Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Feb. 09, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Entity Registrant Name | Allied World Assurance Co Holdings, AG | ||
Entity Central Index Key | 1163348 | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 96,004,829 | ||
Entity Public Float | $3.60 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS: | ||
Fixed maturity investments trading, at fair value (amortized cost: 2014: $6,035,240; 2013: $6,065,350) | $6,069,010 | $6,100,798 |
Equity securities trading, at fair value (cost: 2014: $791,206; 2013: $647,301) | 844,163 | 699,846 |
Other invested assets | 955,509 | 911,392 |
Total investments | 7,868,682 | 7,712,036 |
Cash and cash equivalents | 589,339 | 531,936 |
Restricted cash | 80,971 | 149,393 |
Insurance balances receivable | 664,815 | 588,632 |
Funds held | 724,021 | 632,430 |
Prepaid reinsurance | 360,732 | 340,992 |
Reinsurance recoverable | 1,340,256 | 1,234,504 |
Reinsurance recoverable on paid losses | 86,075 | 76,099 |
Accrued investment income | 28,456 | 32,236 |
Net deferred acquisition costs | 151,546 | 126,661 |
Goodwill | 278,258 | 268,376 |
Intangible assets | 46,298 | 48,831 |
Balances receivable on sale of investments | 47,149 | 76,544 |
Net deferred tax assets | 33,615 | 37,469 |
Other assets | 121,350 | 89,691 |
Total assets | 12,421,563 | 11,945,830 |
LIABILITIES: | ||
Reserve for losses and loss expenses | 5,881,165 | 5,766,529 |
Unearned premiums | 1,555,313 | 1,396,256 |
Reinsurance balances payable | 180,060 | 173,023 |
Balances due on purchases of investments | 5,428 | 104,740 |
Senior notes | 798,802 | 798,499 |
Other long-term debt | 19,213 | 0 |
Dividends payable | 21,669 | 16,732 |
Accounts payable and accrued liabilities | 181,622 | 170,225 |
Total liabilities | 8,643,272 | 8,426,004 |
SHAREHOLDERS’ EQUITY: | ||
Common shares: 2014 and 2013: par value CHF 4.10 per share (2014: 100,775,256; 2013: 103,477,452 shares issued and 2014: 96,195,482; 2013: 100,253,646 shares outstanding) | 408,020 | 418,988 |
Treasury shares, at cost (2014: 4,579,774; 2013: 3,223,806) | -143,075 | -79,992 |
Retained earnings | 3,513,346 | 3,180,830 |
Total shareholders’ equity | 3,778,291 | 3,519,826 |
Total liabilities and shareholders’ equity | $12,421,563 | $11,945,830 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical)(USD ($)) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Fixed maturity investments trading, amortized cost | $6,035,240 | $6,065,350 |
Equity securities trading - cost | $791,206 | $647,301 |
Common stock, shares issued | 100,775,256 | 103,477,452 |
Common stock, shares outstanding | 96,195,482 | 100,253,646 |
Treasury stock (shares) | 4,579,774 | 3,223,806 |
Consolidated_Statements_Of_Ope
Consolidated Statements Of Operations And Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||
Gross premiums written | $2,935,425 | $2,738,664 | $2,329,271 |
Premiums ceded | -613,350 | -618,183 | -491,448 |
Net premiums written | 2,322,075 | 2,120,481 | 1,837,823 |
Change in unearned premiums | -139,317 | -114,648 | -88,925 |
Net premiums earned | 2,182,758 | 2,005,833 | 1,748,898 |
Net investment income | 176,874 | 157,564 | 167,141 |
Net realized investment gains | 88,957 | 59,525 | 306,436 |
Other income | 2,064 | 0 | 0 |
Total revenues | 2,450,653 | 2,222,922 | 2,222,475 |
EXPENSES: | |||
Net losses and loss expenses | 1,199,190 | 1,123,242 | 1,139,264 |
Acquisition costs | 295,122 | 252,673 | 205,722 |
General and administrative expenses | 365,736 | 352,285 | 307,321 |
Other expense | 8,578 | 0 | 0 |
Amortization of intangible assets | 2,533 | 2,533 | 2,533 |
Interest expense | 57,755 | 56,510 | 55,405 |
Foreign exchange loss | 957 | 8,019 | 783 |
Total expenses | 1,929,871 | 1,795,262 | 1,711,028 |
Income before income taxes | 520,782 | 427,660 | 511,447 |
Income tax expense | 30,523 | 9,780 | 18,440 |
NET INCOME | 490,259 | 417,880 | 493,007 |
Other comprehensive loss: | |||
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | 0 | 0 | -493 |
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | 0 | 0 | -13,991 |
Other comprehensive loss | 0 | 0 | -14,484 |
COMPREHENSIVE INCOME | $490,259 | $417,880 | $478,523 |
PER SHARE DATA | |||
Basic earnings per share | $5.03 | $4.08 | $4.56 |
Diluted earnings per share | $4.92 | $3.98 | $4.43 |
Weighted average common shares outstanding | 97,538,319 | 102,464,715 | 108,171,435 |
Weighted average common shares and common share equivalents outstanding | 99,591,773 | 104,865,834 | 111,209,655 |
Dividends paid per share | $0.78 | $0.46 | $0.63 |
Consolidated_Statements_Of_Ope1
Consolidated Statements Of Operations And Comprehensive Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Deferred income tax (benefit) expense for unrealized gains on investments arising during the period | $0 | $0 | ($265) |
Consolidated_Statements_Of_Sha
Consolidated Statements Of Shareholders' Equity (USD $) | Total | Share Capital | Additional Paid-In Capital | Treasury Shares | Accumulated Other Comprehensive Income | Retained Earnings | |
In Thousands | |||||||
Balance, at beginning of period at Dec. 31, 2011 | $3,149,022 | $557,153 | $78,225 | ($136,590) | $14,484 | $2,635,750 | |
Net income | 493,007 | 493,007 | |||||
Dividends — par value reduction | -53,523 | -53,523 | |||||
Other comprehensive loss | -14,484 | -14,484 | |||||
Stock compensation | [1] | 16,255 | -27,099 | 43,354 | |||
Share repurchases | -263,942 | -263,942 | |||||
Shares cancelled | 0 | -48,650 | -51,126 | 243,360 | -143,584 | ||
Balance, at end of period at Dec. 31, 2012 | 3,326,335 | 454,980 | 0 | -113,818 | 0 | 2,985,173 | |
Net income | 417,880 | 417,880 | |||||
Dividends — par value reduction | -12,982 | -12,982 | |||||
Dividends | -50,791 | -50,791 | |||||
Other comprehensive loss | 0 | ||||||
Stock compensation | [1] | 14,070 | 0 | 31,946 | -17,876 | ||
Share repurchases | -174,686 | -174,686 | |||||
Shares cancelled | 0 | -23,010 | 0 | 176,566 | -153,556 | ||
Balance, at end of period at Dec. 31, 2013 | 3,519,826 | 418,988 | 0 | -79,992 | 0 | 3,180,830 | |
Net income | 490,259 | 490,259 | |||||
Dividends | -81,686 | -81,686 | |||||
Other comprehensive loss | 0 | ||||||
Stock compensation | [1] | 25,265 | 0 | 19,638 | 5,627 | ||
Share repurchases | -175,373 | -175,373 | |||||
Shares cancelled | 0 | -10,968 | 0 | 92,652 | -81,684 | ||
Balance, at end of period at Dec. 31, 2014 | $3,778,291 | $408,020 | $0 | ($143,075) | $0 | $3,513,346 | |
[1] | Includes stock compensation expense for the period and shares issued out of treasury for awards exercised or vested. See note 2(o) to the notes to the consolidated financial statements. |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | |||
Net income | $490,259 | $417,880 | $493,007 |
Adjustments to reconcile net income to cash provided by operating activities: | |||
Net realized (gains) losses on sales of investments | -144,972 | -109,084 | 55,865 |
Mark to market adjustments | 21,984 | 48,147 | -180,380 |
Stock compensation expense | 14,245 | 13,969 | 17,642 |
Undistributed income of equity method investments | 13,851 | -11,923 | 0 |
Changes in: | |||
Reserve for losses and loss expenses, net of reinsurance recoverables | 8,884 | 27,586 | 282,215 |
Unearned premiums, net of prepaid reinsurance | 139,317 | 114,649 | 88,924 |
Insurance balances receivable | -76,825 | -108,412 | -81,600 |
Reinsurance recoverable on paid losses | -8,509 | -45,787 | -1,594 |
Funds held | -91,591 | -296,062 | -111,548 |
Reinsurance balances payable | 7,037 | 36,759 | 11,725 |
Net deferred acquisition costs | -24,885 | -18,651 | -7,676 |
Net deferred tax assets | 4,186 | -11,889 | 200 |
Accounts payable and accrued liabilities | 8,039 | 22,917 | 27,815 |
Other items, net | 55,829 | 34,332 | 34,843 |
Net cash provided by operating activities | 416,849 | 114,431 | 629,438 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | -7,630,034 | -7,527,670 | -8,006,237 |
Purchases of other invested assets | -307,955 | -276,926 | -333,031 |
Sales of available for sale securities | 0 | 0 | 236,978 |
Sales of trading securities | 7,536,936 | 7,540,194 | 7,892,907 |
Sales of other invested assets | 267,885 | 187,477 | 53,741 |
Purchases of fixed assets | -59,656 | -5,310 | -3,214 |
Net cash paid for acquisitions | -2,565 | 0 | 0 |
Change in restricted cash | 68,422 | 34,092 | -100,877 |
Net cash used in investing activities | -126,967 | -48,143 | -259,733 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Dividends paid — par value reduction | 0 | -12,981 | -67,825 |
Dividends paid | -76,750 | -34,059 | 0 |
Proceeds from the exercise of stock options | 10,027 | 12,137 | 10,527 |
Proceeds from other long-term debt | 19,213 | 0 | 0 |
Share repurchases | -175,910 | -173,006 | -263,942 |
Net cash used in financing activities | -223,420 | -207,909 | -321,240 |
Effect of exchange rate changes on foreign currency cash | -9,059 | -8,322 | -582 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57,403 | -149,943 | 47,883 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 531,936 | 681,879 | 633,996 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 589,339 | 531,936 | 681,879 |
Supplemental disclosure of cash flow information: | |||
Cash paid for income taxes | 18,363 | 22,604 | 23,957 |
Cash paid for interest expense | $54,000 | $54,000 | $54,000 |
General
General | 12 Months Ended |
Dec. 31, 2014 | |
General [Abstract] | |
General | GENERAL |
Allied World Assurance Company Holdings, AG, a Swiss holding company (“Allied World Switzerland”), through its wholly-owned subsidiaries (collectively, the “Company”), provides property and casualty insurance and reinsurance on a worldwide basis through operations in Australia, Bermuda, the United States, Canada, Europe, Hong Kong, Labuan and Singapore. References to $ are to the lawful currency of the United States and to CHF are to the lawful currency of Switzerland. | |
The Company has reached definitive agreements to acquire the Hong Kong and Singapore operations of Royal & Sun Alliance Insurance plc ("RSA") for approximately $201,761, at current exchange rates, subject to adjustments at closing. In addition to the purchase price, the Company expects to contribute an additional $90,000 to capitalize the businesses on an ongoing basis. Subject to regulatory approvals in both Hong Kong and Singapore, as well as court approval in Singapore, the acquisition is expected to be completed in the early part of the second quarter of 2015. | |
On May 1, 2014, the shareholders approved a 3-for-1 stock split of the Company's common shares. All historical share and per share amounts reflect the effect of the stock split. | |
During the fourth quarter of 2014, the Company reorganized how it manages its business, and as a result it realigned its executive management team and changed its reportable segments to correspond to the reorganization. The Company's Bermuda direct insurance operations, except for the trade credit line of business, which had previously been included in the international insurance segment, was combined with the U.S. insurance segment, with the new segment renamed the "North American Insurance" segment. The remaining direct insurance operations of the international insurance segment was renamed the "Global Markets Insurance" segment. The Reinsurance segment remained unchanged. The newly created segments are included in note 17 and prior periods have been recast to conform to the new presentation. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant accounting policies | SIGNIFICANT ACCOUNTING POLICIES | |
These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). The preparation of financial statements in conformity with U.S. 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates reflected in the Company’s financial statements include, but are not limited to: | ||
• | The premium estimates for certain reinsurance agreements, | |
• | Recoverability of deferred acquisition costs, | |
• | The reserve for outstanding losses and loss expenses, | |
• | Valuation of ceded reinsurance recoverables, | |
• | Determination of impairment of goodwill and other intangible assets, and | |
• | Valuation of financial instruments. | |
Intercompany accounts and transactions have been eliminated on consolidation and entities meeting consolidation requirements have been included in the consolidated financial statements. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. | ||
The significant accounting policies are as follows: | ||
a) Premiums and Acquisition Costs | ||
Premiums are recorded as written on the inception date of the policy. For certain types of business written by the Company, notably assumed reinsurance, premium income may not be known at the policy inception date. In the case of quota share reinsurance treaties assumed by the Company, the underwriter makes an estimate of premium income at inception. The underwriter’s estimate is based on statistical data provided by reinsureds and the underwriter’s judgment and experience. Such estimations are refined over the reporting period of each treaty as actual written premium information is reported by ceding companies and intermediaries. Premiums resulting from changes in the estimate of the premium income are recorded in the period the estimate is changed. Certain insurance and reinsurance contracts may require that the premium be adjusted at the expiry of the contract to reflect the change in exposure or loss experience of the insured or reinsured. | ||
Premiums are recognized as earned over the period of policy coverage in proportion to the risks to which they relate. Reinsurance premiums under a losses-occurring reinsurance contract are earned over the coverage period. Reinsurance premiums under a risks-attaching reinsurance contract are earned over the same period as the underlying policies, or risks, covered by the contract. As a result, the earning pattern of a risks-attaching reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies. Premiums relating to the unexpired periods of coverage are recorded on the consolidated balance sheets as “unearned premiums”. | ||
Acquisition costs, comprised of commissions, brokerage fees and insurance taxes, are costs that are directly related to the successful acquisition of new and renewal business. While permitted under U.S. GAAP to defer certain internal costs that are directly related to the successful acquisition of new and renewal business, the Company does not defer such costs. Acquisition costs that are deferred are expensed as the premiums to which they relate are earned. Acquisition costs relating to the reserve for unearned premiums are deferred and carried on the balance sheets as an asset and are amortized over the period of coverage. Expected losses and loss expenses, other costs and anticipated investment income related to these unearned premiums are considered in determining the recoverability or deficiency of deferred acquisition costs. If it is determined that deferred acquisition costs are not recoverable, they are expensed. Further analysis is performed to determine if a liability is required to provide for losses which may exceed the related unearned premiums. | ||
b) Reserve for Losses and Loss Expenses | ||
The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves (“OSLR,” also known as case reserves) and reserves for losses incurred but not reported (“IBNR”). OSLR relate to known claims and represent management’s best estimate of the likely loss payment. IBNR relates to reserves established by the Company for claims that have occurred but have not yet been reported to us as well as for changes in the values of claims that have been reported to us but are not yet settled. | ||
The reserve for IBNR is estimated by management for each line of business based on various factors including underwriters’ expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The Company’s actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves. The adequacy of the reserves is re-evaluated quarterly by the Company’s actuaries. At the completion of each quarterly review of the reserves, a reserve analysis is prepared and reviewed with the Company’s loss reserve committee. This committee determines management’s best estimate for loss and loss expense reserves based upon the reserve analysis. | ||
While management believes that the reserves for OSLR and IBNR are sufficient to cover losses assumed by the Company, there can be no assurance that losses will not deviate from the Company’s reserves, possibly by material amounts. The methodology of estimating loss reserves is periodically reviewed to ensure that the assumptions made continue to be appropriate. The Company recognizes any changes in its loss reserve estimates and the related reinsurance recoverables in the consolidated statements of operations and comprehensive income ("consolidated income statements") in the periods in which they are determined. These are recorded in “net losses and loss expenses”. | ||
c) Ceded Reinsurance | ||
In the ordinary course of business, the Company uses both treaty and facultative reinsurance to minimize its net loss exposure to any one catastrophic loss event or to an accumulation of losses from a number of smaller events. Reinsurance premiums ceded are expensed and any commissions recorded thereon are earned over the period the reinsurance coverage is provided in proportion to the risks to which they relate. For reinsurance treaties that have contractual minimum premium provisions, premiums ceded are recorded at the inception of the treaty based on the minimum premiums. Any unearned ceding commission is included in “net deferred acquisitions costs” on the consolidated balance sheets and is recorded as a reduction to the overall net deferred acquisition cost balance. Prepaid reinsurance represents unearned premiums ceded to reinsurance companies. Reinsurance recoverable includes the balances due from those reinsurance companies under the terms of the Company’s reinsurance agreements for unpaid losses and loss reserves, including IBNR. Amounts recoverable from reinsurers are estimated in a manner consistent with the estimated claim liability associated with the reinsured policy. | ||
The Company determines the portion of the IBNR liability that will be recoverable under its reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. | ||
The Company remains liable to the extent that its reinsurers do not meet their obligations under the reinsurance contracts; therefore, the Company regularly evaluates the financial condition of its reinsurers and monitors concentration of credit risk. | ||
d) Investments | ||
All of our fixed maturity investments and equity securities are classified as trading securities as the Company has elected the fair value option permitted under U.S. GAAP for these investments. Trading securities are carried at fair value with any change in unrealized gains or losses recognized in the consolidated income statements and included in “net realized investment gains”. As a result of our investment classification, we do not record any change in unrealized gains or losses in our investments as a separate component of accumulated other comprehensive income on the consolidated balance sheets. | ||
Other invested assets consist primarily of investments in hedge funds and private equity funds, which have been accounted for as trading securities as the Company has elected the fair value option as permitted under U.S. GAAP. In addition, included in the Company’s other invested assets are various investments which are accounted for using the equity method of accounting. Generally, the Company uses the equity method where it does not have a controlling interest and is not the primary beneficiary. Equity method investments are recorded at cost and adjusted for the Company’s proportionate share of earnings or losses on a quarterly lag basis. An other-than-temporary impairment charge related to the equity method investments is assessed when facts and circumstances exists that indicate an impairment may exist. An other-than-temporary impairment charge is recorded when it is determined that the carrying value of the equity method investment is below its fair value and the Company does not have the intent and ability to hold to recovery. No equity method investment was deemed significant to disclose summarized financial data. Other investments are recorded based on valuation techniques depending on the nature of the individual assets. | ||
At each measurement date, the Company estimates the fair value of the financial instruments using various valuation techniques. The Company utilizes, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of financial instruments. When quoted market prices or observable market inputs are not available, the Company may utilize valuation techniques that rely on unobservable inputs to estimate the fair value of financial instruments. The Company bases its determination of whether a market is active or inactive on the spread between what a seller is asking for a security and what a buyer is bidding for that security. Spreads that are significantly above historical spreads are considered inactive markets. The Company also considers the volume of trading activity in the determination of whether a market is active or inactive. See note 5 for additional information regarding the fair value of financial instruments. | ||
The Company utilizes independent pricing sources to obtain market quotations for securities that have quoted prices in active markets. In general, the independent pricing sources use observable market inputs including, but not limited to, investment yields, credit risks and spreads, benchmarking of like securities, reported trades and sector groupings to determine the fair value. For a majority of the portfolio, the Company obtained two or more prices per security as of December 31, 2014. When multiple prices are obtained, a price source hierarchy is utilized to determine which price source is the best estimate of the fair value of the security. The price source hierarchy emphasizes more weighting to significant observable inputs such as index pricing and less weighting towards non-binding broker-dealer quotes. In addition, to validate all prices obtained from these pricing sources including non-binding broker-dealer quotes, the Company also obtains prices from its investment portfolio managers and other sources (e.g., another pricing vendor), and compares the prices obtained from the independent pricing sources to those obtained from the Company’s investment portfolio managers and other sources. The Company investigates any material differences between the multiple sources and determines which price best reflects the fair value of the individual security. There were no material differences between the prices obtained from the independent pricing sources and the prices obtained from the Company’s investment portfolio managers and other sources as of December 31, 2014 and 2013. | ||
Investment securities are recorded on a trade date basis. Investment income is recognized when earned and includes the accrual of discount or amortization of premium on fixed maturity investments using the effective yield method and is net of related expenses. Interest income for fixed maturity investments is accrued and recognized based on the contractual terms of the fixed maturity investments and is included in “net investment income” in the consolidated income statements. The Company’s share of distributed and undistributed net income from equity method investments is included in “net investment income”. The return on investments is managed on a total financial statement portfolio return basis, which includes the distributed and undistributed net income from equity method investments, and as such have classified these amounts in net investment income. | ||
Realized gains and losses on the disposition of investments, which are based upon the first-in first-out method of identification, are included in “net realized investment gains” in the consolidated income statements. For mortgage-backed and asset-backed securities and any other holdings for which there is a prepayment risk, prepayment assumptions are evaluated and revised on a regular basis. Revised prepayment assumptions are applied to securities on a retrospective basis to the date of acquisition. The cumulative adjustments to amortized cost required due to these changes in effective yields and maturities are recognized in net investment income in the same period as the revision of the assumptions. | ||
e) Variable Interest Entities | ||
The Company is involved in the normal course of business with variable interest entities (“VIEs”) as a passive investor in certain asset-backed securities issued by third-party VIEs and affiliated VIEs. The Company performs a qualitative assessment at the date when it becomes initially involved in the VIE, followed by ongoing reassessments related to its involvement in VIEs. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheets and any unfunded commitments. | ||
f) Translation of Foreign Currencies | ||
Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. Foreign currency revenues and expenses are translated at the average exchange rates prevailing during the period. Exchange gains and losses, including those arising from forward exchange contracts, are included in the consolidated income statements. The Company’s functional currency, and that of each its operating subsidiaries, is the U.S. dollar as it is the single largest currency in which the Company and its each of its subsidiaries transact business and hold invested assets. | ||
g) Cash and Cash Equivalents | ||
Cash and cash equivalents include amounts held in banks, time deposits, commercial paper, discount notes and U.S. Treasury Bills with maturities of less than three months from the date of purchase. | ||
h) Income Taxes | ||
Allied World Switzerland and certain of its subsidiaries operate in jurisdictions where they are subject to income taxation. Current and deferred income taxes are charged or credited to operations, or to accumulated other comprehensive income in certain cases, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes payable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the financial statements and those used in the various jurisdictional tax returns. | ||
It is the Company’s policy to recognize interest accrued related to unrecognized tax benefits in “interest expense” and penalties in “general and administrative expenses” in the consolidated income statements. The Company has not recorded any interest or penalties during the years ended December 31, 2014, 2013 and 2012 and the Company has not accrued any payment of interest and penalties as of December 31, 2014 and 2013. | ||
i) Employee Stock Option Compensation Plan | ||
The Company has an employee stock option plan, which is in run-off, in which the amount of Allied World Switzerland's common shares received as compensation through the issuance of stock options is determined by reference to the value of the shares. Compensation expense for stock options granted to employees is recorded on a straight-line basis over the option vesting period and is based on the fair value of the stock options on the grant date. The fair value of each stock option on the grant date is determined by using the Black-Scholes option-pricing model. | ||
j) Restricted Stock Units | ||
The Company has granted restricted stock units (“RSUs”) to certain employees. The compensation expense for the RSUs is based on the market value of Allied World Switzerland’s common shares on the grant date, and is recognized on a straight-line basis over the applicable vesting period. | ||
The Company has also granted cash-equivalent RSUs to certain employees that vest on a straight-line basis over the applicable vesting period. The amount payable per unit awarded will be equal to the price per share of Allied World Switzerland’s common shares and as such the Company measures the value of the award each reporting period based on the period ending share price. The effects of changes in the share price at each period end during the service period are recognized as increases or decreases in compensation expense over the service period. | ||
k) Performance-Based Equity Awards | ||
The Company has granted performance-based equity awards to key employees in order to promote the long-term growth and profitability of the Company. Each award represents the right to receive a number of common shares in the future, based upon the achievement of established performance criteria during the applicable performance period. The compensation expense for these awards is based on the market value of Allied World Switzerland’s common shares on the grant date, and is recognized on a straight-line basis over the applicable performance and vesting period. The Company will also adjust the compensation expense, as a cumulative adjustment, to the extent the Company's performance is above or below the targeted performance criteria. | ||
The Company has also granted cash-equivalent, performance-based awards to certain employees that vest based upon the achievement of established performance criteria during the applicable performance period. These cash-equivalent, performance-based awards vest after a three-year performance period. The amount payable per unit awarded will be equal to the price per share of Allied World Switzerland’s common shares, and as such the Company measures the value of the award each reporting period based on the period-ending share price. The effects of changes in the share price at each period end during the service period are recognized as changes in compensation expense over the service period. The Company will also adjust the compensation expense, as a cumulative adjustment, to the extent the Company's performance is above or below the targeted performance criteria. | ||
l) Goodwill and Intangible Assets | ||
The Company classifies its intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization, and (3) goodwill. Intangible assets, other than goodwill, generally consist of trademarks, renewal rights, internally generated software, non-compete covenants and insurance licenses. | ||
For intangible assets with finite lives, the value of the assets is amortized over their expected useful lives and the expense is included in “amortization of intangible assets” in the consolidated income statements. The Company tests assets for impairment if conditions exist that indicate the carrying value may not be recoverable. If, as a result of the evaluation, the Company determines that the value of the intangible assets is impaired, then the value of the assets will be written-down in the period in which the determination of the impairment is made. | ||
For indefinite lived intangible assets the Company does not amortize the intangible asset but evaluates and compares the fair value of the assets to their carrying values on an annual basis or more frequently if circumstances warrant. If, as a result of the evaluation, the Company determines that the value of the intangible assets is impaired, then the value of the assets will be written-down in the period in which the determination of the impairment is made. | ||
Goodwill represents the excess of the cost of acquisitions over the fair value of net assets acquired and is not amortized. Goodwill is assigned at acquisition to the applicable reporting unit(s) based on the expected benefit to be received by the reporting units from the business combination. The Company determines the expected benefit based on several factors including the purpose of the business combination, the strategy of the Company subsequent to the business combination and structure of the acquired company subsequent to the business combination. A reporting unit is a component of the Company’s business that has discrete financial information that is reviewed by management. In determining the reporting unit, the Company analyzes the inputs, processes, outputs and overall operating performance of the reporting unit. The Company has determined that for purposes of the acquisition of Allied World Underwriters, Inc. ("AW Underwriters") (f/k/a Darwin Professional Underwriters, Inc.) the U.S. direct insurance operations of the North American Insurance segment is the reporting unit that is expected to receive the benefit of the business combination and as such all of the goodwill has been allocated to this reporting unit. | ||
For goodwill, the Company performs an annual impairment test, or more frequently if circumstances are warranted. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The results of the qualitative assessment will determine if an entity needs to proceed with the two-step goodwill impairment test. For the year ended December 31, 2014, the Company elected to bypass the qualitative assessment and performed the first step of the goodwill impairment test. | ||
The first step of the goodwill impairment test is to compare the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value then the second step of the goodwill impairment test is performed. | ||
The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill in order to determine the amount of impairment to be recognized. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of the reporting unit as a whole. The excess of the carrying value of goodwill above the implied goodwill, if any, would be recognized as an impairment charge in the consolidated income statements. | ||
We recorded no impairments during the years ended December 31, 2014, 2013 and 2012. | ||
m) Derivative Instruments | ||
The Company utilizes derivative financial instruments as part of its overall risk management strategy. The Company recognizes all derivative financial instruments at fair value as either assets or liabilities on the consolidated balance sheets. The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the consolidated financial statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of the asset or liability hedged. | ||
The Company uses currency forward contracts and foreign currency swaps to manage currency exposure. The Company also utilizes various derivative instruments such as interest rate futures, interest rate swaps and index options, for the purpose of managing market exposures, interest rate volatility, portfolio duration, hedging certain investments, or enhancing investment performance. These derivatives are not designated as hedges and accordingly are carried at fair value on the consolidated balance sheets with realized and unrealized gains and losses included in the consolidated income statements. Refer to Note 4 for the Company’s related disclosure. | ||
n) Earnings Per Share | ||
Basic earnings per share is defined as net income available to common shareholders divided by the weighted average number of common shares outstanding for the period, giving no effect to dilutive securities. Diluted earnings per share is defined as net income available to common shareholders divided by the weighted average number of common and common share equivalents outstanding calculated using the treasury stock method for all potentially dilutive securities, including share warrants, employee stock options, employee share repurchase plan, RSUs and performance-based awards. When the effect of dilutive securities would be anti-dilutive, these securities are excluded from the calculation of diluted earnings per share. | ||
o) Treasury Shares | ||
Common shares repurchased by the Company and not subsequently cancelled are classified as "treasury shares" on the consolidated balance sheets and are recorded at cost. When shares are reissued from treasury the historical cost, based on the first-in, first-out method, is used to determine the cost of the reissued shares. The difference between the cost of the treasury shares and the par value of the common stock shall be first reflected as additional paid-in capital, but to the extent additional paid-in capital is exhausted the remainder shall reduce retained earnings. The issuance of shares out of treasury have been related to vesting equity-based compensation of the Company's employees and directors. | ||
p) New Accounting Pronouncements | ||
In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08"). ASU 2014-08 changes the requirements for reporting discontinued operations, such that a disposal of a component of the Company's operations is required to be reported as discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. Examples of strategic shifts that could have a major effect on the Company's operations could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of the Company. ASU 2014-08 is effective for all disposals that occur after January 1, 2015. The Company does not believe the adoption of ASU 2014-08 will have a material impact on future financial statements and related disclosures. | ||
In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services - Insurance. ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on future financial statements and related disclosures. | ||
In August 2014, the FASB issued Accounting Standards Update 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). Currently, there is no guidance under U.S. GAAP regarding management's responsibility to assess whether there is substantial doubt about an entity's ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern, including management's plan to alleviate the substantial doubt. ASU 2014-15 is effective for the year ended December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. | ||
In November 2014, the FASB issued Accounting Standards Update 2014-17, "Pushdown Accounting" ("ASU 2014-17"). ASU 2014-17 provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon an acquirer obtaining control of the acquired entity. The acquired entity may also elect to apply pushdown accounting in a subsequent reporting period, if pushdown accounting was not applied when the acquirer obtained control, but that will be treated as a change in accounting principle. Once pushdown accounting is applied, the election is irrevocable. The Company adopted ASU 2014-17 when it became effective in November 2014. |
Investments
Investments | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||
Investments | INVESTMENTS | |||||||||||||||||||||
a) Trading Securities | ||||||||||||||||||||||
Securities accounted for at fair value with changes in fair value recognized in the consolidated income statements by category are as follows: | ||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||
U.S. government and government agencies | $ | 1,610,502 | $ | 1,610,880 | $ | 1,676,788 | $ | 1,684,832 | ||||||||||||||
Non-U.S. government and government agencies | 188,199 | 196,332 | 191,776 | 197,082 | ||||||||||||||||||
States, municipalities and political subdivisions | 170,567 | 165,615 | 231,555 | 234,406 | ||||||||||||||||||
Corporate debt: | ||||||||||||||||||||||
Financial institutions | 1,024,667 | 1,018,777 | 958,794 | 943,518 | ||||||||||||||||||
Industrials | 1,029,729 | 1,037,820 | 1,174,047 | 1,165,448 | ||||||||||||||||||
Utilities | 110,997 | 111,599 | 69,426 | 69,658 | ||||||||||||||||||
Mortgage-backed | 1,263,517 | 1,219,712 | 1,292,502 | 1,267,863 | ||||||||||||||||||
Asset-backed | 670,832 | 674,505 | 505,910 | 502,543 | ||||||||||||||||||
Total fixed maturity investments, trading | $ | 6,069,010 | $ | 6,035,240 | $ | 6,100,798 | $ | 6,065,350 | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Fair Value | Cost | Fair Value | Cost | |||||||||||||||||||
Equity securities | $ | 844,163 | $ | 791,206 | $ | 699,846 | $ | 647,301 | ||||||||||||||
Other invested assets | 812,543 | 725,069 | 764,081 | 658,683 | ||||||||||||||||||
$ | 1,656,706 | $ | 1,516,275 | $ | 1,463,927 | $ | 1,305,984 | |||||||||||||||
Other invested assets, included in the table above, include investments in private equity funds, hedge funds and a high yield loan fund that are accounted for at fair value, but excludes other private securities described below in Note 3(b) that are accounted for using the equity method of accounting. | ||||||||||||||||||||||
b) Other Invested Assets | ||||||||||||||||||||||
Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of December 31, 2014 and 2013 were as follows: | ||||||||||||||||||||||
Fund Type | Carrying Value as of December 31, 2014 | Investments | Estimated | Investments | Redemption | Redemption | Unfunded | |||||||||||||||
with | Remaining | without | Frequency(1) | Notice | Commitments | |||||||||||||||||
Redemption | Restriction | Redemption | Period(1) | |||||||||||||||||||
Restrictions | Period | Restrictions | ||||||||||||||||||||
Private equity (primary and secondary) | $ | 184,576 | $ | 184,576 | 2 - 8 Years | $ | — | $ | 223,802 | |||||||||||||
Mezzanine debt | 166,905 | 166,905 | 5 - 9 Years | — | 204,232 | |||||||||||||||||
Distressed | 5,869 | 5,869 | 3 Years | — | 5,180 | |||||||||||||||||
Real estate | — | — | 9 Years | — | 50,000 | |||||||||||||||||
Total private equity | 357,350 | 357,350 | — | 483,214 | ||||||||||||||||||
Distressed | 170,169 | 170,169 | — | Based on net asset value | 60 Days | — | ||||||||||||||||
Equity long/short | 84,198 | — | 84,198 | Quarterly | 30 -60 Days | — | ||||||||||||||||
Multi-strategy | 51,507 | — | 51,507 | Quarterly | 45 -90 Days | — | ||||||||||||||||
Relative value credit | 119,156 | — | 119,156 | Quarterly | 60 Days | — | ||||||||||||||||
Total hedge funds | 425,030 | 170,169 | 254,861 | — | ||||||||||||||||||
High yield loan fund | 30,163 | — | 30,163 | Monthly | 30 days | — | ||||||||||||||||
Total other invested assets at fair value | 812,543 | 527,519 | 285,024 | 483,214 | ||||||||||||||||||
Other private securities | 142,966 | — | 142,966 | — | ||||||||||||||||||
Total other invested assets | $ | 955,509 | $ | 527,519 | $ | 427,990 | $ | 483,214 | ||||||||||||||
Fund Type | Carrying Value as of December 31, 2013 | Investments | Estimated | Investments | Redemption | Redemption | Unfunded | |||||||||||||||
with | Remaining | without | Frequency(1) | Notice | Commitments | |||||||||||||||||
Redemption | Restriction | Redemption | Period(1) | |||||||||||||||||||
Restrictions | Period | Restrictions | ||||||||||||||||||||
Private equity (primary and secondary) | $ | 144,422 | $ | 144,422 | 2 - 9 Years | $ | — | $ | 263,519 | |||||||||||||
Mezzanine debt | 64,627 | 64,627 | 8 - 9 Years | — | 198,756 | |||||||||||||||||
Distressed | 7,776 | 7,776 | 4 Years | — | 5,249 | |||||||||||||||||
Total private equity | 216,825 | 216,825 | — | 467,524 | ||||||||||||||||||
Distressed | 151,227 | 151,227 | 1 - 2 Years | — | — | |||||||||||||||||
Equity long/short | 99,365 | — | 99,365 | Quarterly | 30 -60 Days | — | ||||||||||||||||
Multi-strategy | 136,958 | — | 136,958 | Quarterly | 45 -90 Days | — | ||||||||||||||||
Event driven | 14,018 | — | 14,018 | Annual | 60 Days | — | ||||||||||||||||
Relative value credit | 113,730 | — | 113,730 | Quarterly | 60 Days | — | ||||||||||||||||
Total hedge funds | 515,298 | 151,227 | 364,071 | — | ||||||||||||||||||
High yield loan fund | 31,958 | — | 31,958 | Monthly | 30 days | — | ||||||||||||||||
Total other invested assets at fair value | 764,081 | 368,052 | 396,029 | 467,524 | ||||||||||||||||||
Other private securities | 147,311 | — | 147,311 | — | ||||||||||||||||||
Total other invested assets | $ | 911,392 | $ | 368,052 | $ | 543,340 | $ | 467,524 | ||||||||||||||
