Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 02, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | AGII | |
Entity Registrant Name | Argo Group International Holdings, Ltd. | |
Entity Central Index Key | 1,091,748 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 27,492,452 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | [1] |
Assets | |||
Available-for-sale (cost: 2016 - $2,911.8; 2015 - $2,971.0) | $ 2,907.6 | $ 2,927.3 | |
Equity securities, at fair value (cost: 2016 - $324.5; 2015 - $349.7) | 430.3 | 463.9 | |
Other investments (cost: 2016 - $532.1; 2015 - $499.6) | 523 | 513.7 | |
Short-term investments, at fair value (cost: 2016 - $266.1; 2015 - $211.2) | 266.2 | 210.8 | |
Total investments | 4,127.1 | 4,115.7 | |
Cash | 122.9 | 121.7 | |
Accrued investment income | 21.3 | 21.6 | |
Premiums receivable | 448.4 | 404.5 | |
Reinsurance recoverables | 1,151.1 | 1,121.1 | |
Goodwill | 152.2 | 152.2 | |
Intangible assets, net of accumulated amortization | 71.9 | 73.3 | |
Current income taxes receivable, net | 9.3 | 11.6 | |
Deferred acquisition costs, net | 136.4 | 132.4 | |
Ceded unearned premiums | 308 | 250.8 | |
Other assets | 271.1 | 220.7 | |
Total assets | 6,819.7 | 6,625.6 | |
Liabilities and Shareholders' Equity | |||
Reserves for losses and loss adjustment expenses | 3,141.5 | 3,123.6 | |
Unearned premiums | 907.8 | 886.7 | |
Accrued underwriting expenses | 121.4 | 133.9 | |
Ceded reinsurance payable, net | 410.1 | 312.4 | |
Funds held | 87.7 | 77.6 | |
Senior unsecured fixed rate notes | 139.4 | 139.3 | |
Other indebtedness | 56.4 | 55.2 | |
Junior subordinated debentures | 172.7 | 172.7 | |
Deferred tax liabilities, net | 31.5 | 23.6 | |
Other liabilities | 45.8 | 32.5 | |
Total liabilities | 5,114.3 | 4,957.5 | |
Commitments and contingencies (Note 13) | 0 | 0 | |
Shareholders' equity: | |||
Common shares - $1.00 par, 500,000,000 shares authorized; 37,162,077 and 37,105,922 shares issued at March 31, 2016 and December 31, 2015, respectively | 37.2 | 37.1 | |
Additional paid-in capital | 970.8 | 964.9 | |
Treasury shares (9,525,296 and 9,181,644 shares at March 31, 2016 and December 31, 2015, respectively) | (350.1) | (331.1) | |
Retained earnings | 1,007.2 | 985.7 | |
Accumulated other comprehensive income, net of taxes | 40.3 | 11.5 | |
Total shareholders' equity | 1,705.4 | 1,668.1 | |
Total liabilities and shareholders' equity | $ 6,819.7 | $ 6,625.6 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | [1] |
Statement Of Financial Position [Abstract] | |||
Available-for-sale cost | $ 2,911.8 | $ 2,971 | |
Equity securities cost | 324.5 | 349.7 | |
Other investments cost | 532.1 | 499.6 | |
Short-term investments, Cost | $ 266.1 | $ 211.2 | |
Common shares, par value | $ 1 | $ 1 | |
Common shares, shares authorized | 500,000,000 | 500,000,000 | |
Common shares, shares issued | 37,162,077 | 37,105,922 | |
Treasury shares, shares | 9,525,296 | 9,181,644 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Premiums and other revenue: | ||
Earned premiums | $ 344.9 | $ 334.6 |
Net investment income | 21.2 | 25.7 |
Fee and other income | 6.8 | 4.6 |
Net realized investment and other (losses) gains | (2.8) | 11.1 |
Total revenue | 370.1 | 376 |
Expenses: | ||
Losses and loss adjustment expenses | 191.6 | 183.7 |
Underwriting, acquisition and insurance expenses | 132.6 | 129.6 |
Interest expense | 4.8 | 4.9 |
Fee and other expense | 6.5 | 5 |
Foreign currency exchange loss (gain) | 1.5 | (9.6) |
Total expenses | 337 | 313.6 |
Income before income taxes | 33.1 | 62.4 |
Provision for income taxes | 5.4 | 3.6 |
Net income before equity in earnings of subsidiaries | 27.7 | 58.8 |
Equity in undistributed earnings of subsidiaries | 0 | 0 |
Net income | $ 27.7 | $ 58.8 |
Net income per common share: | ||
Basic | $ 1 | $ 2.09 |
Diluted | 0.98 | 2.05 |
Dividend declared per common share | $ 0.22 | $ 0.20 |
Weighted average common shares: | ||
Basic | 27,710,955 | 28,129,692 |
Diluted | 28,304,571 | 28,677,379 |
Net realized investment and other (losses) gains before other-than- temporary impairment losses | $ (1.1) | $ 11.6 |
Other-than-temporary impairment losses recognized in earnings: | ||
Other-than-temporary impairment losses on fixed maturities | (0.6) | (0.4) |
Other-than-temporary impairment losses on equity securities | (1.1) | (0.1) |
Impairment losses recognized in earnings | (1.7) | (0.5) |
Net realized investment and other (losses) gains | $ (2.8) | $ 11.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 27.7 | $ 58.8 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 1.5 | (3.1) |
Unrealized gains (losses) on securities: | ||
Gains (losses) arising during the year | 38.8 | (24.3) |
Reclassification adjustment for (gains) losses included in net income | (7.8) | 2.5 |
Other comprehensive income (loss) before tax | 32.5 | (24.9) |
Unrealized gains (loss) on securities: | ||
Gains (losses) arising during the year | 7.8 | (2.8) |
Reclassification adjustment for gains included in net income | (4.1) | (0.1) |
Income tax provision (benefit) related to other comprehensive income (loss) | 3.7 | (2.9) |
Other comprehensive income (loss), net of tax | 28.8 | (22) |
Comprehensive income | $ 56.5 | $ 36.8 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Cash flows from operating activities: | |||
Net income | $ 27.7 | $ 58.8 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Amortization and depreciation | 10 | 8.9 | |
Share-based payments expense | 3 | 5.2 | |
Excess tax benefit from share-based payment arrangements | (0.1) | 0 | |
Deferred income tax provision, net | 3.9 | 3.8 | |
Net realized investment and other (gains) losses | 2.8 | (11.1) | |
Undistributed earnings from alternative investment portfolio | 1.6 | (4.9) | |
Amortization of debt extinguishment costs | (0.1) | (0.1) | |
Loss on disposals of fixed assets, net | 0.1 | 0.2 | |
Change in: | |||
Accrued investment income | 0.3 | 1.2 | |
Receivables | (71.5) | (12.5) | |
Deferred acquisition costs | (3.9) | (5.4) | |
Ceded unearned premiums | (56.7) | (51) | |
Reserves for losses and loss adjustment expenses | 14.6 | (2.2) | |
Unearned premiums | 19.7 | 13.1 | |
Ceded reinsurance payable and funds held | 107.5 | 27.9 | |
Income taxes | 2.4 | 7.7 | |
Accrued underwriting expenses | (8.8) | (18.9) | |
Other, net | (1.3) | 6.8 | |
Cash provided by operating activities | 51.2 | 27.5 | |
Cash flows from investing activities: | |||
Sales of fixed maturity investments | 304.1 | 399.3 | |
Maturities and mandatory calls of fixed maturity investments | 133.2 | 142 | |
Sales of equity securities | 74.6 | 14.7 | |
Sales of other investments | 2 | 9 | |
Purchases of fixed maturity investments | (389.5) | (514.5) | |
Purchases of equity securities | (35.8) | (19.9) | |
Purchases of other investments | (33.3) | (22.8) | |
Change in foreign regulatory deposits and voluntary pools | (1.1) | 1.1 | |
Change in short-term investments | (54.8) | 3.7 | |
Settlements of foreign currency exchange forward contracts | (3.9) | (2.2) | |
Purchases of fixed assets | (6.8) | (17.8) | |
Other, net | (14.2) | 9.5 | |
Cash (used) provided by investing activities | (25.5) | 2.1 | |
Cash flows from financing activities: | |||
Amortization of debt issuance costs | 0.1 | 0.1 | |
Activity under stock incentive plans | 0.3 | 0.9 | |
Repurchase of Company's common shares | (19) | (17) | |
Excess tax expense from share-based payment arrangements | 0.1 | 0 | |
Payment of cash dividends to common shareholders | (6.2) | (5.7) | |
Cash used by financing activities | (24.7) | (21.7) | |
Effect of exchange rate changes on cash | 0.2 | 0.2 | |
Change in cash | 1.2 | 8.1 | |
Cash, beginning of period | 121.7 | [1] | 81 |
Cash, end of period | $ 122.9 | $ 89.1 | |
[1] | Derived from audited consolidated financial statements. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2016 | |
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, 2015, filed with the Securities and Exchange Commission on February 26, 2016. The interim financial information as of, and for the three months ended, March 31, 2016 and 2015 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. During the first quarter of 2016, we evaluated our accounting for our alternative investment portfolio and determined that as we manage these investments to appreciate in value on a quarter to quarter basis, it is more appropriate to classify the change in value as net investment income as opposed to realized investment gains (losses). As a result, net investment income for the three months ended March 31, 2015 was increased $4.9 million and net realized investment and other gains were reduced $4.9 million for this reclassification. For the three months ended March 31, 2016, we recorded a $1.6 million reduction to net investment income for the change in value of these securities. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Pronouncements | 2. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, “Leases” (Topic 842). ASU 2016-02 requires organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additionally, ASU 2016-02 modifies current guidance for lessors' accounting. ASU 2016-02 is effective for interim and annual reporting periods beginning on or after January 1, 2019, with early adoption permitted. We are currently assessing the impact that the adoption of ASU 2016-02 will have on our financial results and disclosures In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (Subtopic 825-10). The ASU will require equity investments that are not consolidated or accounted for under the equity method of accounting to be measured at fair value with changes in fair value recognized in net income. This ASU will also require us to assess the ability to realize of any deferred tax assets (“DTAs”) related to an available-for-sale debt security in combination with our other DTAs. The ASU will be effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We are currently in the process of evaluating the impact of the adoption of ASU 2016-01 on our financial results and disclosures. In May 2015, the FASB issued ASU 2015-09, “Disclosures about Short-Duration Contracts” (Topic 944). ASU 2015-09 requires additional disclosures for unpaid claim liabilities and claim adjustment expenses for short-duration insurance contracts (i.e., coverage provided for a fixed period of short duration, typically a year or less). The standard will require tables showing incurred and paid claims development information by accident year for the number of years claims typically remaining outstanding, but not more than 10 years, including a reconciliation of this information to the statement of financial position. This ASU is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods after December 15, 2016. We are currently in the process of evaluating the impact of the adoption of ASU 2015-09 on our financial disclosures. In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers” (Topic 606). ASU 2014-09 contains principles that an entity will need to apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, “Principal versus Agent Considerations” (Topic 606) which reframes the indicators in the guidance to focus on evidence that an entity is acting as a principal rather than as an agent. Entities can apply the final standard using one of the following two methods: 1. retrospectively to each prior period presented; or 2. retrospectively, with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application, with additional disclosures in reporting periods that include the date of initial application. ASU 2014-09 is effective for interim and annual reporting periods beginning on or after January 1, 2017. In August 2015, the FASB issued ASU 2015-14, “Deferral of the Effective Date” (Topic 606) which allows for a deferral of the implementation until January 1, 2018, and permits early application, but not before the original effective date of January 1, 2017. While insurance contracts are excluded from this ASU, 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 continue to evaluate what impact this ASU will have on our financial results and disclosures and which adoption method to apply, but do not anticipate such impact being material based on the limited revenue streams subject to the ASU. Accounting Standards Retrospectively Adopted in 2016 In April 2015, the FASB issued ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which amends the guidance in Accounting Standards Codification Topic 835-30 “Interest-Imputation of Interest.” ASU 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. For public business entities, the guidance was effective for annual and interim periods beginning after December 15, 2015. We adopted this guidance effective January 1, 2016 and adjusted our prior period balances to reflect the adoption of this guidance. As of December 31, 2015, we reported $4.5 million of unamortized debt issuance costs related to our Senior unsecured fixed rate notes. The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Balance Sheets were as follows: December 31, 2015 (in millions) As Previously Reported As Adjusted Effect of Change Other assets $ 225.2 $ 220.7 $ (4.5 ) Senior unsecured fixed rate notes 143.8 139.3 (4.5 ) The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Statements of Cash Flows were as follows: For the three months ended March 31, 2015 (in millions) As Previously Reported As Adjusted Effect of Change Cash flows from operating activities: Amortization of debt issuance costs $ — $ (0.1 ) $ (0.1 ) Cash flows from financing activities: Amortization of debt issuance costs — 0.1 0.1 There were no changes to the Consolidated Statements of Income for the periods presented as a result of adoption of the authoritative guidance. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities USD denominated: U.S. Governments $ 197.4 $ 2.1 $ 0.1 $ 199.4 Non-U.S. Governments 82.1 0.6 0.2 82.5 Obligations of states and political subdivisions 408.6 20.8 0.3 429.1 Credit-Financial 504.0 8.0 2.2 509.8 Credit-Industrial 533.2 9.8 7.8 535.2 Credit-Utility 162.1 2.4 11.3 153.2 Structured securities: CMO/MBS-agency (1) 145.8 5.7 0.1 151.4 CMO/MBS-non agency 6.3 0.6 — 6.9 CMBS (2) 217.2 1.1 0.9 217.4 ABS (3) 116.4 0.4 0.3 116.5 CLO (4) 145.5 — 2.9 142.6 Foreign denominated: Governments 166.9 2.4 10.6 158.7 Credit 119.7 1.6 15.0 106.3 ABS/CMBS 18.7 0.1 2.2 16.6 CLO 87.9 1.5 7.4 82.0 Total fixed maturities 2,911.8 57.1 61.3 2,907.6 Equity securities 324.5 121.0 15.2 430.3 Other investments 532.1 7.5 16.6 523.0 Short-term investments 266.1 0.1 — 266.2 Total investments $ 4,034.5 $ 185.7 $ 93.1 $ 4,127.1 (1) Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). (2) Commercial mortgage-backed securities (“CMBS”). (3) Asset-backed securities (“ABS”). (4) December 31, 2015 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities USD denominated: U.S. Governments $ 207.9 $ 0.7 $ 0.7 $ 207.9 Non-U.S. Governments 92.9 — 1.2 91.7 Obligations of states and political subdivisions 467.6 20.7 0.3 488.0 Credit-Financial 533.3 6.1 3.5 535.9 Credit-Industrial 524.2 5.4 11.7 517.9 Credit-Utility 168.7 0.9 13.4 156.2 Structured securities: CMO/MBS-agency (1) 126.5 5.0 0.5 131.0 CMO/MBS-non agency 11.0 0.6 0.1 11.5 CMBS (2) 182.2 0.5 1.5 181.2 ABS (3) 111.4 0.2 0.7 110.9 CLO (4) 137.1 0.2 1.7 135.6 Foreign denominated: Governments 170.0 0.8 19.6 151.2 Credit 129.1 1.2 20.2 110.1 ABS/CMBS 24.1 0.1 2.3 21.9 CLO 85.0 0.7 9.4 76.3 Total fixed maturities 2,971.0 43.1 86.8 2,927.3 Equity securities 349.7 131.5 17.3 463.9 Other investments 499.6 15.0 0.9 513.7 Short-term investments 211.2 — 0.4 210.8 Total investments $ 4,031.5 $ 189.6 $ 105.4 $ 4,115.7 (1) Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). (2) Commercial mortgage-backed securities (“CMBS”). (3) Asset-backed securities (“ABS”). (4) Included in “Total investments” in our Consolidated Balance Sheets at March 31, 2016 and December 31, 2015 is $119.5 million and $95.3 million, respectively, of assets managed on behalf of the trade capital providers, who are third-party participants that provide underwriting capital to the operations of our Syndicate 1200 segment. Contractual Maturity The amortized cost and fair values of fixed maturity investments as of March 31, 2016, by contractual maturity, were as follows: (in millions) Amortized Cost Fair Value Due in one year or less $ 241.9 $ 233.8 Due after one year through five years 1,343.9 1,341.1 Due after five years through ten years 430.5 434.7 Thereafter 157.7 164.6 Structured securities 737.8 733.4 Total $ 2,911.8 $ 2,907.6 The expected maturities may differ from the contractual maturities because debtors may have the right to call or prepay obligations. Other Invested Assets Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 (in millions) Carrying Value Unfunded Commitments Investment Type Hedge funds $ 152.0 $ — Private equity 146.8 88.6 Long only funds 221.8 — Other investments 2.4 — Total other invested assets $ 523.0 $ 88.6 December 31, 2015 (in millions) Carrying Value Unfunded Commitments Investment Type Hedge funds $ 146.9 $ — Private equity 144.1 90.2 Long only funds 200.0 — Other investments 22.7 — Total other invested assets $ 513.7 $ 90.2 The following describes each investment type: · Hedge funds: Hedge funds include funds that primarily buy and sell stocks, including the short sales of stocks, multi-strategy credit, relative value credit and distressed credit. · Private equity: Private equity includes buyout funds, real asset/infrastructure funds, credit special situations funds, mezzanine lending funds and direct investments and strategic non-controlling minority investments in private companies that are principally accounted for using the equity method of accounting. · Long only funds: These funds include a fund that primarily owns domestic and international stocks, a fund that owns high yield fixed income securities and a fund that primarily owns investment-grade corporate and sovereign fixed income securities. · Other investments: Other investments include our participation in pools, foreign exchange currency forward contracts to manage exposure on losses related to global catastrophic events, certain non-U.S. dollar denominated investments and to minimize negative impacts to our investment portfolio returns. 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: March 31, 2016 Less Than One Year One Year or Greater Total (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturities USD denominated: U.S. Governments (2) $ 35.9 $ 0.1 $ 0.2 $ — $ 36.1 $ 0.1 Non-U.S. Governments (2) 21.1 0.2 1.8 — 22.9 0.2 Obligations of states and political subdivisions (1) 1.4 — 9.6 0.3 11.0 0.3 Credit-Financial 150.0 1.7 32.5 0.5 182.5 2.2 Credit-Industrial 144.1 5.6 24.5 2.2 168.6 7.8 Credit-Utility 72.0 6.2 17.5 5.1 89.5 11.3 Structured securities: CMO/MBS-agency (1) 2.9 — 9.0 0.1 11.9 0.1 CMO/MBS-non agency (1) 0.1 — — — 0.1 — CMBS 102.4 0.7 6.7 0.2 109.1 0.9 ABS 38.7 0.1 7.0 0.2 45.7 0.3 CLO 109.8 2.2 18.2 0.7 128.0 2.9 Foreign denominated: Governments 102.0 10.5 0.3 0.1 102.3 10.6 Credit 89.6 14.9 0.8 0.1 90.4 15.0 ABS/CMBS 15.7 2.1 0.8 0.1 16.5 2.2 CLO 80.2 7.2 0.5 0.2 80.7 7.4 Total fixed maturities 965.9 51.5 129.4 9.8 1,095.3 61.3 Equity securities 100.4 15.2 — — 100.4 15.2 Other investments (16.3 ) 16.6 — — (16.3 ) 16.6 Short-term investments (1) 0.5 — — — 0.5 — Total $ 1,050.5 $ 83.3 $ 129.4 $ 9.8 $ 1,179.9 $ 93.1 (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. December 31, 2015 Less Than One Year One Year or Greater Total (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturities USD denominated: U.S. Governments (2) $ 138.3 $ 0.7 $ 0.4 $ — $ 138.7 $ 0.7 Non-U.S. Governments (2) 80.2 1.2 2.2 — 82.4 1.2 Obligations of states and political subdivisions (1) 9.3 — 8.8 0.3 18.1 0.3 Credit-Financial 308.7 3.0 32.2 0.5 340.9 3.5 Credit-Industrial 320.4 9.6 28.7 2.1 349.1 11.7 Credit-Utility 111.6 8.5 16.4 4.9 128.0 13.4 Structured securities: CMO/MBS-agency 26.9 0.2 8.4 0.3 35.3 0.5 CMO/MBS-non agency 7.0 0.1 — — 7.0 0.1 CMBS (2) 126.3 1.5 3.0 — 129.3 1.5 ABS 91.8 0.4 6.8 0.3 98.6 0.7 CLO 103.5 1.4 12.5 0.3 116.0 1.7 Foreign denominated: Governments 137.1 19.5 0.3 0.1 137.4 19.6 Credit 104.3 20.0 0.5 0.2 104.8 20.2 ABS/CMBS (2) 20.8 2.3 0.1 — 20.9 2.3 CLO 75.5 9.2 0.5 0.2 76.0 9.4 Total fixed maturities 1,661.7 77.6 120.8 9.2 1,782.5 86.8 Equity securities 112.4 17.3 — — 112.4 17.3 Other investments (0.5 ) 0.9 — — (0.5 ) 0.9 Short-term investments 5.8 0.4 — — 5.8 0.4 Total $ 1,779.4 $ 96.2 $ 120.8 $ 9.2 $ 1,900.2 $ 105.4 (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. 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 fixed maturity securities that we intend to sell. We hold a total of 6,922 securities, of which 2,240 were in an unrealized loss position for less than one year and 237 were in an unrealized loss position for a period one year or greater as of March 31, 2016. 