Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2015 | Oct. 12, 2015 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | Allied World Assurance Co Holdings, AG | |
Entity Central Index Key | 1,163,348 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 90,911,888 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
ASSETS: | ||
Fixed maturity investments trading, at fair value (amortized cost: 2015: $6,555,748; 2014: $6,035,240) | $ 6,546,993 | $ 6,069,010 |
Equity securities trading, at fair value (cost: 2015: $668,061; 2014: $791,206) | 663,390 | 844,163 |
Other invested assets | 969,427 | 955,509 |
Total investments | 8,179,810 | 7,868,682 |
Cash and cash equivalents | 603,810 | 589,339 |
Restricted cash | 159,863 | 80,971 |
Insurance balances receivable | 905,401 | 664,815 |
Funds held | 443,670 | 724,021 |
Prepaid reinsurance | 387,269 | 360,732 |
Reinsurance recoverable | 1,449,832 | 1,340,256 |
Reinsurance recoverable on paid losses | 117,110 | 86,075 |
Accrued investment income | 32,673 | 28,456 |
Net deferred acquisition costs | 201,313 | 151,546 |
Goodwill | 354,781 | 278,258 |
Intangible assets | 130,612 | 46,298 |
Balances receivable on sale of investments | 29,461 | 47,149 |
Net deferred tax assets | 27,268 | 33,615 |
Other assets | 174,706 | 121,350 |
Total assets | 13,197,579 | 12,421,563 |
LIABILITIES: | ||
Reserve for losses and loss expenses | 6,436,579 | 5,881,165 |
Unearned premiums | 1,835,527 | 1,555,313 |
Reinsurance balances payable | 260,225 | 180,060 |
Balances due on purchases of investments | 108,337 | 5,428 |
Senior notes | 799,043 | 798,802 |
Other long-term debt | 23,328 | 19,213 |
Dividends payable | 23,637 | 21,669 |
Accounts payable and accrued liabilities | 155,498 | 181,622 |
Total liabilities | 9,642,174 | 8,643,272 |
SHAREHOLDERS’ EQUITY: | ||
Common shares: 2015 and 2014: par value CHF 4.10 per share (2015: 95,523,230; 2014: 100,775,256 shares issued and 2015: 90,911,888; 2014: 96,195,482 shares outstanding) | 386,702 | 408,020 |
Treasury shares, at cost (2015: 4,611,342; 2014: 4,579,774) | (156,281) | (143,075) |
Accumulated other comprehensive loss | (4,265) | 0 |
Retained earnings | 3,329,249 | 3,513,346 |
Total shareholders’ equity | 3,555,405 | 3,778,291 |
Total liabilities and shareholders’ equity | $ 13,197,579 | $ 12,421,563 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) $ in Thousands | Sep. 30, 2015USD ($)shares | Dec. 31, 2014USD ($)shares |
Fixed maturity investments trading, amortized cost | $ | $ 6,555,748 | $ 6,035,240 |
Equity securities trading - cost | $ | $ 668,061 | $ 791,206 |
Common stock, shares issued | 95,523,230 | 100,775,256 |
Common stock, shares outstanding | 90,911,888 | 96,195,482 |
Treasury stock (shares) | 4,611,342 | 4,579,774 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Statements Of Operations And Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
REVENUES: | ||||
Gross premiums written | $ 754,062 | $ 707,884 | $ 2,460,646 | $ 2,369,682 |
Premiums ceded | (147,070) | (139,142) | (477,457) | (475,402) |
Net premiums written | 606,992 | 568,742 | 1,983,189 | 1,894,280 |
Change in unearned premiums | 43,661 | (27,005) | (117,612) | (285,011) |
Net premiums earned | 650,653 | 541,737 | 1,865,577 | 1,609,269 |
Net investment income | 45,667 | 43,412 | 132,978 | 127,824 |
Net realized investment (losses) gains | (113,626) | (35,136) | (88,783) | 104,286 |
Other income | 735 | 1,032 | 2,513 | 1,032 |
Total revenues | 583,429 | 551,045 | 1,912,285 | 1,842,411 |
EXPENSES: | ||||
Net losses and loss expenses | 416,881 | 336,090 | 1,173,578 | 926,231 |
Acquisition costs | 100,101 | 72,403 | 279,418 | 214,404 |
General and administrative expenses | 105,798 | 88,294 | 311,299 | 264,822 |
Other expense | 1,245 | 6,575 | 4,303 | 6,575 |
Amortization of intangible assets | 2,639 | 633 | 6,091 | 1,900 |
Interest expense | 14,469 | 14,325 | 43,272 | 43,451 |
Foreign exchange (gain) loss | (793) | 278 | 10,369 | 978 |
Total expenses | 640,340 | 518,598 | 1,828,330 | 1,458,361 |
(Loss) income before income taxes | (56,911) | 32,447 | 83,955 | 384,050 |
Income tax (benefit) expense | (5,281) | 1,532 | 1,771 | 24,300 |
NET (LOSS) INCOME | (51,630) | 30,915 | 82,184 | 359,750 |
Other comprehensive loss: foreign currency translation adjustment, net of tax | (993) | 0 | (4,265) | 0 |
COMPREHENSIVE (LOSS) INCOME | $ (52,623) | $ 30,915 | $ 77,919 | $ 359,750 |
PER SHARE DATA | ||||
Basic (loss) earnings per share | $ (0.57) | $ 0.32 | $ 0.88 | $ 3.67 |
Diluted (loss) earnings per share | $ (0.57) | $ 0.31 | $ 0.87 | $ 3.60 |
Weighted average common shares outstanding | 90,882,511 | 96,458,231 | 93,068,088 | 97,926,378 |
Weighted average common shares and common share equivalents outstanding | 90,882,511 | 98,444,238 | 94,724,980 | 99,965,296 |
Dividends paid per share | $ 0.260 | $ 0.225 | $ 0.710 | $ 0.559 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statements Of Shareholders' Equity - USD ($) $ in Thousands | Total | Common shares | Treasury shares | Accumulated Other Comprehensive Loss | Retained earnings |
Balance, at beginning of period at Dec. 31, 2013 | $ 3,519,826 | $ 418,988 | $ (79,992) | $ 3,180,830 | |
Net income | 359,750 | 359,750 | |||
Dividends | (60,017) | (60,017) | |||
Stock compensation | 18,568 | 17,235 | 1,333 | ||
Share repurchases | (164,528) | (164,528) | |||
Shares cancelled | 0 | (10,998) | 92,652 | (81,654) | |
Balance, at end of period at Sep. 30, 2014 | 3,673,599 | 407,990 | (134,633) | 3,400,242 | |
Balance, at beginning of period at Dec. 31, 2014 | 3,778,291 | 408,020 | (143,075) | 3,513,346 | |
Net income | 82,184 | 82,184 | |||
Dividends | (68,751) | (68,751) | |||
Stock compensation | 13,247 | 18,363 | (5,116) | ||
Share repurchases | (245,301) | (245,301) | |||
Shares cancelled | 0 | (21,318) | 213,732 | (192,414) | |
Foreign currency translation adjustment | (4,265) | $ (4,265) | |||
Balance, at end of period at Sep. 30, 2015 | $ 3,555,405 | $ 386,702 | $ (156,281) | $ (4,265) | $ 3,329,249 |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
CASH FLOWS PROVIDED BY OPERATING ACTIVITIES: | ||
Net income | $ 82,184 | $ 359,750 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Net realized gains on sales of investments | (41,185) | (118,640) |
Mark to market adjustments | 112,421 | (5,634) |
Stock compensation expense | 11,805 | 10,822 |
Undistributed loss of equity method investments | 19,244 | 10,452 |
Changes in: | ||
Reserve for losses and loss expenses, net of reinsurance recoverables | 188,835 | 171,229 |
Unearned premiums, net of prepaid reinsurance | 113,380 | 285,012 |
Insurance balances receivable | (123,175) | (256,993) |
Funds held | 280,351 | 226,727 |
Reinsurance balances payable | 40,354 | 30,405 |
Reinsurance recoverable on paid losses | (31,035) | (3,634) |
Net deferred acquisition costs | (10,901) | (45,166) |
Net deferred tax assets | (10,141) | (3,511) |
Accounts payable and accrued liabilities | (39,046) | 4,473 |
Other items, net | (1,705) | 4,441 |
Net cash provided by operating activities | 591,386 | 669,733 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | (3,962,283) | (5,608,594) |
Purchases of other invested assets | (110,851) | (242,227) |
Sales of trading securities | 3,888,416 | 5,500,176 |
Sales of other invested assets | 160,253 | 243,123 |
Purchases of fixed assets | (23,798) | (14,490) |
Change in restricted cash | (78,892) | (29,565) |
Net cash paid for acquisitions | (141,503) | (2,565) |
Net cash used in investing activities | (268,658) | (154,142) |
CASH FLOWS USED IN FINANCING ACTIVITIES: | ||
Dividends paid | (66,784) | (55,064) |
Proceeds from the exercise of stock options | 9,184 | 7,640 |
Share repurchases | (246,443) | (166,207) |
Proceeds from other long-term debt | 4,003 | 0 |
Repayment of other long-term debt | (154) | 0 |
Net cash used in financing activities | (300,194) | (213,631) |
Effect of exchange rate changes on foreign currency cash | (8,063) | (2,626) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,471 | 299,334 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 589,339 | 531,936 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 603,810 | 831,270 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 2,213 | 18,052 |
Cash paid for interest expense | $ 45,750 | $ 45,750 |
General
General | 9 Months Ended |
Sep. 30, 2015 | |
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. References to “$” are to the lawful currency of the United States and to “CHF” are to the lawful currency of Switzerland. 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 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 were renamed the “Global Markets Insurance” segment. The Reinsurance segment remained unchanged. The newly created segments are included in Note 12 and prior periods have been recast to conform to the new presentation. |
Basis of Preparation and Consol
Basis of Preparation and Consolidation | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Preparation and Consolidation | BASIS OF PREPARATION AND CONSOLIDATION These unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature and necessary for a fair presentation of financial position and results of operations as of the end of and for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. 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 all entities meeting consolidation requirements have been included in the unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements, including these notes, should be read in conjunction with the Company’s audited consolidated financial statements, and related notes thereto, included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 . |
New Accounting Pronouncements
New Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | NEW ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“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, among others, insurance contracts accounted for under Accounting Standard Codification 944, Financial Services - Insurance . With the issuance of ASU 2015-14, this standard will be effective on January 1, 2018 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 February 2015, the FASB issued Accounting Standards Update 2015-02, “Amendments to the Consolidation Analysis” (“ASU 2015-02”). ASU 2015-02 amends certain aspects of the consolidation guidance in U.S. GAAP. In particular, it will modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities and also eliminates the presumption that a general partner should consolidate a limited partnership, if certain conditions are met. The new guidance will also affect the consolidation analysis of the Company's interests in VIEs, particularly those that have fee arrangements and related party relationships. ASU 2015-02 is effective on January 1, 2016 and adoption is required retrospectively either through a modified retrospective approach by recording a cumulative-effect adjustment to shareholders' equity as of the beginning of the year of adoption or retrospectively for all comparative periods. The Company has determined that the adoption of ASU 2015-02 will result in several of its limited partnership interests meeting the criteria of being considered VIEs. None of the limited partnership interests that will be considered VIE's will be consolidated as the Company is not considered the primary beneficiary. As a result, the Company does not expect any financial statement impact due to the adoption of ASU 2015-02 other than additional disclosures related to the Company's interests in VIEs. In May 2015, the FASB issued Accounting Standards Update 2015-07, “Fair Value Measurements (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent)” (“ASU 2015-07”). ASU 2015-07 removes the requirement to categorize within the fair value hierarchy investments for which fair value is measured using the net asset value per share practical expedient. The Company has applied the net asset value per share practical expedient to all of its private equity and hedge funds in determining fair value. The Company early adopted ASU 2015-07 during the quarter ended June 30, 2015, and as a result removed the fair value category for its investments that are measured using the net asset value per share practical expedient that is disclosed in Note 7. In May 2015, the FASB issued Accounting Standards Update 2015-09, “Financial Services - Insurance (Topic 944): Disclosures about Short-Duration Contracts” (“ASU 2015-09”). ASU 2015-09 provides enhanced disclosures, on an annual basis, related to the reserve for losses and loss expenses. The enhanced disclosures required by ASU 2015-09 include (1) net incurred and paid claims development information by accident year, (2) a reconciliation of incurred and paid claims development information to the aggregate carrying amount of the reserve for losses and loss expenses, (3) for each accident year presented of incurred claims development information, the total of reserves for incurred but not reported (IBNR), including expected development on reported claims, included in the reserve for losses and loss expenses and a description of the reserving methodologies and changes to the reserving methodologies, and (4) for each accident year presented of incurred claims development information, quantitative information about claims frequency, as well as a description of methodologies used for determining claim frequency information. ASU 2015-09 is effective for annual periods beginning after December 15, 2015, and as such the disclosures will first be presented in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. The Company is currently assessing the impact the adoption of ASU 2015-09 will have on future disclosures. In September 2015, the FASB issued Accounting Standards Update 2015-16, “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments” (“ASU 2015-16”). ASU 2015-16 requires an acquirer in a business combination to recognize adjustments to the provisional amounts identified during the measurement period in the reporting period in which the adjustment amounts are determined. The acquirer is also required to either present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amounts recorded in the current-period earnings by line item that would have been recorded in previous periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. Under current U.S. GAAP, the acquirer is required to retrospectively adjust provisional amounts recognized at the acquisition date with a corresponding adjustment to goodwill. ASU 2015-16 is effective for annual periods beginning after December 31, 2015, with early application permitted, and shall apply to adjustments to provisional amounts that occur after the effective date. The Company is currently assessing the impact the adoption of ASU 2014-09 will have on future financial statements and related disclosures. