||||
Equity securities | 32.1 | 2.6 | 0 | 0 | 32.1 | 2.6 | |||||||||||||||||||
Other investments | (2.0 | ) | 2 | 0 | 0 | (2.0 | ) | 2 | |||||||||||||||||
Total | $ | 1,000.20 | $ | 29.4 | $ | 129.8 | $ | 3.4 | $ | 1,130.00 | $ | 32.8 | |||||||||||||
December 31, 2013 | Less Than One Year | One Year or Greater | Total | ||||||||||||||||||||||
(in millions) | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 55.3 | $ | 0.5 | $ | 0 | $ | 0 | $ | 55.3 | $ | 0.5 | |||||||||||||
Non-U.S. Governments | 36.3 | 1 | 0 | 0 | 36.3 | 1 | |||||||||||||||||||
Obligations of states and political subdivisions (2) | 154.6 | 8.8 | 3.1 | 0 | 157.7 | 8.8 | |||||||||||||||||||
Credit-Financial | 88.7 | 1.7 | 2.4 | 0.1 | 91.1 | 1.8 | |||||||||||||||||||
Credit-Industrial | 85.7 | 2 | 2.9 | 0.2 | 88.6 | 2.2 | |||||||||||||||||||
Credit-Utility | 21.2 | 0.7 | 1.9 | 0.1 | 23.1 | 0.8 | |||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 58.4 | 1.2 | 5.6 | 0.5 | 64 | 1.7 | |||||||||||||||||||
CMBS (2) | 24.2 | 1 | 1.1 | 0 | 25.3 | 1 | |||||||||||||||||||
ABS-residential | 0 | 0 | 3.6 | 0.5 | 3.6 | 0.5 | |||||||||||||||||||
ABS-non residential (2) | 59.1 | 0.1 | 2 | 0 | 61.1 | 0.1 | |||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 170.5 | 5.9 | 0 | 0 | 170.5 | 5.9 | |||||||||||||||||||
Credit | 125.3 | 4.8 | 0 | 0 | 125.3 | 4.8 | |||||||||||||||||||
Total fixed maturities | 879.3 | 27.7 | 22.6 | 1.4 | 901.9 | 29.1 | |||||||||||||||||||
Equity securities | 25.5 | 1.2 | 0 | 0 | 25.5 | 1.2 | |||||||||||||||||||
Other investments | (1.4 | ) | 1.3 | 0 | 0 | (1.4 | ) | 1.3 | |||||||||||||||||
Short-term investments (1) | 4.5 | 0 | 0 | 0 | 4.5 | 0 | |||||||||||||||||||
Total | $ | 907.9 | $ | 30.2 | $ | 22.6 | $ | 1.4 | $ | 930.5 | $ | 31.6 | |||||||||||||
(1) | Unrealized losses less than one year are less than $0.1 million. | ||||||||||||||||||||||||
(2) | Unrealized losses one year or greater are less than $0.1 million. | ||||||||||||||||||||||||
Schedule of Company's Gross Realized Investment Gains (Losses) | ' | ||||||||||||||||||||||||
The following table presents our gross realized investment gains (losses): | |||||||||||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Realized gains | |||||||||||||||||||||||||
Fixed maturities | $ | 4.5 | $ | 5.8 | $ | 15.2 | $ | 27.5 | |||||||||||||||||
Equity securities | 0.7 | 7.2 | 16.1 | 15 | |||||||||||||||||||||
Other investments | 13.6 | 11.2 | 36.5 | 28.9 | |||||||||||||||||||||
Short-term investments | 0 | 0.1 | 0.1 | 0.1 | |||||||||||||||||||||
Other assets | 2 | 0 | 2 | 0 | |||||||||||||||||||||
Gross realized investment gains | 20.8 | 24.3 | 69.9 | 71.5 | |||||||||||||||||||||
Realized losses | |||||||||||||||||||||||||
Fixed maturities | (1.1 | ) | (6.1 | ) | (8.7 | ) | (14.5 | ) | |||||||||||||||||
Equity securities | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.8 | ) | |||||||||||||||||
Other investments | (6.5 | ) | (8.6 | ) | (12.6 | ) | (24.1 | ) | |||||||||||||||||
Short-term investments | 0 | (0.3 | ) | (0.3 | ) | (0.6 | ) | ||||||||||||||||||
Other assets | 0 | 0 | (4.0 | ) | 0 | ||||||||||||||||||||
Other-than-temporary impairment losses on fixed maturities | 0 | 0 | (1.2 | ) | (0.3 | ) | |||||||||||||||||||
Other-than-temporary impairment losses on equity securities | (0.2 | ) | (0.1 | ) | (0.4 | ) | (1.6 | ) | |||||||||||||||||
Gross realized investment and other losses | (7.9 | ) | (15.2 | ) | (27.4 | ) | (41.9 | ) | |||||||||||||||||
Net realized investment gains and other | $ | 12.9 | $ | 9.1 | $ | 42.5 | $ | 29.6 | |||||||||||||||||
Financial Assets Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||
Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows: | |||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
(in millions) | September 30, 2014 | Level 1 (a) | Level 2 (b) | Level 3 (c) | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 210.8 | $ | 120.8 | $ | 90 | $ | 0 | |||||||||||||||||
Non-U.S. Governments | 77 | 0 | 77 | 0 | |||||||||||||||||||||
Obligations of states and political subdivisions | 509.2 | 0 | 509.2 | 0 | |||||||||||||||||||||
Credit-Financial | 500.6 | 0 | 500.6 | 0 | |||||||||||||||||||||
Credit-Industrial | 468.5 | 0 | 468.5 | 0 | |||||||||||||||||||||
Credit-Utility | 150.4 | 0 | 150.4 | 0 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 186.7 | 0 | 186.7 | 0 | |||||||||||||||||||||
CMO/MBS-non agency | 14.6 | 0 | 14.6 | 0 | |||||||||||||||||||||
CMBS | 165.7 | 0 | 165.7 | 0 | |||||||||||||||||||||
ABS-residential | 4.9 | 0 | 4.9 | 0 | |||||||||||||||||||||
ABS-non residential | 209.7 | 0 | 209.7 | 0 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 134.8 | 0 | 134.8 | 0 | |||||||||||||||||||||
Credit | 208 | 0 | 208 | 0 | |||||||||||||||||||||
Total fixed maturities | 2,840.90 | 120.8 | 2,720.10 | 0 | |||||||||||||||||||||
Equity securities | 511.3 | 471 | 39.3 | 1 | |||||||||||||||||||||
Other investments | 98.1 | 0 | 98.1 | 0 | |||||||||||||||||||||
Short-term investments | 356.2 | 354.1 | 2.1 | 0 | |||||||||||||||||||||
$ | 3,806.50 | $ | 945.9 | $ | 2,859.60 | $ | 1 | ||||||||||||||||||
(a) | Quoted prices in active markets for identical assets | ||||||||||||||||||||||||
(b) | Significant other observable inputs | ||||||||||||||||||||||||
(c) | Significant unobservable inputs | ||||||||||||||||||||||||
Fair Value Measurements at Reporting Date Using | |||||||||||||||||||||||||
(in millions) | December 31, 2013 | Level 1 (a) | Level 2 (b) | Level 3 (c) | |||||||||||||||||||||
Fixed maturities | |||||||||||||||||||||||||
USD denominated: | |||||||||||||||||||||||||
U.S. Governments | $ | 275.3 | $ | 143.8 | $ | 131.5 | $ | 0 | |||||||||||||||||
Non-U.S. Governments | 60.2 | 0 | 60.2 | 0 | |||||||||||||||||||||
Obligations of states and political subdivisions | 577.8 | 0 | 577.8 | 0 | |||||||||||||||||||||
Credit-Financial | 439.9 | 0 | 439.9 | 0 | |||||||||||||||||||||
Credit-Industrial | 397.1 | 0 | 397.1 | 0 | |||||||||||||||||||||
Credit-Utility | 166.6 | 0 | 166.6 | 0 | |||||||||||||||||||||
Structured securities: | |||||||||||||||||||||||||
CMO/MBS-agency | 226.9 | 0 | 226.9 | 0 | |||||||||||||||||||||
CMO/MBS-non agency | 20.2 | 0 | 20.2 | 0 | |||||||||||||||||||||
CMBS | 164.8 | 0 | 164.8 | 0 | |||||||||||||||||||||
ABS-residential | 6.6 | 0 | 6.6 | 0 | |||||||||||||||||||||
ABS-non residential | 117.2 | 0 | 117.2 | 0 | |||||||||||||||||||||
Foreign denominated: | |||||||||||||||||||||||||
Governments | 206.7 | 0 | 206.7 | 0 | |||||||||||||||||||||
Credit | 155.1 | 0 | 155.1 | 0 | |||||||||||||||||||||
Total fixed maturities | 2,814.40 | 143.8 | 2,670.60 | 0 | |||||||||||||||||||||
Equity securities | 534.3 | 476.7 | 56.3 | 1.3 | |||||||||||||||||||||
Other investments | 117.8 | 0 | 117.8 | 0 | |||||||||||||||||||||
Short-term investments | 351.6 | 347 | 4.6 | 0 | |||||||||||||||||||||
Other assets | 2.6 | 0 | 0 | 2.6 | |||||||||||||||||||||
$ | 3,820.70 | $ | 967.5 | $ | 2,849.30 | $ | 3.9 | ||||||||||||||||||
(a) | Quoted prices in active markets for identical assets | ||||||||||||||||||||||||
(b) | Significant other observable inputs | ||||||||||||||||||||||||
(c) | Significant unobservable inputs | ||||||||||||||||||||||||
Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending balances for the investments categorized as Level 3 are as follows: | |||||||||||||||||||||||||
Fair Value Measurements Using Observable Inputs (Level 3) | |||||||||||||||||||||||||
(in millions) | Equity | Other Assets | Total | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance, January 1, 2014 | $ | 1.3 | $ | 2.6 | $ | 3.9 | |||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||||
Included in net income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||||||
Purchases | 0 | 0 | 0 | ||||||||||||||||||||||
Issuances | 0 | 0 | 0 | ||||||||||||||||||||||
Sales | (0.3 | ) | 0 | (0.3 | ) | ||||||||||||||||||||
Settlements | 0 | (2.6 | ) | (2.6 | ) | ||||||||||||||||||||
Ending balance, September 30, 2014 | $ | 1 | $ | 0 | $ | 1 | |||||||||||||||||||
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at September 30, 2014 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
(in millions) | Equity | Other Assets | Total | ||||||||||||||||||||||
Securities | |||||||||||||||||||||||||
Beginning balance, January 1, 2013 | $ | 1.8 | $ | 6.9 | $ | 8.7 | |||||||||||||||||||
Transfers into Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Transfers out of Level 3 | 0 | 0 | 0 | ||||||||||||||||||||||
Total gains or losses (realized/unrealized): | |||||||||||||||||||||||||
Included in net income (loss) | 0.1 | 0 | 0.1 | ||||||||||||||||||||||
Included in other comprehensive income (loss) | 0 | 0 | 0 | ||||||||||||||||||||||
Purchases, issuances, sales, and settlements | |||||||||||||||||||||||||
Purchases | 0 | 0 | 0 | ||||||||||||||||||||||
Issuances | 0 | 0 | 0 | ||||||||||||||||||||||
Sales | (0.6 | ) | 0 | (0.6 | ) | ||||||||||||||||||||
Settlements | 0 | (4.3 | ) | (4.3 | ) | ||||||||||||||||||||
Ending balance, December 31, 2013 | $ | 1.3 | $ | 2.6 | $ | 3.9 | |||||||||||||||||||
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at December 31, 2013 | $ | 0 | $ | 0 | $ | 0 | |||||||||||||||||||
Reserves_for_Losses_and_Loss_A1
Reserves for Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Insurance [Abstract] | ' | ||||||||
Reinsurance Recoverables | ' | ||||||||
The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): | |||||||||
For the Nine Months | |||||||||
Ended September 30, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Net reserves beginning of the year | $ | 2,107.60 | $ | 2,110.90 | |||||
Add: | |||||||||
Losses and LAE incurred during current calendar year, net of reinsurance: | |||||||||
Current accident year | 585.9 | 575.6 | |||||||
Prior accident years | (26.4 | ) | (21.5 | ) | |||||
Losses and LAE incurred during calendar year, net of reinsurance | 559.5 | 554.1 | |||||||
Deduct: | |||||||||
Losses and LAE payments made during current calendar year, net of reinsurance: | |||||||||
Current accident year | 115.3 | 131.7 | |||||||
Prior accident years | 435.5 | 429 | |||||||
Losses and LAE payments made during current calendar year, net of reinsurance | 550.8 | 560.7 | |||||||
Add: | |||||||||
Change in participation interest (1) | 24.7 | 10.4 | |||||||
Foreign exchange adjustments | (4.9 | ) | (6.3 | ) | |||||
Net reserves - end of period | 2,136.10 | 2,108.40 | |||||||
Add: | |||||||||
Reinsurance recoverables on unpaid losses and LAE, end of period | 926.5 | 1,114.50 | |||||||
Gross reserves - end of period | $ | 3,062.60 | $ | 3,222.90 | |||||
(1) | Amount represents increase in reserves due to change in syndicate participation. |
Disclosures_about_Fair_Value_o1
Disclosures about Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value | ' | ||||||||||||||||
A summary of our financial instruments whose carrying value did not equal fair value is shown below: | |||||||||||||||||
September 30, 2014 | December 31, 2013 | ||||||||||||||||
(in millions) | Carrying | Fair Value | Carrying | Fair Value | |||||||||||||
Amount | Amount | ||||||||||||||||
Junior subordinated debentures | $ | 172.7 | $ | 155.5 | $ | 193.3 | $ | 155.5 | |||||||||
Senior unsecured fixed rate notes | 143.8 | 132.3 | 143.8 | 116.2 | |||||||||||||
Other indebtedness: | |||||||||||||||||
Floating rate loan stock | 63.8 | 57.4 | 65.5 | 52.7 | |||||||||||||
Note payable | 0.6 | 0.6 | 0.8 | 0.6 | |||||||||||||
$ | 380.9 | $ | 345.8 | $ | 403.4 | $ | 325 | ||||||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||||||
Schedule of Repurchase of Shares | ' | ||||||||||||||||||||
In 2014, we repurchased shares under Securities Exchange Act of 1934 Rule 10b5-1 trading plans as follows: | |||||||||||||||||||||
Date Trading | 2014 | Number of | Average Price of | Total Cost | Repurchase | ||||||||||||||||
Plan Initiated | Purchase Period | Shares Repurchased | Shares Repurchased | (in millions) | Authorization Year | ||||||||||||||||
12/17/13 | 02/04/14-02/12/14 | 15,789 | $ | 43.28 | $ | 0.7 | 2013 | ||||||||||||||
3/18/14 | 03/18/14-04/28/14 | 436,867 | $ | 45.81 | $ | 20 | 2013 | ||||||||||||||
6/13/14 | 06/17/14-08/04/14 | 41,362 | $ | 49.94 | $ | 2.1 | 2013 | ||||||||||||||
9/12/14 | 09/16/14-09/30/14 | 86,234 | $ | 52.17 | $ | 4.5 | 2013 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Equity [Abstract] | ' | ||||||||||||||||
Changes in Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the nine months ended September 30, 2014 and 2013 is presented in the following tables: | |||||||||||||||||
(in millions) | Foreign Currency | Unrealized | Defined Benefit | Total | |||||||||||||
Translation | Holding Gains | Pension Plans | |||||||||||||||
Adjustments | on Securities | ||||||||||||||||
Beginning balance, January 1, 2014 | $ | (11.5 | ) | $ | 163.9 | $ | (4.6 | ) | $ | 147.8 | |||||||
Other comprehensive income before reclassifications | (1.9 | ) | 5.4 | 0 | 3.5 | ||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | (14.8 | ) | 0 | (14.8 | ) | |||||||||||
Net current-period other comprehensive income | (1.9 | ) | (9.4 | ) | 0 | (11.3 | ) | ||||||||||
Ending balance, September 30, 2014 | $ | (13.4 | ) | $ | 154.5 | $ | (4.6 | ) | $ | 136.5 | |||||||
(in millions) | Foreign Currency | Unrealized | Defined Benefit | Total | |||||||||||||
Translation | Holding Gains | Pension Plans | |||||||||||||||
Adjustments | on Securities | ||||||||||||||||
Beginning balance, January 1, 2013 | $ | (8.7 | ) | $ | 204.1 | $ | (5.9 | ) | $ | 189.5 | |||||||
Other comprehensive loss before reclassifications | (2.2 | ) | (23.9 | ) | 0 | (26.1 | ) | ||||||||||
Amounts reclassified from accumulated other comprehensive loss | 0 | (11.6 | ) | 0 | (11.6 | ) | |||||||||||
Net current-period other comprehensive loss | (2.2 | ) | (35.5 | ) | 0 | (37.7 | ) | ||||||||||
Ending balance, September 30, 2013 | $ | (10.9 | ) | $ | 168.6 | $ | (5.9 | ) | $ | 151.8 | |||||||
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The amounts reclassified from accumulated other comprehensive income (loss) shown in the above table have been included in the following captions in our Consolidated Statements of Income: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Unrealized gains and losses on securities | |||||||||||||||||
Net realized investment gains | $ | (5.8 | ) | $ | (3.3 | ) | $ | (22.0 | ) | $ | (18.3 | ) | |||||