-1 | The redemption frequency and notice periods only apply to the investments without redemption restrictions. | |||||||||||||||||||||
In general, the Company has invested in hedge funds that require at least 30 days' notice of redemption, and may be redeemed on a monthly, quarterly, semi-annual, annual or longer basis, depending on the fund. Certain hedge funds have lock-up periods ranging from one to three years from initial investment. A lock-up period refers to the initial amount of time an investor is contractually required to invest before having the ability to redeem. Funds that provide for periodic redemptions may, depending on the funds’ governing documents, have the ability to deny or delay a redemption request, called a “gate.” The fund may implement this restriction because the aggregate amount of redemption requests as of a particular date exceeds a specified level, generally ranging from 15% to 25% of the fund’s net assets. The gate is a method for executing an orderly redemption process to reduce the possibility of adversely affecting investors in the fund. Typically, the imposition of a gate delays a portion of the requested redemption, with the remaining portion settled in cash sometime after the redemption date. Certain funds may impose a redemption fee on early redemptions. Interests in private equity funds cannot be redeemed because the investments include restrictions that do not allow for redemption until termination of the fund. | ||||||||||||||||||||||
The following is a summary of each investment type: | ||||||||||||||||||||||
• | Private equity funds: Primary equity funds may invest in companies and general partnership interests. Secondary equity funds buy limited partnership interests from existing limited partners of primary private equity funds. As owners of private equity funds seek liquidity, they can sell their existing investments, plus any remaining commitment, to secondary market participants. These funds cannot be redeemed because the investments include restrictions that do not allow for redemption until termination of the fund. | |||||||||||||||||||||
• | Mezzanine debt funds: Mezzanine debt funds primarily focus on providing capital to upper middle market and middle market companies and private equity sponsors, in connection with leveraged buyouts, mergers and acquisitions, recapitalizations, growth financings and other corporate transactions. The most common position in the capital structure will be between the senior secured debt holder and the equity; however, the funds will utilize a flexible approach when structuring investments, which may include secured debt, subordinated debt, preferred stock and/or private equity. These funds cannot be redeemed because the investments include restrictions that do not allow for redemption until termination of the fund. | |||||||||||||||||||||
• | Distressed funds: In distressed debt investing, managers take positions in the debt of companies experiencing significant financial difficulties, including bankruptcy, or in certain positions of the capital structure of structured securities. The manager relies on the fundamental analysis of these securities, including the claims on the assets and the likely return to bondholders. Certain funds cannot be redeemed because the investments include restrictions that do not allow for redemption until termination of the fund. | |||||||||||||||||||||
• | Real estate funds: Private real estate funds invest directly in commercial real estate (multifamily units, industrial buildings, office spaces, and retail stores) and some residential property. Real estate managers have diversified portfolios that generally follow core, core-plus, value-added, or opportunistic strategies. These funds cannot be redeemed because the investments include restrictions that do not allow for redemption until termination of the fund. | |||||||||||||||||||||
• | Equity long/short funds: In equity long/short funds, managers take long positions in companies they deem to be undervalued and short positions in companies they deem to be overvalued. Long/short managers may invest in countries, regions or sectors and vary by their use of leverage and by their targeted net long position. | |||||||||||||||||||||
• | Multi-strategy funds: These funds may utilize many strategies employed by specialized funds including distressed investing, equity long/short, merger arbitrage, convertible arbitrage, fixed income arbitrage and macro trading. | |||||||||||||||||||||
• | Event driven funds: Event driven strategies seek to deploy capital into specific securities whose returns are affected by a specific event that affects the value of one or more securities of a company. Returns for such securities are linked primarily to the specific outcome of the events and not by the overall direction of the bond or stock markets. Examples could include mergers and acquisitions (arbitrage), corporate restructurings and spin-offs and capital structure arbitrage. | |||||||||||||||||||||
• | Relative value credit funds: These funds seek to take exposure to credit-sensitive securities, long and/or short, based upon credit analysis of issuers and securities and credit market views. | |||||||||||||||||||||
• | Other private securities: These securities include strategic non-controlling minority investments in private asset management companies, claims handling companies and other service companies related to the insurance industry. | |||||||||||||||||||||
c) Net Investment Income | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Fixed maturity investments | $ | 149,449 | $ | 130,380 | $ | 157,437 | ||||||||||||||||
Equity securities | 17,581 | 19,076 | 17,080 | |||||||||||||||||||
Other invested assets: hedge funds and private equity | 12,564 | 8,226 | 6,772 | |||||||||||||||||||
Other invested assets: other private securities | 13,305 | 14,711 | — | |||||||||||||||||||
Cash and cash equivalents | 2,134 | 2,010 | 2,319 | |||||||||||||||||||
Expenses | (18,159 | ) | (16,839 | ) | (16,467 | ) | ||||||||||||||||
Net investment income | $ | 176,874 | $ | 157,564 | $ | 167,141 | ||||||||||||||||
Net investment income from other invested assets: other private securities included the distributed and undistributed net income from investments accounted for using the equity method of accounting. The income reported for other invested assets: other private securities for the year ended December 31, 2014 included a loss of $9,348 recorded for an equity method investment due to impairment charges that it recorded. | ||||||||||||||||||||||
d) Components of Realized Gains and Losses | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Gross realized gains on sale of invested assets | $ | 195,390 | $ | 213,618 | $ | 183,592 | ||||||||||||||||
Gross realized losses on sale of invested assets | (48,239 | ) | (106,321 | ) | (51,702 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) on derivatives | (39,007 | ) | 9,485 | (3,608 | ) | |||||||||||||||||
Mark-to-market gains (losses): | ||||||||||||||||||||||
Debt securities, trading | (1,675 | ) | (117,577 | ) | 106,328 | |||||||||||||||||
Equity securities, trading | 413 | 4,288 | 33,018 | |||||||||||||||||||
Other invested assets, trading | (17,925 | ) | 56,032 | 38,808 | ||||||||||||||||||
Net realized investment gains | $ | 88,957 | $ | 59,525 | $ | 306,436 | ||||||||||||||||
Proceeds from sale of available for sale securities | $ | — | $ | — | $ | 236,336 | ||||||||||||||||
e) Pledged Assets | ||||||||||||||||||||||
As of December 31, 2014 and 2013, $3,585,792 and $2,894,401, respectively, of cash and cash equivalents and investments were deposited, pledged or held in trust accounts in favor of ceding companies and other counterparties or government authorities to comply with reinsurance contract provisions and insurance laws. | ||||||||||||||||||||||
In addition, as of December 31, 2014 and 2013, a further $571,750 and $1,053,632, respectively, of cash and cash equivalents and investments were pledged as collateral for the Company’s letter of credit facilities. See Note 10(f) for details on the Company’s credit facilities. |
Derivative_Instruments
Derivative Instruments | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Derivative instruments | DERIVATIVE INSTRUMENTS | |||||||||||||||||||||||||||||||
As of December 31, 2014 and 2013, none of the Company’s derivatives were designated as hedges for accounting purposes. The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheets: | ||||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Asset | Asset | Liability | Liability | Asset | Asset | Liability | Liability | |||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||
Foreign exchange contracts | $ | 33,875 | $ | 1,274 | $ | 167,376 | $ | 991 | $ | 294,788 | $ | 6,254 | $ | 122,439 | $ | 1,176 | ||||||||||||||||
Interest rate swaps | — | — | 571,500 | 683 | 491,400 | 6,829 | 40,000 | 4,214 | ||||||||||||||||||||||||
Total derivatives | $ | 33,875 | $ | 1,274 | $ | 738,876 | $ | 1,674 | $ | 786,188 | $ | 13,083 | $ | 162,439 | $ | 5,390 | ||||||||||||||||
Derivative assets and derivative liabilities are classified within “other assets” or “accounts payable and accrued liabilities” on the consolidated balance sheets. | ||||||||||||||||||||||||||||||||
The following table provides the net realized and unrealized (losses) gains on derivatives not designated as hedges recorded on the consolidated income statements: | ||||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 897 | $ | 1,274 | $ | (749 | ) | |||||||||||||||||||||||||
Total included in foreign exchange loss | 897 | 1,274 | (749 | ) | ||||||||||||||||||||||||||||
Put options | 494 | (3,822 | ) | (2,222 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | 3,538 | 3,054 | (1,024 | ) | ||||||||||||||||||||||||||||
Interest rate swaps | (45,427 | ) | 5,591 | — | ||||||||||||||||||||||||||||
Interest rate futures | 2,388 | 4,662 | (362 | ) | ||||||||||||||||||||||||||||
Total included in net realized investment gains | (39,007 | ) | 9,485 | (3,608 | ) | |||||||||||||||||||||||||||
Total realized and unrealized (losses) gains on derivatives | $ | (38,110 | ) | $ | 10,759 | $ | (4,357 | ) | ||||||||||||||||||||||||
The loss related to interest rate swap contracts for the year ended December 31, 2014 was the result of selling interest rate swap contracts to reduce the duration of the investment portfolio. Given the decrease in interest rates during the year, the Company recorded a loss related to these interest rate swap contracts. | ||||||||||||||||||||||||||||||||
Derivative Instruments Not Designated as Hedging Instruments | ||||||||||||||||||||||||||||||||
The Company is exposed to foreign currency risk in its investment portfolio. Accordingly, the fair values of the Company’s investment portfolio are partially influenced by the change in foreign exchange rates. These foreign currency hedging activities have not been designated as specific hedges for financial reporting purposes. | ||||||||||||||||||||||||||||||||
The Company’s insurance and reinsurance subsidiaries and branches operate in various foreign countries and consequently the Company’s underwriting portfolio is exposed to foreign currency risk. The Company manages foreign currency risk by seeking to match liabilities under the insurance policies and reinsurance contracts that it writes and that are payable in foreign currencies with cash and investments that are denominated in such currencies. When necessary, the Company may also use derivatives to economically hedge unmatched foreign currency exposures, specifically forward contracts and currency options. For example, during 2014 the Company purchased a forward contract to economically hedge a portion of its foreign currency exposure related to the consideration to be paid for the Hong Kong and Singapore operations of RSA. | ||||||||||||||||||||||||||||||||
The Company also purchases and sells interest rate future and interest rate swap contracts to actively manage the duration and yield curve positioning of its fixed income portfolio. Interest rate futures and interest rate swaps can efficiently increase or decrease the overall duration of the portfolio. Additionally, interest rate future and interest rate swap contracts can be utilized to obtain the desired position along the yield curve in order to protect against certain future yield curve shapes. | ||||||||||||||||||||||||||||||||
The Company also purchases options to actively manage the Company’s equity portfolio. |
Fair_Value_Of_Financial_Instru
Fair Value Of Financial Instruments | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair value of financial instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS | |||||||||||||||||||
In accordance with U.S. GAAP, fair value is defined as 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. There is a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon whether the inputs to the valuation of an asset or liability are observable or unobservable in the market at the measurement date, with quoted market prices being the highest level (Level 1) and unobservable inputs being the lowest level (Level 3). A fair value measurement will fall within the level of the hierarchy based on the input that is significant to determining such measurement. The three levels are defined as follows: | ||||||||||||||||||||
• | Level 1: Observable inputs to the valuation methodology that are quoted prices (unadjusted) for identical assets or liabilities in active markets. | |||||||||||||||||||
• | Level 2: Observable inputs to the valuation methodology other than quoted market prices (unadjusted) for identical assets or liabilities in active markets. Level 2 inputs include quoted prices for similar assets and liabilities in active markets, quoted prices for identical assets in markets that are not active and inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. | |||||||||||||||||||
• | Level 3: Inputs to the valuation methodology that are unobservable for the asset or liability. | |||||||||||||||||||
The following table shows the fair value of the Company’s financial instruments and where in the fair value hierarchy the fair value measurements are included as of the dates indicated below: | ||||||||||||||||||||
31-Dec-14 | Carrying | Total fair | Level 1 | Level 2 | Level 3 | |||||||||||||||
amount | value | |||||||||||||||||||
Fixed maturity investments: | ||||||||||||||||||||
U.S. government and government agencies | $ | 1,610,502 | $ | 1,610,502 | $ | 1,499,347 | $ | 111,155 | $ | — | ||||||||||
Non-U.S. government and government agencies | 188,199 | 188,199 | — | 188,199 | — | |||||||||||||||
States, municipalities and political subdivisions | 170,567 | 170,567 | — | 170,567 | — | |||||||||||||||
Corporate debt | 2,165,393 | 2,165,393 | — | 2,165,393 | — | |||||||||||||||
Mortgage-backed | 1,263,517 | 1,263,517 | — | 1,081,734 | 181,783 | |||||||||||||||
Asset-backed | 670,832 | 670,832 | — | 615,419 | 55,413 | |||||||||||||||
Total fixed maturity investments | 6,069,010 | 6,069,010 | 1,499,347 | 4,332,467 | 237,196 | |||||||||||||||
Equity securities | 844,163 | 844,163 | 800,833 | — | 43,330 | |||||||||||||||
Other invested assets | 812,543 | 812,543 | — | — | 812,543 | |||||||||||||||
Total investments | $ | 7,725,716 | $ | 7,725,716 | $ | 2,300,180 | $ | 4,332,467 | $ | 1,093,069 | ||||||||||
Derivative assets: | ||||||||||||||||||||
Foreign exchange contracts | $ | 1,274 | $ | 1,274 | $ | — | $ | 1,274 | $ | — | ||||||||||
Derivative liabilities: | ||||||||||||||||||||
Foreign exchange contracts | $ | 991 | $ | 991 | $ | — | $ | 991 | $ | — | ||||||||||
Interest rate swaps | 683 | 683 | — | 683 | — | |||||||||||||||
Senior notes | $ | 798,802 | $ | 879,317 | $ | — | $ | 879,317 | $ | — | ||||||||||
Other long-term debt | $ | 19,213 | $ | 22,583 | $ | — | $ | 22,583 | $ | — | ||||||||||
31-Dec-13 | Carrying | Total fair | Level 1 | Level 2 | Level 3 | |||||||||||||||
amount | value | |||||||||||||||||||
Fixed maturity investments: | ||||||||||||||||||||
U.S. government and government agencies | $ | 1,676,788 | $ | 1,676,788 | $ | 1,370,088 | $ | 306,700 | $ | — | ||||||||||
Non-U.S. government and government agencies | 191,776 | 191,776 | — | 191,776 | — | |||||||||||||||
States, municipalities and political subdivisions | 231,555 | 231,555 | — | 231,555 | — | |||||||||||||||
Corporate debt | 2,202,267 | 2,202,267 | — | 2,202,267 | — | |||||||||||||||
Mortgage-backed | 1,292,502 | 1,292,502 | — | 1,145,164 | 147,338 | |||||||||||||||
Asset-backed | 505,910 | 505,910 | — | 412,497 | 93,413 | |||||||||||||||
Total fixed maturity investments | 6,100,798 | 6,100,798 | 1,370,088 | 4,489,959 | 240,751 | |||||||||||||||
Equity securities | 699,846 | 699,846 | 625,942 | — | 73,904 | |||||||||||||||
Other invested assets | 764,081 | 764,081 | — | — | 764,081 | |||||||||||||||
Total investments | $ | 7,564,725 | $ | 7,564,725 | $ | 1,996,030 | $ | 4,489,959 | $ | 1,078,736 | ||||||||||
Derivative assets: | ||||||||||||||||||||
Foreign exchange contracts | $ | 6,254 | $ | 6,254 | $ | — | $ | 6,254 | $ | — | ||||||||||
Interest rate swaps | 6,829 | 6,829 | — | 6,829 | — | |||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Foreign exchange contracts | $ | 1,176 | $ | 1,176 | $ | — | $ | 1,176 | $ | — | ||||||||||
Interest rate swaps | 4,214 | 4,214 | $ | — | 4,214 | $ | — | |||||||||||||
Senior notes | $ | 798,499 | $ | 897,601 | $ | — | $ | 897,601 | $ | — | ||||||||||
“Other invested assets” in the table above excludes other private securities that the Company did not measure at fair value, but are accounted for using the equity method of accounting. Derivative assets and derivative liabilities relating to foreign exchange contracts and interest rate swaps are classified within “other assets” or “accounts payable and accrued liabilities” on the consolidated balance sheets. | ||||||||||||||||||||
The following describes the valuation techniques used by the Company to determine the fair value of financial instruments held as of the balance sheet date. | ||||||||||||||||||||
Recurring Fair Value of Financial Instruments | ||||||||||||||||||||
U.S. government and government agencies: Comprised primarily of bonds issued by the U.S. Treasury, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation and the Federal National Mortgage Association. The fair values of the Company’s U.S. government securities are based on quoted market prices in active markets and are included in the Level 1 fair value hierarchy. The Company believes the market for U.S. Treasury securities is an actively traded market given the high level of daily trading volume. The fair values of U.S. government agency securities are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Non-U.S. government and government agencies: Comprised of fixed income obligations of non-U.S. governmental entities. The fair values of these securities are based on prices obtained from international indices and are included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
States, municipalities and political subdivisions: Comprised of fixed income obligations of U.S. domiciled state and municipality entities. The fair values of these securities are based on prices obtained from the new issue market, and are included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Corporate debt: Comprised of bonds issued by or loan obligations of corporations that are diversified across a wide range of issuers and industries. The fair values of corporate debt that are short-term are priced using spread above the LIBOR yield curve, and the fair value of corporate debt that are long-term are priced using the spread above the risk-free yield curve. The spreads are sourced from broker-dealers, trade prices and the new issue market. As the significant inputs used to price corporate debt are observable market inputs, the fair values of corporate debt are included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Mortgage-backed: Primarily comprised of residential and commercial mortgages originated by both U.S. government agencies (such as the Federal National Mortgage Association) and non-U.S. government agencies. The fair values of mortgage-backed securities originated by U.S. government agencies and non-U.S. government agencies are based on a pricing model that incorporates prepayment speeds and spreads to determine appropriate average life of mortgage-backed securities. The spreads are sourced from broker-dealers, trade prices and the new issue market. As the significant inputs used to price the mortgage-backed securities are observable market inputs, the fair values of these securities are included in the Level 2 fair value hierarchy, unless the significant inputs used to price the mortgage-backed securities are broker-dealer quotes and the Company is not able to determine if those quotes are based on observable market inputs, in which case the fair value is included in the Level 3 hierarchy. | ||||||||||||||||||||
Asset-backed: Principally comprised of bonds backed by pools of automobile loan receivables, home equity loans, credit card receivables and collateralized loan obligations originated by a variety of financial institutions. The fair values of asset-backed securities are priced using prepayment speed and spread inputs that are sourced from the new issue market or broker-dealer quotes. As the significant inputs used to price the asset-backed securities are observable market inputs, the fair values of these securities are included in the Level 2 fair value hierarchy, unless the significant inputs used to price the asset-backed securities are broker-dealer quotes and the Company is not able to determine if those quotes are based on observable market inputs, in which case the fair value is included in the Level 3 hierarchy. | ||||||||||||||||||||
Equity securities: Comprised of U.S. and foreign common and preferred stocks and mutual funds. Equities are generally included in the Level 1 fair value hierarchy as prices are obtained from market exchanges in active markets. Foreign mutual funds where the net asset value (“NAV”) is not provided on a daily basis are included in the Level 3 fair value hierarchy. | ||||||||||||||||||||
Other invested assets: Comprised of funds invested in a range of diversified strategies. In accordance with U.S. GAAP, the fair values of the funds are based on the NAV of the funds as reported by the fund manager. The fair value of these investments are included in Level 3 fair value hierarchy as the Company believes NAV is an unobservable input and these securities are not redeemable in the near term. The Company does not measure its investments that are accounted for using the equity method of accounting at fair value. | ||||||||||||||||||||
Derivative instruments: The fair value of foreign exchange contracts and interest rate futures and swaps are priced from quoted market prices for similar exchange-traded derivatives and pricing valuation models that utilize independent market data inputs. The fair value of derivatives are included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Senior notes: The fair value of the senior notes is based on reported trades. The fair value of the senior notes is included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Other long-term debt: Comprised of the mortgage and credit facility associated with the purchase of office space in Switzerland. The fair value of the other long-term debt is based on the value of the debt using current interest rates. The fair value of the long-term debt is included in the Level 2 fair value hierarchy. | ||||||||||||||||||||
Non-recurring Fair Value of Financial Instruments | ||||||||||||||||||||
The Company measures the fair value of certain assets on a non-recurring basis, generally quarterly, annually, or when events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. These assets include investments accounted for using the equity method, goodwill and intangible assets. The Company uses a variety of techniques to measure the fair value of these assets when appropriate, as described below: | ||||||||||||||||||||
Investments accounted for using the equity method: When the Company determines that the carrying value of these assets may not be recoverable, the Company records the assets at fair value with the loss recognized in income. In such cases, the Company measures the fair value of these assets using the techniques discussed above. | ||||||||||||||||||||
Goodwill and Intangible Assets: The Company tests goodwill and intangible assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable, but at least annually for goodwill and indefinite-lived intangibles. When the Company determines that goodwill and indefinite-lived intangible assets may be impaired, the Company uses techniques, including discounted expected future cash flows and market multiple models, to measure fair value. | ||||||||||||||||||||
Rollforward of Level 3 Financial Instruments | ||||||||||||||||||||
The following is a rollforward of the beginning and ending balance of financial instruments using significant unobservable inputs (Level 3): | ||||||||||||||||||||
Fair value measurement using significant | ||||||||||||||||||||
unobservable inputs (Level 3): | ||||||||||||||||||||
Other invested | Mortgage- | Asset-backed | Equities | |||||||||||||||||
assets | backed | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Opening balance | $ | 764,081 | $ | 147,338 | $ | 93,413 | $ | 73,904 | ||||||||||||
Realized and unrealized gains (losses) included in net income | 64,566 | 5,505 | (2,068 | ) | (1,277 | ) | ||||||||||||||
Purchases | 331,099 | 100,019 | 4,628 | — | ||||||||||||||||
Sales | (347,203 | ) | (71,141 | ) | (24,463 | ) | (29,297 | ) | ||||||||||||
Transfers into Level 3 from Level 2 | — | 1,505 | 28,813 | — | ||||||||||||||||
Transfers out of Level 3 into Level 2 (1) | — | (1,443 | ) | (44,910 | ) | — | ||||||||||||||
Ending balance | $ | 812,543 | $ | 181,783 | $ | 55,413 | $ | 43,330 | ||||||||||||
Realized and unrealized losses (gains) included in net income for investments still held as of December 31, 2014 | $ | (17,925 | ) | $ | 4,341 | $ | (116 | ) | $ | (1,277 | ) | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Opening balance | $ | 655,888 | $ | 167,825 | $ | 62,246 | $ | 54,680 | ||||||||||||
Realized and unrealized gains included in net income | 83,621 | (7,658 | ) | (1,176 | ) | 9,224 | ||||||||||||||
Purchases | 287,977 | 83,455 | 50,669 | 10,000 | ||||||||||||||||
Sales | (263,405 | ) | (92,985 | ) | (28,393 | ) | — | |||||||||||||
Transfers into Level 3 from Level 2 | — | 5,393 | 10,067 | — | ||||||||||||||||
Transfers out of Level 3 into Level 2 (1) | — | (8,692 | ) | — | — | |||||||||||||||
Ending balance | $ | 764,081 | $ | 147,338 | $ | 93,413 | $ | 73,904 | ||||||||||||
Realized and unrealized gains (losses) included in net income for investments still held as of December 31, 2013 | $ | 62,104 | $ | (4,914 | ) | $ | (360 | ) | $ | 9,225 | ||||||||||
(1) Transfers out of Level 3 are primarily attributable to the availability of market observable information. | ||||||||||||||||||||
The Company attempts to verify the significant inputs used by broker-dealers in determining the fair value of the securities priced by them. If the Company could not obtain sufficient information to determine if the broker-dealers were using significant observable inputs, such securities have been transferred to the Level 3 fair value hierarchy. The Company believes the prices obtained from the broker-dealers are the best estimate of fair value of the securities being priced as the broker-dealers are typically involved in the initial pricing of the security, and the Company has compared the price per the broker-dealer to other pricing sources and noted no material differences. The Company recognizes transfers between levels at the end of the reporting period. There were no transfers between Level 1 and Level 2 during the period. | ||||||||||||||||||||
The Company’s external investment accounting service provider receives prices from internationally recognized independent pricing services to measure the fair values of its fixed maturity investments. Pricing sources are evaluated and selected in a manner to ensure that the most reliable sources are used. The independent pricing sources obtain market quotations and actual transaction prices for securities that have quoted prices in active markets. Each pricing service has its own proprietary method for determining the fair value of securities that are not actively traded. In general, these methods involve the use of “matrix pricing” in which the independent pricing service uses observable market inputs, including, but not limited to, reported trades, benchmark yields, broker-dealer quotes, interest rates, prepayment speeds, default rates and such other inputs as are available from market sources to determine a reasonable fair value. | ||||||||||||||||||||
All of the Company’s securities classified as Level 3, other than investments in other invested assets, are valued based on unadjusted broker-dealer quotes. This includes less liquid securities such as lower quality asset-backed securities, commercial mortgage-backed securities and residential mortgage-backed securities. The primary valuation inputs include monthly payment information, the probability of default, loss severity rates and estimated prepayment rates. Significant changes in these inputs in isolation would result in a significantly lower or higher fair value measurement. In general, a change in the assumption of the probability of default is accompanied by a directionally similar change in the assumption used for the loss severity in an event of default and prepayment rates. | ||||||||||||||||||||
The Company records the unadjusted price provided and validates this price through a process that includes, but is not limited to monthly and/or quarterly: (i) comparison of prices between two independent sources, with significant differences requiring additional price sources; (ii) quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to their target benchmark, with significant differences identified and investigated); (iii) evaluation of methodologies used by external parties to calculate fair value, including a review of the inputs used for pricing; (iv) comparing the price to the Company’s knowledge of the current investment market; and (v) back-testing, which includes randomly selecting purchased or sold securities and comparing the executed prices to the fair value estimates from the pricing service. In addition to internal controls, management relies on the effectiveness of the valuation controls in place at the Company’s external investment accounting service provider (supported by a Statement on Standards for Attestation Engagements No. 16 report) in conjunction with regular discussion and analysis of the investment portfolio’s structure and performance. |
Reserve_For_Losses_And_Loss_Ex
Reserve For Losses And Loss Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Reserve for losses and loss expenses | RESERVE FOR LOSSES AND LOSS EXPENSES | |||||||||||
The reserve for losses and loss expenses consists of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Outstanding loss reserves | $ | 1,514,051 | $ | 1,520,867 | ||||||||
Reserves for losses incurred but not reported | 4,367,114 | 4,245,662 | ||||||||||
Reserve for losses and loss expenses | $ | 5,881,165 | $ | 5,766,529 | ||||||||
The table below is a reconciliation of the beginning and ending liability for unpaid losses and loss expenses. Losses incurred and paid are reflected net of reinsurance recoverables. | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Gross liability at beginning of year | $ | 5,766,529 | $ | 5,645,549 | $ | 5,225,143 | ||||||
Reinsurance recoverable at beginning of year | (1,234,504 | ) | (1,141,110 | ) | (1,002,919 | ) | ||||||
Net liability at beginning of year | 4,532,025 | 4,504,439 | 4,222,224 | |||||||||
Net losses incurred related to: | ||||||||||||
Current year | 1,411,797 | 1,303,573 | 1,309,613 | |||||||||
Prior years | (212,607 | ) | (180,331 | ) | (170,349 | ) | ||||||
Total incurred | 1,199,190 | 1,123,242 | 1,139,264 | |||||||||
Net paid losses related to: | ||||||||||||
Current year | 171,824 | 115,669 | 117,123 | |||||||||
Prior years | 1,001,537 | 973,987 | 743,844 | |||||||||
Total paid | 1,173,361 | 1,089,656 | 860,967 | |||||||||
Foreign exchange revaluation | (16,945 | ) | (6,000 | ) | 3,918 | |||||||
Net liability at end of year | 4,540,909 | 4,532,025 | 4,504,439 | |||||||||
Reinsurance recoverable at end of year | 1,340,256 | 1,234,504 | 1,141,110 | |||||||||
Gross liability at end of year | $ | 5,881,165 | $ | 5,766,529 | $ | 5,645,549 | ||||||
For the year ended December 31, 2014, the Company recognized net favorable reserve development in each of its operating segments due to actual loss emergence being lower than initially expected. The net favorable prior year reserve development in the North American Insurance segment primarily related to the 2006, 2007, 2009 and 2010 loss years partially offset by unfavorable reserve development from the 2011 to 2013 loss years. The net favorable prior year reserve development in the Global Markets Insurance segment was primarily due to favorable reserve development for the 2008 to 2010 loss years. The net favorable reserve development in the Reinsurance segment was primarily due to benign global property catastrophe activity for the 2013 loss year. | ||||||||||||
For the year ended December 31, 2013, the Company recognized net favorable reserve development in each of its operating segments due to actual loss emergence being lower than initially expected. The net favorable prior year reserve development in the North American Insurance segment primarily related to the 2006 through 2008 loss years partially offset by unfavorable reserve development from the 2010 and 2011 loss years. The net favorable prior year reserve development in the Global Markets Insurance segment was primarily due to favorable reserve development for the 2006 to 2008 loss years. The net favorable prior year reserve development in the Reinsurance segment was primarily due to favorable reserve development for the 2005 to 2008 loss years. | ||||||||||||
For the year ended December 31, 2012, the Company had net favorable reserve development in each of its operating segments due to actual loss emergence being lower than initially expected. The net favorable prior year reserve development in the North American Insurance segment primarily related to the 2006 through 2010 loss years partially offset by unfavorable reserve development from the 2011 and 2012 loss years. The net favorable prior year reserve development in the Global Markets Insurance segment was primarily due to favorable reserve development for the 2006 to 2010 loss years. The net favorable reserve development in the Reinsurance segment was primarily due to lower than expected loss activity for the 2012 loss year. | ||||||||||||
While the Company has experienced favorable development in its insurance and reinsurance lines, there is no assurance that conditions and trends that have affected the development of liabilities in the past will continue. It is not appropriate to extrapolate future redundancies based on prior years’ development. The methodology of estimating loss reserves is periodically reviewed to ensure that the key assumptions used in the actuarial models continue to be appropriate. |
Ceded_Reinsurance
Ceded Reinsurance | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||
Ceded reinsurance | CEDED REINSURANCE | |||||||||||||||||
The Company purchases reinsurance from third-party reinsurance companies to reduce its net exposure to losses. Reinsurance provides for recovery of a portion of gross losses and loss expenses from these reinsurers. The Company remains liable to the extent that its reinsurers do not meet their obligations under the related reinsurance contracts. The Company therefore regularly evaluates the financial condition of its reinsurers and monitors concentration of credit risk. The Company believes that as of December 31, 2014, its reinsurers are able to meet, and will meet, all of their obligations under the agreements. No material provision has been made for unrecoverable reinsurance as of December 31, 2014 and 2013. The amount of reinsurance recoverable is as follows: | ||||||||||||||||||
2014 | 2013 | |||||||||||||||||
OSLR recoverable | $ | 232,545 | $ | 225,796 | ||||||||||||||
IBNR recoverable | 1,107,711 | 1,008,708 | ||||||||||||||||
Reinsurance recoverable | $ | 1,340,256 | $ | 1,234,504 | ||||||||||||||
Reinsurance recoverable on paid losses | $ | 86,075 | $ | 76,099 | ||||||||||||||
Direct, assumed and ceded premiums written and earned and losses and loss expenses incurred are as follows: | ||||||||||||||||||
Premiums | Premiums | Losses and | ||||||||||||||||
Written | Earned | Loss | ||||||||||||||||
Expenses | ||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Direct | $ | 1,996,831 | $ | 1,835,186 | $ | 1,031,284 | ||||||||||||
Assumed | 938,594 | 941,182 | 464,728 | |||||||||||||||
Ceded | (613,350 | ) | (593,610 | ) | (296,822 | ) | ||||||||||||
$ | 2,322,075 | $ | 2,182,758 | $ | 1,199,190 | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Direct | $ | 1,804,910 | $ | 1,664,343 | $ | 936,084 | ||||||||||||
Assumed | 933,754 | 896,088 | 430,627 | |||||||||||||||
Ceded | (618,183 | ) | (554,598 | ) | (243,469 | ) | ||||||||||||
$ | 2,120,481 | $ | 2,005,833 | $ | 1,123,242 | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Direct | $ | 1,569,021 | $ | 1,446,086 | $ | 877,961 | ||||||||||||
Assumed | 760,250 | 743,575 | 513,871 | |||||||||||||||
Ceded | (491,448 | ) | (440,763 | ) | (252,568 | ) | ||||||||||||
$ | 1,837,823 | $ | 1,748,898 | $ | 1,139,264 | |||||||||||||
Of the premiums ceded during the years ended December 31, 2014, 2013 and 2012, approximately 42%, 45% and 48% were ceded to four reinsurers, respectively. | ||||||||||||||||||
The Company actively manages its reinsurance exposures by generally selecting reinsurers having a credit rating of A- or higher and monitoring the overall credit quality of its reinsurers to ensure the recoverables will be collected. | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
A.M. Best | Reinsurance | Percentage | A.M. Best | Reinsurance | Percentage | |||||||||||||
Rating | Recoverable | of Total | Rating | Recoverable | of Total | |||||||||||||
Munich Re | A+ | $ | 285,918 | 21.3 | % | A+ | $ | 214,070 | 17.3 | % | ||||||||
Axis Capital | A+ | 148,371 | 11.1 | % | A+ | 143,063 | 11.6 | % | ||||||||||
Arch Re | A+ | 128,421 | 9.6 | % | A+ | 143,037 | 11.6 | % | ||||||||||
Markel | A | 86,595 | 6.5 | % | A | 86,462 | 7 | % | ||||||||||
XL Group | A | 78,377 | 5.8 | % | A | 68,857 | 5.6 | % | ||||||||||
Top five reinsurers | 727,682 | 54.3 | % | 655,489 | 53.1 | % | ||||||||||||
Other reinsurers’ balances | 612,574 | 45.7 | % | 579,015 | 46.9 | % | ||||||||||||
Total reinsurance recoverable | $ | 1,340,256 | 100 | % | $ | 1,234,504 | 100 | % | ||||||||||
Approximately 99% of ceded reserves were recoverable from reinsurers who had an A.M. Best rating of “A-” or higher as of December 31, 2014 and 2013. |
Funds_Held
Funds Held | 12 Months Ended |
Dec. 31, 2014 | |
Other Insurance Industry Disclosures [Abstract] | |
Funds held | FUNDS HELD |
The Company has a minority interest in Aeolus Capital Management Ltd. ("ACM"), an affiliate of Aeolus Re, Ltd., a Bermuda-based property catastrophe reinsurer ("Aeolus Re"), which it accounts for under the equity method. ACM manages capital on behalf of investors seeking to invest in the property catastrophe reinsurance market. | |
The Company has also entered into a collateralized property catastrophe quota share reinsurance contract with Aeolus Re, whereby the Company assumes property catastrophe business underwritten by Aeolus Re. As part of the agreement to purchase the minority interest in ACM, the Company provided a multi-year capital commitment to support the business being underwritten by Aeolus Re. To the extent that capital is not utilized to support the business being underwritten by Aeolus Re, as all obligations have been settled, the capital is returned to the Company. To the extent the losses are in excess of the premiums written, the capital is utilized to pay the claims. The capital commitment is recorded in "funds held" on the consolidated balance sheets. The funds held balance as of December 31, 2014 and 2013 was $708,047 and $621,567, respectively. For the years ended December 31, 2014, 2013 and 2012, the premiums written assumed by the Company through the collateralized property catastrophe quota share reinsurance contract with Aeolus Re were $87,275, $83,300 and $34,597, respectively. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Goodwill and intangible assets | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||||
The following table shows the Company’s goodwill and intangible assets at December 31, 2014 and 2013: | ||||||||||||||||||||
Goodwill | Indefinite-Lived | Finite-Lived Intangible Assets | ||||||||||||||||||
Intangible | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Net Carrying | Net Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||
Value | Value | Value | Amortization | Value | ||||||||||||||||
Balance at December 31, 2012 | $ | 268,376 | $ | 23,920 | $ | 41,334 | $ | (13,890 | ) | $ | 27,444 | |||||||||
Amortization of intangible assets | — | — | — | (2,533 | ) | (2,533 | ) | |||||||||||||
Balance at December 31, 2013 | 268,376 | 23,920 | 41,334 | (16,423 | ) | 24,911 | ||||||||||||||
Additions | 9,882 | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | — | (2,533 | ) | (2,533 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 278,258 | $ | 23,920 | $ | 41,334 | $ | (18,956 | ) | $ | 22,378 | |||||||||
The Company acquired the remaining interest in a claims administration services company it did not own in 2014 and recorded goodwill of $9,882 related to the transaction. The goodwill related to this acquisition has been allocated to the U.S. direct insurance operations of the North American Insurance segment. | ||||||||||||||||||||
Goodwill of $274,341 is allocated to the U.S. direct insurance operations of the North American Insurance segment while the remainder of the goodwill of $3,917 is allocated to the Reinsurance segment. The impairment reviews for goodwill and indefinite-lived intangibles did not result in the recognition of impairment losses for the years ended December 31, 2014, 2013 and 2012. The net carrying value of the goodwill is net of accumulated impairment charges of $156 that occurred prior to December 31, 2012. | ||||||||||||||||||||
The net carrying value of the finite-lived intangible assets is net of accumulated impairment charges of $6,866 that occurred prior to December 31, 2012. The remaining finite-lived intangible assets as of December 31, 2013 will be amortized over an expected remaining useful life of 8.8 years. The estimated amortization expense for each of the five succeeding fiscal years and thereafter related to the Company’s finite-lived intangible assets is as follows: | ||||||||||||||||||||
Amount | ||||||||||||||||||||
2015 | $ | 2,533 | ||||||||||||||||||
2016 | 2,533 | |||||||||||||||||||
2017 | 2,533 | |||||||||||||||||||
2018 | 2,533 | |||||||||||||||||||
2019 | 2,533 | |||||||||||||||||||
2020 and thereafter | 9,713 | |||||||||||||||||||
Total | $ | 22,378 | ||||||||||||||||||
Debt_and_Financing_Arrangement