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS a) Hong Kong and Singapore Branches of Royal & Sun Alliance Insurance plc On April 1, 2015, the Company completed its acquisitions of certain assets and assumed certain liabilities of the Hong Kong and Singapore operations of Royal & Sun Alliance Insurance plc (“RSA”) to further expand its international insurance operations. The assets acquired and liabilities assumed constituted a business, and as such the Company accounted for the acquisitions of the RSA branches under the acquisition method in accordance with U.S. GAAP. The initial cash consideration for the branches was $193,889 . There were post-closing adjustments based on the net asset value of the acquired branches at the date of acquisitions that resulted in a decrease in the initial consideration of $31,160 . The post-closing adjustments are still being agreed upon with RSA and as such the assets acquired and liabilities assumed are still preliminary and will be adjusted during the measurement period. In addition, completion of the valuation of the assets acquired and liabilities assumed is currently in process and will be finalized during the measurement period. To date, the Company has incurred a total of $8,948 in acquisition related expenses, mostly related to advisory, legal and valuation services rendered, which were recorded in “other expense” in the unaudited condensed consolidated statements of operations and comprehensive income (“consolidated income statements”). The following table summarizes the consideration paid for the Hong Kong and Singapore branches of RSA and the preliminary amounts of the assets acquired and liabilities assumed at the acquisition date. Consideration: Fair Value Cash for initial consideration $ 193,889 Receivable for post-closing adjustments (31,160 ) Fair value of consideration transferred 162,729 Recognized amounts of identifiable assets acquired and liabilities assumed: Fixed maturity investments 245,997 Cash and cash equivalents 46,853 Insurance balances receivable 113,922 Prepaid reinsurance 17,491 Reinsurance recoverable 57,350 Value of business acquired 37,104 Intangible assets 90,600 Other assets 10,041 Reserve for losses and loss expenses (310,198 ) Unearned premiums (150,530 ) Reinsurance balances payable (35,734 ) Net deferred tax liabilities (16,488 ) Accounts payable and accrued liabilities (19,918 ) Total identifiable net assets acquired 86,490 Goodwill 76,239 Total net assets acquired $ 162,729 Of the $76,239 of goodwill acquired, $52,427 and $23,812 related to the Singapore and Hong Kong branches, respectively. All of the goodwill has been allocated to the Global Markets Insurance segment as all of the results of the international insurance operations are included in that segment and the expected synergies from these acquisitions are to be realized in that segment. The Company recognized identifiable finite lived intangible assets, including an intangible asset for the value of businesses acquired (“VOBA”), which will be amortized over a weighted average period of 12 years . The following is a breakdown of the intangible assets acquired. Singapore Branch Estimated Useful Life Hong Kong Branch Estimated Useful Life Total VOBA $ 19,845 2 years $ 17,259 1.5 years $ 37,104 Customer renewals 8,600 4 years 6,800 7 years 15,400 Distribution channels 48,500 18 years 26,700 18 years 75,200 $ 76,945 $ 50,759 $ 127,704 The following is an explanation of identifiable finite lived intangible assets acquired: • VOBA: Represents the difference between the expected future losses and expenses and the associated unearned premium reserve. This intangible asset will be amortized consistent with how the associated unearned premiums will be earned and will be recorded in “acquisition costs” in the consolidated income statements. • Customer renewals: The value of inforce policies renewing taking into consideration the net cash flows generated from these renewals. The amortization expense for this intangible asset will be recorded in “amortization of intangible assets” in the consolidated income statements. • Distribution channels: The value of access to contractual and non-contractual relationships (e.g., brokers and affinity relationships) taking into consideration the net cash flows generated from these relationships. The amortization expense for this intangible asset will be recorded in “amortization of intangible assets” in the consolidated income statements. The following summarizes the results of the Hong Kong and Singapore branches that have been included in the Company’s consolidated income statement since the acquisitions closed on April 1, 2015. From April 1, 2015 to September 30, 2015 Total revenue $ 103,265 Net loss $ (14,788 ) The following unaudited pro forma information presents the combined results of the Company and the acquired Hong Kong and Singapore RSA branches for the nine months ended September 30, 2015 and 2014, with pro forma adjustments related to the acquisition method of accounting as if the acquisitions had been consummated as of January 1, 2014, which is the beginning of the earliest period presented. This unaudited pro forma information is not necessarily indicative of what would have occurred had the acquisitions and related transactions been made on the dates indicated, or of future results of the Company. Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Total revenue $ 1,960,185 $ 2,010,308 Net income $ 70,633 $ 362,143 b) Acquisition of Labuan branch of RSA On April 30, 2015, the Company also acquired the assets and assumed the liabilities of the Labuan operations of RSA for consideration of one British pound sterling. The Company recorded goodwill of $1,396 related to this acquisition. The goodwill has been allocated to the Global Markets Insurance segment. c) Acquisition of Latin American Underwriters Holdings, Ltd. In January 2015, the Company acquired Latin American Underwriters Holdings Ltd. (“LAU”) for cash consideration of $5,105 . LAU had previously underwritten trade credit insurance and political risk coverages solely for the Company since 2010. As part of the acquisition, the Company recorded goodwill of $2,467 and customer relationship intangibles of $3,610 , which have a five -year useful life. The goodwill has been allocated to the Global Markets Insurance segment. The Company also recorded $1,000 of contingent consideration related to certain earn-out payments. During the three months ended September 30, 2015, it was determined that LAU will not achieve any of the earn-out payments. As a result, the Company reduced the fair value of the contingent consideration to zero with the corresponding gain recorded as a reduction in “general and administrative expenses” in the consolidated income statements. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 December 31, 2014 Fair Value Amortized Cost Fair Value Amortized Cost U.S. government and government agencies $ 1,287,749 $ 1,283,085 $ 1,610,502 $ 1,610,880 Non-U.S. government and government agencies 427,096 449,572 188,199 196,332 States, municipalities and political subdivisions 422,007 410,052 170,567 165,615 Corporate debt: Financial institutions 1,052,636 1,049,451 1,024,667 1,018,777 Industrials 1,256,975 1,276,413 1,029,729 1,037,820 Utilities 118,167 120,856 110,997 111,599 Mortgage-backed 1,302,678 1,273,349 1,263,517 1,219,712 Asset-backed 679,685 692,970 670,832 674,505 Total fixed maturity investments $ 6,546,993 $ 6,555,748 $ 6,069,010 $ 6,035,240 September 30, 2015 December 31, 2014 Fair Value Original Cost Fair Value Original Cost Equity securities $ 663,390 $ 668,061 $ 844,163 $ 791,206 Other invested assets 845,167 762,792 812,543 725,069 $ 1,508,557 $ 1,430,853 $ 1,656,706 $ 1,516,275 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 5(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 September 30, 2015 and December 31, 2014 were as follows: Investment Type Carrying Value as of September 30, 2015 Investments Estimated Investments Redemption (1) Redemption (1) Unfunded Private equity $ 221,862 $ 221,862 2 - 8 Years $ — $ 251,874 Mezzanine debt 194,512 194,512 5 - 9 Years — 166,476 Distressed 5,845 5,845 3 Years — 5,591 Real estate — — 9 Years — 200,000 Total private equity 422,219 422,219 — 623,941 Distressed 216,993 47,775 2 Years 169,218 Monthly 60 Days — Equity long/short 58,655 — 58,655 Quarterly 45 Days — Relative value credit 119,100 — 119,100 Quarterly 60 Days — Total hedge funds 394,748 47,775 346,973 — High yield loan fund 28,200 — 28,200 Monthly 30 Days — Total other invested assets at fair value 845,167 469,994 375,173 623,941 Other private securities 124,260 — 124,260 — Total other invested assets $ 969,427 $ 469,994 $ 499,433 $ 623,941 Investment Type Carrying Value as of December 31, 2014 Investments Estimated Investments Redemption (1) Redemption (1) Unfunded Private equity $ 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 (1) The redemption frequency and notice periods only apply to the investments without redemption restrictions. Some or all of these investments may be subject to a gate as described below. 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 describes each investment type: • Private equity funds: Primary funds may invest in companies and general partnership interests. Secondary 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, and lend to 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, opportunistic or real estate debt 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. • 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. • 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. • High yield loan fund: A long-only private mutual fund that invests in high yield fixed income securities. • Other private securities: These securities include strategic non-controlling minority investments in private asset management companies and other insurance related investments that are accounted for using the equity method of accounting. c) Net Investment Income Three Months Ended Nine Months Ended 2015 2014 2015 2014 Fixed maturity investments $ 42,801 $ 38,762 $ 120,264 $ 110,998 Equity securities 3,115 3,711 11,540 12,876 Other invested assets: hedge funds and private equity 3,342 2,249 16,305 8,767 Other invested assets: other private securities 1,804 3,292 (1,119 ) 7,291 Cash and cash equivalents 277 552 1,178 1,562 Expenses (5,672 ) (5,154 ) (15,190 ) (13,670 ) Net investment income $ 45,667 $ 43,412 $ 132,978 $ 127,824 The loss from other invested assets: other private securities for the nine months ended September 30, 2015 included an other-than-temporary impairment of $6,261 related to one of the Company's equity method investments. The Company recorded the other-than-temporary impairment as the fair value of this investment was below its carrying value. d) Components of Realized Gains and Losses Three Months Ended Nine Months Ended 2015 2014 2015 2014 Gross realized gains on sale of invested assets $ 18,694 $ 28,773 $ 100,060 $ 146,780 Gross realized losses on sale of invested assets (34,735 ) (9,955 ) (57,798 ) (26,228 ) Net realized and unrealized (losses) gains on derivatives (19,905 ) 2,171 (17,616 ) (24,469 ) Mark-to-market (losses) gains: Fixed maturity investments, trading (15,270 ) (40,843 ) (42,441 ) 18,039 Equity securities, trading (62,853 ) (8,479 ) (57,761 ) (8,768 ) Other invested assets, trading 443 (6,803 ) (13,227 ) (1,068 ) Net realized investment (losses) gains $ (113,626 ) $ (35,136 ) $ (88,783 ) $ 104,286 e) Pledged Assets As of September 30, 2015 and December 31, 2014 , $2,975,115 and $3,585,792 , 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, insurance laws and other contract provisions. In addition, as of September 30, 2015 and December 31, 2014 , a further $570,363 and $571,750 , respectively, of cash and cash equivalents and investments were pledged as collateral for the Company’s letter of credit facilities. See Note 10(f) to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014 for details on the Company’s credit facilities. |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | DERIVATIVE INSTRUMENTS As of September 30, 2015 and December 31, 2014 , 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 unaudited condensed consolidated balance sheets (“consolidated balance sheets”): September 30, 2015 December 31, 2014 Asset Derivative Notional Amount Asset Derivative Fair Value Liability Derivative Notional Amount Liability Derivative Fair Value Asset Derivative Notional Amount Asset Derivative Fair Value Liability Derivative Notional Amount Liability Derivative Fair Value Foreign exchange contracts $ 4,331 $ 28 $ 890 $ 9 $ 33,875 $ 1,274 $ 167,376 $ 991 Interest rate swaps 547,000 330 — — — — 571,500 683 Total derivatives $ 551,331 $ 358 $ 890 $ 9 $ 33,875 $ 1,274 $ 738,876 $ 1,674 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 gains (losses) on derivatives not designated as hedges recorded on the consolidated income statements: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Foreign exchange contracts $ 183 $ 1,886 $ (5,975 ) $ (580 ) Total included in foreign exchange loss 183 1,886 (5,975 ) (580 ) Foreign exchange contracts 134 1,701 928 857 Interest rate futures and swaps (20,039 ) 470 (18,544 ) (25,326 ) Total included in net realized investment gains (losses) (19,905 ) 2,171 (17,616 ) (24,469 ) Total realized and unrealized gains (losses) on derivatives $ (19,722 ) $ 4,057 $ (23,591 ) $ (25,049 ) 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 un-matched foreign currency exposures, specifically forward contracts and currency options. 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 its equity portfolio. |