Provision for income taxes | 4.1 | 2 | 7.2 | 6.7 | |||||||||||||
Net of taxes | $ | (1.7 | ) | $ | (1.3 | ) | $ | (14.8 | ) | $ | (11.6 | ) | |||||
Net_Income_Per_Common_Share_Ta
Net Income Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||||||
Net Income Per Common Share on Basic and Diluted Basis | ' | ||||||||||||||||
The following table presents the calculation of net income per common share on a basic and diluted basis: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions, except number of shares and per share amounts) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $ | 44.7 | $ | 31 | $ | 123.5 | $ | 95.4 | |||||||||
Weighted average common shares outstanding - basic | 25,956,599 | 26,682,176 | 26,203,819 | 26,961,792 | |||||||||||||
Effect of dilutive securities: | |||||||||||||||||
Equity compensation awards | 480,334 | 1,137,374 | 466,357 | 1,031,543 | |||||||||||||
Weighted average common shares outstanding - diluted | 26,436,933 | 27,819,550 | 26,670,176 | 27,993,335 | |||||||||||||
Net income per common share - basic | $ | 1.72 | $ | 1.16 | $ | 4.71 | $ | 3.54 | |||||||||
Net income per common share - diluted | $ | 1.69 | $ | 1.12 | $ | 4.63 | $ | 3.41 | |||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Cash Flow Elements [Abstract] | ' | ||||||||
Schedule of Interest Paid | ' | ||||||||
Interest paid. Interest paid was as follows: | |||||||||
For the Nine Months | |||||||||
Ended September 30, | |||||||||
(in millions) | 2014 | 2013 | |||||||
Senior unsecured fixed rate notes | $ | 7 | $ | 7 | |||||
Junior subordinated debentures | 5.8 | 6 | |||||||
Other indebtedness | 2.3 | 2.1 | |||||||
Total interest paid | $ | 15.1 | $ | 15.1 | |||||
Sharebased_Compensation_Tables
Share-based Compensation (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Fair Value Assumptions | ' | ||||||||
The following table summarizes the assumptions we used for the nine months ended September 30, 2014 and 2013: | |||||||||
2014 | 2013 | ||||||||
Risk-free rate of return | 1.77 | % | 1.44 | % | |||||
Expected dividend yields | 1.49 | % | 1.55 | % | |||||
Expected award life (years) | 4.67 | 4.92 | |||||||
Expected volatility | 22.84 | % | 31.12 | % | |||||
Summary of Restricted Share Activity | ' | ||||||||
A summary of restricted share activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Grant Date | |||||||||
Fair Value | |||||||||
Outstanding at January 1, 2014 | 257,975 | $ | 32.97 | ||||||
Granted | 107,696 | $ | 44.93 | ||||||
Vested and issued | (58,680 | ) | $ | 31.62 | |||||
Expired or forfeited | (35,511 | ) | $ | 33.08 | |||||
Outstanding at September 30, 2014 | 271,480 | $ | 37.99 | ||||||
Summary of Stock-Settled SARs Activity | ' | ||||||||
A summary of stock-settled SARs activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 1,288,698 | $ | 29.47 | ||||||
Granted | 188,273 | $ | 43.23 | ||||||
Exercised | (107,979 | ) | $ | 29.4 | |||||
Expired or forfeited | (68,523 | ) | $ | 32.95 | |||||
Outstanding at September 30, 2014 | 1,300,469 | $ | 31.28 | ||||||
Summary of Cash-Settled SARs Activity | ' | ||||||||
A summary of cash-settled SARs activity as of September 30, 2014 and changes during the nine months then ended is as follows: | |||||||||
Shares | Weighted-Average | ||||||||
Exercise Price | |||||||||
Outstanding at January 1, 2014 | 1,743,758 | $ | 33 | ||||||
Granted | 756,853 | $ | 44.28 | ||||||
Exercised | (386,615 | ) | $ | 30.94 | |||||
Expired or forfeited | (170,195 | ) | $ | 35.49 | |||||
Outstanding at September 30, 2014 | 1,943,801 | $ | 37.58 | ||||||
Underwriting_Acquisition_and_I1
Underwriting, Acquisition and Insurance Expenses (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||
Underwriting, Acquisition and Insurance Expenses | ' | ||||||||||||||||
Underwriting, acquisition and insurance expenses were as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Commissions | $ | 59.8 | $ | 57.2 | $ | 178 | $ | 174.7 | |||||||||
General expenses | 69 | 65.4 | 211.9 | 200.8 | |||||||||||||
Premium taxes, boards and bureaus | 7.2 | 6.8 | 19.5 | 19.7 | |||||||||||||
136 | 129.4 | 409.4 | 395.2 | ||||||||||||||
Net deferral amortization of policy acquisition costs | (2.2 | ) | (2.7 | ) | (10.1 | ) | (17.2 | ) | |||||||||
Total underwriting, acquisition and insurance expenses | $ | 133.8 | $ | 126.7 | $ | 399.3 | $ | 378 | |||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||||||
Income Tax Provision (Benefit) | ' | ||||||||||||||||
Our income tax provision includes the following components: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Current tax provision | $ | (15.0 | ) | $ | 3.5 | $ | (10.7 | ) | $ | 13.4 | |||||||
Deferred tax provision related to: | |||||||||||||||||
Future tax deductions | 19.7 | (2.4 | ) | 52.9 | 2 | ||||||||||||
Valuation allowance change | (1.1 | ) | 0.8 | (30.0 | ) | 2.4 | |||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates | ' | ||||||||||||||||
For the three and nine months ended September 30, 2014 and 2013, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: | |||||||||||||||||
For the Three Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in millions) | Pre-tax | Effective Tax | Pre-tax | Effective Tax | |||||||||||||
Income (Loss) | Rate | Income (Loss) | Rate | ||||||||||||||
Bermuda | $ | 27.5 | 0 | % | $ | 14.2 | 0 | % | |||||||||
United States | 13.5 | 16.2 | % | 19.6 | 22.9 | % | |||||||||||
United Kingdom | 9.2 | 15.4 | % | 1.6 | -164.7 | % | |||||||||||
Belgium | (0.1 | ) | -7.9 | % | 0.1 | 91.6 | % | ||||||||||
Brazil | (1.2 | ) | 0 | % | (1.5 | ) | 0 | % | |||||||||
United Arab Emirates | 0 | 0 | % | (0.4 | ) | 0 | % | ||||||||||
Ireland | 0 | 0 | % | (0.1 | ) | 0 | % | ||||||||||
Malta | (0.8 | ) | 0 | % | (0.6 | ) | 0 | % | |||||||||
Switzerland | 0.2 | 4.8 | % | 0 | (1) | 19.7 | % | ||||||||||
Pre-tax income | $ | 48.3 | $ | 32.9 | |||||||||||||
(1) | Pre-tax income for the respective period was less than $0.1 million. | ||||||||||||||||
For the Nine Months Ended September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(in millions) | Pre-tax | Effective Tax | Pre-tax | Effective Tax | |||||||||||||
Income (Loss) | Rate | Income (Loss) | Rate | ||||||||||||||
Bermuda | $ | 74.3 | 0 | % | $ | 34.2 | 0 | % | |||||||||
United States | 49.2 | 20.9 | % | 68.6 | 23.5 | % | |||||||||||
United Kingdom | 11.1 | 17.1 | % | 18.3 | 9.2 | % | |||||||||||
Belgium | (0.1 | ) | -32.4 | % | 0.1 | 26.9 | % | ||||||||||
Brazil | 3.9 | 0 | % | (6.2 | ) | 0 | % | ||||||||||
United Arab Emirates | (0.9 | ) | 0 | % | (0.4 | ) | 0 | % | |||||||||
Ireland | 0 | 0 | % | (0.1 | ) | 0 | % | ||||||||||
Malta | (1.8 | ) | 0 | % | (1.3 | ) | 0 | % | |||||||||
Switzerland | 0 | (2) | 24.2 | % | 0 | (2) | 21 | % | |||||||||
Pre-tax income | $ | 135.7 | $ | 113.2 | |||||||||||||
(2) | Pre-tax income for the respective period was less than $0.1 million. | ||||||||||||||||
Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate | ' | ||||||||||||||||
A reconciliation of the difference between the provision for income taxes and the expected tax provision at the weighted average tax rate is as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income tax provision at expected rate | $ | 6.1 | $ | 6.2 | $ | 20.6 | $ | 25.2 | |||||||||
Tax effect of: | |||||||||||||||||
Tax-exempt interest | (1.1 | ) | (1.3 | ) | (3.4 | ) | (4.1 | ) | |||||||||
Dividends received deduction | (0.5 | ) | (0.7 | ) | (1.7 | ) | (1.8 | ) | |||||||||
Valuation allowance change | (1.1 | ) | 0.8 | (30.0 | ) | 2.4 | |||||||||||
Other permanent adjustments, net | (0.1 | ) | (0.5 | ) | (1.0 | ) | (1.4 | ) | |||||||||
Adjustment for prior year tax return | (1.1 | ) | 0 | (1.1 | ) | 0 | |||||||||||
Adjustment for annualized rate - United States | 0.3 | 0.3 | 0.5 | (0.1 | ) | ||||||||||||
Adjustment for annualized rate - Foreign | 0.5 | 0 | (1.4 | ) | 0 | ||||||||||||
Prior period adjustment to deferred | 0.9 | 0 | (0.2 | ) | 0 | ||||||||||||
United States state tax benefit | 0 | (0.1 | ) | 0 | (0.4 | ) | |||||||||||
PXRE Reinsurance capital loss carryforward | 0 | 0 | 29.8 | 0 | |||||||||||||
Deferred tax rate reduction | (0.1 | ) | (1.3 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Foreign exchange adjustments | (0.2 | ) | (1.7 | ) | (0.1 | ) | (1.3 | ) | |||||||||
Foreign withholding taxes | 0 | 0.2 | 0.3 | 0.6 | |||||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
Income tax provision (benefit) - Foreign | $ | 1.5 | $ | (2.6 | ) | $ | 2 | $ | 1.7 | ||||||||
Income tax provision - United States Federal | 2.1 | 4.4 | 9.8 | 16.1 | |||||||||||||
Income tax (benefit) provision - United States State | 0 | (0.1 | ) | 0.1 | (0.6 | ) | |||||||||||
Foreign withholding tax - United States | 0 | 0.2 | 0.3 | 0.6 | |||||||||||||
Income tax provision | $ | 3.6 | $ | 1.9 | $ | 12.2 | $ | 17.8 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||
Revenue and Income (Loss) Before Income Taxes for Each Segment | ' | ||||||||||||||||
Revenue and income (loss) before income taxes for each segment were as follows: | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | |||||||||||||||||
Earned premiums | |||||||||||||||||
Excess and Surplus Lines | $ | 121.2 | $ | 120.6 | $ | 363.9 | $ | 334.4 | |||||||||
Commercial Specialty | 72.7 | 74.6 | 215.5 | 225.1 | |||||||||||||
International Specialty | 38 | 37.5 | 112.6 | 106.6 | |||||||||||||
Syndicate 1200 | 104.4 | 97.3 | 305.9 | 295.6 | |||||||||||||
Run-off Lines | 1.3 | 0.5 | 1.5 | 0.5 | |||||||||||||
Total earned premiums | 337.6 | 330.5 | 999.4 | 962.2 | |||||||||||||
Net investment income | |||||||||||||||||
Excess and Surplus Lines | 8.9 | 10.2 | 27.2 | 32.3 | |||||||||||||
Commercial Specialty | 4.5 | 5.6 | 13.8 | 17.6 | |||||||||||||
International Specialty | 2.3 | 2.4 | 6.1 | 6.4 | |||||||||||||
Syndicate 1200 | 2.1 | 2.5 | 7.9 | 8.1 | |||||||||||||
Run-off Lines | 2.4 | 2.6 | 7.2 | 8.2 | |||||||||||||
Corporate and Other | 0.6 | 0.8 | 2.5 | 4.7 | |||||||||||||
Total net investment income | 20.8 | 24.1 | 64.7 | 77.3 | |||||||||||||
Fee income, net | 1.6 | 0.3 | 0.1 | 0.5 | |||||||||||||
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 | |||||||||||||
Total revenue | $ | 372.9 | $ | 364 | $ | 1,106.70 | $ | 1,069.60 | |||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Income (loss) before income taxes | |||||||||||||||||
Excess and Surplus Lines | $ | 27.6 | $ | 29.6 | $ | 75.9 | $ | 60.2 | |||||||||
Commercial Specialty | 8 | 10.1 | 9.2 | 17.3 | |||||||||||||
International Specialty | 4 | 0.5 | 16.4 | 8.1 | |||||||||||||
Syndicate 1200 | 8.8 | 8.5 | 34.7 | 26.7 | |||||||||||||
Run-off Lines | (8.3 | ) | (9.1 | ) | (17.6 | ) | (5.8 | ) | |||||||||
Total segment income before taxes | 40.1 | 39.6 | 118.6 | 106.5 | |||||||||||||
Corporate and Other | (4.7 | ) | (15.8 | ) | (25.4 | ) | (22.9 | ) | |||||||||
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 | |||||||||||||
Total income before income taxes | $ | 48.3 | $ | 32.9 | $ | 135.7 | $ | 113.2 | |||||||||
Schedule of Earned Premiums by Geographic Location | ' | ||||||||||||||||
The table below presents earned premiums by geographic location for the three and nine months ended September 30, 2014 and 2013. For this disclosure, we determine geographic location by the country of domicile of our subsidiaries that underwrite the business and not by the location of insureds or reinsureds from whom the business was generated. | |||||||||||||||||
For the Three Months | For the Nine Months | ||||||||||||||||
Ended September 30, | Ended September 30, | ||||||||||||||||
(in millions) | 2014 | 2013 | 2014 | 2013 | |||||||||||||
Bermuda | $ | 27 | $ | 27.4 | $ | 75.7 | $ | 75.3 | |||||||||
Brazil | 11 | 9.9 | 35.4 | 29.9 | |||||||||||||
Malta | 0.5 | 0.5 | 1.6 | 1.3 | |||||||||||||
United Kingdom | 104.4 | 97.7 | 305.9 | 296 | |||||||||||||
United States | 194.7 | 195 | 580.8 | 559.7 | |||||||||||||
Total earned premiums | $ | 337.6 | $ | 330.5 | $ | 999.4 | $ | 962.2 | |||||||||
Identifiable Assets | ' | ||||||||||||||||
The following table presents our identifiable assets. | |||||||||||||||||
(in millions) | September 30, | December 31, | |||||||||||||||
2014 | 2013 | ||||||||||||||||
Excess and Surplus Lines | $ | 2,383.80 | $ | 2,252.20 | |||||||||||||
Commercial Specialty | 1,287.00 | 1,333.40 | |||||||||||||||
International Specialty | 771.5 | 743.6 | |||||||||||||||
Syndicate 1200 | 1,287.20 | 1,638.80 | |||||||||||||||
Run-off Lines | 586.2 | 555.9 | |||||||||||||||
Corporate and Other | 72.9 | 67.1 | |||||||||||||||
Total | $ | 6,388.60 | $ | 6,591.00 | |||||||||||||
Information_Provided_in_Connec1
Information Provided in Connection with Outstanding Debt of Subsidiaries (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Text Block [Abstract] | ' | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
September 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments | $ | 1.9 | $ | 2,847.80 | $ | 1,262.00 | $ | 0 | $ | 4,111.70 | |||||||||||
Cash | 0 | 69 | 22.1 | (18.0 | ) | 73.1 | |||||||||||||||
Accrued investment income | 0 | 17.2 | 5 | 0 | 22.2 | ||||||||||||||||
Premiums receivable | 0 | 161 | 235.7 | 0 | 396.7 | ||||||||||||||||
Reinsurance recoverables | 0 | 1,188.70 | (186.4 | ) | 0 | 1,002.30 | |||||||||||||||
Goodwill and other intangible assets, net | 0 | 135.6 | 99.9 | 0 | 235.5 | ||||||||||||||||
Current income taxes receivable, net | 0 | 25.3 | 4.7 | 0 | 30 | ||||||||||||||||
Deferred acquisition costs, net | 0 | 58.4 | 71.6 | 0 | 130 | ||||||||||||||||
Ceded unearned premiums | 0 | 100.9 | 126.1 | 0 | 227 | ||||||||||||||||
Other assets | 10.4 | 104.1 | 52.6 | (7.0 | ) | 160.1 | |||||||||||||||
Due from affiliates | 7 | (18.8 | ) | 18.8 | (7.0 | ) | 0 | ||||||||||||||
Intercompany note receivable | 0 | 71.4 | (71.4 | ) | 0 | 0 | |||||||||||||||
Investments in subsidiaries | 1,710.80 | 0 | 0 | (1,710.8 | ) | 0 | |||||||||||||||
Total assets | $ | 1,730.10 | $ | 4,760.60 | $ | 1,640.70 | $ | (1,742.8 | ) | $ | 6,388.60 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Reserves for losses and loss adjustment expenses | $ | 0 | $ | 2,160.50 | $ | 902.1 | $ | 0 | $ | 3,062.60 | |||||||||||
Unearned premiums | 0 | 453.1 | 412.3 | 0 | 865.4 | ||||||||||||||||
Funds held and ceded reinsurance payable, net | 0 | 658.5 | (419.7 | ) | 0 | 238.8 | |||||||||||||||
Long-term debt | 49 | 288.7 | 63.8 | (20.6 | ) | 380.9 | |||||||||||||||