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-temporarily 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 and 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 March 31, 2016. We recognized other-than-temporary losses on our fixed maturities portfolio of $1.1 million and $0.4 million for the three months ended March 31, 2016 and 2015, respectively. We recognized other-than-temporary losses on our equity portfolio of $0.6 million and $0.1 million for the three months ended March 31, 2016 and 2015, respectively. Realized Gains and Losses The following table presents our gross realized investment and other gains (losses): For the Three Months Ended March 31, (in millions) 2016 2015 Realized gains Fixed maturities $ 6.4 $ 4.1 Equity securities 19.3 3.8 Other investments 10.2 14.1 Short-term investments 0.2 — Gain on sale of real estate holdings — 0.3 Gross realized investment gains 36.1 22.3 Realized losses Fixed maturities (8.4 ) (3.7 ) Equity securities (6.1 ) (0.7 ) Other investments (22.6 ) (5.2 ) Short-term investments (0.1 ) (1.1 ) Other-than-temporary impairment losses on fixed maturities (0.6 ) (0.4 ) Other-than-temporary impairment losses on equity securities (1.1 ) (0.1 ) Gross realized investment and other losses (38.9 ) (11.2 ) Net realized investment and other (losses) gains $ (2.8 ) $ 11.1 The cost of securities sold is based on the specific identification method. Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows: (in millions) Fixed Maturities Equity Maturities Other Investments Other Real Estate Holdings and Other Tax Effects Total Three Months Ended March 31, 2016 Realized before impairments $ (2.0 ) $ 13.2 $ (12.4 ) $ 0.1 $ — $ (1.8 ) $ (2.9 ) Realized - impairments (0.6 ) (1.1 ) — — — 0.6 (1.1 ) Change in unrealized 38.9 (9.0 ) 0.6 0.5 — (3.7 ) 27.3 Three Months Ended March 31, 2015 Realized before impairments $ 0.4 $ 3.1 $ 8.9 $ (1.1 ) $ 0.3 $ (4.2 ) $ 7.4 Realized - impairments (0.4 ) (0.1 ) — — — 0.2 (0.3 ) Change in unrealized (12.3 ) (10.8 ) 1.6 (0.3 ) — 2.9 (18.9 ) Foreign Currency Exchange Forward Contracts We entered into foreign currency exchange forward contracts to manage currency exposure on losses related to certain global catastrophe events, manage currency exposure on our Canadian dollar (“CAD”) investment portfolio, minimize negative impacts to our investment portfolio returns, manage currency exposure on certain Euro (“EUR”) denominated investments and gain exposure to a total return strategy which invests in multiple currencies. The fair value of our foreign currency exchange forward contracts as of March 31, 2016 and December 31, 2015 was as follows: March 31, December 31, (in millions) 2016 2015 Canadian dollar (CAD) currency exposure $ (12.3 ) $ 5.2 Euro (EUR) investment exposure (4.2 ) 2.9 Total return strategy (1) (0.1 ) (0.8 ) $ (16.6 ) $ 7.3 (1 ) Program incepted in 2015 The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended March 31, (in millions) 2016 2015 Realized gains Global catastrophe $ — $ 0.3 Canadian dollar (CAD) currency exposure 2.8 7.5 Euro (EUR) investment exposure — 6.3 Investment portfolio return strategy 0.3 — Total return strategy 6.4 — Gross realized investment gains 9.5 14.1 Realized losses Global catastrophe — (1.2 ) Canadian dollar (CAD) currency exposure (8.5 ) (2.0 ) Euro (EUR) investment exposure (3.6 ) — Investment portfolio return strategy (0.2 ) — Total return strategy (9.0 ) — Gross realized investment losses (21.3 ) (3.2 ) Net realized investment gains (losses) on foreign currency exchange forward contracts $ (11.8 ) $ 10.9 Regulatory Deposits, Pledged Securities and Letters of Credit At March 31, 2016, the amortized cost and fair value of investments on deposit with U.S., Canadian and various other agencies for regulatory purposes were $168.5 million and $175.3 million, respectively. At December 31, 2015, the amortized cost and fair value of investments on deposit with U.S., Canadian and various other agencies for regulatory purposes were $187.1 million and $192.8 million, respectively. At March 31, 2016, investments with an amortized cost of $32.8 million and fair value of $32.9 million were pledged as collateral in support of irrevocable letters of credit (“LOCs”) in the amount of $26.4 million issued under the terms of certain reinsurance agreements in respect of reported loss and loss expense reserves. At December 31, 2015, investments with an amortized cost of $34.9 million and fair value of $35.0 million were pledged as collateral in support of irrevocable LOCs in the amount of $29.3 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 $207.3 million and $202.5 million at March 31, 2016 and December 31, 2015, 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. 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 March 31, 2016. 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: 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 interest in a mutual fund that is reported at fair value using Level 2 inputs. The valuation is based on the fund’s net asset value per share, at the end of each month. The underlying assets in the fund 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. Transfers Between Level 1 and Level 2 Securities: There were no transfers between Level 1 and Level 2 securities during the three months ended March 31, 2016. Based on an analysis of the inputs, our financial assets measured at fair value on a recurring basis have been categorized as follows: Fair (in millions) March 31, 2016 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities USD denominated: U.S. Governments $ 199.4 $ 139.8 $ 59.6 $ — Non-U.S. Governments 82.5 — 82.5 — Obligations of states and political subdivisions 429.1 — 429.1 — Credit-Financial 509.8 — 509.8 — Credit-Industrial 535.2 — 535.2 — Credit-Utility 153.2 — 153.2 — Structured securities: CMO/MBS-agency 151.4 — 151.4 — CMO/MBS-non agency 6.9 — 6.9 — CMBS 217.4 — 217.4 — ABS 116.5 — 116.5 — CLO 142.6 — 142.6 — Foreign denominated: Governments 158.7 — 158.7 — Credit 106.3 — 106.3 — ABS/CMBS 16.6 — 16.6 — CLO 82.0 — 82.0 — Total fixed maturities 2,907.6 139.8 2,767.8 — Equity securities 430.3 427.6 2.1 0.6 Other investments 74.2 — 74.2 — Short-term investments 266.2 257.4 8.8 — $ 3,678.3 $ 824.8 $ 2,852.9 $ 0.6 (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, 2015 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities USD denominated: U.S. Governments $ 207.9 $ 150.4 $ 57.5 $ — Non-U.S. Governments 91.7 — 91.7 — Obligations of states and political subdivisions 488.0 — 488.0 — Credit-Financial 535.9 — 535.9 — Credit-Industrial 517.9 — 517.9 — Credit-Utility 156.2 — 156.2 — Structured securities: CMO/MBS-agency 131.0 — 131.0 — CMO/MBS-non agency 11.5 — 11.5 — CMBS 181.2 — 181.2 — ABS 110.9 — 110.9 — CLO 135.6 — 135.6 — Foreign denominated: Governments 151.2 — 151.2 — Credit 110.1 — 110.1 — ABS/CMBS 21.9 — 21.9 — CLO 76.3 — 76.3 — Total fixed maturities 2,927.3 150.4 2,776.9 — Equity securities 463.9 457.6 5.6 0.7 Other investments 97.2 — 97.2 — Short-term investments 210.8 203.6 7.2 — $ 3,699.2 $ 811.6 $ 2,886.9 $ 0.7 (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. 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 Securities Total Beginning balance, January 1, 2016 $ 0.7 $ 0.7 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses (realized/unrealized): Included in net income (loss) — — Included in other comprehensive income (loss) — — Purchases, issuances, sales, and settlements Purchases — — Issuances — — Sales (0.1 ) (0.1 ) Settlements — — Ending balance, March 31, 2016 $ 0.6 $ 0.6 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 March 31, 2016 $ — $ — (in millions) Equity Securities Total Beginning balance, January 1, 2015 $ 0.9 $ 0.9 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses (realized/unrealized): Included in net income (loss) — — Included in other comprehensive income (loss) — — Purchases, issuances, sales, and settlements Purchases — — Issuances — — Sales (0.2 ) (0.2 ) Settlements — — Ending balance, December 31, 2015 $ 0.7 $ 0.7 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, 2015 $ — $ — At March 31, 2016 and December 31, 2015, 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. |
Reserves for Losses and Loss Ad
Reserves for Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Reserves for Losses and Loss Adjustment Expenses | 4 . Reserves for Losses and Loss Adjustment Expenses The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): For the Three Months Ended March 31, (in millions) 2016 2015 Net reserves beginning of the year $ 2,133.3 $ 2,137.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 194.8 187.4 Prior accident years (3.2 ) (3.7 ) Losses and LAE incurred during calendar year, net of reinsurance 191.6 183.7 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 24.8 19.8 Prior accident years 144.7 141.0 Losses and LAE payments made during current calendar year, net of reinsurance: 169.5 160.8 Change in participation interest (1) (42.3 ) (1.2 ) Foreign exchange adjustments (3.6 ) (6.0 ) Net reserves - end of period 2,109.5 2,152.8 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 1,032.0 882.3 Gross reserves - end of period $ 3,141.5 $ 3,035.1 (1) Amount represents decreases in reserves due to change in syndicate participation Reserves for losses and LAE 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 three months ended March 31, 2016 was $ million in favorable prior years’ loss reserve development comprised of the following: $ million of net favorable development in the Excess and Surplus Lines segment primarily the result of favorable development in the property lines and commercial automobile, partially offset by unfavorable development in the general and products liability lines; negligible development in the Commercial Specialty segment; $ ; $ million of net favorable development in the Syndicate 1200 segment primarily driven by favorable development in property lines, partially offset by unfavorable development in specialty lines; and $ million of unfavorable development in the Run-off Lines segment primarily caused by unfavorable , offset in part by favorable development in run-off reinsurance claims. Impacting losses and LAE for the three months ended March 31, 2015 was $3.7 million in favorable prior years’ loss reserve development comprised of the following: $ million of net favorable development in the Excess and Surplus Lines segment primarily caused by favorable development in the general and products liability lines and commercial automobile, partially offset by unfavorable development in property lines; $ million of net unfavorable development in the Commercial Specialty segment, primarily driven by unfavorable development in general liability due to increases in claim severity, as well as unfavorable development in short tail lines and workers compensation, partially offset by favorable development in auto liability; $ million of net favorable development in the International Specialty segment primarily driven by favorable development in Argo Re and long-tail lines, partially offset by unfavorable development in the Brazil unit; $0.3 million of net favorable development in the Syndicate 1200 segment primarily driven by favorable development in various property classes, partially offset by unfavorable development in general liability; and $0.1 million of unfavorable development in the Run-off Lines segment primarily caused by unfavorable development in workers compensation lines and assumed asbestos and environmental liability, offset in part by favorable development in run-off reinsurance claims. 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. |
Disclosures about Fair Value of
Disclosures about Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Disclosures about Fair Value of Financial Instruments | 5 . 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 March 31, 2016 and December 31, 2015, the carrying values of premiums receivable over 90 days were $13.6 million and $10.0 million, respectively. Included in “Reinsurance recoverables” in our Consolidated Balance Sheets at March 31, 2016 and December 31, 2015, are amounts that are due from trade capital providers associated with the operations of Syndicate 1200. Upon settlement, the receivable is offset against the liability also reflected in our accompanying Consolidated Balance Sheets. At March 31, 2016 and December 31, 2015, the payable was in excess of the receivable. Of our reinsurance recoverables on paid losses, excluding amounts attributable to Syndicate 1200’s trade capital providers, at March 31, 2016 and December 31, 2015, the carrying values over 90 days were $11.4 million and $7.1 million, respectively. Our methodology for establishing our allowances for doubtful accounts includes specifically identifying all potential uncollectible balances regardless of aging. At March 31, 2016 and December 31, 2015, the allowance for doubtful accounts for premiums receivable was $2.4 million and $3.5 million, respectively, and the allowance for doubtful accounts for reinsurance recoverables on paid losses was $2.0 million and $2.2 million, respectively. Premiums receivable over 90 days were secured by collateral in the amount of $0.2 million at both March 31, 2016 and December 31, 2015. Reinsurance recoverables on paid losses over 90 days were secured by collateral in the amount of $0.6 million and $0.7 at March 31, 2016 and December 31, 2015, respectively. Debt . At March 31, 2016 and December 31, 2015, 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: March 31, 2016 December 31, 2015 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Junior subordinated debentures $ 172.7 $ 158.4 $ 172.7 $ 166.5 Senior unsecured fixed rate notes 139.4 141.8 139.3 141.8 Other indebtedness: Floating rate loan stock 55.8 51.2 54.6 52.7 Note payable 0.6 0.6 0.6 0.6 $ 368.5 $ 352.0 $ 367.2 $ 361.6 |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | 6. Shareholders’ Equity On May 3, 2016, our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. The dividend will be paid on June 17, 2016 to shareholders of record at the close of business on June 1, 2016. On February 16, 2016, our Board of Directors declared a quarterly cash dividend in the amount of $0.22 on each share of common stock outstanding. On March 15, 2016, we paid $6.2 million to our shareholders of record on March 1, 2016. On February 17, 2015, our Board of Directors declared a 10% stock dividend, payable on March 16, 2015, to shareholders of record at the close of business on March 2, 2015. As a result of the stock dividend, 2,554,506 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. In addition, on February 17, 2015, our Board of Directors declared a quarterly cash dividend in the amount of $0.20 on each share of common stock outstanding, on a post-stock dividend basis. On March 19, 2015, we paid $5.7 million to our shareholders of record on March 2, 2015. 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 supersedes all the previous Repurchase Authorizations. As of March 31, 2016, availability under the 2013 Repurchase Authorization for future repurchases of our common shares was $44.1 million. For the three months ended March 31, 2016, we repurchased a total of 343,652 common shares for $19.0 million. A summary of activity from January 1, 2016 through March 31, 2016 follows. A summary of common shares repurchased for the three months ended March 31, 2016 is shown below: Repurchase Type Date Trading Plan Initiated 2016 Purchase Period Number of Shares Repurchased Average Price of Shares Repurchased Total Cost (in millions) Repurchase Authorization Year 10b5-1 Trading Plan 12/16/2015 01/04/2016-02/11/2016 266,538 $ 55.59 $ 14.8 2013 10b5-1 Trading Plan 03/16/2016 03/16/2016-03/28/2016 12,650 $ 55.76 0.7 2013 Open Market N/A 01/01/2016-03/31/2016 64,464 $ 54.14 3.5 2013 Total 343,652 $ 55.32 $ 19.0 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 7 . Accumulated Other Comprehensive Income (Loss) A summary of changes in accumulated other comprehensive income (loss), net of taxes (where applicable) by component for the three months ended March 31, 2016 and 2015 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Holding Gains on Securities Defined Benefit Pension Plans Total Balance, January 1, 2016 $ (21.6 ) $ 40.0 $ (6.9 ) $ 11.5 Other comprehensive (loss) income before reclassifications 1.5 31.0 — 32.5 Amounts reclassified from accumulated other comprehensive (loss) income — (3.7 ) — (3.7 ) Net current-period other comprehensive (loss) income 1.5 27.3 — 28.8 Balance at March 31, 2016 $ (20.1 ) $ 67.3 $ (6.9 ) $ 40.3 (in millions) Foreign Currency Translation Adjustments Unrealized Holding Gains on Securities Defined Benefit Pension Plans Total Balance, January 1, 2015 $ (15.6 ) $ 130.7 $ (7.0 ) $ 108.1 Other comprehensive (loss) income before reclassifications (3.1 ) (21.5 ) — (24.6 ) Amounts reclassified from accumulated other comprehensive (loss) income — 2.6 — 2.6 Net current-period other comprehensive (loss) income (3.1 ) (18.9 ) — (22.0 ) Balance at March 31, 2015 $ (18.7 ) $ 111.8 $ (7.0 ) $ 86.1 The following table illustrates the amounts reclassified from accumulated other comprehensive income (loss) shown in the above tables that have been included in our Consolidated Statements of Income: For the Three Months Ended March 31, (in millions) 2016 2015 Unrealized gains and losses on securities: Net realized investment (gain) loss $ (7.8 ) $ 2.5 Provision for income taxes 4.1 0.1 Net of taxes $ (3.7 ) $ 2.6 |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | 8. 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 Ended March 31, (in millions, except number of shares and per share amounts) 2016 2015 Net income $ 27.7 $ 58.8 Weighted average common shares outstanding - basic 27,710,955 28,129,692 Effect of dilutive securities: Equity compensation awards 593,616 547,687 Weighted average common shares outstanding - diluted 28,304,571 28,677,379 Net income per common share: Basic $ 1.00 $ 2.09 Diluted $ 0.98 $ 2.05 Excluded from the weighted average common shares outstanding calculation at March 31, 2016, and 2015 are 9,525,296 shares and 8,959,543 shares, respectively, which are held as treasury shares. The shares are excluded as of their repurchase date. For the three months ended March 31, 2016, there were no equity compensation awards with an anti-dilutive effect. For the three months ended March 31, 2015, equity compensation awards to purchase 1,760 shares of common stock were excluded from the computation of diluted net income per common share as these instruments were anti-dilutive. These instruments expired during the second quarter 2015. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | 9 . Supplemental Cash Flow Information Income taxes paid. We paid income taxes of $0.3 million and $0.5 million during the three months ended March 31, 2016 and 2015, respectively. Income taxes recovered . We recovered income taxes of $0.3 million and $11.6 million during the three months ended March 31, 2016 and 2015, respectively. Interest paid was as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Senior unsecured fixed rate notes $ 2.3 $ 2.3 Junior subordinated debentures 1.8 1.7 Other indebtedness 0.8 0.8 Total interest paid $ 4.9 $ 4.8 |
Share-based Compensation
Share-based Compensation | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | 10 . 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 our 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 three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Risk-free rate of return 1.37% 1.47% Expected dividend yields 1.62% 1.63% Expected award life (years) 4.61 4.71 Expected volatility 19.64% 22.09% Argo Group’s Long-Term Incentive Plans In November 2007, our shareholders approved the 2007 Long-Term Incentive Plan (the “2007 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, 1.46 million shares remained available for grant under the 2007 Plan. In May 2014, our shareholders 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 unit 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 incentive plans; 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, non-qualified share options and restorative 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 March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2016 475,307 $ 40.46 Granted 210,463 $ 55.10 Vested and issued (63,773 ) $ 35.35 Expired or forfeited (5,542 ) $ 46.90 Outstanding at March 31, 2016 616,455 $ 45.93 The restricted shares vest over two to four years. Expense recognized under this plan for the restricted shares was $1.7 million and $1.5 million for the three months ended March 31, 2016 and 2015, respectively. Compensation expense for all share-based compensation awards is included in “Underwriting, acquisition and insurance expense” in the accompanying Consolidated Statements of Income. As of March 31, 2016, there was $22.9 million of total unrecognized compensation cost related to restricted share compensation arrangements granted by Argo Group. In January 2016, we modified certain unvested cash-settled SARs, converting the awards into stock-settled SARs. We evaluated this modification under the terms of ASU 718 “Share Based Payments”, and determined that no additional expense resulted from the conversion. The expense for the stock-settled SARs will be amortized over the remaining vesting period. A summary of stock-settled SARs activity as of March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Exercise Price Outstanding at January 1, 2016 1,318,101 $ 32.50 Granted 542 $ 40.38 Converted from cash-settled SARs 864,035 $ 45.33 Exercised (26,398 ) $ 26.10 Expired or forfeited (72,349 ) $ 47.88 Outstanding at March 31, 2016 2,083,931 $ 37.37 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 $1.4 million and $0.6 for the three months ended March 31, 2016 and 2015, respectively. As of March 31, 2016, there was $12.5 million of total unrecognized compensation cost related to stock-settled SARs outstanding. A summary of cash-settled SARs activity as of March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Exercise Price Outstanding at January 1, 2016 2,134,121 $ 39.22 Granted 540 $ 40.38 Converted to stock-settled SARs (864,035 ) $ 45.33 Exercised (113,663 ) $ 30.15 Expired or forfeited (58,092 ) $ 44.23 Outstanding at March 31, 2016 1,098,871 $ 35.10 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. For the three months ended March 31, 2016, we recouped $0.3 million of expense, primarily related to the conversion of certain cash-settled SARs. Expense recognized for the cash-settled SARs was $2.7 million for the three months ended March 31, 2015. As of March 31, 2016, there was $1.1 million of total unrecognized compensation cost related to cash-settled SARs outstanding. |