Fair Value Of Financial Instrum
Fair Value Of Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 ASSETS: Fixed maturity investments: U.S. government and government agencies $ 1,287,748 $ 1,287,748 $ 1,225,745 $ 62,003 $ — Non-U.S. government and government agencies 427,096 427,096 — 427,096 — States, municipalities and political subdivisions 422,007 422,007 — 422,007 — Corporate debt 2,427,779 2,427,779 — 2,427,779 — Mortgage-backed 1,302,678 1,302,678 — 1,199,013 103,665 Asset-backed 679,685 679,685 — 622,131 57,554 Total fixed maturity investments 6,546,993 6,546,993 1,225,745 5,160,029 161,219 Equity securities 663,390 663,390 636,576 — 26,814 Other invested assets (1) 845,167 845,167 — — — Total investments $ 8,055,550 $ 8,055,550 $ 1,862,321 $ 5,160,029 $ 188,033 Derivative assets: Foreign exchange contracts $ 28 $ 28 $ — $ 28 $ — Interest rate swaps 330 330 — 330 — LIABILITIES: Derivative liabilities: Foreign exchange contracts $ 9 $ 9 $ — $ 9 $ — Senior notes $ 799,043 $ 859,307 $ — $ 859,307 $ — Other long-term debt $ 23,328 $ 28,112 $ — $ 28,112 $ — December 31, 2014 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 ASSETS: 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 (1) 812,543 812,543 — — — Total investments $ 7,725,716 $ 7,725,716 $ 2,300,180 $ 4,332,467 $ 280,526 Derivative assets: Foreign exchange contracts $ 1,274 $ 1,274 $ — $ 1,274 $ — LIABILITIES: 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 $ — (1) In accordance with U.S. GAAP, other invested assets, excluding other private securities, are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. 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 values 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 bonds 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 the 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 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. Non-U.S. mutual funds where the net asset value 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 net asset value of the funds as reported by the fund manager. Derivative instruments: The fair value of foreign exchange contracts, interest rate futures and interest rate 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 other 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 discounted expected future cash flow and market multiple models. 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. If the Company determines that goodwill and 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 reconciliation of the beginning and ending balance of financial instruments using significant unobservable inputs (Level 3): Three Months Ended September 30, 2015 Mortgage-backed Asset-backed Equities Opening balance $ 99,637 $ 83,908 $ 57,807 Realized and unrealized gains (losses) included in net (loss) income 808 (2,547 ) (10,993 ) Purchases 9,666 122 — Sales (9,390 ) (7,892 ) (20,000 ) Transfers into Level 3 from Level 2 3,126 627 — Transfers out of Level 3 into Level 2 (1) (182 ) (16,664 ) — Ending balance $ 103,665 $ 57,554 $ 26,814 Three Months Ended September 30, 2014 Opening balance $ 146,801 $ 71,232 $ 34,863 Realized and unrealized gains (losses) included in net (loss) income (882 ) (253 ) 3,172 Purchases 16,311 18,021 — Sales (28,761 ) (9,970 ) — Transfers into Level 3 from Level 2 1,628 17,863 — Transfers out of Level 3 into Level 2 (1) (15,189 ) (5,523 ) — Ending balance $ 119,908 $ 91,370 $ 38,035 Nine Months Ended September 30, 2015 Mortgage-backed Asset-backed Equities Opening balance $ 181,783 $ 55,413 $ 43,330 Realized and unrealized gains (losses) included in net (loss) income 27 (2,960 ) 3,484 Purchases 16,657 7,011 — Sales (94,802 ) (20,160 ) (20,000 ) Transfers into Level 3 from Level 2 — 41,234 — Transfers out of Level 3 into Level 2 (1) — (22,984 ) — Ending balance $ 103,665 $ 57,554 $ 26,814 Nine Months Ended September 30, 2014 Opening balance $ 147,338 $ 93,413 $ 73,904 Realized and unrealized gains (losses) included in net (loss) income 3,654 (659 ) (6,572 ) Purchases 34,187 35,526 — Sales (65,038 ) (19,871 ) (29,297 ) Transfers into Level 3 from Level 2 1,253 13,923 — Transfers out of Level 3 into Level 2 (1) (1,486 ) (30,962 ) — Ending balance $ 119,908 $ 91,370 $ 38,035 (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, then 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 Company uses a pricing service ranking to consistently select the most appropriate pricing service in instances where it receives multiple quotes on the same security. The Company obtains multiple quotes for the majority of its securities. 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 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 Exp
Reserve For Losses And Loss Expenses | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, December 31, Outstanding loss reserves $ 1,707,409 $ 1,514,051 Reserves for losses incurred but not reported 4,729,170 4,367,114 Reserve for losses and loss expenses $ 6,436,579 $ 5,881,165 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. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Gross liability at beginning of period $ 6,363,948 $ 5,935,678 $ 5,881,165 $ 5,766,529 Reinsurance recoverable at beginning of period (1,433,109 ) (1,301,742 ) (1,340,256 ) (1,234,504 ) Net liability at beginning of period 4,930,839 4,633,936 4,540,909 4,532,025 Acquisition of net reserves for losses and loss expenses — — 256,991 — Net losses incurred related to: Current year 425,473 382,970 1,267,649 1,067,111 Prior years (8,591 ) (46,880 ) (94,071 ) (140,880 ) Total incurred 416,882 336,090 1,173,578 926,231 Net paid losses related to: Current year 60,828 53,596 95,388 80,401 Prior years 287,840 202,626 866,770 666,555 Total paid 348,668 256,222 962,158 746,956 Foreign exchange revaluation (12,306 ) (10,550 ) (22,573 ) (8,046 ) Net liability at end of period 4,986,747 4,703,254 4,986,747 4,703,254 Reinsurance recoverable at end of period 1,449,832 1,349,009 1,449,832 1,349,009 Gross liability at end of period $ 6,436,579 $ 6,052,263 $ 6,436,579 $ 6,052,263 The net reserve for losses and loss expenses acquired of $256,991 represents the net reserves acquired from the Hong Kong and Singapore branches of RSA of $252,848 and the net reserves from the Labuan branch of RSA of $4,143 . For the three months ended September 30, 2015 , the Company recognized net favorable prior year reserve development primarily due to lower than expected loss emergence across each of its segments . The net favorable prior year reserve development for the North American Insurance segment primarily related to net favorable prior year reserve development in the professional liability line of business, partially offset by unfavorable prior year development in the casualty line of business from the 2012 to 2014 loss years. The net favorable reserve development in the Global Markets Insurance segment was primarily due to net favorable loss reserve development in the professional liability line of business, partially offset by unfavorable prior year reserve development in the specialty and other line of business from the 2013 loss year. T he net favorable reserve development in the Reinsurance segment was primarily related to the property and casualty reinsurance lines of business. For the three months ended September 30, 2014, the Company recognized net favorable prior year reserve development in each of its segments. The net favorable prior year reserve development for the North American Insurance segment primarily related to net favorable prior year reserve development in the professional liability, casualty and programs lines of business, partially offset by unfavorable prior year development in the healthcare line of business mainly from the 2011 to 2013 loss years. The net favorable reserve development in the Global Markets Insurance segment was primarily due to net favorable loss reserve development in the professional liability and general casualty lines of business. T he net favorable reserve development in the Reinsurance segment was primarily due to lower than expected loss activity in the property reinsurance line of business for the 2013 loss year. For the nine months ended September 30, 2015, the Company recognized net favorable prior year reserve development primarily due to lower than expected loss emergence across each of its segments . The net favorable prior year reserve development for the North American Insurance segment primarily related to net favorable prior year reserve development in the professional liability, programs and property lines of business, partially offset by unfavorable prior year development in the healthcare and casualty lines of business mainly from the 2012 and 2013 loss years. The net favorable reserve development in the Global Markets Insurance segment was primarily due to net favorable loss reserve development in the property, professional liability and casualty lines of business, partially offset by unfavorable prior year reserve development in the specialty and other line of business from the 2013 loss year. T he net favorable reserve development in the Reinsurance segment was primarily related to the property and casualty reinsurance lines of business. For the nine months ended September 30, 2014, the Company recognized net favorable prior year reserve development in each of its segments. The net favorable prior year reserve development for the North American Insurance segment primarily related to net favorable prior year reserve development in the professional liability, programs and general property lines of business, partially offset by unfavorable prior year development in the healthcare and general casualty lines of business. The net favorable prior year reserve development in the Global Markets Insurance segment was primarily due to net favorable reserve development in the professional liability, general casualty and general property lines of business. T he net favorable reserve development in the Reinsurance segment was primarily due to lower than expected loss activity in the property reinsurance line of business for the 2013 loss year. While the Company at times has experienced favorable reserve 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. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2015 | |
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 a resident of the Canton of Zug and, as such, is subject to an annual cantonal and communal capital tax on its taxable equity. One of Allied World Switzerland's subsidiaries is a Swiss operating company, which is a 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 Assurance Company Holdings, Ltd (“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 and the United Kingdom. The U.S. Internal Revenue Service is currently conducting 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 income tax 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 September 30, 2015 . |
Shareholders' Equity
Shareholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY a) Authorized shares The issued share capital consists of the following: September 30, December 31, Common shares issued and fully paid, 2015 and 2014: CHF 4.10 per share 95,523,230 100,775,256 Share capital at end of period $ 386,702 $ 408,020 Nine Months Ended September 30, 2015 Shares issued at beginning of period 100,775,256 Shares canceled (5,252,026 ) Total shares issued at end of period 95,523,230 Treasury shares issued at beginning of period 4,579,774 Shares repurchased 6,047,437 Shares issued out of treasury (763,843 ) Shares canceled (5,252,026 ) Total treasury shares at end of period 4,611,342 Total shares outstanding at end of period 90,911,888 During the nine months ended September 30, 2015 , 5,252,026 shares repurchased and designated for cancellation were constructively retired and canceled. b) Dividends The Company paid the following dividends during the nine months ended September 30, 2015 : Dividend Paid Dividend Per Share Total Amount Paid January 2, 2015 $ 0.225 $ 21,669 April 2, 2015 $ 0.225 $ 21,528 July 2, 2015 $ 0.260 $ 23,606 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 was paid to shareholders in quarterly dividends of $0.225 per share. The four installments of the dividend were distributed on July 2, 2014, October 2, 2014, January 2, 2015 and April 2, 2015. On April 30, 2015, 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 installments of $0.26 per share. The first installment of the dividend was distributed on July 2, 2015 and the second installment was distributed on October 1, 2015. The Company expects to distribute the remaining installments of the dividend in January 2016 and April 2016. c) Share Repurchases On May 1, 2014, the shareholders approved a share repurchase program (the “2014 share repurchase program”) in order for the Company to repurchase up to $500,000 of its common shares. 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 the 2014 share repurchase program, the first three million of common shares repurchased will remain in treasury and will be used by the Company 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. The Company’s share repurchases were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Common shares repurchased — 654,851 6,047,437 4,616,543 Total cost of shares repurchased $ — $ 24,996 $ 245,301 $ 164,528 Average price per share $ — $ 38.17 $ 40.56 $ 35.64 No common shares were repurchased during the three months ended September 30, 2015. On May 6, 2015, the Company repurchased 4,053,537 shares from Exor S.A. at a repurchase price of $40.546 per share, for an aggregate purchase price of $164,355 . The repurchase was executed under the 2014 share repurchase program. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE The following table sets forth the comparison of basic and diluted (loss) earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic (loss) earnings per share: Net (loss) income $ (51,630 ) $ 30,915 $ 82,184 $ 359,750 Weighted average common shares outstanding 90,882,511 96,458,231 93,068,088 97,926,378 Basic (loss) earnings per share $ (0.57 ) $ 0.32 $ 0.88 $ 3.67 Three Months Ended Nine Months Ended 2015 2014 2015 2014 Diluted (loss) earnings per share: Net (loss) income $ (51,630 ) $ 30,915 $ 82,184 $ 359,750 Weighted average common shares outstanding 90,882,511 96,458,231 93,068,088 97,926,378 Share equivalents: Stock options — 1,430,243 1,071,569 1,449,641 RSUs and performance-based equity awards — 541,711 569,276 575,675 Employee share purchase plan — 14,053 16,047 13,602 Weighted average common shares and common share equivalents outstanding - diluted 90,882,511 98,444,238 94,724,980 99,965,296 Diluted (loss) earnings per share $ (0.57 ) $ 0.31 $ 0.87 $ 3.60 For the three months ended September 30, 2015, there were no common share equivalents included in calculating diluted earnings per share as there was a net loss and any additional shares would be anti-dilutive. For the three months ended September 30, 2014 and the nine months ended September 30, 2015 and 2014 , there were no common shares considered anti-dilutive and therefore excluded from the calculation of the diluted earnings per share. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION The determination of reportable segments is based on how senior management 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 types of account written. The Company is currently organized into three operating segments: North American Insurance, Global Markets Insurance and Reinsurance. All lines of business fall within these classifications. The North American Insurance segment includes the Company’s specialty insurance operations in the United States, Bermuda and Canada, as well as the Company's claim administration services operations. This segment provides both property and specialty casualty insurance primarily to North American domiciled accounts. The Global Markets Insurance segment includes the Company’s specialty insurance operations in Europe and Asia Pacific, which includes offices in Australia, Hong Kong, Labuan, Singapore and Lloyd's coverholder operation in Miami, which services business from Latin America and the Caribbean. This segment provides both 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 income or loss as underwriting income or loss plus other insurance-related income and expenses, which may include the net earnings from the claims administration services operation and other income or expense that is not directly related to our underwriting operations. Management measures results for each segment's underwriting income 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: Three Months Ended September 30, 2015 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 460,386 $ 132,664 $ 161,012 $ 754,062 Net premiums written 350,791 104,075 152,126 606,992 Net premiums earned 332,722 110,327 207,604 650,653 Net losses and loss expenses (222,250 ) (70,935 ) (123,696 ) (416,881 ) Acquisition costs (35,585 ) (22,731 ) (41,785 ) (100,101 ) General and administrative expenses (58,301 ) (29,344 ) (18,153 ) (105,798 ) Underwriting income (loss) 16,586 (12,683 ) 23,970 27,873 Other insurance-related income 735 — — 735 Other insurance-related expenses (631 ) (614 ) — (1,245 ) Segment income (loss) $ 16,690 $ (13,297 ) $ 23,970 $ 27,363 Net investment income 45,667 Net realized investment losses (113,626 ) Amortization of intangible assets (2,639 ) Interest expense (14,469 ) Foreign exchange gain 793 Loss before income taxes $ (56,911 ) Loss and loss expense ratio 66.8 % 64.3 % 59.6 % 64.1 % Acquisition cost ratio 10.7 % 20.6 % 20.1 % 15.4 % General and administrative expense ratio 17.5 % 26.6 % 8.7 % 16.3 % Expense ratio 28.2 % 47.2 % 28.8 % 31.7 % Combined ratio 95.0 % 111.5 % 88.4 % 95.8 % Three Months Ended September 30, 2014 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 466,792 $ 64,125 $ 176,967 $ 707,884 Net premiums written 364,739 44,794 159,209 568,742 Net premiums earned 277,203 41,574 222,960 541,737 Net losses and loss expenses (180,682 ) (28,142 ) (127,266 ) (336,090 ) Acquisition costs (27,027 ) (5,313 ) (40,063 ) (72,403 ) General and administrative expenses (52,921 ) (16,802 ) (18,571 ) (88,294 ) Underwriting income (loss) 16,573 (8,683 ) 37,060 44,950 Other insurance-related income 1,032 — — 1,032 Other insurance-related expenses (1,270 ) (5,305 ) — (6,575 ) Segment income (loss) $ 16,335 $ (13,988 ) $ 37,060 $ 39,407 Net investment income 43,412 Net realized investment losses (35,136 ) Amortization of intangible assets (633 ) Interest expense (14,325 ) Foreign exchange loss (278 ) Income before income taxes $ 32,447 Loss and loss expense ratio 65.2 % 67.7 % 57.1 % 62.0 % Acquisition cost ratio 9.7 % 12.8 % 18.0 % 13.4 % General and administrative expense ratio 19.1 % 40.4 % 8.3 % 16.3 % Expense ratio 28.8 % 53.2 % 26.3 % 29.7 % Combined ratio 94.0 % 120.9 % 83.4 % 91.7 % Nine Months Ended September 30, 2015 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 1,358,636 $ 328,223 $ 773,787 $ 2,460,646 Net premiums written 1,019,866 216,230 747,093 1,983,189 Net premiums earned 974,232 262,993 628,352 1,865,577 Net losses and loss expenses (655,475 ) (157,200 ) (360,903 ) (1,173,578 ) Acquisition costs (100,818 ) (54,076 ) (124,524 ) (279,418 ) General and administrative expenses (175,732 ) (78,093 ) (57,474 ) (311,299 ) Underwriting income (loss) 42,207 (26,376 ) 85,451 101,282 Other insurance-related income 2,513 — — 2,513 Other insurance-related expenses (2,076 ) (2,227 ) — (4,303 ) Segment income (loss) $ 42,644 $ (28,603 ) $ 85,451 $ 99,492 Net investment income 132,978 Net realized investment losses (88,783 ) Amortization of intangible assets (6,091 ) Interest expense (43,272 ) Foreign exchange loss (10,369 ) Income before income taxes $ 83,955 Loss and loss expense ratio 67.3 % 59.8 % 57.4 % 62.9 % Acquisition cost ratio 10.3 % 20.6 % 19.8 % 15.0 % General and administrative expense ratio 18.0 % 29.7 % 9.1 % 16.7 % Expense ratio 28.3 % 50.3 % 28.9 % 31.7 % Combined ratio 95.6 % 110.1 % 86.3 % 94.6 % Nine Months Ended September 30, 2014 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 1,285,044 $ 196,086 $ 888,552 $ 2,369,682 Net premiums written 905,279 126,574 862,427 1,894,280 Net premiums earned 808,453 114,584 686,232 1,609,269 Net losses and loss expenses (520,586 ) (35,204 ) (370,441 ) (926,231 ) Acquisition costs (76,531 ) (12,615 ) (125,258 ) (214,404 ) General and administrative expenses (159,063 ) (48,861 ) (56,898 ) (264,822 ) Underwriting income 52,273 17,904 133,635 203,812 Other insurance-related income 1,032 — — 1,032 Other insurance-related expenses (1,270 ) (5,305 ) — (6,575 ) Segment income $ 52,035 $ 12,599 $ 133,635 $ 198,269 Net investment income 127,824 Net realized investment gains 104,286 Amortization of intangible assets (1,900 ) Interest expense (43,451 ) Foreign exchange loss (978 ) Income before income taxes $ 384,050 Loss and loss expense ratio 64.4 % 30.7 % 54.0 % 57.6 % Acquisition cost ratio 9.5 % 11.0 % 18.3 % 13.3 % General and administrative expense ratio 19.7 % 42.6 % 8.3 % 16.5 % Expense ratio 29.2 % 53.6 % 26.6 % 29.8 % Combined ratio 93.6 % 84.3 % 80.6 % 87.4 % The following table shows an analysis of the Company’s gross premiums written by geographic location of the Company’s subsidiaries and branches. All intercompany premiums have been eliminated. Three Months Ended Nine Months Ended 2015 2014 2015 2014 United States $ 489,562 $ 483,992 $ 1,509,314 $ 1,447,652 Asia Pacific 106,039 45,070 239,323 142,798 Bermuda 84,486 109,503 448,988 525,005 Europe 70,814 64,947 251,042 245,931 Canada 3,161 4,372 11,979 8,296 Total gross premiums written $ 754,062 $ 707,884 $ 2,460,646 $ 2,369,682 Europe includes gross premiums written attributable to Switzerland of $12,209 and $11,130 for the three months ended September 30, 2015 and 2014 , respectively, and $56,876 and $65,684 for the nine months ended September 30, 2015 and 2014 , respectively. The following table shows the Company's net premiums earned by line of business for each segment for each of the periods indicated. Three Months Ended Nine Months Ended 2015 2014 2015 2014 North American Insurance: Casualty $ 112,093 $ 86,114 $ 326,236 $ 240,981 Professional liability 87,678 68,512 251,005 197,042 Property 39,333 42,457 123,201 127,402 Programs 38,306 28,933 109,163 88,109 Healthcare 35,322 40,775 111,759 126,591 Specialty and other 19,990 10,412 52,868 28,328 Total 332,722 277,203 974,232 808,453 Global Markets Insurance: Casualty 32,033 4,396 68,979 10,298 Specialty and other 29,952 11,915 69,886 31,935 Professional liability 27,719 17,001 76,976 47,091 Property 20,623 8,262 47,152 25,260 Total 110,327 41,574 262,993 114,584 Reinsurance: Property 102,329 113,560 311,498 379,575 Casualty 58,170 65,915 173,953 163,591 Specialty 47,105 43,485 142,901 143,066 Total 207,604 222,960 628,352 686,232 Total net premiums earned $ 650,653 $ 541,737 $ 1,865,577 $ 1,609,269 |
Commitments And Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES 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 September 30, 2015 , 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. |
Condensed Consolidated Guaranto
Condensed Consolidated Guarantor Financial Statements | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Consolidated Guarantor Financial Statements | CONDENSED CONSOLIDATED GUARANTOR FINANCIAL STATEMENTS The following tables present unaudited condensed consolidating financial information as of September 30, 2015 and December 31, 2014 and for the three and nine months ended September 30, 2015 and 2014 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. Unaudited Condensed Consolidating Balance Sheet: September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated ASSETS: Investments $ — $ — $ 8,179,810 $ — $ 8,179,810 Cash and cash equivalents 30,561 1,462 571,787 — 603,810 Insurance balances receivable — — 905,401 — 905,401 Funds held — — 443,670 — 443,670 Reinsurance recoverable — — 1,449,832 — 1,449,832 Reinsurance recoverable on paid losses — — 117,110 — 117,110 Net deferred acquisition costs — — 201,313 — 201,313 Goodwill and intangible assets — — 485,393 — 485,393 Balances receivable on sale of investments — — 29,461 — 29,461 Investments in subsidiaries 3,337,480 3,882,163 — (7,219,643 ) — Due from subsidiaries 216,992 45,005 14,100 (276,097 ) — Other assets 2,402 2,298 777,079 — 781,779 Total assets $ 3,587,435 $ 3,930,928 $ 13,174,956 $ (7,495,740 ) $ 13,197,579 LIABILITIES: Reserve for losses and loss expenses $ — $ — $ 6,436,579 $ — $ 6,436,579 Unearned premiums — — 1,835,527 — 1,835,527 Reinsurance balances payable — — 260,225 — 260,225 Balances due on purchases of investments — — 108,337 — 108,337 Senior notes — 799,043 — — 799,043 Other long-term debt — — 23,328 — 23,328 Due to subsidiaries 6,559 7,541 261,997 (276,097 ) — Other liabilities 25,471 12,477 141,187 — 179,135 Total liabilities 32,030 819,061 9,067,180 (276,097 ) 9,642,174 Total shareholders’ equity 3,555,405 3,111,867 4,107,776 (7,219,643 ) 3,555,405 Total liabilities and shareholders’ equity $ 3,587,435 $ 3,930,928 $ 13,174,956 $ (7,495,740 ) $ 13,197,579 December 31, 2014 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated 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 Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income: Three Months Ended September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated Net premiums earned $ — $ — $ 650,653 $ — $ 650,653 Net investment income — — 45,667 — 45,667 Net realized investment gains (losses) — — (113,626 ) — (113,626 ) Other income — — 735 — 735 Net losses and loss expenses — — (416,881 ) — (416,881 ) Acquisition costs — — (100,101 ) — (100,101 ) General and administrative expenses (7,438 ) 590 (98,950 ) — (105,798 ) Other