Debt and Financing Arrangements | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Debt and financing arrangements | DEBT AND FINANCING ARRANGEMENTS | |||||||
a) Financing Structure | ||||||||
The following table shows the Company’s financing structure: | ||||||||
Outstanding(1) | Balance(2) | |||||||
31-Dec-14 | ||||||||
2006 Senior notes due 2016 | $ | 500,000 | $ | 499,690 | ||||
2010 Senior notes due 2020 | 300,000 | 299,112 | ||||||
Swiss office building mortgage | 14,157 | 14,157 | ||||||
Swiss office building credit facility | 5,056 | 5,056 | ||||||
$1,000,000 Secured letter of credit facility — uncommitted | 497,332 | — | ||||||
$150,000 Secured letter of credit facility — committed (3) | — | — | ||||||
$ | 1,316,545 | $ | 818,015 | |||||
31-Dec-13 | ||||||||
2006 Senior notes due 2016 | $ | 500,000 | $ | 499,512 | ||||
2010 Senior notes due 2020 | 300,000 | 298,987 | ||||||
$1,000,000 Secured letter of credit facility — uncommitted | 707,915 | — | ||||||
$450,000 Secured letter of credit facility — committed | 86,102 | — | ||||||
$ | 1,594,017 | $ | 798,499 | |||||
-1 | Indicates utilization of commitment amount, not drawn borrowings. | |||||||
-2 | Represents the principal amount borrowed, net of unamortized discount. | |||||||
-3 | The commitment was reduced from $450,000 to $150,000 during 2014. | |||||||
b) 2006 Senior Notes Due 2016 | ||||||||
In 2006, Allied World Assurance Company Holdings, Ltd, a Bermuda company ("Allied World Bermuda") issued $500,000 aggregate principal amount of 7.50% Senior Notes due August 1, 2016 (the “2006 Senior Notes”), with interest payable semi-annually commencing on February 1, 2007. The 2006 Senior Notes are Allied World Bermuda’s unsecured and unsubordinated obligations and rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness. The 2006 Senior Notes can be redeemed by Allied World Bermuda prior to maturity subject to payment of a “make-whole” premium. Allied World Bermuda has no current expectations of redeeming the notes prior to maturity. The 2006 Senior Notes include covenants and events of default that are usual and customary, but do not contain any financial covenants. | ||||||||
c) 2010 Senior Notes Due 2020 | ||||||||
In November 2010, Allied World Bermuda issued $300,000 aggregate principal amount of 5.50% Senior Notes due November 15, 2020 (the “2010 Senior Notes”), with interest on the notes payable semi-annually commencing on May 15, 2011. The 2010 Senior Notes are Allied World Bermuda’s unsecured and unsubordinated obligations and rank equally in right of payment with all existing and future unsecured and unsubordinated indebtedness. Allied World Bermuda may redeem the 2010 Senior Notes at any time or from time to time in whole or in part at a redemption price equal to the greater of the principal amount of the 2010 Senior Notes to be redeemed or a make-whole price, plus accrued and unpaid interest. Allied World Bermuda has no current expectations of redeeming the notes prior to maturity. The 2010 Senior Notes include covenants and events of default that are usual and customary, but do not contain any financial covenants. | ||||||||
d) Swiss Office Building Mortgage | ||||||||
In 2014, the Company entered into a 20-year mortgage commitment with a Swiss bank for the construction of a company-used office building in Zug, Switzerland. The total proceeds received in 2014 under the mortgage are $14,157 (CHF 14,000) with a fixed annual interest rate of 3.2% payable quarterly. An additional $4,044 (CHF 4,000) of proceeds from the mortgage will be drawn during the first quarter of 2015. The mortgage payments will be $303 (CHF 300) per year, plus accrued interest, for the first 19 years with the remaining balance payable at the end of the mortgage. The outstanding balance of the mortgage is included in "other long-term debt" on the consolidated balance sheets. | ||||||||
e) Swiss Office Building Credit Facility | ||||||||
In conjunction with the above mortgage commitment, the Company entered into a three year credit facility with a Swiss bank that provides up to $5,056 (CHF 5,000) for general corporate purposes, however the Company will use the proceeds from the credit facility to fund the purchase of the office building in Zug, Switzerland. The Company utilized the full commitment of the credit facility to finance the purchase of the Swiss office space. The interest rate for the credit facility is 2.5%. The outstanding balance of the credit facility is included in "other long-term debt" on the consolidated balance sheets. | ||||||||
f) Credit Facilities | ||||||||
In the normal course of its operations, the Company enters into agreements with financial institutions to obtain secured and unsecured credit facilities. | ||||||||
Allied World Bermuda has a collateralized amended letter of credit facility with Citibank Europe plc. that has been and will continue to be used to issue standby letters of credit. The maximum aggregate amount available under this credit facility as of December 31, 2014 and 2013 is $1,000,000 on an uncommitted basis. | ||||||||
On November 27, 2007, Allied World Bermuda entered into an $800,000 five-year senior credit facility (the “Credit Facility”) with a syndication of lenders. The Credit Facility consisted of a $400,000 secured letter of credit facility for the issuance of standby letters of credit (the “Secured Facility”) and a $400,000 unsecured facility for the making of revolving loans and for the issuance of standby letters of credit. | ||||||||
On June 7, 2012, Allied World Bermuda amended the Secured Facility. The amended $450,000 four-year secured credit facility (the “Amended Secured Credit Facility”) is primarily used for the issuance of standby letters of credit to support obligations in connection with the insurance and reinsurance business of Allied World Bermuda and its subsidiaries. A portion of the facility may also be used for revolving loans for general corporate and working capital purposes, up to a maximum of $150,000. Allied World Bermuda may request that existing lenders under the Amended Secured Credit Facility make additional commitments from time to time, up to $150,000, subject to approval by the lenders. The Amended Secured Credit Facility contains representations, warranties and covenants customary for similar bank loan facilities, including certain covenants that, among other things, require the Company to maintain a certain leverage ratio and financial strength rating. | ||||||||
On November 12, 2014, Allied World Bermuda gave irrevocable notice to the administrative agent under the Amended Secured Credit Facility to reduce the aggregate commitment from $450,000 to $150,000. All other material items of the Amended Secured Credit Facility remain unchanged. | ||||||||
g) Debt Maturities | ||||||||
The following table reflects the Company’s debt maturities, which includes its senior notes and other long-term debt: | ||||||||
Amount | ||||||||
2015 | $ | 228 | ||||||
2016 | 500,303 | |||||||
2017 | 5,359 | |||||||
2018 | 303 | |||||||
2019 | 303 | |||||||
2020 and thereafter | 312,717 | |||||||
Total | $ | 819,213 | ||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Income taxes | INCOME TAXES | |||||||||||
Under Swiss law, a resident company is subject to income tax at the federal, cantonal and communal levels that is levied on net income. Income attributable to permanent establishments or real estate located abroad is excluded from the Swiss tax base. Allied World Switzerland is a holding company and, therefore, is exempt from cantonal and communal income tax. As a result, Allied World Switzerland is subject to Swiss income tax only at the federal level. Allied World Switzerland is resident of the Canton of Zug and, as such, is subject to an annual cantonal and communal capital tax on the taxable equity of Allied World Switzerland in Switzerland. Allied World Switzerland has a Swiss operating company resident in the Canton of Zug. The operating company is subject to federal, cantonal and communal income tax and to annual cantonal and communal capital tax. | ||||||||||||
Under current Bermuda law, Allied World Bermuda and its Bermuda subsidiaries are not required to pay taxes in Bermuda on either income or capital gains. Allied World Bermuda and Allied World Assurance Company, Ltd have received an assurance from the Bermuda Minister of Finance under the Exempted Undertakings Tax Protection Act 1966 of Bermuda, that in the event of any such taxes being imposed, Allied World Bermuda and Allied World Assurance Company, Ltd will be exempted until March 2035. | ||||||||||||
Certain subsidiaries of Allied World Switzerland file U.S. federal income tax returns and various U.S. state income tax returns, as well as income tax returns in Canada, Hong Kong, Ireland, Singapore, Switzerland and the United Kingdom. The Company has open tax years that are potentially subject to examinations by local tax authorities, in the following major tax jurisdictions: the U.S., 2011 to 2014; the United Kingdom, 2013 and 2014; Ireland, 2010 to 2014; Switzerland, 2013 to 2014; Hong Kong, 2009 to 2014; and Singapore, 2010 to 2014. In December 2014, the Company received notice that the U.S. Internal Revenue Service will conduct an audit of the 2012 tax return of the Company's U.S. subsidiaries. To the best of the Company’s knowledge, there are no other examinations pending by any other tax authority. | ||||||||||||
Management has deemed all material tax positions to have a greater than 50% likelihood of being sustained based on technical merits if challenged. The Company does not expect any material unrecognized tax benefits within 12 months of December 31, 2014. | ||||||||||||
The components of income tax expense are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current income tax expense | $ | 26,768 | $ | 21,669 | $ | 18,239 | ||||||
Deferred income tax expense (benefit) | 3,755 | (11,889 | ) | 201 | ||||||||
Income tax expense | $ | 30,523 | $ | 9,780 | $ | 18,440 | ||||||
Our income is primarily sourced from our Bermuda, U.S., European and Asia Pacific operations. The income before income taxes for these operations are as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Non-U.S. | $ | 447,875 | $ | 401,778 | $ | 474,412 | ||||||
United States | 72,907 | 25,882 | 37,035 | |||||||||
Income before income taxes | $ | 520,782 | $ | 427,660 | $ | 511,447 | ||||||
Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The significant components of the net deferred tax assets are as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Reserve for losses and loss expenses | $ | 21,644 | $ | 22,567 | ||||||||
Equity compensation | 15,316 | 15,828 | ||||||||||
Unearned premium | 16,921 | 14,299 | ||||||||||
Deferred acquisition costs | 11,184 | 10,604 | ||||||||||
Other-than-temporary impairments | — | 407 | ||||||||||
Net loss carryforward | 7,958 | 7,642 | ||||||||||
Total deferred tax assets | 73,023 | 71,347 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (13,856 | ) | (14,743 | ) | ||||||||
Realized gains | (12,819 | ) | (6,980 | ) | ||||||||
Depreciation | (2,513 | ) | (2,942 | ) | ||||||||
Unrealized appreciation and timing differences on investments | (94 | ) | (56 | ) | ||||||||
Market discount on bonds | (740 | ) | (271 | ) | ||||||||
Other | (2,965 | ) | (1,244 | ) | ||||||||
Total deferred tax liabilities | (32,987 | ) | (26,236 | ) | ||||||||
Net deferred taxes before valuation allowance | 40,036 | 45,111 | ||||||||||
Valuation allowance | (6,421 | ) | (7,642 | ) | ||||||||
Net deferred tax assets | $ | 33,615 | $ | 37,469 | ||||||||
The valuation allowance reported in the current period relates to net loss carryforwards for the European and Asia Pacific operations as it is unlikely those operations will have sufficient income to utilize the net loss carryforwards in the near term. The change in valuation allowance of $1,221 was included in income tax expense for the year ended December 31, 2014. The capital loss carryforwards from the United Kingdom and Asia Pacific operations do not expire as along as minimum capital requirements are maintained. The net loss carryforwards from the Switzerland operation expire between 2020 and 2021. | ||||||||||||
Current tax receivable and payable has been included in “other assets” and “accounts payable and accrued liabilities” on the consolidated balance sheets, respectively. Current taxes receivable or payable was as follows: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current tax receivable | $ | 8,640 | $ | 11,684 | ||||||||
Current tax payable | $ | 829 | $ | 1,452 | ||||||||
The expected tax provision has been calculated using the pre-tax accounting income in each jurisdiction multiplied by that jurisdiction’s applicable statutory tax rate. The reconciliation between the Company’s effective tax rate on pre-tax accounting income and the expected tax rate is as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected tax rate | 7.8 | % | 7.8 | % | 7.8 | % | ||||||
Income not subject to income tax | (7.1 | )% | (8.2 | )% | (7.3 | )% | ||||||
Foreign taxes at local expected tax rates | 4.4 | % | 1.4 | % | 2.1 | % | ||||||
Disallowed expenses and capital allowances | 0.2 | % | 1 | % | 0.7 | % | ||||||
Prior year refunds and adjustments | 1.2 | % | 0.8 | % | 0.4 | % | ||||||
Other | (0.6 | )% | (0.5 | )% | (0.1 | )% | ||||||
Effective tax rate | 5.9 | % | 2.3 | % | 3.6 | % | ||||||
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
Shareholders' equity | SHAREHOLDERS’ EQUITY | |||||||||||
a) Authorized shares | ||||||||||||
The issued share capital consists of the following: | ||||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Common shares issued and fully paid, 2014 and 2013: CHF 4.10 per share | 100,775,256 | 103,477,452 | ||||||||||
Share capital at end of year | $ | 408,020 | $ | 418,988 | ||||||||
2014 | 2013 | |||||||||||
Shares issued at beginning of year | 103,477,452 | 109,109,604 | ||||||||||
Shares cancelled | (2,702,196 | ) | (5,632,152 | ) | ||||||||
Total shares issued at end of year | 100,775,256 | 103,477,452 | ||||||||||
Treasury shares issued at beginning of year | 3,223,806 | 4,716,261 | ||||||||||
Shares repurchased | 4,906,785 | 5,544,432 | ||||||||||
Shares issued out of treasury | (848,621 | ) | (1,404,735 | ) | ||||||||
Shares cancelled | (2,702,196 | ) | (5,632,152 | ) | ||||||||
Total treasury shares at end of year | 4,579,774 | 3,223,806 | ||||||||||
Total shares outstanding at end of year | 96,195,482 | 100,253,646 | ||||||||||
During the years ended December 31, 2014, and 2013, 2,702,196 and 5,544,432 voting shares repurchased and designated for cancellation, respectively, were constructively retired and cancelled. | ||||||||||||
Effective July 9, 2013, the Company cancelled 87,720 non-voting shares held in treasury and 4,616,058 shares previously repurchased and constructively retired, following a required filing with the Swiss Commercial Register in Zug. | ||||||||||||
As required under Swiss law, the Company cannot hold more than 10% of its registered capital in treasury shares, unless it receives shareholder approval to do so. | ||||||||||||
b) Dividends | ||||||||||||
As a holding company, Allied World Switzerland’s principal source of income is dividends or other sources of permitted payments from its subsidiaries. These funds provide the cash flow required for dividend payments to the Company’s shareholders. The ability of our insurance and reinsurance subsidiaries to make dividend payments is limited by the applicable laws and regulations of the various states and countries in which they operate. | ||||||||||||
The Company’s primary restrictions on net assets of subsidiaries consist of regulatory requirements placed upon the regulated insurance and reinsurance subsidiaries to hold minimum amounts of total statutory capital and surplus and there were no other material restrictions on net assets in place as of December 31, 2014. | ||||||||||||
Under Swiss law, distributions to shareholders may be paid only if the Company has sufficient distributable profits from previous fiscal years, or if the Company has freely distributable reserves, each as presented on the audited stand-alone statutory balance sheet. Distributions to shareholders out of the share and participation capital may be made by way of a capital reduction in the form of a reduction to par value to achieve a similar result as the payment of a dividend. Under Swiss law, if the Company’s general capital reserves amount to less than 20% of the share and participation capital recorded in the Swiss Commercial Register, then at least 5% of the Company’s annual profit must be retained as general reserves. | ||||||||||||
On May 2, 2013, the shareholders approved the Company’s proposal to pay cash dividends in the form of a distribution out of general legal reserve from capital contributions. The distribution amounts were paid to shareholders in quarterly dividends of $0.167 per share in July 2013, October 2013, January 2014 and April 2014. | ||||||||||||
On May 1, 2014, the shareholders approved the Company’s proposal to pay cash dividends in the form of a distribution out of general legal reserve from capital contributions. The distribution amount will be paid to shareholders in quarterly dividends of $0.225 per share. The first dividend was on July 2, 2014, the second dividend was on October 2, 2014 and the third dividend was on January 2, 2015. The Company expects to distribute the remaining dividend in April 2015. | ||||||||||||
The Company paid the following dividends during the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
Dividend Paid | Partial | Dividend | Total | |||||||||
Par Value | Per | Amount | ||||||||||
Reduction | Share | Paid | ||||||||||
Per Share | ||||||||||||
2-Oct-14 | N/A | $ | 0.225 | $ | 21,686 | |||||||
2-Jul-14 | N/A | $ | 0.225 | $ | 21,870 | |||||||
3-Apr-14 | N/A | $ | 0.167 | $ | 16,495 | |||||||
2-Jan-14 | N/A | $ | 0.167 | $ | 16,732 | |||||||
3-Oct-13 | N/A | $ | 0.167 | $ | 16,952 | |||||||
3-Jul-13 | N/A | $ | 0.167 | $ | 17,117 | |||||||
12-Mar-13 | CHF | 0.11 | $ | 0.125 | $ | 12,981 | ||||||
December 18, 2012 | CHF | 0.11 | $ | 0.125 | $ | 13,010 | ||||||
September 25, 2012 | CHF | 0.12 | $ | 0.125 | $ | 13,324 | ||||||
August 6, 2012 | CHF | 0.12 | $ | 0.125 | $ | 13,394 | ||||||
April 6, 2012 | CHF | 0.11 | $ | 0.125 | $ | 13,795 | ||||||
January 6, 2012 | CHF | 0.12 | $ | 0.125 | $ | 14,302 | ||||||
c) Share Repurchases | ||||||||||||
On May 1, 2014, the shareholders approved a new share repurchase program in order for the Company to repurchase up to $500,000 of Allied World Switzerland's common shares. This new share repurchase program supersedes the 2012 share repurchase program and no further repurchases will be made under the 2012 share repurchase program. Repurchases may be effected from time to time through open market purchases, privately negotiated transactions, tender offers or otherwise. The timing, form and amount of the share repurchases under the program will depend on a variety of factors, including market conditions, the Company’s capital position, legal requirements and other factors. Under the terms of this share repurchase program, the first three million of common shares repurchased will remain in treasury and will be used by Allied World Switzerland to satisfy share delivery obligations under its equity-based compensation plans. Any additional common shares repurchased will be designated for cancellation at acquisition and will be canceled upon shareholder approval. Shares repurchased and designated for cancellation are constructively retired and recorded as a share cancellation. | ||||||||||||
Shares repurchased by the Company and not designated for cancellation are classified as “Treasury shares, at cost” on the consolidated balance sheets. The Company will issue shares out of treasury principally related to the Company’s employee benefit plans. Shares repurchased and designated for cancellation are constructively retired and recorded as a share cancellation. | ||||||||||||
The Company’s share repurchases were as follows: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Common shares repurchased | 4,906,785 | 5,544,432 | 10,967,877 | |||||||||
Total cost of shares repurchased | $ | 175,373 | $ | 174,686 | $ | 263,942 | ||||||
Average price per share | $ | 35.74 | $ | 31.51 | $ | 24.07 | ||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Employee benefit plans | EMPLOYEE BENEFIT PLANS | |||||||||||||
The Company implemented the Allied World Assurance Company Holdings, AG 2012 Omnibus Incentive Compensation Plan (the “2012 Omnibus Plan”). Under the 2012 Omnibus Plan, up to 4,500,000 common shares may be issued, subject to adjustment. The 2012 Omnibus Plan provides for the grant of options intended to qualify as incentive stock options under the Internal Revenue Code, non-qualified stock options, stock appreciation rights, restricted shares, RSUs, deferred share units, cash incentive awards, performance-based compensation awards and other equity-based and equity-related awards. These awards generally vest pro rata over four years from the date of grant, except for the performance-based awards that will generally vest over a three-year period based on the achievement of certain performance conditions. | ||||||||||||||
The Allied World Assurance Company Holdings, AG Third Amended and Restated 2001 Employee Stock Option Plan (the “Plan”), the Allied World Assurance Company Holdings, AG Third Amended and Restated 2004 Stock Incentive Plan and the and the Allied World Assurance Company Holdings, AG Third Amended and Restated Long-Term Incentive Plan (the “LTIP”) were automatically terminated, replaced and superseded by the 2012 Omnibus Plan on May 3, 2012, except that any outstanding awards granted under such plans remain in effect pursuant to their terms. | ||||||||||||||
a) Employee option plan | ||||||||||||||
Options under the Plan are exercisable in certain limited conditions, expire after 10 years, and generally vest pro-rata over four years from the date of grant. The exercise price of options issued were approved by the Compensation Committee but were not less than the fair market value of the common shares of Allied World Switzerland on the date the option award is granted. The Company has not granted stock options since 2011. | ||||||||||||||
The following table summarizes the activity related to options granted and exercised: | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Options granted | — | — | — | |||||||||||
Weighted average grant date fair value | $ | — | $ | — | $ | — | ||||||||
Options exercised | (479,831 | ) | (674,187 | ) | (801,810 | ) | ||||||||
Total intrinsic value of options exercised | $ | 10,313 | $ | 12,212 | $ | 9,650 | ||||||||
Proceeds from option exercises | $ | 10,027 | $ | 12,137 | $ | 10,527 | ||||||||
The activity related to the Company’s stock options is as follows: | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise Price | Contractual | Value | ||||||||||||
Term | ||||||||||||||
Outstanding at beginning of year | 2,928,312 | $ | 16.07 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (479,831 | ) | $ | (14.25 | ) | |||||||||
Forfeited | (15,096 | ) | $ | (20.50 | ) | |||||||||
Expired | (6,711 | ) | $ | (16.35 | ) | |||||||||
Outstanding at end of year | 2,426,674 | $ | 16.4 | 4.7 years | $ | 52,212 | ||||||||
Exercisable at end of year | 2,151,790 | $ | 15.88 | 4.5 years | $ | 47,424 | ||||||||
As of December 31, 2014, there was remaining $299 of total unrecognized compensation expense related to unvested options granted under the Plan. This expense is expected to be recognized over a weighted-average period of 0.1 years. | ||||||||||||||
b) Restricted stock units and performance-based equity awards | ||||||||||||||
The RSUs vest pro-rata over four years from the date of grant. The compensation expense for the RSUs is based on the fair market value of Allied World Switzerland’s common shares at the date of grant. The Company estimates the expected forfeitures of RSUs at the date of grant and recognizes compensation expense only for those awards that the Company expects to vest. The forfeiture assumption is ultimately adjusted to the actual forfeiture rate. | ||||||||||||||
Each award for the performance-based RSUs represents the right to receive a number of shares in the future, based upon the achievement of established performance criteria during the applicalbe performance period. The compensation expense for the performance-based RSUs is based on the fair market value of Allied World Switzerland's common shares at the time of grant. For the performance-based RSUs granted in 2014, 2013 and 2012, the Company anticipates that the performance goals are likely to be achieved. Based on the performance goals, the performance-based RSUs granted in 2014, 2013 and 2012 are expensed at 100%, 110% and 135%, respectively, of the fair market value of Allied World Switzerland’s common shares on the date of grant. The expense is recognized over the performance period. | ||||||||||||||
The activity related to the Company’s RSUs awards is as follows: | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Number of Awards | Weighted | Aggregate | ||||||||||||
Average | Intrinsic | |||||||||||||
Grant Date | Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at beginning of year | 143,697 | $ | 21.69 | |||||||||||
RSUs granted | 454,176 | 33.56 | ||||||||||||
RSUs forfeited | (16,386 | ) | (31.22 | ) | ||||||||||
RSUs fully vested | (78,981 | ) | (21.76 | ) | ||||||||||
Outstanding at end of year | 502,506 | $ | 32.1 | $ | 19,055 | |||||||||
As of December 31, 2014, there was remaining $12,057 of total unrecognized compensation expense related to 502,506 unvested RSUs awarded. This expense is expected to be recognized over a weighted-average period of 1.9 years. | ||||||||||||||
The activity related to the Company’s performance-based equity awards is as follows: | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Number of Awards | Weighted | Aggregate | ||||||||||||
Average | Intrinsic | |||||||||||||
Grant Date | Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at beginning of year | 804,519 | $ | 23.21 | |||||||||||
Performance-based equity awards granted | 166,302 | 33.56 | ||||||||||||
Additional awards granted due to achievement of performance criteria | 104,895 | 20.5 | ||||||||||||
Performance-based equity awards forfeited | (4,635 | ) | (25.20 | ) | ||||||||||
Performance-based equity awards fully vested | (454,440 | ) | (20.50 | ) | ||||||||||
Outstanding at end of year | 616,641 | $ | 27.52 | $ | 23,383 | |||||||||
As of December 31, 2014, there was remaining $5,814 of total unrecognized compensation expense related to 616,641 unvested performance-based equity awarded. This expense is expected to be recognized over a weighted-average period of 1.6 years. | ||||||||||||||
The RSUs and performance-based equity awards vested in 2014, 2013 and 2012 had aggregate intrinsic values of $14,366, $28,836 and $13,947 at the time of vesting, respectively. | ||||||||||||||
c) Cash-equivalent stock awards | ||||||||||||||
As part of the Company’s annual year-end compensation awards, the Company granted both stock-based awards and cash-equivalent stock awards. The cash-equivalent awards were granted to employees who received RSU and performance-based awards and were granted in lieu of granting the full award as a stock-based award. The cash-equivalent RSU awards vest pro-rata over four years from the date of grant. The cash-equivalent performance-based awards vest after a three-year performance period. As the cash-equivalent awards are settled in cash, the Company establishes a liability equal to the product of the fair market value of Allied World Switzerland’s common shares as of the end of the reporting period and the total awards outstanding. At December 31, 2014, the liability was $51,343, and payments for awards vesting in the period are typically settled within the first three months of the year. The liability is included in “accounts payable and accrued expenses” in the consolidated balance sheets and changes in the liability are recorded in “general and administrative expenses” in the consolidated income statements. | ||||||||||||||
The activity related to the Company's cash-equivalent RSUs and performance-based equity awards is as follows: | ||||||||||||||
RSU's | Performance-based Awards | |||||||||||||
Year Ended December 31, 2014 | Number of Awards | Weighted Average Grant Date Fair Value | Number of Awards | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding at beginning of year | 2,049,084 | $ | 24.69 | 1,031,961 | 23.67 | |||||||||
Granted | 438,162 | 33.56 | 249,438 | 33.56 | ||||||||||
Additional awards granted due to achievement of performance criteria | — | — | 104,895 | 20.5 | ||||||||||
Forfeited | (77,322 | ) | (27.12 | ) | (6,948 | ) | (25.20 | ) | ||||||
Fully vested | (755,860 | ) | (22.51 | ) | (454,440 | ) | (20.50 | ) | ||||||
Outstanding at end of year | 1,654,064 | $ | 27.99 | 924,906 | $ | 27.52 | ||||||||
d) Total Stock-Related Compensation Expense | ||||||||||||||
The following table shows the total stock-related compensation expense relating to the stock options, RSUs, LTIP and cash equivalent awards. | ||||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Stock options | $ | 1,949 | $ | 3,269 | $ | 4,256 | ||||||||
RSUs and performance-based equity awards | 12,295 | 10,700 | 13,010 | |||||||||||
LTIP | — | — | 376 | |||||||||||
Cash-equivalent stock awards | 37,790 | 50,878 | 32,760 | |||||||||||
Total | $ | 52,034 | $ | 64,847 | $ | 50,402 | ||||||||
e) Pension Plans | ||||||||||||||
The Company provides defined contribution retirement plans for its employees and officers. Contributions are made by the Company, and in some locations, these contributions are supplemented by the local plan participants. Contributions are based on a percentage of the participant’s base salary depending upon competitive local market practice and vesting provisions meeting legal compliance standards. The amount that an individual employee or officer can contribute may also be subject to regulatory requirements relating to the country of which the individual is a citizen. The Company incurred expenses for these defined contribution arrangements of $10,648, $9,287 and $6,602 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||
f) Employee Share Purchase Plan | ||||||||||||||
Under the Allied World Assurance Company Holdings, AG Amended and Restated 2008 Employee Share Purchase Plan (“ESPP”), eligible employees of the Company may purchase common shares of the Company at a 15% discount from the fair market value of one common share on the last trading day of each offering period. Employees purchase a variable number of common shares through payroll deductions elected as of the beginning of the offering period. The Company may sell up to 3,000,000 common shares to eligible employees under the ESPP. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Earnings per share | EARNINGS PER SHARE | |||||||||||
The following table sets forth the comparison of basic and diluted earnings per share: | ||||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 490,259 | $ | 417,880 | $ | 493,007 | ||||||
Weighted average common shares outstanding | 97,538,319 | 102,464,715 | 108,171,435 | |||||||||
Basic earnings per share | $ | 5.03 | $ | 4.08 | $ | 4.56 | ||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 490,259 | $ | 417,880 | $ | 493,007 | ||||||
Weighted average common shares outstanding | 97,538,319 | 102,464,715 | 108,171,435 | |||||||||
Share equivalents: | ||||||||||||
Warrants and options | 1,432,960 | 1,536,939 | 1,306,002 | |||||||||
RSU and LTIP awards | 605,808 | 864,180 | 1,727,265 | |||||||||
Employee share purchase plan | 14,686 | — | 4,953 | |||||||||
Weighted average common shares and common share equivalents outstanding — diluted | 99,591,773 | 104,865,834 | 111,209,655 | |||||||||
Diluted earnings per share | $ | 4.92 | $ | 3.98 | $ | 4.43 | ||||||
For the years ended December 31, 2014, 2013 and 2012, a weighted average of nil, nil and 678,312 employee stock options and RSUs were considered anti-dilutive and were therefore excluded from the calculation of the diluted earnings per share, respectively. |
Commitments_And_Contingencies
Commitments And Contingencies | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Commitments and contingencies | COMMITMENTS AND CONTINGENCIES | ||||||||
a) Concentrations of Credit Risk | |||||||||
Credit risk arises out of the failure of a counterparty to perform according to the terms of the contract. | |||||||||
The Company’s investment portfolio is managed pursuant to guidelines that follow prudent standards of diversification. The guidelines limit the allowable holdings of a single issue and issuers. The Company believes that there are no significant concentrations of credit risk associated with its investment portfolio. As of December 31, 2014 and 2013, substantially all of the Company’s cash and investments were held with one custodian. | |||||||||
Insurance balances receivable primarily consist of net premiums due from insureds and reinsureds. The Company believes that the counterparties to these receivables are able to meet, and will meet, all of their obligations. The Company’s credit risk is further reduced by the contractual right to offset loss obligations or unearned premiums against premiums receivable. Consequently, the Company has not included any material allowance for doubtful accounts against the receivable balance. | |||||||||
b) Operating Leases | |||||||||
The Company leases office space under operating leases expiring in various years through 2030. The following are future minimum rental payments as of December 31, 2014: | |||||||||
Amount | |||||||||
2015 | $ | 12,568 | |||||||
2016 | 16,903 | ||||||||
2017 | 20,596 | ||||||||
2018 | 20,096 | ||||||||
2019 | 19,013 | ||||||||
2020 and thereafter | 138,602 | ||||||||
$ | 227,778 | ||||||||
Total rent expense for the years ended December 31, 2014, 2013 and 2012 was $18,950, $11,392 and $11,929, respectively. The rent expense for the year ended December 31, 2014 included $963 of accelerated rent expense due to the Company vacating one of its leased properties before the lease expired. | |||||||||
c) Producers | |||||||||
The three largest individual producers as a percentage of gross premiums written are as follows: | |||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Marsh & McLennan Companies, Inc. | 25 | % | 26 | % | 25 | % | |||
Aon Corporation | 17 | % | 18 | % | 19 | % | |||
Willis Group Holdings | 10 | % | 12 | % | 11 | % | |||
d) Legal Proceedings | |||||||||
The Company, in common with the insurance industry in general, is subject to litigation and arbitration in the normal course of its business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Estimated amounts payable under these proceedings are included in the reserve for losses and loss expenses in the Company’s consolidated balance sheets. As of December 31, 2014, the Company was not a party to any material legal proceedings arising outside the ordinary course of business that management believes will have a material adverse effect on the Company’s results of operations, financial position or cash flow. |
Statutory_Capital_and_Surplus
Statutory Capital and Surplus | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Dividend Restrictions And Statutory Requirements [Abstract] | ||||||||||||||||
Statutory capital and surplus | STATUTORY CAPITAL AND SURPLUS | |||||||||||||||
Allied World Switzerland’s ability to pay dividends is subject to certain regulatory restrictions on the payment of dividends by its subsidiaries. The payment of such dividends is limited by applicable laws and statutory requirements of the jurisdictions in which Allied World Switzerland and its subsidiaries operate. The total amount of restricted net assets for the Company’s consolidated subsidiaries as of December 31, 2014 was $2,953,535. | ||||||||||||||||
The minimum required statutory capital and surplus is the amount of statutory capital and surplus necessary to satisfy regulatory requirements based on the Company’s current operations. The statutory capital and surplus and minimum required statutory capital and surplus for the Company’s most significant regulatory jurisdictions at December 31, 2014 and 2013 were as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Statutory | Minimum | Statutory | Minimum | |||||||||||||
Capital and | Required | Capital and | Required | |||||||||||||
Surplus | Statutory | Surplus | Statutory | |||||||||||||
Capital and | Capital and | |||||||||||||||
Surplus | Surplus | |||||||||||||||
Bermuda | $ | 3,273,730 | $ | 876,235 | $ | 3,208,776 | $ | 806,012 | ||||||||
United States | 1,220,299 | 226,876 | 1,187,023 | 205,699 | ||||||||||||
Ireland | 410,841 | 29,204 | 407,600 | 27,098 | ||||||||||||
Switzerland | 172,306 | 19,943 | 167,840 | 22,905 | ||||||||||||
United Kingdom | 231,659 | 203,742 | 229,745 | 229,689 | ||||||||||||
There were no state-prescribed or permitted regulatory accounting practices for any of our insurance entities that resulted in reported statutory surplus that differed from that which would have been reported under the prescribed practices of the respective regulatory authorities, including the National Association of Insurance Commissioners. Statutory accounting under the prescribed practices of the respective regulatory authorities differs from U.S. GAAP accounting in the treatment of various items, including reporting of investments, acquisition costs and deferred income taxes. | ||||||||||||||||
The statutory net income (loss) for the Company’s most significant regulatory jurisdictions for the years ended December 31, 2014, 2013 and 2012 was as follows: | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Bermuda | $ | 487,051 | $ | 467,283 | $ | 528,712 | ||||||||||
United States | 45,445 | 36,744 | 25,390 | |||||||||||||
Ireland | 3,241 | (4,880 | ) | 9,325 | ||||||||||||
Switzerland | 7,408 | (6,418 | ) | 10,657 | ||||||||||||
United Kingdom | (7,819 | ) | 9,362 | 1,800 | ||||||||||||
At December 31, 2014, the maximum amount of ordinary dividends or distributions that can be paid, without prior regulatory approval, for the Company’s most significant regulatory jurisdictions, were as follows: | ||||||||||||||||
December 31, 2014 | ||||||||||||||||
Bermuda | $ | 818,433 | ||||||||||||||
United States | 102,283 | |||||||||||||||
Ireland | 21,637 | |||||||||||||||
Switzerland | 6,323 | |||||||||||||||
United Kingdom | 1,601 | |||||||||||||||
a) Bermuda | ||||||||||||||||
The Company’s Bermuda subsidiary, Allied World Assurance Company, Ltd, is registered under the Bermuda Insurance Act 1978 and Related Regulations as amended. As a Class 4 insurer, Allied World Assurance Company, Ltd is required to maintain minimum solvency standards and to hold available statutory capital and surplus equal to or exceeding the enhanced capital requirements as determined by the Bermuda Monetary Authority under the Bermuda Solvency Capital Requirement model (“BSCR model”). The BSCR model is a risk-based capital model that provides a method for determining an insurer’s minimum required capital taking into account the risk characteristics of different aspects of the company’s business. In addition, this subsidiary is required to maintain a minimum liquidity ratio. As of December 31, 2014 and 2013, this subsidiary met the requirements. | ||||||||||||||||
b) United States | ||||||||||||||||
The Company’s U.S. insurance subsidiaries are subject to the insurance laws and regulations of the states in which they are domiciled, and also states in which they are licensed or authorized to transact business. These laws also restrict the amount of ordinary shareholder dividends the subsidiaries can pay. The restrictions are generally based on statutory surplus and/or statutory net income as determined in accordance with the relevant statutory accounting requirements of the individual domiciliary states. The U.S. subsidiaries are required to file annual statements with insurance regulatory authorities prepared on an accounting basis prescribed or permitted by such authorities. The U.S. subsidiaries are also required to maintain minimum levels of solvency and liquidity as determined by law, and comply with capital requirements and licensing rules. As of December 31, 2014 and 2013, the actual levels of solvency, liquidity and capital of each U.S. subsidiary were in excess of the minimum levels required. | ||||||||||||||||
c) Ireland | ||||||||||||||||
The Company’s Irish insurance subsidiary is regulated by the Central Bank of Ireland pursuant to the Insurance Acts 1909 to 2000, the Central Bank Acts 1942 to 2014 and all statutory instruments relating to insurance made or adopted under the European Communities Acts 1972 to 2014. This subsidiary is required to maintain a minimum level of capital. As of December 31, 2014 and 2013, these requirements were met. The amount of dividends that this subsidiary is permitted to distribute is restricted to accumulated realized profits that have not been capitalized or distributed, less accumulated realized losses that have not been written off. The solvency and capital requirements must still be met following any distribution. | ||||||||||||||||
d) Switzerland | ||||||||||||||||
The Company’s Swiss insurance subsidiary, Allied World Assurance Company, AG, is regulated by the Swiss Financial Market Supervisory Authority (“FINMA”) pursuant to the Insurance Supervisory Law 2004 to 2014. This subsidiary’s accounts are prepared in accordance with the Swiss Code of Obligation 1911 to 2013 and the Insurance Supervisory Law 2004 to 2014. This subsidiary is obligated to maintain a minimum level of capital based on the Swiss Code of Obligation, a minimum of tied assets based on the Insurance Supervisory Law and a minimum solvency margin based on the Solvency I and Swiss Solvency Test regulations as stipulated by the Insurance Supervisory Law. As of December 31, 2014 and 2013, this subsidiary met the requirements. The amount of dividends that this subsidiary is permitted to distribute is restricted to freely distributable reserves which consist of retained earnings, the current year profit and legal reserves to a certain extent. Any dividend requires approval of the shareholders and in case of the dividend exceeding the current year profit, approval is also required from FINMA. The solvency and capital requirements must still be met following any distribution. | ||||||||||||||||
e) United Kingdom | ||||||||||||||||