Underwriting, Acquisition and I
Underwriting, Acquisition and Insurance Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | 11. Underwriting, Acquisition and Insurance Expenses Underwriting, acquisition and insurance expenses were as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Commissions $ 57.1 $ 58.7 General expenses 70.6 72.9 Premium taxes, boards and bureaus 6.6 0.6 134.3 132.2 Net deferral of policy acquisition costs (1.7 ) (2.6 ) Total underwriting, acquisition and insurance expenses $ 132.6 $ 129.6 Included in general expenses for the three months ended March 31, 2016 and 2015 was $3.0 million and $5.2 million, respectively, of expense for our total equity-related compensation. The increase in premium taxes, boards and bureaus for the three months ended March 31, 2016 as compared to the three months ended March 31, 2015 was primarily due to a decline in the accrual for premium taxes and other assessments due to a change in accounting estimate in the first quarter of 2015. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 1 2 . 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. Eight 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. 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 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 Ended March 31, (in millions) 2016 2015 Current tax provision (benefit) $ 1.5 $ (0.2 ) Deferred tax provision related to: Future tax deductions 2.9 5.5 Valuation allowance change 1.0 (1.7 ) Income tax provision $ 5.4 $ 3.6 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 months ended March 31, 2016 and 2015, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Pre-Tax Income (Loss) Effective Tax Rate Pre-Tax Income (Loss) Effective Tax Rate Bermuda $ 22.0 0.0 % $ 25.7 0.0 % United States 23.3 23.7 % 28.5 20.2 % United Kingdom (12.3 ) 1.5 % 10.1 -21.9 % Belgium — (1) 0.0 % (0.2 ) -4.8 % Brazil (0.1 ) 0.0 % (1.9 ) 0.0 % United Arab Emirates — (1) 0.0 % 0.1 0.0 % Ireland — (1) 0.0 % (0.2 ) 0.0 % Malta 0.2 0.0 % 0.3 0.0 % Switzerland — (1) 19.8 % — (1) 21.0 % Pre-tax income $ 33.1 $ 62.4 (1) Pre-tax income for the respective year 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 Ended March 31, (in millions) 2016 2015 Income tax provision at expected rate $ 5.8 $ 11.2 Tax effect of: Tax-exempt interest (0.9 ) (0.9 ) Dividends received deduction (0.5 ) (0.6 ) Valuation allowance change 1.0 (1.7 ) Other permanent adjustments, net 0.2 0.2 Adjustment for annualized rate (1.5 ) (0.5 ) United States state tax benefit — (2.5 ) Other foreign adjustments — (0.3 ) Prior period adjustments to deferred — 2.2 Prior year foreign taxes recovered — (1.2 ) Deferred tax rate reduction (0.3 ) — Foreign exchange adjustments 1.5 (2.4 ) Foreign withholding taxes 0.1 0.1 Income tax provision $ 5.4 $ 3.6 Income tax benefit - Foreign $ (0.2 ) $ (2.2 ) Income tax provision - United States, Federal 5.5 9.5 Income tax benefit - United States, State — (3.8 ) Foreign withholding tax - United States 0.1 0.1 Income tax provision $ 5.4 $ 3.6 Our net deferred tax assets (liabilities) are supported by taxes paid in previous periods, reversal of 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, generally two years for net operating losses and three years for capital losses for our United States operations. At March 31, 2016, we had a total net deferred tax liability of $7.7 million prior to any valuation allowance. Management has determined that a valuation allowance is required for a portion of the tax-effected net operating loss carryforward included as part of the United States consolidated group of $16.8 million generated from PXRE Corporation and for the tax-effected net operating loss carryforward of $1.0 million from ARIS. 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. Furthermore, 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 $23.8 million is required as of March 31, 2016 of which $14.9 million relates to the PXRE Corporation and ARIS loss carryforwards, $7.0 million relates to Brazil operations, and $1.9 million relates to Malta operations. For the three months ended March 31, 2016, the valuation allowance increased by $0.9 million pertaining to our Brazil operations and increased by $0.1 million pertaining to our Malta operations. Of the PXRE Corporation net operating loss carryforwards, $15.3 For any uncertain tax positions not meeting the “more-likely-than-not” recognition threshold, accounting standards require recognition, measurement and disclosure in a company’s financial statements. We had no material unrecognized tax benefits as of March 31, 2016 and 2015. Our United States subsidiaries are no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2012. Our United Kingdom subsidiaries are no longer subject to United Kingdom income tax examinations by Her Majesty’s Revenue and Customs for years before 2012. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 13. 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 $88.6 million related to our limited partnership investments at March 31, 2016. These commitments will be funded as required by the partnership agreements which can be called to be fulfilled at any time, not to exceed thirteen years. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | 14. 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. Based on management’s evaluation of the Argo Pro platform’s shift in primary distribution channels and mix of admitted versus non-admitted business, we have reclassified Argo Pro’s results of operations and identifiable assets from Excess and Surplus Lines to the Commercial Specialty segment effective January 1, 2016, as the current makeup of the platform more closely aligns with our Commercial Specialty segment. The results of operations and identifiable assets for prior periods have been reclassified to conform to the current presentation. 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 Ended March 31, (in millions) 2016 2015 Revenue: Earned premiums Excess and Surplus Lines $ 119.8 $ 111.9 Commercial Specialty 86.8 83.8 International Specialty 37.8 36.2 Syndicate 1200 100.5 103.0 Run-off Lines — (0.3 ) Total earned premiums 344.9 334.6 Net investment income (loss) Excess and Surplus Lines 8.7 8.0 Commercial Specialty 5.1 5.0 International Specialty 3.3 2.9 Syndicate 1200 2.8 2.2 Run-off Lines 2.2 2.0 Corporate and Other (0.9 ) 5.6 Total net investment income 21.2 25.7 Fee and other income 6.8 4.6 Net realized investment and other (losses) gains (2.8 ) 11.1 Total revenue $ 370.1 $ 376.0 For the Three Months Ended March 31, (in millions) 2016 2015 Income (loss) before income taxes Excess and Surplus Lines $ 21.2 $ 21.4 Commercial Specialty 13.7 7.1 International Specialty 10.3 8.9 Syndicate 1200 7.4 11.2 Run-off Lines (1.4 ) 1.2 Total segment income before taxes 51.2 49.8 Corporate and Other (15.3 ) 1.5 Net realized investment and other (losses) gains (2.8 ) 11.1 Total income before income taxes $ 33.1 $ 62.4 The table below presents earned premiums by geographic location for the three months ended March 31, 2016 and 2015. 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 Ended March 31, (in millions) 2016 2015 Bermuda $ 28.1 $ 23.9 Brazil 9.2 12.5 Malta 0.5 0.5 United Kingdom 100.6 101.9 United States 206.5 195.8 Total earned premiums $ 344.9 $ 334.6 The following table represents identifiable assets: March 31, December 31, (in millions) 2016 2015 Excess and Surplus Lines $ 2,258.5 $ 2,219.0 Commercial Specialty 1,575.9 1,589.7 International Specialty 832.5 761.7 Syndicate 1200 1,489.4 1,398.0 Run-off Lines 516.3 524.2 Corporate and Other 147.1 133.0 Total $ 6,819.7 $ 6,625.6 Included in total assets at March 31, 2016 and December 31, 2015 are $478.1 million and $377.1 million, respectively, in assets associated with trade capital providers. |
Senior Unsecured Fixed Rate Not
Senior Unsecured Fixed Rate Notes | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Senior Unsecured Fixed Rate Notes | 15. Senior Unsecured Fixed Rate Notes In September 2012, Argo Group (the “Parent Guarantor”), through its subsidiary Argo Group US (the “Subsidiary Issuer”), issued $143,750,000 aggregate principal amount of the Subsidiary Issuer’s 6.5% Senior Note due September 15, 2042 (the “Notes”). The Notes are unsecured and unsubordinated obligations of the Subsidiary Issuer and rank equally in right of payment with all of the Subsidiary Issuer’s other unsecured and unsubordinated debt. The Notes are guaranteed on a full and unconditional senior unsecured basis by the Parent Guarantor. The Notes may be redeemed, for cash, in whole or in part, on or after September 15, 2017, at the Subsidiary Issuer’s option, at any time and from time to time, prior to maturity at a redemption price equal to 100% of the principal amount of the Notes to be redeemed, plus accrued but unpaid interest on the principal amount being redeemed to, but not including, the redemption date. In accordance with ASU 2015-03, “Simplifying the Presentation of Debt Issuance Costs” (Topic 835), we present the unamortized debt issuance costs in the balance sheet as a direct deduction from the carrying value of the debt liability. At March 31, 2016 and December 31, 2015, the Notes consisted of the following: (in millions) March 31, 2016 December 31, 2015 Senior unsecured fixed rate notes Principal $ 143.8 $ 143.8 Less: unamortized debt issuance costs (4.4 ) (4.5 ) Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.4 $ 139.3 In accordance with Article 10 of SEC Regulation S-X, we have elected to present condensed consolidating financial information in lieu of separate financial statements for the Subsidiary Issuer. The following tables present condensed consolidating financial information at March 31, 2016 and December 31, 2015 and for the three months ended March 31, 2016 and 2015, the Parent Guarantor and the Subsidiary Issuer. The Subsidiary Issuer is an indirect wholly-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 MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Assets Investments $ (11.5 ) $ 2,782.9 $ 1,355.7 $ — $ 4,127.1 Cash — 74.3 48.6 — 122.9 Accrued investment income — 15.8 5.5 — 21.3 Premiums receivable — 178.3 270.1 — 448.4 Reinsurance recoverables — 1,226.3 (75.2 ) — 1,151.1 Goodwill and other intangible assets, net — 129.1 95.0 — 224.1 Current income taxes receivable, net — 6.2 3.1 — 9.3 Deferred acquisition costs, net — 56.3 80.1 — 136.4 Ceded unearned premiums — 146.4 161.6 — 308.0 Other assets 12.0 161.4 97.7 — 271.1 Intercompany note receivable — 50.3 (50.3 ) — — Investments in subsidiaries 1,762.2 — — (1,762.2 ) — Total assets $ 1,762.7 4,827.3 1,991.9 $ (1,762.2 ) $ 6,819.7 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — 2,199.9 941.6 $ — $ 3,141.5 Unearned premiums — 504.9 402.9 — 907.8 Funds held and ceded reinsurance payable, net — 755.0 (257.2 ) — 497.8 Long-term debt 28.3 284.3 55.9 — 368.5 Deferred tax liabilities, net — 22.5 9.0 — 31.5 Accrued underwriting expenses and other liabilities 15.0 81.5 70.7 — 167.2 Due to (from) affiliates 14.0 (1.4 ) 1.4 (14.0 ) — Total liabilities 57.3 3,846.7 1,224.3 (14.0 ) 5,114.3 Total shareholders' equity 1,705.4 980.6 767.6 (1,748.2 ) 1,705.4 Total liabilities and shareholders' equity $ 1,762.7 $ 4,827.3 $ 1,991.9 $ (1,762.2 ) $ 6,819.7 (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 BALANCE SHEET DECEMBER 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Assets Investments $ 6.2 $ 2,761.0 $ 1,348.5 $ — $ 4,115.7 Cash — 88.8 32.9 — 121.7 Accrued investment income — 16.4 5.2 — 21.6 Premiums receivable — 166.4 238.1 — 404.5 Reinsurance recoverables — 1,212.2 (91.1 ) — 1,121.1 Goodwill and other intangible assets, net — 129.8 95.7 — 225.5 Current income taxes receivable, net — 4.7 6.9 — 11.6 Deferred acquisition costs, net — 58.2 74.2 — 132.4 Ceded unearned premiums — 125.8 125.0 — 250.8 Other assets 8.2 151.7 60.8 — 220.7 Intercompany note receivable — 49.8 (49.8 ) — — Investments in subsidiaries 1,715.9 — — (1,715.9 ) — Total assets $ 1,730.3 $ 4,764.8 $ 1,846.4 $ (1,715.9 ) $ 6,625.6 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,194.1 $ 929.5 $ — $ 3,123.6 Unearned premiums — 501.5 385.2 — 886.7 Funds held and ceded reinsurance payable, net — 702.6 (312.6 ) — 390.0 Long-term debt 28.4 284.2 54.6 — 367.2 Deferred tax liabilities, net — 11.9 11.7 — 23.6 Accrued underwriting expenses and other liabilities 16.3 95.4 54.7 — 166.4 Due to (from) affiliates 17.5 2.3 (2.3 ) (17.5 ) — Total liabilities 62.2 3,792.0 1,120.8 (17.5 ) 4,957.5 Total shareholders' equity 1,668.1 972.8 725.6 (1,698.4 ) 1,668.1 Total liabilities and shareholders' equity $ 1,730.3 $ 4,764.8 $ 1,846.4 $ (1,715.9 ) $ 6,625.6 (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 MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Premiums and other revenue: Earned premiums $ — $ 119.9 $ 225.0 $ — $ 344.9 Net investment income (expense) (0.6 ) 12.6 9.2 — 21.2 Fee and other income — 5.2 1.6 — 6.8 Net realized investment and other (losses) gains — 11.2 (14.0 ) — (2.8 ) Total revenue (0.6 ) 148.9 221.8 — 370.1 Expenses: Losses and loss adjustment expenses — 68.3 123.3 — 191.6 Underwriting, acquisition and insurance expenses 5.2 47.6 79.8 — 132.6 Interest expense 0.3 3.9 0.6 — 4.8 Fee and other expense — 6.2 0.3 — 6.5 Foreign currency exchange loss — — 1.5 — 1.5 Total expenses 5.5 126.0 205.5 — 337.0 Income before income taxes (6.1 ) 22.9 16.3 — 33.1 Provision for income taxes — 5.4 — — 5.4 Net income before equity in earnings of subsidiaries (6.1 ) 17.5 16.3 — 27.7 Equity in undistributed earnings of subsidiaries 33.8 — — (33.8 ) — Net income $ 27.7 $ 17.5 $ 16.3 $ (33.8 ) $ 27.7 (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 MARCH 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Premiums and other revenue: Earned premiums $ — $ 135.1 $ 199.5 $ — $ 334.6 Net investment income (expense) (0.2 ) 19.4 6.5 — 25.7 Fee and other income — 3.6 1.0 — 4.6 Net realized investment and other (losses) gains — 11.0 0.1 — 11.1 Total revenue (0.2 ) 169.1 207.1 — 376.0 Expenses: Losses and loss adjustment expenses — 80.2 103.5 — 183.7 Underwriting, acquisition and insurance expenses 4.7 51.9 73.0 — 129.6 Interest expense 0.5 3.8 0.6 — 4.9 Fee and other expense — 4.4 0.6 — 5.0 Foreign currency exchange loss (gains) — 0.8 (10.4 ) — (9.6 ) Total expenses 5.2 141.1 167.3 — 313.6 Income before income taxes (5.4 ) 28.0 39.8 — 62.4 Provision for income taxes — 5.8 (2.2 ) — 3.6 Net income before equity in earnings of subsidiaries (5.4 ) 22.2 42.0 — 58.8 Equity in undistributed earnings of subsidiaries 64.2 — — (64.2 ) — Net income $ 58.8 $ 22.2 $ 42.0 $ (64.2 ) $ 58.8 (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 THREE MONTHS ENDED MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Net cash flows from operating activities $ 5.6 $ 23.1 $ 22.5 $ — $ 51.2 Cash flows from investing activities: Proceeds from sales of investments — 306.0 74.7 — 380.7 Maturities and mandatory calls of fixed maturity investments — 84.8 48.4 — 133.2 Purchases of investments — (364.1 ) (94.5 ) — (458.6 ) Change in short-term investments and foreign regulatory deposits 0.3 (34.6 ) (21.6 ) — (55.9 ) Settlements of foreign currency exchange forward contracts — — (3.9 ) — (3.9 ) Purchases of fixed assets and other, net — (10.9 ) (10.1 ) — (21.0 ) Cash provided (used by) investing activities 0.3 (18.8 ) (7.0 ) — (25.5 ) Cash flows from financing activities: Amortization of debt issuance costs — 0.1 — 0.1 Activity under stock incentive plans 0.3 — — — 0.3 Repurchase of Company's common shares — (19.0 ) — — (19.0 ) Excess tax expense from share-based payment arrangements — 0.1 — — 0.1 Payment of cash dividend to common shareholders (6.2 ) — — — (6.2 ) Cash used by financing activities (5.9 ) (18.8 ) — — (24.7 ) Effect of exchange rate changes on cash — — 0.2 — 0.2 Change in cash — (14.5 ) 15.7 — 1.2 Cash, beginning of the period — 88.8 32.9 — 121.7 Cash, end of period $ — $ 74.3 $ 48.6 $ — $ 122.9 (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 THREE MONTHS ENDED MARCH 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Net cash flows (used by) from operating activities $ 2.9 $ 43.5 $ (18.9 ) $ — $ 27.5 Cash flows from investing activities: Proceeds from sales of investments — 340.1 82.9 — 423.0 Maturities and mandatory calls of fixed maturity investments — 114.5 27.5 — 142.0 Purchases of investments — (471.4 ) (85.8 ) — (557.2 ) Change in short-term investments and foreign regulatory deposits 1.1 7.0 (3.3 ) — 4.8 Settlements of foreign currency exchange forward contracts 0.7 — (2.9 ) — (2.2 ) Purchases of fixed assets and other, net 0.1 (11.3 ) 2.9 — (8.3 ) Cash provided (used by) investing activities 1.9 (21.1 ) 21.3 — 2.1 Cash flows from financing activities: Amortization of debt issuance costs — 0.1 — — 0.1 Activity under stock incentive plans 0.9 — — — 0.9 Repurchase of Company's common shares — (17.0 ) — — (17.0 ) Payment of cash dividend to common shareholders (5.7 ) — — — (5.7 ) Cash used by financing activities (4.8 ) (16.9 ) — — (21.7 ) Effect of exchange rate changes on cash — — 0.2 — 0.2 Change in cash — 5.5 2.6 — 8.1 Cash, beginning of period — 49.3 31.7 — 81.0 Cash, end of period $ — $ 54.8 $ 34.3 $ — $ 89.1 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Event | 16. Subsequent Event On May 3, 2016, our Board of Directors declared a 10% stock dividend payable on June 15, 2016, to shareholders of record at the close of business on June 1, 2016. Based upon information available to us as of the dividend declaration date, we estimate approximately 2.7 million shares will be issued upon payment of the stock dividend. The share numbers and per share amounts disclosed in the Consolidated Financial Statements and Notes to the Consolidated Financial Statements have not been retroactively adjusted to give effect to the stock dividend. Presented below are pro forma basic and diluted net income per common share after giving effect for the stock dividend: For the Three Months Ended March 31, 2016 2015 Pro forma net income per common share: Basic $ 0.91 $ 1.90 Diluted $ 0.89 $ 1.87 The pro forma impact of the stock dividend on the Consolidated Balance Sheet at March 31, 2016 is an increase in common stock of $2.7 million, an increase in additional paid-in capital of $150.9 million and a decrease to retained earnings of $153.6 million. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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, 2015, filed with the Securities and Exchange Commission on February 26, 2016. The interim financial information as of, and for the three months ended, March 31, 2016 and 2015 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. During the first quarter of 2016, we evaluated our accounting for our alternative investment portfolio and determined that as we manage these investments to appreciate in value on a quarter to quarter basis, it is more appropriate to classify the change in value as net investment income as opposed to realized investment gains (losses). As a result, net investment income for the three months ended March 31, 2015 was increased $4.9 million and net realized investment and other gains were reduced $4.9 million for this reclassification. For the three months ended March 31, 2016, we recorded a $1.6 million reduction to net investment income for the change in value of these securities. |
Recently Issued Accounting Pr24