expense — — (1,245 ) — (1,245 ) Amortization of intangible assets — — (2,639 ) — (2,639 ) Interest expense — (13,876 ) (593 ) — (14,469 ) Foreign exchange gain (loss) 2 — 791 — 793 Income tax (expense) benefit (472 ) — 5,753 — 5,281 Equity in earnings of consolidated subsidiaries (43,722 ) (37,021 ) — 80,743 — NET INCOME (LOSS) $ (51,630 ) $ (50,307 ) $ (30,436 ) $ 80,743 $ (51,630 ) Other comprehensive income (loss) (993 ) — (993 ) 993 (993 ) COMPREHENSIVE INCOME (LOSS) $ (52,623 ) $ (50,307 ) $ (31,429 ) $ 81,736 $ (52,623 ) Three Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated Net premiums earned $ — $ — $ 541,737 $ — $ 541,737 Net investment income 2 — 43,410 — 43,412 Net realized investment gains (losses) — — (35,136 ) — (35,136 ) Other income — — 1,032 — 1,032 Net losses and loss expenses — — (336,090 ) — (336,090 ) Acquisition costs — — (72,403 ) — (72,403 ) General and administrative expenses (8,285 ) (182 ) (79,827 ) — (88,294 ) Other expense — — (6,575 ) — (6,575 ) Amortization of intangible assets — — (633 ) — (633 ) Interest expense — (13,855 ) (470 ) — (14,325 ) Foreign exchange gain (loss) 16 47 (341 ) — (278 ) Income tax (expense) benefit — — (1,532 ) — (1,532 ) Equity in earnings of consolidated subsidiaries 39,182 49,491 — (88,673 ) — NET INCOME (LOSS) $ 30,915 $ 35,501 $ 53,172 $ (88,673 ) $ 30,915 Other comprehensive income (loss) — — — — — COMPREHENSIVE INCOME (LOSS) $ 30,915 $ 35,501 $ 53,172 $ (88,673 ) $ 30,915 Nine Months Ended September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated Net premiums earned $ — $ — $ 1,865,577 $ — $ 1,865,577 Net investment income 5 — 132,973 — 132,978 Net realized investment gains (losses) — — (88,783 ) — (88,783 ) Other income — — 2,513 — 2,513 Net losses and loss expenses — — (1,173,578 ) — (1,173,578 ) Acquisition costs — — (279,418 ) — (279,418 ) General and administrative expenses (27,053 ) 405 (284,651 ) — (311,299 ) Other expense — — (4,303 ) — (4,303 ) Amortization of intangible assets — — (6,091 ) — (6,091 ) Interest expense — (41,613 ) (1,659 ) — (43,272 ) Foreign exchange gain (loss) 9 13 (10,391 ) — (10,369 ) Income tax (expense) benefit (553 ) — (1,218 ) — (1,771 ) Equity in earnings of consolidated subsidiaries 109,776 138,603 — (248,379 ) — NET INCOME (LOSS) $ 82,184 $ 97,408 $ 150,971 $ (248,379 ) $ 82,184 Other comprehensive income (loss) (4,265 ) — (4,265 ) 4,265 (4,265 ) COMPREHENSIVE INCOME (LOSS) $ 77,919 $ 97,408 $ 146,706 $ (244,114 ) $ 77,919 Nine Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated Net premiums earned $ — $ — $ 1,609,269 $ — $ 1,609,269 Net investment income 6 — 127,818 — 127,824 Net realized investment gains (losses) — — 104,286 — 104,286 Other income — — 1,032 — 1,032 Net losses and loss expenses — — (926,231 ) — (926,231 ) Acquisition costs — — (214,404 ) — (214,404 ) General and administrative expenses (28,012 ) (919 ) (235,891 ) — (264,822 ) Other expense — — (6,575 ) — (6,575 ) Amortization of intangible assets — — (1,900 ) — (1,900 ) Interest expense — (41,556 ) (1,895 ) — (43,451 ) Foreign exchange gain (loss) 12 68 (1,058 ) — (978 ) Income tax (expense) benefit (86 ) — (24,214 ) — (24,300 ) Equity in earnings of consolidated subsidiaries 387,830 419,294 — (807,124 ) — NET INCOME (LOSS) $ 359,750 $ 376,887 $ 430,237 $ (807,124 ) $ 359,750 Other comprehensive income — — — — — COMPREHENSIVE INCOME (LOSS) $ 359,750 $ 376,887 $ 430,237 $ (807,124 ) $ 359,750 Unaudited Condensed Consolidating Statement of Cash Flows: Nine Months Ended September 30, 2015 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 302,025 $ 333,128 $ 661,020 $ (712,850 ) $ 583,323 CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: Purchases trading securities — — (3,962,283 ) — (3,962,283 ) Purchases of other invested assets — — (110,851 ) — (110,851 ) Sales of trading securities — — 3,888,416 — 3,888,416 Sales of other invested assets — — 160,253 — 160,253 Net cash paid for acquisitions — — (141,503 ) — (141,503 ) Other — — (102,690 ) — (102,690 ) Net cash provided by (used in) investing activities — — (268,658 ) — (268,658 ) CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: Dividends paid (66,784 ) — — — (66,784 ) Intercompany dividends paid — (333,400 ) (379,450 ) 712,850 — Proceeds from the exercise of stock options 9,184 — — — 9,184 Share repurchases (246,443 ) — — — (246,443 ) Proceeds from other long-term debt — — 4,003 — 4,003 Repayments of other long-term debt — — (154 ) — (154 ) Net cash provided by (used in) financing activities (304,043 ) (333,400 ) (375,601 ) 712,850 (300,194 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,018 ) (272 ) 16,761 — 14,471 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 32,579 1,734 555,026 — 589,339 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 30,561 $ 1,462 $ 571,787 $ — $ 603,810 Nine Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 241,037 $ 263,554 $ 737,516 $ (575,000 ) $ 667,107 CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: Purchases of trading securities — — (5,608,594 ) — (5,608,594 ) Purchases of other invested assets — — (242,227 ) — (242,227 ) Sales of trading securities — — 5,500,176 — 5,500,176 Sales of other invested assets — — 243,123 — 243,123 Net cash paid for acquisitions — — (2,565 ) — (2,565 ) Other — — (44,055 ) — (44,055 ) Net cash provided by (used in) investing activities — — (154,142 ) — (154,142 ) CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: Dividends paid (55,064 ) — — — (55,064 ) Intercompany dividends paid — (264,000 ) (311,000 ) 575,000 — Proceeds from the exercise of stock options 7,640 — — — 7,640 Share repurchases (166,207 ) — — — (166,207 ) Net cash provided by (used in) financing activities (213,631 ) (264,000 ) (311,000 ) 575,000 (213,631 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 27,406 (446 ) 272,374 — 299,334 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 10,790 2,775 518,371 — 531,936 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 38,196 $ 2,329 $ 790,745 $ — $ 831,270 Notes to Parent Company Condensed Financial Information a) Dividends Allied World Switzerland received cash dividends from its subsidiaries of $333,400 and $264,000 for the nine months ended September 30, 2015 and 2014 , respectively. Such dividends are included in “cash flows provided by (used in) operating activities” in the unaudited condensed consolidating cash flows. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTS On October 1, 2015, the Company paid a quarterly dividend of $0.26 per share to shareholders of record on September 22, 2015. |
Basis of Preparation and Cons22
Basis of Preparation and Consolidation (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of accounting | Intercompany accounts and transactions have been eliminated on consolidation and all entities meeting consolidation requirements have been included in the unaudited condensed consolidated financial statements. These unaudited condensed consolidated financial statements include the accounts of the Company and have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with Article 10 of Regulation S-X as promulgated by the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these unaudited condensed consolidated financial statements reflect all adjustments that are normal and recurring in nature and necessary for a fair presentation of financial position and results of operations as of the end of and for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. |
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. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of consideration paid and amounts of assets acquired and liabilities assumed | The following table summarizes the consideration paid for the Hong Kong and Singapore branches of RSA and the preliminary amounts of the assets acquired and liabilities assumed at the acquisition date. Consideration: Fair Value Cash for initial consideration $ 193,889 Receivable for post-closing adjustments (31,160 ) Fair value of consideration transferred 162,729 Recognized amounts of identifiable assets acquired and liabilities assumed: Fixed maturity investments 245,997 Cash and cash equivalents 46,853 Insurance balances receivable 113,922 Prepaid reinsurance 17,491 Reinsurance recoverable 57,350 Value of business acquired 37,104 Intangible assets 90,600 Other assets 10,041 Reserve for losses and loss expenses (310,198 ) Unearned premiums (150,530 ) Reinsurance balances payable (35,734 ) Net deferred tax liabilities (16,488 ) Accounts payable and accrued liabilities (19,918 ) Total identifiable net assets acquired 86,490 Goodwill 76,239 Total net assets acquired $ 162,729 |
Summary of intangible assets acquired | The following is a breakdown of the intangible assets acquired. Singapore Branch Estimated Useful Life Hong Kong Branch Estimated Useful Life Total VOBA $ 19,845 2 years $ 17,259 1.5 years $ 37,104 Customer renewals 8,600 4 years 6,800 7 years 15,400 Distribution channels 48,500 18 years 26,700 18 years 75,200 $ 76,945 $ 50,759 $ 127,704 |
Summary of results since acquisition | The following summarizes the results of the Hong Kong and Singapore branches that have been included in the Company’s consolidated income statement since the acquisitions closed on April 1, 2015. From April 1, 2015 to September 30, 2015 Total revenue $ 103,265 Net loss $ (14,788 ) |
Pro forma information | The following unaudited pro forma information presents the combined results of the Company and the acquired Hong Kong and Singapore RSA branches for the nine months ended September 30, 2015 and 2014, with pro forma adjustments related to the acquisition method of accounting as if the acquisitions had been consummated as of January 1, 2014, which is the beginning of the earliest period presented. This unaudited pro forma information is not necessarily indicative of what would have occurred had the acquisitions and related transactions been made on the dates indicated, or of future results of the Company. Nine Months Ended September 30, 2015 Nine Months Ended September 30, 2014 Total revenue $ 1,960,185 $ 2,010,308 Net income $ 70,633 $ 362,143 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 December 31, 2014 Fair Value Amortized Cost Fair Value Amortized Cost U.S. government and government agencies $ 1,287,749 $ 1,283,085 $ 1,610,502 $ 1,610,880 Non-U.S. government and government agencies 427,096 449,572 188,199 196,332 States, municipalities and political subdivisions 422,007 410,052 170,567 165,615 Corporate debt: Financial institutions 1,052,636 1,049,451 1,024,667 1,018,777 Industrials 1,256,975 1,276,413 1,029,729 1,037,820 Utilities 118,167 120,856 110,997 111,599 Mortgage-backed 1,302,678 1,273,349 1,263,517 1,219,712 Asset-backed 679,685 692,970 670,832 674,505 Total fixed maturity investments $ 6,546,993 $ 6,555,748 $ 6,069,010 $ 6,035,240 September 30, 2015 December 31, 2014 Fair Value Original Cost Fair Value Original Cost Equity securities $ 663,390 $ 668,061 $ 844,163 $ 791,206 Other invested assets 845,167 762,792 812,543 725,069 $ 1,508,557 $ 1,430,853 $ 1,656,706 $ 1,516,275 |
Schedule of other invested assets | Details regarding the carrying value, redemption characteristics and unfunded investment commitments of the other invested assets portfolio as of September 30, 2015 and December 31, 2014 were as follows: Investment Type Carrying Value as of September 30, 2015 Investments Estimated Investments Redemption (1) Redemption (1) Unfunded Private equity $ 221,862 $ 221,862 2 - 8 Years $ — $ 251,874 Mezzanine debt 194,512 194,512 5 - 9 Years — 166,476 Distressed 5,845 5,845 3 Years — 5,591 Real estate — — 9 Years — 200,000 Total private equity 422,219 422,219 — 623,941 Distressed 216,993 47,775 2 Years 169,218 Monthly 60 Days — Equity long/short 58,655 — 58,655 Quarterly 45 Days — Relative value credit 119,100 — 119,100 Quarterly 60 Days — Total hedge funds 394,748 47,775 346,973 — High yield loan fund 28,200 — 28,200 Monthly 30 Days — Total other invested assets at fair value 845,167 469,994 375,173 623,941 Other private securities 124,260 — 124,260 — Total other invested assets $ 969,427 $ 469,994 $ 499,433 $ 623,941 Investment Type Carrying Value as of December 31, 2014 Investments Estimated Investments Redemption (1) Redemption (1) Unfunded Private equity $ 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 (1) The redemption frequency and notice periods only apply to the investments without redemption restrictions. Some or all of these investments may be subject to a gate as described below. |
Schedule of net investment income | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Fixed maturity investments $ 42,801 $ 38,762 $ 120,264 $ 110,998 Equity securities 3,115 3,711 11,540 12,876 Other invested assets: hedge funds and private equity 3,342 2,249 16,305 8,767 Other invested assets: other private securities 1,804 3,292 (1,119 ) 7,291 Cash and cash equivalents 277 552 1,178 1,562 Expenses (5,672 ) (5,154 ) (15,190 ) (13,670 ) Net investment income $ 45,667 $ 43,412 $ 132,978 $ 127,824 |