Allied World Capital (Europe) Limited is the sole corporate member of Syndicate 2232. Syndicate 2232 is managed by Allied World Managing Agency Limited, which is authorized and regulated by the Prudential Regulatory Authority ("PRA") and the Financial Conduct Authority. As a member of Lloyd’s, Allied World Capital (Europe) Limited is obliged to comply with Lloyd’s byelaws and regulations (made pursuant to the Lloyd’s Acts 1871 to 1982) and applicable provisions of the Financial and Services and Markets Act 2000. The Council of Lloyd’s has wide discretionary powers to regulate members’ underwriting at Lloyd’s and its exercise of these powers might affect the return on an investment of the corporate member in a given underwriting year. The capital required to support a Syndicate’s underwriting capacity, referred to as “funds at Lloyd’s”, is assessed annually and is determined by Lloyd’s in accordance with the capital adequacy rules established by the PRA. If a member of Lloyd’s is unable to pay its debts to policyholders, such debts may be payable from the Lloyd’s Central Fund, which in many respects acts as an equivalent to a state guaranty fund in the United States. The Company has provided capital to support the underwriting of Syndicate 2232 in the form of pledged assets provided by Allied World Assurance Company, Ltd. The amount which the Company provides as funds at Lloyd’s is not available for distribution to the Company for the payment of dividends. Lloyd’s is supervised by the PRA and required to implement certain rules prescribed by the PRA under the Lloyd’s Act of 1982 regarding the operation of the Lloyd’s market. With respect to managing agents and corporate members, Lloyd’s prescribes certain minimum standards relating to management and control, solvency and other requirements and monitors managing agents’ compliance with such standards. | ||||||||||||||||
f) Branch Offices | ||||||||||||||||
The Company’s insurance subsidiaries maintain branch offices in Australia, Bermuda, England, Switzerland, Hong Kong, Canada, Singapore and Labuan. As branch offices are not considered separate legal entities, the required and actual statutory capital and surplus amounts for each jurisdiction in the table above include amounts related to the branch offices. These branch offices are subject to additional minimum capital or asset requirements in their countries of domicile. At December 31, 2014 and 2013, the actual capital and surplus for each of these branches exceeded the relevant local regulatory requirements. |
Segment_Information
Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Segment information | SEGMENT INFORMATION | |||||||||||||||
The determination of reportable segments is based on how the Company's chief operating decision maker, the Chief Executive Officer, monitors the Company’s underwriting operations. Management monitors the performance of its direct underwriting operations based on the geographic location of the Company’s offices, the markets and customers served and the type of accounts written. The Company is currently organized into three operating segments: North American Insurance, Global Markets Insurance and Reinsurance. All product lines fall within these classifications. | ||||||||||||||||
The North American Insurance segment includes the Company’s direct specialty insurance operations in the United States, Bermuda and Canada, as well as the Company's claim administration services operation. This segment provides both direct property and specialty casualty insurance to North American domiciled accounts. The Global Markets Insurance segment includes the Company’s direct insurance operations in Europe and Asia Pacific, which includes offices in Australia, Hong Kong and Singapore. This segment provides both direct property and casualty insurance primarily to non-North American domiciled accounts. The Reinsurance segment includes the Company’s reinsurance operations in the United States, Bermuda, Europe and Singapore. This segment provides reinsurance of property, general casualty, professional liability, specialty lines and property catastrophe coverages written by insurance companies. The Company presently writes reinsurance on both a treaty and a facultative basis, targeting several niche reinsurance markets. | ||||||||||||||||
Responsibility and accountability for the results of underwriting operations are assigned by major line of business within each segment. Because the Company does not manage its assets by segment, investment income, interest expense and total assets are not allocated to individual reportable segments. General and administrative expenses are allocated to segments based on various factors, including staff count and each segment’s proportional share of gross premiums written. | ||||||||||||||||
The Company measures its segment profit or loss as underwriting income or loss plus other insurance-related income and expenses, which may include the net earnings from our claims administration services operations and other income or expense that is not directly related to our underwriting operations. Management measures results of each segment's underwriting income or loss on the basis of the “loss and loss expense ratio,” “acquisition cost ratio,” “general and administrative expense ratio”, “expense ratio” and the “combined ratio.” The “loss and loss expense ratio” is derived by dividing net losses and loss expenses by net premiums earned. The “acquisition cost ratio” is derived by dividing acquisition costs by net premiums earned. The “general and administrative expense ratio” is derived by dividing general and administrative expenses by net premiums earned. The expense ratio is the sum of the “acquisition cost ratio” and the “general and administrative expense ratio”. The “combined ratio” is the sum of the “loss and loss expense ratio,” the “acquisition cost ratio” and the “general and administrative expense ratio.” | ||||||||||||||||
The following tables provide a summary of the segment results: | ||||||||||||||||
Year Ended December 31, 2014 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,716,288 | $ | 280,543 | $ | 938,594 | $ | 2,935,425 | ||||||||
Net premiums written | 1,230,839 | 187,997 | 903,239 | 2,322,075 | ||||||||||||
Net premiums earned | 1,111,164 | 162,566 | 909,028 | 2,182,758 | ||||||||||||
Net losses and loss expenses | (683,836 | ) | (61,057 | ) | (454,297 | ) | (1,199,190 | ) | ||||||||
Acquisition costs | (105,914 | ) | (18,222 | ) | (170,986 | ) | (295,122 | ) | ||||||||
General and administrative expenses | (219,665 | ) | (68,106 | ) | (77,965 | ) | (365,736 | ) | ||||||||
Underwriting income | 101,749 | 15,181 | 205,780 | 322,710 | ||||||||||||
Other insurance-related revenue | 2,064 | — | — | 2,064 | ||||||||||||
Other insurance-related expenses | (1,854 | ) | (6,724 | ) | — | (8,578 | ) | |||||||||
Segment income | 101,959 | 8,457 | 205,780 | 316,196 | ||||||||||||
Net investment income | 176,874 | |||||||||||||||
Net realized investment gains | 88,957 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (57,755 | ) | ||||||||||||||
Foreign exchange loss | (957 | ) | ||||||||||||||
Income before income taxes | $ | 520,782 | ||||||||||||||
Loss and loss expense ratio | 61.5 | % | 37.6 | % | 50 | % | 54.9 | % | ||||||||
Acquisition cost ratio | 9.5 | % | 11.2 | % | 18.8 | % | 13.5 | % | ||||||||
General and administrative expense ratio | 19.8 | % | 41.9 | % | 8.6 | % | 16.8 | % | ||||||||
Expense ratio | 29.3 | % | 53.1 | % | 27.4 | % | 30.3 | % | ||||||||
Combined ratio | 90.8 | % | 90.7 | % | 77.4 | % | 85.2 | % | ||||||||
Year Ended December 31, 2013 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,572,355 | $ | 232,555 | $ | 933,754 | $ | 2,738,664 | ||||||||
Net premiums written | 1,082,441 | 145,002 | 893,038 | 2,120,481 | ||||||||||||
Net premiums earned | 1,022,979 | 126,008 | 856,846 | 2,005,833 | ||||||||||||
Net losses and loss expenses | (651,267 | ) | (50,395 | ) | (421,580 | ) | (1,123,242 | ) | ||||||||
Acquisition costs | (94,869 | ) | (10,051 | ) | (147,753 | ) | (252,673 | ) | ||||||||
General and administrative expenses | (209,042 | ) | (63,164 | ) | (80,079 | ) | (352,285 | ) | ||||||||
Underwriting income | 67,801 | 2,398 | 207,434 | 277,633 | ||||||||||||
Other insurance-related revenue | — | — | — | — | ||||||||||||
Other insurance-related expenses | — | — | — | — | ||||||||||||
Segment income | 67,801 | 2,398 | 207,434 | 277,633 | ||||||||||||
Net investment income | 157,564 | |||||||||||||||
Net realized investment gains | 59,525 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (56,510 | ) | ||||||||||||||
Foreign exchange loss | (8,019 | ) | ||||||||||||||
Income before income taxes | $ | 427,660 | ||||||||||||||
Loss and loss expense ratio | 63.7 | % | 40 | % | 49.2 | % | 56 | % | ||||||||
Acquisition cost ratio | 9.3 | % | 8 | % | 17.2 | % | 12.6 | % | ||||||||
General and administrative expense ratio | 20.4 | % | 50.1 | % | 9.3 | % | 17.6 | % | ||||||||
Expense ratio | 29.7 | % | 58.1 | % | 26.5 | % | 30.2 | % | ||||||||
Combined ratio | 93.4 | % | 98.1 | % | 75.7 | % | 86.2 | % | ||||||||
Year Ended December 31, 2012 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,376,040 | $ | 192,981 | $ | 760,250 | $ | 2,329,271 | ||||||||
Net premiums written | 964,199 | 125,577 | 748,047 | 1,837,823 | ||||||||||||
Net premiums earned | 892,721 | 115,660 | 740,517 | 1,748,898 | ||||||||||||
Net losses and loss expenses | (608,762 | ) | (19,536 | ) | (510,966 | ) | (1,139,264 | ) | ||||||||
Acquisition costs | (77,701 | ) | (8,483 | ) | (119,538 | ) | (205,722 | ) | ||||||||
General and administrative expenses | (185,231 | ) | (48,365 | ) | (73,725 | ) | (307,321 | ) | ||||||||
Underwriting income | 21,027 | 39,276 | 36,288 | 96,591 | ||||||||||||
Other insurance-related revenue | — | — | — | — | ||||||||||||
Other insurance-related expenses | — | — | — | — | ||||||||||||
Segment income | 21,027 | 39,276 | 36,288 | 96,591 | ||||||||||||
Net investment income | 167,141 | |||||||||||||||
Net realized investment gains | 306,436 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (55,405 | ) | ||||||||||||||
Foreign exchange loss | (783 | ) | ||||||||||||||
Income before income taxes | $ | 511,447 | ||||||||||||||
Loss and loss expense ratio | 68.2 | % | 16.9 | % | 69 | % | 65.1 | % | ||||||||
Acquisition cost ratio | 8.7 | % | 7.3 | % | 16.1 | % | 11.8 | % | ||||||||
General and administrative expense ratio | 20.7 | % | 41.8 | % | 10 | % | 17.6 | % | ||||||||
Expense ratio | 29.4 | % | 49.1 | % | 26.1 | % | 29.4 | % | ||||||||
Combined ratio | 97.6 | % | 66 | % | 95.1 | % | 94.5 | % | ||||||||
The following table shows an analysis of the Company’s gross premiums written by geographic location of the Company’s subsidiaries. All intercompany premiums have been eliminated. | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 1,795,564 | $ | 1,636,010 | $ | 1,360,190 | ||||||||||
Bermuda | 640,948 | 676,174 | 611,382 | |||||||||||||
Europe | 318,626 | 264,867 | 228,791 | |||||||||||||
Asia Pacific | 167,334 | 161,613 | 128,908 | |||||||||||||
Canada | 12,953 | — | — | |||||||||||||
Total gross premiums written | $ | 2,935,425 | $ | 2,738,664 | $ | 2,329,271 | ||||||||||
Gross premiums written attributable to Switzerland were $67,564, $61,042 and $43,664 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
The following table shows the Company’s net premiums earned by line of business for each segment for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
North American Insurance: | ||||||||||||||||
General casualty | $ | 334,603 | $ | 269,114 | $ | 211,238 | ||||||||||
Professional liability | 276,105 | 259,215 | 245,583 | |||||||||||||
Healthcare | 168,476 | 194,344 | 187,053 | |||||||||||||
General property | 126,646 | 141,896 | 137,002 | |||||||||||||
Programs | 119,756 | 107,870 | 88,180 | |||||||||||||
Inland marine | 43,666 | 25,939 | 10,612 | |||||||||||||
Environmental | 19,507 | 17,017 | 12,627 | |||||||||||||
Other | 22,405 | 7,584 | 426 | |||||||||||||
Total | 1,111,164 | 1,022,979 | 892,721 | |||||||||||||
Global Markets Insurance: | ||||||||||||||||
Professional liability | 57,176 | 45,967 | 43,621 | |||||||||||||
General property | 33,957 | 31,364 | 36,751 | |||||||||||||
Aviation | 22,342 | 9,521 | — | |||||||||||||
Trade credit | 17,623 | 14,099 | 9,471 | |||||||||||||
General casualty | 15,266 | 13,903 | 16,762 | |||||||||||||
Healthcare | 11,963 | 11,154 | 9,055 | |||||||||||||
Other | 4,239 | — | — | |||||||||||||
Total | 162,566 | 126,008 | 115,660 | |||||||||||||
Reinsurance: | ||||||||||||||||
Property | 411,968 | 336,009 | 273,167 | |||||||||||||
Specialty | 321,538 | 349,044 | 283,415 | |||||||||||||
Casualty | 175,522 | 171,793 | 183,935 | |||||||||||||
Total | 909,028 | 856,846 | 740,517 | |||||||||||||
Total net premiums earned | $ | 2,182,758 | $ | 2,005,833 | $ | 1,748,898 | ||||||||||
Condensed_Consolidated_Guarant
Condensed Consolidated Guarantor Financial Statements | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Condensed consolidated guarantor financial statements | CONDENSED CONSOLIDATED PARENT COMPANY AND GUARANTOR FINANCIAL STATEMENTS | |||||||||||||||||||
The following tables present condensed consolidating financial information as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012 for Allied World Switzerland (the “Parent Guarantor”) and Allied World Bermuda (the “Subsidiary Issuer”). The Subsidiary Issuer is a direct 100%-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 the senior notes issued by the Subsidiary Issuer. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet: | ||||||||||||||||||||
As of December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments | $ | — | $ | — | $ | 7,868,682 | $ | — | $ | 7,868,682 | ||||||||||
Cash and cash equivalents | 32,579 | 1,734 | 555,026 | — | 589,339 | |||||||||||||||
Insurance balances receivable | — | — | 664,815 | — | 664,815 | |||||||||||||||
Funds held | — | — | 724,021 | — | 724,021 | |||||||||||||||
Reinsurance recoverable | — | — | 1,340,256 | — | 1,340,256 | |||||||||||||||
Reinsurance recoverable on paid losses | — | — | 86,075 | 86,075 | ||||||||||||||||
Net deferred acquisition costs | — | — | 151,546 | — | 151,546 | |||||||||||||||
Goodwill and intangible assets | — | — | 324,556 | — | 324,556 | |||||||||||||||
Balances receivable on sale of investments | — | — | 47,149 | — | 47,149 | |||||||||||||||
Investments in subsidiaries | 3,629,301 | 4,218,028 | — | (7,847,329 | ) | — | ||||||||||||||
Due from subsidiaries | 147,072 | 19,190 | 14,396 | (180,658 | ) | — | ||||||||||||||
Other assets | 1,470 | 3,192 | 620,462 | — | 625,124 | |||||||||||||||
Total assets | $ | 3,810,422 | $ | 4,242,144 | $ | 12,396,984 | $ | (8,027,987 | ) | $ | 12,421,563 | |||||||||
LIABILITIES: | ||||||||||||||||||||
Reserve for losses and loss expenses | $ | — | $ | — | $ | 5,881,165 | $ | — | $ | 5,881,165 | ||||||||||
Unearned premiums | — | — | 1,555,313 | — | 1,555,313 | |||||||||||||||
Reinsurance balances payable | — | — | 180,060 | — | 180,060 | |||||||||||||||
Balances due on purchases of investments | — | 5,428 | — | 5,428 | ||||||||||||||||
Senior notes | — | 798,802 | — | — | 798,802 | |||||||||||||||
Other long-term debt | — | — | 19,213 | — | 19,213 | |||||||||||||||
Due to subsidiaries | 7,599 | 6,797 | 166,262 | (180,658 | ) | — | ||||||||||||||
Other liabilities | 24,532 | 19,618 | 159,141 | — | 203,291 | |||||||||||||||
Total liabilities | 32,131 | 825,217 | 7,966,582 | (180,658 | ) | 8,643,272 | ||||||||||||||
Total shareholders’ equity | 3,778,291 | 3,416,927 | 4,430,402 | (7,847,329 | ) | 3,778,291 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,810,422 | $ | 4,242,144 | $ | 12,396,984 | $ | (8,027,987 | ) | $ | 12,421,563 | |||||||||
As of December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments | $ | — | $ | — | $ | 7,712,036 | $ | — | $ | 7,712,036 | ||||||||||
Cash and cash equivalents | 10,790 | 2,775 | 518,371 | — | 531,936 | |||||||||||||||
Insurance balances receivable | — | — | 588,632 | — | 588,632 | |||||||||||||||
Funds held | — | — | 632,430 | — | 632,430 | |||||||||||||||
Reinsurance recoverable | — | — | 1,234,504 | — | 1,234,504 | |||||||||||||||
Reinsurance recoverable on paid losses | — | — | 76,099 | — | 76,099 | |||||||||||||||
Net deferred acquisition costs | — | — | 126,661 | — | 126,661 | |||||||||||||||
Goodwill and intangible assets | — | — | 317,207 | — | 317,207 | |||||||||||||||
Balances receivable on sale of investments | — | — | 76,544 | — | 76,544 | |||||||||||||||
Investments in subsidiaries | 3,413,001 | 4,018,619 | — | (7,431,620 | ) | — | ||||||||||||||
Due from subsidiaries | 111,172 | 122,846 | 123,479 | (357,497 | ) | — | ||||||||||||||
Other assets | 1,757 | 4,671 | 643,353 | — | 649,781 | |||||||||||||||
Total assets | $ | 3,536,720 | $ | 4,148,911 | $ | 12,049,316 | $ | (7,789,117 | ) | $ | 11,945,830 | |||||||||
LIABILITIES: | ||||||||||||||||||||
Reserve for losses and loss expenses | $ | — | $ | — | $ | 5,766,529 | $ | — | $ | 5,766,529 | ||||||||||
Unearned premiums | — | — | 1,396,256 | — | 1,396,256 | |||||||||||||||
Reinsurance balances payable | — | — | 173,023 | — | 173,023 | |||||||||||||||
Balances due on purchases of investments | — | — | 104,740 | — | 104,740 | |||||||||||||||
Senior notes | — | 798,499 | — | — | 798,499 | |||||||||||||||
Due to subsidiaries | 12,945 | 110,534 | 234,018 | (357,497 | ) | — | ||||||||||||||
Other liabilities | 3,949 | 17,797 | 165,211 | — | 186,957 | |||||||||||||||
Total liabilities | 16,894 | 926,830 | 7,839,777 | (357,497 | ) | 8,426,004 | ||||||||||||||
Total shareholders’ equity | 3,519,826 | 3,222,081 | 4,209,539 | (7,431,620 | ) | 3,519,826 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,536,720 | $ | 4,148,911 | $ | 12,049,316 | $ | (7,789,117 | ) | $ | 11,945,830 | |||||||||
Condensed Consolidating Income Statement: | ||||||||||||||||||||
Year Ended December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,182,758 | $ | — | $ | 2,182,758 | ||||||||||
Net investment income | 50 | — | 176,824 | — | 176,874 | |||||||||||||||
Net realized investment gains | — | — | 88,957 | — | 88,957 | |||||||||||||||
Other income | — | — | 2,064 | — | 2,064 | |||||||||||||||
Net losses and loss expenses | — | — | (1,199,190 | ) | — | (1,199,190 | ) | |||||||||||||
Acquisition costs | — | — | (295,122 | ) | — | (295,122 | ) | |||||||||||||
General and administrative expenses | (35,596 | ) | (3,088 | ) | (327,052 | ) | — | (365,736 | ) | |||||||||||
Other expense | — | — | (8,578 | ) | — | (8,578 | ) | |||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,418 | ) | (2,337 | ) | — | (57,755 | ) | ||||||||||||
Foreign exchange gain (loss) | 20 | 104 | (1,081 | ) | — | (957 | ) | |||||||||||||
Income tax (expense) benefit | (89 | ) | — | (30,434 | ) | — | (30,523 | ) | ||||||||||||
Equity in earnings of consolidated subsidiaries | 525,874 | 564,648 | — | (1,090,522 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 490,259 | $ | 506,246 | $ | 584,276 | $ | (1,090,522 | ) | $ | 490,259 | |||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 490,259 | $ | 506,246 | $ | 584,276 | $ | (1,090,522 | ) | $ | 490,259 | |||||||||
Year Ended December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,005,833 | $ | — | $ | 2,005,833 | ||||||||||
Net investment income | 13 | 4 | 157,547 | — | 157,564 | |||||||||||||||
Net realized investment gains | — | — | 59,525 | — | 59,525 | |||||||||||||||
Other income | — | — | — | — | — | |||||||||||||||
Net losses and loss expenses | — | — | (1,123,242 | ) | — | (1,123,242 | ) | |||||||||||||
Acquisition costs | — | — | (252,673 | ) | — | (252,673 | ) | |||||||||||||
General and administrative expenses | (42,122 | ) | (1,320 | ) | (308,843 | ) | — | (352,285 | ) | |||||||||||
Other expense | — | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,347 | ) | (1,163 | ) | — | (56,510 | ) | ||||||||||||
Foreign exchange gain (loss) | 263 | (1,045 | ) | (7,237 | ) | — | (8,019 | ) | ||||||||||||
Income tax (expense) benefit | 98 | — | (9,878 | ) | — | (9,780 | ) | |||||||||||||
Equity in earnings of consolidated subsidiaries | 459,628 | 515,156 | — | (974,784 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 417,880 | $ | 457,448 | $ | 517,336 | $ | (974,784 | ) | $ | 417,880 | |||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 417,880 | $ | 457,448 | $ | 517,336 | $ | (974,784 | ) | $ | 417,880 | |||||||||
Year Ended December 31, 2012 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 1,748,898 | $ | — | $ | 1,748,898 | ||||||||||
Net investment income | 26 | 20 | 167,095 | — | 167,141 | |||||||||||||||
Net realized investment gains (loss) | — | — | 306,436 | — | 306,436 | |||||||||||||||
Other income | — | — | — | — | — | |||||||||||||||
Net losses and loss expenses | — | — | (1,139,264 | ) | — | (1,139,264 | ) | |||||||||||||
Acquisition costs | — | — | (205,722 | ) | — | (205,722 | ) | |||||||||||||
General and administrative expenses | (35,258 | ) | (2,973 | ) | (269,090 | ) | — | (307,321 | ) | |||||||||||
Other expense | — | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,405 | ) | — | — | (55,405 | ) | |||||||||||||
Foreign exchange gain (loss) | 159 | (319 | ) | (623 | ) | — | (783 | ) | ||||||||||||
Income tax (expense) benefit | 358 | — | (18,798 | ) | — | (18,440 | ) | |||||||||||||
Equity in earnings of consolidated subsidiaries | 527,722 | 573,256 | — | (1,100,978 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 493,007 | $ | 514,579 | $ | 586,399 | $ | (1,100,978 | ) | $ | 493,007 | |||||||||
Unrealized gains on investments arising during the year net of applicable deferred income tax benefit of $265 | (493 | ) | — | (493 | ) | 493 | (493 | ) | ||||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | (13,991 | ) | — | (13,991 | ) | 13,991 | (13,991 | ) | ||||||||||||
Other comprehensive loss | (14,484 | ) | — | (14,484 | ) | 14,484 | (14,484 | ) | ||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 478,523 | $ | 514,579 | $ | 571,915 | $ | (1,086,494 | ) | $ | 478,523 | |||||||||
Condensed Consolidating Statement of Cash Flows: | ||||||||||||||||||||
Year Ended December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 264,422 | $ | 292,959 | $ | 493,659 | $ | (643,250 | ) | $ | 407,790 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases trading securities | — | — | (7,630,034 | ) | — | (7,630,034 | ) | |||||||||||||
Purchases of other invested assets | — | — | (307,955 | ) | — | (307,955 | ) | |||||||||||||
Sales of trading securities | — | — | 7,536,936 | — | 7,536,936 | |||||||||||||||
Sales of other invested assets | — | — | 267,885 | — | 267,885 | |||||||||||||||
Other | — | — | 6,201 | — | 6,201 | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (126,967 | ) | — | (126,967 | ) | |||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Dividends paid | (76,750 | ) | — | — | — | (76,750 | ) | |||||||||||||
Intercompany dividends paid | — | (294,000 | ) | (349,250 | ) | 643,250 | — | |||||||||||||
Proceeds from the exercise of stock options | 10,027 | — | — | — | 10,027 | |||||||||||||||
Proceeds from other long-term debt | — | — | 19,213 | — | 19,213 | |||||||||||||||
Share repurchases | (175,910 | ) | — | — | — | (175,910 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (242,633 | ) | (294,000 | ) | (330,037 | ) | 643,250 | (223,420 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 21,789 | (1,041 | ) | 36,655 | — | 57,403 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 10,790 | 2,775 | 518,371 | — | 531,936 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 32,579 | $ | 1,734 | $ | 555,026 | $ | — | $ | 589,339 | ||||||||||
Year Ended December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 198,702 | $ | 265,951 | $ | 237,956 | $ | (596,500 | ) | $ | 106,109 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of trading securities | — | — | (7,527,670 | ) | — | (7,527,670 | ) | |||||||||||||
Purchases of other invested assets | — | — | (276,926 | ) | — | (276,926 | ) | |||||||||||||
Sales of trading securities | — | — | 7,540,194 | — | 7,540,194 | |||||||||||||||
Sales of other invested assets | — | — | 187,477 | — | 187,477 | |||||||||||||||
Other | — | — | 28,782 | — | 28,782 | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (48,143 | ) | — | (48,143 | ) | |||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Partial par value reduction | (12,981 | ) | — | — | — | (12,981 | ) | |||||||||||||
Dividends paid | (34,059 | ) | — | — | — | (34,059 | ) | |||||||||||||
Intercompany dividends paid | — | (274,500 | ) | (322,000 | ) | 596,500 | — | |||||||||||||
Proceeds from the exercise of stock options | 12,137 | — | — | — | 12,137 | |||||||||||||||
Share repurchases | (173,006 | ) | — | — | — | (173,006 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (207,909 | ) | (274,500 | ) | (322,000 | ) | 596,500 | (207,909 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (9,207 | ) | (8,549 | ) | (132,187 | ) | — | (149,943 | ) | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 19,997 | 11,324 | 650,558 | — | 681,879 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 10,790 | $ | 2,775 | $ | 518,371 | $ | — | $ | 531,936 | ||||||||||
Year Ended December 31, 2012 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ | 338,565 | $ | 357,438 | $ | 702,853 | $ | (770,000 | ) | $ | 628,856 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of trading securities | — | — | (8,006,237 | ) | — | (8,006,237 | ) | |||||||||||||
Purchases of other invested assets | — | — | (333,031 | ) | — | (333,031 | ) | |||||||||||||
Sales of available for sale securities | — | — | 236,978 | — | 236,978 | |||||||||||||||
Sales of trading securities | — | — | 7,892,907 | — | 7,892,907 | |||||||||||||||
Sales of other invested assets | — | — | 53,741 | — | 53,741 | |||||||||||||||
Capital contribution to subsidiary | (110,000 | ) | — | — | 110,000 | — | ||||||||||||||
Other | — | — | (104,091 | ) | — | (104,091 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (110,000 | ) | — | (259,733 | ) | 110,000 | (259,733 | ) | ||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Partial par value reduction | (67,825 | ) | — | — | — | (67,825 | ) | |||||||||||||
Intercompany dividends paid | — | (355,000 | ) | (415,000 | ) | 770,000 | — | |||||||||||||
Proceeds from the exercise of stock options | 10,527 | — | — | — | 10,527 | |||||||||||||||
Share repurchases | (263,942 | ) | — | — | — | (263,942 | ) | |||||||||||||
Capital contribution from parent | — | — | 110,000 | (110,000 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | (321,240 | ) | (355,000 | ) | (305,000 | ) | 660,000 | (321,240 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (92,675 | ) | 2,438 | 138,120 | — | 47,883 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 112,672 | 8,886 | 512,438 | — | 633,996 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 19,997 | $ | 11,324 | $ | 650,558 | $ | — | $ | 681,879 | ||||||||||
Notes to Parent Company Condensed Financial Information | ||||||||||||||||||||
a) Dividends | ||||||||||||||||||||
Allied World Switzerland received cash dividends from its subsidiaries of $294,000, $274,500 and $355,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Such dividends are included in “cash flows provided by (used in) operating activities” in the condensed consolidating statement of cash flows. |
Unaudited_Quarterly_Financial_
Unaudited Quarterly Financial Data | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Unaudited quarterly financial data | UNAUDITED QUARTERLY FINANCIAL DATA | ||||||||||||||||
The following are the unaudited consolidated statements of income by quarter for the years ended December 31, 2014 and 2013: | |||||||||||||||||
Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
REVENUES: | |||||||||||||||||
Gross premiums written | $ | 565,743 | $ | 707,884 | $ | 760,405 | $ | 901,393 | |||||||||
Premiums ceded | (137,948 | ) | (139,142 | ) | (206,481 | ) | (129,779 | ) | |||||||||
Net premiums written | 427,795 | 568,742 | 553,924 | 771,614 | |||||||||||||
Change in unearned premiums | 145,694 | (27,005 | ) | (16,677 | ) | (241,329 | ) | ||||||||||
Net premiums earned | 573,489 | 541,737 | 537,247 | 530,285 | |||||||||||||
Net investment income | 49,050 | 43,412 | 36,793 | 47,619 | |||||||||||||
Net realized investment (losses) gains | (15,329 | ) | (35,136 | ) | 85,217 | 54,205 | |||||||||||
Other income | 1,032 | 1,032 | — | — | |||||||||||||
608,242 | 551,045 | 659,257 | 632,109 | ||||||||||||||
EXPENSES: | |||||||||||||||||
Net losses and loss expenses | 272,959 | 336,090 | 314,855 | 275,286 | |||||||||||||
Acquisition costs | 80,718 | 72,403 | 74,279 | 67,722 | |||||||||||||
General and administrative expenses | 100,914 | 88,294 | 96,188 | 80,340 | |||||||||||||
Other expense | 2,003 | 6,575 | — | — | |||||||||||||
Amortization of intangible assets | 633 | 633 | 634 | 633 | |||||||||||||
Interest expense | 14,304 | 14,325 | 14,592 | 14,534 | |||||||||||||
Foreign exchange (gain) loss | (21 | ) | 278 | 651 | 49 | ||||||||||||
471,510 | 518,598 | 501,199 | 438,564 | ||||||||||||||
Income before income taxes | 136,732 | 32,447 | 158,058 | 193,545 | |||||||||||||
Income tax expense | 6,223 | 1,532 | 6,195 | 16,573 | |||||||||||||
NET INCOME | $ | 130,509 | $ | 30,915 | $ | 151,863 | $ | 176,972 | |||||||||
PER SHARE DATA | |||||||||||||||||
Basic earnings per share | $ | 1.35 | $ | 0.32 | $ | 1.55 | $ | 1.78 | |||||||||
Diluted earnings per share | $ | 1.33 | $ | 0.31 | $ | 1.52 | $ | 1.74 | |||||||||
Weighted average common shares outstanding | 96,386,796 | 96,458,231 | 97,809,639 | 99,545,187 | |||||||||||||
Weighted average common shares and common share equivalents outstanding | 98,394,432 | 98,444,238 | 99,724,802 | 101,584,662 | |||||||||||||
Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
REVENUES: | |||||||||||||||||
Gross premiums written | $ | 555,490 | $ | 580,893 | $ | 765,200 | $ | 837,081 | |||||||||
Premiums ceded | (164,360 | ) | (127,816 | ) | (183,978 | ) | (142,029 | ) | |||||||||
Net premiums written | 391,130 | 453,077 | 581,222 | 695,052 | |||||||||||||
Change in unearned premiums | 133,431 | 57,696 | (73,951 | ) | (231,824 | ) | |||||||||||
Net premiums earned | 524,561 | 510,773 | 507,271 | 463,228 | |||||||||||||
Net investment income | 47,270 | 39,271 | 37,635 | 33,388 | |||||||||||||
Net realized investment gains (losses) | 67,599 | 27,487 | (115,198 | ) | 79,637 | ||||||||||||
639,430 | 577,531 | 429,708 | 576,253 | ||||||||||||||
EXPENSES: | |||||||||||||||||
Net losses and loss expenses | 315,966 | 276,970 | 275,128 | 255,178 | |||||||||||||
Acquisition costs | 66,257 | 65,114 | 64,617 | 56,685 | |||||||||||||
General and administrative expenses | 100,467 | 88,553 | 80,585 | 82,680 | |||||||||||||
Amortization of intangible assets | 633 | 633 | 634 | 633 | |||||||||||||
Interest expense | 14,094 | 14,094 | 14,188 | 14,134 | |||||||||||||
Foreign exchange loss | 658 | 4,353 | 490 | 2,518 | |||||||||||||
498,075 | 449,717 | 435,642 | 411,828 | ||||||||||||||
Income (loss) before income taxes | 141,355 | 127,814 | (5,934 | ) | 164,425 | ||||||||||||
Income tax expense (benefit) | 3,448 | 4,971 | (4,072 | ) | 5,433 | ||||||||||||
NET INCOME (LOSS) | $ | 137,907 | $ | 122,843 | $ | (1,862 | ) | $ | 158,992 | ||||||||
PER SHARE DATA | |||||||||||||||||
Basic earnings (loss) per share | 1.37 | 1.2 | (0.02 | ) | 1.53 | ||||||||||||
Diluted earnings (loss) per share | 1.34 | 1.18 | (0.02 | ) | 1.5 | ||||||||||||
Weighted average common shares outstanding | 100,814,955 | 101,974,077 | 103,267,659 | 103,840,818 | |||||||||||||
Weighted average common shares and common share equivalents outstanding | 103,129,812 | 104,184,579 | 103,267,659 | 106,295,529 | |||||||||||||
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent event | SUBSEQUENT EVENTS |
a) Dividend | |
On January 2, 2015, the Company paid a quarterly dividend of $0.225 per share to shareholders of record on December 24, 2014. |
Schedule_III_Supplementary_Ins
Schedule III - Supplementary Insurance Information | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule III - Supplementary insurance information | chedule III | |||||||||||||||||||||||||||||||||||
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG | ||||||||||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | ||||||||||||||||||||||||||||||||||||
(Expressed in thousands of United States dollars | ||||||||||||||||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Net | Reserve for | Unearned | Net | Net | Losses and | Amortization of | Other | Net | ||||||||||||||||||||||||||||
Deferred | Losses | Premiums | Premiums | Investment | Loss | Deferred | Operating | Premiums | ||||||||||||||||||||||||||||
Acquisition | and Loss | Earned | Income | Expenses | Acquisition | Costs | Written | |||||||||||||||||||||||||||||
Costs | Expenses | Costs | ||||||||||||||||||||||||||||||||||
North American Insurance | $ | 55,756 | $ | 3,806,621 | $ | 1,003,151 | $ | 1,111,164 | $ | — | $ | 683,836 | $ | 105,914 | $ | 219,665 | $ | 1,230,839 | ||||||||||||||||||
Global Markets Insurance | 23,336 | 568,126 | 223,402 | 162,566 | — | 61,057 | 18,222 | 68,106 | 187,997 | |||||||||||||||||||||||||||
Reinsurance | 72,454 | 1,506,418 | 328,760 | 909,028 | — | 454,297 | 170,986 | 77,965 | 903,239 | |||||||||||||||||||||||||||
Corporate | — | — | — | — | 176,874 | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 151,546 | $ | 5,881,165 | $ | 1,555,313 | $ | 2,182,758 | $ | 176,874 | $ | 1,199,190 | $ | 295,122 | $ | 365,736 | $ | 2,322,075 | ||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||
Net Deferred | Reserve for | Unearned | Net | Net | Losses and | Amortization of | Other | Net | ||||||||||||||||||||||||||||
Acquisition | Losses | Premiums | Premiums | Investment | Loss | Deferred | Operating | Premiums | ||||||||||||||||||||||||||||
Costs | and Loss | Earned | Income | Expenses | Acquisition Costs | Costs | Written | |||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||
North American Insurance | $ | 45,446 | $ | 3,701,744 | $ | 872,628 | $ | 1,022,979 | $ | — | $ | 651,267 | $ | 94,869 | $ | 209,042 | $ | 1,082,441 | ||||||||||||||||||
Global Markets Insurance | 9,828 | 568,675 | 164,792 | 126,008 | — | 50,395 | 10,051 | 63,164 | 145,002 | |||||||||||||||||||||||||||
Reinsurance | 71,387 | 1,496,110 | 358,836 | 856,846 | — | 421,580 | 147,753 | 80,079 | 893,038 | |||||||||||||||||||||||||||
Corporate | — | — | — | — | 157,564 | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 126,661 | $ | 5,766,529 | $ | 1,396,256 | $ | 2,005,833 | $ | 157,564 | $ | 1,123,242 | $ | 252,673 | $ | 352,285 | $ | 2,120,481 | ||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||
Net Deferred | Reserve for | Unearned | Net | Net | Losses and | Amortization of | Other | Net | ||||||||||||||||||||||||||||
Acquisition | Losses | Premiums | Premiums | Investment | Loss | Deferred | Operating | Premiums | ||||||||||||||||||||||||||||
Costs | and Loss | Earned | Income | Expenses | Acquisition Costs | Costs | Written | |||||||||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||||||||
North American Insurance | $ | 38,413 | $ | 3,597,226 | $ | 763,743 | $ | 892,721 | $ | — | $ | 608,762 | $ | 77,701 | $ | 185,231 | $ | 964,199 | ||||||||||||||||||
Global Markets Insurance | 8,326 | 567,675 | 131,130 | 115,660 | — | 19,536 | 8,483 | 48,365 | 125,577 | |||||||||||||||||||||||||||
Reinsurance | 61,271 | 1,480,648 | 323,148 | 740,517 | — | 510,966 | 119,538 | 73,725 | 748,047 | |||||||||||||||||||||||||||
Corporate | — | — | — | — | 167,141 | — | — | — | — | |||||||||||||||||||||||||||
Total | $ | 108,010 | $ | 5,645,549 | $ | 1,218,021 | $ | 1,748,898 | $ | 167,141 | $ | 1,139,264 | $ | 205,722 | $ | 307,321 | $ | 1,837,823 | ||||||||||||||||||
Schedule_IV_Supplementary_Rein
Schedule IV - Supplementary Reinsurance Information | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ||||||||||||||||||
Schedule IV - Supplementary reinsurance information | Schedule IV | |||||||||||||||||
ALLIED WORLD ASSURANCE COMPANY HOLDINGS, AG | ||||||||||||||||||
SUPPLEMENTARY REINSURANCE INFORMATION | ||||||||||||||||||
(Expressed in thousands of United States dollars) | ||||||||||||||||||
Property and Casualty: | (a) | (b) | (c) | (d) | Percentage of | |||||||||||||
Gross | Ceded to | Assumed from | Net | Amount Assumed | ||||||||||||||
Other | Other | Amount | to Net | |||||||||||||||
Companies | Companies | (a) - (b) + | (c) / (d) | |||||||||||||||
(c) | ||||||||||||||||||
Year Ended December 31, 2014 | $ | 1,996,831 | $ | 613,350 | $ | 938,594 | $ | 2,322,075 | 40% | |||||||||
Year Ended December 31, 2013 | $ | 1,804,910 | $ | 618,183 | $ | 933,754 | $ | 2,120,481 | 44% | |||||||||
Year Ended December 31, 2012 | $ | 1,569,021 | $ | 491,448 | $ | 760,250 | $ | 1,837,823 | 41% | |||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Basis of accounting | These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”). | |
Intercompany accounts and transactions have been eliminated on consolidation and entities meeting consolidation requirements have been included in the consolidated financial statements. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. | ||
Use of estimates | The preparation of financial statements in conformity with U.S. 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The significant estimates reflected in the Company’s financial statements include, but are not limited to: | |
• | The premium estimates for certain reinsurance agreements, | |
• | Recoverability of deferred acquisition costs, | |
• | The reserve for outstanding losses and loss expenses, | |
• | Valuation of ceded reinsurance recoverables, | |
• | Determination of impairment of goodwill and other intangible assets, and | |
• | Valuation of financial instruments. | |
Premiums | Premiums are recorded as written on the inception date of the policy. For certain types of business written by the Company, notably assumed reinsurance, premium income may not be known at the policy inception date. In the case of quota share reinsurance treaties assumed by the Company, the underwriter makes an estimate of premium income at inception. The underwriter’s estimate is based on statistical data provided by reinsureds and the underwriter’s judgment and experience. Such estimations are refined over the reporting period of each treaty as actual written premium information is reported by ceding companies and intermediaries. Premiums resulting from changes in the estimate of the premium income are recorded in the period the estimate is changed. Certain insurance and reinsurance contracts may require that the premium be adjusted at the expiry of the contract to reflect the change in exposure or loss experience of the insured or reinsured. | |
Premiums are recognized as earned over the period of policy coverage in proportion to the risks to which they relate. Reinsurance premiums under a losses-occurring reinsurance contract are earned over the coverage period. Reinsurance premiums under a risks-attaching reinsurance contract are earned over the same period as the underlying policies, or risks, covered by the contract. As a result, the earning pattern of a risks-attaching reinsurance contract may extend up to 24 months, reflecting the inception dates of the underlying policies. Premiums relating to the unexpired periods of coverage are recorded on the consolidated balance sheets as “unearned premiums”. | ||
Acquisition costs | Acquisition costs, comprised of commissions, brokerage fees and insurance taxes, are costs that are directly related to the successful acquisition of new and renewal business. While permitted under U.S. GAAP to defer certain internal costs that are directly related to the successful acquisition of new and renewal business, the Company does not defer such costs. Acquisition costs that are deferred are expensed as the premiums to which they relate are earned. Acquisition costs relating to the reserve for unearned premiums are deferred and carried on the balance sheets as an asset and are amortized over the period of coverage. Expected losses and loss expenses, other costs and anticipated investment income related to these unearned premiums are considered in determining the recoverability or deficiency of deferred acquisition costs. If it is determined that deferred acquisition costs are not recoverable, they are expensed. Further analysis is performed to determine if a liability is required to provide for losses which may exceed the related unearned premiums. | |
Reserve for losses and loss expenses | The reserve for losses and loss expenses is comprised of two main elements: outstanding loss reserves (“OSLR,” also known as case reserves) and reserves for losses incurred but not reported (“IBNR”). OSLR relate to known claims and represent management’s best estimate of the likely loss payment. IBNR relates to reserves established by the Company for claims that have occurred but have not yet been reported to us as well as for changes in the values of claims that have been reported to us but are not yet settled. | |
The reserve for IBNR is estimated by management for each line of business based on various factors including underwriters’ expectations about loss experience, actuarial analysis, comparisons with the results of industry benchmarks and loss experience to date. The Company’s actuaries employ generally accepted actuarial methodologies to determine estimated ultimate loss reserves. The adequacy of the reserves is re-evaluated quarterly by the Company’s actuaries. At the completion of each quarterly review of the reserves, a reserve analysis is prepared and reviewed with the Company’s loss reserve committee. This committee determines management’s best estimate for loss and loss expense reserves based upon the reserve analysis. | ||
While management believes that the reserves for OSLR and IBNR are sufficient to cover losses assumed by the Company, there can be no assurance that losses will not deviate from the Company’s reserves, possibly by material amounts. The methodology of estimating loss reserves is periodically reviewed to ensure that the assumptions made continue to be appropriate. The Company recognizes any changes in its loss reserve estimates and the related reinsurance recoverables in the consolidated statements of operations and comprehensive income ("consolidated income statements") in the periods in which they are determined. These are recorded in “net losses and loss expenses”. | ||
Ceded reinsurance | In the ordinary course of business, the Company uses both treaty and facultative reinsurance to minimize its net loss exposure to any one catastrophic loss event or to an accumulation of losses from a number of smaller events. Reinsurance premiums ceded are expensed and any commissions recorded thereon are earned over the period the reinsurance coverage is provided in proportion to the risks to which they relate. For reinsurance treaties that have contractual minimum premium provisions, premiums ceded are recorded at the inception of the treaty based on the minimum premiums. Any unearned ceding commission is included in “net deferred acquisitions costs” on the consolidated balance sheets and is recorded as a reduction to the overall net deferred acquisition cost balance. Prepaid reinsurance represents unearned premiums ceded to reinsurance companies. Reinsurance recoverable includes the balances due from those reinsurance companies under the terms of the Company’s reinsurance agreements for unpaid losses and loss reserves, including IBNR. Amounts recoverable from reinsurers are estimated in a manner consistent with the estimated claim liability associated with the reinsured policy. | |
The Company determines the portion of the IBNR liability that will be recoverable under its reinsurance contracts by reference to the terms of the reinsurance protection purchased. This determination is necessarily based on the estimate of IBNR and accordingly, is subject to the same uncertainties as the estimate of IBNR. | ||
The Company remains liable to the extent that its reinsurers do not meet their obligations under the reinsurance contracts; therefore, the Company regularly evaluates the financial condition of its reinsurers and monitors concentration of credit risk. | ||