Deferred tax liabilities, net | 0 | 47.1 | 8.6 | 0 | 55.7 | ||||||||||||||||
Accrued underwriting expenses and other liabilities | 13.3 | 93.5 | 51.5 | 0 | 158.3 | ||||||||||||||||
Intercompany note payable | 40.9 | 0 | 0 | (40.9 | ) | 0 | |||||||||||||||
Total liabilities | 103.2 | 3,701.40 | 1,018.60 | (61.5 | ) | 4,761.70 | |||||||||||||||
Total shareholders’ equity | 1,626.90 | 1,059.20 | 622.1 | (1,681.3 | ) | 1,626.90 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,730.10 | $ | 4,760.60 | $ | 1,640.70 | $ | (1,742.8 | ) | $ | 6,388.60 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING BALANCE SHEET | |||||||||||||||||||||
December 31, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
Investments | $ | 1.1 | $ | 2,785.10 | $ | 1,293.00 | $ | 0 | $ | 4,079.20 | |||||||||||
Cash | 0 | 132.1 | 25.3 | 0 | 157.4 | ||||||||||||||||
Accrued investment income | 0 | 19.7 | 6 | 0 | 25.7 | ||||||||||||||||
Premiums receivable | 0 | 150.8 | 197.6 | 0 | 348.4 | ||||||||||||||||
Reinsurance recoverables | 0 | 1,145.90 | 117.6 | 0 | 1,263.50 | ||||||||||||||||
Goodwill and other intangible assets, net | 0 | 137.4 | 102.4 | 0 | 239.8 | ||||||||||||||||
Current income taxes receivable, net | 0 | 0.5 | (0.5 | ) | 0 | 0 | |||||||||||||||
Deferred acquisition costs, net | 0 | 55.6 | 58.3 | 0 | 113.9 | ||||||||||||||||
Ceded unearned premiums | 0 | 88.2 | 108.1 | 0 | 196.3 | ||||||||||||||||
Other assets | 4.6 | 97.8 | 64.4 | 0 | 166.8 | ||||||||||||||||
Due from affiliates | 3.1 | 1.5 | (1.5 | ) | (3.1 | ) | 0 | ||||||||||||||
Intercompany note receivable | 0 | 87.4 | (87.4 | ) | 0 | 0 | |||||||||||||||
Investments in subsidiaries | 1,625.20 | 0 | 0 | (1,625.2 | ) | 0 | |||||||||||||||
Total assets | $ | 1,634.00 | $ | 4,702.00 | $ | 1,883.30 | $ | (1,628.3 | ) | $ | 6,591.00 | ||||||||||
Liabilities and Shareholders’ Equity | |||||||||||||||||||||
Reserves for losses and loss adjustment expenses | $ | 0 | $ | 2,157.00 | $ | 1,073.30 | $ | 0 | $ | 3,230.30 | |||||||||||
Unearned premiums | 0 | 425.5 | 353.6 | 0 | 779.1 | ||||||||||||||||
Funds held and ceded reinsurance payable, net | 0 | 642.4 | (244.0 | ) | 0 | 398.4 | |||||||||||||||
Long-term debt | 49 | 288.9 | 65.5 | 0 | 403.4 | ||||||||||||||||
Current income taxes payable, net | 0 | 8.9 | (3.7 | ) | 0 | 5.2 | |||||||||||||||
Deferred tax liabilities, net | 0 | 22.8 | 5.9 | 0 | 28.7 | ||||||||||||||||
Accrued underwriting expenses and other liabilities | 15.4 | 98.2 | 69.3 | 0 | 182.9 | ||||||||||||||||
Intercompany note payable | 6.6 | 0 | 0 | (6.6 | ) | 0 | |||||||||||||||
Total liabilities | 71 | 3,643.70 | 1,319.90 | (6.6 | ) | 5,028.00 | |||||||||||||||
Total shareholders’ equity | 1,563.00 | 1,058.30 | 563.4 | (1,621.7 | ) | 1,563.00 | |||||||||||||||
Total liabilities and shareholders’ equity | $ | 1,634.00 | $ | 4,702.00 | $ | 1,883.30 | $ | (1,628.3 | ) | $ | 6,591.00 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
Condensed Consolidating Statement of Income | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 114.2 | $ | 223.4 | $ | 0 | $ | 337.6 | |||||||||||
Net investment (loss) income | (0.1 | ) | 13.6 | 7.3 | 0 | 20.8 | |||||||||||||||
Fee income, net | 0 | 1.5 | 0.1 | 0 | 1.6 | ||||||||||||||||
Net realized investment gains and other | 0 | 9.2 | 3.7 | 0 | 12.9 | ||||||||||||||||
Total revenue | (0.1 | ) | 138.5 | 234.5 | 0 | 372.9 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 69.9 | 122 | 0 | 191.9 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 2.3 | 51.6 | 79.9 | 0 | 133.8 | ||||||||||||||||
Interest expense | 0.7 | 3.8 | 0.6 | (0.2 | ) | 4.9 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.3 | (6.3 | ) | 0 | (6.0 | ) | ||||||||||||||
Total expenses | 3 | 125.6 | 196.2 | (0.2 | ) | 324.6 | |||||||||||||||
(Loss) income before income taxes | (3.1 | ) | 12.9 | 38.3 | 0.2 | 48.3 | |||||||||||||||
Provision for income taxes | 0 | 2.1 | 1.5 | 0 | 3.6 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (3.1 | ) | 10.8 | 36.8 | 0.2 | 44.7 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 47.9 | 0 | 0 | (47.9 | ) | 0 | |||||||||||||||
Net income | $ | 44.8 | $ | 10.8 | $ | 36.8 | $ | (47.7 | ) | $ | 44.7 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 105.2 | $ | 225.3 | $ | 0 | $ | 330.5 | |||||||||||
Net investment income | 0 | 16.7 | 7.7 | (0.3 | ) | 24.1 | |||||||||||||||
Fee income, net | 0 | (0.6 | ) | 0.9 | 0 | 0.3 | |||||||||||||||
Net realized investment gains and other | 0 | 7.2 | 1.9 | 0 | 9.1 | ||||||||||||||||
Total revenue | 0 | 128.5 | 235.8 | (0.3 | ) | 364 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 65.9 | 125 | 0 | 190.9 | ||||||||||||||||
Other reinsurance-related expenses | 0 | (2.9 | ) | 7.5 | 0 | 4.6 | |||||||||||||||
Underwriting, acquisition and insurance expenses | 5.8 | 42.1 | 78.8 | 0 | 126.7 | ||||||||||||||||
Interest expense | 0.7 | 3.8 | 0.9 | (0.3 | ) | 5.1 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | (0.1 | ) | 3.9 | 0 | 3.8 | |||||||||||||||
Total expenses | 6.5 | 108.8 | 216.1 | (0.3 | ) | 331.1 | |||||||||||||||
(Loss) income before income taxes | (6.5 | ) | 19.7 | 19.7 | 0 | 32.9 | |||||||||||||||
Provision for income taxes | 0 | 4.4 | (2.5 | ) | 0 | 1.9 | |||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (6.5 | ) | 15.3 | 22.2 | 0 | 31 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 37.5 | 0 | 0 | (37.5 | ) | 0 | |||||||||||||||
Net income | $ | 31 | $ | 15.3 | $ | 22.2 | $ | (37.5 | ) | $ | 31 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 343.7 | $ | 655.7 | $ | 0 | $ | 999.4 | |||||||||||
Net investment (loss) income | (0.3 | ) | 42.4 | 22.6 | 0 | 64.7 | |||||||||||||||
Fee (expense) income, net | 0 | (1.5 | ) | 1.6 | 0 | 0.1 | |||||||||||||||
Net realized investment gains and other | 0 | 34.6 | 7.9 | 0 | 42.5 | ||||||||||||||||
Total revenue | (0.3 | ) | 419.2 | 687.8 | 0 | 1,106.70 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 211.2 | 348.3 | 0 | 559.5 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 12.5 | 147.9 | 238.9 | 0 | 399.3 | ||||||||||||||||
Interest expense | 1.8 | 11.4 | 2.1 | (0.3 | ) | 15 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.1 | (2.9 | ) | 0 | (2.8 | ) | ||||||||||||||
Total expenses | 14.3 | 370.6 | 586.4 | (0.3 | ) | 971 | |||||||||||||||
(Loss) income before income taxes | (14.6 | ) | 48.6 | 101.4 | 0.3 | 135.7 | |||||||||||||||
Provision for income taxes | 0 | 10.2 | 2 | 0 | 12.2 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (14.6 | ) | 38.4 | 99.4 | 0.3 | 123.5 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 138.1 | 0 | 0 | (138.1 | ) | 0 | |||||||||||||||
Net income | $ | 123.5 | $ | 38.4 | $ | 99.4 | $ | (137.8 | ) | $ | 123.5 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF INCOME | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Premiums and other revenue: | |||||||||||||||||||||
Earned premiums | $ | 0 | $ | 321.2 | $ | 641 | $ | 0 | $ | 962.2 | |||||||||||
Net investment income | 0 | 57.2 | 21 | (0.9 | ) | 77.3 | |||||||||||||||
Fee income, net | 0 | (1.9 | ) | 2.4 | 0 | 0.5 | |||||||||||||||
Net realized investment gains (losses) and other | 0 | 32.8 | (3.2 | ) | 0 | 29.6 | |||||||||||||||
Total revenue | 0 | 409.3 | 661.2 | (0.9 | ) | 1,069.60 | |||||||||||||||
Expenses: | |||||||||||||||||||||
Losses and loss adjustment expenses | 0 | 194.9 | 359.2 | 0 | 554.1 | ||||||||||||||||
Other reinsurance-related expenses | 0 | 0 | 14.4 | 0 | 14.4 | ||||||||||||||||
Underwriting, acquisition and insurance expenses | 18.3 | 134.3 | 225.4 | 0 | 378 | ||||||||||||||||
Interest expense | 2.3 | 11.4 | 2.3 | (0.9 | ) | 15.1 | |||||||||||||||
Foreign currency exchange loss (gain) | 0 | 0.1 | (5.3 | ) | 0 | (5.2 | ) | ||||||||||||||
Total expenses | 20.6 | 340.7 | 596 | (0.9 | ) | 956.4 | |||||||||||||||
(Loss) income before income taxes | (20.6 | ) | 68.6 | 65.2 | 0 | 113.2 | |||||||||||||||
Provision for income taxes | 0 | 16 | 1.8 | 0 | 17.8 | ||||||||||||||||
Net (loss) income before equity in earnings of subsidiaries | (20.6 | ) | 52.6 | 63.4 | 0 | 95.4 | |||||||||||||||
Equity in undistributed earnings of subsidiaries | 116 | 0 | 0 | (116.0 | ) | 0 | |||||||||||||||
Net income | $ | 95.4 | $ | 52.6 | $ | 63.4 | $ | (116.0 | ) | $ | 95.4 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ' | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Net cash flows from operating activities | $ | (16.5 | ) | $ | 11.8 | $ | 70 | $ | 6.4 | $ | 71.7 | ||||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Proceeds from sales of investments | 0 | 609.2 | 366.9 | 0 | 976.1 | ||||||||||||||||
Proceeds from maturities and mandatory calls of investments | 0 | 148 | 95.6 | 0 | 243.6 | ||||||||||||||||
Purchases of investments | 0 | (773.1 | ) | (491.7 | ) | 0 | (1,264.8 | ) | |||||||||||||
Change in short-term investments and foreign regulatory deposits | 0.1 | (12.5 | ) | 18.4 | 0 | 6 | |||||||||||||||
Settlements of foreign currency exchange forward contracts | (0.5 | ) | 0 | 1.1 | 0 | 0.6 | |||||||||||||||
Issuance of intercompany note, net | 0 | 14.5 | (48.5 | ) | 34 | 0 | |||||||||||||||
Purchase of fixed assets | (7.0 | ) | (17.7 | ) | 4.4 | (6.4 | ) | (26.7 | ) | ||||||||||||
Other, net | 0 | (2.4 | ) | (19.1 | ) | 0 | (21.5 | ) | |||||||||||||
Cash (used) provided by investing activities | (7.4 | ) | (34.0 | ) | (72.9 | ) | 27.6 | (86.7 | ) | ||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Borrowings under intercompany note, net | 34 | 0 | 0 | (34.0 | ) | 0 | |||||||||||||||
Redemption of trust preferred securities, net | 0 | 0 | 0 | (18.0 | ) | (18.0 | ) | ||||||||||||||
Payment on note payable | 0 | (0.1 | ) | 0 | 0 | (0.1 | ) | ||||||||||||||
Activity under stock incentive plans | 3.3 | 0 | 0 | 0 | 3.3 | ||||||||||||||||
Repurchase of Company’s common shares | 0 | (40.9 | ) | 0 | 0 | (40.9 | ) | ||||||||||||||
Excess tax expense from share-based payment arrangements | 0 | 0.1 | 0 | 0 | 0.1 | ||||||||||||||||
Payment of cash dividends to common shareholders | (13.4 | ) | 0 | 0 | 0 | (13.4 | ) | ||||||||||||||
Cash provided (used) by financing activities | 23.9 | (40.9 | ) | 0 | (52.0 | ) | (69.0 | ) | |||||||||||||
Effect of exchange rate changes on cash | 0 | 0 | (0.3 | ) | 0 | (0.3 | ) | ||||||||||||||
Change in cash | 0 | (63.1 | ) | (3.2 | ) | (18.0 | ) | (84.3 | ) | ||||||||||||
Cash, beginning of period | 0 | 132.1 | 25.3 | 0 | 157.4 | ||||||||||||||||
Cash, end of period | $ | 0 | $ | 69 | $ | 22.1 | $ | (18.0 | ) | $ | 73.1 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations | ||||||||||||||||||||
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS | |||||||||||||||||||||
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 | |||||||||||||||||||||
(in millions) | |||||||||||||||||||||
Argo Group | Argo Group US, Inc. | Other Subsidiaries | Consolidating | Total | |||||||||||||||||
International Holdings, | and Subsidiaries | and Eliminations (1) | Adjustments (2) | ||||||||||||||||||
Ltd (Parent Guarantor) | (Subsidiary Issuer) | ||||||||||||||||||||
Net cash flows from operating activities | $ | (15.5 | ) | $ | 75.9 | $ | (63.4 | ) | $ | 0 | $ | (3.0 | ) | ||||||||
Cash flows from investing activities: | |||||||||||||||||||||
Proceeds from sales of investments | 0 | 863.2 | 515.6 | 0 | 1,378.80 | ||||||||||||||||
Proceeds from maturities and mandatory calls of investments | 0 | 139 | 85.2 | 0 | 224.2 | ||||||||||||||||
Purchases of investments | 0 | (942.4 | ) | (464.9 | ) | 0 | (1,407.3 | ) | |||||||||||||
Change in short-term investments and foreign regulatory deposits | (0.8 | ) | (38.5 | ) | (36.2 | ) | 0 | (75.5 | ) | ||||||||||||
Settlements of foreign currency exchange forward contracts | 1.9 | 0 | (8.3 | ) | 0 | (6.4 | ) | ||||||||||||||
Issuance of intercompany note, net | 0 | 0 | (24.9 | ) | 24.9 | 0 | |||||||||||||||
Purchase of fixed assets | 0 | (17.7 | ) | (1.4 | ) | 0 | (19.1 | ) | |||||||||||||
Other, net | (0.1 | ) | 4.4 | 0.2 | 0 | 4.5 | |||||||||||||||
Cash provided by investing activities | 1 | 8 | 65.3 | 24.9 | 99.2 | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||||
Borrowings under intercompany note, net | 24.9 | 0 | 0 | (24.9 | ) | 0 | |||||||||||||||
Activity under stock incentive plans | 1.4 | 0 | 0 | 0 | 1.4 | ||||||||||||||||
Repurchase of Company’s common shares | 0 | (40.1 | ) | 0 | 0 | (40.1 | ) | ||||||||||||||
Excess tax expense from share-based payment arrangements | 0 | (0.2 | ) | 0.4 | 0 | 0.2 | |||||||||||||||
Payment of cash dividends to common shareholders | (11.8 | ) | 0 | 0 | 0 | (11.8 | ) | ||||||||||||||
Cash provided (used) by financing activities | 14.5 | (40.3 | ) | 0.4 | (24.9 | ) | (50.3 | ) | |||||||||||||
Effect of exchange rate changes on cash | 0 | 0 | (0.1 | ) | 0 | (0.1 | ) | ||||||||||||||
Change in cash | (0.0 | ) | 43.6 | 2.2 | 0 | 45.8 | |||||||||||||||
Cash, beginning of period | 0 | 73.9 | 21.9 | 0 | 95.8 | ||||||||||||||||
Cash, end of period | $ | (0.0 | ) | $ | 117.5 | $ | 24.1 | $ | 0 | $ | 141.6 | ||||||||||
(1) | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations | ||||||||||||||||||||
(2) | Includes all Argo Group parent company eliminations |
Basis_of_Presentation_Addition
Basis of Presentation - Additional Information (Detail) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | 7-May-13 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' | ' |
Stock dividend declared | ' | ' | 10.00% |
Additional stock issued as dividend | ' | 2,447,839 | ' |
Dividends declaration date | ' | 7-May-13 | ' |
Dividends payable date | ' | 17-Jun-13 | ' |
Dividend payable, date of record | 1-Sep-14 | 3-Jun-13 | ' |
Investments_Schedule_of_Amorti
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | $3,871.50 | $3,836 |
Gross Unrealized Gains | 273 | 274.8 |
Gross Unrealized Losses | 32.8 | 31.6 |
Fair Value | 4,111.70 | 4,079.20 |
Other Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 398 | 377.4 |
Gross Unrealized Gains | 7.3 | 2.8 |
Gross Unrealized Losses | 2 | 1.3 |
Fair Value | 403.3 | 378.9 |
Fixed Maturities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,798.60 | 2,760.10 |
Gross Unrealized Gains | 70.5 | 83.4 |
Gross Unrealized Losses | 28.2 | 29.1 |
Fair Value | 2,840.90 | 2,814.40 |
Fixed Maturities [Member] | U.S. Governments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 209.8 | 273.4 |
Gross Unrealized Gains | 1.5 | 2.4 |