Components of realized gains and losses | Three Months Ended Nine Months Ended 2015 2014 2015 2014 Gross realized gains on sale of invested assets $ 18,694 $ 28,773 $ 100,060 $ 146,780 Gross realized losses on sale of invested assets (34,735 ) (9,955 ) (57,798 ) (26,228 ) Net realized and unrealized (losses) gains on derivatives (19,905 ) 2,171 (17,616 ) (24,469 ) Mark-to-market (losses) gains: Fixed maturity investments, trading (15,270 ) (40,843 ) (42,441 ) 18,039 Equity securities, trading (62,853 ) (8,479 ) (57,761 ) (8,768 ) Other invested assets, trading 443 (6,803 ) (13,227 ) (1,068 ) Net realized investment (losses) gains $ (113,626 ) $ (35,136 ) $ (88,783 ) $ 104,286 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 unaudited condensed consolidated balance sheets (“consolidated balance sheets”): September 30, 2015 December 31, 2014 Asset Derivative Notional Amount Asset Derivative Fair Value Liability Derivative Notional Amount Liability Derivative Fair Value Asset Derivative Notional Amount Asset Derivative Fair Value Liability Derivative Notional Amount Liability Derivative Fair Value Foreign exchange contracts $ 4,331 $ 28 $ 890 $ 9 $ 33,875 $ 1,274 $ 167,376 $ 991 Interest rate swaps 547,000 330 — — — — 571,500 683 Total derivatives $ 551,331 $ 358 $ 890 $ 9 $ 33,875 $ 1,274 $ 738,876 $ 1,674 |
Unrealized and realized gains (losses) on derivatives recorded in the unaudited condensed consolidated income statements | The following table provides the net realized and unrealized gains (losses) on derivatives not designated as hedges recorded on the consolidated income statements: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Foreign exchange contracts $ 183 $ 1,886 $ (5,975 ) $ (580 ) Total included in foreign exchange loss 183 1,886 (5,975 ) (580 ) Foreign exchange contracts 134 1,701 928 857 Interest rate futures and swaps (20,039 ) 470 (18,544 ) (25,326 ) Total included in net realized investment gains (losses) (19,905 ) 2,171 (17,616 ) (24,469 ) Total realized and unrealized gains (losses) on derivatives $ (19,722 ) $ 4,057 $ (23,591 ) $ (25,049 ) |
Fair Value Of Financial Instr26
Fair Value Of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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: September 30, 2015 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 ASSETS: Fixed maturity investments: U.S. government and government agencies $ 1,287,748 $ 1,287,748 $ 1,225,745 $ 62,003 $ — Non-U.S. government and government agencies 427,096 427,096 — 427,096 — States, municipalities and political subdivisions 422,007 422,007 — 422,007 — Corporate debt 2,427,779 2,427,779 — 2,427,779 — Mortgage-backed 1,302,678 1,302,678 — 1,199,013 103,665 Asset-backed 679,685 679,685 — 622,131 57,554 Total fixed maturity investments 6,546,993 6,546,993 1,225,745 5,160,029 161,219 Equity securities 663,390 663,390 636,576 — 26,814 Other invested assets (1) 845,167 845,167 — — — Total investments $ 8,055,550 $ 8,055,550 $ 1,862,321 $ 5,160,029 $ 188,033 Derivative assets: Foreign exchange contracts $ 28 $ 28 $ — $ 28 $ — Interest rate swaps 330 330 — 330 — LIABILITIES: Derivative liabilities: Foreign exchange contracts $ 9 $ 9 $ — $ 9 $ — Senior notes $ 799,043 $ 859,307 $ — $ 859,307 $ — Other long-term debt $ 23,328 $ 28,112 $ — $ 28,112 $ — December 31, 2014 Carrying Amount Total Fair Value Level 1 Level 2 Level 3 ASSETS: 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 (1) 812,543 812,543 — — — Total investments $ 7,725,716 $ 7,725,716 $ 2,300,180 $ 4,332,467 $ 280,526 Derivative assets: Foreign exchange contracts $ 1,274 $ 1,274 $ — $ 1,274 $ — LIABILITIES: 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 $ — (1) In accordance with U.S. GAAP, other invested assets, excluding other private securities, are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. |
Fair value measurements using significant unobservable inputs (Level 3) | The following is a reconciliation of the beginning and ending balance of financial instruments using significant unobservable inputs (Level 3): Three Months Ended September 30, 2015 Mortgage-backed Asset-backed Equities Opening balance $ 99,637 $ 83,908 $ 57,807 Realized and unrealized gains (losses) included in net (loss) income 808 (2,547 ) (10,993 ) Purchases 9,666 122 — Sales (9,390 ) (7,892 ) (20,000 ) Transfers into Level 3 from Level 2 3,126 627 — Transfers out of Level 3 into Level 2 (1) (182 ) (16,664 ) — Ending balance $ 103,665 $ 57,554 $ 26,814 Three Months Ended September 30, 2014 Opening balance $ 146,801 $ 71,232 $ 34,863 Realized and unrealized gains (losses) included in net (loss) income (882 ) (253 ) 3,172 Purchases 16,311 18,021 — Sales (28,761 ) (9,970 ) — Transfers into Level 3 from Level 2 1,628 17,863 — Transfers out of Level 3 into Level 2 (1) (15,189 ) (5,523 ) — Ending balance $ 119,908 $ 91,370 $ 38,035 Nine Months Ended September 30, 2015 Mortgage-backed Asset-backed Equities Opening balance $ 181,783 $ 55,413 $ 43,330 Realized and unrealized gains (losses) included in net (loss) income 27 (2,960 ) 3,484 Purchases 16,657 7,011 — Sales (94,802 ) (20,160 ) (20,000 ) Transfers into Level 3 from Level 2 — 41,234 — Transfers out of Level 3 into Level 2 (1) — (22,984 ) — Ending balance $ 103,665 $ 57,554 $ 26,814 Nine Months Ended September 30, 2014 Opening balance $ 147,338 $ 93,413 $ 73,904 Realized and unrealized gains (losses) included in net (loss) income 3,654 (659 ) (6,572 ) Purchases 34,187 35,526 — Sales (65,038 ) (19,871 ) (29,297 ) Transfers into Level 3 from Level 2 1,253 13,923 — Transfers out of Level 3 into Level 2 (1) (1,486 ) (30,962 ) — Ending balance $ 119,908 $ 91,370 $ 38,035 (1) Transfers out of Level 3 are primarily attributable to the availability of market observable information. |
Reserve For Losses And Loss E27
Reserve For Losses And Loss Expenses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Insurance Loss Reserves [Abstract] | |
Components of liabilty for unpaid losses and loss expenses | The reserve for losses and loss expenses consists of the following: September 30, December 31, Outstanding loss reserves $ 1,707,409 $ 1,514,051 Reserves for losses incurred but not reported 4,729,170 4,367,114 Reserve for losses and loss expenses $ 6,436,579 $ 5,881,165 |
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. Three Months Ended Nine Months Ended 2015 2014 2015 2014 Gross liability at beginning of period $ 6,363,948 $ 5,935,678 $ 5,881,165 $ 5,766,529 Reinsurance recoverable at beginning of period (1,433,109 ) (1,301,742 ) (1,340,256 ) (1,234,504 ) Net liability at beginning of period 4,930,839 4,633,936 4,540,909 4,532,025 Acquisition of net reserves for losses and loss expenses — — 256,991 — Net losses incurred related to: Current year 425,473 382,970 1,267,649 1,067,111 Prior years (8,591 ) (46,880 ) (94,071 ) (140,880 ) Total incurred 416,882 336,090 1,173,578 926,231 Net paid losses related to: Current year 60,828 53,596 95,388 80,401 Prior years 287,840 202,626 866,770 666,555 Total paid 348,668 256,222 962,158 746,956 Foreign exchange revaluation (12,306 ) (10,550 ) (22,573 ) (8,046 ) Net liability at end of period 4,986,747 4,703,254 4,986,747 4,703,254 Reinsurance recoverable at end of period 1,449,832 1,349,009 1,449,832 1,349,009 Gross liability at end of period $ 6,436,579 $ 6,052,263 $ 6,436,579 $ 6,052,263 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Issued share capital | The issued share capital consists of the following: September 30, December 31, Common shares issued and fully paid, 2015 and 2014: CHF 4.10 per share 95,523,230 100,775,256 Share capital at end of period $ 386,702 $ 408,020 |
Schedule of common stock outstanding roll forward | Nine Months Ended September 30, 2015 Shares issued at beginning of period 100,775,256 Shares canceled (5,252,026 ) Total shares issued at end of period 95,523,230 Treasury shares issued at beginning of period 4,579,774 Shares repurchased 6,047,437 Shares issued out of treasury (763,843 ) Shares canceled (5,252,026 ) Total treasury shares at end of period 4,611,342 Total shares outstanding at end of period 90,911,888 |
Dividends paid | The Company paid the following dividends during the nine months ended September 30, 2015 : Dividend Paid Dividend Per Share Total Amount Paid January 2, 2015 $ 0.225 $ 21,669 April 2, 2015 $ 0.225 $ 21,528 July 2, 2015 $ 0.260 $ 23,606 |
Share repurchases | The Company’s share repurchases were as follows: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Common shares repurchased — 654,851 6,047,437 4,616,543 Total cost of shares repurchased $ — $ 24,996 $ 245,301 $ 164,528 Average price per share $ — $ 38.17 $ 40.56 $ 35.64 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Comparison Of Basic And Diluted Earnings Per Share | The following table sets forth the comparison of basic and diluted (loss) earnings per share: Three Months Ended Nine Months Ended 2015 2014 2015 2014 Basic (loss) earnings per share: Net (loss) income $ (51,630 ) $ 30,915 $ 82,184 $ 359,750 Weighted average common shares outstanding 90,882,511 96,458,231 93,068,088 97,926,378 Basic (loss) earnings per share $ (0.57 ) $ 0.32 $ 0.88 $ 3.67 Three Months Ended Nine Months Ended 2015 2014 2015 2014 Diluted (loss) earnings per share: Net (loss) income $ (51,630 ) $ 30,915 $ 82,184 $ 359,750 Weighted average common shares outstanding 90,882,511 96,458,231 93,068,088 97,926,378 Share equivalents: Stock options — 1,430,243 1,071,569 1,449,641 RSUs and performance-based equity awards — 541,711 569,276 575,675 Employee share purchase plan — 14,053 16,047 13,602 Weighted average common shares and common share equivalents outstanding - diluted 90,882,511 98,444,238 94,724,980 99,965,296 Diluted (loss) earnings per share $ (0.57 ) $ 0.31 $ 0.87 $ 3.60 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of segment results | The following tables provide a summary of the segment results: Three Months Ended September 30, 2015 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 460,386 $ 132,664 $ 161,012 $ 754,062 Net premiums written 350,791 104,075 152,126 606,992 Net premiums earned 332,722 110,327 207,604 650,653 Net losses and loss expenses (222,250 ) (70,935 ) (123,696 ) (416,881 ) Acquisition costs (35,585 ) (22,731 ) (41,785 ) (100,101 ) General and administrative expenses (58,301 ) (29,344 ) (18,153 ) (105,798 ) Underwriting income (loss) 16,586 (12,683 ) 23,970 27,873 Other insurance-related income 735 — — 735 Other insurance-related expenses (631 ) (614 ) — (1,245 ) Segment income (loss) $ 16,690 $ (13,297 ) $ 23,970 $ 27,363 Net investment income 45,667 Net realized investment losses (113,626 ) Amortization of intangible assets (2,639 ) Interest expense (14,469 ) Foreign exchange gain 793 Loss before income taxes $ (56,911 ) Loss and loss expense ratio 66.8 % 64.3 % 59.6 % 64.1 % Acquisition cost ratio 10.7 % 20.6 % 20.1 % 15.4 % General and administrative expense ratio 17.5 % 26.6 % 8.7 % 16.3 % Expense ratio 28.2 % 47.2 % 28.8 % 31.7 % Combined ratio 95.0 % 111.5 % 88.4 % 95.8 % Three Months Ended September 30, 2014 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 466,792 $ 64,125 $ 176,967 $ 707,884 Net premiums written 364,739 44,794 159,209 568,742 Net premiums earned 277,203 41,574 222,960 541,737 Net losses and loss expenses (180,682 ) (28,142 ) (127,266 ) (336,090 ) Acquisition costs (27,027 ) (5,313 ) (40,063 ) (72,403 ) General and administrative expenses (52,921 ) (16,802 ) (18,571 ) (88,294 ) Underwriting income (loss) 16,573 (8,683 ) 37,060 44,950 Other insurance-related income 1,032 — — 1,032 Other insurance-related expenses (1,270 ) (5,305 ) — (6,575 ) Segment income (loss) $ 16,335 $ (13,988 ) $ 37,060 $ 39,407 Net investment income 43,412 Net realized investment losses (35,136 ) Amortization of intangible assets (633 ) Interest expense (14,325 ) Foreign exchange loss (278 ) Income before income taxes $ 32,447 Loss and loss expense ratio 65.2 % 67.7 % 57.1 % 62.0 % Acquisition cost ratio 9.7 % 12.8 % 18.0 % 13.4 % General and administrative expense ratio 19.1 % 40.4 % 8.3 % 16.3 % Expense ratio 28.8 % 53.2 % 26.3 % 29.7 % Combined ratio 94.0 % 120.9 % 83.4 % 91.7 % Nine Months Ended September 30, 2015 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 1,358,636 $ 328,223 $ 773,787 $ 2,460,646 Net premiums written 1,019,866 216,230 747,093 1,983,189 Net premiums earned 974,232 262,993 628,352 1,865,577 Net losses and loss expenses (655,475 ) (157,200 ) (360,903 ) (1,173,578 ) Acquisition costs (100,818 ) (54,076 ) (124,524 ) (279,418 ) General and administrative expenses (175,732 ) (78,093 ) (57,474 ) (311,299 ) Underwriting income (loss) 42,207 (26,376 ) 85,451 101,282 Other insurance-related income 2,513 — — 2,513 Other insurance-related expenses (2,076 ) (2,227 ) — (4,303 ) Segment income (loss) $ 42,644 $ (28,603 ) $ 85,451 $ 99,492 Net investment income 132,978 Net realized investment losses (88,783 ) Amortization of intangible assets (6,091 ) Interest expense (43,272 ) Foreign exchange loss (10,369 ) Income before income taxes $ 83,955 Loss and loss expense ratio 67.3 % 59.8 % 57.4 % 62.9 % Acquisition cost ratio 10.3 % 20.6 % 19.8 % 15.0 % General and administrative expense ratio 18.0 % 29.7 % 9.1 % 16.7 % Expense ratio 28.3 % 50.3 % 28.9 % 31.7 % Combined ratio 95.6 % 110.1 % 86.3 % 94.6 % Nine Months Ended September 30, 2014 North American Insurance Global Markets Insurance Reinsurance Total Gross premiums written $ 1,285,044 $ 196,086 $ 888,552 $ 2,369,682 Net premiums written 905,279 126,574 862,427 1,894,280 Net premiums earned 808,453 114,584 686,232 1,609,269 Net losses and loss expenses (520,586 ) (35,204 ) (370,441 ) (926,231 ) Acquisition costs (76,531 ) (12,615 ) (125,258 ) (214,404 ) General and administrative expenses (159,063 ) (48,861 ) (56,898 ) (264,822 ) Underwriting income 52,273 17,904 133,635 203,812 Other insurance-related income 1,032 — — 1,032 Other insurance-related expenses (1,270 ) (5,305 ) — (6,575 ) Segment income $ 52,035 $ 12,599 $ 133,635 $ 198,269 Net investment income 127,824 Net realized investment gains 104,286 Amortization of intangible assets (1,900 ) Interest expense (43,451 ) Foreign exchange loss (978 ) Income before income taxes $ 384,050 Loss and loss expense ratio 64.4 % 30.7 % 54.0 % 57.6 % Acquisition cost ratio 9.5 % 11.0 % 18.3 % 13.3 % General and administrative expense ratio 19.7 % 42.6 % 8.3 % 16.5 % Expense ratio 29.2 % 53.6 % 26.6 % 29.8 % Combined ratio 93.6 % 84.3 % 80.6 % 87.4 % |