Investments | All of our fixed maturity investments and equity securities are classified as trading securities as the Company has elected the fair value option permitted under U.S. GAAP for these investments. Trading securities are carried at fair value with any change in unrealized gains or losses recognized in the consolidated income statements and included in “net realized investment gains”. As a result of our investment classification, we do not record any change in unrealized gains or losses in our investments as a separate component of accumulated other comprehensive income on the consolidated balance sheets. | |
Other invested assets consist primarily of investments in hedge funds and private equity funds, which have been accounted for as trading securities as the Company has elected the fair value option as permitted under U.S. GAAP. In addition, included in the Company’s other invested assets are various investments which are accounted for using the equity method of accounting. Generally, the Company uses the equity method where it does not have a controlling interest and is not the primary beneficiary. Equity method investments are recorded at cost and adjusted for the Company’s proportionate share of earnings or losses on a quarterly lag basis. An other-than-temporary impairment charge related to the equity method investments is assessed when facts and circumstances exists that indicate an impairment may exist. An other-than-temporary impairment charge is recorded when it is determined that the carrying value of the equity method investment is below its fair value and the Company does not have the intent and ability to hold to recovery. No equity method investment was deemed significant to disclose summarized financial data. Other investments are recorded based on valuation techniques depending on the nature of the individual assets. | ||
Investment securities are recorded on a trade date basis. Investment income is recognized when earned and includes the accrual of discount or amortization of premium on fixed maturity investments using the effective yield method and is net of related expenses. Interest income for fixed maturity investments is accrued and recognized based on the contractual terms of the fixed maturity investments and is included in “net investment income” in the consolidated income statements. The Company’s share of distributed and undistributed net income from equity method investments is included in “net investment income”. The return on investments is managed on a total financial statement portfolio return basis, which includes the distributed and undistributed net income from equity method investments, and as such have classified these amounts in net investment income. | ||
Realized gains and losses on the disposition of investments, which are based upon the first-in first-out method of identification, are included in “net realized investment gains” in the consolidated income statements. For mortgage-backed and asset-backed securities and any other holdings for which there is a prepayment risk, prepayment assumptions are evaluated and revised on a regular basis. Revised prepayment assumptions are applied to securities on a retrospective basis to the date of acquisition. The cumulative adjustments to amortized cost required due to these changes in effective yields and maturities are recognized in net investment income in the same period as the revision of the assumptions. | ||
Fair value measurements | At each measurement date, the Company estimates the fair value of the financial instruments using various valuation techniques. The Company utilizes, to the extent available, quoted market prices in active markets or observable market inputs in estimating the fair value of financial instruments. When quoted market prices or observable market inputs are not available, the Company may utilize valuation techniques that rely on unobservable inputs to estimate the fair value of financial instruments. The Company bases its determination of whether a market is active or inactive on the spread between what a seller is asking for a security and what a buyer is bidding for that security. Spreads that are significantly above historical spreads are considered inactive markets. The Company also considers the volume of trading activity in the determination of whether a market is active or inactive. See note 5 for additional information regarding the fair value of financial instruments. | |
The Company utilizes independent pricing sources to obtain market quotations for securities that have quoted prices in active markets. In general, the independent pricing sources use observable market inputs including, but not limited to, investment yields, credit risks and spreads, benchmarking of like securities, reported trades and sector groupings to determine the fair value. For a majority of the portfolio, the Company obtained two or more prices per security as of December 31, 2014. When multiple prices are obtained, a price source hierarchy is utilized to determine which price source is the best estimate of the fair value of the security. The price source hierarchy emphasizes more weighting to significant observable inputs such as index pricing and less weighting towards non-binding broker-dealer quotes. In addition, to validate all prices obtained from these pricing sources including non-binding broker-dealer quotes, the Company also obtains prices from its investment portfolio managers and other sources (e.g., another pricing vendor), and compares the prices obtained from the independent pricing sources to those obtained from the Company’s investment portfolio managers and other sources. The Company investigates any material differences between the multiple sources and determines which price best reflects the fair value of the individual security. There were no material differences between the prices obtained from the independent pricing sources and the prices obtained from the Company’s investment portfolio managers and other sources as of December 31, 2014 and 2013. | ||
Variable interest entities | The Company is involved in the normal course of business with variable interest entities (“VIEs”) as a passive investor in certain asset-backed securities issued by third-party VIEs and affiliated VIEs. The Company performs a qualitative assessment at the date when it becomes initially involved in the VIE, followed by ongoing reassessments related to its involvement in VIEs. The Company’s maximum exposure to loss with respect to these investments is limited to the investment carrying amounts reported in the Company’s consolidated balance sheets and any unfunded commitments. | |
Translation of foreign currencies | Monetary assets and liabilities denominated in foreign currencies are translated into U.S. dollars at the exchange rates in effect on the balance sheet date. Foreign currency revenues and expenses are translated at the average exchange rates prevailing during the period. Exchange gains and losses, including those arising from forward exchange contracts, are included in the consolidated income statements. The Company’s functional currency, and that of each its operating subsidiaries, is the U.S. dollar as it is the single largest currency in which the Company and its each of its subsidiaries transact business and hold invested assets. | |
Cash and cash equivalents | Cash and cash equivalents include amounts held in banks, time deposits, commercial paper, discount notes and U.S. Treasury Bills with maturities of less than three months from the date of purchase. | |
Income taxes | Allied World Switzerland and certain of its subsidiaries operate in jurisdictions where they are subject to income taxation. Current and deferred income taxes are charged or credited to operations, or to accumulated other comprehensive income in certain cases, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes payable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the financial statements and those used in the various jurisdictional tax returns. | |
It is the Company’s policy to recognize interest accrued related to unrecognized tax benefits in “interest expense” and penalties in “general and administrative expenses” in the consolidated income statements. The Company has not recorded any interest or penalties during the years ended December 31, 2014, 2013 and 2012 and the Company has not accrued any payment of interest and penalties as of December 31, 2014 and 2013. | ||
Employee stock options, restricted stock units and performance-based equity awards | The Company has an employee stock option plan, which is in run-off, in which the amount of Allied World Switzerland's common shares received as compensation through the issuance of stock options is determined by reference to the value of the shares. Compensation expense for stock options granted to employees is recorded on a straight-line basis over the option vesting period and is based on the fair value of the stock options on the grant date. The fair value of each stock option on the grant date is determined by using the Black-Scholes option-pricing model. | |
The Company has granted performance-based equity awards to key employees in order to promote the long-term growth and profitability of the Company. Each award represents the right to receive a number of common shares in the future, based upon the achievement of established performance criteria during the applicable performance period. The compensation expense for these awards is based on the market value of Allied World Switzerland’s common shares on the grant date, and is recognized on a straight-line basis over the applicable performance and vesting period. The Company will also adjust the compensation expense, as a cumulative adjustment, to the extent the Company's performance is above or below the targeted performance criteria. | ||
The Company has also granted cash-equivalent, performance-based awards to certain employees that vest based upon the achievement of established performance criteria during the applicable performance period. These cash-equivalent, performance-based awards vest after a three-year performance period. The amount payable per unit awarded will be equal to the price per share of Allied World Switzerland’s common shares, and as such the Company measures the value of the award each reporting period based on the period-ending share price. The effects of changes in the share price at each period end during the service period are recognized as changes in compensation expense over the service period. The Company will also adjust the compensation expense, as a cumulative adjustment, to the extent the Company's performance is above or below the targeted performance criteria. | ||
The Company has granted restricted stock units (“RSUs”) to certain employees. The compensation expense for the RSUs is based on the market value of Allied World Switzerland’s common shares on the grant date, and is recognized on a straight-line basis over the applicable vesting period. | ||
The Company has also granted cash-equivalent RSUs to certain employees that vest on a straight-line basis over the applicable vesting period. The amount payable per unit awarded will be equal to the price per share of Allied World Switzerland’s common shares and as such the Company measures the value of the award each reporting period based on the period ending share price. The effects of changes in the share price at each period end during the service period are recognized as increases or decreases in compensation expense over the service period. | ||
Goodwill and intangible assets | The Company classifies its intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization, and (3) goodwill. Intangible assets, other than goodwill, generally consist of trademarks, renewal rights, internally generated software, non-compete covenants and insurance licenses. | |
For intangible assets with finite lives, the value of the assets is amortized over their expected useful lives and the expense is included in “amortization of intangible assets” in the consolidated income statements. The Company tests assets for impairment if conditions exist that indicate the carrying value may not be recoverable. If, as a result of the evaluation, the Company determines that the value of the intangible assets is impaired, then the value of the assets will be written-down in the period in which the determination of the impairment is made. | ||
For indefinite lived intangible assets the Company does not amortize the intangible asset but evaluates and compares the fair value of the assets to their carrying values on an annual basis or more frequently if circumstances warrant. If, as a result of the evaluation, the Company determines that the value of the intangible assets is impaired, then the value of the assets will be written-down in the period in which the determination of the impairment is made. | ||
Goodwill represents the excess of the cost of acquisitions over the fair value of net assets acquired and is not amortized. Goodwill is assigned at acquisition to the applicable reporting unit(s) based on the expected benefit to be received by the reporting units from the business combination. The Company determines the expected benefit based on several factors including the purpose of the business combination, the strategy of the Company subsequent to the business combination and structure of the acquired company subsequent to the business combination. A reporting unit is a component of the Company’s business that has discrete financial information that is reviewed by management. In determining the reporting unit, the Company analyzes the inputs, processes, outputs and overall operating performance of the reporting unit. The Company has determined that for purposes of the acquisition of Allied World Underwriters, Inc. ("AW Underwriters") (f/k/a Darwin Professional Underwriters, Inc.) the U.S. direct insurance operations of the North American Insurance segment is the reporting unit that is expected to receive the benefit of the business combination and as such all of the goodwill has been allocated to this reporting unit. | ||
For goodwill, the Company performs an annual impairment test, or more frequently if circumstances are warranted. The Company may first assess qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The results of the qualitative assessment will determine if an entity needs to proceed with the two-step goodwill impairment test. For the year ended December 31, 2014, the Company elected to bypass the qualitative assessment and performed the first step of the goodwill impairment test. | ||
The first step of the goodwill impairment test is to compare the fair value of the reporting unit with its carrying value, including goodwill. If the carrying amount of the reporting unit exceeds its fair value then the second step of the goodwill impairment test is performed. | ||
The second step of the goodwill impairment test compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill in order to determine the amount of impairment to be recognized. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of the reporting unit as a whole. The excess of the carrying value of goodwill above the implied goodwill, if any, would be recognized as an impairment charge in the consolidated income statements. | ||
Derivative instruments | The Company utilizes derivative financial instruments as part of its overall risk management strategy. The Company recognizes all derivative financial instruments at fair value as either assets or liabilities on the consolidated balance sheets. The accounting for gains and losses associated with changes in the fair value of a derivative and the effect on the consolidated financial statements depends on its hedge designation and whether the hedge is highly effective in achieving offsetting changes in the fair value of the asset or liability hedged. | |
The Company uses currency forward contracts and foreign currency swaps to manage currency exposure. The Company also utilizes various derivative instruments such as interest rate futures, interest rate swaps and index options, for the purpose of managing market exposures, interest rate volatility, portfolio duration, hedging certain investments, or enhancing investment performance. These derivatives are not designated as hedges and accordingly are carried at fair value on the consolidated balance sheets with realized and unrealized gains and losses included in the consolidated income statements. Refer to Note 4 for the Company’s related disclosure. | ||
Earnings per share | Basic earnings per share is defined as net income available to common shareholders divided by the weighted average number of common shares outstanding for the period, giving no effect to dilutive securities. Diluted earnings per share is defined as net income available to common shareholders divided by the weighted average number of common and common share equivalents outstanding calculated using the treasury stock method for all potentially dilutive securities, including share warrants, employee stock options, employee share repurchase plan, RSUs and performance-based awards. When the effect of dilutive securities would be anti-dilutive, these securities are excluded from the calculation of diluted earnings per share. | |
Treasury shares | Common shares repurchased by the Company and not subsequently cancelled are classified as "treasury shares" on the consolidated balance sheets and are recorded at cost. When shares are reissued from treasury the historical cost, based on the first-in, first-out method, is used to determine the cost of the reissued shares. The difference between the cost of the treasury shares and the par value of the common stock shall be first reflected as additional paid-in capital, but to the extent additional paid-in capital is exhausted the remainder shall reduce retained earnings. The issuance of shares out of treasury have been related to vesting equity-based compensation of the Company's employees and directors. | |
New accounting pronouncements | In April 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-08, "Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08"). ASU 2014-08 changes the requirements for reporting discontinued operations, such that a disposal of a component of the Company's operations is required to be reported as discontinued operations if the disposal represents a strategic shift that has, or will have, a major effect on the Company's operations and financial results. Examples of strategic shifts that could have a major effect on the Company's operations could include a disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of the Company. ASU 2014-08 is effective for all disposals that occur after January 1, 2015. The Company does not believe the adoption of ASU 2014-08 will have a material impact on future financial statements and related disclosures. | |
In May 2014, the FASB issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). ASU 2014-09 provides a framework, through a five-step process, for recognizing revenue from customers, improves comparability and consistency of recognizing revenue across entities, industries, jurisdictions and capital markets, and requires enhanced disclosures. Certain contracts with customers are specifically excluded from the scope of ASU 2014-09, including; amongst others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services - Insurance. ASU 2014-09 is effective on January 1, 2017 with retrospective adoption required for the comparative periods. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on future financial statements and related disclosures. | ||
In August 2014, the FASB issued Accounting Standards Update 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern" ("ASU 2014-15"). Currently, there is no guidance under U.S. GAAP regarding management's responsibility to assess whether there is substantial doubt about an entity's ability to continue as a going concern. Under ASU 2014-15, the Company will be required to assess its ability to continue as a going concern each interim and annual reporting period and provide certain disclosures if there is substantial doubt about the entity's ability to continue as a going concern, including management's plan to alleviate the substantial doubt. ASU 2014-15 is effective for the year ended December 31, 2016 and early adoption is permitted. The Company is currently assessing the impact the adoption of ASU 2014-15 will have on future financial statements and related disclosures. | ||
In November 2014, the FASB issued Accounting Standards Update 2014-17, "Pushdown Accounting" ("ASU 2014-17"). ASU 2014-17 provides an acquired entity with an option to apply pushdown accounting in its separate financial statements upon an acquirer obtaining control of the acquired entity. The acquired entity may also elect to apply pushdown accounting in a subsequent reporting period, if pushdown accounting was not applied when the acquirer obtained control, but that will be treated as a change in accounting principle. Once pushdown accounting is applied, the election is irrevocable. The Company adopted ASU 2014-17 when it became effective in November 2014. |
Investments_Tables
Investments (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Investments [Abstract] | ||||||||||||||||||||||
Schedule of trading securities | Securities accounted for at fair value with changes in fair value recognized in the consolidated income statements by category are as follows: | |||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||
Fair Value | Amortized Cost | Fair Value | Amortized Cost | |||||||||||||||||||
U.S. government and government agencies | $ | 1,610,502 | $ | 1,610,880 | $ | 1,676,788 | $ | 1,684,832 | ||||||||||||||
Non-U.S. government and government agencies | 188,199 | 196,332 | 191,776 | 197,082 | ||||||||||||||||||
States, municipalities and political subdivisions | 170,567 | 165,615 | 231,555 | 234,406 | ||||||||||||||||||
Corporate debt: | ||||||||||||||||||||||
Financial institutions | 1,024,667 | 1,018,777 | 958,794 | 943,518 | ||||||||||||||||||
Industrials | 1,029,729 | 1,037,820 | 1,174,047 | 1,165,448 | ||||||||||||||||||
Utilities | 110,997 | 111,599 | 69,426 | 69,658 | ||||||||||||||||||
Mortgage-backed | 1,263,517 | 1,219,712 | 1,292,502 | 1,267,863 | ||||||||||||||||||
Asset-backed | 670,832 | 674,505 | 505,910 | 502,543 | ||||||||||||||||||
Total fixed maturity investments, trading | $ | 6,069,010 | $ | 6,035,240 | $ | 6,100,798 | $ | 6,065,350 | ||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Fair Value | Cost | Fair Value | Cost | |||||||||||||||||||
Equity securities | $ | 844,163 | $ | 791,206 | $ | 699,846 | $ | 647,301 | ||||||||||||||
Other invested assets | 812,543 | 725,069 | 764,081 | 658,683 | ||||||||||||||||||
$ | 1,656,706 | $ | 1,516,275 | $ | 1,463,927 | $ | 1,305,984 | |||||||||||||||
Schedule of other invested assets | Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of December 31, 2014 and 2013 were as follows: | |||||||||||||||||||||
Fund Type | Carrying Value as of December 31, 2014 | Investments | Estimated | Investments | Redemption | Redemption | Unfunded | |||||||||||||||
with | Remaining | without | Frequency(1) | Notice | Commitments | |||||||||||||||||
Redemption | Restriction | Redemption | Period(1) | |||||||||||||||||||
Restrictions | Period | Restrictions | ||||||||||||||||||||
Private equity (primary and secondary) | $ | 184,576 | $ | 184,576 | 2 - 8 Years | $ | — | $ | 223,802 | |||||||||||||
Mezzanine debt | 166,905 | 166,905 | 5 - 9 Years | — | 204,232 | |||||||||||||||||
Distressed | 5,869 | 5,869 | 3 Years | — | 5,180 | |||||||||||||||||
Real estate | — | — | 9 Years | — | 50,000 | |||||||||||||||||
Total private equity | 357,350 | 357,350 | — | 483,214 | ||||||||||||||||||
Distressed | 170,169 | 170,169 | — | Based on net asset value | 60 Days | — | ||||||||||||||||
Equity long/short | 84,198 | — | 84,198 | Quarterly | 30 -60 Days | — | ||||||||||||||||
Multi-strategy | 51,507 | — | 51,507 | Quarterly | 45 -90 Days | — | ||||||||||||||||
Relative value credit | 119,156 | — | 119,156 | Quarterly | 60 Days | — | ||||||||||||||||
Total hedge funds | 425,030 | 170,169 | 254,861 | — | ||||||||||||||||||
High yield loan fund | 30,163 | — | 30,163 | Monthly | 30 days | — | ||||||||||||||||
Total other invested assets at fair value | 812,543 | 527,519 | 285,024 | 483,214 | ||||||||||||||||||
Other private securities | 142,966 | — | 142,966 | — | ||||||||||||||||||
Total other invested assets | $ | 955,509 | $ | 527,519 | $ | 427,990 | $ | 483,214 | ||||||||||||||
Fund Type | Carrying Value as of December 31, 2013 | Investments | Estimated | Investments | Redemption | Redemption | Unfunded | |||||||||||||||
with | Remaining | without | Frequency(1) | Notice | Commitments | |||||||||||||||||
Redemption | Restriction | Redemption | Period(1) | |||||||||||||||||||
Restrictions | Period | Restrictions | ||||||||||||||||||||
Private equity (primary and secondary) | $ | 144,422 | $ | 144,422 | 2 - 9 Years | $ | — | $ | 263,519 | |||||||||||||
Mezzanine debt | 64,627 | 64,627 | 8 - 9 Years | — | 198,756 | |||||||||||||||||
Distressed | 7,776 | 7,776 | 4 Years | — | 5,249 | |||||||||||||||||
Total private equity | 216,825 | 216,825 | — | 467,524 | ||||||||||||||||||
Distressed | 151,227 | 151,227 | 1 - 2 Years | — | — | |||||||||||||||||
Equity long/short | 99,365 | — | 99,365 | Quarterly | 30 -60 Days | — | ||||||||||||||||
Multi-strategy | 136,958 | — | 136,958 | Quarterly | 45 -90 Days | — | ||||||||||||||||
Event driven | 14,018 | — | 14,018 | Annual | 60 Days | — | ||||||||||||||||
Relative value credit | 113,730 | — | 113,730 | Quarterly | 60 Days | — | ||||||||||||||||
Total hedge funds | 515,298 | 151,227 | 364,071 | — | ||||||||||||||||||
High yield loan fund | 31,958 | — | 31,958 | Monthly | 30 days | — | ||||||||||||||||
Total other invested assets at fair value | 764,081 | 368,052 | 396,029 | 467,524 | ||||||||||||||||||
Other private securities | 147,311 | — | 147,311 | — | ||||||||||||||||||
Total other invested assets | $ | 911,392 | $ | 368,052 | $ | 543,340 | $ | 467,524 | ||||||||||||||
-1 | The redemption frequency and notice periods only apply to the investments without redemption restrictions. | |||||||||||||||||||||
Schedule of net investment income | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Fixed maturity investments | $ | 149,449 | $ | 130,380 | $ | 157,437 | ||||||||||||||||
Equity securities | 17,581 | 19,076 | 17,080 | |||||||||||||||||||
Other invested assets: hedge funds and private equity | 12,564 | 8,226 | 6,772 | |||||||||||||||||||
Other invested assets: other private securities | 13,305 | 14,711 | — | |||||||||||||||||||
Cash and cash equivalents | 2,134 | 2,010 | 2,319 | |||||||||||||||||||
Expenses | (18,159 | ) | (16,839 | ) | (16,467 | ) | ||||||||||||||||
Net investment income | $ | 176,874 | $ | 157,564 | $ | 167,141 | ||||||||||||||||
Components of realized gains and losses | ||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Gross realized gains on sale of invested assets | $ | 195,390 | $ | 213,618 | $ | 183,592 | ||||||||||||||||
Gross realized losses on sale of invested assets | (48,239 | ) | (106,321 | ) | (51,702 | ) | ||||||||||||||||
Net realized and unrealized gains (losses) on derivatives | (39,007 | ) | 9,485 | (3,608 | ) | |||||||||||||||||
Mark-to-market gains (losses): | ||||||||||||||||||||||
Debt securities, trading | (1,675 | ) | (117,577 | ) | 106,328 | |||||||||||||||||
Equity securities, trading | 413 | 4,288 | 33,018 | |||||||||||||||||||
Other invested assets, trading | (17,925 | ) | 56,032 | 38,808 | ||||||||||||||||||
Net realized investment gains | $ | 88,957 | $ | 59,525 | $ | 306,436 | ||||||||||||||||
Proceeds from sale of available for sale securities | $ | — | $ | — | $ | 236,336 | ||||||||||||||||
Derivative_Instruments_Tables
Derivative Instruments (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||
Location and amounts of derivative fair values on the unaudited condensed consolidated balance sheets | The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheets: | |||||||||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||||||||||||||||
Asset | Asset | Liability | Liability | Asset | Asset | Liability | Liability | |||||||||||||||||||||||||
Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | Derivative | |||||||||||||||||||||||||
Notional | Fair | Notional | Fair | Notional | Fair | Notional | Fair | |||||||||||||||||||||||||
Amount | Value | Amount | Value | Amount | Value | Amount | Value | |||||||||||||||||||||||||
Foreign exchange contracts | $ | 33,875 | $ | 1,274 | $ | 167,376 | $ | 991 | $ | 294,788 | $ | 6,254 | $ | 122,439 | $ | 1,176 | ||||||||||||||||
Interest rate swaps | — | — | 571,500 | 683 | 491,400 | 6,829 | 40,000 | 4,214 | ||||||||||||||||||||||||
Total derivatives | $ | 33,875 | $ | 1,274 | $ | 738,876 | $ | 1,674 | $ | 786,188 | $ | 13,083 | $ | 162,439 | $ | 5,390 | ||||||||||||||||
Unrealized and realized gains (losses) on derivatives recorded in the unaudited condensed consolidated income statements | The following table provides the net realized and unrealized (losses) gains on derivatives not designated as hedges recorded on the consolidated income statements: | |||||||||||||||||||||||||||||||
Year Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Foreign exchange contracts | $ | 897 | $ | 1,274 | $ | (749 | ) | |||||||||||||||||||||||||
Total included in foreign exchange loss | 897 | 1,274 | (749 | ) | ||||||||||||||||||||||||||||
Put options | 494 | (3,822 | ) | (2,222 | ) | |||||||||||||||||||||||||||
Foreign exchange contracts | 3,538 | 3,054 | (1,024 | ) | ||||||||||||||||||||||||||||
Interest rate swaps | (45,427 | ) | 5,591 | — | ||||||||||||||||||||||||||||
Interest rate futures | 2,388 | 4,662 | (362 | ) | ||||||||||||||||||||||||||||
Total included in net realized investment gains | (39,007 | ) | 9,485 | (3,608 | ) | |||||||||||||||||||||||||||
Total realized and unrealized (losses) gains on derivatives | $ | (38,110 | ) | $ | 10,759 | $ | (4,357 | ) | ||||||||||||||||||||||||
Fair_Value_Of_Financial_Instru1
Fair Value Of Financial Instruments (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||
Fair value hierarchy and related disclosures | The following table shows the fair value of the Company’s financial instruments and where in the fair value hierarchy the fair value measurements are included as of the dates indicated below: | |||||||||||||||||||
31-Dec-14 | Carrying | Total fair | Level 1 | Level 2 | Level 3 | |||||||||||||||
amount | value | |||||||||||||||||||
Fixed maturity investments: | ||||||||||||||||||||
U.S. government and government agencies | $ | 1,610,502 | $ | 1,610,502 | $ | 1,499,347 | $ | 111,155 | $ | — | ||||||||||
Non-U.S. government and government agencies | 188,199 | 188,199 | — | 188,199 | — | |||||||||||||||
States, municipalities and political subdivisions | 170,567 | 170,567 | — | 170,567 | — | |||||||||||||||
Corporate debt | 2,165,393 | 2,165,393 | — | 2,165,393 | — | |||||||||||||||
Mortgage-backed | 1,263,517 | 1,263,517 | — | 1,081,734 | 181,783 | |||||||||||||||
Asset-backed | 670,832 | 670,832 | — | 615,419 | 55,413 | |||||||||||||||
Total fixed maturity investments | 6,069,010 | 6,069,010 | 1,499,347 | 4,332,467 | 237,196 | |||||||||||||||
Equity securities | 844,163 | 844,163 | 800,833 | — | 43,330 | |||||||||||||||
Other invested assets | 812,543 | 812,543 | — | — | 812,543 | |||||||||||||||
Total investments | $ | 7,725,716 | $ | 7,725,716 | $ | 2,300,180 | $ | 4,332,467 | $ | 1,093,069 | ||||||||||
Derivative assets: | ||||||||||||||||||||
Foreign exchange contracts | $ | 1,274 | $ | 1,274 | $ | — | $ | 1,274 | $ | — | ||||||||||
Derivative liabilities: | ||||||||||||||||||||
Foreign exchange contracts | $ | 991 | $ | 991 | $ | — | $ | 991 | $ | — | ||||||||||
Interest rate swaps | 683 | 683 | — | 683 | — | |||||||||||||||
Senior notes | $ | 798,802 | $ | 879,317 | $ | — | $ | 879,317 | $ | — | ||||||||||
Other long-term debt | $ | 19,213 | $ | 22,583 | $ | — | $ | 22,583 | $ | — | ||||||||||
31-Dec-13 | Carrying | Total fair | Level 1 | Level 2 | Level 3 | |||||||||||||||
amount | value | |||||||||||||||||||
Fixed maturity investments: | ||||||||||||||||||||
U.S. government and government agencies | $ | 1,676,788 | $ | 1,676,788 | $ | 1,370,088 | $ | 306,700 | $ | — | ||||||||||
Non-U.S. government and government agencies | 191,776 | 191,776 | — | 191,776 | — | |||||||||||||||
States, municipalities and political subdivisions | 231,555 | 231,555 | — | 231,555 | — | |||||||||||||||
Corporate debt | 2,202,267 | 2,202,267 | — | 2,202,267 | — | |||||||||||||||
Mortgage-backed | 1,292,502 | 1,292,502 | — | 1,145,164 | 147,338 | |||||||||||||||
Asset-backed | 505,910 | 505,910 | — | 412,497 | 93,413 | |||||||||||||||
Total fixed maturity investments | 6,100,798 | 6,100,798 | 1,370,088 | 4,489,959 | 240,751 | |||||||||||||||
Equity securities | 699,846 | 699,846 | 625,942 | — | 73,904 | |||||||||||||||
Other invested assets | 764,081 | 764,081 | — | — | 764,081 | |||||||||||||||
Total investments | $ | 7,564,725 | $ | 7,564,725 | $ | 1,996,030 | $ | 4,489,959 | $ | 1,078,736 | ||||||||||
Derivative assets: | ||||||||||||||||||||
Foreign exchange contracts | $ | 6,254 | $ | 6,254 | $ | — | $ | 6,254 | $ | — | ||||||||||
Interest rate swaps | 6,829 | 6,829 | — | 6,829 | — | |||||||||||||||
Derivative liabilities: | ||||||||||||||||||||
Foreign exchange contracts | $ | 1,176 | $ | 1,176 | $ | — | $ | 1,176 | $ | — | ||||||||||
Interest rate swaps | 4,214 | 4,214 | $ | — | 4,214 | $ | — | |||||||||||||
Senior notes | $ | 798,499 | $ | 897,601 | $ | — | $ | 897,601 | $ | — | ||||||||||
Fair value measurements using significant unobservable inputs (Level 3) | The following is a rollforward of the beginning and ending balance of financial instruments using significant unobservable inputs (Level 3): | |||||||||||||||||||
Fair value measurement using significant | ||||||||||||||||||||
unobservable inputs (Level 3): | ||||||||||||||||||||
Other invested | Mortgage- | Asset-backed | Equities | |||||||||||||||||
assets | backed | |||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||
Opening balance | $ | 764,081 | $ | 147,338 | $ | 93,413 | $ | 73,904 | ||||||||||||
Realized and unrealized gains (losses) included in net income | 64,566 | 5,505 | (2,068 | ) | (1,277 | ) | ||||||||||||||
Purchases | 331,099 | 100,019 | 4,628 | — | ||||||||||||||||
Sales | (347,203 | ) | (71,141 | ) | (24,463 | ) | (29,297 | ) | ||||||||||||
Transfers into Level 3 from Level 2 | — | 1,505 | 28,813 | — | ||||||||||||||||
Transfers out of Level 3 into Level 2 (1) | — | (1,443 | ) | (44,910 | ) | — | ||||||||||||||
Ending balance | $ | 812,543 | $ | 181,783 | $ | 55,413 | $ | 43,330 | ||||||||||||
Realized and unrealized losses (gains) included in net income for investments still held as of December 31, 2014 | $ | (17,925 | ) | $ | 4,341 | $ | (116 | ) | $ | (1,277 | ) | |||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||
Opening balance | $ | 655,888 | $ | 167,825 | $ | 62,246 | $ | 54,680 | ||||||||||||
Realized and unrealized gains included in net income | 83,621 | (7,658 | ) | (1,176 | ) | 9,224 | ||||||||||||||
Purchases | 287,977 | 83,455 | 50,669 | 10,000 | ||||||||||||||||
Sales | (263,405 | ) | (92,985 | ) | (28,393 | ) | — | |||||||||||||
Transfers into Level 3 from Level 2 | — | 5,393 | 10,067 | — | ||||||||||||||||
Transfers out of Level 3 into Level 2 (1) | — | (8,692 | ) | — | — | |||||||||||||||
Ending balance | $ | 764,081 | $ | 147,338 | $ | 93,413 | $ | 73,904 | ||||||||||||
Realized and unrealized gains (losses) included in net income for investments still held as of December 31, 2013 | $ | 62,104 | $ | (4,914 | ) | $ | (360 | ) | $ | 9,225 | ||||||||||
(1) Transfers out of Level 3 are primarily attributable to the availability of market observable information. |
Reserve_For_Losses_And_Loss_Ex1
Reserve For Losses And Loss Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Insurance Loss Reserves [Abstract] | ||||||||||||
Components of liabilty for unpaid losses and loss expenses | The reserve for losses and loss expenses consists of the following: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Outstanding loss reserves | $ | 1,514,051 | $ | 1,520,867 | ||||||||
Reserves for losses incurred but not reported | 4,367,114 | 4,245,662 | ||||||||||
Reserve for losses and loss expenses | $ | 5,881,165 | $ | 5,766,529 | ||||||||
Reconciliation of beginning and ending liability for unpaid losses and loss expenses | The table below is a reconciliation of the beginning and ending liability for unpaid losses and loss expenses. Losses incurred and paid are reflected net of reinsurance recoverables. | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Gross liability at beginning of year | $ | 5,766,529 | $ | 5,645,549 | $ | 5,225,143 | ||||||
Reinsurance recoverable at beginning of year | (1,234,504 | ) | (1,141,110 | ) | (1,002,919 | ) | ||||||
Net liability at beginning of year | 4,532,025 | 4,504,439 | 4,222,224 | |||||||||
Net losses incurred related to: | ||||||||||||
Current year | 1,411,797 | 1,303,573 | 1,309,613 | |||||||||
Prior years | (212,607 | ) | (180,331 | ) | (170,349 | ) | ||||||
Total incurred | 1,199,190 | 1,123,242 | 1,139,264 | |||||||||
Net paid losses related to: | ||||||||||||
Current year | 171,824 | 115,669 | 117,123 | |||||||||
Prior years | 1,001,537 | 973,987 | 743,844 | |||||||||
Total paid | 1,173,361 | 1,089,656 | 860,967 | |||||||||
Foreign exchange revaluation | (16,945 | ) | (6,000 | ) | 3,918 | |||||||
Net liability at end of year | 4,540,909 | 4,532,025 | 4,504,439 | |||||||||
Reinsurance recoverable at end of year | 1,340,256 | 1,234,504 | 1,141,110 | |||||||||
Gross liability at end of year | $ | 5,881,165 | $ | 5,766,529 | $ | 5,645,549 | ||||||
Ceded_Reinsurance_Tables
Ceded Reinsurance (Tables) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||
Reinsurance Disclosures [Abstract] | ||||||||||||||||||
Components of reinsurance recoverable | The amount of reinsurance recoverable is as follows: | |||||||||||||||||
2014 | 2013 | |||||||||||||||||
OSLR recoverable | $ | 232,545 | $ | 225,796 | ||||||||||||||
IBNR recoverable | 1,107,711 | 1,008,708 | ||||||||||||||||
Reinsurance recoverable | $ | 1,340,256 | $ | 1,234,504 | ||||||||||||||
Reinsurance recoverable on paid losses | $ | 86,075 | $ | 76,099 | ||||||||||||||
Effects of reinsurance | Direct, assumed and ceded premiums written and earned and losses and loss expenses incurred are as follows: | |||||||||||||||||
Premiums | Premiums | Losses and | ||||||||||||||||
Written | Earned | Loss | ||||||||||||||||
Expenses | ||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||
Direct | $ | 1,996,831 | $ | 1,835,186 | $ | 1,031,284 | ||||||||||||
Assumed | 938,594 | 941,182 | 464,728 | |||||||||||||||
Ceded | (613,350 | ) | (593,610 | ) | (296,822 | ) | ||||||||||||
$ | 2,322,075 | $ | 2,182,758 | $ | 1,199,190 | |||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||
Direct | $ | 1,804,910 | $ | 1,664,343 | $ | 936,084 | ||||||||||||
Assumed | 933,754 | 896,088 | 430,627 | |||||||||||||||
Ceded | (618,183 | ) | (554,598 | ) | (243,469 | ) | ||||||||||||
$ | 2,120,481 | $ | 2,005,833 | $ | 1,123,242 | |||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||
Direct | $ | 1,569,021 | $ | 1,446,086 | $ | 877,961 | ||||||||||||
Assumed | 760,250 | 743,575 | 513,871 | |||||||||||||||
Ceded | (491,448 | ) | (440,763 | ) | (252,568 | ) | ||||||||||||
$ | 1,837,823 | $ | 1,748,898 | $ | 1,139,264 | |||||||||||||
Schedule of ceded credit risk by reinsurer | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | |||||||||||||||||
A.M. Best | Reinsurance | Percentage | A.M. Best | Reinsurance | Percentage | |||||||||||||
Rating | Recoverable | of Total | Rating | Recoverable | of Total | |||||||||||||
Munich Re | A+ | $ | 285,918 | 21.3 | % | A+ | $ | 214,070 | 17.3 | % | ||||||||
Axis Capital | A+ | 148,371 | 11.1 | % | A+ | 143,063 | 11.6 | % | ||||||||||
Arch Re | A+ | 128,421 | 9.6 | % | A+ | 143,037 | 11.6 | % | ||||||||||
Markel | A | 86,595 | 6.5 | % | A | 86,462 | 7 | % | ||||||||||
XL Group | A | 78,377 | 5.8 | % | A | 68,857 | 5.6 | % | ||||||||||
Top five reinsurers | 727,682 | 54.3 | % | 655,489 | 53.1 | % | ||||||||||||
Other reinsurers’ balances | 612,574 | 45.7 | % | 579,015 | 46.9 | % | ||||||||||||
Total reinsurance recoverable | $ | 1,340,256 | 100 | % | $ | 1,234,504 | 100 | % | ||||||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||
Schedule of goodwill and intangible assets | The following table shows the Company’s goodwill and intangible assets at December 31, 2014 and 2013: | |||||||||||||||||||
Goodwill | Indefinite-Lived | Finite-Lived Intangible Assets | ||||||||||||||||||
Intangible | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Net Carrying | Net Carrying | Gross Carrying | Accumulated | Net Carrying | ||||||||||||||||
Value | Value | Value | Amortization | Value | ||||||||||||||||
Balance at December 31, 2012 | $ | 268,376 | $ | 23,920 | $ | 41,334 | $ | (13,890 | ) | $ | 27,444 | |||||||||
Amortization of intangible assets | — | — | — | (2,533 | ) | (2,533 | ) | |||||||||||||
Balance at December 31, 2013 | 268,376 | 23,920 | 41,334 | (16,423 | ) | 24,911 | ||||||||||||||
Additions | 9,882 | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | — | (2,533 | ) | (2,533 | ) | |||||||||||||
Balance at December 31, 2014 | $ | 278,258 | $ | 23,920 | $ | 41,334 | $ | (18,956 | ) | $ | 22,378 | |||||||||
Schedule of estimated amortization expense | The estimated amortization expense for each of the five succeeding fiscal years and thereafter related to the Company’s finite-lived intangible assets is as follows: | |||||||||||||||||||
Amount | ||||||||||||||||||||
2015 | $ | 2,533 | ||||||||||||||||||
2016 | 2,533 | |||||||||||||||||||
2017 | 2,533 | |||||||||||||||||||
2018 | 2,533 | |||||||||||||||||||
2019 | 2,533 | |||||||||||||||||||
2020 and thereafter | 9,713 | |||||||||||||||||||
Total | $ | 22,378 | ||||||||||||||||||
Debt_and_Financing_Arrangement1
Debt and Financing Arrangements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ||||||||
Schedule of financing structure | The following table shows the Company’s financing structure: | |||||||
Outstanding(1) | Balance(2) | |||||||
31-Dec-14 | ||||||||
2006 Senior notes due 2016 | $ | 500,000 | $ | 499,690 | ||||
2010 Senior notes due 2020 | 300,000 | 299,112 | ||||||
Swiss office building mortgage | 14,157 | 14,157 | ||||||
Swiss office building credit facility | 5,056 | 5,056 | ||||||
$1,000,000 Secured letter of credit facility — uncommitted | 497,332 | — | ||||||
$150,000 Secured letter of credit facility — committed (3) | — | — | ||||||
$ | 1,316,545 | $ | 818,015 | |||||
31-Dec-13 | ||||||||
2006 Senior notes due 2016 | $ | 500,000 | $ | 499,512 | ||||
2010 Senior notes due 2020 | 300,000 | 298,987 | ||||||
$1,000,000 Secured letter of credit facility — uncommitted | 707,915 | — | ||||||
$450,000 Secured letter of credit facility — committed | 86,102 | — | ||||||
$ | 1,594,017 | $ | 798,499 | |||||
-1 | Indicates utilization of commitment amount, not drawn borrowings. | |||||||
-2 | Represents the principal amount borrowed, net of unamortized discount. | |||||||
-3 | The commitment was reduced from $450,000 to $150,000 during 2014. | |||||||
Schedule of debt maturities | The following table reflects the Company’s debt maturities, which includes its senior notes and other long-term debt: | |||||||