Recently Issued Accounting Pronouncements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items | The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Balance Sheets were as follows: December 31, 2015 (in millions) As Previously Reported As Adjusted Effect of Change Other assets $ 225.2 $ 220.7 $ (4.5 ) Senior unsecured fixed rate notes 143.8 139.3 (4.5 ) The effects of the retrospective application of this guidance on individual financial statement line items in our Consolidated Statements of Cash Flows were as follows: For the three months ended March 31, 2015 (in millions) As Previously Reported As Adjusted Effect of Change Cash flows from operating activities: Amortization of debt issuance costs $ — $ (0.1 ) $ (0.1 ) Cash flows from financing activities: Amortization of debt issuance costs — 0.1 0.1 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities USD denominated: U.S. Governments $ 197.4 $ 2.1 $ 0.1 $ 199.4 Non-U.S. Governments 82.1 0.6 0.2 82.5 Obligations of states and political subdivisions 408.6 20.8 0.3 429.1 Credit-Financial 504.0 8.0 2.2 509.8 Credit-Industrial 533.2 9.8 7.8 535.2 Credit-Utility 162.1 2.4 11.3 153.2 Structured securities: CMO/MBS-agency (1) 145.8 5.7 0.1 151.4 CMO/MBS-non agency 6.3 0.6 — 6.9 CMBS (2) 217.2 1.1 0.9 217.4 ABS (3) 116.4 0.4 0.3 116.5 CLO (4) 145.5 — 2.9 142.6 Foreign denominated: Governments 166.9 2.4 10.6 158.7 Credit 119.7 1.6 15.0 106.3 ABS/CMBS 18.7 0.1 2.2 16.6 CLO 87.9 1.5 7.4 82.0 Total fixed maturities 2,911.8 57.1 61.3 2,907.6 Equity securities 324.5 121.0 15.2 430.3 Other investments 532.1 7.5 16.6 523.0 Short-term investments 266.1 0.1 — 266.2 Total investments $ 4,034.5 $ 185.7 $ 93.1 $ 4,127.1 (1) Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). (2) Commercial mortgage-backed securities (“CMBS”). (3) Asset-backed securities (“ABS”). (4) December 31, 2015 (in millions) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Fixed maturities USD denominated: U.S. Governments $ 207.9 $ 0.7 $ 0.7 $ 207.9 Non-U.S. Governments 92.9 — 1.2 91.7 Obligations of states and political subdivisions 467.6 20.7 0.3 488.0 Credit-Financial 533.3 6.1 3.5 535.9 Credit-Industrial 524.2 5.4 11.7 517.9 Credit-Utility 168.7 0.9 13.4 156.2 Structured securities: CMO/MBS-agency (1) 126.5 5.0 0.5 131.0 CMO/MBS-non agency 11.0 0.6 0.1 11.5 CMBS (2) 182.2 0.5 1.5 181.2 ABS (3) 111.4 0.2 0.7 110.9 CLO (4) 137.1 0.2 1.7 135.6 Foreign denominated: Governments 170.0 0.8 19.6 151.2 Credit 129.1 1.2 20.2 110.1 ABS/CMBS 24.1 0.1 2.3 21.9 CLO 85.0 0.7 9.4 76.3 Total fixed maturities 2,971.0 43.1 86.8 2,927.3 Equity securities 349.7 131.5 17.3 463.9 Other investments 499.6 15.0 0.9 513.7 Short-term investments 211.2 — 0.4 210.8 Total investments $ 4,031.5 $ 189.6 $ 105.4 $ 4,115.7 (1) Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). (2) Commercial mortgage-backed securities (“CMBS”). (3) Asset-backed securities (“ABS”). (4) |
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 March 31, 2016, by contractual maturity, were as follows: (in millions) Amortized Cost Fair Value Due in one year or less $ 241.9 $ 233.8 Due after one year through five years 1,343.9 1,341.1 Due after five years through ten years 430.5 434.7 Thereafter 157.7 164.6 Structured securities 737.8 733.4 Total $ 2,911.8 $ 2,907.6 |
Schedule Of Carrying Value Redemption Characteristics And Unfunded Investment Commitments Of Other Invested Assets Portfolio | Details regarding the carrying value and unfunded investment commitments of the other invested assets portfolio as of March 31, 2016 and December 31, 2015 were as follows: March 31, 2016 (in millions) Carrying Value Unfunded Commitments Investment Type Hedge funds $ 152.0 $ — Private equity 146.8 88.6 Long only funds 221.8 — Other investments 2.4 — Total other invested assets $ 523.0 $ 88.6 December 31, 2015 (in millions) Carrying Value Unfunded Commitments Investment Type Hedge funds $ 146.9 $ — Private equity 144.1 90.2 Long only funds 200.0 — Other investments 22.7 — Total other invested assets $ 513.7 $ 90.2 |
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: March 31, 2016 Less Than One Year One Year or Greater Total (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturities USD denominated: U.S. Governments (2) $ 35.9 $ 0.1 $ 0.2 $ — $ 36.1 $ 0.1 Non-U.S. Governments (2) 21.1 0.2 1.8 — 22.9 0.2 Obligations of states and political subdivisions (1) 1.4 — 9.6 0.3 11.0 0.3 Credit-Financial 150.0 1.7 32.5 0.5 182.5 2.2 Credit-Industrial 144.1 5.6 24.5 2.2 168.6 7.8 Credit-Utility 72.0 6.2 17.5 5.1 89.5 11.3 Structured securities: CMO/MBS-agency (1) 2.9 — 9.0 0.1 11.9 0.1 CMO/MBS-non agency (1) 0.1 — — — 0.1 — CMBS 102.4 0.7 6.7 0.2 109.1 0.9 ABS 38.7 0.1 7.0 0.2 45.7 0.3 CLO 109.8 2.2 18.2 0.7 128.0 2.9 Foreign denominated: Governments 102.0 10.5 0.3 0.1 102.3 10.6 Credit 89.6 14.9 0.8 0.1 90.4 15.0 ABS/CMBS 15.7 2.1 0.8 0.1 16.5 2.2 CLO 80.2 7.2 0.5 0.2 80.7 7.4 Total fixed maturities 965.9 51.5 129.4 9.8 1,095.3 61.3 Equity securities 100.4 15.2 — — 100.4 15.2 Other investments (16.3 ) 16.6 — — (16.3 ) 16.6 Short-term investments (1) 0.5 — — — 0.5 — Total $ 1,050.5 $ 83.3 $ 129.4 $ 9.8 $ 1,179.9 $ 93.1 (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. December 31, 2015 Less Than One Year One Year or Greater Total (in millions) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Fixed maturities USD denominated: U.S. Governments (2) $ 138.3 $ 0.7 $ 0.4 $ — $ 138.7 $ 0.7 Non-U.S. Governments (2) 80.2 1.2 2.2 — 82.4 1.2 Obligations of states and political subdivisions (1) 9.3 — 8.8 0.3 18.1 0.3 Credit-Financial 308.7 3.0 32.2 0.5 340.9 3.5 Credit-Industrial 320.4 9.6 28.7 2.1 349.1 11.7 Credit-Utility 111.6 8.5 16.4 4.9 128.0 13.4 Structured securities: CMO/MBS-agency 26.9 0.2 8.4 0.3 35.3 0.5 CMO/MBS-non agency 7.0 0.1 — — 7.0 0.1 CMBS (2) 126.3 1.5 3.0 — 129.3 1.5 ABS 91.8 0.4 6.8 0.3 98.6 0.7 CLO 103.5 1.4 12.5 0.3 116.0 1.7 Foreign denominated: Governments 137.1 19.5 0.3 0.1 137.4 19.6 Credit 104.3 20.0 0.5 0.2 104.8 20.2 ABS/CMBS (2) 20.8 2.3 0.1 — 20.9 2.3 CLO 75.5 9.2 0.5 0.2 76.0 9.4 Total fixed maturities 1,661.7 77.6 120.8 9.2 1,782.5 86.8 Equity securities 112.4 17.3 — — 112.4 17.3 Other investments (0.5 ) 0.9 — — (0.5 ) 0.9 Short-term investments 5.8 0.4 — — 5.8 0.4 Total $ 1,779.4 $ 96.2 $ 120.8 $ 9.2 $ 1,900.2 $ 105.4 (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 and other gains (losses): For the Three Months Ended March 31, (in millions) 2016 2015 Realized gains Fixed maturities $ 6.4 $ 4.1 Equity securities 19.3 3.8 Other investments 10.2 14.1 Short-term investments 0.2 — Gain on sale of real estate holdings — 0.3 Gross realized investment gains 36.1 22.3 Realized losses Fixed maturities (8.4 ) (3.7 ) Equity securities (6.1 ) (0.7 ) Other investments (22.6 ) (5.2 ) Short-term investments (0.1 ) (1.1 ) Other-than-temporary impairment losses on fixed maturities (0.6 ) (0.4 ) Other-than-temporary impairment losses on equity securities (1.1 ) (0.1 ) Gross realized investment and other losses (38.9 ) (11.2 ) Net realized investment and other (losses) gains $ (2.8 ) $ 11.1 |
Schedule of Realized Gains (Losses) and Changes in Unrealized Appreciation (Depreciation) | The cost of securities sold is based on the specific identification method. Realized gains (losses) and changes in unrealized appreciation (depreciation) related to fixed maturity and equity security investments are summarized as follows: (in millions) Fixed Maturities Equity Maturities Other Investments Other Real Estate Holdings and Other Tax Effects Total Three Months Ended March 31, 2016 Realized before impairments $ (2.0 ) $ 13.2 $ (12.4 ) $ 0.1 $ — $ (1.8 ) $ (2.9 ) Realized - impairments (0.6 ) (1.1 ) — — — 0.6 (1.1 ) Change in unrealized 38.9 (9.0 ) 0.6 0.5 — (3.7 ) 27.3 Three Months Ended March 31, 2015 Realized before impairments $ 0.4 $ 3.1 $ 8.9 $ (1.1 ) $ 0.3 $ (4.2 ) $ 7.4 Realized - impairments (0.4 ) (0.1 ) — — — 0.2 (0.3 ) Change in unrealized (12.3 ) (10.8 ) 1.6 (0.3 ) — 2.9 (18.9 ) |
Schedule of Fair Value of Foreign Currency Exchange Forward Contracts | The fair value of our foreign currency exchange forward contracts as of March 31, 2016 and December 31, 2015 was as follows: March 31, December 31, (in millions) 2016 2015 Canadian dollar (CAD) currency exposure $ (12.3 ) $ 5.2 Euro (EUR) investment exposure (4.2 ) 2.9 Total return strategy (1) (0.1 ) (0.8 ) $ (16.6 ) $ 7.3 (1 ) Program incepted in 2015 |
Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts | The following table represents our gross investment realized gains and losses on our foreign currency exchange forward contracts: For the Three Months Ended March 31, (in millions) 2016 2015 Realized gains Global catastrophe $ — $ 0.3 Canadian dollar (CAD) currency exposure 2.8 7.5 Euro (EUR) investment exposure — 6.3 Investment portfolio return strategy 0.3 — Total return strategy 6.4 — Gross realized investment gains 9.5 14.1 Realized losses Global catastrophe — (1.2 ) Canadian dollar (CAD) currency exposure (8.5 ) (2.0 ) Euro (EUR) investment exposure (3.6 ) — Investment portfolio return strategy (0.2 ) — Total return strategy (9.0 ) — Gross realized investment losses (21.3 ) (3.2 ) Net realized investment gains (losses) on foreign currency exchange forward contracts $ (11.8 ) $ 10.9 |
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 (in millions) March 31, 2016 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities USD denominated: U.S. Governments $ 199.4 $ 139.8 $ 59.6 $ — Non-U.S. Governments 82.5 — 82.5 — Obligations of states and political subdivisions 429.1 — 429.1 — Credit-Financial 509.8 — 509.8 — Credit-Industrial 535.2 — 535.2 — Credit-Utility 153.2 — 153.2 — Structured securities: CMO/MBS-agency 151.4 — 151.4 — CMO/MBS-non agency 6.9 — 6.9 — CMBS 217.4 — 217.4 — ABS 116.5 — 116.5 — CLO 142.6 — 142.6 — Foreign denominated: Governments 158.7 — 158.7 — Credit 106.3 — 106.3 — ABS/CMBS 16.6 — 16.6 — CLO 82.0 — 82.0 — Total fixed maturities 2,907.6 139.8 2,767.8 — Equity securities 430.3 427.6 2.1 0.6 Other investments 74.2 — 74.2 — Short-term investments 266.2 257.4 8.8 — $ 3,678.3 $ 824.8 $ 2,852.9 $ 0.6 (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, 2015 Level 1 (a) Level 2 (b) Level 3 (c) Fixed maturities USD denominated: U.S. Governments $ 207.9 $ 150.4 $ 57.5 $ — Non-U.S. Governments 91.7 — 91.7 — Obligations of states and political subdivisions 488.0 — 488.0 — Credit-Financial 535.9 — 535.9 — Credit-Industrial 517.9 — 517.9 — Credit-Utility 156.2 — 156.2 — Structured securities: CMO/MBS-agency 131.0 — 131.0 — CMO/MBS-non agency 11.5 — 11.5 — CMBS 181.2 — 181.2 — ABS 110.9 — 110.9 — CLO 135.6 — 135.6 — Foreign denominated: Governments 151.2 — 151.2 — Credit 110.1 — 110.1 — ABS/CMBS 21.9 — 21.9 — CLO 76.3 — 76.3 — Total fixed maturities 2,927.3 150.4 2,776.9 — Equity securities 463.9 457.6 5.6 0.7 Other investments 97.2 — 97.2 — Short-term investments 210.8 203.6 7.2 — $ 3,699.2 $ 811.6 $ 2,886.9 $ 0.7 (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 Securities Total Beginning balance, January 1, 2016 $ 0.7 $ 0.7 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses (realized/unrealized): Included in net income (loss) — — Included in other comprehensive income (loss) — — Purchases, issuances, sales, and settlements Purchases — — Issuances — — Sales (0.1 ) (0.1 ) Settlements — — Ending balance, March 31, 2016 $ 0.6 $ 0.6 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 March 31, 2016 $ — $ — (in millions) Equity Securities Total Beginning balance, January 1, 2015 $ 0.9 $ 0.9 Transfers into Level 3 — — Transfers out of Level 3 — — Total gains or losses (realized/unrealized): Included in net income (loss) — — Included in other comprehensive income (loss) — — Purchases, issuances, sales, and settlements Purchases — — Issuances — — Sales (0.2 ) (0.2 ) Settlements — — Ending balance, December 31, 2015 $ 0.7 $ 0.7 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, 2015 $ — $ — |
Reserves for Losses and Loss 26
Reserves for Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Reserves for Losses and Loss Adjustment Expenses | The following table provides a reconciliation of reserves for losses and loss adjustment expenses (“LAE”): For the Three Months Ended March 31, (in millions) 2016 2015 Net reserves beginning of the year $ 2,133.3 $ 2,137.1 Add: Losses and LAE incurred during current calendar year, net of reinsurance: Current accident year 194.8 187.4 Prior accident years (3.2 ) (3.7 ) Losses and LAE incurred during calendar year, net of reinsurance 191.6 183.7 Deduct: Losses and LAE payments made during current calendar year, net of reinsurance: Current accident year 24.8 19.8 Prior accident years 144.7 141.0 Losses and LAE payments made during current calendar year, net of reinsurance: 169.5 160.8 Change in participation interest (1) (42.3 ) (1.2 ) Foreign exchange adjustments (3.6 ) (6.0 ) Net reserves - end of period 2,109.5 2,152.8 Add: Reinsurance recoverables on unpaid losses and LAE, end of period 1,032.0 882.3 Gross reserves - end of period $ 3,141.5 $ 3,035.1 (1) Amount represents decreases in reserves due to change in syndicate participation |
Disclosures about Fair Value 27
Disclosures about Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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: March 31, 2016 December 31, 2015 (in millions) Carrying Amount Fair Value Carrying Amount Fair Value Junior subordinated debentures $ 172.7 $ 158.4 $ 172.7 $ 166.5 Senior unsecured fixed rate notes 139.4 141.8 139.3 141.8 Other indebtedness: Floating rate loan stock 55.8 51.2 54.6 52.7 Note payable 0.6 0.6 0.6 0.6 $ 368.5 $ 352.0 $ 367.2 $ 361.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Repurchase of Shares | A summary of common shares repurchased for the three months ended March 31, 2016 is shown below: Repurchase Type Date Trading Plan Initiated 2016 Purchase Period Number of Shares Repurchased Average Price of Shares Repurchased Total Cost (in millions) Repurchase Authorization Year 10b5-1 Trading Plan 12/16/2015 01/04/2016-02/11/2016 266,538 $ 55.59 $ 14.8 2013 10b5-1 Trading Plan 03/16/2016 03/16/2016-03/28/2016 12,650 $ 55.76 0.7 2013 Open Market N/A 01/01/2016-03/31/2016 64,464 $ 54.14 3.5 2013 Total 343,652 $ 55.32 $ 19.0 |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 is presented below: (in millions) Foreign Currency Translation Adjustments Unrealized Holding Gains on Securities Defined Benefit Pension Plans Total Balance, January 1, 2016 $ (21.6 ) $ 40.0 $ (6.9 ) $ 11.5 Other comprehensive (loss) income before reclassifications 1.5 31.0 — 32.5 Amounts reclassified from accumulated other comprehensive (loss) income — (3.7 ) — (3.7 ) Net current-period other comprehensive (loss) income 1.5 27.3 — 28.8 Balance at March 31, 2016 $ (20.1 ) $ 67.3 $ (6.9 ) $ 40.3 (in millions) Foreign Currency Translation Adjustments Unrealized Holding Gains on Securities Defined Benefit Pension Plans Total Balance, January 1, 2015 $ (15.6 ) $ 130.7 $ (7.0 ) $ 108.1 Other comprehensive (loss) income before reclassifications (3.1 ) (21.5 ) — (24.6 ) Amounts reclassified from accumulated other comprehensive (loss) income — 2.6 — 2.6 Net current-period other comprehensive (loss) income (3.1 ) (18.9 ) — (22.0 ) Balance at March 31, 2015 $ (18.7 ) $ 111.8 $ (7.0 ) $ 86.1 |
Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) | The following table illustrates the amounts reclassified from accumulated other comprehensive income (loss) shown in the above tables that have been included in our Consolidated Statements of Income: For the Three Months Ended March 31, (in millions) 2016 2015 Unrealized gains and losses on securities: Net realized investment (gain) loss $ (7.8 ) $ 2.5 Provision for income taxes 4.1 0.1 Net of taxes $ (3.7 ) $ 2.6 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Ended March 31, (in millions, except number of shares and per share amounts) 2016 2015 Net income $ 27.7 $ 58.8 Weighted average common shares outstanding - basic 27,710,955 28,129,692 Effect of dilutive securities: Equity compensation awards 593,616 547,687 Weighted average common shares outstanding - diluted 28,304,571 28,677,379 Net income per common share: Basic $ 1.00 $ 2.09 Diluted $ 0.98 $ 2.05 |
Supplemental Cash Flow Inform31
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of Interest Paid | Interest paid was as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Senior unsecured fixed rate notes $ 2.3 $ 2.3 Junior subordinated debentures 1.8 1.7 Other indebtedness 0.8 0.8 Total interest paid $ 4.9 $ 4.8 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Fair Value Assumptions | The following table summarizes the assumptions we used for the three months ended March 31, 2016 and 2015: For the Three Months Ended March 31, 2016 2015 Risk-free rate of return 1.37% 1.47% Expected dividend yields 1.62% 1.63% Expected award life (years) 4.61 4.71 Expected volatility 19.64% 22.09% |
Summary of Restricted Share Activity | A summary of restricted share activity as of March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Grant Date Fair Value Outstanding at January 1, 2016 475,307 $ 40.46 Granted 210,463 $ 55.10 Vested and issued (63,773 ) $ 35.35 Expired or forfeited (5,542 ) $ 46.90 Outstanding at March 31, 2016 616,455 $ 45.93 |
Summary of Stock-Settled SARs Activity | A summary of stock-settled SARs activity as of March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Exercise Price Outstanding at January 1, 2016 1,318,101 $ 32.50 Granted 542 $ 40.38 Converted from cash-settled SARs 864,035 $ 45.33 Exercised (26,398 ) $ 26.10 Expired or forfeited (72,349 ) $ 47.88 Outstanding at March 31, 2016 2,083,931 $ 37.37 |
Summary of Cash-Settled SARs Activity | A summary of cash-settled SARs activity as of March 31, 2016 and changes during the three months then ended is as follows: Shares Weighted-Average Exercise Price Outstanding at January 1, 2016 2,134,121 $ 39.22 Granted 540 $ 40.38 Converted to stock-settled SARs (864,035 ) $ 45.33 Exercised (113,663 ) $ 30.15 Expired or forfeited (58,092 ) $ 44.23 Outstanding at March 31, 2016 1,098,871 $ 35.10 |
Underwriting, Acquisition and33
Underwriting, Acquisition and Insurance Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | |
Underwriting, Acquisition and Insurance Expenses | Underwriting, acquisition and insurance expenses were as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Commissions $ 57.1 $ 58.7 General expenses 70.6 72.9 Premium taxes, boards and bureaus 6.6 0.6 134.3 132.2 Net deferral of policy acquisition costs (1.7 ) (2.6 ) Total underwriting, acquisition and insurance expenses $ 132.6 $ 129.6 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision (Benefit) | Our income tax provision includes the following components: For the Three Months Ended March 31, (in millions) 2016 2015 Current tax provision (benefit) $ 1.5 $ (0.2 ) Deferred tax provision related to: Future tax deductions 2.9 5.5 Valuation allowance change 1.0 (1.7 ) Income tax provision $ 5.4 $ 3.6 |
Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates | For the three months ended March 31, 2016 and 2015, pre-tax income (loss) attributable to our operations and the operations’ effective tax rates were as follows: For the Three Months Ended March 31, (in millions) 2016 2015 Pre-Tax Income (Loss) Effective Tax Rate Pre-Tax Income (Loss) Effective Tax Rate Bermuda $ 22.0 0.0 % $ 25.7 0.0 % United States 23.3 23.7 % 28.5 20.2 % United Kingdom (12.3 ) 1.5 % 10.1 -21.9 % Belgium — (1) 0.0 % (0.2 ) -4.8 % Brazil (0.1 ) 0.0 % (1.9 ) 0.0 % United Arab Emirates — (1) 0.0 % 0.1 0.0 % Ireland — (1) 0.0 % (0.2 ) 0.0 % Malta 0.2 0.0 % 0.3 0.0 % Switzerland — (1) 19.8 % — (1) 21.0 % Pre-tax income $ 33.1 $ 62.4 (1) Pre-tax income for the respective year 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 Ended March 31, (in millions) 2016 2015 Income tax provision at expected rate $ 5.8 $ 11.2 Tax effect of: Tax-exempt interest (0.9 ) (0.9 ) Dividends received deduction (0.5 ) (0.6 ) Valuation allowance change 1.0 (1.7 ) Other permanent adjustments, net 0.2 0.2 Adjustment for annualized rate (1.5 ) (0.5 ) United States state tax benefit — (2.5 ) Other foreign adjustments — (0.3 ) Prior period adjustments to deferred — 2.2 Prior year foreign taxes recovered — (1.2 ) Deferred tax rate reduction (0.3 ) — Foreign exchange adjustments 1.5 (2.4 ) Foreign withholding taxes 0.1 0.1 Income tax provision $ 5.4 $ 3.6 Income tax benefit - Foreign $ (0.2 ) $ (2.2 ) Income tax provision - United States, Federal 5.5 9.5 Income tax benefit - United States, State — (3.8 ) Foreign withholding tax - United States 0.1 0.1 Income tax provision $ 5.4 $ 3.6 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 Ended March 31, (in millions) 2016 2015 Revenue: Earned premiums Excess and Surplus Lines $ 119.8 $ 111.9 Commercial Specialty 86.8 83.8 International Specialty 37.8 36.2 Syndicate 1200 100.5 103.0 Run-off Lines — (0.3 ) Total earned premiums 344.9 334.6 Net investment income (loss) Excess and Surplus Lines 8.7 8.0 Commercial Specialty 5.1 5.0 International Specialty 3.3 2.9 Syndicate 1200 2.8 2.2 Run-off Lines 2.2 2.0 Corporate and Other (0.9 ) 5.6 Total net investment income 21.2 25.7 Fee and other income 6.8 4.6 Net realized investment and other (losses) gains (2.8 ) 11.1 Total revenue $ 370.1 $ 376.0 For the Three Months Ended March 31, (in millions) 2016 2015 Income (loss) before income taxes Excess and Surplus Lines $ 21.2 $ 21.4 Commercial Specialty 13.7 7.1 International Specialty 10.3 8.9 Syndicate 1200 7.4 11.2 Run-off Lines (1.4 ) 1.2 Total segment income before taxes 51.2 49.8 Corporate and Other (15.3 ) 1.5 Net realized investment and other (losses) gains (2.8 ) 11.1 Total income before income taxes $ 33.1 $ 62.4 |
Schedule of Earned Premiums by Geographic Location | The table below presents earned premiums by geographic location for the three months ended March 31, 2016 and 2015. 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 Ended March 31, (in millions) 2016 2015 Bermuda $ 28.1 $ 23.9 Brazil 9.2 12.5 Malta 0.5 0.5 United Kingdom 100.6 101.9 United States 206.5 195.8 Total earned premiums $ 344.9 $ 334.6 |