Analysis of gross written premium by geographic location | The following table shows an analysis of the Company’s gross premiums written by geographic location of the Company’s subsidiaries and branches. All intercompany premiums have been eliminated. Three Months Ended Nine Months Ended 2015 2014 2015 2014 United States $ 489,562 $ 483,992 $ 1,509,314 $ 1,447,652 Asia Pacific 106,039 45,070 239,323 142,798 Bermuda 84,486 109,503 448,988 525,005 Europe 70,814 64,947 251,042 245,931 Canada 3,161 4,372 11,979 8,296 Total gross premiums written $ 754,062 $ 707,884 $ 2,460,646 $ 2,369,682 |
Net 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 each of the periods indicated. Three Months Ended Nine Months Ended 2015 2014 2015 2014 North American Insurance: Casualty $ 112,093 $ 86,114 $ 326,236 $ 240,981 Professional liability 87,678 68,512 251,005 197,042 Property 39,333 42,457 123,201 127,402 Programs 38,306 28,933 109,163 88,109 Healthcare 35,322 40,775 111,759 126,591 Specialty and other 19,990 10,412 52,868 28,328 Total 332,722 277,203 974,232 808,453 Global Markets Insurance: Casualty 32,033 4,396 68,979 10,298 Specialty and other 29,952 11,915 69,886 31,935 Professional liability 27,719 17,001 76,976 47,091 Property 20,623 8,262 47,152 25,260 Total 110,327 41,574 262,993 114,584 Reinsurance: Property 102,329 113,560 311,498 379,575 Casualty 58,170 65,915 173,953 163,591 Specialty 47,105 43,485 142,901 143,066 Total 207,604 222,960 628,352 686,232 Total net premiums earned $ 650,653 $ 541,737 $ 1,865,577 $ 1,609,269 |
Condensed Consolidated Guaran31
Condensed Consolidated Guarantor Financial Statements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of condensed consolidating balance sheet | Unaudited Condensed Consolidating Balance Sheet: September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated ASSETS: Investments $ — $ — $ 8,179,810 $ — $ 8,179,810 Cash and cash equivalents 30,561 1,462 571,787 — 603,810 Insurance balances receivable — — 905,401 — 905,401 Funds held — — 443,670 — 443,670 Reinsurance recoverable — — 1,449,832 — 1,449,832 Reinsurance recoverable on paid losses — — 117,110 — 117,110 Net deferred acquisition costs — — 201,313 — 201,313 Goodwill and intangible assets — — 485,393 — 485,393 Balances receivable on sale of investments — — 29,461 — 29,461 Investments in subsidiaries 3,337,480 3,882,163 — (7,219,643 ) — Due from subsidiaries 216,992 45,005 14,100 (276,097 ) — Other assets 2,402 2,298 777,079 — 781,779 Total assets $ 3,587,435 $ 3,930,928 $ 13,174,956 $ (7,495,740 ) $ 13,197,579 LIABILITIES: Reserve for losses and loss expenses $ — $ — $ 6,436,579 $ — $ 6,436,579 Unearned premiums — — 1,835,527 — 1,835,527 Reinsurance balances payable — — 260,225 — 260,225 Balances due on purchases of investments — — 108,337 — 108,337 Senior notes — 799,043 — — 799,043 Other long-term debt — — 23,328 — 23,328 Due to subsidiaries 6,559 7,541 261,997 (276,097 ) — Other liabilities 25,471 12,477 141,187 — 179,135 Total liabilities 32,030 819,061 9,067,180 (276,097 ) 9,642,174 Total shareholders’ equity 3,555,405 3,111,867 4,107,776 (7,219,643 ) 3,555,405 Total liabilities and shareholders’ equity $ 3,587,435 $ 3,930,928 $ 13,174,956 $ (7,495,740 ) $ 13,197,579 December 31, 2014 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated 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 |
Schedule of condensed consolidating income statement | Unaudited Condensed Consolidating Statement of Operations and Comprehensive Income: Three Months Ended September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated Net premiums earned $ — $ — $ 650,653 $ — $ 650,653 Net investment income — — 45,667 — 45,667 Net realized investment gains (losses) — — (113,626 ) — (113,626 ) Other income — — 735 — 735 Net losses and loss expenses — — (416,881 ) — (416,881 ) Acquisition costs — — (100,101 ) — (100,101 ) General and administrative expenses (7,438 ) 590 (98,950 ) — (105,798 ) Other expense — — (1,245 ) — (1,245 ) Amortization of intangible assets — — (2,639 ) — (2,639 ) Interest expense — (13,876 ) (593 ) — (14,469 ) Foreign exchange gain (loss) 2 — 791 — 793 Income tax (expense) benefit (472 ) — 5,753 — 5,281 Equity in earnings of consolidated subsidiaries (43,722 ) (37,021 ) — 80,743 — NET INCOME (LOSS) $ (51,630 ) $ (50,307 ) $ (30,436 ) $ 80,743 $ (51,630 ) Other comprehensive income (loss) (993 ) — (993 ) 993 (993 ) COMPREHENSIVE INCOME (LOSS) $ (52,623 ) $ (50,307 ) $ (31,429 ) $ 81,736 $ (52,623 ) Three Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated Net premiums earned $ — $ — $ 541,737 $ — $ 541,737 Net investment income 2 — 43,410 — 43,412 Net realized investment gains (losses) — — (35,136 ) — (35,136 ) Other income — — 1,032 — 1,032 Net losses and loss expenses — — (336,090 ) — (336,090 ) Acquisition costs — — (72,403 ) — (72,403 ) General and administrative expenses (8,285 ) (182 ) (79,827 ) — (88,294 ) Other expense — — (6,575 ) — (6,575 ) Amortization of intangible assets — — (633 ) — (633 ) Interest expense — (13,855 ) (470 ) — (14,325 ) Foreign exchange gain (loss) 16 47 (341 ) — (278 ) Income tax (expense) benefit — — (1,532 ) — (1,532 ) Equity in earnings of consolidated subsidiaries 39,182 49,491 — (88,673 ) — NET INCOME (LOSS) $ 30,915 $ 35,501 $ 53,172 $ (88,673 ) $ 30,915 Other comprehensive income (loss) — — — — — COMPREHENSIVE INCOME (LOSS) $ 30,915 $ 35,501 $ 53,172 $ (88,673 ) $ 30,915 Nine Months Ended September 30, 2015 Allied World Guarantor) Allied World Issuer) Other Allied Subsidiaries Consolidating Adjustments Allied World Consolidated Net premiums earned $ — $ — $ 1,865,577 $ — $ 1,865,577 Net investment income 5 — 132,973 — 132,978 Net realized investment gains (losses) — — (88,783 ) — (88,783 ) Other income — — 2,513 — 2,513 Net losses and loss expenses — — (1,173,578 ) — (1,173,578 ) Acquisition costs — — (279,418 ) — (279,418 ) General and administrative expenses (27,053 ) 405 (284,651 ) — (311,299 ) Other expense — — (4,303 ) — (4,303 ) Amortization of intangible assets — — (6,091 ) — (6,091 ) Interest expense — (41,613 ) (1,659 ) — (43,272 ) Foreign exchange gain (loss) 9 13 (10,391 ) — (10,369 ) Income tax (expense) benefit (553 ) — (1,218 ) — (1,771 ) Equity in earnings of consolidated subsidiaries 109,776 138,603 — (248,379 ) — NET INCOME (LOSS) $ 82,184 $ 97,408 $ 150,971 $ (248,379 ) $ 82,184 Other comprehensive income (loss) (4,265 ) — (4,265 ) 4,265 (4,265 ) COMPREHENSIVE INCOME (LOSS) $ 77,919 $ 97,408 $ 146,706 $ (244,114 ) $ 77,919 Nine Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated Net premiums earned $ — $ — $ 1,609,269 $ — $ 1,609,269 Net investment income 6 — 127,818 — 127,824 Net realized investment gains (losses) — — 104,286 — 104,286 Other income — — 1,032 — 1,032 Net losses and loss expenses — — (926,231 ) — (926,231 ) Acquisition costs — — (214,404 ) — (214,404 ) General and administrative expenses (28,012 ) (919 ) (235,891 ) — (264,822 ) Other expense — — (6,575 ) — (6,575 ) Amortization of intangible assets — — (1,900 ) — (1,900 ) Interest expense — (41,556 ) (1,895 ) — (43,451 ) Foreign exchange gain (loss) 12 68 (1,058 ) — (978 ) Income tax (expense) benefit (86 ) — (24,214 ) — (24,300 ) Equity in earnings of consolidated subsidiaries 387,830 419,294 — (807,124 ) — NET INCOME (LOSS) $ 359,750 $ 376,887 $ 430,237 $ (807,124 ) $ 359,750 Other comprehensive income — — — — — COMPREHENSIVE INCOME (LOSS) $ 359,750 $ 376,887 $ 430,237 $ (807,124 ) $ 359,750 |
Schedule of condensed consolidating statement of cash flows | Unaudited Condensed Consolidating Statement of Cash Flows: Nine Months Ended September 30, 2015 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES $ 302,025 $ 333,128 $ 661,020 $ (712,850 ) $ 583,323 CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: Purchases trading securities — — (3,962,283 ) — (3,962,283 ) Purchases of other invested assets — — (110,851 ) — (110,851 ) Sales of trading securities — — 3,888,416 — 3,888,416 Sales of other invested assets — — 160,253 — 160,253 Net cash paid for acquisitions — — (141,503 ) — (141,503 ) Other — — (102,690 ) — (102,690 ) Net cash provided by (used in) investing activities — — (268,658 ) — (268,658 ) CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: Dividends paid (66,784 ) — — — (66,784 ) Intercompany dividends paid — (333,400 ) (379,450 ) 712,850 — Proceeds from the exercise of stock options 9,184 — — — 9,184 Share repurchases (246,443 ) — — — (246,443 ) Proceeds from other long-term debt — — 4,003 — 4,003 Repayments of other long-term debt — — (154 ) — (154 ) Net cash provided by (used in) financing activities (304,043 ) (333,400 ) (375,601 ) 712,850 (300,194 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (2,018 ) (272 ) 16,761 — 14,471 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 32,579 1,734 555,026 — 589,339 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 30,561 $ 1,462 $ 571,787 $ — $ 603,810 Nine Months Ended September 30, 2014 Allied World Switzerland (Parent Guarantor) Allied World Bermuda (Subsidiary Issuer) Other Allied World Subsidiaries Consolidating Adjustments Allied World Switzerland Consolidated CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: $ 241,037 $ 263,554 $ 737,516 $ (575,000 ) $ 667,107 CASH FLOWS PROVIDED BY (USED IN) INVESTING ACTIVITIES: Purchases of trading securities — — (5,608,594 ) — (5,608,594 ) Purchases of other invested assets — — (242,227 ) — (242,227 ) Sales of trading securities — — 5,500,176 — 5,500,176 Sales of other invested assets — — 243,123 — 243,123 Net cash paid for acquisitions — — (2,565 ) — (2,565 ) Other — — (44,055 ) — (44,055 ) Net cash provided by (used in) investing activities — — (154,142 ) — (154,142 ) CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: Dividends paid (55,064 ) — — — (55,064 ) Intercompany dividends paid — (264,000 ) (311,000 ) 575,000 — Proceeds from the exercise of stock options 7,640 — — — 7,640 Share repurchases (166,207 ) — — — (166,207 ) Net cash provided by (used in) financing activities (213,631 ) (264,000 ) (311,000 ) 575,000 (213,631 ) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 27,406 (446 ) 272,374 — 299,334 CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 10,790 2,775 518,371 — 531,936 CASH AND CASH EQUIVALENTS, END OF PERIOD $ 38,196 $ 2,329 $ 790,745 $ — $ 831,270 |
Acquisitions (Consideration Tra
Acquisitions (Consideration Transferred and Recognized Amounts of Identifiable Assets and Liabilities) (Details) - USD ($) $ in Thousands | Apr. 02, 2015 | Sep. 30, 2015 | Dec. 31, 2014 |
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Goodwill | $ 354,781 | $ 278,258 | |
Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | |||
Consideration: | |||
Cash for initial consideration | $ 193,889 | ||
Receivable for post-closing adjustments | (31,160) | ||
Fair value of consideration transferred | 162,729 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Fixed maturity investments | 245,997 | ||
Cash and cash equivalents | 46,853 | ||
Insurance balances receivable | 113,922 | ||
Prepaid reinsurance | 17,491 | ||
Reinsurance recoverable | 57,350 | ||
Intangible assets and VOBA | 127,704 | ||
Other assets | 10,041 | ||
Reserve for losses and loss expenses | (310,198) | ||
Unearned premiums | (150,530) | ||
Reinsurance balances payable | (35,734) | ||
Net deferred tax liabilities | (16,488) | ||
Accounts payable and accrued liabilities | (19,918) | ||
Total identifiable net assets acquired | 86,490 | ||
Goodwill | 76,239 | ||
Total net assets acquired | 162,729 | ||
Business Combination, Acquisition Related Costs | $ 8,948 | ||
Value Of Business Acquired [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Intangible assets and VOBA | 37,104 | ||
Intangible Assets Excluding Voba [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | |||
Recognized amounts of identifiable assets acquired and liabilities assumed: | |||
Intangible assets and VOBA | $ 90,600 |
Acquisitions (Summary of Intang
Acquisitions (Summary of Intangible Assets Acquired) (Details) - USD ($) $ in Thousands | Apr. 02, 2015 | Sep. 30, 2015 | Apr. 30, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 354,781 | $ 278,258 | ||
Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 76,239 | |||
Intangible assets and VOBA | $ 127,704 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 12 years | |||
Value Of Business Acquired [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 37,104 | |||
Customer-Related Intangible Assets [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | 15,400 | |||
Distribution Rights [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | 75,200 | |||
SINGAPORE | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | 52,427 | |||
Intangible assets and VOBA | 76,945 | |||
SINGAPORE | Value Of Business Acquired [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 19,845 | |||
Finite-Lived Intangible Asset, Useful Life | 2 years | |||
SINGAPORE | Customer-Related Intangible Assets [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 8,600 | |||
Finite-Lived Intangible Asset, Useful Life | 4 years | |||
SINGAPORE | Distribution Rights [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 48,500 | |||
Finite-Lived Intangible Asset, Useful Life | 18 years | |||