Amount | ||||||||
2015 | $ | 228 | ||||||
2016 | 500,303 | |||||||
2017 | 5,359 | |||||||
2018 | 303 | |||||||
2019 | 303 | |||||||
2020 and thereafter | 312,717 | |||||||
Total | $ | 819,213 | ||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||
Schedule of components of income tax expense | The components of income tax expense are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current income tax expense | $ | 26,768 | $ | 21,669 | $ | 18,239 | ||||||
Deferred income tax expense (benefit) | 3,755 | (11,889 | ) | 201 | ||||||||
Income tax expense | $ | 30,523 | $ | 9,780 | $ | 18,440 | ||||||
Schedule of sources of income before income tax | Our income is primarily sourced from our Bermuda, U.S., European and Asia Pacific operations. The income before income taxes for these operations are as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Non-U.S. | $ | 447,875 | $ | 401,778 | $ | 474,412 | ||||||
United States | 72,907 | 25,882 | 37,035 | |||||||||
Income before income taxes | $ | 520,782 | $ | 427,660 | $ | 511,447 | ||||||
Schedule of significant components of net deferred tax assets | The significant components of the net deferred tax assets are as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Reserve for losses and loss expenses | $ | 21,644 | $ | 22,567 | ||||||||
Equity compensation | 15,316 | 15,828 | ||||||||||
Unearned premium | 16,921 | 14,299 | ||||||||||
Deferred acquisition costs | 11,184 | 10,604 | ||||||||||
Other-than-temporary impairments | — | 407 | ||||||||||
Net loss carryforward | 7,958 | 7,642 | ||||||||||
Total deferred tax assets | 73,023 | 71,347 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Intangible assets | (13,856 | ) | (14,743 | ) | ||||||||
Realized gains | (12,819 | ) | (6,980 | ) | ||||||||
Depreciation | (2,513 | ) | (2,942 | ) | ||||||||
Unrealized appreciation and timing differences on investments | (94 | ) | (56 | ) | ||||||||
Market discount on bonds | (740 | ) | (271 | ) | ||||||||
Other | (2,965 | ) | (1,244 | ) | ||||||||
Total deferred tax liabilities | (32,987 | ) | (26,236 | ) | ||||||||
Net deferred taxes before valuation allowance | 40,036 | 45,111 | ||||||||||
Valuation allowance | (6,421 | ) | (7,642 | ) | ||||||||
Net deferred tax assets | $ | 33,615 | $ | 37,469 | ||||||||
Schedule of current taxes receivable or payable | Current taxes receivable or payable was as follows: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Current tax receivable | $ | 8,640 | $ | 11,684 | ||||||||
Current tax payable | $ | 829 | $ | 1,452 | ||||||||
Schedule of reconciliation between effective and expected tax rate | The reconciliation between the Company’s effective tax rate on pre-tax accounting income and the expected tax rate is as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected tax rate | 7.8 | % | 7.8 | % | 7.8 | % | ||||||
Income not subject to income tax | (7.1 | )% | (8.2 | )% | (7.3 | )% | ||||||
Foreign taxes at local expected tax rates | 4.4 | % | 1.4 | % | 2.1 | % | ||||||
Disallowed expenses and capital allowances | 0.2 | % | 1 | % | 0.7 | % | ||||||
Prior year refunds and adjustments | 1.2 | % | 0.8 | % | 0.4 | % | ||||||
Other | (0.6 | )% | (0.5 | )% | (0.1 | )% | ||||||
Effective tax rate | 5.9 | % | 2.3 | % | 3.6 | % | ||||||
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||
Issued share capital | The issued share capital consists of the following: | |||||||||||
December 31, | ||||||||||||
2014 | 2013 | |||||||||||
Common shares issued and fully paid, 2014 and 2013: CHF 4.10 per share | 100,775,256 | 103,477,452 | ||||||||||
Share capital at end of year | $ | 408,020 | $ | 418,988 | ||||||||
Schedule of common stock outstanding roll forward | ||||||||||||
2014 | 2013 | |||||||||||
Shares issued at beginning of year | 103,477,452 | 109,109,604 | ||||||||||
Shares cancelled | (2,702,196 | ) | (5,632,152 | ) | ||||||||
Total shares issued at end of year | 100,775,256 | 103,477,452 | ||||||||||
Treasury shares issued at beginning of year | 3,223,806 | 4,716,261 | ||||||||||
Shares repurchased | 4,906,785 | 5,544,432 | ||||||||||
Shares issued out of treasury | (848,621 | ) | (1,404,735 | ) | ||||||||
Shares cancelled | (2,702,196 | ) | (5,632,152 | ) | ||||||||
Total treasury shares at end of year | 4,579,774 | 3,223,806 | ||||||||||
Total shares outstanding at end of year | 96,195,482 | 100,253,646 | ||||||||||
Dividends paid | The Company paid the following dividends during the years ended December 31, 2014, 2013 and 2012: | |||||||||||
Dividend Paid | Partial | Dividend | Total | |||||||||
Par Value | Per | Amount | ||||||||||
Reduction | Share | Paid | ||||||||||
Per Share | ||||||||||||
2-Oct-14 | N/A | $ | 0.225 | $ | 21,686 | |||||||
2-Jul-14 | N/A | $ | 0.225 | $ | 21,870 | |||||||
3-Apr-14 | N/A | $ | 0.167 | $ | 16,495 | |||||||
2-Jan-14 | N/A | $ | 0.167 | $ | 16,732 | |||||||
3-Oct-13 | N/A | $ | 0.167 | $ | 16,952 | |||||||
3-Jul-13 | N/A | $ | 0.167 | $ | 17,117 | |||||||
12-Mar-13 | CHF | 0.11 | $ | 0.125 | $ | 12,981 | ||||||
December 18, 2012 | CHF | 0.11 | $ | 0.125 | $ | 13,010 | ||||||
September 25, 2012 | CHF | 0.12 | $ | 0.125 | $ | 13,324 | ||||||
August 6, 2012 | CHF | 0.12 | $ | 0.125 | $ | 13,394 | ||||||
April 6, 2012 | CHF | 0.11 | $ | 0.125 | $ | 13,795 | ||||||
January 6, 2012 | CHF | 0.12 | $ | 0.125 | $ | 14,302 | ||||||
Share repurchases | The Company’s share repurchases were as follows: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Common shares repurchased | 4,906,785 | 5,544,432 | 10,967,877 | |||||||||
Total cost of shares repurchased | $ | 175,373 | $ | 174,686 | $ | 263,942 | ||||||
Average price per share | $ | 35.74 | $ | 31.51 | $ | 24.07 | ||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||
Summary of activity related to options | The following table summarizes the activity related to options granted and exercised: | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Options granted | — | — | — | |||||||||||
Weighted average grant date fair value | $ | — | $ | — | $ | — | ||||||||
Options exercised | (479,831 | ) | (674,187 | ) | (801,810 | ) | ||||||||
Total intrinsic value of options exercised | $ | 10,313 | $ | 12,212 | $ | 9,650 | ||||||||
Proceeds from option exercises | $ | 10,027 | $ | 12,137 | $ | 10,527 | ||||||||
The activity related to the Company’s stock options is as follows: | ||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Average | Average | Intrinsic | ||||||||||||
Exercise Price | Contractual | Value | ||||||||||||
Term | ||||||||||||||
Outstanding at beginning of year | 2,928,312 | $ | 16.07 | |||||||||||
Granted | — | $ | — | |||||||||||
Exercised | (479,831 | ) | $ | (14.25 | ) | |||||||||
Forfeited | (15,096 | ) | $ | (20.50 | ) | |||||||||
Expired | (6,711 | ) | $ | (16.35 | ) | |||||||||
Outstanding at end of year | 2,426,674 | $ | 16.4 | 4.7 years | $ | 52,212 | ||||||||
Exercisable at end of year | 2,151,790 | $ | 15.88 | 4.5 years | $ | 47,424 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Summary of compensation expense by type of award | The following table shows the total stock-related compensation expense relating to the stock options, RSUs, LTIP and cash equivalent awards. | |||||||||||||
Year Ended December 31, | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Stock options | $ | 1,949 | $ | 3,269 | $ | 4,256 | ||||||||
RSUs and performance-based equity awards | 12,295 | 10,700 | 13,010 | |||||||||||
LTIP | — | — | 376 | |||||||||||
Cash-equivalent stock awards | 37,790 | 50,878 | 32,760 | |||||||||||
Total | $ | 52,034 | $ | 64,847 | $ | 50,402 | ||||||||
Rsus Other Than Performance Based Rsus | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Summary of activity related to equity based awards granted and exercised | The activity related to the Company’s RSUs awards is as follows: | |||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Number of Awards | Weighted | Aggregate | ||||||||||||
Average | Intrinsic | |||||||||||||
Grant Date | Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at beginning of year | 143,697 | $ | 21.69 | |||||||||||
RSUs granted | 454,176 | 33.56 | ||||||||||||
RSUs forfeited | (16,386 | ) | (31.22 | ) | ||||||||||
RSUs fully vested | (78,981 | ) | (21.76 | ) | ||||||||||
Outstanding at end of year | 502,506 | $ | 32.1 | $ | 19,055 | |||||||||
Performance Based Rsus | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Summary of activity related to equity based awards granted and exercised | The activity related to the Company’s performance-based equity awards is as follows: | |||||||||||||
Year Ended December 31, 2014 | ||||||||||||||
Number of Awards | Weighted | Aggregate | ||||||||||||
Average | Intrinsic | |||||||||||||
Grant Date | Value | |||||||||||||
Fair Value | ||||||||||||||
Outstanding at beginning of year | 804,519 | $ | 23.21 | |||||||||||
Performance-based equity awards granted | 166,302 | 33.56 | ||||||||||||
Additional awards granted due to achievement of performance criteria | 104,895 | 20.5 | ||||||||||||
Performance-based equity awards forfeited | (4,635 | ) | (25.20 | ) | ||||||||||
Performance-based equity awards fully vested | (454,440 | ) | (20.50 | ) | ||||||||||
Outstanding at end of year | 616,641 | $ | 27.52 | $ | 23,383 | |||||||||
Cash-equivalent stock awards | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Summary of activity related to cash-equivalent equity awards | The activity related to the Company's cash-equivalent RSUs and performance-based equity awards is as follows: | |||||||||||||
RSU's | Performance-based Awards | |||||||||||||
Year Ended December 31, 2014 | Number of Awards | Weighted Average Grant Date Fair Value | Number of Awards | Weighted Average Grant Date Fair Value | ||||||||||
Outstanding at beginning of year | 2,049,084 | $ | 24.69 | 1,031,961 | 23.67 | |||||||||
Granted | 438,162 | 33.56 | 249,438 | 33.56 | ||||||||||
Additional awards granted due to achievement of performance criteria | — | — | 104,895 | 20.5 | ||||||||||
Forfeited | (77,322 | ) | (27.12 | ) | (6,948 | ) | (25.20 | ) | ||||||
Fully vested | (755,860 | ) | (22.51 | ) | (454,440 | ) | (20.50 | ) | ||||||
Outstanding at end of year | 1,654,064 | $ | 27.99 | 924,906 | $ | 27.52 | ||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Comparison of basic and diluted earnings per share | The following table sets forth the comparison of basic and diluted earnings per share: | |||||||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Basic earnings per share: | ||||||||||||
Net income | $ | 490,259 | $ | 417,880 | $ | 493,007 | ||||||
Weighted average common shares outstanding | 97,538,319 | 102,464,715 | 108,171,435 | |||||||||
Basic earnings per share | $ | 5.03 | $ | 4.08 | $ | 4.56 | ||||||
Year Ended December 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Diluted earnings per share: | ||||||||||||
Net income | $ | 490,259 | $ | 417,880 | $ | 493,007 | ||||||
Weighted average common shares outstanding | 97,538,319 | 102,464,715 | 108,171,435 | |||||||||
Share equivalents: | ||||||||||||
Warrants and options | 1,432,960 | 1,536,939 | 1,306,002 | |||||||||
RSU and LTIP awards | 605,808 | 864,180 | 1,727,265 | |||||||||
Employee share purchase plan | 14,686 | — | 4,953 | |||||||||
Weighted average common shares and common share equivalents outstanding — diluted | 99,591,773 | 104,865,834 | 111,209,655 | |||||||||
Diluted earnings per share | $ | 4.92 | $ | 3.98 | $ | 4.43 | ||||||
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||
Summary of future minimum rental payments on operating leases | The Company leases office space under operating leases expiring in various years through 2030. The following are future minimum rental payments as of December 31, 2014: | ||||||||
Amount | |||||||||
2015 | $ | 12,568 | |||||||
2016 | 16,903 | ||||||||
2017 | 20,596 | ||||||||
2018 | 20,096 | ||||||||
2019 | 19,013 | ||||||||
2020 and thereafter | 138,602 | ||||||||
$ | 227,778 | ||||||||
Summary of three largest individual producers | The three largest individual producers as a percentage of gross premiums written are as follows: | ||||||||
Year Ended December 31, | |||||||||
2014 | 2013 | 2012 | |||||||
Marsh & McLennan Companies, Inc. | 25 | % | 26 | % | 25 | % | |||
Aon Corporation | 17 | % | 18 | % | 19 | % | |||
Willis Group Holdings | 10 | % | 12 | % | 11 | % |
Statutory_Capital_and_Surplus_
Statutory Capital and Surplus (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Disclosure Dividend Restrictions And Statutory Requirements [Abstract] | ||||||||||||||||
Schedule of statutory capital | The statutory capital and surplus and minimum required statutory capital and surplus for the Company’s most significant regulatory jurisdictions at December 31, 2014 and 2013 were as follows: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Statutory | Minimum | Statutory | Minimum | |||||||||||||
Capital and | Required | Capital and | Required | |||||||||||||
Surplus | Statutory | Surplus | Statutory | |||||||||||||
Capital and | Capital and | |||||||||||||||
Surplus | Surplus | |||||||||||||||
Bermuda | $ | 3,273,730 | $ | 876,235 | $ | 3,208,776 | $ | 806,012 | ||||||||
United States | 1,220,299 | 226,876 | 1,187,023 | 205,699 | ||||||||||||
Ireland | 410,841 | 29,204 | 407,600 | 27,098 | ||||||||||||
Switzerland | 172,306 | 19,943 | 167,840 | 22,905 | ||||||||||||
United Kingdom | 231,659 | 203,742 | 229,745 | 229,689 | ||||||||||||
Schedule of statutory net income loss | The statutory net income (loss) for the Company’s most significant regulatory jurisdictions for the years ended December 31, 2014, 2013 and 2012 was as follows: | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
Bermuda | $ | 487,051 | $ | 467,283 | $ | 528,712 | ||||||||||
United States | 45,445 | 36,744 | 25,390 | |||||||||||||
Ireland | 3,241 | (4,880 | ) | 9,325 | ||||||||||||
Switzerland | 7,408 | (6,418 | ) | 10,657 | ||||||||||||
United Kingdom | (7,819 | ) | 9,362 | 1,800 | ||||||||||||
Schedule of allowable dividends by jurisdiction | At December 31, 2014, the maximum amount of ordinary dividends or distributions that can be paid, without prior regulatory approval, for the Company’s most significant regulatory jurisdictions, were as follows: | |||||||||||||||
December 31, 2014 | ||||||||||||||||
Bermuda | $ | 818,433 | ||||||||||||||
United States | 102,283 | |||||||||||||||
Ireland | 21,637 | |||||||||||||||
Switzerland | 6,323 | |||||||||||||||
United Kingdom | 1,601 | |||||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Summary of segment results | The following tables provide a summary of the segment results: | |||||||||||||||
Year Ended December 31, 2014 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,716,288 | $ | 280,543 | $ | 938,594 | $ | 2,935,425 | ||||||||
Net premiums written | 1,230,839 | 187,997 | 903,239 | 2,322,075 | ||||||||||||
Net premiums earned | 1,111,164 | 162,566 | 909,028 | 2,182,758 | ||||||||||||
Net losses and loss expenses | (683,836 | ) | (61,057 | ) | (454,297 | ) | (1,199,190 | ) | ||||||||
Acquisition costs | (105,914 | ) | (18,222 | ) | (170,986 | ) | (295,122 | ) | ||||||||
General and administrative expenses | (219,665 | ) | (68,106 | ) | (77,965 | ) | (365,736 | ) | ||||||||
Underwriting income | 101,749 | 15,181 | 205,780 | 322,710 | ||||||||||||
Other insurance-related revenue | 2,064 | — | — | 2,064 | ||||||||||||
Other insurance-related expenses | (1,854 | ) | (6,724 | ) | — | (8,578 | ) | |||||||||
Segment income | 101,959 | 8,457 | 205,780 | 316,196 | ||||||||||||
Net investment income | 176,874 | |||||||||||||||
Net realized investment gains | 88,957 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (57,755 | ) | ||||||||||||||
Foreign exchange loss | (957 | ) | ||||||||||||||
Income before income taxes | $ | 520,782 | ||||||||||||||
Loss and loss expense ratio | 61.5 | % | 37.6 | % | 50 | % | 54.9 | % | ||||||||
Acquisition cost ratio | 9.5 | % | 11.2 | % | 18.8 | % | 13.5 | % | ||||||||
General and administrative expense ratio | 19.8 | % | 41.9 | % | 8.6 | % | 16.8 | % | ||||||||
Expense ratio | 29.3 | % | 53.1 | % | 27.4 | % | 30.3 | % | ||||||||
Combined ratio | 90.8 | % | 90.7 | % | 77.4 | % | 85.2 | % | ||||||||
Year Ended December 31, 2013 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,572,355 | $ | 232,555 | $ | 933,754 | $ | 2,738,664 | ||||||||
Net premiums written | 1,082,441 | 145,002 | 893,038 | 2,120,481 | ||||||||||||
Net premiums earned | 1,022,979 | 126,008 | 856,846 | 2,005,833 | ||||||||||||
Net losses and loss expenses | (651,267 | ) | (50,395 | ) | (421,580 | ) | (1,123,242 | ) | ||||||||
Acquisition costs | (94,869 | ) | (10,051 | ) | (147,753 | ) | (252,673 | ) | ||||||||
General and administrative expenses | (209,042 | ) | (63,164 | ) | (80,079 | ) | (352,285 | ) | ||||||||
Underwriting income | 67,801 | 2,398 | 207,434 | 277,633 | ||||||||||||
Other insurance-related revenue | — | — | — | — | ||||||||||||
Other insurance-related expenses | — | — | — | — | ||||||||||||
Segment income | 67,801 | 2,398 | 207,434 | 277,633 | ||||||||||||
Net investment income | 157,564 | |||||||||||||||
Net realized investment gains | 59,525 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (56,510 | ) | ||||||||||||||
Foreign exchange loss | (8,019 | ) | ||||||||||||||
Income before income taxes | $ | 427,660 | ||||||||||||||
Loss and loss expense ratio | 63.7 | % | 40 | % | 49.2 | % | 56 | % | ||||||||
Acquisition cost ratio | 9.3 | % | 8 | % | 17.2 | % | 12.6 | % | ||||||||
General and administrative expense ratio | 20.4 | % | 50.1 | % | 9.3 | % | 17.6 | % | ||||||||
Expense ratio | 29.7 | % | 58.1 | % | 26.5 | % | 30.2 | % | ||||||||
Combined ratio | 93.4 | % | 98.1 | % | 75.7 | % | 86.2 | % | ||||||||
Year Ended December 31, 2012 | North American Insurance | Global Markets | Reinsurance | Total | ||||||||||||
Insurance | ||||||||||||||||
Gross premiums written | $ | 1,376,040 | $ | 192,981 | $ | 760,250 | $ | 2,329,271 | ||||||||
Net premiums written | 964,199 | 125,577 | 748,047 | 1,837,823 | ||||||||||||
Net premiums earned | 892,721 | 115,660 | 740,517 | 1,748,898 | ||||||||||||
Net losses and loss expenses | (608,762 | ) | (19,536 | ) | (510,966 | ) | (1,139,264 | ) | ||||||||
Acquisition costs | (77,701 | ) | (8,483 | ) | (119,538 | ) | (205,722 | ) | ||||||||
General and administrative expenses | (185,231 | ) | (48,365 | ) | (73,725 | ) | (307,321 | ) | ||||||||
Underwriting income | 21,027 | 39,276 | 36,288 | 96,591 | ||||||||||||
Other insurance-related revenue | — | — | — | — | ||||||||||||
Other insurance-related expenses | — | — | — | — | ||||||||||||
Segment income | 21,027 | 39,276 | 36,288 | 96,591 | ||||||||||||
Net investment income | 167,141 | |||||||||||||||
Net realized investment gains | 306,436 | |||||||||||||||
Amortization of intangible assets | (2,533 | ) | ||||||||||||||
Interest expense | (55,405 | ) | ||||||||||||||
Foreign exchange loss | (783 | ) | ||||||||||||||
Income before income taxes | $ | 511,447 | ||||||||||||||
Loss and loss expense ratio | 68.2 | % | 16.9 | % | 69 | % | 65.1 | % | ||||||||
Acquisition cost ratio | 8.7 | % | 7.3 | % | 16.1 | % | 11.8 | % | ||||||||
General and administrative expense ratio | 20.7 | % | 41.8 | % | 10 | % | 17.6 | % | ||||||||
Expense ratio | 29.4 | % | 49.1 | % | 26.1 | % | 29.4 | % | ||||||||
Combined ratio | 97.6 | % | 66 | % | 95.1 | % | 94.5 | % | ||||||||
Analysis of gross premiums written by geographic location | The following table shows an analysis of the Company’s gross premiums written by geographic location of the Company’s subsidiaries. All intercompany premiums have been eliminated. | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 1,795,564 | $ | 1,636,010 | $ | 1,360,190 | ||||||||||
Bermuda | 640,948 | 676,174 | 611,382 | |||||||||||||
Europe | 318,626 | 264,867 | 228,791 | |||||||||||||
Asia Pacific | 167,334 | 161,613 | 128,908 | |||||||||||||
Canada | 12,953 | — | — | |||||||||||||
Total gross premiums written | $ | 2,935,425 | $ | 2,738,664 | $ | 2,329,271 | ||||||||||
Premiums earned by segment and line of business | The following table shows the Company’s net premiums earned by line of business for each segment for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||
Year Ended December 31, | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
North American Insurance: | ||||||||||||||||
General casualty | $ | 334,603 | $ | 269,114 | $ | 211,238 | ||||||||||
Professional liability | 276,105 | 259,215 | 245,583 | |||||||||||||
Healthcare | 168,476 | 194,344 | 187,053 | |||||||||||||
General property | 126,646 | 141,896 | 137,002 | |||||||||||||
Programs | 119,756 | 107,870 | 88,180 | |||||||||||||
Inland marine | 43,666 | 25,939 | 10,612 | |||||||||||||
Environmental | 19,507 | 17,017 | 12,627 | |||||||||||||
Other | 22,405 | 7,584 | 426 | |||||||||||||
Total | 1,111,164 | 1,022,979 | 892,721 | |||||||||||||
Global Markets Insurance: | ||||||||||||||||
Professional liability | 57,176 | 45,967 | 43,621 | |||||||||||||
General property | 33,957 | 31,364 | 36,751 | |||||||||||||
Aviation | 22,342 | 9,521 | — | |||||||||||||
Trade credit | 17,623 | 14,099 | 9,471 | |||||||||||||
General casualty | 15,266 | 13,903 | 16,762 | |||||||||||||
Healthcare | 11,963 | 11,154 | 9,055 | |||||||||||||
Other | 4,239 | — | — | |||||||||||||
Total | 162,566 | 126,008 | 115,660 | |||||||||||||
Reinsurance: | ||||||||||||||||
Property | 411,968 | 336,009 | 273,167 | |||||||||||||
Specialty | 321,538 | 349,044 | 283,415 | |||||||||||||
Casualty | 175,522 | 171,793 | 183,935 | |||||||||||||
Total | 909,028 | 856,846 | 740,517 | |||||||||||||
Total net premiums earned | $ | 2,182,758 | $ | 2,005,833 | $ | 1,748,898 | ||||||||||
Condensed_Consolidated_Guarant1
Condensed Consolidated Guarantor Financial Statements (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||||||||||||||||||||
Schedule of condensed consolidating balance sheet | Condensed Consolidating Balance Sheet: | |||||||||||||||||||
As of December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments | $ | — | $ | — | $ | 7,868,682 | $ | — | $ | 7,868,682 | ||||||||||
Cash and cash equivalents | 32,579 | 1,734 | 555,026 | — | 589,339 | |||||||||||||||
Insurance balances receivable | — | — | 664,815 | — | 664,815 | |||||||||||||||
Funds held | — | — | 724,021 | — | 724,021 | |||||||||||||||
Reinsurance recoverable | — | — | 1,340,256 | — | 1,340,256 | |||||||||||||||
Reinsurance recoverable on paid losses | — | — | 86,075 | 86,075 | ||||||||||||||||
Net deferred acquisition costs | — | — | 151,546 | — | 151,546 | |||||||||||||||
Goodwill and intangible assets | — | — | 324,556 | — | 324,556 | |||||||||||||||
Balances receivable on sale of investments | — | — | 47,149 | — | 47,149 | |||||||||||||||
Investments in subsidiaries | 3,629,301 | 4,218,028 | — | (7,847,329 | ) | — | ||||||||||||||
Due from subsidiaries | 147,072 | 19,190 | 14,396 | (180,658 | ) | — | ||||||||||||||
Other assets | 1,470 | 3,192 | 620,462 | — | 625,124 | |||||||||||||||
Total assets | $ | 3,810,422 | $ | 4,242,144 | $ | 12,396,984 | $ | (8,027,987 | ) | $ | 12,421,563 | |||||||||
LIABILITIES: | ||||||||||||||||||||
Reserve for losses and loss expenses | $ | — | $ | — | $ | 5,881,165 | $ | — | $ | 5,881,165 | ||||||||||
Unearned premiums | — | — | 1,555,313 | — | 1,555,313 | |||||||||||||||
Reinsurance balances payable | — | — | 180,060 | — | 180,060 | |||||||||||||||
Balances due on purchases of investments | — | 5,428 | — | 5,428 | ||||||||||||||||
Senior notes | — | 798,802 | — | — | 798,802 | |||||||||||||||
Other long-term debt | — | — | 19,213 | — | 19,213 | |||||||||||||||
Due to subsidiaries | 7,599 | 6,797 | 166,262 | (180,658 | ) | — | ||||||||||||||
Other liabilities | 24,532 | 19,618 | 159,141 | — | 203,291 | |||||||||||||||
Total liabilities | 32,131 | 825,217 | 7,966,582 | (180,658 | ) | 8,643,272 | ||||||||||||||
Total shareholders’ equity | 3,778,291 | 3,416,927 | 4,430,402 | (7,847,329 | ) | 3,778,291 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,810,422 | $ | 4,242,144 | $ | 12,396,984 | $ | (8,027,987 | ) | $ | 12,421,563 | |||||||||
As of December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||
Investments | $ | — | $ | — | $ | 7,712,036 | $ | — | $ | 7,712,036 | ||||||||||
Cash and cash equivalents | 10,790 | 2,775 | 518,371 | — | 531,936 | |||||||||||||||
Insurance balances receivable | — | — | 588,632 | — | 588,632 | |||||||||||||||
Funds held | — | — | 632,430 | — | 632,430 | |||||||||||||||
Reinsurance recoverable | — | — | 1,234,504 | — | 1,234,504 | |||||||||||||||
Reinsurance recoverable on paid losses | — | — | 76,099 | — | 76,099 | |||||||||||||||
Net deferred acquisition costs | — | — | 126,661 | — | 126,661 | |||||||||||||||
Goodwill and intangible assets | — | — | 317,207 | — | 317,207 | |||||||||||||||
Balances receivable on sale of investments | — | — | 76,544 | — | 76,544 | |||||||||||||||
Investments in subsidiaries | 3,413,001 | 4,018,619 | — | (7,431,620 | ) | — | ||||||||||||||
Due from subsidiaries | 111,172 | 122,846 | 123,479 | (357,497 | ) | — | ||||||||||||||
Other assets | 1,757 | 4,671 | 643,353 | — | 649,781 | |||||||||||||||
Total assets | $ | 3,536,720 | $ | 4,148,911 | $ | 12,049,316 | $ | (7,789,117 | ) | $ | 11,945,830 | |||||||||
LIABILITIES: | ||||||||||||||||||||
Reserve for losses and loss expenses | $ | — | $ | — | $ | 5,766,529 | $ | — | $ | 5,766,529 | ||||||||||
Unearned premiums | — | — | 1,396,256 | — | 1,396,256 | |||||||||||||||
Reinsurance balances payable | — | — | 173,023 | — | 173,023 | |||||||||||||||
Balances due on purchases of investments | — | — | 104,740 | — | 104,740 | |||||||||||||||
Senior notes | — | 798,499 | — | — | 798,499 | |||||||||||||||
Due to subsidiaries | 12,945 | 110,534 | 234,018 | (357,497 | ) | — | ||||||||||||||
Other liabilities | 3,949 | 17,797 | 165,211 | — | 186,957 | |||||||||||||||
Total liabilities | 16,894 | 926,830 | 7,839,777 | (357,497 | ) | 8,426,004 | ||||||||||||||
Total shareholders’ equity | 3,519,826 | 3,222,081 | 4,209,539 | (7,431,620 | ) | 3,519,826 | ||||||||||||||
Total liabilities and shareholders’ equity | $ | 3,536,720 | $ | 4,148,911 | $ | 12,049,316 | $ | (7,789,117 | ) | $ | 11,945,830 | |||||||||
Schedule of condensed consolidating income statement | Condensed Consolidating Income Statement: | |||||||||||||||||||
Year Ended December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,182,758 | $ | — | $ | 2,182,758 | ||||||||||
Net investment income | 50 | — | 176,824 | — | 176,874 | |||||||||||||||
Net realized investment gains | — | — | 88,957 | — | 88,957 | |||||||||||||||
Other income | — | — | 2,064 | — | 2,064 | |||||||||||||||
Net losses and loss expenses | — | — | (1,199,190 | ) | — | (1,199,190 | ) | |||||||||||||
Acquisition costs | — | — | (295,122 | ) | — | (295,122 | ) | |||||||||||||
General and administrative expenses | (35,596 | ) | (3,088 | ) | (327,052 | ) | — | (365,736 | ) | |||||||||||
Other expense | — | — | (8,578 | ) | — | (8,578 | ) | |||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,418 | ) | (2,337 | ) | — | (57,755 | ) | ||||||||||||
Foreign exchange gain (loss) | 20 | 104 | (1,081 | ) | — | (957 | ) | |||||||||||||
Income tax (expense) benefit | (89 | ) | — | (30,434 | ) | — | (30,523 | ) | ||||||||||||
Equity in earnings of consolidated subsidiaries | 525,874 | 564,648 | — | (1,090,522 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 490,259 | $ | 506,246 | $ | 584,276 | $ | (1,090,522 | ) | $ | 490,259 | |||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 490,259 | $ | 506,246 | $ | 584,276 | $ | (1,090,522 | ) | $ | 490,259 | |||||||||
Year Ended December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 2,005,833 | $ | — | $ | 2,005,833 | ||||||||||
Net investment income | 13 | 4 | 157,547 | — | 157,564 | |||||||||||||||
Net realized investment gains | — | — | 59,525 | — | 59,525 | |||||||||||||||
Other income | — | — | — | — | — | |||||||||||||||
Net losses and loss expenses | — | — | (1,123,242 | ) | — | (1,123,242 | ) | |||||||||||||
Acquisition costs | — | — | (252,673 | ) | — | (252,673 | ) | |||||||||||||
General and administrative expenses | (42,122 | ) | (1,320 | ) | (308,843 | ) | — | (352,285 | ) | |||||||||||
Other expense | — | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,347 | ) | (1,163 | ) | — | (56,510 | ) | ||||||||||||
Foreign exchange gain (loss) | 263 | (1,045 | ) | (7,237 | ) | — | (8,019 | ) | ||||||||||||
Income tax (expense) benefit | 98 | — | (9,878 | ) | — | (9,780 | ) | |||||||||||||
Equity in earnings of consolidated subsidiaries | 459,628 | 515,156 | — | (974,784 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 417,880 | $ | 457,448 | $ | 517,336 | $ | (974,784 | ) | $ | 417,880 | |||||||||
Other comprehensive income | — | — | — | — | — | |||||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 417,880 | $ | 457,448 | $ | 517,336 | $ | (974,784 | ) | $ | 417,880 | |||||||||
Year Ended December 31, 2012 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
Net premiums earned | $ | — | $ | — | $ | 1,748,898 | $ | — | $ | 1,748,898 | ||||||||||
Net investment income | 26 | 20 | 167,095 | — | 167,141 | |||||||||||||||
Net realized investment gains (loss) | — | — | 306,436 | — | 306,436 | |||||||||||||||
Other income | — | — | — | — | — | |||||||||||||||
Net losses and loss expenses | — | — | (1,139,264 | ) | — | (1,139,264 | ) | |||||||||||||
Acquisition costs | — | — | (205,722 | ) | — | (205,722 | ) | |||||||||||||
General and administrative expenses | (35,258 | ) | (2,973 | ) | (269,090 | ) | — | (307,321 | ) | |||||||||||
Other expense | — | — | — | — | — | |||||||||||||||
Amortization of intangible assets | — | — | (2,533 | ) | — | (2,533 | ) | |||||||||||||
Interest expense | — | (55,405 | ) | — | — | (55,405 | ) | |||||||||||||
Foreign exchange gain (loss) | 159 | (319 | ) | (623 | ) | — | (783 | ) | ||||||||||||
Income tax (expense) benefit | 358 | — | (18,798 | ) | — | (18,440 | ) | |||||||||||||
Equity in earnings of consolidated subsidiaries | 527,722 | 573,256 | — | (1,100,978 | ) | — | ||||||||||||||
NET INCOME (LOSS) | $ | 493,007 | $ | 514,579 | $ | 586,399 | $ | (1,100,978 | ) | $ | 493,007 | |||||||||
Unrealized gains on investments arising during the year net of applicable deferred income tax benefit of $265 | (493 | ) | — | (493 | ) | 493 | (493 | ) | ||||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | (13,991 | ) | — | (13,991 | ) | 13,991 | (13,991 | ) | ||||||||||||
Other comprehensive loss | (14,484 | ) | — | (14,484 | ) | 14,484 | (14,484 | ) | ||||||||||||
COMPREHENSIVE INCOME (LOSS) | $ | 478,523 | $ | 514,579 | $ | 571,915 | $ | (1,086,494 | ) | $ | 478,523 | |||||||||
Schedule of condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows: | |||||||||||||||||||
Year Ended December 31, 2014 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 264,422 | $ | 292,959 | $ | 493,659 | $ | (643,250 | ) | $ | 407,790 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases trading securities | — | — | (7,630,034 | ) | — | (7,630,034 | ) | |||||||||||||
Purchases of other invested assets | — | — | (307,955 | ) | — | (307,955 | ) | |||||||||||||
Sales of trading securities | — | — | 7,536,936 | — | 7,536,936 | |||||||||||||||
Sales of other invested assets | — | — | 267,885 | — | 267,885 | |||||||||||||||
Other | — | — | 6,201 | — | 6,201 | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (126,967 | ) | — | (126,967 | ) | |||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Dividends paid | (76,750 | ) | — | — | — | (76,750 | ) | |||||||||||||
Intercompany dividends paid | — | (294,000 | ) | (349,250 | ) | 643,250 | — | |||||||||||||
Proceeds from the exercise of stock options | 10,027 | — | — | — | 10,027 | |||||||||||||||
Proceeds from other long-term debt | — | — | 19,213 | — | 19,213 | |||||||||||||||
Share repurchases | (175,910 | ) | — | — | — | (175,910 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (242,633 | ) | (294,000 | ) | (330,037 | ) | 643,250 | (223,420 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 21,789 | (1,041 | ) | 36,655 | — | 57,403 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 10,790 | 2,775 | 518,371 | — | 531,936 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 32,579 | $ | 1,734 | $ | 555,026 | $ | — | $ | 589,339 | ||||||||||
Year Ended December 31, 2013 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES | $ | 198,702 | $ | 265,951 | $ | 237,956 | $ | (596,500 | ) | $ | 106,109 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of trading securities | — | — | (7,527,670 | ) | — | (7,527,670 | ) | |||||||||||||
Purchases of other invested assets | — | — | (276,926 | ) | — | (276,926 | ) | |||||||||||||
Sales of trading securities | — | — | 7,540,194 | — | 7,540,194 | |||||||||||||||
Sales of other invested assets | — | — | 187,477 | — | 187,477 | |||||||||||||||
Other | — | — | 28,782 | — | 28,782 | |||||||||||||||
Net cash provided by (used in) investing activities | — | — | (48,143 | ) | — | (48,143 | ) | |||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Partial par value reduction | (12,981 | ) | — | — | — | (12,981 | ) | |||||||||||||
Dividends paid | (34,059 | ) | — | — | — | (34,059 | ) | |||||||||||||
Intercompany dividends paid | — | (274,500 | ) | (322,000 | ) | 596,500 | — | |||||||||||||
Proceeds from the exercise of stock options | 12,137 | — | — | — | 12,137 | |||||||||||||||
Share repurchases | (173,006 | ) | — | — | — | (173,006 | ) | |||||||||||||
Net cash provided by (used in) financing activities | (207,909 | ) | (274,500 | ) | (322,000 | ) | 596,500 | (207,909 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (9,207 | ) | (8,549 | ) | (132,187 | ) | — | (149,943 | ) | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 19,997 | 11,324 | 650,558 | — | 681,879 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 10,790 | $ | 2,775 | $ | 518,371 | $ | — | $ | 531,936 | ||||||||||
Year Ended December 31, 2012 | Allied World | Allied World | Other Allied | Consolidating | Allied World | |||||||||||||||
Switzerland | Bermuda | World | Adjustments | Switzerland | ||||||||||||||||
(Parent | (Subsidiary | Subsidiaries | Consolidated | |||||||||||||||||
Guarantor) | Issuer) | |||||||||||||||||||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ | 338,565 | $ | 357,438 | $ | 702,853 | $ | (770,000 | ) | $ | 628,856 | |||||||||
CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of trading securities | — | — | (8,006,237 | ) | — | (8,006,237 | ) | |||||||||||||
Purchases of other invested assets | — | — | (333,031 | ) | — | (333,031 | ) | |||||||||||||
Sales of available for sale securities | — | — | 236,978 | — | 236,978 | |||||||||||||||
Sales of trading securities | — | — | 7,892,907 | — | 7,892,907 | |||||||||||||||
Sales of other invested assets | — | — | 53,741 | — | 53,741 | |||||||||||||||
Capital contribution to subsidiary | (110,000 | ) | — | — | 110,000 | — | ||||||||||||||
Other | — | — | (104,091 | ) | — | (104,091 | ) | |||||||||||||
Net cash provided by (used in) investing activities | (110,000 | ) | — | (259,733 | ) | 110,000 | (259,733 | ) | ||||||||||||
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||||||||||||||||||
Partial par value reduction | (67,825 | ) | — | — | — | (67,825 | ) | |||||||||||||
Intercompany dividends paid | — | (355,000 | ) | (415,000 | ) | 770,000 | — | |||||||||||||
Proceeds from the exercise of stock options | 10,527 | — | — | — | 10,527 | |||||||||||||||
Share repurchases | (263,942 | ) | — | — | — | (263,942 | ) | |||||||||||||
Capital contribution from parent | — | — | 110,000 | (110,000 | ) | — | ||||||||||||||
Net cash provided by (used in) financing activities | (321,240 | ) | (355,000 | ) | (305,000 | ) | 660,000 | (321,240 | ) | |||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (92,675 | ) | 2,438 | 138,120 | — | 47,883 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR | 112,672 | 8,886 | 512,438 | — | 633,996 | |||||||||||||||
CASH AND CASH EQUIVALENTS, END OF YEAR | $ | 19,997 | $ | 11,324 | $ | 650,558 | $ | — | $ | 681,879 | ||||||||||
Unaudited_Quarterly_Financial_1
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Summary of unaudited consolidated statements of income by quarter | The following are the unaudited consolidated statements of income by quarter for the years ended December 31, 2014 and 2013: | ||||||||||||||||
Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2014 | 2014 | 2014 | 2014 | ||||||||||||||
REVENUES: | |||||||||||||||||
Gross premiums written | $ | 565,743 | $ | 707,884 | $ | 760,405 | $ | 901,393 | |||||||||
Premiums ceded | (137,948 | ) | (139,142 | ) | (206,481 | ) | (129,779 | ) | |||||||||
Net premiums written | 427,795 | 568,742 | 553,924 | 771,614 | |||||||||||||
Change in unearned premiums | 145,694 | (27,005 | ) | (16,677 | ) | (241,329 | ) | ||||||||||
Net premiums earned | 573,489 | 541,737 | 537,247 | 530,285 | |||||||||||||
Net investment income | 49,050 | 43,412 | 36,793 | 47,619 | |||||||||||||
Net realized investment (losses) gains | (15,329 | ) | (35,136 | ) | 85,217 | 54,205 | |||||||||||
Other income | 1,032 | 1,032 | — | — | |||||||||||||
608,242 | 551,045 | 659,257 | 632,109 | ||||||||||||||
EXPENSES: | |||||||||||||||||
Net losses and loss expenses | 272,959 | 336,090 | 314,855 | 275,286 | |||||||||||||
Acquisition costs | 80,718 | 72,403 | 74,279 | 67,722 | |||||||||||||
General and administrative expenses | 100,914 | 88,294 | 96,188 | 80,340 | |||||||||||||
Other expense | 2,003 | 6,575 | — | — | |||||||||||||
Amortization of intangible assets | 633 | 633 | 634 | 633 | |||||||||||||
Interest expense | 14,304 | 14,325 | 14,592 | 14,534 | |||||||||||||
Foreign exchange (gain) loss | (21 | ) | 278 | 651 | 49 | ||||||||||||
471,510 | 518,598 | 501,199 | 438,564 | ||||||||||||||
Income before income taxes | 136,732 | 32,447 | 158,058 | 193,545 | |||||||||||||
Income tax expense | 6,223 | 1,532 | 6,195 | 16,573 | |||||||||||||
NET INCOME | $ | 130,509 | $ | 30,915 | $ | 151,863 | $ | 176,972 | |||||||||
PER SHARE DATA | |||||||||||||||||
Basic earnings per share | $ | 1.35 | $ | 0.32 | $ | 1.55 | $ | 1.78 | |||||||||
Diluted earnings per share | $ | 1.33 | $ | 0.31 | $ | 1.52 | $ | 1.74 | |||||||||
Weighted average common shares outstanding | 96,386,796 | 96,458,231 | 97,809,639 | 99,545,187 | |||||||||||||
Weighted average common shares and common share equivalents outstanding | 98,394,432 | 98,444,238 | 99,724,802 | 101,584,662 | |||||||||||||
Quarter Ended | |||||||||||||||||
December 31, | September 30, | June 30, | March 31, | ||||||||||||||
2013 | 2013 | 2013 | 2013 | ||||||||||||||
REVENUES: | |||||||||||||||||
Gross premiums written | $ | 555,490 | $ | 580,893 | $ | 765,200 | $ | 837,081 | |||||||||
Premiums ceded | (164,360 | ) | (127,816 | ) | (183,978 | ) | (142,029 | ) | |||||||||
Net premiums written | 391,130 | 453,077 | 581,222 | 695,052 | |||||||||||||
Change in unearned premiums | 133,431 | 57,696 | (73,951 | ) | (231,824 | ) | |||||||||||
Net premiums earned | 524,561 | 510,773 | 507,271 | 463,228 | |||||||||||||
Net investment income | 47,270 | 39,271 | 37,635 | 33,388 | |||||||||||||
Net realized investment gains (losses) | 67,599 | 27,487 | (115,198 | ) | 79,637 | ||||||||||||
639,430 | 577,531 | 429,708 | 576,253 | ||||||||||||||
EXPENSES: | |||||||||||||||||
Net losses and loss expenses | 315,966 | 276,970 | 275,128 | 255,178 | |||||||||||||
Acquisition costs | 66,257 | 65,114 | 64,617 | 56,685 | |||||||||||||
General and administrative expenses | 100,467 | 88,553 | 80,585 | 82,680 | |||||||||||||
Amortization of intangible assets | 633 | 633 | 634 | 633 | |||||||||||||
Interest expense | 14,094 | 14,094 | 14,188 | 14,134 | |||||||||||||
Foreign exchange loss | 658 | 4,353 | 490 | 2,518 | |||||||||||||
498,075 | 449,717 | 435,642 | 411,828 | ||||||||||||||
Income (loss) before income taxes | 141,355 | 127,814 | (5,934 | ) | 164,425 | ||||||||||||
Income tax expense (benefit) | 3,448 | 4,971 | (4,072 | ) | 5,433 | ||||||||||||
NET INCOME (LOSS) | $ | 137,907 | $ | 122,843 | $ | (1,862 | ) | $ | 158,992 | ||||||||
PER SHARE DATA | |||||||||||||||||
Basic earnings (loss) per share | 1.37 | 1.2 | (0.02 | ) | 1.53 | ||||||||||||
Diluted earnings (loss) per share | 1.34 | 1.18 | (0.02 | ) | 1.5 | ||||||||||||
Weighted average common shares outstanding | 100,814,955 | 101,974,077 | 103,267,659 | 103,840,818 | |||||||||||||
Weighted average common shares and common share equivalents outstanding | 103,129,812 | 104,184,579 | 103,267,659 | 106,295,529 | |||||||||||||
General_Details
General (Details) (USD $) | 0 Months Ended | |
In Thousands, unless otherwise specified | 1-May-14 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 3 | |
Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc | ||
Business Acquisition [Line Items] | ||
Business Acquisition Preliminary Purchase Price | $201,761 | |
Business Acquisition Expected Additional Capitalization | $90,000 |
Investments_Narrative_Details
Investments (Narrative) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Other invested assets | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Income (loss) from equity method investments | $9,348 |
Minimum | Investments with redemption restrictions | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption restriction, lock-up period | 1 year |
Minimum | Investments without redemption restrictions | Hedge funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption notice period | 30 days |
Gate trigger, percentage | 15.00% |
Maximum | Investments with redemption restrictions | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption restriction, lock-up period | 3 years |
Maximum | Investments without redemption restrictions | Hedge funds | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Gate trigger, percentage | 25.00% |
Investments_Schedule_Of_Tradin
Investments (Schedule Of Trading Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Equity securities and other invested assets [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | $1,656,706 | $1,463,927 |
Trading securities, Amortized Cost | 1,516,275 | 1,305,984 |
Equity securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 844,163 | 699,846 |
Trading securities, Amortized Cost | 791,206 | 647,301 |
Other invested assets | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 812,543 | 764,081 |
Trading securities, Amortized Cost | 725,069 | 658,683 |
Fixed Maturities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 6,069,010 | 6,100,798 |
Trading securities, Amortized Cost | 6,035,240 | 6,065,350 |
U.S. Government and Government Agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,610,502 | 1,676,788 |
Trading securities, Amortized Cost | 1,610,880 | 1,684,832 |
Non-U.S. Government and Government Agencies | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 188,199 | 191,776 |
Trading securities, Amortized Cost | 196,332 | 197,082 |
States, municipalities and political subdivisions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 170,567 | 231,555 |
Trading securities, Amortized Cost | 165,615 | 234,406 |
Corporate debt: financial institutions | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,024,667 | 958,794 |
Trading securities, Amortized Cost | 1,018,777 | 943,518 |
Corporate debt: Industrials | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,029,729 | 1,174,047 |
Trading securities, Amortized Cost | 1,037,820 | 1,165,448 |
Corporate debt: utilities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 110,997 | 69,426 |
Trading securities, Amortized Cost | 111,599 | 69,658 |
Mortgage-backed | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,263,517 | 1,292,502 |