Gross Unrealized Losses | 0.5 | 0.5 |
Fair Value | 210.8 | 275.3 |
Fixed Maturities [Member] | Non-U.S. Governments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 76.9 | 60.9 |
Gross Unrealized Gains | 0.6 | 0.3 |
Gross Unrealized Losses | 0.5 | 1 |
Fair Value | 77 | 60.2 |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 485.6 | 563.7 |
Gross Unrealized Gains | 24.2 | 22.9 |
Gross Unrealized Losses | 0.6 | 8.8 |
Fair Value | 509.2 | 577.8 |
Fixed Maturities [Member] | Credit-Financial [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 489.1 | 426.3 |
Gross Unrealized Gains | 12.8 | 15.4 |
Gross Unrealized Losses | 1.3 | 1.8 |
Fair Value | 500.6 | 439.9 |
Fixed Maturities [Member] | Credit-Industrial [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 461 | 385.5 |
Gross Unrealized Gains | 10.3 | 13.8 |
Gross Unrealized Losses | 2.8 | 2.2 |
Fair Value | 468.5 | 397.1 |
Fixed Maturities [Member] | Credit-Utility [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 146.8 | 162 |
Gross Unrealized Gains | 4.3 | 5.4 |
Gross Unrealized Losses | 0.7 | 0.8 |
Fair Value | 150.4 | 166.6 |
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 179.4 | 219.4 |
Gross Unrealized Gains | 8.2 | 9.2 |
Gross Unrealized Losses | 0.9 | 1.7 |
Fair Value | 186.7 | 226.9 |
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 13.7 | 19.4 |
Gross Unrealized Gains | 0.9 | 0.8 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 14.6 | 20.2 |
Fixed Maturities [Member] | CMBS [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 163.8 | 162.7 |
Gross Unrealized Gains | 2.1 | 3.1 |
Gross Unrealized Losses | 0.2 | 1 |
Fair Value | 165.7 | 164.8 |
Fixed Maturities [Member] | ABS-Residential [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 5.2 | 6.8 |
Gross Unrealized Gains | 0 | 0.3 |
Gross Unrealized Losses | 0.3 | 0.5 |
Fair Value | 4.9 | 6.6 |
Fixed Maturities [Member] | ABS-Non Residential [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 209.2 | 116.8 |
Gross Unrealized Gains | 0.8 | 0.5 |
Gross Unrealized Losses | 0.3 | 0.1 |
Fair Value | 209.7 | 117.2 |
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 140.4 | 207.7 |
Gross Unrealized Gains | 1.8 | 4.9 |
Gross Unrealized Losses | 7.4 | 5.9 |
Fair Value | 134.8 | 206.7 |
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 217.7 | 155.5 |
Gross Unrealized Gains | 3 | 4.4 |
Gross Unrealized Losses | 12.7 | 4.8 |
Fair Value | 208 | 155.1 |
Equity Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 318.7 | 346.9 |
Gross Unrealized Gains | 195.2 | 188.6 |
Gross Unrealized Losses | 2.6 | 1.2 |
Fair Value | 511.3 | 534.3 |
Short-Term Investments [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Amortized Cost | 356.2 | 351.6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $356.20 | $351.60 |
Investments_Additional_Informa
Investments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 28, 2011 |
Security | Security | |||||
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of investments, assets managed on behalf of the trade capital providers | $70.10 | ' | $70.10 | ' | $87.30 | ' |
Number of securities in an unrealized loss position, total | 5,853 | ' | 5,853 | ' | ' | ' |
Number of securities in an unrealized loss position for less than one year | ' | ' | 1,668 | ' | ' | ' |
Number of securities in an unrealized loss position for a period of one year or greater | ' | ' | 167 | ' | ' | ' |
Other-than-temporary losses on fixed maturities portfolio | 0 | 0 | 1.2 | 0.3 | ' | ' |
Other-than-temporary losses equity portfolio | 0.2 | 0.1 | 0.4 | 1.6 | ' | ' |
Total notional amount of the Company's holdings in non-U.S. Dollar denominated higher yielding fixed maturity investments | 2 | ' | 2 | ' | ' | ' |
Notional amount of the currency forward contracts | ' | ' | ' | ' | ' | 100 |
Fair value of the currency forward contracts | 2 | 1.6 | 2 | 1.6 | ' | ' |
Realized gains from currency forward contracts | ' | 2.4 | ' | 2.4 | ' | ' |
Realized losses from currency forward contracts | 2.1 | 2.2 | 0.2 | 2.2 | ' | ' |
Amortized Cost | 3,871.50 | ' | 3,871.50 | ' | 3,836 | ' |
Fair Value | 4,111.70 | ' | 4,111.70 | ' | 4,079.20 | ' |
Reported loss incurred | 45 | ' | 45 | ' | 60.2 | ' |
Reported loss expense reserve | 45 | ' | 45 | ' | 60.2 | ' |
Securities pledged to Lloyd's | 243.2 | ' | 243.2 | ' | 250.8 | ' |
Canadian Dollar [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of the currency forward contracts | 1.5 | ' | 1.5 | ' | ' | ' |
Realized gains from currency forward contracts | 1.1 | ' | 1.1 | ' | ' | ' |
Euro [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Fair value of the currency forward contracts | 1.9 | ' | 1.9 | ' | ' | ' |
Realized gains from currency forward contracts | 2 | ' | 2 | ' | ' | ' |
Securities Pledged as Collateral [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Pledged assets separately reported, securities pledged under letters of credit facilities, at amortized cost | 55.4 | ' | 55.4 | ' | 96.6 | ' |
Pledged assets separately reported, securities pledged under letters of credit facilities, at fair value | 55.8 | ' | 55.8 | ' | 97.5 | ' |
Currency Forward Contracts [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of the currency forward contracts | 25.6 | 53.2 | 25.6 | 53.2 | ' | ' |
Currency Forward Contracts [Member] | Canadian Dollar [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Notional amount of the currency forward contracts | 118.3 | ' | 118.3 | ' | ' | ' |
Deposit with Various U.S. Insurance and Other Regulatory Agencies [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Amortized Cost | 196 | ' | 196 | ' | 196.7 | ' |
Fair Value | 204.4 | ' | 204.4 | ' | 203.4 | ' |
Non-U.S. Denominated Fixed Maturity Investments [Member] | ' | ' | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' | ' | ' |
Total notional amount of the Company's holdings in non-U.S. Dollar denominated higher yielding fixed maturity investments | $1.80 | ' | $1.80 | ' | ' | ' |
Investments_Schedule_of_Amorti1
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Investments, Debt and Equity Securities [Abstract] | ' |
Amortized Cost, Due in one year or less | $255.70 |
Amortized Cost, Due after one year through five years | 1,329.30 |
Amortized Cost, Due after five years through ten years | 472.9 |
Amortized Cost, Thereafter | 169.4 |
Amortized Cost, Structured securities | 571.3 |
Amortized Cost, Total | 2,798.60 |
Fair Value, Due in one year or less | 254.2 |
Fair Value, Due after one year through five years | 1,343.20 |
Fair Value, Due after five years through ten years | 488.2 |
Fair Value, Thereafter | 173.7 |
Fair Value, Structured securities | 581.6 |
Fair Value, Total | $2,840.90 |
Investments_Schedule_of_Aging_
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | $1,000.20 | $907.90 |
Unrealized Losses, Less Than One Year | 29.4 | 30.2 |
Fair Value, One Year or Greater | 129.8 | 22.6 |
Unrealized Losses, One Year or Greater | 3.4 | 1.4 |
Fair Value, Total | 1,130 | 930.5 |
Unrealized Losses, Total | 32.8 | 31.6 |
Other Investments [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | -2 | -1.4 |
Unrealized Losses, Less Than One Year | 2 | 1.3 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | -2 | -1.4 |
Unrealized Losses, Total | 2 | 1.3 |
Fixed Maturities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 970.1 | 879.3 |
Unrealized Losses, Less Than One Year | 24.8 | 27.7 |
Fair Value, One Year or Greater | 129.8 | 22.6 |
Unrealized Losses, One Year or Greater | 3.4 | 1.4 |
Fair Value, Total | 1,099.90 | 901.9 |
Unrealized Losses, Total | 28.2 | 29.1 |
Fixed Maturities [Member] | U.S. Governments [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 59.5 | 55.3 |
Unrealized Losses, Less Than One Year | 0.3 | 0.5 |
Fair Value, One Year or Greater | 16.3 | 0 |
Unrealized Losses, One Year or Greater | 0.2 | 0 |
Fair Value, Total | 75.8 | 55.3 |
Unrealized Losses, Total | 0.5 | 0.5 |
Fixed Maturities [Member] | Non-U.S. Governments [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 28.3 | 36.3 |
Unrealized Losses, Less Than One Year | 0.1 | 1 |
Fair Value, One Year or Greater | 7.5 | 0 |
Unrealized Losses, One Year or Greater | 0.4 | 0 |
Fair Value, Total | 35.8 | 36.3 |
Unrealized Losses, Total | 0.5 | 1 |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 16.4 | 154.6 |
Unrealized Losses, Less Than One Year | 0.1 | 8.8 |
Fair Value, One Year or Greater | 27.9 | 3.1 |
Unrealized Losses, One Year or Greater | 0.5 | 0 |
Fair Value, Total | 44.3 | 157.7 |
Unrealized Losses, Total | 0.6 | 8.8 |
Fixed Maturities [Member] | Credit-Financial [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 149.1 | 88.7 |
Unrealized Losses, Less Than One Year | 1.1 | 1.7 |
Fair Value, One Year or Greater | 14.3 | 2.4 |
Unrealized Losses, One Year or Greater | 0.2 | 0.1 |
Fair Value, Total | 163.4 | 91.1 |
Unrealized Losses, Total | 1.3 | 1.8 |
Fixed Maturities [Member] | Credit-Industrial [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 222.5 | 85.7 |
Unrealized Losses, Less Than One Year | 2.5 | 2 |
Fair Value, One Year or Greater | 13.5 | 2.9 |
Unrealized Losses, One Year or Greater | 0.3 | 0.2 |
Fair Value, Total | 236 | 88.6 |
Unrealized Losses, Total | 2.8 | 2.2 |
Fixed Maturities [Member] | Credit-Utility [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 42.5 | 21.2 |
Unrealized Losses, Less Than One Year | 0.7 | 0.7 |
Fair Value, One Year or Greater | 1.9 | 1.9 |
Unrealized Losses, One Year or Greater | 0 | 0.1 |
Fair Value, Total | 44.4 | 23.1 |
Unrealized Losses, Total | 0.7 | 0.8 |
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 23.8 | 58.4 |
Unrealized Losses, Less Than One Year | 0.1 | 1.2 |
Fair Value, One Year or Greater | 17.1 | 5.6 |
Unrealized Losses, One Year or Greater | 0.8 | 0.5 |
Fair Value, Total | 40.9 | 64 |
Unrealized Losses, Total | 0.9 | 1.7 |
Fixed Maturities [Member] | CMBS [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 29.8 | 24.2 |
Unrealized Losses, Less Than One Year | 0.1 | 1 |
Fair Value, One Year or Greater | 6.6 | 1.1 |
Unrealized Losses, One Year or Greater | 0.1 | 0 |
Fair Value, Total | 36.4 | 25.3 |
Unrealized Losses, Total | 0.2 | 1 |
Fixed Maturities [Member] | ABS-Residential [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 0 | 0 |
Unrealized Losses, Less Than One Year | 0 | 0 |
Fair Value, One Year or Greater | 3.4 | 3.6 |
Unrealized Losses, One Year or Greater | 0.3 | 0.5 |
Fair Value, Total | 3.4 | 3.6 |
Unrealized Losses, Total | 0.3 | 0.5 |
Fixed Maturities [Member] | ABS-Non Residential [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 106.9 | 59.1 |
Unrealized Losses, Less Than One Year | 0.3 | 0.1 |
Fair Value, One Year or Greater | 3.6 | 2 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 110.5 | 61.1 |
Unrealized Losses, Total | 0.3 | 0.1 |
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 111.5 | 170.5 |
Unrealized Losses, Less Than One Year | 6.9 | 5.9 |
Fair Value, One Year or Greater | 17 | 0 |
Unrealized Losses, One Year or Greater | 0.5 | 0 |
Fair Value, Total | 128.5 | 170.5 |
Unrealized Losses, Total | 7.4 | 5.9 |
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 179.8 | 125.3 |
Unrealized Losses, Less Than One Year | 12.6 | 4.8 |
Fair Value, One Year or Greater | 0.7 | 0 |
Unrealized Losses, One Year or Greater | 0.1 | 0 |
Fair Value, Total | 180.5 | 125.3 |
Unrealized Losses, Total | 12.7 | 4.8 |
Equity Securities [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | 32.1 | 25.5 |
Unrealized Losses, Less Than One Year | 2.6 | 1.2 |
Fair Value, One Year or Greater | 0 | 0 |
Unrealized Losses, One Year or Greater | 0 | 0 |
Fair Value, Total | 32.1 | 25.5 |
Unrealized Losses, Total | 2.6 | 1.2 |
Short-Term Investments [Member] | ' | ' |
Schedule of Investments [Line Items] | ' | ' |
Fair Value, Less Than One Year | ' | 4.5 |
Unrealized Losses, Less Than One Year | ' | 0 |
Fair Value, One Year or Greater | ' | 0 |
Unrealized Losses, One Year or Greater | ' | 0 |
Fair Value, Total | ' | 4.5 |
Unrealized Losses, Total | $0 | $0 |
Investments_Schedule_of_Aging_1
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Parenthetical) (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Unrealized losses less than one year | $0.10 | $0.10 |
Unrealized losses one year or greater | $0.10 | $0.10 |
Investments_Schedule_of_Compan
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | $20.80 | $24.30 | $69.90 | $71.50 |
Gross realized investment and other losses | -7.9 | -15.2 | -27.4 | -41.9 |
Net realized investment gains and other | 12.9 | 9.1 | 42.5 | 29.6 |
Other Investments [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | 13.6 | 11.2 | 36.5 | 28.9 |
Gross realized investment and other losses | -6.5 | -8.6 | -12.6 | -24.1 |
Other Assets [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | 2 | 0 | 2 | 0 |
Gross realized investment and other losses | 0 | 0 | -4 | 0 |
Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | 4.5 | 5.8 | 15.2 | 27.5 |
Gross realized investment and other losses | -1.1 | -6.1 | -8.7 | -14.5 |
Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | 0.7 | 7.2 | 16.1 | 15 |
Gross realized investment and other losses | -0.1 | -0.1 | -0.2 | -0.8 |
Short-Term Investments [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment gains | 0 | 0.1 | 0.1 | 0.1 |
Gross realized investment and other losses | 0 | -0.3 | -0.3 | -0.6 |
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment and other losses | 0 | 0 | -1.2 | -0.3 |
Other-Than-Temporary Impairment Losses on Equity Securities [Member] | ' | ' | ' | ' |
Schedule of Investments [Line Items] | ' | ' | ' | ' |
Gross realized investment and other losses | ($0.20) | ($0.10) | ($0.40) | ($1.60) |
Investments_Financial_Assets_M
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | $4,111.70 | $4,079.20 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 3,806.50 | 3,820.70 |
Other Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 403.3 | 378.9 |
Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 98.1 | 117.8 |
Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | ' | 2.6 |
Fixed Maturities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 2,840.90 | 2,814.40 |
Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 2,840.90 | 2,814.40 |
Fixed Maturities [Member] | U.S. Governments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 210.8 | 275.3 |