Identifiable Assets | The following table represents identifiable assets: March 31, December 31, (in millions) 2016 2015 Excess and Surplus Lines $ 2,258.5 $ 2,219.0 Commercial Specialty 1,575.9 1,589.7 International Specialty 832.5 761.7 Syndicate 1200 1,489.4 1,398.0 Run-off Lines 516.3 524.2 Corporate and Other 147.1 133.0 Total $ 6,819.7 $ 6,625.6 |
Senior Unsecured Fixed Rate N36
Senior Unsecured Fixed Rate Notes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability | At March 31, 2016 and December 31, 2015, the Notes consisted of the following: (in millions) March 31, 2016 December 31, 2015 Senior unsecured fixed rate notes Principal $ 143.8 $ 143.8 Less: unamortized debt issuance costs (4.4 ) (4.5 ) Senior unsecured fixed rate notes, less unamortized debt issuance costs $ 139.4 $ 139.3 |
Condensed Consolidating Balance Sheet | CONDENSED CONSOLIDATING BALANCE SHEET MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Assets Investments $ (11.5 ) $ 2,782.9 $ 1,355.7 $ — $ 4,127.1 Cash — 74.3 48.6 — 122.9 Accrued investment income — 15.8 5.5 — 21.3 Premiums receivable — 178.3 270.1 — 448.4 Reinsurance recoverables — 1,226.3 (75.2 ) — 1,151.1 Goodwill and other intangible assets, net — 129.1 95.0 — 224.1 Current income taxes receivable, net — 6.2 3.1 — 9.3 Deferred acquisition costs, net — 56.3 80.1 — 136.4 Ceded unearned premiums — 146.4 161.6 — 308.0 Other assets 12.0 161.4 97.7 — 271.1 Intercompany note receivable — 50.3 (50.3 ) — — Investments in subsidiaries 1,762.2 — — (1,762.2 ) — Total assets $ 1,762.7 4,827.3 1,991.9 $ (1,762.2 ) $ 6,819.7 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — 2,199.9 941.6 $ — $ 3,141.5 Unearned premiums — 504.9 402.9 — 907.8 Funds held and ceded reinsurance payable, net — 755.0 (257.2 ) — 497.8 Long-term debt 28.3 284.3 55.9 — 368.5 Deferred tax liabilities, net — 22.5 9.0 — 31.5 Accrued underwriting expenses and other liabilities 15.0 81.5 70.7 — 167.2 Due to (from) affiliates 14.0 (1.4 ) 1.4 (14.0 ) — Total liabilities 57.3 3,846.7 1,224.3 (14.0 ) 5,114.3 Total shareholders' equity 1,705.4 980.6 767.6 (1,748.2 ) 1,705.4 Total liabilities and shareholders' equity $ 1,762.7 $ 4,827.3 $ 1,991.9 $ (1,762.2 ) $ 6,819.7 (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 BALANCE SHEET DECEMBER 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Assets Investments $ 6.2 $ 2,761.0 $ 1,348.5 $ — $ 4,115.7 Cash — 88.8 32.9 — 121.7 Accrued investment income — 16.4 5.2 — 21.6 Premiums receivable — 166.4 238.1 — 404.5 Reinsurance recoverables — 1,212.2 (91.1 ) — 1,121.1 Goodwill and other intangible assets, net — 129.8 95.7 — 225.5 Current income taxes receivable, net — 4.7 6.9 — 11.6 Deferred acquisition costs, net — 58.2 74.2 — 132.4 Ceded unearned premiums — 125.8 125.0 — 250.8 Other assets 8.2 151.7 60.8 — 220.7 Intercompany note receivable — 49.8 (49.8 ) — — Investments in subsidiaries 1,715.9 — — (1,715.9 ) — Total assets $ 1,730.3 $ 4,764.8 $ 1,846.4 $ (1,715.9 ) $ 6,625.6 Liabilities and Shareholders' Equity Reserves for losses and loss adjustment expenses $ — $ 2,194.1 $ 929.5 $ — $ 3,123.6 Unearned premiums — 501.5 385.2 — 886.7 Funds held and ceded reinsurance payable, net — 702.6 (312.6 ) — 390.0 Long-term debt 28.4 284.2 54.6 — 367.2 Deferred tax liabilities, net — 11.9 11.7 — 23.6 Accrued underwriting expenses and other liabilities 16.3 95.4 54.7 — 166.4 Due to (from) affiliates 17.5 2.3 (2.3 ) (17.5 ) — Total liabilities 62.2 3,792.0 1,120.8 (17.5 ) 4,957.5 Total shareholders' equity 1,668.1 972.8 725.6 (1,698.4 ) 1,668.1 Total liabilities and shareholders' equity $ 1,730.3 $ 4,764.8 $ 1,846.4 $ (1,715.9 ) $ 6,625.6 (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 MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Premiums and other revenue: Earned premiums $ — $ 119.9 $ 225.0 $ — $ 344.9 Net investment income (expense) (0.6 ) 12.6 9.2 — 21.2 Fee and other income — 5.2 1.6 — 6.8 Net realized investment and other (losses) gains — 11.2 (14.0 ) — (2.8 ) Total revenue (0.6 ) 148.9 221.8 — 370.1 Expenses: Losses and loss adjustment expenses — 68.3 123.3 — 191.6 Underwriting, acquisition and insurance expenses 5.2 47.6 79.8 — 132.6 Interest expense 0.3 3.9 0.6 — 4.8 Fee and other expense — 6.2 0.3 — 6.5 Foreign currency exchange loss — — 1.5 — 1.5 Total expenses 5.5 126.0 205.5 — 337.0 Income before income taxes (6.1 ) 22.9 16.3 — 33.1 Provision for income taxes — 5.4 — — 5.4 Net income before equity in earnings of subsidiaries (6.1 ) 17.5 16.3 — 27.7 Equity in undistributed earnings of subsidiaries 33.8 — — (33.8 ) — Net income $ 27.7 $ 17.5 $ 16.3 $ (33.8 ) $ 27.7 (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 MARCH 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Premiums and other revenue: Earned premiums $ — $ 135.1 $ 199.5 $ — $ 334.6 Net investment income (expense) (0.2 ) 19.4 6.5 — 25.7 Fee and other income — 3.6 1.0 — 4.6 Net realized investment and other (losses) gains — 11.0 0.1 — 11.1 Total revenue (0.2 ) 169.1 207.1 — 376.0 Expenses: Losses and loss adjustment expenses — 80.2 103.5 — 183.7 Underwriting, acquisition and insurance expenses 4.7 51.9 73.0 — 129.6 Interest expense 0.5 3.8 0.6 — 4.9 Fee and other expense — 4.4 0.6 — 5.0 Foreign currency exchange loss (gains) — 0.8 (10.4 ) — (9.6 ) Total expenses 5.2 141.1 167.3 — 313.6 Income before income taxes (5.4 ) 28.0 39.8 — 62.4 Provision for income taxes — 5.8 (2.2 ) — 3.6 Net income before equity in earnings of subsidiaries (5.4 ) 22.2 42.0 — 58.8 Equity in undistributed earnings of subsidiaries 64.2 — — (64.2 ) — Net income $ 58.8 $ 22.2 $ 42.0 $ (64.2 ) $ 58.8 (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 THREE MONTHS ENDED MARCH 31, 2016 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Net cash flows from operating activities $ 5.6 $ 23.1 $ 22.5 $ — $ 51.2 Cash flows from investing activities: Proceeds from sales of investments — 306.0 74.7 — 380.7 Maturities and mandatory calls of fixed maturity investments — 84.8 48.4 — 133.2 Purchases of investments — (364.1 ) (94.5 ) — (458.6 ) Change in short-term investments and foreign regulatory deposits 0.3 (34.6 ) (21.6 ) — (55.9 ) Settlements of foreign currency exchange forward contracts — — (3.9 ) — (3.9 ) Purchases of fixed assets and other, net — (10.9 ) (10.1 ) — (21.0 ) Cash provided (used by) investing activities 0.3 (18.8 ) (7.0 ) — (25.5 ) Cash flows from financing activities: Amortization of debt issuance costs — 0.1 — 0.1 Activity under stock incentive plans 0.3 — — — 0.3 Repurchase of Company's common shares — (19.0 ) — — (19.0 ) Excess tax expense from share-based payment arrangements — 0.1 — — 0.1 Payment of cash dividend to common shareholders (6.2 ) — — — (6.2 ) Cash used by financing activities (5.9 ) (18.8 ) — — (24.7 ) Effect of exchange rate changes on cash — — 0.2 — 0.2 Change in cash — (14.5 ) 15.7 — 1.2 Cash, beginning of the period — 88.8 32.9 — 121.7 Cash, end of period $ — $ 74.3 $ 48.6 $ — $ 122.9 (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 THREE MONTHS ENDED MARCH 31, 2015 (in millions) Argo Group International Holdings, Ltd (Parent Guarantor) Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) Other Subsidiaries and Eliminations (1) Consolidating Adjustments (2) Total Net cash flows (used by) from operating activities $ 2.9 $ 43.5 $ (18.9 ) $ — $ 27.5 Cash flows from investing activities: Proceeds from sales of investments — 340.1 82.9 — 423.0 Maturities and mandatory calls of fixed maturity investments — 114.5 27.5 — 142.0 Purchases of investments — (471.4 ) (85.8 ) — (557.2 ) Change in short-term investments and foreign regulatory deposits 1.1 7.0 (3.3 ) — 4.8 Settlements of foreign currency exchange forward contracts 0.7 — (2.9 ) — (2.2 ) Purchases of fixed assets and other, net 0.1 (11.3 ) 2.9 — (8.3 ) Cash provided (used by) investing activities 1.9 (21.1 ) 21.3 — 2.1 Cash flows from financing activities: Amortization of debt issuance costs — 0.1 — — 0.1 Activity under stock incentive plans 0.9 — — — 0.9 Repurchase of Company's common shares — (17.0 ) — — (17.0 ) Payment of cash dividend to common shareholders (5.7 ) — — — (5.7 ) Cash used by financing activities (4.8 ) (16.9 ) — — (21.7 ) Effect of exchange rate changes on cash — — 0.2 — 0.2 Change in cash — 5.5 2.6 — 8.1 Cash, beginning of period — 49.3 31.7 — 81.0 Cash, end of period $ — $ 54.8 $ 34.3 $ — $ 89.1 (1) Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. (2) Includes all Argo Group parent company eliminations. |
Subsequent Event (Tables)
Subsequent Event (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Subsequent Events [Abstract] | |
Pro Forma Basic and Diluted Net Income per Common Share after Stock Dividend | Presented below are pro forma basic and diluted net income per common share after giving effect for the stock dividend: For the Three Months Ended March 31, 2016 2015 Pro forma net income per common share: Basic $ 0.91 $ 1.90 Diluted $ 0.89 $ 1.87 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - Restatement Of Revenue [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Basis Of Presentation [Line Items] | ||
Increase (decrease) in net investment income | $ (1.6) | $ 4.9 |
Increase (decrease) in net realized investment and other gains | $ (4.9) |
Recently Issued Accounting Pr39
Recently Issued Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | ||
Unamortized debt issuance costs related to senior unsecured fixed rate notes | $ 4.4 | $ 4.5 |
Recently Issued Accounting Pr40
Recently Issued Accounting Pronouncements - Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items in Consolidated Balance Sheets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Item Effected [Line Items] | |||
Other assets | $ 271.1 | $ 220.7 | [1] |
Senior unsecured fixed rate notes | $ 139.4 | 139.3 | [1] |
As Previously Reported [Member] | |||
Item Effected [Line Items] | |||
Other assets | 225.2 | ||
Senior unsecured fixed rate notes | 143.8 | ||
Restatement Of Revenue [Member] | |||
Item Effected [Line Items] | |||
Other assets | (4.5) | ||
Senior unsecured fixed rate notes | $ (4.5) | ||
[1] | Derived from audited consolidated financial statements. |
Recently Issued Accounting Pr41
Recently Issued Accounting Pronouncements - Effects of Retrospective Application of Guidance on Individual Financial Statement Line Items in Consolidated Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Amortization of debt extinguishment costs | $ (0.1) | $ (0.1) |
Cash flows from financing activities: | ||
Amortization of debt issuance costs | $ 0.1 | 0.1 |
As Previously Reported [Member] | ||
Cash flows from operating activities: | ||
Amortization of debt extinguishment costs | 0 | |
Cash flows from financing activities: | ||
Amortization of debt issuance costs | 0 | |
Restatement Of Revenue [Member] | ||
Cash flows from operating activities: | ||
Amortization of debt extinguishment costs | (0.1) | |
Cash flows from financing activities: | ||
Amortization of debt issuance costs | $ 0.1 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost, Gross Unrealized Gains, Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | $ 4,034.5 | $ 4,031.5 | |||
Gross Unrealized Gains | 185.7 | 189.6 | |||
Gross Unrealized Losses | 93.1 | 105.4 | |||
Fair Value | 4,127.1 | 4,115.7 | |||
Fixed Maturities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 2,911.8 | 2,971 | |||
Gross Unrealized Gains | 57.1 | 43.1 | |||
Gross Unrealized Losses | 61.3 | 86.8 | |||
Fair Value | 2,907.6 | 2,927.3 | |||
Fixed Maturities [Member] | CLO [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | [1] | 145.5 | 137.1 | ||
Gross Unrealized Gains | [1] | 0 | 0.2 | ||
Gross Unrealized Losses | [1] | 2.9 | 1.7 | ||
Fair Value | [1] | 142.6 | 135.6 | ||
Fixed Maturities [Member] | U.S. Governments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 197.4 | 207.9 | |||
Gross Unrealized Gains | 2.1 | 0.7 | |||
Gross Unrealized Losses | [2] | 0.1 | 0.7 | ||
Fair Value | 199.4 | 207.9 | |||
Fixed Maturities [Member] | Non-U.S. Governments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 82.1 | 92.9 | |||
Gross Unrealized Gains | 0.6 | 0 | |||
Gross Unrealized Losses | [2] | 0.2 | 1.2 | ||
Fair Value | 82.5 | 91.7 | |||
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 408.6 | 467.6 | |||
Gross Unrealized Gains | 20.8 | 20.7 | |||
Gross Unrealized Losses | [3] | 0.3 | 0.3 | ||
Fair Value | 429.1 | 488 | |||
Fixed Maturities [Member] | Credit-Financial [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 504 | 533.3 | |||
Gross Unrealized Gains | 8 | 6.1 | |||
Gross Unrealized Losses | 2.2 | 3.5 | |||
Fair Value | 509.8 | 535.9 | |||
Fixed Maturities [Member] | Credit-Industrial [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 533.2 | 524.2 | |||
Gross Unrealized Gains | 9.8 | 5.4 | |||
Gross Unrealized Losses | 7.8 | 11.7 | |||
Fair Value | 535.2 | 517.9 | |||
Fixed Maturities [Member] | Credit-Utility [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 162.1 | 168.7 | |||
Gross Unrealized Gains | 2.4 | 0.9 | |||
Gross Unrealized Losses | 11.3 | 13.4 | |||
Fair Value | 153.2 | 156.2 | |||
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | [4] | 145.8 | 126.5 | ||
Gross Unrealized Gains | [4] | 5.7 | 5 | ||
Gross Unrealized Losses | [4] | 0.1 | [3] | 0.5 | |
Fair Value | [4] | 151.4 | 131 | ||
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 6.3 | 11 | |||
Gross Unrealized Gains | 0.6 | 0.6 | |||
Gross Unrealized Losses | 0 | [3] | 0.1 | ||
Fair Value | 6.9 | 11.5 | |||
Fixed Maturities [Member] | CMBS [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | [5] | 217.2 | 182.2 | ||
Gross Unrealized Gains | [5] | 1.1 | 0.5 | ||
Gross Unrealized Losses | [5] | 0.9 | 1.5 | [2] | |
Fair Value | [5] | 217.4 | 181.2 | ||
Fixed Maturities [Member] | ABS [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | [6] | 116.4 | 111.4 | ||
Gross Unrealized Gains | [6] | 0.4 | 0.2 | ||
Gross Unrealized Losses | [6] | 0.3 | 0.7 | ||
Fair Value | [6] | 116.5 | 110.9 | ||
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 166.9 | 170 | |||
Gross Unrealized Gains | 2.4 | 0.8 | |||
Gross Unrealized Losses | 10.6 | 19.6 | |||
Fair Value | 158.7 | 151.2 | |||
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 119.7 | 129.1 | |||
Gross Unrealized Gains | 1.6 | 1.2 | |||
Gross Unrealized Losses | 15 | 20.2 | |||
Fair Value | 106.3 | 110.1 | |||
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 18.7 | 24.1 | |||
Gross Unrealized Gains | 0.1 | 0.1 | |||
Gross Unrealized Losses | 2.2 | 2.3 | [2] | ||
Fair Value | 16.6 | 21.9 | |||
Fixed Maturities [Member] | Foreign denominated: CLO [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 87.9 | 85 | |||
Gross Unrealized Gains | 1.5 | 0.7 | |||
Gross Unrealized Losses | 7.4 | 9.4 | |||
Fair Value | 82 | 76.3 | |||
Equity Securities [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 324.5 | 349.7 | |||
Gross Unrealized Gains | 121 | 131.5 | |||
Gross Unrealized Losses | 15.2 | 17.3 | |||
Fair Value | 430.3 | 463.9 | |||
Other Investments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 532.1 | 499.6 | |||
Gross Unrealized Gains | 7.5 | 15 | |||
Gross Unrealized Losses | 16.6 | 0.9 | |||
Fair Value | 523 | 513.7 | |||
Short-Term Investments [Member] | |||||
Schedule of Available-for-sale Securities [Line Items] | |||||
Amortized Cost | 266.1 | 211.2 | |||
Gross Unrealized Gains | 0.1 | 0 | |||
Gross Unrealized Losses | 0 | [3] | 0.4 | ||
Fair Value | $ 266.2 | $ 210.8 | |||
[1] | Collateralized loan obligations (“CLO”). | ||||
[2] | Unrealized losses one year or greater are less than $0.1 million. | ||||
[3] | Unrealized losses less than one year are less than $0.1 million. | ||||
[4] | Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). | ||||
[5] | Commercial mortgage-backed securities (“CMBS”). | ||||
[6] | Asset-backed securities (“ABS”). |
Investments - Additional Inform
Investments - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Security | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | |
Schedule Of Investments [Line Items] | |||
Fair value of investments, assets managed on behalf of the trade capital providers | $ 119,500,000 | $ 95,300,000 | |
Number of securities in an unrealized loss position, total | Security | 6,922 | ||
Number of securities in an unrealized loss position for less than one year | Security | 2,240 | ||
Number of securities in an unrealized loss position for a period of one year or greater | Security | 237 | ||
Amortized Cost | $ 4,034,500,000 | 4,031,500,000 | |
Fair Value | 4,127,100,000 | 4,115,700,000 | |
Reported loss expense reserve | 26,400,000 | 29,300,000 | |
Securities pledged to Lloyd's | 207,300,000 | 202,500,000 | |
Transfers between Level 1 and Level 2 securities | 0 | ||
Transfers between Level 2 and Level 1 securities | 0 | ||
Securities Pledged as Collateral [Member] | |||
Schedule Of Investments [Line Items] | |||
Pledged assets separately reported, securities pledged under letters of credit facilities, at amortized cost | 32,800,000 | 34,900,000 | |
Pledged assets separately reported, securities pledged under letters of credit facilities, at fair value | 32,900,000 | 35,000,000 | |
Fixed Maturities [Member] | |||
Schedule Of Investments [Line Items] | |||
Other-than-temporary losses | 1,100,000 | $ 400,000 | |
Amortized Cost | 2,911,800,000 | 2,971,000,000 | |
Fair Value | 2,907,600,000 | 2,927,300,000 | |
Equity Securities [Member] | |||
Schedule Of Investments [Line Items] | |||
Other-than-temporary losses | 600,000 | $ 100,000 | |
Amortized Cost | 324,500,000 | 349,700,000 | |
Fair Value | 430,300,000 | 463,900,000 | |
Deposit with Various U.S. Canadian Insurance and Other Agencies [Member] | United States [Member] | |||
Schedule Of Investments [Line Items] | |||
Amortized Cost | 168,500,000 | 187,100,000 | |
Fair Value | $ 175,300,000 | $ 192,800,000 |
Investments - Schedule of Amo44
Investments - Schedule of Amortized Cost and Fair Values of Fixed Maturity Investments, by Contractual Maturity (Detail) $ in Millions | Mar. 31, 2016USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost, Due in one year or less | $ 241.9 |
Amortized Cost, Due after one year through five years | 1,343.9 |
Amortized Cost, Due after five years through ten years | 430.5 |
Amortized Cost, Thereafter | 157.7 |
Amortized Cost, Structured securities | 737.8 |
Amortized Cost, Total | 2,911.8 |
Fair Value, Due in one year or less | 233.8 |
Fair Value, Due after one year through five years | 1,341.1 |
Fair Value, Due after five years through ten years | 434.7 |
Fair Value, Thereafter | 164.6 |
Fair Value, Structured securities | 733.4 |
Fair Value, Total | $ 2,907.6 |
Investments - Schedule of Carry
Investments - Schedule of Carrying Value and Unfunded Investment Commitments of Other Invested Assets Portfolio (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Investments [Line Items] | |||
Carrying Value | $ 4,127.1 | $ 4,115.7 | [1] |
Hedge funds [Member] | |||
Schedule Of Investments [Line Items] | |||
Carrying Value | 152 | 146.9 | |
Unfunded Commitments | 0 | 0 | |
Private equity [Member] | |||
Schedule Of Investments [Line Items] | |||
Carrying Value | 146.8 | 144.1 | |
Unfunded Commitments | 88.6 | 90.2 | |
Long only funds [Member] | |||
Schedule Of Investments [Line Items] | |||
Carrying Value | 221.8 | 200 | |
Unfunded Commitments | 0 | 0 | |
Other Investments [Member] | |||
Schedule Of Investments [Line Items] | |||
Carrying Value | 2.4 | 22.7 | |
Unfunded Commitments | 0 | 0 | |
Other invested assets [Member] | |||
Schedule Of Investments [Line Items] | |||
Carrying Value | 523 | 513.7 | |
Unfunded Commitments | $ 88.6 | $ 90.2 | |
[1] | Derived from audited consolidated financial statements. |
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 ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | $ 1,050.5 | $ 1,779.4 | |||
Unrealized Losses, Less Than One Year | 83.3 | 96.2 | |||
Fair Value, One Year or Greater | 129.4 | 120.8 | |||
Unrealized Losses, One Year or Greater | 9.8 | 9.2 | |||
Fair Value, Total | 1,179.9 | 1,900.2 | |||
Unrealized Losses, Total | 93.1 | 105.4 | |||
Fixed Maturities [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 965.9 | 1,661.7 | |||
Unrealized Losses, Less Than One Year | 51.5 | 77.6 | |||
Fair Value, One Year or Greater | 129.4 | 120.8 | |||
Unrealized Losses, One Year or Greater | 9.8 | 9.2 | |||
Fair Value, Total | 1,095.3 | 1,782.5 | |||
Unrealized Losses, Total | 61.3 | 86.8 | |||
Fixed Maturities [Member] | CLO [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 109.8 | 103.5 | |||
Unrealized Losses, Less Than One Year | 2.2 | 1.4 | |||
Fair Value, One Year or Greater | 18.2 | 12.5 | |||
Unrealized Losses, One Year or Greater | 0.7 | 0.3 | |||
Fair Value, Total | 128 | 116 | |||
Unrealized Losses, Total | [1] | 2.9 | 1.7 | ||
Fixed Maturities [Member] | U.S. Governments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | [2] | 35.9 | 138.3 | ||
Unrealized Losses, Less Than One Year | [2] | 0.1 | 0.7 | ||
Fair Value, One Year or Greater | [2] | 0.2 | 0.4 | ||
Unrealized Losses, One Year or Greater | [2] | 0 | 0 | ||
Fair Value, Total | [2] | 36.1 | 138.7 | ||
Unrealized Losses, Total | [2] | 0.1 | 0.7 | ||
Fixed Maturities [Member] | Non-U.S. Governments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | [2] | 21.1 | 80.2 | ||
Unrealized Losses, Less Than One Year | [2] | 0.2 | 1.2 | ||
Fair Value, One Year or Greater | [2] | 1.8 | 2.2 | ||
Unrealized Losses, One Year or Greater | [2] | 0 | 0 | ||