Trading securities, Amortized Cost | 1,219,712 | 1,267,863 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 670,832 | 505,910 |
Trading securities, Amortized Cost | $674,505 | $502,543 |
Investments_Schedule_Of_Other_
Investments (Schedule Of Other Investments) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 955,509 | 911,392 | ||
Unfunded commitments | 483,214 | 467,524 | ||
Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 527,519 | 368,052 | ||
Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 427,990 | 543,340 | ||
Private equity (primary and secondary) | Investments with redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 2 years | 2 years | ||
Private equity (primary and secondary) | Investments with redemption restrictions | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 8 years | 9 years | ||
Mezzanine debt | Investments with redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 5 years | 8 years | ||
Mezzanine debt | Investments with redemption restrictions | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 9 years | 9 years | ||
Distressed | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 3 years | 4 years | ||
Real estate | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 9 years | |||
Hedge funds | Investments without redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 30 days | |||
Distressed funds | Investments with redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 1 year | |||
Distressed funds | Investments with redemption restrictions | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Estimated remaining restriction period | 2 years | |||
Distressed funds | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 60 days | [1] | ||
Equity long/short | Investments without redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 30 days | [1] | 30 days | [1] |
Equity long/short | Investments without redemption restrictions | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 60 days | [1] | 60 days | [1] |
Multi-strategy | Investments without redemption restrictions | Minimum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 45 days | [1] | 45 days | [1] |
Multi-strategy | Investments without redemption restrictions | Maximum | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 90 days | [1] | 90 days | [1] |
Event driven | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 60 days | [1] | ||
Relative value credit | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 60 days | [1] | 60 days | [1] |
High yield loan fund | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Redemption notice period | 30 days | [1] | 30 days | [1] |
Total Fair Value | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 812,543 | 764,081 | ||
Unfunded commitments | 483,214 | 467,524 | ||
Total Fair Value | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 527,519 | 368,052 | ||
Total Fair Value | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 285,024 | 396,029 | ||
Total Fair Value | Private equity funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 357,350 | 216,825 | ||
Unfunded commitments | 483,214 | 467,524 | ||
Total Fair Value | Private equity funds | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 357,350 | 216,825 | ||
Total Fair Value | Private equity funds | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Private equity (primary and secondary) | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 184,576 | 144,422 | ||
Unfunded commitments | 223,802 | 263,519 | ||
Total Fair Value | Private equity (primary and secondary) | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 184,576 | 144,422 | ||
Total Fair Value | Private equity (primary and secondary) | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Mezzanine debt | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 166,905 | 64,627 | ||
Unfunded commitments | 204,232 | 198,756 | ||
Total Fair Value | Mezzanine debt | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 166,905 | 64,627 | ||
Total Fair Value | Mezzanine debt | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Distressed | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 5,869 | 7,776 | ||
Unfunded commitments | 5,180 | 5,249 | ||
Total Fair Value | Distressed | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 5,869 | 7,776 | ||
Total Fair Value | Distressed | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Real estate | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | |||
Unfunded commitments | 50,000 | |||
Total Fair Value | Real estate | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | |||
Total Fair Value | Real estate | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | |||
Total Fair Value | Hedge funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 425,030 | 515,298 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | Hedge funds | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 170,169 | 151,227 | ||
Total Fair Value | Hedge funds | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 254,861 | 364,071 | ||
Total Fair Value | Distressed funds | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 170,169 | 151,227 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | Distressed funds | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 170,169 | 151,227 | ||
Total Fair Value | Distressed funds | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Redemption frequency | Based on net asset value | [1] | ||
Total Fair Value | Equity long/short | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 84,198 | 99,365 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | Equity long/short | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Equity long/short | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 84,198 | 99,365 | ||
Redemption frequency | Quarterly | [1] | Quarterly | [1] |
Total Fair Value | Multi-strategy | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 51,507 | 136,958 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | Multi-strategy | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Multi-strategy | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 51,507 | 136,958 | ||
Redemption frequency | Quarterly | [1] | Quarterly | [1] |
Total Fair Value | Event driven | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 14,018 | |||
Unfunded commitments | 0 | |||
Total Fair Value | Event driven | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | |||
Total Fair Value | Event driven | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 14,018 | |||
Redemption frequency | Annual | [1] | ||
Total Fair Value | Relative value credit | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 119,156 | 113,730 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | Relative value credit | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | Relative value credit | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 119,156 | 113,730 | ||
Redemption frequency | Quarterly | [1] | Quarterly | [1] |
Total Fair Value | High yield loan fund | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 30,163 | 31,958 | ||
Unfunded commitments | 0 | 0 | ||
Total Fair Value | High yield loan fund | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Total Fair Value | High yield loan fund | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 30,163 | 31,958 | ||
Redemption frequency | Monthly | [1] | Monthly | [1] |
Carrying Value [Member] | Other private securities | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 142,966 | 147,311 | ||
Unfunded commitments | 0 | 0 | ||
Carrying Value [Member] | Other private securities | Investments with redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 0 | 0 | ||
Carrying Value [Member] | Other private securities | Investments without redemption restrictions | ||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | ||||
Other invested assets | 142,966 | 147,311 | ||
[1] | The redemption frequency and notice periods only apply to the investments without redemption restrictions. |
Investments_Schedule_Of_Net_In
Investments (Schedule Of Net Investment Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | $49,050 | $43,412 | $36,793 | $47,619 | $47,270 | $39,271 | $37,635 | $33,388 | $176,874 | $157,564 | $167,141 |
Fixed maturity investments | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | 149,449 | 130,380 | 157,437 | ||||||||
Equity securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | 17,581 | 19,076 | 17,080 | ||||||||
Other invested assets: hedge funds and private equity | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | 12,564 | 8,226 | 6,772 | ||||||||
Other invested assets: other private securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | 13,305 | 14,711 | 0 | ||||||||
Cash and cash equivalents | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | 2,134 | 2,010 | 2,319 | ||||||||
Expenses | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Net investment income | ($18,159) | ($16,839) | ($16,467) |
Investments_Components_Of_Real
Investments (Components Of Realized Gains And Losses) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Gain (Loss) on Investments [Line Items] | |||||||||||
Gross realized gains on sale of invested assets | $195,390 | $213,618 | $183,592 | ||||||||
Gross realized losses on sale of invested assets | -48,239 | -106,321 | -51,702 | ||||||||
Net realized and unrealized losses on derivatives | -39,007 | 9,485 | -3,608 | ||||||||
Net realized investment gains | -15,329 | -35,136 | 85,217 | 54,205 | 67,599 | 27,487 | -115,198 | 79,637 | 88,957 | 59,525 | 306,436 |
Proceeds from sale of available for sale securities | 0 | 0 | 236,336 | ||||||||
Debt securities | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Mark-to-market changes | -1,675 | -117,577 | 106,328 | ||||||||
Equity securities | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Mark-to-market changes | 413 | 4,288 | 33,018 | ||||||||
Other invested assets | |||||||||||
Gain (Loss) on Investments [Line Items] | |||||||||||
Mark-to-market changes | ($17,925) | $56,032 | $38,808 |
Investments_Pledged_Assets_Det
Investments (Pledged Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
In favor of ceding companies, other counterparties, or government authorities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Restricted cash, cash equivalents and investments | $3,585,792 | $2,894,401 |
Pledged as collateral for letter of credity facility | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Restricted cash, cash equivalents and investments | $571,750 | $1,053,632 |
Derivative_Instruments_Locatio
Derivative Instruments (Location and Amounts of Derivative Fair Values On The Condensed Consolidated Balance Sheets) (Details) (Not designated as hedging instruments, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | $33,875 | $786,188 |
Asset Derivative Fair Value | 1,274 | 13,083 |
Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivative Notional Amount | 738,876 | 162,439 |
Liability Derivative Fair Value | 1,674 | 5,390 |
Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | 33,875 | 294,788 |
Asset Derivative Fair Value | 1,274 | 6,254 |
Foreign exchange contracts | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivative Notional Amount | 167,376 | 122,439 |
Liability Derivative Fair Value | 991 | 1,176 |
Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | 0 | 491,400 |
Asset Derivative Fair Value | 0 | 6,829 |
Interest rate swaps | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivative Notional Amount | 571,500 | 40,000 |
Liability Derivative Fair Value | $683 | $4,214 |
Derivative_Instruments_Locatio1
Derivative Instruments (Location and Amounts of Unrealized And Realized Gains (Losses) On Derivatives Recorded In The Condensed Consolidated Income Statements) (Details) (Not designated as hedging instruments, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | ($38,110) | $10,759 | ($4,357) |
Foreign exchange gain (loss) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | 897 | 1,274 | -749 |
Foreign exchange gain (loss) | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | 897 | 1,274 | -749 |
Net realized investment gains (losses) | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | -39,007 | 9,485 | -3,608 |
Net realized investment gains (losses) | Put options | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | 494 | -3,822 | -2,222 |
Net realized investment gains (losses) | Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | 3,538 | 3,054 | -1,024 |
Net realized investment gains (losses) | Interest rate swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | -45,427 | 5,591 | 0 |
Net realized investment gains (losses) | Interest rate futures | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total realized and unrealized losses (gains) on derivatives | $2,388 | $4,662 | ($362) |
Fair_Value_Of_Financial_Instru2
Fair Value Of Financial Instruments (Schedule Of Fair Value Of Financial Instruments) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | $6,069,010 | $6,100,798 |
Equity securities | 844,163 | 699,846 |
Other invested assets | 955,509 | 911,392 |
Total investments | 7,868,682 | 7,712,036 |
Senior notes | 798,802 | 798,499 |
Other long-term debt | 19,213 | 0 |
Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other invested assets | 812,543 | 764,081 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 6,069,010 | 6,100,798 |
Equity securities | 844,163 | 699,846 |
Other invested assets | 812,543 | 764,081 |
Total investments | 7,725,716 | 7,564,725 |
Senior notes | 798,802 | 798,499 |
Other long-term debt | 19,213 | |
Fair Value, Measurements, Recurring | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,274 | 6,254 |
Derivative liabilities | 991 | 1,176 |
Fair Value, Measurements, Recurring | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,829 | |
Derivative liabilities | 683 | 4,214 |
Fair Value, Measurements, Recurring | U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,610,502 | 1,676,788 |
Fair Value, Measurements, Recurring | Non-U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 188,199 | 191,776 |
Fair Value, Measurements, Recurring | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 170,567 | 231,555 |
Fair Value, Measurements, Recurring | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 2,165,393 | 2,202,267 |
Fair Value, Measurements, Recurring | Mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,263,517 | 1,292,502 |
Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 670,832 | 505,910 |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,499,347 | 1,370,088 |
Equity securities | 800,833 | 625,942 |
Other invested assets | 0 | 0 |
Total investments | 2,300,180 | 1,996,030 |
Senior notes | 0 | 0 |
Other long-term debt | 0 | |
Fair Value, Measurements, Recurring | Level 1 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,499,347 | 1,370,088 |
Fair Value, Measurements, Recurring | Level 1 | Non-U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 4,332,467 | 4,489,959 |
Equity securities | 0 | 0 |
Other invested assets | 0 | 0 |
Total investments | 4,332,467 | 4,489,959 |
Senior notes | 879,317 | 897,601 |
Other long-term debt | 22,583 | |
Fair Value, Measurements, Recurring | Level 2 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,274 | 6,254 |
Derivative liabilities | 991 | 1,176 |
Fair Value, Measurements, Recurring | Level 2 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,829 | |
Derivative liabilities | 683 | 4,214 |
Fair Value, Measurements, Recurring | Level 2 | U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 111,155 | 306,700 |
Fair Value, Measurements, Recurring | Level 2 | Non-U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 188,199 | 191,776 |
Fair Value, Measurements, Recurring | Level 2 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 170,567 | 231,555 |
Fair Value, Measurements, Recurring | Level 2 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 2,165,393 | 2,202,267 |
Fair Value, Measurements, Recurring | Level 2 | Mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,081,734 | 1,145,164 |
Fair Value, Measurements, Recurring | Level 2 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 615,419 | 412,497 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 237,196 | 240,751 |
Equity securities | 43,330 | 73,904 |
Other invested assets | 812,543 | 764,081 |
Total investments | 1,093,069 | 1,078,736 |
Senior notes | 0 | 0 |
Other long-term debt | 0 | |
Fair Value, Measurements, Recurring | Level 3 | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | |
Derivative liabilities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Non-U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 181,783 | 147,338 |
Fair Value, Measurements, Recurring | Level 3 | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 55,413 | 93,413 |
Fair Value, Measurements, Recurring | Total Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 6,069,010 | 6,100,798 |
Equity securities | 844,163 | 699,846 |
Other invested assets | 812,543 | 764,081 |
Total investments | 7,725,716 | 7,564,725 |
Senior notes | 879,317 | 897,601 |
Other long-term debt | 22,583 | |
Fair Value, Measurements, Recurring | Total Fair Value | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 1,274 | 6,254 |
Derivative liabilities | 991 | 1,176 |
Fair Value, Measurements, Recurring | Total Fair Value | Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 6,829 | |
Derivative liabilities | 683 | 4,214 |
Fair Value, Measurements, Recurring | Total Fair Value | U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,610,502 | 1,676,788 |
Fair Value, Measurements, Recurring | Total Fair Value | Non-U.S. Government and Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 188,199 | 191,776 |
Fair Value, Measurements, Recurring | Total Fair Value | States, municipalities and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 170,567 | 231,555 |
Fair Value, Measurements, Recurring | Total Fair Value | Corporate debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 2,165,393 | 2,202,267 |
Fair Value, Measurements, Recurring | Total Fair Value | Mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | 1,263,517 | 1,292,502 |
Fair Value, Measurements, Recurring | Total Fair Value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Trading fixed maturity investments | $670,832 | $505,910 |
Fair_Value_Of_Financial_Instru3
Fair Value Of Financial Instruments (Schedule Of Fair Value Measurement Using Significant Unobservable Inputs Level Three) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | ||
Other invested assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening balance | $764,081 | $655,888 | ||
Realized and unrealized gains (losses) included in net income | 64,566 | 83,621 | ||
Purchases | 331,099 | 287,977 | ||
Sales | -347,203 | -263,405 | ||
Transfers into Level 3 from Level 2 | 0 | 0 | ||
Transfers out of Level 3 to Level 2 | 0 | [1] | 0 | [1] |
Ending balance | 812,543 | 764,081 | ||
Realized and unrealized gains (losses) included in net income for investments still held as of balance sheet date | -17,925 | 62,104 | ||
Mortgage-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening balance | 147,338 | 167,825 | ||
Realized and unrealized gains (losses) included in net income | 5,505 | -7,658 | ||
Purchases | 100,019 | 83,455 | ||
Sales | -71,141 | -92,985 | ||
Transfers into Level 3 from Level 2 | 1,505 | 5,393 | ||
Transfers out of Level 3 to Level 2 | -1,443 | [1] | -8,692 | [1] |
Ending balance | 181,783 | 147,338 | ||
Realized and unrealized gains (losses) included in net income for investments still held as of balance sheet date | 4,341 | -4,914 | ||
Asset-backed | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening balance | 93,413 | 62,246 | ||
Realized and unrealized gains (losses) included in net income | -2,068 | -1,176 | ||
Purchases | 4,628 | 50,669 | ||
Sales | -24,463 | -28,393 | ||
Transfers into Level 3 from Level 2 | 28,813 | 10,067 | ||
Transfers out of Level 3 to Level 2 | -44,910 | [1] | 0 | [1] |
Ending balance | 55,413 | 93,413 | ||
Realized and unrealized gains (losses) included in net income for investments still held as of balance sheet date | -116 | -360 | ||
Equities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Opening balance | 73,904 | 54,680 | ||
Realized and unrealized gains (losses) included in net income | -1,277 | 9,224 | ||
Purchases | 0 | 10,000 | ||
Sales | -29,297 | 0 | ||
Transfers into Level 3 from Level 2 | 0 | 0 | ||
Transfers out of Level 3 to Level 2 | 0 | [1] | 0 | [1] |
Ending balance | 43,330 | 73,904 | ||
Realized and unrealized gains (losses) included in net income for investments still held as of balance sheet date | ($1,277) | $9,225 | ||
[1] | Transfers out of Level 3 are primarily attributable to the availability of market observable information. |
Reserve_For_Losses_And_Loss_Ex2
Reserve For Losses And Loss Expenses (Schedule Of Reserve For Losses And Loss Expenses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Insurance Loss Reserves [Abstract] | ||||
Outstanding loss reserves | $1,514,051 | $1,520,867 | ||
Reserves for losses incurred but not reported | 4,367,114 | 4,245,662 | ||
Reserve for losses and loss expenses | $5,881,165 | $5,766,529 | $5,645,549 | $5,225,143 |
Reserve_For_Losses_And_Loss_Ex3
Reserve For Losses And Loss Expenses (Schedule Of Reconciliation Of Unpaid Losses And Loss Expenses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance Loss Reserves [Abstract] | |||
Gross liability at beginning of year | $5,766,529 | $5,645,549 | $5,225,143 |
Reinsurance recoverable at beginning of year | -1,234,504 | -1,141,110 | -1,002,919 |
Net liability at beginning of year | 4,532,025 | 4,504,439 | 4,222,224 |
Net losses incurred related to: | |||
Current year | 1,411,797 | 1,303,573 | 1,309,613 |
Prior years | -212,607 | -180,331 | -170,349 |
Total incurred | 1,199,190 | 1,123,242 | 1,139,264 |
Net paid losses related to: | |||
Current year | 171,824 | 115,669 | 117,123 |
Prior years | 1,001,537 | 973,987 | 743,844 |
Total paid | 1,173,361 | 1,089,656 | 860,967 |
Foreign exchange revaluation | -16,945 | -6,000 | 3,918 |
Net liability at end of year | 4,540,909 | 4,532,025 | 4,504,439 |
Reinsurance recoverable at end of year | 1,340,256 | 1,234,504 | 1,141,110 |
Gross liability at end of year | $5,881,165 | $5,766,529 | $5,645,549 |
Ceded_Reinsurance_Narrative_De
Ceded Reinsurance (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
reinsurers | |||
Concentration Risk [Line Items] | |||
Percentage of reinsurance recoverable | 100.00% | 100.00% | |
Credit concentration risk | Premiums ceded | |||
Concentration Risk [Line Items] | |||
Number of ceded reinsurers | 4 | ||
Concentration risk, percentage | 42.00% | 45.00% | 48.00% |
Credit concentration risk | Reinsurance recoverable | A- or better rating | |||
Concentration Risk [Line Items] | |||
Percentage of reinsurance recoverable | 99.00% |
Ceded_Reinsurance_Components_o
Ceded Reinsurance (Components of Reinsurance) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Reinsurance Disclosures [Abstract] | ||||
OSLR recoverable | $232,545 | $225,796 | ||
IBNR recoverable | 1,107,711 | 1,008,708 | ||
Reinsurance recoverable | 1,340,256 | 1,234,504 | 1,141,110 | 1,002,919 |
Reinsurance recoverable on paid losses | $86,075 | $76,099 |
Ceded_Reinsurance_Effects_of_R
Ceded Reinsurance (Effects of Reinsurance) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Disclosures [Abstract] | |||||||||||
Direct premiums written | $1,996,831 | $1,804,910 | $1,569,021 | ||||||||
Assumed premiums written | 938,594 | 933,754 | 760,250 | ||||||||
Ceded premiums written | -137,948 | -139,142 | -206,481 | -129,779 | -164,360 | -127,816 | -183,978 | -142,029 | -613,350 | -618,183 | -491,448 |
Net premiums written | 427,795 | 568,742 | 553,924 | 771,614 | 391,130 | 453,077 | 581,222 | 695,052 | 2,322,075 | 2,120,481 | 1,837,823 |
Direct premiums earned | 1,835,186 | 1,664,343 | 1,446,086 | ||||||||
Assumed premiums earned | 941,182 | 896,088 | 743,575 | ||||||||
Ceded premiums earned | -593,610 | -554,598 | -440,763 | ||||||||
Net premiums earned | 573,489 | 541,737 | 537,247 | 530,285 | 524,561 | 510,773 | 507,271 | 463,228 | 2,182,758 | 2,005,833 | 1,748,898 |
Direct losses and loss expenses | 1,031,284 | 936,084 | 877,961 | ||||||||
Assumed losses and loss expenses | 464,728 | 430,627 | 513,871 | ||||||||
Ceded losses and loss expenses | -296,822 | -243,469 | -252,568 | ||||||||
Net losses and loss expenses | $272,959 | $336,090 | $314,855 | $275,286 | $315,966 | $276,970 | $275,128 | $255,178 | $1,199,190 | $1,123,242 | $1,139,264 |
Ceded_Reinsurance_Credit_Risk_
Ceded Reinsurance (Credit Risk by Reinsurer) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | $1,340,256 | $1,234,504 | $1,141,110 | $1,002,919 |
Percentage of total | 100.00% | 100.00% | ||
Top five reinsurers | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 727,682 | 655,489 | ||
Percentage of total | 54.30% | 53.10% | ||
Top five reinsurers | A plus | Munich Re | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 285,918 | 214,070 | ||
Percentage of total | 21.30% | 17.30% | ||
Top five reinsurers | A plus | Axis Capital | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 148,371 | 143,063 | ||
Percentage of total | 11.10% | 11.60% | ||
Top five reinsurers | A plus | Arch Re | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 128,421 | 143,037 | ||
Percentage of total | 9.60% | 11.60% | ||
Top five reinsurers | A | Markel | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 86,595 | 86,462 | ||
Percentage of total | 6.50% | 7.00% | ||
Top five reinsurers | A | XL Group | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | 78,377 | 68,857 | ||
Percentage of total | 5.80% | 5.60% | ||
Other reinsurers' balances | ||||
Ceded Credit Risk [Line Items] | ||||
Reinsurance recoverable | $612,574 | $579,015 | ||
Percentage of total | 45.70% | 46.90% |
Funds_Held_Details
Funds Held (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Effects of Reinsurance [Line Items] | |||
Funds held | $724,021 | $632,430 | |
Assumed premiums written | 938,594 | 933,754 | 760,250 |
Aeolus Capital Management [Member] | |||
Effects of Reinsurance [Line Items] | |||
Funds held | 708,047 | 621,567 | |
Assumed premiums written | $87,275 | $83,300 | $34,597 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Goodwill, beginning of year | $268,376 | $268,376 | |
Additions | 9,882 | ||
Goodwill, end of year | 278,258 | 268,376 | |
Indefinite-lived intangible assets, net carrying value | 23,920 | 23,920 | 23,920 |
Finite-Lived Intangible Assets, Net [Abstract] | |||
Gross carrying value | 41,334 | 41,334 | 41,334 |
Accumulated amortization | -18,956 | -16,423 | -13,890 |
Net carrying value | 22,378 | 24,911 | 27,444 |
Amortization of intangible assets | -2,533 | -2,533 | |
Goodwill, accumulated impairment loss | 156 | ||
Intangible assets, accumulated impairment loss | 6,866 | ||
Expected remaining useful life | 8 years 9 months 18 days | ||
North American Insurance | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Goodwill, end of year | 274,341 | ||
Reinsurance | |||
Schedule Of Goodwill And Intangible Assets [Line Items] | |||
Goodwill, end of year | $3,917 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets (Future amortization expense) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2015 | $2,533 | ||
2016 | 2,533 | ||
2017 | 2,533 | ||
2018 | 2,533 | ||
2019 | 2,533 | ||
2020 and thereafter | 9,713 | ||
Net carrying value | $22,378 | $24,911 | $27,444 |
Debt_and_Financing_Arrangement2
Debt and Financing Arrangements (Financing Structure) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Components of financing structure: | ||||
Outstanding, total | $1,316,545 | [1] | $1,594,017 | [1] |
Balance, debt | 818,015 | [2] | 798,499 | [2] |
7.5% Senior notes due 2016 | ||||
Components of financing structure: | ||||
Outstanding, debt | 500,000 | [1] | 500,000 | [1] |
Balance, debt | 499,690 | [2] | 499,512 | [2] |
5.5% Senior notes due 2020 | ||||
Components of financing structure: | ||||
Outstanding, debt | 300,000 | [1] | 300,000 | [1] |
Balance, debt | 299,112 | [2] | 298,987 | [2] |
Swiss office building mortgage | ||||
Components of financing structure: | ||||
Outstanding, debt | 14,157 | [1] | ||
Balance, debt | 14,157 | [2] | ||
Swiss office building credit facility | ||||
Components of financing structure: | ||||
Outstanding, credit facility | 5,056 | [1] | ||
Balance, credit facility | 5,056 | [1] | ||
$1,000,000 secured letter of credit facility - uncommitted | ||||
Components of financing structure: | ||||
Outstanding, credit facility | 497,332 | [1] | 707,915 | [1] |
Credit facility, maximum borrowing capacity | 1,000,000 | 1,000,000 | ||
$150,000 secured letter of credit facility - committed | ||||
Components of financing structure: | ||||
Outstanding, credit facility | 0 | [1],[3] | 86,102 | [1] |
Credit facility, maximum borrowing capacity | $150,000 | $450,000 | ||
[1] | Indicates utilization of commitment amount, not drawn borrowings. | |||
[2] | Represents the principal amount borrowed, net of unamortized discount. | |||
[3] | The commitment was reduced from $450,000 to $150,000 during 2014. |
Debt_and_Financing_Arrangement3
Debt and Financing Arrangements (Debt Maturities) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Maturities of Long-term Debt [Abstract] | |
2015 | $228 |
2016 | 500,303 |
2017 | 5,359 |
2018 | 303 |
2019 | 303 |
2020 and thereafter | 312,717 |
Total | $819,213 |
Debt_and_Financing_Arrangement4
Debt and Financing Arrangements (Narrative) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 |
USD ($) | USD ($) | USD ($) | Allied World Bermuda (Subsidiary Issuer) | 7.5% Senior notes due 2016 | 5.5% Senior notes due 2020 | $1,000,000 secured letter of credit facility - uncommitted | $1,000,000 secured letter of credit facility - uncommitted | $1,000,000 secured letter of credit facility - uncommitted | $1,000,000 secured letter of credit facility - uncommitted | $800,000 secured letter of credit facility [Member] | $400,000 secured letter of credit facility (pre-amendment) | $400,000 unsecured letter of credit facility | $150,000 secured letter of credit facility | $150,000 secured letter of credit facility | $150,000 secured letter of credit facility | Switzerland | Switzerland | Switzerland | Switzerland | Switzerland | |
USD ($) | Allied World Bermuda (Subsidiary Issuer) | Allied World Bermuda (Subsidiary Issuer) | USD ($) | USD ($) | Allied World Bermuda (Subsidiary Issuer) | Allied World Bermuda (Subsidiary Issuer) | Allied World Bermuda (Subsidiary Issuer) | Allied World Bermuda (Subsidiary Issuer) | Allied World Bermuda (Subsidiary Issuer) | USD ($) | USD ($) | Allied World Bermuda (Subsidiary Issuer) | Swiss office building mortgage | Swiss office building mortgage | Swiss office building credit facility | Swiss office building credit facility | |||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | CHF | USD ($) | CHF | ||||||||||
Debt Instrument [Line Items] | |||||||||||||||||||||
Senior Notes, face amount | $500,000 | $300,000 | |||||||||||||||||||
Debt Instrument, interest rate | 7.50% | 5.50% | 3.20% | 3.20% | 2.50% | 2.50% | |||||||||||||||
Senior Notes, maturity date | 1-Aug-16 | 15-Nov-20 | |||||||||||||||||||
Senior Notes, frequency of periodic payment | semi-annually | semi-annually | |||||||||||||||||||
Senior Notes, date of first required payment | 1-Feb-07 | 15-May-11 | |||||||||||||||||||
Proceeds from other long-term debt | 19,213 | 0 | 0 | 0 | 14,157 | 14,000 | |||||||||||||||
Additional borrowing capacity | 4,044 | 4,000 | |||||||||||||||||||
Annual principal payment | 303 | 300 | |||||||||||||||||||
Number of annual principal payments required | 19 years | ||||||||||||||||||||
Line of Credit Facility, Initiation Date | 27-Nov-07 | 7-Jun-12 | |||||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | 1,000,000 | 1,000,000 | 1,000,000 | 1,000,000 | 800,000 | 400,000 | 400,000 | 150,000 | 450,000 | 450,000 | 5,056 | 5,000 | |||||||||
Debt instrument term | 5 years | 4 years | 20 years | 20 years | 3 years | 3 years | |||||||||||||||
Line of Credit Facility, Capacity Available for Specific Purpose Other than for Trade Purchases | 150,000 | ||||||||||||||||||||
Additional commitments subject to lender approval | $150,000 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Income Tax Expense (Benefit), Continuing Operations [Abstract] | |||||||||||
Current income tax expense | $26,768 | $21,669 | $18,239 | ||||||||
Deferred income tax expense (benefit) | 3,755 | -11,889 | 201 | ||||||||
Income tax expense | $6,223 | $1,532 | $6,195 | $16,573 | $3,448 | $4,971 | ($4,072) | $5,433 | $30,523 | $9,780 | $18,440 |
Income_Taxes_Sources_of_Income
Income Taxes (Sources of Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Before Income Tax Domestic And Foreign [Line Items] | |||||||||||
Income before income taxes | $136,732 | $32,447 | $158,058 | $193,545 | $141,355 | $127,814 | ($5,934) | $164,425 | $520,782 | $427,660 | $511,447 |
Non-U.S. | |||||||||||
Income Before Income Tax Domestic And Foreign [Line Items] | |||||||||||
Income before income taxes | 447,875 | 401,778 | 474,412 | ||||||||
United States | |||||||||||
Income Before Income Tax Domestic And Foreign [Line Items] | |||||||||||
Income before income taxes | $72,907 | $25,882 | $37,035 |
Income_Taxes_Deferred_Tax_Comp
Income Taxes (Deferred Tax Components) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Income Tax Disclosure [Abstract] | ||
Increase in valuation allowance | $1,221 | |
Deferred tax assets: | ||
Reserve for losses and loss expenses | 21,644 | 22,567 |
Equity compensation | 15,316 | 15,828 |
Unearned premium | 16,921 | 14,299 |
Deferred acquisition costs | 11,184 | 10,604 |
Other-than-temporary impairments | 0 | 407 |
Net loss carryforward | 7,958 | 7,642 |
Total deferred tax assets | 73,023 | 71,347 |
Deferred tax liabilities: | ||
Intangible assets | -13,856 | -14,743 |
Realized gains | -12,819 | -6,980 |
Depreciation | -2,513 | -2,942 |
Unrealized appreciation and timing differences on investments | -94 | -56 |
Market discount on bonds | -740 | -271 |
Other | -2,965 | -1,244 |
Total deferred tax liabilities | -32,987 | -26,236 |
Net deferred taxes before valuation allowance | 40,036 | 45,111 |
Valuation allowance | -6,421 | -7,642 |
Net deferred tax assets | $33,615 | $37,469 |
Income_Taxes_Current_Taxes_Det
Income Taxes (Current Taxes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Current tax receivable | $8,640 | $11,684 |
Current tax payable | $829 | $1,452 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Effective Tax Rate) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Disclosure [Abstract] | |||
Expected tax rate | 7.80% | 7.80% | 7.80% |
Income not subject to income tax | -7.10% | -8.20% | -7.30% |
Foreign taxes at local expected tax rates | 4.40% | 1.40% | 2.10% |
Disallowed expenses and capital allowances | 0.20% | 1.00% | 0.70% |
Prior year refunds and adjustments | 1.20% | 0.80% | 0.40% |
Other | -0.60% | -0.50% | -0.10% |
Effective tax rate | 5.90% | 2.30% | 3.60% |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 09, 2013 | 1-May-14 | 2-May-13 | |
Class of Stock [Line Items] | ||||||
Stock Repurchased and Retired During Period, Shares | 2,702,196 | |||||
Treasury Stock, Shares, Acquired | 4,906,785 | 5,544,432 | 10,967,877 | |||
Common stock, shares outstanding | 96,195,482 | 100,253,646 | ||||
Shares cancelled, shares | 2,702,196 | 5,632,152 | ||||
Maximum percentage of registered capital in treasury shares | 10.00% | |||||
Allied World Switzerland (Parent Guarantor) | ||||||
Class of Stock [Line Items] | ||||||
Threshold for dividend restrictions | 20.00% | |||||
Minimum Annual Profit Percentage Required | 5.00% | |||||
Nonvoting common stock | ||||||
Class of Stock [Line Items] | ||||||
Shares cancelled, shares | 87,720 | |||||
Common shares repurchased and constructively retired | ||||||
Class of Stock [Line Items] | ||||||
Shares cancelled, shares | 4,616,058 | |||||
Common shares | ||||||
Class of Stock [Line Items] | ||||||
Dividends declared per share | $0.23 | $0.17 |
Shareholders_Equity_Issued_Sha
Shareholders' Equity (Issued Share Capital) (Details) | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | USD ($) | CHF | USD ($) | CHF | |
Stockholders' Equity Note [Abstract] | |||||
Common shares issued and fully paid, 2014 and 2013: CHF 4.10 per share | 100,775,256 | 100,775,256 | 103,477,452 | 103,477,452 | 109,109,604 |
Common shares, par value | 4.1 | 4.1 | |||
Total share capital | $408,020 | $418,988 |
Shareholders_Equity_Schedule_O
Shareholders' Equity (Schedule Of Common Stock Outstanding Roll Forward) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |||
Shares issued at beginning of year | 103,477,452 | 109,109,604 | |
Shares cancelled, shares | -2,702,196 | -5,632,152 | |
Shares issued at end of year | 100,775,256 | 103,477,452 | 109,109,604 |
Treasury Stock Transactions, Excluding Value of Shares Reissued [Abstract] | |||
Treasury shares issued at beginning of year | 3,223,806 | 4,716,261 | |
Shares repurchased, shares | 4,906,785 | 5,544,432 | 10,967,877 |
Shares issued out of treasury | -848,621 | -1,404,735 | |
Shares cancelled, shares | -2,702,196 | -5,632,152 | |
Total treasury shares at end of year | 4,579,774 | 3,223,806 | 4,716,261 |
Total shares outstanding at end of year | 96,195,482 | 100,253,646 |
Shareholders_Equity_Schedule_O1
Shareholders' Equity (Schedule Of Dividends Paid) (Details) | 12 Months Ended | 0 Months Ended | |||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 02, 2014 | Jul. 02, 2014 | Apr. 03, 2014 | Jan. 02, 2014 | Oct. 03, 2013 | Jul. 03, 2013 | Mar. 12, 2013 | Mar. 12, 2013 | Dec. 18, 2012 | Dec. 18, 2012 | Sep. 25, 2012 | Sep. 25, 2012 | Aug. 06, 2012 | Aug. 06, 2012 | Apr. 06, 2012 | Apr. 06, 2012 | Jan. 06, 2012 | Jan. 06, 2012 |
USD ($) | USD ($) | USD ($) | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | Common shares | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | Par Value Reduction | ||||
USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | USD ($) | CHF | ||||||||||
Dividends, Common Stock [Abstract] | |||||||||||||||||||||
Dividends paid per common share | $0.78 | $0.46 | $0.63 | $0.23 | $0.23 | $0.17 | $0.17 | $0.17 | $0.17 | $0.13 | 0.11 | $0.13 | 0.11 | $0.13 | 0.12 | $0.13 | 0.12 | $0.13 | 0.11 | $0.13 | 0.12 |
Payment of quarterly dividends | $21,686 | $21,870 | $16,495 | $16,732 | $16,952 | $17,117 | $12,981 | $13,010 | $13,324 | $13,394 | $13,795 | $14,302 |
Shareholders_Equity_Schedule_O2
Shareholders' Equity (Schedule Of Share Repurchases) (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | 1-May-14 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | ||||
Stock repurchase program, authorized amount | $500,000 | |||
Treasury shares reserved for issuance under stock compensation plans | 3,000,000 | |||
Shares repurchased, shares | 4,906,785 | 5,544,432 | 10,967,877 | |
Cost of shares repurchased | $175,373 | $174,686 | $263,942 | |
Shares repurchased, average price per share | $35.74 | $31.51 | $24.07 |
Employee_Benefit_Plans_Options
Employee Benefit Plans (Options) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding, beginning of year | 2,928,312 | ||
Granted | 0 | 0 | 0 |
Exercised | -479,831 | -674,187 | -801,810 |
Forfeited | -15,096 | ||
Expired | -6,711 | ||
Outstanding, end of year | 2,426,674 | 2,928,312 | |
Exercisable, end of year | 2,151,790 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | |||
Outstanding, beginning of year - weighted average exercise price | $16.07 | ||
Granted - weighted average exercise price | $0 | ||
Exercised - weighted average exercise price | ($14.25) | ||
Forfeited - weighted average exercise price | ($20.50) | ||
Expired - weighted average exercise price | ($16.35) | ||
Outstanding, end of year - weighted average exercise price | $16.40 | $16.07 | |
Exercisable, end of year - weighted average exercise price | $15.88 | ||
Additional disclosures: | |||
Outstanding, end of year, weighted average contractual term | 4 years 8 months 12 days | ||
Exercisable, end of year, weighted average contractual term | 4 years 6 months 0 days | ||
Outstanding, end of year, aggregate intrinsic value | $52,212 | ||
Exercisable, end of year, aggregate intrinsic value | 47,424 | ||
Weighted average grant date fair value | $0 | $0 | $0 |
Total intrinsic value of options exercised | 10,313 | 12,212 | 9,650 |
Proceeds from option exercises | 10,027 | 12,137 | 10,527 |
Stock options | |||
Additional disclosures: | |||
Total compensation cost not yet recognized | $299 | ||
Compensation cost not yet recognized, period for recognition | 0 years 1 month 22 days | ||
Life of award | 10 years | ||
Vesting period | 4 years |
Employee_Benefit_Plans_Restric
Employee Benefit Plans (Restricted Stock Units) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
RSUs and performance-based equity awards | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value of vested awards | $14,366 | $28,836 | $13,947 |
Vesting period | 4 years | ||
Rsus Other Than Performance Based Rsus | |||
Activity: | |||
Outstanding, beginning of year | 143,697 | ||
Granted, shares | 454,176 | ||
Forfeited, shares | -16,386 | ||
Fully vested, shares | -78,981 | ||
Outstanding, end of year | 502,506 | ||
Weighted average grant date fair value: | |||
Outstanding, beginning of year - weighted average grant date fair value | $21.69 | ||
Granted - weighted average grant date fair value | $33.56 | ||
Forfeited - weighted average grant date fair value | ($31.22) | ||
Vested - weighted average grant date fair value | ($21.76) | ||
Outstanding, end of year - weighted average grant date fair value | $32.10 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value | 19,055 | ||
Total compensation cost not yet recognized | 12,057 | ||
Compensation cost not yet recognized, period for recognition | 1 year 11 months 8 days | ||
Performance Based Rsus | |||
Activity: | |||
Outstanding, beginning of year | 804,519 | ||
Granted, shares | 166,302 | ||
Additional awards granted due to achievement of performance criteria, shares | 104,895 | ||
Forfeited, shares | -4,635 | ||
Fully vested, shares | -454,440 | ||
Outstanding, end of year | 616,641 | 804,519 | |
Weighted average grant date fair value: | |||
Outstanding, beginning of year - weighted average grant date fair value | $23.21 | ||
Granted - weighted average grant date fair value | $33.56 | ||
Additional awards granted due to achievement of performance criteria - weighted average grant date fair value | $20.50 | ||
Forfeited - weighted average grant date fair value | ($25.20) | ||
Vested - weighted average grant date fair value | ($20.50) | ||
Outstanding, end of year - weighted average grant date fair value | $27.52 | $23.21 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |||
Aggregate intrinsic value | 23,383 | ||
Total compensation cost not yet recognized | $5,814 | ||
Compensation cost not yet recognized, period for recognition | 1 year 7 months 20 days | ||
The rate at which performance awards are expensed | 100.00% | 110.00% | 135.00% |
Employee_Benefit_Plans_CashEqu
Employee Benefit Plans (Cash-Equivalent Stock Awards) (Details) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Accounts payable and accrued liabilities | $181,622 | $170,225 |
Cash-equivalent stock awards | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Accounts payable and accrued liabilities | $51,343 | |