Fixed Maturities [Member] | U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 210.8 | 275.3 |
Fixed Maturities [Member] | Non-U.S. Governments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 77 | 60.2 |
Fixed Maturities [Member] | Non-U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 77 | 60.2 |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 509.2 | 577.8 |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 509.2 | 577.8 |
Fixed Maturities [Member] | Credit-Financial [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 500.6 | 439.9 |
Fixed Maturities [Member] | Credit-Financial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 500.6 | 439.9 |
Fixed Maturities [Member] | Credit-Industrial [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 468.5 | 397.1 |
Fixed Maturities [Member] | Credit-Industrial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 468.5 | 397.1 |
Fixed Maturities [Member] | Credit-Utility [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 150.4 | 166.6 |
Fixed Maturities [Member] | Credit-Utility [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 150.4 | 166.6 |
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 186.7 | 226.9 |
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 186.7 | 226.9 |
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 14.6 | 20.2 |
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 14.6 | 20.2 |
Fixed Maturities [Member] | CMBS [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 165.7 | 164.8 |
Fixed Maturities [Member] | CMBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 165.7 | 164.8 |
Fixed Maturities [Member] | ABS-Residential [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 4.9 | 6.6 |
Fixed Maturities [Member] | ABS-Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 4.9 | 6.6 |
Fixed Maturities [Member] | ABS-Non Residential [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 209.7 | 117.2 |
Fixed Maturities [Member] | ABS-Non Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 209.7 | 117.2 |
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 134.8 | 206.7 |
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 134.8 | 206.7 |
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 208 | 155.1 |
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 208 | 155.1 |
Equity Securities [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 511.3 | 534.3 |
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 511.3 | 534.3 |
Short-Term Investments [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 356.2 | 351.6 |
Short-Term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 356.2 | 351.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 945.9 | 967.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | ' | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 120.8 | 143.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 120.8 | 143.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | CMBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | ABS-Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | ABS-Non Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 471 | 476.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Short-Term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 354.1 | 347 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 2,859.60 | 2,849.30 |
Significant Other Observable Inputs (Level 2) [Member] | Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 98.1 | 117.8 |
Significant Other Observable Inputs (Level 2) [Member] | Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | ' | 0 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 2,720.10 | 2,670.60 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 90 | 131.5 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 77 | 60.2 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 509.2 | 577.8 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 500.6 | 439.9 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 468.5 | 397.1 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 150.4 | 166.6 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 186.7 | 226.9 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 14.6 | 20.2 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | CMBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 165.7 | 164.8 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | ABS-Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 4.9 | 6.6 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | ABS-Non Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 209.7 | 117.2 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 134.8 | 206.7 |
Significant Other Observable Inputs (Level 2) [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 208 | 155.1 |
Significant Other Observable Inputs (Level 2) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 39.3 | 56.3 |
Significant Other Observable Inputs (Level 2) [Member] | Short-Term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 2.1 | 4.6 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 1 | 3.9 |
Significant Unobservable Inputs (Level 3) [Member] | Other Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Other Assets [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | ' | 2.6 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | CMBS [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | ABS-Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | ABS-Non Residential [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | 1 | 1.3 |
Significant Unobservable Inputs (Level 3) [Member] | Short-Term Investments [Member] | Fair Value, Measurements, Recurring [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fair Value | $0 | $0 |
Investments_Schedule_of_Reconc
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | $3.90 | $8.70 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0 | 0.1 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | -0.3 | -0.6 |
Settlements | -2.6 | -4.3 |
Ending balance | 1 | 3.9 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | 0 | 0 |
Other Assets [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | 2.6 | 6.9 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0 | 0 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | 0 | 0 |
Settlements | -2.6 | -4.3 |
Ending balance | 0 | 2.6 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | 0 | 0 |
Equity Securities [Member] | ' | ' |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ' | ' |
Beginning balance | 1.3 | 1.8 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income (loss) | 0 | 0.1 |
Included in other comprehensive income (loss) | 0 | 0 |
Purchases | 0 | 0 |
Issuances | 0 | 0 |
Sales | -0.3 | -0.6 |
Settlements | 0 | 0 |
Ending balance | 1 | 1.3 |
Amount of total gains or losses for the year included in net income (loss) attributable to the change in unrealized gains or losses relating to assets still held at end of period | $0 | $0 |
Derivative_Instruments_Additio
Derivative Instruments - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 28, 2011 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 |
Contract | |||||||
Offsetting [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Number of reinsurance contracts | ' | ' | ' | ' | ' | 1 | ' |
Coverage amount | $100 | ' | ' | ' | ' | ' | ' |
Coverage period, months | '24 months | ' | ' | ' | ' | ' | ' |
Other reinsurance-related expenses | ' | 0 | 4.6 | 0 | 14.4 | ' | ' |
Other assets | ' | $0 | ' | $0 | ' | ' | $2.60 |
Reserves_for_Losses_and_Loss_A2
Reserves for Losses and Loss Adjustment Expenses - Reinsurance Recoverables (Detail) (USD $) | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Liability for Claims and Claims Adjustment Expense [Abstract] | ' | ' | ' | |
Net reserves beginning of the year | $2,107.60 | $2,110.90 | ' | |
Losses and LAE incurred during current calendar year, net of reinsurance: | ' | ' | ' | |
Current accident year | 585.9 | 575.6 | ' | |
Prior accident years | -26.4 | -21.5 | ' | |
Losses and LAE incurred during calendar year, net of reinsurance | 559.5 | 554.1 | ' | |
Losses and LAE payments made during current calendar year, net of reinsurance: | ' | ' | ' | |
Current accident year | 115.3 | 131.7 | ' | |
Prior accident years | 435.5 | 429 | ' | |
Losses and LAE payments made during current calendar year, net of reinsurance | 550.8 | 560.7 | ' | |
Change in participation interest | 24.7 | 10.4 | ' | |
Foreign exchange adjustments | -4.9 | -6.3 | ' | |
Net reserves-end of period | 2,136.10 | 2,108.40 | ' | |
Reinsurance recoverables on unpaid losses and LAE, end of period | 926.5 | 1,114.50 | ' | |
Gross reserves-end of period | $3,062.60 | $3,222.90 | $3,230.30 | [1] |
[1] | Derived from audited consolidated financial statements. |
Reserves_for_Losses_and_Loss_A3
Reserves for Losses and Loss Adjustment Expenses - Additional Information (Detail) (USD $) | 9 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2012 |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Net reserves ceded - whole account quota share reinsurance transaction | ' | ' | $192.20 |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 26.4 | 21.5 | ' |
Commercial Specialty [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 5.2 | 0.4 | ' |
Excess and Surplus Lines [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 34.6 | 26.8 | ' |
International Specialty [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 0.1 | 0.6 | ' |
Syndicate 1200 Segment [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 15.8 | 4.1 | ' |
Run-Off Lines [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 18.9 | 9.6 | ' |
Medical Malpractice Liability [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | 9 | 2 | ' |
Unfavorable Development [Member] | ' | ' | ' |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ' | ' | ' |
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | $9.90 | $6.40 | ' |
Debt_Additional_Information_De
Debt - Additional Information (Detail) (USD $) | Mar. 07, 2014 | Mar. 07, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jul. 16, 2014 |
New Credit Agreement [Member] | New Credit Agreement [Member] | New Credit Agreement [Member] | New Credit Agreement [Member] | Junior Subordinated Debentures [Member] | ||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Credit agreement with major money center banks, amount | $150,000,000 | $175,000,000 | ' | ' | ' | ' |
Revolving credit facility maturity date | ' | ' | 7-Mar-18 | ' | ' | ' |
Amount drawn under revolving letter of credit | ' | 200,000 | ' | ' | ' | ' |
Letter of credit facility amount | ' | ' | 0 | 0 | 17,500,000 | ' |
Maximum borrowing capacity under revolving credit facility before amendment | 150,000,000 | ' | ' | ' | ' | ' |
Purchase of outstanding PXRE Capital Trust of junior subordinate notes | ' | ' | ' | ' | ' | 20,000,000 |
Percentage of discount on principal amount | ' | ' | ' | ' | ' | 90.00% |
Purchase price of junior subordinated debt securities | ' | ' | ' | ' | ' | $18,200,000 |
Disclosures_about_Fair_Value_o2
Disclosures about Fair Value of Financial Instruments - Additional Information (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | |
Premiums receivable | $396.70 | $348.40 | [1] |
Reinsurance recoverable | 1,002.30 | 1,263.50 | [1] |
Over 90 Days [Member] | ' | ' | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | ' | ' | |
Premiums receivable | 17.9 | 9.8 | |
Reinsurance recoverable | 13.2 | 22.2 | |
Premiums receivable, allowance for doubtful accounts | 4.9 | 4.5 | |
Reinsurance recoverables, allowance for doubtful accounts | 2 | 1.6 | |
Premiums receivables, secured by collateral | $0.30 | $0.40 | |
[1] | Derived from audited consolidated financial statements. |
Disclosures_about_Fair_Value_o3
Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Amount | $380.90 | $403.40 |
Fair Value | 345.8 | 325 |
Junior Subordinated Debentures [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Amount | 172.7 | 193.3 |
Fair Value | 155.5 | 155.5 |
Senior Unsecured Fixed Rate Notes [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Amount | 143.8 | 143.8 |
Fair Value | 132.3 | 116.2 |
Other Indebtedness [Member] | Floating Rate Loan Stock [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Amount | 63.8 | 65.5 |
Fair Value | 57.4 | 52.7 |
Other Indebtedness [Member] | Note Payable [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Carrying Amount | 0.6 | 0.8 |
Fair Value | $0.60 | $0.60 |
Shareholders_Equity_Additional
Shareholders Equity - Additional Information (Detail) (USD $) | 0 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||||
In Millions, except Share data, unless otherwise specified | Sep. 15, 2014 | Aug. 05, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Nov. 13, 2007 | Feb. 18, 2011 | Nov. 05, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 20, 2013 | Aug. 06, 2013 | Sep. 30, 2014 |
2011 Repurchase Authorization [Member] | 2013 Repurchase Authorization [Member] | 2013 Repurchase Authorization [Member] | Open Market [Member] | Open Market [Member] | 10% Stock Dividend [Member] | 10% Stock Dividend [Member] | 10% Stock Dividend [Member] | ||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend declared per common share | ' | $0.18 | $0.18 | $0.15 | $0.51 | $0.44 | ' | ' | ' | ' | ' | ' | ' | $0.15 | ' |
Dividend payable, date of record | ' | ' | ' | ' | 1-Sep-14 | 3-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' | 2-Sep-13 |
Cash dividends paid - common shares, total | $4.70 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4 | ' | ' |
Common stock repurchase authorization, maximum | ' | ' | ' | ' | ' | ' | 150 | 150 | ' | ' | ' | ' | ' | ' | ' |
Shares purchased during period, Value | ' | ' | ' | ' | ' | ' | ' | ' | 150 | 101.5 | ' | ' | ' | ' | ' |
Stock repurchase program, number of shares authorized to be repurchased | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common shares repurchased | ' | ' | 206,710 | ' | 882,010 | ' | ' | ' | ' | ' | 98,108 | 301,758 | ' | ' | ' |
Common shares repurchased, total cost | ' | ' | $10.80 | ' | $42.20 | ' | ' | ' | ' | ' | $5.20 | $14.90 | ' | ' | ' |
Shareholders_Equity_Schedule_o
Shareholders Equity - Schedule of Repurchase of Shares (Detail) (USD $) | 3 Months Ended | 9 Months Ended |