Fair Value, Total | [2] | 22.9 | 82.4 | ||
Unrealized Losses, Total | [2] | 0.2 | 1.2 | ||
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | [3] | 1.4 | 9.3 | ||
Unrealized Losses, Less Than One Year | [3] | 0 | 0 | ||
Fair Value, One Year or Greater | [3] | 9.6 | 8.8 | ||
Unrealized Losses, One Year or Greater | [3] | 0.3 | 0.3 | ||
Fair Value, Total | [3] | 11 | 18.1 | ||
Unrealized Losses, Total | [3] | 0.3 | 0.3 | ||
Fixed Maturities [Member] | Credit-Financial [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 150 | 308.7 | |||
Unrealized Losses, Less Than One Year | 1.7 | 3 | |||
Fair Value, One Year or Greater | 32.5 | 32.2 | |||
Unrealized Losses, One Year or Greater | 0.5 | 0.5 | |||
Fair Value, Total | 182.5 | 340.9 | |||
Unrealized Losses, Total | 2.2 | 3.5 | |||
Fixed Maturities [Member] | Credit-Industrial [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 144.1 | 320.4 | |||
Unrealized Losses, Less Than One Year | 5.6 | 9.6 | |||
Fair Value, One Year or Greater | 24.5 | 28.7 | |||
Unrealized Losses, One Year or Greater | 2.2 | 2.1 | |||
Fair Value, Total | 168.6 | 349.1 | |||
Unrealized Losses, Total | 7.8 | 11.7 | |||
Fixed Maturities [Member] | Credit-Utility [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 72 | 111.6 | |||
Unrealized Losses, Less Than One Year | 6.2 | 8.5 | |||
Fair Value, One Year or Greater | 17.5 | 16.4 | |||
Unrealized Losses, One Year or Greater | 5.1 | 4.9 | |||
Fair Value, Total | 89.5 | 128 | |||
Unrealized Losses, Total | 11.3 | 13.4 | |||
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 2.9 | [3] | 26.9 | ||
Unrealized Losses, Less Than One Year | 0 | [3] | 0.2 | ||
Fair Value, One Year or Greater | 9 | [3] | 8.4 | ||
Unrealized Losses, One Year or Greater | 0.1 | [3] | 0.3 | ||
Fair Value, Total | 11.9 | [3] | 35.3 | ||
Unrealized Losses, Total | [4] | 0.1 | [3] | 0.5 | |
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 0.1 | [3] | 7 | ||
Unrealized Losses, Less Than One Year | 0 | [3] | 0.1 | ||
Fair Value, One Year or Greater | 0 | [3] | 0 | ||
Unrealized Losses, One Year or Greater | 0 | [3] | 0 | ||
Fair Value, Total | 0.1 | [3] | 7 | ||
Unrealized Losses, Total | 0 | [3] | 0.1 | ||
Fixed Maturities [Member] | CMBS [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 102.4 | 126.3 | [2] | ||
Unrealized Losses, Less Than One Year | 0.7 | 1.5 | [2] | ||
Fair Value, One Year or Greater | 6.7 | 3 | [2] | ||
Unrealized Losses, One Year or Greater | 0.2 | 0 | [2] | ||
Fair Value, Total | 109.1 | 129.3 | [2] | ||
Unrealized Losses, Total | [5] | 0.9 | 1.5 | [2] | |
Fixed Maturities [Member] | ABS [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 38.7 | 91.8 | |||
Unrealized Losses, Less Than One Year | 0.1 | 0.4 | |||
Fair Value, One Year or Greater | 7 | 6.8 | |||
Unrealized Losses, One Year or Greater | 0.2 | 0.3 | |||
Fair Value, Total | 45.7 | 98.6 | |||
Unrealized Losses, Total | [6] | 0.3 | 0.7 | ||
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 102 | 137.1 | |||
Unrealized Losses, Less Than One Year | 10.5 | 19.5 | |||
Fair Value, One Year or Greater | 0.3 | 0.3 | |||
Unrealized Losses, One Year or Greater | 0.1 | 0.1 | |||
Fair Value, Total | 102.3 | 137.4 | |||
Unrealized Losses, Total | 10.6 | 19.6 | |||
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 89.6 | 104.3 | |||
Unrealized Losses, Less Than One Year | 14.9 | 20 | |||
Fair Value, One Year or Greater | 0.8 | 0.5 | |||
Unrealized Losses, One Year or Greater | 0.1 | 0.2 | |||
Fair Value, Total | 90.4 | 104.8 | |||
Unrealized Losses, Total | 15 | 20.2 | |||
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 15.7 | 20.8 | [2] | ||
Unrealized Losses, Less Than One Year | 2.1 | 2.3 | [2] | ||
Fair Value, One Year or Greater | 0.8 | 0.1 | [2] | ||
Unrealized Losses, One Year or Greater | 0.1 | 0 | [2] | ||
Fair Value, Total | 16.5 | 20.9 | [2] | ||
Unrealized Losses, Total | 2.2 | 2.3 | [2] | ||
Fixed Maturities [Member] | Foreign denominated: CLO [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 80.2 | 75.5 | |||
Unrealized Losses, Less Than One Year | 7.2 | 9.2 | |||
Fair Value, One Year or Greater | 0.5 | 0.5 | |||
Unrealized Losses, One Year or Greater | 0.2 | 0.2 | |||
Fair Value, Total | 80.7 | 76 | |||
Unrealized Losses, Total | 7.4 | 9.4 | |||
Equity Securities [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 100.4 | 112.4 | |||
Unrealized Losses, Less Than One Year | 15.2 | 17.3 | |||
Fair Value, One Year or Greater | 0 | 0 | |||
Unrealized Losses, One Year or Greater | 0 | 0 | |||
Fair Value, Total | 100.4 | 112.4 | |||
Unrealized Losses, Total | 15.2 | 17.3 | |||
Other Investments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | (16.3) | (0.5) | |||
Unrealized Losses, Less Than One Year | 16.6 | 0.9 | |||
Fair Value, One Year or Greater | 0 | 0 | |||
Unrealized Losses, One Year or Greater | 0 | 0 | |||
Fair Value, Total | (16.3) | (0.5) | |||
Unrealized Losses, Total | 16.6 | 0.9 | |||
Short-Term Investments [Member] | |||||
Schedule Of Investments [Line Items] | |||||
Fair Value, Less Than One Year | 0.5 | [3] | 5.8 | ||
Unrealized Losses, Less Than One Year | 0 | [3] | 0.4 | ||
Fair Value, One Year or Greater | 0 | [3] | 0 | ||
Unrealized Losses, One Year or Greater | 0 | [3] | 0 | ||
Fair Value, Total | 0.5 | [3] | 5.8 | ||
Unrealized Losses, Total | $ 0 | [3] | $ 0.4 | ||
[1] | Collateralized loan obligations (“CLO”). | ||||
[2] | Unrealized losses one year or greater are less than $0.1 million. | ||||
[3] | Unrealized losses less than one year are less than $0.1 million. | ||||
[4] | Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). | ||||
[5] | Commercial mortgage-backed securities (“CMBS”). | ||||
[6] | Asset-backed securities (“ABS”). |
Investments - Schedule of Agi47
Investments - Schedule of Aging of Unrealized Losses on Company's Investments in Fixed Maturities, Equity Securities and Other Investments (Parenthetical) (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Unrealized losses less than one year | $ 0.1 | $ 0.1 |
Unrealized losses one year or greater | $ 0.1 | $ 0.1 |
Investments - Schedule of Compa
Investments - Schedule of Company's Gross Realized Investment Gains (Losses) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | $ 36.1 | $ 22.3 |
Gross realized investment and other losses | (38.9) | (11.2) |
Net realized investment and other (losses) gains | (2.8) | 11.1 |
Fixed Maturities [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | 6.4 | 4.1 |
Gross realized investment and other losses | (8.4) | (3.7) |
Equity Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | 19.3 | 3.8 |
Gross realized investment and other losses | (6.1) | (0.7) |
Other Investments [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | 10.2 | 14.1 |
Gross realized investment and other losses | (22.6) | (5.2) |
Short-Term Investments [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | 0.2 | 0 |
Gross realized investment and other losses | (0.1) | (1.1) |
Real Estate Holdings [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment gains and other | 0 | 0.3 |
Other-Than-Temporary Impairment Losses on Fixed Maturities [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment and other losses | (0.6) | (0.4) |
Other-Than-Temporary Impairment Losses on Equity Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Gross realized investment and other losses | $ (1.1) | $ (0.1) |
Investments - Schedule of Reali
Investments - Schedule of Realized Gains (Losses) and Changes in Unrealized of Appreciation(Depreciation) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Investments [Line Items] | ||
Realized before impairments | $ (2.9) | $ 7.4 |
Realized - impairments | (1.1) | (0.3) |
Change in unrealized | 27.3 | (18.9) |
Realized before impairments, Tax Effects | (1.8) | (4.2) |
Realized - impairments, Tax Effects | 0.6 | 0.2 |
Change in unrealized, Tax Effects | (3.7) | 2.9 |
Fixed Maturities [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized before impairments | (2) | 0.4 |
Realized - impairments | (0.6) | (0.4) |
Change in unrealized | 38.9 | (12.3) |
Equity Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized before impairments | 13.2 | 3.1 |
Realized - impairments | (1.1) | (0.1) |
Change in unrealized | (9) | (10.8) |
Other Investments [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized before impairments | (12.4) | 8.9 |
Realized - impairments | 0 | 0 |
Change in unrealized | 0.6 | 1.6 |
Other Assets [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized before impairments | 0.1 | (1.1) |
Realized - impairments | 0 | 0 |
Change in unrealized | 0.5 | (0.3) |
Real Estate Holdings and Other [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized before impairments | 0 | 0.3 |
Realized - impairments | 0 | 0 |
Change in unrealized | $ 0 | $ 0 |
Investments - Schedule of Fair
Investments - Schedule of Fair Value of Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Investments [Line Items] | |||
Fair value of foreign currency exchange forward contracts | $ (16.6) | $ 7.3 | |
Currency Exposure [Member] | Canadian Dollar (CAD) [Member] | |||
Schedule Of Investments [Line Items] | |||
Fair value of foreign currency exchange forward contracts | (12.3) | 5.2 | |
Investment Exposure [Member] | Euro (EUR) [Member] | |||
Schedule Of Investments [Line Items] | |||
Fair value of foreign currency exchange forward contracts | (4.2) | 2.9 | |
Total return strategy [Member] | |||
Schedule Of Investments [Line Items] | |||
Fair value of foreign currency exchange forward contracts | [1] | $ (0.1) | $ (0.8) |
[1] | Program incepted in 2015 |
Investments - Schedule of Rea51
Investments - Schedule of Realized Gains and Losses of Investment on Foreign Currency Exchange Forward Contracts (Detail) - Foreign Currency Exchange Forward Contracts [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | $ 9.5 | $ 14.1 |
Realized losses from foreign currency exchange forward contracts | (21.3) | (3.2) |
Net realized investment gains (losses) on foreign currency exchange forward contracts | (11.8) | 10.9 |
Global Catastrophe [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | 0 | 0.3 |
Realized losses from foreign currency exchange forward contracts | 0 | (1.2) |
Currency Exposure [Member] | Canadian Dollar (CAD) [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | 2.8 | 7.5 |
Realized losses from foreign currency exchange forward contracts | (8.5) | (2) |
Investment Exposure [Member] | Euro (EUR) [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | 0 | 6.3 |
Realized losses from foreign currency exchange forward contracts | (3.6) | 0 |
Investment Portfolio Return Strategy [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | 0.3 | 0 |
Realized losses from foreign currency exchange forward contracts | (0.2) | 0 |
Total return strategy [Member] | ||
Schedule Of Investments [Line Items] | ||
Realized gains from foreign currency exchange forward contracts | 6.4 | 0 |
Realized losses from foreign currency exchange forward contracts | $ (9) | $ 0 |
Investments - Financial Assets
Investments - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | $ 4,127.1 | $ 4,115.7 | |
Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 2,907.6 | 2,927.3 | |
Fixed Maturities [Member] | CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [1] | 142.6 | 135.6 |
Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 199.4 | 207.9 | |
Fixed Maturities [Member] | Non-U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 82.5 | 91.7 | |
Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 429.1 | 488 | |
Fixed Maturities [Member] | Credit-Financial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 509.8 | 535.9 | |
Fixed Maturities [Member] | Credit-Industrial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 535.2 | 517.9 | |
Fixed Maturities [Member] | Credit-Utility [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 153.2 | 156.2 | |
Fixed Maturities [Member] | CMO/MBS-Agency [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [2] | 151.4 | 131 |
Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 6.9 | 11.5 | |
Fixed Maturities [Member] | CMBS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [3] | 217.4 | 181.2 |
Fixed Maturities [Member] | ABS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [4] | 116.5 | 110.9 |
Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 158.7 | 151.2 | |
Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 106.3 | 110.1 | |
Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 16.6 | 21.9 | |
Fixed Maturities [Member] | Foreign denominated: CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 82 | 76.3 | |
Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 430.3 | 463.9 | |
Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 523 | 513.7 | |
Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 266.2 | 210.8 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 3,678.3 | 3,699.2 | |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 824.8 | 811.6 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 2,852.9 | 2,886.9 |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0.6 | 0.7 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 2,907.6 | 2,927.3 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 142.6 | 135.6 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 139.8 | 150.4 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 2,767.8 | 2,776.9 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Other Observable Inputs (Level 2) [Member] | CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 142.6 | 135.6 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Significant Unobservable Inputs (Level 3) [Member] | CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 199.4 | 207.9 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 139.8 | 150.4 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 59.6 | 57.5 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | U.S. Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 82.5 | 91.7 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 82.5 | 91.7 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Non-U.S. Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 429.1 | 488 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 429.1 | 488 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Obligations of States and Political Subdivisions [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 509.8 | 535.9 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 509.8 | 535.9 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Financial [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 535.2 | 517.9 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 535.2 | 517.9 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Industrial [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 153.2 | 156.2 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 153.2 | 156.2 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Credit-Utility [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 151.4 | 131 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 151.4 | 131 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Agency [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 6.9 | 11.5 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 6.9 | 11.5 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMO/MBS-Non Agency [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 217.4 | 181.2 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 217.4 | 181.2 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 116.5 | 110.9 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 116.5 | 110.9 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | ABS [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 158.7 | 151.2 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 158.7 | 151.2 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Governments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 106.3 | 110.1 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 106.3 | 110.1 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign Denominated: Credit [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 16.6 | 21.9 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 16.6 | 21.9 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: ABS/CMBS [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 82 | 76.3 | |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 82 | 76.3 |
Fair Value, Measurements, Recurring [Member] | Fixed Maturities [Member] | Foreign denominated: CLO [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 430.3 | 463.9 | |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 427.6 | 457.6 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 2.1 | 5.6 |
Fair Value, Measurements, Recurring [Member] | Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0.6 | 0.7 |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 74.2 | 97.2 | |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 74.2 | 97.2 |
Fair Value, Measurements, Recurring [Member] | Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | 266.2 | 210.8 | |
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [5] | 257.4 | 203.6 |
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [6] | 8.8 | 7.2 |
Fair Value, Measurements, Recurring [Member] | Short-Term Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Fair Value | [7] | $ 0 | $ 0 |
[1] | Collateralized loan obligations (“CLO”). | ||
[2] | Collateralized mortgage obligations/mortgage-backed securities (“CMO/MBS”). | ||
[3] | Commercial mortgage-backed securities (“CMBS”). | ||
[4] | Asset-backed securities (“ABS”). | ||
[5] | Quoted prices in active markets for identical assets | ||
[6] | Significant other observable inputs | ||
[7] | Significant unobservable inputs |
Investments - Schedule of Recon
Investments - Schedule of Reconciliation of Beginning and Ending Balances for Investments Categorized as Level 3 (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items] | ||
Beginning balance | $ 0.7 | $ 0.9 |
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 | (0.1) | (0.2) |
Settlements | 0 | 0 |
Ending balance | 0.6 | 0.7 |
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 | 0.7 | 0.9 |
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 | (0.1) | (0.2) |
Settlements | 0 | 0 |
Ending balance | 0.6 | 0.7 |
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 |
Reserves for Losses and Loss 54
Reserves for Losses and Loss Adjustment Expenses - Reinsurance Recoverables (Detail) - USD ($) $ in Millions | 3 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | |||
Liability for Claims and Claims Adjustment Expense [Abstract] | |||||||
Net reserves beginning of the year | $ 2,133.3 | $ 2,137.1 | |||||
Losses and LAE incurred during current calendar year, net of reinsurance: | |||||||
Current accident year | 194.8 | 187.4 | |||||
Prior accident years | (3.2) | (3.7) | |||||
Losses and LAE incurred during calendar year, net of reinsurance | 191.6 | 183.7 | |||||
Current accident year | 24.8 | 19.8 | |||||
Prior accident years | 144.7 | 141 | |||||
Losses and LAE payments made during current calendar year, net of reinsurance: | 169.5 | 160.8 | |||||
Change in participation interest | [1] | (42.3) | (1.2) | ||||
Foreign exchange adjustments | (3.6) | (6) | |||||
Net reserves - end of period | 2,109.5 | 2,152.8 | |||||
Reinsurance recoverables on unpaid losses and LAE, end of period | $ (1,032) | $ (882.3) | |||||
Reserves for losses and loss adjustment expenses | 3,141.5 | $ 3,123.6 | [2] | 3,035.1 | |||
Net reserves - end of period | $ 2,133.3 | $ 2,137.1 | $ 2,109.5 | $ 2,133.3 | $ 2,152.8 | ||
[1] | Amount represents decreases in reserves due to change in syndicate participation | ||||||
[2] | Derived from audited consolidated financial statements. |
Reserves for Losses and Loss 55
Reserves for Losses and Loss Adjustment Expenses - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule Of Reserves For Losses And Loss Adjustment Expenses [Line Items] | ||
Liability for unpaid claims and claims adjustment expense, incurred claims, prior years | $ (3.2) | $ (3.7) |
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 | 2.9 | 5.7 |
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 | 0.9 | 2.5 |
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 | 0.8 | 0.3 |
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 | $ 1.4 | 0.1 |
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 | $ 4.7 |
Disclosures about Fair Value 56
Disclosures about Fair Value of Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Premiums receivable | $ 448.4 | $ 404.5 | [1] |
Reinsurance recoverables | 1,151.1 | 1,121.1 | [1] |
Premiums receivable, allowance for doubtful accounts | 2.4 | 3.5 | |
Over 90 Days [Member] | |||
Financial Instruments Owned and Pledged as Collateral [Line Items] | |||
Premiums receivable | 13.6 | 10 | |
Reinsurance recoverables | 11.4 | 7.1 | |
Reinsurance recoverables, allowance for doubtful accounts | 2 | 2.2 | |
Premiums receivables, secured by collateral | 0.2 | 0.2 | |
Reinsurance recoverables, secured by collateral | $ 0.6 | $ 0.7 | |
[1] | Derived from audited consolidated financial statements. |
Disclosures about Fair Value 57