Cash Equivalent Stock Awards Rsus [Member] | ||
Activity: | ||
Outstanding, beginning of year | 2,049,084 | |
Granted, shares | 438,162 | |
Additional awards granted due to achievement of performance criteria, shares | 0 | |
Forfeited, shares | -77,322 | |
Fully vested, shares | -755,860 | |
Outstanding, end of year | 1,654,064 | |
Weighted average grant date fair value: | ||
Outstanding, beginning of year - weighted average grant date fair value | $24.69 | |
Granted - weighted average grant date fair value | $33.56 | |
Additional awards granted due to achievement of performance criteria - weighted average grant date fair value | $0 | |
Forfeited - weighted average grant date fair value | ($27.12) | |
Vested - weighted average grant date fair value | ($22.51) | |
Outstanding, end of year - weighted average grant date fair value | $27.99 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Vesting period | 4 years | |
Cash Equivalent Stock Awards Performance Based [Member] | ||
Activity: | ||
Outstanding, beginning of year | 1,031,961 | |
Granted, shares | 249,438 | |
Additional awards granted due to achievement of performance criteria, shares | 104,895 | |
Forfeited, shares | -6,948 | |
Fully vested, shares | -454,440 | |
Outstanding, end of year | 924,906 | |
Weighted average grant date fair value: | ||
Outstanding, beginning of year - weighted average grant date fair value | $23.67 | |
Granted - weighted average grant date fair value | $33.56 | |
Additional awards granted due to achievement of performance criteria - weighted average grant date fair value | $20.50 | |
Forfeited - weighted average grant date fair value | ($25.20) | |
Vested - weighted average grant date fair value | ($20.50) | |
Outstanding, end of year - weighted average grant date fair value | $27.52 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | ||
Vesting period | 3 years |
Employee_Benefit_Plans_Other_D
Employee Benefit Plans (Other Details) (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $52,034 | $64,847 | $50,402 |
Expense related to defined contribution arrangements | 10,648 | 9,287 | 6,602 |
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 1,949 | 3,269 | 4,256 |
Vesting period | 4 years | ||
RSUs and performance-based equity awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 12,295 | 10,700 | 13,010 |
Vesting period | 4 years | ||
LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 0 | 0 | 376 |
Cash-equivalent stock awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $37,790 | $50,878 | $32,760 |
2012 Omnibus Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares authorized | 4,500,000 | ||
2012 Omnibus Plan | Awards other than performance-based | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 4 years | ||
2012 Omnibus Plan | Performance-based awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share purchase plan, discount from fair market value | 15.00% | ||
Number of shares authorized | 3,000,000 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Employee stock options and RSUs) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee stock options and RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 0 | 678,312 |
Earnings_Per_Share_Comparison_
Earnings Per Share (Comparison Of Basic And Diluted Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share: | |||||||||||
Net income | $130,509 | $30,915 | $151,863 | $176,972 | $137,907 | $122,843 | ($1,862) | $158,992 | $490,259 | $417,880 | $493,007 |
Weighted average common shares outstanding | 96,386,796 | 96,458,231 | 97,809,639 | 99,545,187 | 100,814,955 | 101,974,077 | 103,267,659 | 103,840,818 | 97,538,319 | 102,464,715 | 108,171,435 |
Basic earnings per share | $1.35 | $0.32 | $1.55 | $1.78 | $1.37 | $1.20 | ($0.02) | $1.53 | $5.03 | $4.08 | $4.56 |
Diluted earnings per share: | |||||||||||
Net income | $130,509 | $30,915 | $151,863 | $176,972 | $137,907 | $122,843 | ($1,862) | $158,992 | $490,259 | $417,880 | $493,007 |
Weighted average common shares outstanding | 96,386,796 | 96,458,231 | 97,809,639 | 99,545,187 | 100,814,955 | 101,974,077 | 103,267,659 | 103,840,818 | 97,538,319 | 102,464,715 | 108,171,435 |
Share equivalents: | |||||||||||
Warrants and options | 1,432,960 | 1,536,939 | 1,306,002 | ||||||||
RSUs and LTIP awards | 605,808 | 864,180 | 1,727,265 | ||||||||
Employee share purchase plan | 14,686 | 0 | 4,953 | ||||||||
Weighted average common shares and common share equivalents outstanding - diluted | 98,394,432 | 98,444,238 | 99,724,802 | 101,584,662 | 103,129,812 | 104,184,579 | 103,267,659 | 106,295,529 | 99,591,773 | 104,865,834 | 111,209,655 |
Diluted earnings per share | $1.33 | $0.31 | $1.52 | $1.74 | $1.34 | $1.18 | ($0.02) | $1.50 | $4.92 | $3.98 | $4.43 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Operating Leases) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
2015 | $12,568 | ||
2016 | 16,903 | ||
2017 | 20,596 | ||
2018 | 20,096 | ||
2019 | 19,013 | ||
2020 and thereafter | 138,602 | ||
Total | 227,778 | ||
Other details: | |||
Total rent expense | 18,950 | 11,392 | 11,929 |
Accelerated rent expense due to early termination of lease | $963 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Credit Concentration Disclosure) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Concentration Risk [Line Items] | |||
Number of custodians | 1 | 1 | |
Gross written premium | Credit concentration risk | Marsh & McLennan Companies, Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25.00% | 26.00% | 25.00% |
Gross written premium | Credit concentration risk | Aon Corporation | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 17.00% | 18.00% | 19.00% |
Gross written premium | Credit concentration risk | Willis Group Holdings | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 12.00% | 11.00% |
Statutory_Capital_and_Surplus_1
Statutory Capital and Surplus (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Accounting Practices [Line Items] | |||
Amount of restricted net assets for the Company's consolidated subsidiaries | $2,953,535 | ||
Bermuda | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 3,273,730 | 3,208,776 | |
Minimum Required Statutory Capital and Surplus | 876,235 | 806,012 | |
Statutory Net Income (Loss) | 487,051 | 467,283 | 528,712 |
Statutory Amount Available for Dividend Payments | 818,433 | ||
United States | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 1,220,299 | 1,187,023 | |
Minimum Required Statutory Capital and Surplus | 226,876 | 205,699 | |
Statutory Net Income (Loss) | 45,445 | 36,744 | 25,390 |
Statutory Amount Available for Dividend Payments | 102,283 | ||
Ireland | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 410,841 | 407,600 | |
Minimum Required Statutory Capital and Surplus | 29,204 | 27,098 | |
Statutory Net Income (Loss) | 3,241 | -4,880 | 9,325 |
Statutory Amount Available for Dividend Payments | 21,637 | ||
Switzerland | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 172,306 | 167,840 | |
Minimum Required Statutory Capital and Surplus | 19,943 | 22,905 | |
Statutory Net Income (Loss) | 7,408 | -6,418 | 10,657 |
Statutory Amount Available for Dividend Payments | 6,323 | ||
United Kingdom | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 231,659 | 229,745 | |
Minimum Required Statutory Capital and Surplus | 203,742 | 229,689 | |
Statutory Net Income (Loss) | -7,819 | 9,362 | 1,800 |
Statutory Amount Available for Dividend Payments | $1,601 |
Segment_Information_Summary_Of
Segment Information (Summary Of Segment Results) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | $565,743 | $707,884 | $760,405 | $901,393 | $555,490 | $580,893 | $765,200 | $837,081 | $2,935,425 | $2,738,664 | $2,329,271 |
Net premiums written | 427,795 | 568,742 | 553,924 | 771,614 | 391,130 | 453,077 | 581,222 | 695,052 | 2,322,075 | 2,120,481 | 1,837,823 |
Net premiums earned | 573,489 | 541,737 | 537,247 | 530,285 | 524,561 | 510,773 | 507,271 | 463,228 | 2,182,758 | 2,005,833 | 1,748,898 |
Net losses and loss expenses | -272,959 | -336,090 | -314,855 | -275,286 | -315,966 | -276,970 | -275,128 | -255,178 | -1,199,190 | -1,123,242 | -1,139,264 |
Acquisition costs | -80,718 | -72,403 | -74,279 | -67,722 | -66,257 | -65,114 | -64,617 | -56,685 | -295,122 | -252,673 | -205,722 |
General and administrative expenses | -100,914 | -88,294 | -96,188 | -80,340 | -100,467 | -88,553 | -80,585 | -82,680 | -365,736 | -352,285 | -307,321 |
Underwriting income | 322,710 | 277,633 | 96,591 | ||||||||
Other insurance-related revenue | 1,032 | 1,032 | 0 | 0 | 2,064 | 0 | 0 | ||||
Other insurance-related expenses | -2,003 | -6,575 | 0 | 0 | -8,578 | 0 | 0 | ||||
Segment income | 316,196 | 277,633 | 96,591 | ||||||||
Net investment income | 49,050 | 43,412 | 36,793 | 47,619 | 47,270 | 39,271 | 37,635 | 33,388 | 176,874 | 157,564 | 167,141 |
Net realized investment gains (losses) | -15,329 | -35,136 | 85,217 | 54,205 | 67,599 | 27,487 | -115,198 | 79,637 | 88,957 | 59,525 | 306,436 |
Amortization of intangible assets | -633 | -633 | -634 | -633 | -633 | -633 | -634 | -633 | -2,533 | -2,533 | -2,533 |
Interest expense | -14,304 | -14,325 | -14,592 | -14,534 | -14,094 | -14,094 | -14,188 | -14,134 | -57,755 | -56,510 | -55,405 |
Foreign exchange (loss) gain | 21 | -278 | -651 | -49 | -658 | -4,353 | -490 | -2,518 | -957 | -8,019 | -783 |
Income before income taxes | 136,732 | 32,447 | 158,058 | 193,545 | 141,355 | 127,814 | -5,934 | 164,425 | 520,782 | 427,660 | 511,447 |
Loss and loss expense ratio | 54.90% | 56.00% | 65.10% | ||||||||
Acquisition cost ratio | 13.50% | 12.60% | 11.80% | ||||||||
General and administrative expense ratio | 16.80% | 17.60% | 17.60% | ||||||||
Expense ratio | 30.30% | 30.20% | 29.40% | ||||||||
Combined ratio | 85.20% | 86.20% | 94.50% | ||||||||
Number of operating segments | 3 | ||||||||||
Operating segments | North American Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | 1,716,288 | 1,572,355 | 1,376,040 | ||||||||
Net premiums written | 1,230,839 | 1,082,441 | 964,199 | ||||||||
Net premiums earned | 1,111,164 | 1,022,979 | 892,721 | ||||||||
Net losses and loss expenses | -683,836 | -651,267 | -608,762 | ||||||||
Acquisition costs | -105,914 | -94,869 | -77,701 | ||||||||
General and administrative expenses | -219,665 | -209,042 | -185,231 | ||||||||
Underwriting income | 101,749 | 67,801 | 21,027 | ||||||||
Other insurance-related revenue | 2,064 | 0 | 0 | ||||||||
Other insurance-related expenses | -1,854 | 0 | 0 | ||||||||
Segment income | 101,959 | 67,801 | 21,027 | ||||||||
Loss and loss expense ratio | 61.50% | 63.70% | 68.20% | ||||||||
Acquisition cost ratio | 9.50% | 9.30% | 8.70% | ||||||||
General and administrative expense ratio | 19.80% | 20.40% | 20.70% | ||||||||
Expense ratio | 29.30% | 29.70% | 29.40% | ||||||||
Combined ratio | 90.80% | 93.40% | 97.60% | ||||||||
Operating segments | Global Markets Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | 280,543 | 232,555 | 192,981 | ||||||||
Net premiums written | 187,997 | 145,002 | 125,577 | ||||||||
Net premiums earned | 162,566 | 126,008 | 115,660 | ||||||||
Net losses and loss expenses | -61,057 | -50,395 | -19,536 | ||||||||
Acquisition costs | -18,222 | -10,051 | -8,483 | ||||||||
General and administrative expenses | -68,106 | -63,164 | -48,365 | ||||||||
Underwriting income | 15,181 | 2,398 | 39,276 | ||||||||
Other insurance-related revenue | 0 | 0 | 0 | ||||||||
Other insurance-related expenses | -6,724 | 0 | 0 | ||||||||
Segment income | 8,457 | 2,398 | 39,276 | ||||||||
Loss and loss expense ratio | 37.60% | 40.00% | 16.90% | ||||||||
Acquisition cost ratio | 11.20% | 8.00% | 7.30% | ||||||||
General and administrative expense ratio | 41.90% | 50.10% | 41.80% | ||||||||
Expense ratio | 53.10% | 58.10% | 49.10% | ||||||||
Combined ratio | 90.70% | 98.10% | 66.00% | ||||||||
Operating segments | Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross premiums written | 938,594 | 933,754 | 760,250 | ||||||||
Net premiums written | 903,239 | 893,038 | 748,047 | ||||||||
Net premiums earned | 909,028 | 856,846 | 740,517 | ||||||||
Net losses and loss expenses | -454,297 | -421,580 | -510,966 | ||||||||
Acquisition costs | -170,986 | -147,753 | -119,538 | ||||||||
General and administrative expenses | -77,965 | -80,079 | -73,725 | ||||||||
Underwriting income | 205,780 | 207,434 | 36,288 | ||||||||
Other insurance-related revenue | 0 | 0 | 0 | ||||||||
Other insurance-related expenses | 0 | 0 | 0 | ||||||||
Segment income | $205,780 | $207,434 | $36,288 | ||||||||
Loss and loss expense ratio | 50.00% | 49.20% | 69.00% | ||||||||
Acquisition cost ratio | 18.80% | 17.20% | 16.10% | ||||||||
General and administrative expense ratio | 8.60% | 9.30% | 10.00% | ||||||||
Expense ratio | 27.40% | 26.50% | 26.10% | ||||||||
Combined ratio | 77.40% | 75.70% | 95.10% |
Segment_Information_Gross_Prem
Segment Information (Gross Premiums Written By Geographic Location) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | $565,743 | $707,884 | $760,405 | $901,393 | $555,490 | $580,893 | $765,200 | $837,081 | $2,935,425 | $2,738,664 | $2,329,271 |
United States | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | 1,795,564 | 1,636,010 | 1,360,190 | ||||||||
Bermuda | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | 640,948 | 676,174 | 611,382 | ||||||||
Europe | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | 318,626 | 264,867 | 228,791 | ||||||||
Asia Pacific | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | 167,334 | 161,613 | 128,908 | ||||||||
Canada | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | 12,953 | 0 | 0 | ||||||||
Switzerland | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Gross premiums written | $67,564 | $61,042 | $43,664 |
Segment_Information_Net_Premiu
Segment Information (Net Premiums Earned by Line of Business) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $573,489 | $541,737 | $537,247 | $530,285 | $524,561 | $510,773 | $507,271 | $463,228 | $2,182,758 | $2,005,833 | $1,748,898 |
Operating segments | North American Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 1,111,164 | 1,022,979 | 892,721 | ||||||||
Operating segments | North American Insurance | General casualty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 334,603 | 269,114 | 211,238 | ||||||||
Operating segments | North American Insurance | Professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 276,105 | 259,215 | 245,583 | ||||||||
Operating segments | North American Insurance | Healthcare | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 168,476 | 194,344 | 187,053 | ||||||||
Operating segments | North American Insurance | General property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 126,646 | 141,896 | 137,002 | ||||||||
Operating segments | North American Insurance | Programs | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 119,756 | 107,870 | 88,180 | ||||||||
Operating segments | North American Insurance | Inland marine | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 43,666 | 25,939 | 10,612 | ||||||||
Operating segments | North American Insurance | Environmental | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 19,507 | 17,017 | 12,627 | ||||||||
Operating segments | North American Insurance | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 22,405 | 7,584 | 426 | ||||||||
Operating segments | Global Markets Insurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 162,566 | 126,008 | 115,660 | ||||||||
Operating segments | Global Markets Insurance | General casualty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 15,266 | 13,903 | 16,762 | ||||||||
Operating segments | Global Markets Insurance | Professional liability | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 57,176 | 45,967 | 43,621 | ||||||||
Operating segments | Global Markets Insurance | Healthcare | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 11,963 | 11,154 | 9,055 | ||||||||
Operating segments | Global Markets Insurance | General property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 33,957 | 31,364 | 36,751 | ||||||||
Operating segments | Global Markets Insurance | Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 4,239 | 0 | 0 | ||||||||
Operating segments | Global Markets Insurance | Aviation | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 22,342 | 9,521 | 0 | ||||||||
Operating segments | Global Markets Insurance | Trade credit | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 17,623 | 14,099 | 9,471 | ||||||||
Operating segments | Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 909,028 | 856,846 | 740,517 | ||||||||
Operating segments | Reinsurance | Property | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 411,968 | 336,009 | 273,167 | ||||||||
Operating segments | Reinsurance | Specialty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | 321,538 | 349,044 | 283,415 | ||||||||
Operating segments | Reinsurance | Casualty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums earned | $175,522 | $171,793 | $183,935 |
Condensed_Consolidated_Guarant2
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Balance Sheet) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | |||||
ASSETS: | |||||
Investments | $7,868,682 | $7,712,036 | |||
Cash and cash equivalents | 589,339 | 531,936 | 681,879 | 633,996 | 633,996 |
Insurance balances receivable | 664,815 | 588,632 | |||
Funds held | 724,021 | 632,430 | |||
Reinsurance recoverable | 1,340,256 | 1,234,504 | 1,141,110 | 1,002,919 | |
Reinsurance recoverable on paid losses | 86,075 | 76,099 | |||
Net deferred acquisition costs | 151,546 | 126,661 | |||
Goodwill and intangible assets | 324,556 | 317,207 | |||
Balances receivable on sale of investments | 47,149 | 76,544 | |||
Investments in subsidiaries | 0 | 0 | |||
Due from subsidiaries | 0 | 0 | |||
Other assets | 625,124 | 649,781 | |||
Total assets | 12,421,563 | 11,945,830 | |||
LIABILITIES: | |||||
Reserve for losses and loss expenses | 5,881,165 | 5,766,529 | 5,645,549 | 5,225,143 | |
Unearned premiums | 1,555,313 | 1,396,256 | |||
Reinsurance balances payable | 180,060 | 173,023 | |||
Balances due on purchases of investments | 5,428 | 104,740 | |||
Senior notes | 798,802 | 798,499 | |||
Other long-term debt | 19,213 | 0 | |||
Due to subsidiaries | 0 | 0 | |||
Other liabilities | 203,291 | 186,957 | |||
Total liabilities | 8,643,272 | 8,426,004 | |||
Total shareholders' equity | 3,778,291 | 3,519,826 | 3,326,335 | 3,149,022 | |
Total liabilities and shareholders' equity | 12,421,563 | 11,945,830 | |||
Consolidating Adjustments | |||||
ASSETS: | |||||
Investments | 0 | 0 | |||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Insurance balances receivable | 0 | 0 | |||
Funds held | 0 | 0 | |||
Reinsurance recoverable | 0 | 0 | |||
Reinsurance recoverable on paid losses | 0 | ||||
Net deferred acquisition costs | 0 | 0 | |||
Goodwill and intangible assets | 0 | 0 | |||
Balances receivable on sale of investments | 0 | 0 | |||
Investments in subsidiaries | -7,847,329 | -7,431,620 | |||
Due from subsidiaries | -180,658 | -357,497 | |||
Other assets | 0 | 0 | |||
Total assets | -8,027,987 | -7,789,117 | |||
LIABILITIES: | |||||
Reserve for losses and loss expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Reinsurance balances payable | 0 | 0 | |||
Balances due on purchases of investments | 0 | 0 | |||
Senior notes | 0 | 0 | |||
Other long-term debt | 0 | ||||
Due to subsidiaries | -180,658 | -357,497 | |||
Other liabilities | 0 | 0 | |||
Total liabilities | -180,658 | -357,497 | |||
Total shareholders' equity | -7,847,329 | -7,431,620 | |||
Total liabilities and shareholders' equity | -8,027,987 | -7,789,117 | |||
Allied World Switzerland (Parent Guarantor) | |||||
ASSETS: | |||||
Investments | 0 | 0 | |||
Cash and cash equivalents | 32,579 | 10,790 | 19,997 | 112,672 | |
Insurance balances receivable | 0 | 0 | |||
Funds held | 0 | 0 | |||
Reinsurance recoverable | 0 | 0 | |||
Reinsurance recoverable on paid losses | 0 | 0 | |||
Net deferred acquisition costs | 0 | 0 | |||
Goodwill and intangible assets | 0 | 0 | |||
Balances receivable on sale of investments | 0 | 0 | |||
Investments in subsidiaries | 3,629,301 | 3,413,001 | |||
Due from subsidiaries | 147,072 | 111,172 | |||
Other assets | 1,470 | 1,757 | |||
Total assets | 3,810,422 | 3,536,720 | |||
LIABILITIES: | |||||
Reserve for losses and loss expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Reinsurance balances payable | 0 | 0 | |||
Balances due on purchases of investments | 0 | 0 | |||
Senior notes | 0 | 0 | |||
Other long-term debt | 0 | ||||
Due to subsidiaries | 7,599 | 12,945 | |||
Other liabilities | 24,532 | 3,949 | |||
Total liabilities | 32,131 | 16,894 | |||
Total shareholders' equity | 3,778,291 | 3,519,826 | |||
Total liabilities and shareholders' equity | 3,810,422 | 3,536,720 | |||
Allied World Bermuda (Subsidiary Issuer) | |||||
ASSETS: | |||||
Investments | 0 | 0 | |||
Cash and cash equivalents | 1,734 | 2,775 | 11,324 | 8,886 | |
Insurance balances receivable | 0 | 0 | |||
Funds held | 0 | 0 | |||
Reinsurance recoverable | 0 | 0 | |||
Reinsurance recoverable on paid losses | 0 | 0 | |||
Net deferred acquisition costs | 0 | 0 | |||
Goodwill and intangible assets | 0 | 0 | |||
Balances receivable on sale of investments | 0 | 0 | |||
Investments in subsidiaries | 4,218,028 | 4,018,619 | |||
Due from subsidiaries | 19,190 | 122,846 | |||
Other assets | 3,192 | 4,671 | |||
Total assets | 4,242,144 | 4,148,911 | |||
LIABILITIES: | |||||
Reserve for losses and loss expenses | 0 | 0 | |||
Unearned premiums | 0 | 0 | |||
Reinsurance balances payable | 0 | 0 | |||
Balances due on purchases of investments | 0 | ||||
Senior notes | 798,802 | 798,499 | |||
Other long-term debt | 0 | ||||
Due to subsidiaries | 6,797 | 110,534 | |||
Other liabilities | 19,618 | 17,797 | |||
Total liabilities | 825,217 | 926,830 | |||
Total shareholders' equity | 3,416,927 | 3,222,081 | |||
Total liabilities and shareholders' equity | 4,242,144 | 4,148,911 | |||
Other Allied World Subsidiaries | |||||
ASSETS: | |||||
Investments | 7,868,682 | 7,712,036 | |||
Cash and cash equivalents | 555,026 | 518,371 | 650,558 | 512,438 | |
Insurance balances receivable | 664,815 | 588,632 | |||
Funds held | 724,021 | 632,430 | |||
Reinsurance recoverable | 1,340,256 | 1,234,504 | |||
Reinsurance recoverable on paid losses | 86,075 | 76,099 | |||
Net deferred acquisition costs | 151,546 | 126,661 | |||
Goodwill and intangible assets | 324,556 | 317,207 | |||
Balances receivable on sale of investments | 47,149 | 76,544 | |||
Investments in subsidiaries | 0 | 0 | |||
Due from subsidiaries | 14,396 | 123,479 | |||
Other assets | 620,462 | 643,353 | |||
Total assets | 12,396,984 | 12,049,316 | |||
LIABILITIES: | |||||
Reserve for losses and loss expenses | 5,881,165 | 5,766,529 | |||
Unearned premiums | 1,555,313 | 1,396,256 | |||
Reinsurance balances payable | 180,060 | 173,023 | |||
Balances due on purchases of investments | 5,428 | 104,740 | |||
Senior notes | 0 | 0 | |||
Other long-term debt | 19,213 | ||||
Due to subsidiaries | 166,262 | 234,018 | |||
Other liabilities | 159,141 | 165,211 | |||
Total liabilities | 7,966,582 | 7,839,777 | |||
Total shareholders' equity | 4,430,402 | 4,209,539 | |||
Total liabilities and shareholders' equity | $12,396,984 | $12,049,316 |
Condensed_Consolidated_Guarant3
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Income Statement) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net premiums earned | $573,489 | $541,737 | $537,247 | $530,285 | $524,561 | $510,773 | $507,271 | $463,228 | $2,182,758 | $2,005,833 | $1,748,898 |
Net investment income | 49,050 | 43,412 | 36,793 | 47,619 | 47,270 | 39,271 | 37,635 | 33,388 | 176,874 | 157,564 | 167,141 |
Net realized investment gains (losses) | -15,329 | -35,136 | 85,217 | 54,205 | 67,599 | 27,487 | -115,198 | 79,637 | 88,957 | 59,525 | 306,436 |
Other income | 1,032 | 1,032 | 0 | 0 | 2,064 | 0 | 0 | ||||
Net losses and loss expenses | -272,959 | -336,090 | -314,855 | -275,286 | -315,966 | -276,970 | -275,128 | -255,178 | -1,199,190 | -1,123,242 | -1,139,264 |
Acquisition costs | -80,718 | -72,403 | -74,279 | -67,722 | -66,257 | -65,114 | -64,617 | -56,685 | -295,122 | -252,673 | -205,722 |
General and administrative expenses | -100,914 | -88,294 | -96,188 | -80,340 | -100,467 | -88,553 | -80,585 | -82,680 | -365,736 | -352,285 | -307,321 |
Other expense | -2,003 | -6,575 | 0 | 0 | -8,578 | 0 | 0 | ||||
Amortization of intangible assets | -633 | -633 | -634 | -633 | -633 | -633 | -634 | -633 | -2,533 | -2,533 | -2,533 |
Interest expense | -14,304 | -14,325 | -14,592 | -14,534 | -14,094 | -14,094 | -14,188 | -14,134 | -57,755 | -56,510 | -55,405 |
Foreign exchange (loss) gain | 21 | -278 | -651 | -49 | -658 | -4,353 | -490 | -2,518 | -957 | -8,019 | -783 |
Income tax (expense) benefit | -6,223 | -1,532 | -6,195 | -16,573 | -3,448 | -4,971 | 4,072 | -5,433 | -30,523 | -9,780 | -18,440 |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
NET INCOME | 130,509 | 30,915 | 151,863 | 176,972 | 137,907 | 122,843 | -1,862 | 158,992 | 490,259 | 417,880 | 493,007 |
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | 0 | 0 | -493 | ||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | -13,991 | ||||||||||
Other comprehensive loss | 0 | 0 | -14,484 | ||||||||
COMPREHENSIVE INCOME (LOSS) | 490,259 | 417,880 | 478,523 | ||||||||
Parenthetical disclosures: | |||||||||||
Deferred income tax (benefit) expense for unrealized gains on investments arising during the period | 0 | 0 | -265 | ||||||||
Consolidating Adjustments | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Net losses and loss expenses | 0 | 0 | 0 | ||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||
General and administrative expenses | 0 | 0 | 0 | ||||||||
Other expense | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (loss) gain | 0 | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Equity in earnings of consolidated subsidiaries | -1,090,522 | -974,784 | -1,100,978 | ||||||||
NET INCOME | -1,090,522 | -974,784 | -1,100,978 | ||||||||
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | 493 | ||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | 13,991 | ||||||||||
Other comprehensive loss | 0 | 0 | 14,484 | ||||||||
COMPREHENSIVE INCOME (LOSS) | -1,090,522 | -974,784 | -1,086,494 | ||||||||
Allied World Switzerland (Parent Guarantor) | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 50 | 13 | 26 | ||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Net losses and loss expenses | 0 | 0 | 0 | ||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||
General and administrative expenses | -35,596 | -42,122 | -35,258 | ||||||||
Other expense | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Foreign exchange (loss) gain | 20 | 263 | 159 | ||||||||
Income tax (expense) benefit | -89 | 98 | 358 | ||||||||
Equity in earnings of consolidated subsidiaries | 525,874 | 459,628 | 527,722 | ||||||||
NET INCOME | 490,259 | 417,880 | 493,007 | ||||||||
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | -493 | ||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | -13,991 | ||||||||||
Other comprehensive loss | 0 | 0 | -14,484 | ||||||||
COMPREHENSIVE INCOME (LOSS) | 490,259 | 417,880 | 478,523 | ||||||||
Allied World Bermuda (Subsidiary Issuer) | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net premiums earned | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 4 | 20 | ||||||||
Net realized investment gains (losses) | 0 | 0 | 0 | ||||||||
Other income | 0 | 0 | 0 | ||||||||
Net losses and loss expenses | 0 | 0 | 0 | ||||||||
Acquisition costs | 0 | 0 | 0 | ||||||||
General and administrative expenses | -3,088 | -1,320 | -2,973 | ||||||||
Other expense | 0 | 0 | 0 | ||||||||
Amortization of intangible assets | 0 | 0 | 0 | ||||||||
Interest expense | -55,418 | -55,347 | -55,405 | ||||||||
Foreign exchange (loss) gain | 104 | -1,045 | -319 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Equity in earnings of consolidated subsidiaries | 564,648 | 515,156 | 573,256 | ||||||||
NET INCOME | 506,246 | 457,448 | 514,579 | ||||||||
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | 0 | ||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | 0 | ||||||||||
Other comprehensive loss | 0 | 0 | 0 | ||||||||
COMPREHENSIVE INCOME (LOSS) | 506,246 | 457,448 | 514,579 | ||||||||
Other Allied World Subsidiaries | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Net premiums earned | 2,182,758 | 2,005,833 | 1,748,898 | ||||||||
Net investment income | 176,824 | 157,547 | 167,095 | ||||||||
Net realized investment gains (losses) | 88,957 | 59,525 | 306,436 | ||||||||
Other income | 2,064 | 0 | 0 | ||||||||
Net losses and loss expenses | -1,199,190 | -1,123,242 | -1,139,264 | ||||||||
Acquisition costs | -295,122 | -252,673 | -205,722 | ||||||||
General and administrative expenses | -327,052 | -308,843 | -269,090 | ||||||||
Other expense | -8,578 | 0 | 0 | ||||||||
Amortization of intangible assets | -2,533 | -2,533 | -2,533 | ||||||||
Interest expense | -2,337 | -1,163 | 0 | ||||||||
Foreign exchange (loss) gain | -1,081 | -7,237 | -623 | ||||||||
Income tax (expense) benefit | -30,434 | -9,878 | -18,798 | ||||||||
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | ||||||||
NET INCOME | 584,276 | 517,336 | 586,399 | ||||||||
Unrealized losses on investments arising during the year net of applicable deferred income tax benefit 2014: $0; 2013: $0; 2012: $(265) | -493 | ||||||||||
Reclassification adjustment for net realized investment gains included in net income, net of applicable income tax | -13,991 | ||||||||||
Other comprehensive loss | 0 | 0 | -14,484 | ||||||||
COMPREHENSIVE INCOME (LOSS) | $584,276 | $517,336 | $571,915 |
Condensed_Consolidated_Guarant4
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Cash Flow Statements, Captions [Line Items] | |||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $407,790 | $106,109 | $628,856 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | -7,630,034 | -7,527,670 | -8,006,237 |
Purchases of other invested assets | -307,955 | -276,926 | -333,031 |
Sales of available for sale securities | 0 | 0 | 236,978 |
Sales of trading securities | 7,536,936 | 7,540,194 | 7,892,907 |
Sales of other invested assets | 267,885 | 187,477 | 53,741 |
Capital contribution to subsidiary | 0 | ||
Other | 6,201 | 28,782 | -104,091 |
Net cash used in investing activities | -126,967 | -48,143 | -259,733 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Partial par value reduction | 0 | -12,981 | -67,825 |
Dividends paid | -76,750 | -34,059 | 0 |
Intercompany dividends paid | 0 | 0 | 0 |
Proceeds from the exercise of stock options | 10,027 | 12,137 | 10,527 |
Proceeds from other long-term debt | 19,213 | 0 | 0 |
Share repurchases | -175,910 | -173,006 | -263,942 |
Capital contribution from parent | 0 | ||
Net cash used in financing activities | -223,420 | -207,909 | -321,240 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 57,403 | -149,943 | 47,883 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 531,936 | 681,879 | 633,996 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 589,339 | 531,936 | 681,879 |
Consolidating Adjustments | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | -643,250 | -596,500 | -770,000 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | 0 | 0 | 0 |
Purchases of other invested assets | 0 | 0 | 0 |
Sales of available for sale securities | 0 | ||
Sales of trading securities | 0 | 0 | 0 |
Sales of other invested assets | 0 | 0 | 0 |
Capital contribution to subsidiary | 110,000 | ||
Other | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 110,000 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Partial par value reduction | 0 | 0 | |
Dividends paid | 0 | 0 | |
Intercompany dividends paid | 643,250 | 596,500 | 770,000 |
Proceeds from the exercise of stock options | 0 | 0 | 0 |
Proceeds from other long-term debt | 0 | ||
Share repurchases | 0 | 0 | 0 |
Capital contribution from parent | -110,000 | ||
Net cash used in financing activities | 643,250 | 596,500 | 660,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | 0 |
Allied World Switzerland (Parent Guarantor) | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 264,422 | 198,702 | 338,565 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | 0 | 0 | 0 |
Purchases of other invested assets | 0 | 0 | 0 |
Sales of available for sale securities | 0 | ||
Sales of trading securities | 0 | 0 | 0 |
Sales of other invested assets | 0 | 0 | 0 |
Capital contribution to subsidiary | -110,000 | ||
Other | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | -110,000 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Partial par value reduction | -12,981 | -67,825 | |
Dividends paid | -76,750 | -34,059 | |
Intercompany dividends paid | 0 | 0 | 0 |
Proceeds from the exercise of stock options | 10,027 | 12,137 | 10,527 |
Proceeds from other long-term debt | 0 | ||
Share repurchases | -175,910 | -173,006 | -263,942 |
Capital contribution from parent | 0 | ||
Net cash used in financing activities | -242,633 | -207,909 | -321,240 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 21,789 | -9,207 | -92,675 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 10,790 | 19,997 | 112,672 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 32,579 | 10,790 | 19,997 |
Allied World Bermuda (Subsidiary Issuer) | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 292,959 | 265,951 | 357,438 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | 0 | 0 | 0 |
Purchases of other invested assets | 0 | 0 | 0 |
Sales of available for sale securities | 0 | ||
Sales of trading securities | 0 | 0 | 0 |
Sales of other invested assets | 0 | 0 | 0 |
Capital contribution to subsidiary | 0 | ||
Other | 0 | 0 | 0 |
Net cash used in investing activities | 0 | 0 | 0 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Partial par value reduction | 0 | 0 | |
Dividends paid | 0 | 0 | |
Intercompany dividends paid | -294,000 | -274,500 | -355,000 |
Proceeds from the exercise of stock options | 0 | 0 | 0 |
Proceeds from other long-term debt | 0 | ||
Share repurchases | 0 | 0 | 0 |
Capital contribution from parent | 0 | ||
Net cash used in financing activities | -294,000 | -274,500 | -355,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -1,041 | -8,549 | 2,438 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,775 | 11,324 | 8,886 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,734 | 2,775 | 11,324 |
Other Allied World Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 493,659 | 237,956 | 702,853 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | |||
Purchases of trading securities | -7,630,034 | -7,527,670 | -8,006,237 |
Purchases of other invested assets | -307,955 | -276,926 | -333,031 |
Sales of available for sale securities | 236,978 | ||
Sales of trading securities | 7,536,936 | 7,540,194 | 7,892,907 |
Sales of other invested assets | 267,885 | 187,477 | 53,741 |
Capital contribution to subsidiary | 0 | ||
Other | 6,201 | 28,782 | -104,091 |
Net cash used in investing activities | -126,967 | -48,143 | -259,733 |
CASH FLOWS USED IN FINANCING ACTIVITIES: | |||
Partial par value reduction | 0 | 0 | |
Dividends paid | 0 | 0 | |
Intercompany dividends paid | -349,250 | -322,000 | -415,000 |
Proceeds from the exercise of stock options | 0 | 0 | 0 |
Proceeds from other long-term debt | 19,213 | ||
Share repurchases | 0 | 0 | 0 |
Capital contribution from parent | 110,000 | ||
Net cash used in financing activities | -330,037 | -322,000 | -305,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 36,655 | -132,187 | 138,120 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 518,371 | 650,558 | 512,438 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $555,026 | $518,371 | $650,558 |
Condensed_Consolidated_Guarant5
Condensed Consolidated Guarantor Financial Statements (Notes to Consolidated Guarantor Financial Statements) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Financial Statements, Captions [Line Items] | |||
Subsidiary Investee Percentage Ownership | 100.00% | ||
Allied World Switzerland (Parent Guarantor) | |||
Condensed Financial Statements, Captions [Line Items] | |||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $294,000 | $274,500 | $355,000 |
Unaudited_Quarterly_Financial_2
Unaudited Quarterly Financial Data (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
REVENUES: | |||||||||||
Gross premiums written | $565,743 | $707,884 | $760,405 | $901,393 | $555,490 | $580,893 | $765,200 | $837,081 | $2,935,425 | $2,738,664 | $2,329,271 |
Premiums ceded | -137,948 | -139,142 | -206,481 | -129,779 | -164,360 | -127,816 | -183,978 | -142,029 | -613,350 | -618,183 | -491,448 |
Net premiums written | 427,795 | 568,742 | 553,924 | 771,614 | 391,130 | 453,077 | 581,222 | 695,052 | 2,322,075 | 2,120,481 | 1,837,823 |
Change in unearned premiums | 145,694 | -27,005 | -16,677 | -241,329 | 133,431 | 57,696 | -73,951 | -231,824 | -139,317 | -114,648 | -88,925 |
Net premiums earned | 573,489 | 541,737 | 537,247 | 530,285 | 524,561 | 510,773 | 507,271 | 463,228 | 2,182,758 | 2,005,833 | 1,748,898 |
Net investment income | 49,050 | 43,412 | 36,793 | 47,619 | 47,270 | 39,271 | 37,635 | 33,388 | 176,874 | 157,564 | 167,141 |
Net realized investment gains | -15,329 | -35,136 | 85,217 | 54,205 | 67,599 | 27,487 | -115,198 | 79,637 | 88,957 | 59,525 | 306,436 |
Other income | 1,032 | 1,032 | 0 | 0 | 2,064 | 0 | 0 | ||||
Total revenues | 608,242 | 551,045 | 659,257 | 632,109 | 639,430 | 577,531 | 429,708 | 576,253 | 2,450,653 | 2,222,922 | 2,222,475 |
EXPENSES: | |||||||||||
Net losses and loss expenses | 272,959 | 336,090 | 314,855 | 275,286 | 315,966 | 276,970 | 275,128 | 255,178 | 1,199,190 | 1,123,242 | 1,139,264 |
Acquisition costs | 80,718 | 72,403 | 74,279 | 67,722 | 66,257 | 65,114 | 64,617 | 56,685 | 295,122 | 252,673 | 205,722 |
General and administrative expenses | 100,914 | 88,294 | 96,188 | 80,340 | 100,467 | 88,553 | 80,585 | 82,680 | 365,736 | 352,285 | 307,321 |
Other expense | 2,003 | 6,575 | 0 | 0 | 8,578 | 0 | 0 | ||||
Amortization of intangible assets | 633 | 633 | 634 | 633 | 633 | 633 | 634 | 633 | 2,533 | 2,533 | 2,533 |
Interest expense | 14,304 | 14,325 | 14,592 | 14,534 | 14,094 | 14,094 | 14,188 | 14,134 | 57,755 | 56,510 | 55,405 |
Foreign exchange loss | -21 | 278 | 651 | 49 | 658 | 4,353 | 490 | 2,518 | 957 | 8,019 | 783 |
Total expenses | 471,510 | 518,598 | 501,199 | 438,564 | 498,075 | 449,717 | 435,642 | 411,828 | 1,929,871 | 1,795,262 | 1,711,028 |
Income before income taxes | 136,732 | 32,447 | 158,058 | 193,545 | 141,355 | 127,814 | -5,934 | 164,425 | 520,782 | 427,660 | 511,447 |
Income tax expense | 6,223 | 1,532 | 6,195 | 16,573 | 3,448 | 4,971 | -4,072 | 5,433 | 30,523 | 9,780 | 18,440 |
Net income | $130,509 | $30,915 | $151,863 | $176,972 | $137,907 | $122,843 | ($1,862) | $158,992 | $490,259 | $417,880 | $493,007 |
PER SHARE DATA | |||||||||||
Basic earnings (loss) per share | $1.35 | $0.32 | $1.55 | $1.78 | $1.37 | $1.20 | ($0.02) | $1.53 | $5.03 | $4.08 | $4.56 |
Diluted earnings (loss) per share | $1.33 | $0.31 | $1.52 | $1.74 | $1.34 | $1.18 | ($0.02) | $1.50 | $4.92 | $3.98 | $4.43 |
Weighted average common shares outstanding | 96,386,796 | 96,458,231 | 97,809,639 | 99,545,187 | 100,814,955 | 101,974,077 | 103,267,659 | 103,840,818 | 97,538,319 | 102,464,715 | 108,171,435 |
Weighted average common shares and common share equivalents outstanding | 98,394,432 | 98,444,238 | 99,724,802 | 101,584,662 | 103,129,812 | 104,184,579 | 103,267,659 | 106,295,529 | 99,591,773 | 104,865,834 | 111,209,655 |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 0 Months Ended |
Jan. 02, 2015 | |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Dividends declared per share | $0.23 |
Schedule_III_Supplementary_Ins1
Schedule III - Supplementary Insurance Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information, by Segment [Line Items] | |||
Net deferred acquisition costs | $151,546 | $126,661 | $108,010 |
Reserves for losses and loss expenses | 5,881,165 | 5,766,529 | 5,645,549 |
Unearned premiums | 1,555,313 | 1,396,256 | 1,218,021 |
Net premiums earned | 2,182,758 | 2,005,833 | 1,748,898 |
Net investment income | 176,874 | 157,564 | 167,141 |
Losses and loss expenses | 1,199,190 | 1,123,242 | 1,139,264 |
Amortization of deferred acquisition costs | 295,122 | 252,673 | 205,722 |
Other operating costs | 365,736 | 352,285 | 307,321 |
Net premiums written | 2,322,075 | 2,120,481 | 1,837,823 |
North American Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Net deferred acquisition costs | 55,756 | 45,446 | 38,413 |
Reserves for losses and loss expenses | 3,806,621 | 3,701,744 | 3,597,226 |
Unearned premiums | 1,003,151 | 872,628 | 763,743 |
Net premiums earned | 1,111,164 | 1,022,979 | 892,721 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses | 683,836 | 651,267 | 608,762 |
Amortization of deferred acquisition costs | 105,914 | 94,869 | 77,701 |
Other operating costs | 219,665 | 209,042 | 185,231 |
Net premiums written | 1,230,839 | 1,082,441 | 964,199 |
Global Markets Insurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Net deferred acquisition costs | 23,336 | 9,828 | 8,326 |
Reserves for losses and loss expenses | 568,126 | 568,675 | 567,675 |
Unearned premiums | 223,402 | 164,792 | 131,130 |
Net premiums earned | 162,566 | 126,008 | 115,660 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses | 61,057 | 50,395 | 19,536 |
Amortization of deferred acquisition costs | 18,222 | 10,051 | 8,483 |
Other operating costs | 68,106 | 63,164 | 48,365 |
Net premiums written | 187,997 | 145,002 | 125,577 |
Reinsurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Net deferred acquisition costs | 72,454 | 71,387 | 61,271 |
Reserves for losses and loss expenses | 1,506,418 | 1,496,110 | 1,480,648 |
Unearned premiums | 328,760 | 358,836 | 323,148 |
Net premiums earned | 909,028 | 856,846 | 740,517 |
Net investment income | 0 | 0 | 0 |
Losses and loss expenses | 454,297 | 421,580 | 510,966 |
Amortization of deferred acquisition costs | 170,986 | 147,753 | 119,538 |
Other operating costs | 77,965 | 80,079 | 73,725 |
Net premiums written | 903,239 | 893,038 | 748,047 |
Corporate | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Net deferred acquisition costs | 0 | 0 | 0 |
Reserves for losses and loss expenses | 0 | 0 | 0 |
Unearned premiums | 0 | 0 | 0 |
Net premiums earned | 0 | 0 | 0 |
Net investment income | 176,874 | 157,564 | 167,141 |
Losses and loss expenses | 0 | 0 | 0 |
Amortization of deferred acquisition costs | 0 | 0 | 0 |
Other operating costs | 0 | 0 | 0 |
Net premiums written | $0 | $0 | $0 |
Schedule_IV_Supplementary_Rein1
Schedule IV - Supplementary Reinsurance Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | |||||||||||
Gross | $1,996,831 | $1,804,910 | $1,569,021 | ||||||||
Ceded to other companies | 137,948 | 139,142 | 206,481 | 129,779 | 164,360 | 127,816 | 183,978 | 142,029 | 613,350 | 618,183 | 491,448 |
Assumed from other companies | 938,594 | 933,754 | 760,250 | ||||||||
Net amount | 427,795 | 568,742 | 553,924 | 771,614 | 391,130 | 453,077 | 581,222 | 695,052 | 2,322,075 | 2,120,481 | 1,837,823 |
Property and casualty | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment, Net Amount [Abstract] | |||||||||||
Gross | 1,996,831 | 1,804,910 | 1,569,021 | ||||||||
Ceded to other companies | 613,350 | 618,183 | 491,448 | ||||||||
Assumed from other companies | 938,594 | 933,754 | 760,250 | ||||||||
Net amount | $2,322,075 | $2,120,481 | $1,837,823 | ||||||||
Percentage of amount assumed to net | 40.00% | 44.00% | 41.00% |