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Number of Shares Repurchased | 206,710 | 882,010 |
Total Cost | $10.80 | $42.20 |
12/17/2013 [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Date Trading Plan Initiated | ' | 17-Dec-13 |
2014 Purchase Period | ' | '02/04/14-02/12/14 |
Trading Plans Purchase Period Date Range Start | ' | '02/04/14 |
Trading Plans Purchase Period Date Range End | ' | '02/12/14 |
Number of Shares Repurchased | ' | 15,789 |
Average Price of Shares Repurchased | ' | $43.28 |
Total Cost | ' | 0.7 |
Repurchase Authorization Year | ' | '2013 |
03/18/2014 [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Date Trading Plan Initiated | ' | 18-Mar-14 |
2014 Purchase Period | ' | '03/18/14-04/28/14 |
Trading Plans Purchase Period Date Range Start | ' | '03/18/14 |
Trading Plans Purchase Period Date Range End | ' | '04/28/14 |
Number of Shares Repurchased | ' | 436,867 |
Average Price of Shares Repurchased | ' | $45.81 |
Total Cost | ' | 20 |
Repurchase Authorization Year | ' | '2013 |
06/13/2014 [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Date Trading Plan Initiated | ' | 13-Jun-14 |
2014 Purchase Period | ' | '06/17/14-08/04/14 |
Trading Plans Purchase Period Date Range Start | ' | '06/17/14 |
Trading Plans Purchase Period Date Range End | ' | '08/04/14 |
Number of Shares Repurchased | ' | 41,362 |
Average Price of Shares Repurchased | ' | $49.94 |
Total Cost | ' | 2.1 |
Repurchase Authorization Year | ' | '2013 |
09/12/2014 [Member] | ' | ' |
Equity, Class of Treasury Stock [Line Items] | ' | ' |
Date Trading Plan Initiated | ' | 12-Sep-14 |
2014 Purchase Period | ' | '09/16/14-09/30/14 |
Trading Plans Purchase Period Date Range Start | ' | '09/16/14 |
Trading Plans Purchase Period Date Range End | ' | '09/30/14 |
Number of Shares Repurchased | ' | 86,234 |
Average Price of Shares Repurchased | ' | $52.17 |
Total Cost | ' | $4.50 |
Repurchase Authorization Year | ' | '2013 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ' | ' | ' | ' | |
Beginning balance, Foreign currency translation adjustments | ' | ' | ($11.50) | ($8.70) | |
Other comprehensive income (loss) before reclassifications, Foreign currency translation adjustments | ' | ' | -1.9 | -2.2 | |
Amounts reclassified from accumulated other comprehensive income (loss), Foreign currency translation adjustments | ' | ' | 0 | 0 | |
Net current-period other comprehensive income (loss), Foreign currency translation adjustments | ' | ' | -1.9 | -2.2 | |
Ending balance, Foreign currency translation adjustments | -13.4 | -10.9 | -13.4 | -10.9 | |
Beginning balance, Unrealized holding gains on securities | ' | ' | 163.9 | 204.1 | |
Other comprehensive income (loss) before reclassifications, Unrealized holding gains on securities | ' | ' | 5.4 | -23.9 | |
Amounts reclassified from accumulated other comprehensive income (loss), Unrealized holding gains on securities | -1.7 | -1.3 | -14.8 | -11.6 | |
Net current-period other comprehensive income (loss), Unrealized holding gains on securities | ' | ' | -9.4 | -35.5 | |
Ending balance, Unrealized holding gains on securities | 154.5 | 168.6 | 154.5 | 168.6 | |
Beginning balance, Defined benefit pension plans | ' | ' | -4.6 | -5.9 | |
Other comprehensive income (loss) before reclassifications, Defined benefit pension plans | ' | ' | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss), Defined benefit pension plans | ' | ' | 0 | 0 | |
Net current-period other comprehensive income (loss), Defined benefit pension plans | ' | ' | 0 | 0 | |
Ending balance, Defined benefit pension plans | -4.6 | -5.9 | -4.6 | -5.9 | |
Beginning balance | ' | ' | 147.8 | [1] | 189.5 |
Other comprehensive income (loss) before reclassifications | ' | ' | 3.5 | -26.1 | |
Amounts reclassified from accumulated other comprehensive income (loss) | ' | ' | -14.8 | -11.6 | |
Other comprehensive (loss) income, net of tax | -37.9 | 16.2 | -11.3 | -37.7 | |
Ending balance | $136.50 | $151.80 | $136.50 | $151.80 | |
[1] | Derived from audited consolidated financial statements. |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Unrealized gains and losses on securities | ' | ' | ' | ' |
Net realized investment gains | ($5.80) | ($3.30) | ($22) | ($18.30) |
Provision for income taxes | 4.1 | 2 | 7.2 | 6.7 |
Net of taxes | ($1.70) | ($1.30) | ($14.80) | ($11.60) |
Net_Income_Per_Common_Share_Ne
Net Income Per Common Share - Net Income Per Common Share on Basic and Diluted Basis (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $44.70 | $31 | $123.50 | $95.40 |
Weighted average common shares outstanding - basic | 25,956,599 | 26,682,176 | 26,203,819 | 26,961,792 |
Effect of dilutive securities: | ' | ' | ' | ' |
Equity compensation awards | 480,334 | 1,137,374 | 466,357 | 1,031,543 |
Weighted average common shares outstanding - diluted | 26,436,933 | 27,819,550 | 26,670,176 | 27,993,335 |
Net income per common share - basic | $1.72 | $1.16 | $4.71 | $3.54 |
Net income per common share - diluted | $1.69 | $1.12 | $4.63 | $3.41 |
Net_Income_Per_Common_Share_Ad
Net Income Per Common Share - Additional Information (Detail) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | ||
Earnings Per Share [Abstract] | ' | ' | ' | ' | ' | |
Treasury shares | 8,440,355 | 7,408,601 | 8,440,355 | 7,408,601 | 7,558,345 | [1] |
Antidilutive securities excluded from computation of diluted net income per share, shares | 1,879 | 58,784 | 1,879 | 58,784 | ' | |
[1] | Derived from audited consolidated financial statements. |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes Paid, Net [Abstract] | ' | ' |
Income taxes paid | $23.80 | $14.10 |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information - Schedule of Interest Paid (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Interest Paid [Abstract] | ' | ' |
Senior unsecured fixed rate notes | $7 | $7 |
Junior subordinated debentures | 5.8 | 6 |
Other indebtedness | 2.3 | 2.1 |
Total interest paid | $15.10 | $15.10 |
Sharebased_Compensation_Additi
Share-based Compensation - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Share-based compensation arrangement by share-based payment award, award vesting period, years | '5 years | '5 years |
Sharebased_Compensation_Fair_V
Share-based Compensation - Fair Value Assumptions (Detail) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ' |
Risk-free rate of return | 1.77% | 1.44% |
Expected dividend yields | 1.49% | 1.55% |
Expected award life (years) | '4 years 8 months 1 day | '4 years 11 months 1 day |
Expected volatility | 22.84% | 31.12% |
Sharebased_Compensation_2014_L
Share-based Compensation - 2014 Long-Term Incentive Plan - Additional Information (Detail) (USD $) | 9 Months Ended | 1 Months Ended | 1 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||||||||
In Millions, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | 31-May-14 | Nov. 30, 2007 | 31-May-14 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 |
2007 Plan [Member] | 2007 Plan [Member] | Two Thousand Fourteen Plan [Member] | Two Thousand Fourteen Plan [Member] | Two Thousand Fourteen Plan [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Restricted Share Units [Member] | Stock-Settled SARs Activity [Member] | Stock-Settled SARs Activity [Member] | Stock-Settled SARs Activity [Member] | Stock-Settled SARs Activity [Member] | Stock-Settled SARs Activity [Member] | Stock-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | Cash-Settled SARs Activity [Member] | |||
Maximum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, number of shares authorized | ' | ' | ' | 4,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, additional number of shares authorized | ' | ' | ' | ' | 2,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, terms of award | ' | ' | ' | ' | ' | 'Share options and SARs will count as one share for the purposes of the limits under the 2014 Plan; restricted shares, restricted share units, performance units, performance shares or other share-based incentive awards which settle in common shares will count as 2.75 shares for purpose of the limits under the 2014 Plan. | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Count of restricted shares, settle in common shares | ' | ' | ' | ' | ' | 2.75 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares available for grant | ' | ' | 1,789,004 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term of shares options, (in years) | ' | ' | ' | ' | ' | ' | 'Seven years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, award vesting period, years | '5 years | '5 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | '2 years | ' | ' | ' | ' | '4 years | '1 year | ' | ' | ' | ' | '4 years | '1 year |
Share-based compensation arrangement by share-based payment award, compensation expense | ' | ' | ' | ' | ' | ' | ' | $0.80 | $0.60 | $2.20 | $2.20 | ' | ' | $0.30 | $0.80 | $1.60 | $2.10 | ' | ' | ' | ' | ' | ' | ' | ' |
Employee service share-based compensation, unrecognized compensation costs on nonvested awards | ' | ' | ' | ' | ' | ' | ' | 7.3 | ' | 7.3 | ' | ' | ' | 3.6 | ' | 3.6 | ' | ' | ' | 10.2 | ' | 10.2 | ' | ' | ' |
Deferred compensation arrangement with individual, compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.20 | $1.70 | $9.20 | $12.70 | ' | ' |
Sharebased_Compensation_Summar
Share-based Compensation - Summary of Restricted Share Activity (Detail) (Restricted Stock Units (RSUs) [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Restricted Stock Units (RSUs) [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares, Outstanding at January 1, 2014 | 257,975 |
Granted, Shares | 107,696 |
Vested and issued, Shares | -58,680 |
Expired or forfeited, Shares | -35,511 |
Shares, Outstanding at September 30, 2014 | 271,480 |
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2014 | $32.97 |
Granted, Weighted-Average Grant Date Fair Value | $44.93 |
Vested and issued, Weighted-Average Grant Date Fair Value | $31.62 |
Expired or forfeited, Weighted-Average Grant Date Fair Value | $33.08 |
Weighted-Average Grant Date Fair Value, Outstanding at September 30, 2014 | $37.99 |
Sharebased_Compensation_Summar1
Share-based Compensation - Summary of Stock-Settled SARs Activity (Detail) (Stock-Settled SARs Activity [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Stock-Settled SARs Activity [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares, Outstanding at January 1, 2014 | 1,288,698 |
Granted, Shares | 188,273 |
Exercised, Shares | -107,979 |
Expired or forfeited, Shares | -68,523 |
Shares, Outstanding at September 30, 2014 | 1,300,469 |
Weighted-Average Exercise Price, Outstanding at January 1, 2014 | $29.47 |
Granted, Weighted-Average Exercise Price | $43.23 |
Exercised, Weighted-Average Exercise Price | $29.40 |
Expired or forfeited, Weighted-Average Exercise Price | $32.95 |
Weighted-Average Exercise Price, Outstanding at September 30, 2014 | $31.28 |
Sharebased_Compensation_Summar2
Share-based Compensation - Summary of Cash-Settled SARs Activity (Detail) (Cash-Settled SARs Activity [Member], USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Cash-Settled SARs Activity [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Shares, Outstanding at January 1, 2014 | 1,743,758 |
Granted, Shares | 756,853 |
Exercised, Shares | -386,615 |
Expired or forfeited, Shares | -170,195 |
Shares, Outstanding at September 30, 2014 | 1,943,801 |
Weighted-Average Exercise Price, Outstanding at January 1, 2014 | $33 |
Granted, Weighted-Average Exercise Price | $44.28 |
Exercised, Weighted-Average Exercise Price | $30.94 |
Expired or forfeited, Weighted-Average Exercise Price | $35.49 |
Weighted-Average Exercise Price, Outstanding at September 30, 2014 | $37.58 |
Underwriting_Acquisition_and_I2
Underwriting, Acquisition and Insurance Expenses - Underwriting, Acquisition and Insurance Expenses (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Other Income and Expenses [Abstract] | ' | ' | ' | ' |
Commissions | $59.80 | $57.20 | $178 | $174.70 |
General expenses | 69 | 65.4 | 211.9 | 200.8 |
Premium taxes, boards and bureaus | 7.2 | 6.8 | 19.5 | 19.7 |
Underwriting Acquisition and Insurance Expenses, Total | 136 | 129.4 | 409.4 | 395.2 |
Net deferral amortization of policy acquisition costs | -2.2 | -2.7 | -10.1 | -17.2 |
Total underwriting, acquisition and insurance expenses | $133.80 | $126.70 | $399.30 | $378 |
Underwriting_Acquisition_and_I3
Underwriting, Acquisition and Insurance Expenses - Additional Information (Detail) (Stock Compensation Plan [Member], USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stock Compensation Plan [Member] | ' | ' | ' | ' |
Underwriting Acquisition and Insurance Expense [Line Items] | ' | ' | ' | ' |
Expense associated with cash settled stock appreciation rights | $2.20 | $3.20 | $13.30 | $17.60 |
Income_Taxes_Income_Tax_Provis
Income Taxes - Income Tax Provision (Benefit) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Current tax provision | ($15) | $3.50 | ($10.70) | $13.40 |
Future tax deductions | 19.7 | -2.4 | 52.9 | 2 |
Valuation allowance change | -1.1 | 0.8 | -30 | 2.4 |
Income tax provision | $3.60 | $1.90 | $12.20 | $17.80 |
Income_Taxes_Schedule_of_PreTa
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | $48.30 | $32.90 | $135.70 | $113.20 |
Bermuda [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | 27.5 | 14.2 | 74.3 | 34.2 |
Effective Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
United States [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | 13.5 | 19.6 | 49.2 | 68.6 |
Effective Tax Rate | 16.20% | 22.90% | 20.90% | 23.50% |
United Kingdom [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | 9.2 | 1.6 | 11.1 | 18.3 |
Effective Tax Rate | 15.40% | -164.70% | 17.10% | 9.20% |
Belgium [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | -0.1 | 0.1 | -0.1 | 0.1 |
Effective Tax Rate | -7.90% | 91.60% | -32.40% | 26.90% |
Brazil [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | -1.2 | -1.5 | 3.9 | -6.2 |
Effective Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
United Arab Emirates [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | 0 | -0.4 | -0.9 | -0.4 |
Effective Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
Ireland [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | 0 | -0.1 | 0 | -0.1 |
Effective Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