Disclosures about Fair Value of Financial Instruments - Summary of Company's Financial Instruments Whose Carrying Amount Did Not Equal Fair Value (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | $ 368.5 | $ 367.2 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 352 | 361.6 |
Junior Subordinated Debentures [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 172.7 | 172.7 |
Junior Subordinated Debentures [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 158.4 | 166.5 |
Senior Unsecured Fixed Rate Notes [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 139.4 | 139.3 |
Senior Unsecured Fixed Rate Notes [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 141.8 | 141.8 |
Other Indebtedness [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 55.8 | 54.6 |
Other Indebtedness [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 51.2 | 52.7 |
Other Indebtedness [Member] | Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | 0.6 | 0.6 |
Other Indebtedness [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Financial Instruments | $ 0.6 | $ 0.6 |
Shareholders Equity - Additiona
Shareholders Equity - Additional Information (Detail) - USD ($) | May. 03, 2016 | Mar. 15, 2016 | Feb. 16, 2016 | Mar. 19, 2015 | Feb. 17, 2015 | Mar. 31, 2016 | Mar. 31, 2015 | Nov. 05, 2013 |
Class Of Stock [Line Items] | ||||||||
Dividend declared per common share | $ 0.22 | $ 0.20 | $ 0.22 | $ 0.20 | ||||
Dividends declaration date | Feb. 16, 2016 | Feb. 17, 2015 | ||||||
Dividends payable date | Mar. 16, 2015 | |||||||
Dividend payable, date of record | Mar. 1, 2016 | Mar. 2, 2015 | Mar. 2, 2015 | |||||
Cash dividends paid - common shares, total | $ 6,200,000 | $ 5,700,000 | ||||||
Stock dividend declared | 10.00% | |||||||
Additional stock issued as dividend | 2,554,506 | |||||||
Common shares repurchased on open market | 343,652 | |||||||
2013 Repurchase Authorization [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Total number of shares authorized for purchase, Value | $ 44,100,000 | $ 150,000,000 | ||||||
Common shares repurchased on open market | 343,652 | |||||||
Common shares repurchased on open market, total cost | $ 19,000,000 | |||||||
Subsequent Event [Member] | ||||||||
Class Of Stock [Line Items] | ||||||||
Dividend declared per common share | $ 0.22 | |||||||
Dividends declaration date | May 3, 2016 | |||||||
Dividends payable date | Jun. 17, 2016 | |||||||
Dividend payable, date of record | Jun. 1, 2016 | |||||||
Stock dividend declared | 10.00% | |||||||
Additional stock issued as dividend | 2,700,000 |
Shareholders Equity - Schedule
Shareholders Equity - Schedule of Repurchase of Shares (Detail) $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($)$ / sharesshares | |
Equity Class Of Treasury Stock [Line Items] | |
Common shares repurchased on open market | shares | 343,652 |
Average Price of Shares Repurchased | $ / shares | $ 55.32 |
Total Cost (in millions) | $ | $ 19 |
10b5-1 Trading Plan Initiated In 12/15/2014 [Member] | |
Equity Class Of Treasury Stock [Line Items] | |
Date Trading Plan Initiated | Dec. 16, 2015 |
Trading Plan Purchase Period Start Date | Jan. 4, 2016 |
Common shares repurchased on open market | shares | 266,538 |
Average Price of Shares Repurchased | $ / shares | $ 55.59 |
Total Cost (in millions) | $ | $ 14.8 |
Repurchase Authorization Year | 2,013 |
Trading Plan Purchase Period End Date | Feb. 11, 2016 |
10b5-1 Trading Plan Initiated In 03/16/2015 [Member] | |
Equity Class Of Treasury Stock [Line Items] | |
Date Trading Plan Initiated | Mar. 16, 2016 |
Trading Plan Purchase Period Start Date | Mar. 16, 2016 |
Common shares repurchased on open market | shares | 12,650 |
Average Price of Shares Repurchased | $ / shares | $ 55.76 |
Total Cost (in millions) | $ | $ 0.7 |
Repurchase Authorization Year | 2,013 |
Trading Plan Purchase Period End Date | Mar. 28, 2016 |
Open Market [Member] | |
Equity Class Of Treasury Stock [Line Items] | |
Trading Plan Purchase Period Start Date | Jan. 1, 2016 |
Common shares repurchased on open market | shares | 64,464 |
Average Price of Shares Repurchased | $ / shares | $ 54.14 |
Total Cost (in millions) | $ | $ 3.5 |
Repurchase Authorization Year | 2,013 |
Trading Plan Purchase Period End Date | Mar. 31, 2016 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) - Changes in Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance | $ 11.5 | [1] | $ 108.1 |
Other comprehensive (loss) income before reclassifications | 32.5 | (24.6) | |
Amounts reclassified from accumulated other comprehensive (loss) income | (3.7) | 2.6 | |
Other comprehensive income (loss), net of tax | 28.8 | (22) | |
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance | 40.3 | 86.1 | |
Foreign Currency Translation Adjustments | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance | (21.6) | (15.6) | |
Other comprehensive (loss) income before reclassifications | 1.5 | (3.1) | |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | |
Other comprehensive income (loss), net of tax | 1.5 | (3.1) | |
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance | (20.1) | (18.7) | |
Unrealized Holding Gains on Securities | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance | 40 | 130.7 | |
Other comprehensive (loss) income before reclassifications | 31 | (21.5) | |
Amounts reclassified from accumulated other comprehensive (loss) income | (3.7) | 2.6 | |
Other comprehensive income (loss), net of tax | 27.3 | (18.9) | |
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance | 67.3 | 111.8 | |
Defined Benefit Pension Plans | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Beginning Balance | (6.9) | (7) | |
Other comprehensive (loss) income before reclassifications | 0 | 0 | |
Amounts reclassified from accumulated other comprehensive (loss) income | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss) Net Of Tax, Ending Balance | $ (6.9) | $ (7) | |
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) - Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Unrealized gains and losses on securities: | ||
Net realized investment (gain) loss | $ (7.8) | $ 2.5 |
Provision for income taxes | 4.1 | 0.1 |
Net of taxes | (3.7) | 2.6 |
Unrealized Holding Gains on Securities | ||
Unrealized gains and losses on securities: | ||
Net of taxes | (3.7) | 2.6 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Holding Gains on Securities | ||
Unrealized gains and losses on securities: | ||
Net realized investment (gain) loss | (7.8) | 2.5 |
Provision for income taxes | 4.1 | 0.1 |
Net of taxes | $ (3.7) | $ 2.6 |
Net Income Per Common Share - N
Net Income Per Common Share - Net Income Per Common Share on Basic and Diluted Basis (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 27.7 | $ 58.8 |
Weighted average common shares outstanding - basic | 27,710,955 | 28,129,692 |
Effect of dilutive securities: | ||
Equity compensation awards | 593,616 | 547,687 |
Weighted average common shares outstanding - diluted | 28,304,571 | 28,677,379 |
Net income per common share - basic | $ 1 | $ 2.09 |
Net income per common share - diluted | $ 0.98 | $ 2.05 |
Net Income Per Common Share - A
Net Income Per Common Share - Additional Information (Detail) - shares | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | [1] | |
Earnings Per Share [Abstract] | ||||
Treasury shares, shares | 9,525,296 | 8,959,543 | 9,181,644 | |
Antidilutive securities excluded from computation of diluted net income per share, shares | 0 | 1,760 | ||
[1] | Derived from audited consolidated financial statements. |
Supplemental Cash Flow Inform64
Supplemental Cash Flow Information - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes Paid Net [Abstract] | ||
Income taxes paid | $ 0.3 | $ 0.5 |
Income taxes recovered | $ 0.3 | $ 11.6 |
Supplemental Cash Flow Inform65
Supplemental Cash Flow Information - Schedule of Interest Paid (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 4.9 | $ 4.8 |
Senior Unsecured Fixed Rate Notes [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 2.3 | 2.3 |
Junior Subordinated Debentures [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | 1.8 | 1.7 |
Other Indebtedness [Member] | ||
Supplemental Cash Flow [Line Items] | ||
Total interest paid | $ 0.8 | $ 0.8 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 5 years | 5 years |
Share-based Compensation - Fair
Share-based Compensation - Fair Value Assumptions (Detail) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free rate of return | 1.37% | 1.47% |
Expected dividend yields | 1.62% | 1.63% |
Expected award life (years) | 4 years 7 months 10 days | 4 years 8 months 16 days |
Expected volatility | 19.64% | 22.09% |
Share-Based Compensation - 2014
Share-Based Compensation - 2014 Long-Term Incentive Plan - Additional Information (Detail) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | ||
May. 31, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Nov. 30, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 5 years | 5 years | ||
Restricted Share [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 1.7 | $ 1.5 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | $ 22.9 | |||
Restricted Share [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 2 years | |||
Restricted Share [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 4 years | |||
Stock-Settled SARs Activity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 1.4 | 0.6 | ||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | $ 12.5 | |||
Stock-Settled SARs Activity [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 1 year | |||
Stock-Settled SARs Activity [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 4 years | |||
Cash-Settled SARs Activity [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, compensation expense | $ 2.7 | |||
Employee service share-based compensation, unrecognized compensation costs on non-vested awards | $ 1.1 | |||
Share-based compensation arrangement by share-based payment award, compensation expense recouped | $ 0.3 | |||
Cash-Settled SARs Activity [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 1 year | |||
Cash-Settled SARs Activity [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, award vesting period, years | 4 years | |||
2007 Plan [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, number of shares available for grant | 1,460,000 | |||
2014 Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement by share-based payment award, additional number of shares authorized | 2,800,000 | |||
Count of restricted shares, settle in common shares | 2.75 |
Share-based Compensation - Summ
Share-based Compensation - Summary of Restricted Share Activity (Detail) - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at January 1, 2016 | shares | 475,307 |
Granted, Shares | shares | 210,463 |
Vested and issued, Shares | shares | (63,773) |
Expired or forfeited, Shares | shares | (5,542) |
Shares, Outstanding at March 31, 2016 | shares | 616,455 |
Weighted-Average Grant Date Fair Value, Outstanding at January 1, 2016 | $ / shares | $ 40.46 |
Granted, Weighted-Average Grant Date Fair Value | $ / shares | 55.10 |
Vested and issued, Weighted-Average Grant Date Fair Value | $ / shares | 35.35 |
Expired or forfeited, Weighted-Average Grant Date Fair Value | $ / shares | 46.90 |
Weighted-Average Grant Date Fair Value, Outstanding at March 31, 2016 | $ / shares | $ 45.93 |
Share-based Compensation - Su70
Share-based Compensation - Summary of Stock-Settled SARs Activity (Detail) - Stock-Settled SARs Activity [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at January 1, 2016 | shares | 1,318,101 |
Granted, Shares | shares | 542 |
Converted from cash-settled SARs | shares | 864,035 |
Exercised, Shares | shares | (26,398) |
Expired or forfeited, Shares | shares | (72,349) |
Shares, Outstanding at March 31, 2016 | shares | 2,083,931 |
Weighted-Average Exercise Price, Outstanding at January 1, 2016 | $ / shares | $ 32.50 |
Granted, Weighted-Average Exercise Price | $ / shares | 40.38 |
Converted from cash-settled SARs | $ / shares | 45.33 |
Exercised, Weighted-Average Exercise Price | $ / shares | 26.10 |
Expired or forfeited, Weighted-Average Exercise Price | $ / shares | 47.88 |
Weighted-Average Exercise Price, Outstanding at March 31, 2016 | $ / shares | $ 37.37 |
Share-based Compensation - Su71
Share-based Compensation - Summary of Cash-Settled SARs Activity (Detail) - Cash-Settled SARs Activity [Member] | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Outstanding at January 1, 2016 | shares | 2,134,121 |
Granted, Shares | shares | 540 |
Converted to stock-settled SARs | shares | (864,035) |
Exercised, Shares | shares | (113,663) |
Expired or forfeited, Shares | shares | (58,092) |
Shares, Outstanding at March 31, 2016 | shares | 1,098,871 |
Weighted-Average Exercise Price, Outstanding at January 1, 2016 | $ / shares | $ 39.22 |
Granted, Weighted-Average Exercise Price | $ / shares | 40.38 |
Converted to stock-settled SARs | $ / shares | 45.33 |
Exercised, Weighted-Average Exercise Price | $ / shares | 30.15 |
Expired or forfeited, Weighted-Average Exercise Price | $ / shares | 44.23 |
Weighted-Average Exercise Price, Outstanding at March 31, 2016 | $ / shares | $ 35.10 |
Underwriting, Acquisition and72
Underwriting, Acquisition and Insurance Expenses - Underwriting, Acquisition and Insurance Expenses (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | ||
Commissions | $ 57.1 | $ 58.7 |
General expenses | 70.6 | 72.9 |
Premium taxes, boards and bureaus | 6.6 | 0.6 |
Underwriting, acquisition and insurance expenses, total | 134.3 | 132.2 |
Net deferral of policy acquisition costs | (1.7) | (2.6) |
Total underwriting, acquisition and insurance expenses | $ 132.6 | $ 129.6 |
Underwriting, Acquisition and73
Underwriting, Acquisition and Insurance Expenses - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Underwriting Acquisition And Insurance Expenses [Abstract] | ||
Share-based payments expense | $ 3 | $ 5.2 |
Income Taxes - Income Tax Provi
Income Taxes - Income Tax Provision (Benefit) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Current tax provision (benefit) | $ 1.5 | $ (0.2) |
Future tax deductions | 2.9 | 5.5 |
Valuation allowance change | 1 | (1.7) |
Income tax provision | $ 5.4 | $ 3.6 |
Income Taxes - Schedule of Pre-
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 33.1 | $ 62.4 | |
Bermuda [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 22 | $ 25.7 | |
Effective Tax Rate | 0.00% | 0.00% | |
United States [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 23.3 | $ 28.5 | |
Effective Tax Rate | 23.70% | 20.20% | |
United Kingdom [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ (12.3) | $ 10.1 | |
Effective Tax Rate | 1.50% | (21.90%) | |
Belgium [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0 | [1] | $ (0.2) |
Effective Tax Rate | 0.00% | (4.80%) | |
Brazil [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ (0.1) | $ (1.9) | |
Effective Tax Rate | 0.00% | 0.00% | |
United Arab Emirates [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0 | [1] | $ 0.1 |
Effective Tax Rate | 0.00% | 0.00% | |
Ireland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0 | [1] | $ (0.2) |
Effective Tax Rate | 0.00% | 0.00% | |
Malta [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0.2 | $ 0.3 | |
Effective Tax Rate | 0.00% | 0.00% | |
Switzerland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0 | [1] | $ 0 |
Effective Tax Rate | 19.80% | 21.00% | |
[1] | Pre-tax income for the respective year was less than $0.1 million. |
Income Taxes - Schedule of Pr76
Income Taxes - Schedule of Pre-Tax Income (Loss) and Effective Income Tax Rates (Parenthetical) (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 33.1 | $ 62.4 | |
Belgium [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0 | [1] | (0.2) |
United Arab Emirates [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0 | [1] | 0.1 |
Ireland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0 | [1] | (0.2) |
Switzerland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0 | [1] | 0 |
Maximum [Member] | Belgium [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0.1 | ||
Maximum [Member] | United Arab Emirates [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0.1 | ||
Maximum [Member] | Ireland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | 0.1 | ||
Maximum [Member] | Switzerland [Member] | |||
Income Tax Examination [Line Items] | |||
Pre-Tax Income (Loss) | $ 0.1 | $ 0.1 | |
[1] | Pre-tax income for the respective year was less than $0.1 million. |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Difference Between Provision for Income Taxes and Expected Tax Provision at Weighted Average Tax Rate (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Income tax provision at expected rate | $ 5.8 | $ 11.2 |
Tax-exempt interest | (0.9) | (0.9) |
Dividends received deduction | (0.5) | (0.6) |
Valuation allowance change | 1 | (1.7) |
Other permanent adjustments, net | 0.2 | 0.2 |
Adjustment for annualized rate | (1.5) | (0.5) |
United States state tax benefit | 0 | (2.5) |
Other foreign adjustments | 0 | (0.3) |
Prior period adjustments to deferred | 0 | 2.2 |
Prior year foreign taxes recovered | 0 | (1.2) |
Deferred tax rate reduction | (0.3) | 0 |
Foreign exchange adjustments | 1.5 | (2.4) |
Foreign withholding taxes | 0.1 | 0.1 |
Income tax provision | 5.4 | 3.6 |
Income tax benefit - Foreign | (0.2) | (2.2) |
Income tax provision - United States, Federal | 5.5 | 9.5 |
Income tax benefit - United States, State | 0 | (3.8) |
Foreign withholding tax - United States | $ 0.1 | $ 0.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Income Taxes Disclosure [Line Items] | ||
Net operating losses carryback period | 2 years | |
Capital losses carryback period | 3 years | |
Total net deferred tax liabilities | $ 7,700,000 | |
Net operating loss carryforward | 16,800,000 | |
Loss carryforwards per year | 2,800,000 | |
Valuation allowance | 23,800,000 | |
Unrecognized tax benefits | 0 | $ 0 |
December 31, 2025 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards, amounts expiring if not utilized | 15,300,000 | |
December 31, 2027 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards, amounts expiring if not utilized | 1,500,000 | |
Brazil [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Valuation allowance | 7,000,000 | |
Valuation Allowance Increased | 900,000 | |
Malta [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Valuation allowance | 1,900,000 | |
Valuation Allowance Increased | 100,000 | |
PXRE Reinsurance Company [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Valuation allowance | 14,900,000 | |
ARIS [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Net operating loss carryforward | 1,000,000 | |
ARIS [Member] | December 31, 2027 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards, amounts expiring if not utilized | 200,000 | |
ARIS [Member] | December 31, 2028 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards, amounts expiring if not utilized | 400,000 | |
ARIS [Member] | December 31, 2029 [Member] | ||
Income Taxes Disclosure [Line Items] | ||
Loss carryforwards, amounts expiring if not utilized | $ 400,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Commitments And Contingencies [Line Items] | |
Contractual commitments related to its limited partnership investments | $ 88.6 |
Maximum [Member] | |
Commitments And Contingencies [Line Items] | |
Contractual commitments period | 13 years |
Segment Information - Additiona
Segment Information - Additional Information (Detail) $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)Segment | Dec. 31, 2015USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | Segment | 4 | |
Assets associated with trade capital providers | $ | $ 478.1 | $ 377.1 |
Segment Information - Revenue a
Segment Information - Revenue and Income (Loss) Before Income Taxes for Each Segment (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Segment Reporting Information [Line Items] | ||
Earned premiums | $ 344.9 | $ 334.6 |
Net investment income | 21.2 | 25.7 |
Fee and other income | 6.8 | 4.6 |
Net realized investment and other (losses) gains | (2.8) | 11.1 |
Total revenue | 370.1 | 376 |
Income (loss) before income taxes | 33.1 | 62.4 |
Corporate and Other [Member] | ||
Segment Reporting Information [Line Items] | ||
Net investment income | (0.9) | 5.6 |
Income (loss) before income taxes | (15.3) | 1.5 |
Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 51.2 | 49.8 |
Excess and Surplus Lines [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 119.8 | 111.9 |
Net investment income | 8.7 | 8 |
Excess and Surplus Lines [Member] | Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 21.2 | 21.4 |
Commercial Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 86.8 | 83.8 |
Net investment income | 5.1 | 5 |
Commercial Specialty [Member] | Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 13.7 | 7.1 |
International Specialty [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 37.8 | 36.2 |
Net investment income | 3.3 | 2.9 |
International Specialty [Member] | Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 10.3 | 8.9 |
Syndicate 1200 [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 100.5 | 103 |
Net investment income | 2.8 | 2.2 |
Syndicate 1200 [Member] | Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | 7.4 | 11.2 |
Run Off Lines [Member] | ||
Segment Reporting Information [Line Items] | ||