Malta [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | -0.8 | -0.6 | -1.8 | -1.3 |
Effective Tax Rate | 0.00% | 0.00% | 0.00% | 0.00% |
Switzerland [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax Income | $0.20 | $0 | $0 | $0 |
Effective Tax Rate | 4.80% | 19.70% | 24.20% | 21.00% |
Income_Taxes_Schedule_of_PreTa1
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Parenthetical) (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax income (loss) | $48.30 | $32.90 | $135.70 | $113.20 |
Switzerland [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax income (loss) | 0.2 | 0 | 0 | 0 |
Maximum [Member] | Switzerland [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Pre-tax income (loss) | ' | $0.10 | $0.10 | $0.10 |
Income_Taxes_Reconciliation_of
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Income tax provision at expected rate | $6.10 | $6.20 | $20.60 | $25.20 |
Tax-exempt interest | -1.1 | -1.3 | -3.4 | -4.1 |
Dividends received deduction | -0.5 | -0.7 | -1.7 | -1.8 |
Valuation allowance change | -1.1 | 0.8 | -30 | 2.4 |
Other permanent adjustments, net | -0.1 | -0.5 | -1 | -1.4 |
Adjustment for prior year tax return | -1.1 | 0 | -1.1 | 0 |
Prior period adjustment to deferred | 0.9 | 0 | -0.2 | 0 |
United States state tax benefit | 0 | -0.1 | 0 | -0.4 |
PXRE Reinsurance capital loss carryforward | 0 | 0 | 29.8 | 0 |
Deferred tax rate reduction | -0.1 | -1.3 | -0.1 | -1.3 |
Foreign exchange adjustments | -0.2 | -1.7 | -0.1 | -1.3 |
Foreign withholding taxes | 0 | 0.2 | 0.3 | 0.6 |
Income tax provision | 3.6 | 1.9 | 12.2 | 17.8 |
Income tax provision (benefit) - Foreign | 1.5 | -2.6 | 2 | 1.7 |
Income tax provision-United States Federal | 2.1 | 4.4 | 9.8 | 16.1 |
Income tax (benefit) provision - United States State | 0 | -0.1 | 0.1 | -0.6 |
Foreign withholding tax - United States | 0 | 0.2 | 0.3 | 0.6 |
Income tax provision | 3.6 | 1.9 | 12.2 | 17.8 |
United States [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Adjustment for annualized rate | 0.3 | 0.3 | 0.5 | -0.1 |
Foreign Country [Member] | ' | ' | ' | ' |
Income Tax Examination [Line Items] | ' | ' | ' | ' |
Adjustment for annualized rate | $0.50 | $0 | ($1.40) | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Total net deferred tax liabilities | $29,400,000 | ' | $29,400,000 | ' |
Net operating loss carryforward | 18,000,000 | ' | 18,000,000 | ' |
Valuation allowance | 26,300,000 | ' | 26,300,000 | ' |
Loss carryforwards per year | ' | ' | 2,800,000 | ' |
Increase decrease in valuation allowance | 1,100,000 | -800,000 | 30,000,000 | -2,400,000 |
Unrecognized tax benefits | 0 | 0 | 0 | 0 |
Malta [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Valuation allowance | 2,100,000 | ' | 2,100,000 | ' |
Increase decrease in valuation allowance | ' | ' | 700,000 | ' |
Brazil [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Valuation allowance | 700,000 | ' | 700,000 | ' |
Increase decrease in valuation allowance | ' | ' | 200,000 | ' |
December 31, 2025 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Loss carryforwards, amounts expiring if not utilized | ' | ' | 16,500,000 | ' |
December 31, 2027 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Loss carryforwards, amounts expiring if not utilized | ' | ' | 1,500,000 | ' |
PXRE Corporation [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Valuation allowance | 16,100,000 | ' | 16,100,000 | ' |
Capital loss carryforward | 300,000 | ' | 300,000 | ' |
PXRE Reinsurance Company [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Increase decrease in valuation allowance | ' | ' | 29,800,000 | ' |
ARIS [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Net operating loss carryforward | 1,000,000 | ' | 1,000,000 | ' |
ARIS [Member] | December 31, 2027 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Loss carryforwards, amounts expiring if not utilized | ' | ' | 200,000 | ' |
ARIS [Member] | December 31, 2028 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Loss carryforwards, amounts expiring if not utilized | ' | ' | 400,000 | ' |
ARIS [Member] | December 31, 2029 [Member] | ' | ' | ' | ' |
Income Tax Contingency [Line Items] | ' | ' | ' | ' |
Loss carryforwards, amounts expiring if not utilized | ' | ' | $400,000 | ' |
Commitments_and_Contingencies_
Commitments and Contingencies - Additional Information (Detail) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contractual commitments related to its limited partnership investments | $42.40 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Dec. 31, 2013 |
Segment | ||
Segment Reporting [Abstract] | ' | ' |
Number of reportable segments | 4 | ' |
Assets associated with trade capital providers | $287.60 | $386.80 |
Segment_Information_Revenue_an
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | $337.60 | $330.50 | $999.40 | $962.20 |
Net investment income | 20.8 | 24.1 | 64.7 | 77.3 |
Fee income, net | 1.6 | 0.3 | 0.1 | 0.5 |
Net realized investment and other gains | 12.9 | 9.1 | 42.5 | 29.6 |
Total revenue | 372.9 | 364 | 1,106.70 | 1,069.60 |
Income before income taxes | 48.3 | 32.9 | 135.7 | 113.2 |
Excess and Surplus Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | 121.2 | 120.6 | 363.9 | 334.4 |
Net investment income | 8.9 | 10.2 | 27.2 | 32.3 |
Commercial Specialty [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | 72.7 | 74.6 | 215.5 | 225.1 |
Net investment income | 4.5 | 5.6 | 13.8 | 17.6 |
International Specialty [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | 38 | 37.5 | 112.6 | 106.6 |
Net investment income | 2.3 | 2.4 | 6.1 | 6.4 |
Syndicate 1200 [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | 104.4 | 97.3 | 305.9 | 295.6 |
Net investment income | 2.1 | 2.5 | 7.9 | 8.1 |
Run-Off Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Earned premiums | 1.3 | 0.5 | 1.5 | 0.5 |
Net investment income | 2.4 | 2.6 | 7.2 | 8.2 |
Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net investment income | 0.6 | 0.8 | 2.5 | 4.7 |
Operating Segments [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | 40.1 | 39.6 | 118.6 | 106.5 |
Operating Segments [Member] | Excess and Surplus Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | 27.6 | 29.6 | 75.9 | 60.2 |
Operating Segments [Member] | Commercial Specialty [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | 8 | 10.1 | 9.2 | 17.3 |
Operating Segments [Member] | International Specialty [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | 4 | 0.5 | 16.4 | 8.1 |
Operating Segments [Member] | Syndicate 1200 [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | 8.8 | 8.5 | 34.7 | 26.7 |
Operating Segments [Member] | Run-Off Lines [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Income before income taxes | -8.3 | -9.1 | -17.6 | -5.8 |
Segment Reconciling Items [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net realized investment and other gains | 12.9 | 9.1 | 42.5 | 29.6 |
Segment Reconciling Items [Member] | Corporate and Other [Member] | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' |
Net realized investment and other gains | ($4.70) | ($15.80) | ($25.40) | ($22.90) |
Segment_Information_Schedule_o
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | $337.60 | $330.50 | $999.40 | $962.20 |
Bermuda [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | 27 | 27.4 | 75.7 | 75.3 |
Brazil [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | 11 | 9.9 | 35.4 | 29.9 |
Malta [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | 0.5 | 0.5 | 1.6 | 1.3 |
United Kingdom [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | 104.4 | 97.7 | 305.9 | 296 |
United States [Member] | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets [Line Items] | ' | ' | ' | ' |
Total earned premiums | $194.70 | $195 | $580.80 | $559.70 |
Segment_Information_Identifiab
Segment Information - Identifiable Assets (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | |
In Millions, unless otherwise specified | |||
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | $6,388.60 | $6,591 | [1] |
Excess and Surplus Lines [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | 2,383.80 | 2,252.20 | |
Commercial Specialty [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | 1,287 | 1,333.40 | |
International Specialty [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | 771.5 | 743.6 | |
Syndicate 1200 [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | 1,287.20 | 1,638.80 | |
Run-Off Lines [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | 586.2 | 555.9 | |
Corporate and Other [Member] | ' | ' | |
Segment Reporting, Asset Reconciling Item [Line Items] | ' | ' | |
Identifiable assets | $72.90 | $67.10 | |
[1] | Derived from audited consolidated financial statements. |
Information_Provided_in_Connec2
Information Provided in Connection With Outstanding Debt of Subsidiaries - Additional Information (Detail) | Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
Ownership Percentage | 100.00% |
Information_Provided_in_Connec3
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Balance Sheet (Detail) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||||
Assets | ' | ' | ' | ' | |
Investments | $4,111.70 | $4,079.20 | [1] | ' | ' |
Cash | 73.1 | 157.4 | [1] | 141.6 | 95.8 |
Accrued investment income | 22.2 | 25.7 | [1] | ' | ' |
Premiums receivable | 396.7 | 348.4 | [1] | ' | ' |
Reinsurance recoverables | 1,002.30 | 1,263.50 | [1] | ' | ' |
Goodwill and other intangible assets, net | 235.5 | 239.8 | ' | ' | |
Current income taxes receivable, net | 30 | 0 | [1] | ' | ' |
Deferred acquisition costs, net | 130 | 113.9 | [1] | ' | ' |
Ceded unearned premiums | 227 | 196.3 | [1] | ' | ' |
Other assets | 160.1 | 166.8 | [1] | ' | ' |
Due from affiliates | 0 | 0 | ' | ' | |
Intercompany note receivable | 0 | 0 | ' | ' | |
Investments in subsidiaries | 0 | 0 | ' | ' | |
Total assets | 6,388.60 | 6,591 | [1] | ' | ' |
Liabilities and Shareholders' Equity | ' | ' | ' | ' | |
Reserves for losses and loss adjustment expenses | 3,062.60 | 3,230.30 | [1] | 3,222.90 | ' |
Unearned premiums | 865.4 | 779.1 | [1] | ' | ' |
Funds held and ceded reinsurance payable, net | 238.8 | 398.4 | ' | ' | |
Long-term debt | 380.9 | 403.4 | ' | ' | |
Current income taxes payable, net | 0 | 5.2 | [1] | ' | ' |
Deferred tax liabilities, net | 55.7 | 28.7 | [1] | ' | ' |
Accrued underwriting expenses and other liabilities | 158.3 | 182.9 | ' | ' | |
Intercompany note payable | 0 | 0 | ' | ' | |
Total liabilities | 4,761.70 | 5,028 | [1] | ' | ' |
Total shareholders' equity | 1,626.90 | 1,563 | [1] | ' | ' |
Total liabilities and shareholders' equity | 6,388.60 | 6,591 | [1] | ' | ' |
Consolidating Adjustments [Member] | ' | ' | ' | ' | |
Assets | ' | ' | ' | ' | |
Investments | 0 | 0 | ' | ' | |
Cash | -18 | 0 | 0 | 0 | |
Accrued investment income | 0 | 0 | ' | ' | |
Premiums receivable | 0 | 0 | ' | ' | |
Reinsurance recoverables | 0 | 0 | ' | ' | |
Goodwill and other intangible assets, net | 0 | 0 | ' | ' | |
Current income taxes receivable, net | 0 | 0 | ' | ' | |
Deferred acquisition costs, net | 0 | 0 | ' | ' | |
Ceded unearned premiums | 0 | 0 | ' | ' | |
Other assets | -7 | 0 | ' | ' | |
Due from affiliates | -7 | -3.1 | ' | ' | |
Intercompany note receivable | 0 | 0 | ' | ' | |
Investments in subsidiaries | -1,710.80 | -1,625.20 | ' | ' | |
Total assets | -1,742.80 | -1,628.30 | ' | ' | |
Liabilities and Shareholders' Equity | ' | ' | ' | ' | |
Reserves for losses and loss adjustment expenses | 0 | 0 | ' | ' | |
Unearned premiums | 0 | 0 | ' | ' | |
Funds held and ceded reinsurance payable, net | 0 | 0 | ' | ' | |
Long-term debt | -20.6 | 0 | ' | ' | |
Current income taxes payable, net | ' | 0 | ' | ' | |
Deferred tax liabilities, net | 0 | 0 | ' | ' | |
Accrued underwriting expenses and other liabilities | 0 | 0 | ' | ' | |
Intercompany note payable | -40.9 | -6.6 | ' | ' | |
Total liabilities | -61.5 | -6.6 | ' | ' | |
Total shareholders' equity | -1,681.30 | -1,621.70 | ' | ' | |
Total liabilities and shareholders' equity | -1,742.80 | -1,628.30 | ' | ' | |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ' | ' | ' | ' | |
Assets | ' | ' | ' | ' | |
Investments | 1.9 | 1.1 | ' | ' | |
Cash | 0 | 0 | 0 | 0 | |
Accrued investment income | 0 | 0 | ' | ' | |
Premiums receivable | 0 | 0 | ' | ' | |
Reinsurance recoverables | 0 | 0 | ' | ' | |
Goodwill and other intangible assets, net | 0 | 0 | ' | ' | |
Current income taxes receivable, net | 0 | 0 | ' | ' | |
Deferred acquisition costs, net | 0 | 0 | ' | ' | |
Ceded unearned premiums | 0 | 0 | ' | ' | |
Other assets | 10.4 | 4.6 | ' | ' | |
Due from affiliates | 7 | 3.1 | ' | ' | |
Intercompany note receivable | 0 | 0 | ' | ' | |
Investments in subsidiaries | 1,710.80 | 1,625.20 | ' | ' | |
Total assets | 1,730.10 | 1,634 | ' | ' | |
Liabilities and Shareholders' Equity | ' | ' | ' | ' | |
Reserves for losses and loss adjustment expenses | 0 | 0 | ' | ' | |
Unearned premiums | 0 | 0 | ' | ' | |
Funds held and ceded reinsurance payable, net | 0 | 0 | ' | ' | |
Long-term debt | 49 | 49 | ' | ' | |
Current income taxes payable, net | ' | 0 | ' | ' | |
Deferred tax liabilities, net | 0 | 0 | ' | ' | |
Accrued underwriting expenses and other liabilities | 13.3 | 15.4 | ' | ' | |
Intercompany note payable | 40.9 | 6.6 | ' | ' | |
Total liabilities | 103.2 | 71 | ' | ' | |
Total shareholders' equity | 1,626.90 | 1,563 | ' | ' | |
Total liabilities and shareholders' equity | 1,730.10 | 1,634 | ' | ' | |
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | ' | ' | ' | ' | |
Assets | ' | ' | ' | ' | |
Investments | 2,847.80 | 2,785.10 | ' | ' | |
Cash | 69 | 132.1 | 117.5 | 73.9 | |
Accrued investment income | 17.2 | 19.7 | ' | ' | |
Premiums receivable | 161 | 150.8 | ' | ' | |
Reinsurance recoverables | 1,188.70 | 1,145.90 | ' | ' | |
Goodwill and other intangible assets, net | 135.6 | 137.4 | ' | ' | |
Current income taxes receivable, net | 25.3 | 0.5 | ' | ' | |
Deferred acquisition costs, net | 58.4 | 55.6 | ' | ' | |
Ceded unearned premiums | 100.9 | 88.2 | ' | ' | |
Other assets | 104.1 | 97.8 | ' | ' | |
Due from affiliates | -18.8 | 1.5 | ' | ' | |
Intercompany note receivable | 71.4 | 87.4 | ' | ' | |
Investments in subsidiaries | 0 | 0 | ' | ' | |
Total assets | 4,760.60 | 4,702 | ' | ' | |
Liabilities and Shareholders' Equity | ' | ' | ' | ' | |
Reserves for losses and loss adjustment expenses | 2,160.50 | 2,157 | ' | ' | |
Unearned premiums | 453.1 | 425.5 | ' | ' | |
Funds held and ceded reinsurance payable, net | 658.5 | 642.4 | ' | ' | |
Long-term debt | 288.7 | 288.9 | ' | ' | |
Current income taxes payable, net | ' | 8.9 | ' | ' | |
Deferred tax liabilities, net | 47.1 | 22.8 | ' | ' | |
Accrued underwriting expenses and other liabilities | 93.5 | 98.2 | ' | ' | |
Intercompany note payable | 0 | 0 | ' | ' | |
Total liabilities | 3,701.40 | 3,643.70 | ' | ' | |
Total shareholders' equity | 1,059.20 | 1,058.30 | ' | ' | |
Total liabilities and shareholders' equity | 4,760.60 | 4,702 | ' | ' | |
Other Subsidiaries and Eliminations [Member] | ' | ' | ' | ' | |
Assets | ' | ' | ' | ' | |
Investments | 1,262 | 1,293 | ' | ' | |
Cash | 22.1 | 25.3 | 24.1 | 21.9 | |
Accrued investment income | 5 | 6 | ' | ' | |
Premiums receivable | 235.7 | 197.6 | ' | ' | |
Reinsurance recoverables | -186.4 | 117.6 | ' | ' | |
Goodwill and other intangible assets, net | 99.9 | 102.4 | ' | ' | |
Current income taxes receivable, net | 4.7 | -0.5 | ' | ' | |
Deferred acquisition costs, net | 71.6 | 58.3 | ' | ' | |
Ceded unearned premiums | 126.1 | 108.1 | ' | ' | |
Other assets | 52.6 | 64.4 | ' | ' | |
Due from affiliates | 18.8 | -1.5 | ' | ' | |
Intercompany note receivable | -71.4 | -87.4 | ' | ' | |
Investments in subsidiaries | 0 | 0 | ' | ' | |
Total assets | 1,640.70 | 1,883.30 | ' | ' | |
Liabilities and Shareholders' Equity | ' | ' | ' | ' | |
Reserves for losses and loss adjustment expenses | 902.1 | 1,073.30 | ' | ' | |
Unearned premiums | 412.3 | 353.6 | ' | ' | |
Funds held and ceded reinsurance payable, net | -419.7 | -244 | ' | ' | |
Long-term debt | 63.8 | 65.5 | ' | ' | |
Current income taxes payable, net | ' | -3.7 | ' | ' | |
Deferred tax liabilities, net | 8.6 | 5.9 | ' | ' | |
Accrued underwriting expenses and other liabilities | 51.5 | 69.3 | ' | ' | |
Intercompany note payable | 0 | 0 | ' | ' | |
Total liabilities | 1,018.60 | 1,319.90 | ' | ' | |
Total shareholders' equity | 622.1 | 563.4 | ' | ' | |
Total liabilities and shareholders' equity | $1,640.70 | $1,883.30 | ' | ' | |
[1] | Derived from audited consolidated financial statements. |
Information_Provided_in_Connec4
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Statement of Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | $337.60 | $330.50 | $999.40 | $962.20 |
Net investment (loss) income | 20.8 | 24.1 | 64.7 | 77.3 |
Fee income, net | 1.6 | 0.3 | 0.1 | 0.5 |
Net realized investment gains (losses) and other | 12.9 | 9.1 | 42.5 | 29.6 |
Total revenue | 372.9 | 364 | 1,106.70 | 1,069.60 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 191.9 | 190.9 | 559.5 | 554.1 |
Other reinsurance-related expenses | 0 | 4.6 | 0 | 14.4 |
Underwriting, acquisition and insurance expenses | 133.8 | 126.7 | 399.3 | 378 |
Interest expense | 4.9 | 5.1 | 15 | 15.1 |
Foreign currency exchange loss (gain) | -6 | 3.8 | -2.8 | -5.2 |
Total expenses | 324.6 | 331.1 | 971 | 956.4 |
(Loss) income before income taxes | 48.3 | 32.9 | 135.7 | 113.2 |
Provision for income taxes | 3.6 | 1.9 | 12.2 | 17.8 |
Net (loss) income before equity in earnings of subsidiaries | 44.7 | 31 | 123.5 | 95.4 |
Equity in undistributed earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 44.7 | 31 | 123.5 | 95.4 |
Consolidating Adjustments [Member] | ' | ' | ' | ' |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | 0 | 0 | 0 | 0 |
Net investment (loss) income | 0 | -0.3 | 0 | -0.9 |
Fee income, net | 0 | 0 | 0 | 0 |
Net realized investment gains (losses) and other | 0 | 0 | 0 | 0 |
Total revenue | 0 | -0.3 | 0 | -0.9 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 0 | 0 | 0 | 0 |
Other reinsurance-related expenses | ' | 0 | ' | 0 |
Underwriting, acquisition and insurance expenses | 0 | 0 | 0 | 0 |
Interest expense | -0.2 | -0.3 | -0.3 | -0.9 |
Foreign currency exchange loss (gain) | 0 | 0 | 0 | 0 |
Total expenses | -0.2 | -0.3 | -0.3 | -0.9 |
(Loss) income before income taxes | 0.2 | 0 | 0.3 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net (loss) income before equity in earnings of subsidiaries | 0.2 | 0 | 0.3 | 0 |
Equity in undistributed earnings of subsidiaries | -47.9 | -37.5 | -138.1 | -116 |
Net income | -47.7 | -37.5 | -137.8 | -116 |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ' | ' | ' | ' |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | 0 | 0 | 0 | 0 |
Net investment (loss) income | -0.1 | 0 | -0.3 | 0 |
Fee income, net | 0 | 0 | 0 | 0 |
Net realized investment gains (losses) and other | 0 | 0 | 0 | 0 |
Total revenue | -0.1 | 0 | -0.3 | 0 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 0 | 0 | 0 | 0 |
Other reinsurance-related expenses | ' | 0 | ' | 0 |
Underwriting, acquisition and insurance expenses | 2.3 | 5.8 | 12.5 | 18.3 |
Interest expense | 0.7 | 0.7 | 1.8 | 2.3 |
Foreign currency exchange loss (gain) | 0 | 0 | 0 | 0 |
Total expenses | 3 | 6.5 | 14.3 | 20.6 |
(Loss) income before income taxes | -3.1 | -6.5 | -14.6 | -20.6 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Net (loss) income before equity in earnings of subsidiaries | -3.1 | -6.5 | -14.6 | -20.6 |
Equity in undistributed earnings of subsidiaries | 47.9 | 37.5 | 138.1 | 116 |
Net income | 44.8 | 31 | 123.5 | 95.4 |
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | ' | ' | ' | ' |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | 114.2 | 105.2 | 343.7 | 321.2 |
Net investment (loss) income | 13.6 | 16.7 | 42.4 | 57.2 |
Fee income, net | 1.5 | -0.6 | -1.5 | -1.9 |
Net realized investment gains (losses) and other | 9.2 | 7.2 | 34.6 | 32.8 |
Total revenue | 138.5 | 128.5 | 419.2 | 409.3 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 69.9 | 65.9 | 211.2 | 194.9 |
Other reinsurance-related expenses | ' | -2.9 | ' | 0 |
Underwriting, acquisition and insurance expenses | 51.6 | 42.1 | 147.9 | 134.3 |
Interest expense | 3.8 | 3.8 | 11.4 | 11.4 |
Foreign currency exchange loss (gain) | 0.3 | -0.1 | 0.1 | 0.1 |
Total expenses | 125.6 | 108.8 | 370.6 | 340.7 |
(Loss) income before income taxes | 12.9 | 19.7 | 48.6 | 68.6 |
Provision for income taxes | 2.1 | 4.4 | 10.2 | 16 |
Net (loss) income before equity in earnings of subsidiaries | 10.8 | 15.3 | 38.4 | 52.6 |
Equity in undistributed earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 10.8 | 15.3 | 38.4 | 52.6 |
Other Subsidiaries and Eliminations [Member] | ' | ' | ' | ' |
Premiums and other revenue: | ' | ' | ' | ' |
Earned premiums | 223.4 | 225.3 | 655.7 | 641 |
Net investment (loss) income | 7.3 | 7.7 | 22.6 | 21 |
Fee income, net | 0.1 | 0.9 | 1.6 | 2.4 |
Net realized investment gains (losses) and other | 3.7 | 1.9 | 7.9 | -3.2 |
Total revenue | 234.5 | 235.8 | 687.8 | 661.2 |
Expenses: | ' | ' | ' | ' |
Losses and loss adjustment expenses | 122 | 125 | 348.3 | 359.2 |
Other reinsurance-related expenses | ' | 7.5 | ' | 14.4 |
Underwriting, acquisition and insurance expenses | 79.9 | 78.8 | 238.9 | 225.4 |
Interest expense | 0.6 | 0.9 | 2.1 | 2.3 |
Foreign currency exchange loss (gain) | -6.3 | 3.9 | -2.9 | -5.3 |
Total expenses | 196.2 | 216.1 | 586.4 | 596 |
(Loss) income before income taxes | 38.3 | 19.7 | 101.4 | 65.2 |
Provision for income taxes | 1.5 | -2.5 | 2 | 1.8 |
Net (loss) income before equity in earnings of subsidiaries | 36.8 | 22.2 | 99.4 | 63.4 |
Equity in undistributed earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | $36.80 | $22.20 | $99.40 | $63.40 |
Information_Provided_in_Connec5
Information Provided in Connection with Outstanding Debt of Subsidiaries - Condensed Consolidating Statement of Cash Flows (Detail) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net cash flows from operating activities | $71.70 | ($3) | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales of investments | 976.1 | 1,378.80 | |
Proceeds from maturities and mandatory calls of investments | 243.6 | 224.2 | |
Purchases of investments | -1,264.80 | -1,407.30 | |
Change in short-term investments and foreign regulatory deposits | 6 | -75.5 | |
Settlements of foreign currency exchange forward contracts | 0.6 | -6.4 | |
Issuance of intercompany note, net | 0 | 0 | |
Purchase of fixed assets | -26.7 | -19.1 | |
Other, net | -21.5 | 4.5 | |
Cash (used) provided by investing activities | -86.7 | 99.2 | |
Cash flows from financing activities: | ' | ' | |
Borrowings under intercompany note, net | 0 | 0 | |
Redemption of trust preferred securities, net | -18 | 0 | |
Payment on note payable | -0.1 | 0 | |
Activity under stock incentive plans | 3.3 | 1.4 | |
Repurchase of Company's common shares | -40.9 | -40.1 | |
Excess tax expense from share-based payment arrangements | 0.1 | 0.2 | |
Payment of cash dividends to common shareholders | -13.4 | -11.8 | |
Cash used by financing activities | -69 | -50.3 | |
Effect of exchange rate changes on cash | -0.3 | -0.1 | |
Change in cash | -84.3 | 45.8 | |
Cash, beginning of period | 157.4 | [1] | 95.8 |
Cash, end of period | 73.1 | 141.6 | |
Consolidating Adjustments [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net cash flows from operating activities | 6.4 | 0 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales of investments | 0 | 0 | |
Proceeds from maturities and mandatory calls of investments | 0 | 0 | |
Purchases of investments | 0 | 0 | |
Change in short-term investments and foreign regulatory deposits | 0 | 0 | |
Settlements of foreign currency exchange forward contracts | 0 | 0 | |
Issuance of intercompany note, net | 34 | 24.9 | |
Purchase of fixed assets | -6.4 | 0 | |
Other, net | 0 | 0 | |
Cash (used) provided by investing activities | 27.6 | 24.9 | |
Cash flows from financing activities: | ' | ' | |
Borrowings under intercompany note, net | -34 | -24.9 | |
Redemption of trust preferred securities, net | -18 | ' | |
Payment on note payable | 0 | ' | |
Activity under stock incentive plans | 0 | 0 | |
Repurchase of Company's common shares | 0 | 0 | |
Excess tax expense from share-based payment arrangements | 0 | 0 | |
Payment of cash dividends to common shareholders | 0 | 0 | |
Cash used by financing activities | -52 | -24.9 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Change in cash | -18 | 0 | |
Cash, beginning of period | 0 | 0 | |
Cash, end of period | -18 | 0 | |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net cash flows from operating activities | -16.5 | -15.5 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales of investments | 0 | 0 | |
Proceeds from maturities and mandatory calls of investments | 0 | 0 | |
Purchases of investments | 0 | 0 | |
Change in short-term investments and foreign regulatory deposits | 0.1 | -0.8 | |
Settlements of foreign currency exchange forward contracts | -0.5 | 1.9 | |
Issuance of intercompany note, net | 0 | 0 | |
Purchase of fixed assets | -7 | 0 | |
Other, net | 0 | -0.1 | |
Cash (used) provided by investing activities | -7.4 | 1 | |
Cash flows from financing activities: | ' | ' | |
Borrowings under intercompany note, net | 34 | 24.9 | |
Redemption of trust preferred securities, net | 0 | ' | |
Payment on note payable | 0 | ' | |
Activity under stock incentive plans | 3.3 | 1.4 | |
Repurchase of Company's common shares | 0 | 0 | |
Excess tax expense from share-based payment arrangements | 0 | 0 | |
Payment of cash dividends to common shareholders | -13.4 | -11.8 | |
Cash used by financing activities | 23.9 | 14.5 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Change in cash | 0 | 0 | |
Cash, beginning of period | 0 | 0 | |
Cash, end of period | 0 | 0 | |
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net cash flows from operating activities | 11.8 | 75.9 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales of investments | 609.2 | 863.2 | |
Proceeds from maturities and mandatory calls of investments | 148 | 139 | |
Purchases of investments | -773.1 | -942.4 | |
Change in short-term investments and foreign regulatory deposits | -12.5 | -38.5 | |
Settlements of foreign currency exchange forward contracts | 0 | 0 | |
Issuance of intercompany note, net | 14.5 | 0 | |
Purchase of fixed assets | -17.7 | -17.7 | |
Other, net | -2.4 | 4.4 | |
Cash (used) provided by investing activities | -34 | 8 | |
Cash flows from financing activities: | ' | ' | |
Borrowings under intercompany note, net | 0 | 0 | |
Redemption of trust preferred securities, net | 0 | ' | |
Payment on note payable | -0.1 | ' | |
Activity under stock incentive plans | 0 | 0 | |
Repurchase of Company's common shares | -40.9 | -40.1 | |
Excess tax expense from share-based payment arrangements | 0.1 | -0.2 | |
Payment of cash dividends to common shareholders | 0 | 0 | |
Cash used by financing activities | -40.9 | -40.3 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Change in cash | -63.1 | 43.6 | |
Cash, beginning of period | 132.1 | 73.9 | |
Cash, end of period | 69 | 117.5 | |
Other Subsidiaries and Eliminations [Member] | ' | ' | |
Condensed Financial Statements, Captions [Line Items] | ' | ' | |
Net cash flows from operating activities | 70 | -63.4 | |
Cash flows from investing activities: | ' | ' | |
Proceeds from sales of investments | 366.9 | 515.6 | |
Proceeds from maturities and mandatory calls of investments | 95.6 | 85.2 | |
Purchases of investments | -491.7 | -464.9 | |
Change in short-term investments and foreign regulatory deposits | 18.4 | -36.2 | |
Settlements of foreign currency exchange forward contracts | 1.1 | -8.3 | |
Issuance of intercompany note, net | -48.5 | -24.9 | |
Purchase of fixed assets | 4.4 | -1.4 | |
Other, net | -19.1 | 0.2 | |
Cash (used) provided by investing activities | -72.9 | 65.3 | |
Cash flows from financing activities: | ' | ' | |
Borrowings under intercompany note, net | 0 | 0 | |
Redemption of trust preferred securities, net | 0 | ' | |
Payment on note payable | 0 | ' | |
Activity under stock incentive plans | 0 | 0 | |
Repurchase of Company's common shares | 0 | 0 | |
Excess tax expense from share-based payment arrangements | 0 | 0.4 | |
Payment of cash dividends to common shareholders | 0 | 0 | |
Cash used by financing activities | 0 | 0.4 | |
Effect of exchange rate changes on cash | -0.3 | -0.1 | |
Change in cash | -3.2 | 2.2 | |
Cash, beginning of period | 25.3 | 21.9 | |
Cash, end of period | $22.10 | $24.10 | |
[1] | Derived from audited consolidated financial statements. |