Earned premiums | 0 | (0.3) |
Net investment income | 2.2 | 2 |
Run Off Lines [Member] | Operating Segments [Members] | ||
Segment Reporting Information [Line Items] | ||
Income (loss) before income taxes | $ (1.4) | $ 1.2 |
Segment Information - Schedule
Segment Information - Schedule of Earned Premiums by Geographic Location (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | $ 344.9 | $ 334.6 |
Bermuda [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 28.1 | 23.9 |
Brazil [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 9.2 | 12.5 |
Malta [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 0.5 | 0.5 |
United Kingdom [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | 100.6 | 101.9 |
United States [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total earned premiums | $ 206.5 | $ 195.8 |
Segment Information - Identifia
Segment Information - Identifiable Assets (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | $ 6,819.7 | $ 6,625.6 | [1] |
Excess and Surplus Lines [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 2,258.5 | 2,219 | |
Commercial Specialty [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 1,575.9 | 1,589.7 | |
International Specialty [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 832.5 | 761.7 | |
Syndicate 1200 [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 1,489.4 | 1,398 | |
Run Off Lines [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | 516.3 | 524.2 | |
Corporate and Other [Member] | |||
Segment Reporting, Asset Reconciling Item [Line Items] | |||
Identifiable assets | $ 147.1 | $ 133 | |
[1] | Derived from audited consolidated financial statements. |
Senior Unsecured Fixed Rate N84
Senior Unsecured Fixed Rate Notes - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2012 | Dec. 31, 2015 | |
Schedule Of Equity Method Investments [Line Items] | |||
Principal amount of senior note | $ 143,800,000 | $ 143,800,000 | |
Senior Unsecured Fixed Rate Notes [Member] | |||
Schedule Of Equity Method Investments [Line Items] | |||
Principal amount of senior note | $ 143,750,000 | ||
Debt instrument interest rate stated percentage | 6.50% | ||
Debt instrument maturity date | Sep. 15, 2042 | ||
Initial maturity date | Sep. 15, 2017 | ||
Debt Instrument, Redemption Price, Percentage | 100.00% |
Senior Unsecured Fixed Rate N85
Senior Unsecured Fixed Rate Notes - Schedule Of Unamortized Debt Issuance Costs Deducted From Carrying Value Of Debt Liability (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |||
Principal | $ 143.8 | $ 143.8 | |
Less: unamortized debt issuance costs | (4.4) | (4.5) | |
Senior unsecured fixed rate notes, less unamortized debt issuance costs | $ 139.4 | $ 139.3 | [1] |
[1] | Derived from audited consolidated financial statements. |
Senior Unsecured Fixed Rate N86
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | ||
Assets | ||||||
Investments | $ 4,127.1 | $ 4,115.7 | [1] | |||
Cash | 122.9 | 121.7 | [1] | $ 89.1 | $ 81 | |
Accrued investment income | 21.3 | 21.6 | [1] | |||
Premiums receivable | 448.4 | 404.5 | [1] | |||
Reinsurance recoverables | 1,151.1 | 1,121.1 | [1] | |||
Goodwill and other intangible assets, net | 224.1 | 225.5 | ||||
Current income taxes receivable, net | 9.3 | 11.6 | [1] | |||
Deferred acquisition costs, net | 136.4 | 132.4 | [1] | |||
Ceded unearned premiums | 308 | 250.8 | [1] | |||
Other assets | 271.1 | 220.7 | [1] | |||
Intercompany note receivable | 0 | 0 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total assets | 6,819.7 | 6,625.6 | [1] | |||
Liabilities and Shareholders' Equity | ||||||
Reserves for losses and loss adjustment expenses | 3,141.5 | 3,123.6 | [1] | 3,035.1 | ||
Unearned premiums | 907.8 | 886.7 | [1] | |||
Funds held and ceded reinsurance payable, net | 497.8 | 390 | ||||
Long-term debt | 368.5 | 367.2 | ||||
Deferred tax liabilities, net | 31.5 | 23.6 | [1] | |||
Accrued underwriting expenses and other liabilities | 167.2 | 166.4 | ||||
Due to (from) affiliates | 0 | 0 | ||||
Total liabilities | 5,114.3 | 4,957.5 | [1] | |||
Total shareholders' equity | 1,705.4 | 1,668.1 | [1] | |||
Total liabilities and shareholders' equity | 6,819.7 | 6,625.6 | [1] | |||
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ||||||
Assets | ||||||
Investments | (11.5) | 6.2 | ||||
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 | 12 | 8.2 | ||||
Intercompany note receivable | 0 | 0 | ||||
Investments in subsidiaries | 1,762.2 | 1,715.9 | ||||
Total assets | 1,762.7 | 1,730.3 | ||||
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 | 28.3 | 28.4 | ||||
Deferred tax liabilities, net | 0 | 0 | ||||
Accrued underwriting expenses and other liabilities | 15 | 16.3 | ||||
Due to (from) affiliates | 14 | 17.5 | ||||
Total liabilities | 57.3 | 62.2 | ||||
Total shareholders' equity | 1,705.4 | 1,668.1 | ||||
Total liabilities and shareholders' equity | 1,762.7 | 1,730.3 | ||||
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | ||||||
Assets | ||||||
Investments | 2,782.9 | 2,761 | ||||
Cash | 74.3 | 88.8 | 54.8 | 49.3 | ||
Accrued investment income | 15.8 | 16.4 | ||||
Premiums receivable | 178.3 | 166.4 | ||||
Reinsurance recoverables | 1,226.3 | 1,212.2 | ||||
Goodwill and other intangible assets, net | 129.1 | 129.8 | ||||
Current income taxes receivable, net | 6.2 | 4.7 | ||||
Deferred acquisition costs, net | 56.3 | 58.2 | ||||
Ceded unearned premiums | 146.4 | 125.8 | ||||
Other assets | 161.4 | 151.7 | ||||
Intercompany note receivable | 50.3 | 49.8 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Total assets | 4,827.3 | 4,764.8 | ||||
Liabilities and Shareholders' Equity | ||||||
Reserves for losses and loss adjustment expenses | 2,199.9 | 2,194.1 | ||||
Unearned premiums | 504.9 | 501.5 | ||||
Funds held and ceded reinsurance payable, net | 755 | 702.6 | ||||
Long-term debt | 284.3 | 284.2 | ||||
Deferred tax liabilities, net | 22.5 | 11.9 | ||||
Accrued underwriting expenses and other liabilities | 81.5 | 95.4 | ||||
Due to (from) affiliates | (1.4) | 2.3 | ||||
Total liabilities | 3,846.7 | 3,792 | ||||
Total shareholders' equity | 980.6 | 972.8 | ||||
Total liabilities and shareholders' equity | 4,827.3 | 4,764.8 | ||||
Other Subsidiaries and Eliminations [Member] | ||||||
Assets | ||||||
Investments | [2] | 1,355.7 | 1,348.5 | |||
Cash | [2] | 48.6 | 32.9 | 34.3 | 31.7 | |
Accrued investment income | [2] | 5.5 | 5.2 | |||
Premiums receivable | [2] | 270.1 | 238.1 | |||
Reinsurance recoverables | [2] | (75.2) | (91.1) | |||
Goodwill and other intangible assets, net | [2] | 95 | 95.7 | |||
Current income taxes receivable, net | [2] | 3.1 | 6.9 | |||
Deferred acquisition costs, net | [2] | 80.1 | 74.2 | |||
Ceded unearned premiums | [2] | 161.6 | 125 | |||
Other assets | [2] | 97.7 | 60.8 | |||
Intercompany note receivable | [2] | (50.3) | (49.8) | |||
Investments in subsidiaries | [2] | 0 | 0 | |||
Total assets | [2] | 1,991.9 | 1,846.4 | |||
Liabilities and Shareholders' Equity | ||||||
Reserves for losses and loss adjustment expenses | [2] | 941.6 | 929.5 | |||
Unearned premiums | [2] | 402.9 | 385.2 | |||
Funds held and ceded reinsurance payable, net | [2] | (257.2) | (312.6) | |||
Long-term debt | [2] | 55.9 | 54.6 | |||
Deferred tax liabilities, net | [2] | 9 | 11.7 | |||
Accrued underwriting expenses and other liabilities | [2] | 70.7 | 54.7 | |||
Due to (from) affiliates | [2] | 1.4 | (2.3) | |||
Total liabilities | [2] | 1,224.3 | 1,120.8 | |||
Total shareholders' equity | [2] | 767.6 | 725.6 | |||
Total liabilities and shareholders' equity | [2] | 1,991.9 | 1,846.4 | |||
Consolidating Adjustments [Member] | ||||||
Assets | ||||||
Investments | [3] | 0 | 0 | |||
Cash | [3] | 0 | 0 | $ 0 | $ 0 | |
Accrued investment income | [3] | 0 | 0 | |||
Premiums receivable | [3] | 0 | 0 | |||
Reinsurance recoverables | [3] | 0 | 0 | |||
Goodwill and other intangible assets, net | [3] | 0 | 0 | |||
Current income taxes receivable, net | [3] | 0 | 0 | |||
Deferred acquisition costs, net | [3] | 0 | 0 | |||
Ceded unearned premiums | [3] | 0 | 0 | |||
Other assets | [3] | 0 | 0 | |||
Intercompany note receivable | [3] | 0 | 0 | |||
Investments in subsidiaries | [3] | (1,762.2) | (1,715.9) | |||
Total assets | [3] | (1,762.2) | (1,715.9) | |||
Liabilities and Shareholders' Equity | ||||||
Reserves for losses and loss adjustment expenses | [3] | 0 | 0 | |||
Unearned premiums | [3] | 0 | 0 | |||
Funds held and ceded reinsurance payable, net | [3] | 0 | 0 | |||
Long-term debt | [3] | 0 | 0 | |||
Deferred tax liabilities, net | [3] | 0 | 0 | |||
Accrued underwriting expenses and other liabilities | [3] | 0 | 0 | |||
Due to (from) affiliates | [3] | (14) | (17.5) | |||
Total liabilities | [3] | (14) | (17.5) | |||
Total shareholders' equity | [3] | (1,748.2) | (1,698.4) | |||
Total liabilities and shareholders' equity | [3] | $ (1,762.2) | $ (1,715.9) | |||
[1] | Derived from audited consolidated financial statements. | |||||
[2] | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. | |||||
[3] | Includes all Argo Group parent company eliminations. |
Senior Unsecured Fixed Rate N87
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Income (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Premiums and other revenue: | |||
Earned premiums | $ 344.9 | $ 334.6 | |
Net investment income (expense) | 21.2 | 25.7 | |
Fee and other income | 6.8 | 4.6 | |
Net realized investment and other (losses) gains | (2.8) | 11.1 | |
Total revenue | 370.1 | 376 | |
Expenses: | |||
Losses and loss adjustment expenses | 191.6 | 183.7 | |
Underwriting, acquisition and insurance expenses | 132.6 | 129.6 | |
Interest expense | 4.8 | 4.9 | |
Fee and other expense | 6.5 | 5 | |
Foreign currency exchange loss (gain) | 1.5 | (9.6) | |
Total expenses | 337 | 313.6 | |
Income before income taxes | 33.1 | 62.4 | |
Provision for income taxes | 5.4 | 3.6 | |
Net income before equity in earnings of subsidiaries | 27.7 | 58.8 | |
Equity in undistributed earnings of subsidiaries | 0 | 0 | |
Net income | 27.7 | 58.8 | |
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | |||
Premiums and other revenue: | |||
Earned premiums | 0 | 0 | |
Net investment income (expense) | (0.6) | (0.2) | |
Fee and other income | 0 | 0 | |
Net realized investment and other (losses) gains | 0 | 0 | |
Total revenue | (0.6) | (0.2) | |
Expenses: | |||
Losses and loss adjustment expenses | 0 | 0 | |
Underwriting, acquisition and insurance expenses | 5.2 | 4.7 | |
Interest expense | 0.3 | 0.5 | |
Fee and other expense | 0 | 0 | |
Foreign currency exchange loss (gain) | 0 | 0 | |
Total expenses | 5.5 | 5.2 | |
Income before income taxes | (6.1) | (5.4) | |
Provision for income taxes | 0 | 0 | |
Net income before equity in earnings of subsidiaries | (6.1) | (5.4) | |
Equity in undistributed earnings of subsidiaries | 33.8 | 64.2 | |
Net income | 27.7 | 58.8 | |
Argo Group US, Inc. and Subsidiaries (Subsidiary Issuer) [Member] | |||
Premiums and other revenue: | |||
Earned premiums | 119.9 | 135.1 | |
Net investment income (expense) | 12.6 | 19.4 | |
Fee and other income | 5.2 | 3.6 | |
Net realized investment and other (losses) gains | 11.2 | 11 | |
Total revenue | 148.9 | 169.1 | |
Expenses: | |||
Losses and loss adjustment expenses | 68.3 | 80.2 | |
Underwriting, acquisition and insurance expenses | 47.6 | 51.9 | |
Interest expense | 3.9 | 3.8 | |
Fee and other expense | 6.2 | 4.4 | |
Foreign currency exchange loss (gain) | 0 | 0.8 | |
Total expenses | 126 | 141.1 | |
Income before income taxes | 22.9 | 28 | |
Provision for income taxes | 5.4 | 5.8 | |
Net income before equity in earnings of subsidiaries | 17.5 | 22.2 | |
Equity in undistributed earnings of subsidiaries | 0 | 0 | |
Net income | 17.5 | 22.2 | |
Other Subsidiaries and Eliminations [Member] | |||
Premiums and other revenue: | |||
Earned premiums | [1] | 225 | 199.5 |
Net investment income (expense) | [1] | 9.2 | 6.5 |
Fee and other income | [1] | 1.6 | 1 |
Net realized investment and other (losses) gains | [1] | (14) | 0.1 |
Total revenue | [1] | 221.8 | 207.1 |
Expenses: | |||
Losses and loss adjustment expenses | [1] | 123.3 | 103.5 |
Underwriting, acquisition and insurance expenses | [1] | 79.8 | 73 |
Interest expense | [1] | 0.6 | 0.6 |
Fee and other expense | [1] | 0.3 | 0.6 |
Foreign currency exchange loss (gain) | [1] | 1.5 | (10.4) |
Total expenses | [1] | 205.5 | 167.3 |
Income before income taxes | [1] | 16.3 | 39.8 |
Provision for income taxes | [1] | 0 | (2.2) |
Net income before equity in earnings of subsidiaries | [1] | 16.3 | 42 |
Equity in undistributed earnings of subsidiaries | [1] | 0 | 0 |
Net income | [1] | 16.3 | 42 |
Consolidating Adjustments [Member] | |||
Premiums and other revenue: | |||
Earned premiums | [2] | 0 | 0 |
Net investment income (expense) | [2] | 0 | 0 |
Fee and other income | [2] | 0 | 0 |
Net realized investment and other (losses) gains | [2] | 0 | 0 |
Total revenue | [2] | 0 | 0 |
Expenses: | |||
Losses and loss adjustment expenses | [2] | 0 | 0 |
Underwriting, acquisition and insurance expenses | [2] | 0 | 0 |
Interest expense | [2] | 0 | 0 |
Fee and other expense | [2] | 0 | 0 |
Foreign currency exchange loss (gain) | [2] | 0 | 0 |
Total expenses | [2] | 0 | 0 |
Income before income taxes | [2] | 0 | 0 |
Provision for income taxes | [2] | 0 | 0 |
Net income before equity in earnings of subsidiaries | [2] | 0 | 0 |
Equity in undistributed earnings of subsidiaries | [2] | (33.8) | (64.2) |
Net income | [2] | $ (33.8) | $ (64.2) |
[1] | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. | ||
[2] | Includes all Argo Group parent company eliminations. |
Senior Unsecured Fixed Rate N88
Senior Unsecured Fixed Rate Notes - Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | |||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash flows (used by) from operating activities | $ 51.2 | $ 27.5 | ||
Cash flows from investing activities: | ||||
Proceeds from sales of investments | 380.7 | 423 | ||
Maturities and mandatory calls of fixed maturity investments | 133.2 | 142 | ||
Purchases of investments | (458.6) | (557.2) | ||
Change in short-term investments and foreign regulatory deposits | (55.9) | 4.8 | ||
Settlements of foreign currency exchange forward contracts | (3.9) | (2.2) | ||
Purchases of fixed assets | (6.8) | (17.8) | ||
Purchases of fixed assets and other, net | (21) | (8.3) | ||
Cash (used) provided by investing activities | (25.5) | 2.1 | ||
Cash flows from financing activities: | ||||
Amortization of debt issuance costs | 0.1 | 0.1 | ||
Activity under stock incentive plans | 0.3 | 0.9 | ||
Repurchase of Company's common shares | (19) | (17) | ||
Excess tax expense from share-based payment arrangements | 0.1 | 0 | ||
Payment of cash dividends to common shareholders | (6.2) | (5.7) | ||
Cash used by financing activities | (24.7) | (21.7) | ||
Effect of exchange rate changes on cash | 0.2 | 0.2 | ||
Change in cash | 1.2 | 8.1 | ||
Cash, beginning of period | 121.7 | [1] | 81 | |
Cash, end of period | 122.9 | 89.1 | ||
Argo Group International Holdings, Ltd (Parent Guarantor) [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash flows (used by) from operating activities | 5.6 | 2.9 | ||
Cash flows from investing activities: | ||||
Proceeds from sales of investments | 0 | 0 | ||
Maturities and mandatory calls of fixed maturity investments | 0 | 0 | ||
Purchases of investments | 0 | 0 | ||
Change in short-term investments and foreign regulatory deposits | 0.3 | 1.1 | ||
Settlements of foreign currency exchange forward contracts | 0 | 0.7 | ||
Purchases of fixed assets and other, net | 0 | 0.1 | ||
Cash (used) provided by investing activities | 0.3 | 1.9 | ||
Cash flows from financing activities: | ||||
Amortization of debt issuance costs | 0 | 0 | ||
Activity under stock incentive plans | 0.3 | 0.9 | ||
Repurchase of Company's common shares | 0 | 0 | ||
Excess tax expense from share-based payment arrangements | 0 | |||
Payment of cash dividends to common shareholders | (6.2) | (5.7) | ||
Cash used by financing activities | (5.9) | (4.8) | ||
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 (used by) from operating activities | 23.1 | 43.5 | ||
Cash flows from investing activities: | ||||
Proceeds from sales of investments | 306 | 340.1 | ||
Maturities and mandatory calls of fixed maturity investments | 84.8 | 114.5 | ||
Purchases of investments | (364.1) | (471.4) | ||
Change in short-term investments and foreign regulatory deposits | (34.6) | 7 | ||
Settlements of foreign currency exchange forward contracts | 0 | 0 | ||
Purchases of fixed assets and other, net | (10.9) | (11.3) | ||
Cash (used) provided by investing activities | (18.8) | (21.1) | ||
Cash flows from financing activities: | ||||
Amortization of debt issuance costs | 0.1 | 0.1 | ||
Activity under stock incentive plans | 0 | 0 | ||
Repurchase of Company's common shares | (19) | (17) | ||
Excess tax expense from share-based payment arrangements | 0.1 | |||
Payment of cash dividends to common shareholders | 0 | 0 | ||
Cash used by financing activities | (18.8) | (16.9) | ||
Effect of exchange rate changes on cash | 0 | 0 | ||
Change in cash | (14.5) | 5.5 | ||
Cash, beginning of period | 88.8 | 49.3 | ||
Cash, end of period | 74.3 | 54.8 | ||
Other Subsidiaries and Eliminations [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash flows (used by) from operating activities | [2] | 22.5 | (18.9) | |
Cash flows from investing activities: | ||||
Proceeds from sales of investments | [2] | 74.7 | 82.9 | |
Maturities and mandatory calls of fixed maturity investments | [2] | 48.4 | 27.5 | |
Purchases of investments | [2] | (94.5) | (85.8) | |
Change in short-term investments and foreign regulatory deposits | [2] | (21.6) | (3.3) | |
Settlements of foreign currency exchange forward contracts | [2] | (3.9) | (2.9) | |
Purchases of fixed assets and other, net | [2] | (10.1) | 2.9 | |
Cash (used) provided by investing activities | [2] | (7) | 21.3 | |
Cash flows from financing activities: | ||||
Amortization of debt issuance costs | [2] | 0 | 0 | |
Activity under stock incentive plans | [2] | 0 | 0 | |
Repurchase of Company's common shares | [2] | 0 | 0 | |
Excess tax expense from share-based payment arrangements | [2] | 0 | ||
Payment of cash dividends to common shareholders | [2] | 0 | 0 | |
Cash used by financing activities | [2] | 0 | 0 | |
Effect of exchange rate changes on cash | [2] | 0.2 | 0.2 | |
Change in cash | [2] | 15.7 | 2.6 | |
Cash, beginning of period | [2] | 32.9 | 31.7 | |
Cash, end of period | [2] | 48.6 | 34.3 | |
Consolidating Adjustments [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net cash flows (used by) from operating activities | [3] | 0 | 0 | |
Cash flows from investing activities: | ||||
Proceeds from sales of investments | [3] | 0 | 0 | |
Maturities and mandatory calls of fixed maturity investments | [3] | 0 | 0 | |
Purchases of investments | [3] | 0 | 0 | |
Change in short-term investments and foreign regulatory deposits | [3] | 0 | 0 | |
Settlements of foreign currency exchange forward contracts | [3] | 0 | 0 | |
Purchases of fixed assets and other, net | [3] | 0 | 0 | |
Cash (used) provided by investing activities | [3] | 0 | 0 | |
Cash flows from financing activities: | ||||
Amortization of debt issuance costs | [3] | 0 | 0 | |
Activity under stock incentive plans | [3] | 0 | 0 | |
Repurchase of Company's common shares | [3] | 0 | 0 | |
Excess tax expense from share-based payment arrangements | [3] | 0 | ||
Payment of cash dividends to common shareholders | [3] | 0 | 0 | |
Cash used by financing activities | [3] | 0 | 0 | |
Effect of exchange rate changes on cash | [3] | 0 | 0 | |
Change in cash | [3] | 0 | 0 | |
Cash, beginning of period | [3] | 0 | 0 | |
Cash, end of period | [3] | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. | |||
[2] | Includes all other subsidiaries of Argo Group International Holdings, Ltd. and all intercompany eliminations. | |||
[3] | Includes all Argo Group parent company eliminations. |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - USD ($) $ in Millions | May. 03, 2016 | Mar. 15, 2016 | Feb. 16, 2016 | Mar. 19, 2015 | Feb. 17, 2015 | Mar. 31, 2016 |
Subsequent Event [Line Items] | ||||||
Dividends declaration date | Feb. 16, 2016 | Feb. 17, 2015 | ||||
Stock dividend declared | 10.00% | |||||
Dividends payable date | Mar. 16, 2015 | |||||
Dividend payable, date of record | Mar. 1, 2016 | Mar. 2, 2015 | Mar. 2, 2015 | |||
Shares issued upon payment of the stock dividend | 2,554,506 | |||||
Proforma impact of stock dividend in common stock | $ 2.7 | |||||
Proforma impact of stock dividend in additional paid in capital | 150.9 | |||||
Proforma impact of stock dividend in retained earnings | $ 153.6 | |||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends declaration date | May 3, 2016 | |||||
Stock dividend declared | 10.00% | |||||
Dividends payable date | Jun. 17, 2016 | |||||
Dividend payable, date of record | Jun. 1, 2016 | |||||
Shares issued upon payment of the stock dividend | 2,700,000 | |||||
Common Stock [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends payable date | Jun. 15, 2016 |
Subsequent Event - Pro Forma Ba
Subsequent Event - Pro Forma Basic and Diluted Net Income per Common Share after Stock Dividend (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Pro forma net income per common share: | ||
Basic | $ 0.91 | $ 1.90 |
Diluted | $ 0.89 | $ 1.87 |