HONG KONG | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 23,812 | |||
Intangible assets and VOBA | 50,759 | |||
HONG KONG | Value Of Business Acquired [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 17,259 | |||
Finite-Lived Intangible Asset, Useful Life | 1 year 6 months | |||
HONG KONG | Customer-Related Intangible Assets [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 6,800 | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
HONG KONG | Distribution Rights [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Intangible assets and VOBA | $ 26,700 | |||
Finite-Lived Intangible Asset, Useful Life | 18 years | |||
Labuan Operations of Royal Sun Alliance Insurance Plc [Member] | Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,396 |
Acquisitions (Results Since Acq
Acquisitions (Results Since Acquisition and Pro Forma Information) (Details) - Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | |||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 103,265 | ||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | $ (14,788) | ||
Business Acquisition, Pro Forma Revenue | $ 1,960,185 | $ 2,010,308 | |
Business Acquisition, Pro Forma Net Income (Loss) | $ 70,633 | $ 362,143 |
Acquisitions (Other Details) (D
Acquisitions (Other Details) (Details) - Latin American Underwriters Holdings Ltd [Member] - USD ($) $ in Thousands | 1 Months Ended | |
Jan. 31, 2015 | Sep. 30, 2015 | |
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred | $ 5,105 | |
Goodwill, Acquired During Period | 2,467 | |
Finite-lived Intangible Assets Acquired | $ 3,610 | |
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Business Combination, Contingent Consideration, Liability | $ 1,000 | $ 0 |
Investments (Schedule Of Tradin
Investments (Schedule Of Trading Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Equity securities and other invested assets [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | $ 1,508,557 | $ 1,656,706 |
Trading securities, Amortized Cost | 1,430,853 | 1,516,275 |
Equity securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 663,390 | 844,163 |
Trading securities, Amortized Cost | 668,061 | 791,206 |
Other invested assets [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 845,167 | 812,543 |
Trading securities, Amortized Cost | 762,792 | 725,069 |
Fixed maturity investments [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 6,546,993 | 6,069,010 |
Trading securities, Amortized Cost | 6,555,748 | 6,035,240 |
U.S. Government And Government Agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,287,749 | 1,610,502 |
Trading securities, Amortized Cost | 1,283,085 | 1,610,880 |
Non-U.S. Government And Government Agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 427,096 | 188,199 |
Trading securities, Amortized Cost | 449,572 | 196,332 |
States, Municipalities And Political Subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 422,007 | 170,567 |
Trading securities, Amortized Cost | 410,052 | 165,615 |
Corporate Debt, Financial Institutions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,052,636 | 1,024,667 |
Trading securities, Amortized Cost | 1,049,451 | 1,018,777 |
Corporate Debt, Industrials [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,256,975 | 1,029,729 |
Trading securities, Amortized Cost | 1,276,413 | 1,037,820 |
Corporate Debt, Utilities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 118,167 | 110,997 |
Trading securities, Amortized Cost | 120,856 | 111,599 |
Mortgage-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 1,302,678 | 1,263,517 |
Trading securities, Amortized Cost | 1,273,349 | 1,219,712 |
Asset-Backed [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Trading securities, Fair Value | 679,685 | 670,832 |
Trading securities, Amortized Cost | $ 692,970 | $ 674,505 |
Investments (Schedule Of Other
Investments (Schedule Of Other Investments) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2015 | Dec. 31, 2014 | ||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 969,427 | $ 955,509 | |
Investment commitment | 623,941 | 483,214 | |
Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 469,994 | 527,519 | |
Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 499,433 | 427,990 | |
Hedge Funds [Member] | Investments without redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | 30 days | ||
Total Fair Value [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 845,167 | 812,543 | |
Investment commitment | 623,941 | 483,214 | |
Total Fair Value [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 469,994 | 527,519 | |
Total Fair Value [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 375,173 | 285,024 | |
Total Fair Value [Member] | Private Equity Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 422,219 | 357,350 | |
Investment commitment | 623,941 | 483,214 | |
Total Fair Value [Member] | Private Equity Funds [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 422,219 | 357,350 | |
Total Fair Value [Member] | Private Equity Funds [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Total Fair Value [Member] | Private Equity [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 221,862 | 184,576 | |
Investment commitment | 251,874 | 223,802 | |
Total Fair Value [Member] | Private Equity [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 221,862 | $ 184,576 | |
Total Fair Value [Member] | Private Equity [Member] | Investments with redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated remaining restriction period | 2 years | 2 years | |
Total Fair Value [Member] | Private Equity [Member] | Investments with redemption restrictions [Member] | Maximum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated remaining restriction period | 8 years | 8 years | |
Total Fair Value [Member] | Private Equity [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 0 | $ 0 | |
Total Fair Value [Member] | Mezzanine Debt [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 194,512 | 166,905 | |
Investment commitment | 166,476 | 204,232 | |
Total Fair Value [Member] | Mezzanine Debt [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 194,512 | $ 166,905 | |
Total Fair Value [Member] | Mezzanine Debt [Member] | Investments with redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated remaining restriction period | 5 years | 5 years | |
Total Fair Value [Member] | Mezzanine Debt [Member] | Investments with redemption restrictions [Member] | Maximum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Estimated remaining restriction period | 9 years | 9 years | |
Total Fair Value [Member] | Mezzanine Debt [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 0 | $ 0 | |
Total Fair Value [Member] | Distressed [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 5,845 | 5,869 | |
Investment commitment | 5,591 | 5,180 | |
Total Fair Value [Member] | Distressed [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 5,845 | $ 5,869 | |
Estimated remaining restriction period | 3 years | 3 years | |
Total Fair Value [Member] | Distressed [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 0 | $ 0 | |
Total Fair Value [Member] | Real Estate [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Investment commitment | 200,000 | 50,000 | |
Total Fair Value [Member] | Real Estate [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 0 | $ 0 | |
Estimated remaining restriction period | 9 years | 9 years | |
Total Fair Value [Member] | Real Estate [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 0 | $ 0 | |
Total Fair Value [Member] | Hedge Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 394,748 | 425,030 | |
Investment commitment | 0 | 0 | |
Total Fair Value [Member] | Hedge Funds [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 47,775 | 170,169 | |
Total Fair Value [Member] | Hedge Funds [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 346,973 | 254,861 | |
Total Fair Value [Member] | Distressed Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 216,993 | 170,169 | |
Investment commitment | 0 | 0 | |
Total Fair Value [Member] | Distressed Funds [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 47,775 | 170,169 | |
Estimated remaining restriction period | 2 years | ||
Total Fair Value [Member] | Distressed Funds [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 169,218 | $ 0 | |
Redemption frequency | [1] | Monthly | Based on net asset value |
Total Fair Value [Member] | Distressed Funds [Member] | Investments without redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 60 days | 60 days |
Total Fair Value [Member] | Equity Long/Short [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 58,655 | $ 84,198 | |
Investment commitment | 0 | 0 | |
Total Fair Value [Member] | Equity Long/Short [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Total Fair Value [Member] | Equity Long/Short [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 58,655 | $ 84,198 | |
Redemption frequency | [1] | Quarterly | Quarterly |
Redemption notice period | [1] | 45 days | |
Total Fair Value [Member] | Equity Long/Short [Member] | Investments without redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 30 days | |
Total Fair Value [Member] | Equity Long/Short [Member] | Investments without redemption restrictions [Member] | Maximum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 60 days | |
Total Fair Value [Member] | Multi-Strategy Funds [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 51,507 | ||
Investment commitment | 0 | ||
Total Fair Value [Member] | Multi-Strategy Funds [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | ||
Total Fair Value [Member] | Multi-Strategy Funds [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 51,507 | ||
Redemption frequency | [1] | Quarterly | |
Total Fair Value [Member] | Multi-Strategy Funds [Member] | Investments without redemption restrictions [Member] | Minimum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 45 days | |
Total Fair Value [Member] | Multi-Strategy Funds [Member] | Investments without redemption restrictions [Member] | Maximum [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Redemption notice period | [1] | 90 days | |
Total Fair Value [Member] | Relative Value Credit [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 119,100 | $ 119,156 | |
Investment commitment | 0 | 0 | |
Total Fair Value [Member] | Relative Value Credit [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Total Fair Value [Member] | Relative Value Credit [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 119,100 | $ 119,156 | |
Redemption frequency | [1] | Quarterly | Quarterly |
Redemption notice period | [1] | 60 days | 60 days |
Total Fair Value [Member] | High Yield Loan Fund [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 28,200 | $ 30,163 | |
Investment commitment | 0 | 0 | |
Total Fair Value [Member] | High Yield Loan Fund [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Total Fair Value [Member] | High Yield Loan Fund [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 28,200 | $ 30,163 | |
Redemption frequency | [1] | Monthly | Monthly |
Redemption notice period | [1] | 30 days | 30 days |
Carrying Value [Member] | Other Private Securities [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 124,260 | $ 142,966 | |
Investment commitment | 0 | 0 | |
Carrying Value [Member] | Other Private Securities [Member] | Investments with redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | 0 | 0 | |
Carrying Value [Member] | Other Private Securities [Member] | Investments without redemption restrictions [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other invested assets | $ 124,260 | $ 142,966 | |
[1] | The redemption frequency and notice periods only apply to the investments without redemption restrictions. Some or all of these investments may be subject to a gate as described below. |
Investments (Schedule Of Net In
Investments (Schedule Of Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Net Investment Income [Line Items] | ||||
Net investment income | $ 45,667 | $ 43,412 | $ 132,978 | $ 127,824 |
Fixed maturity investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 42,801 | 38,762 | 120,264 | 110,998 |
Equity securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 3,115 | 3,711 | 11,540 | 12,876 |
Other invested assets - hedge funds and private equity [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 3,342 | 2,249 | 16,305 | 8,767 |
Other invested assets - other private securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 1,804 | 3,292 | (1,119) | 7,291 |
Cash and cash equivalents [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | 277 | 552 | 1,178 | 1,562 |
Expenses [Member] | ||||
Net Investment Income [Line Items] | ||||
Net investment income | $ (5,672) | $ (5,154) | $ (15,190) | $ (13,670) |
Investments (Components Of Real
Investments (Components Of Realized Gains And Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Gain (Loss) on Investments [Line Items] | ||||
Gross realized gains on sale of invested assets | $ 18,694 | $ 28,773 | $ 100,060 | $ 146,780 |
Gross realized losses on sale of invested assets | (34,735) | (9,955) | (57,798) | (26,228) |
Net realized and unrealized (losses) gains on derivatives | (19,905) | 2,171 | (17,616) | (24,469) |
Net realized investment (losses) gains | (113,626) | (35,136) | (88,783) | 104,286 |
Fixed maturity investments, trading [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Mark-to-market (losses) gains | (15,270) | (40,843) | (42,441) | 18,039 |
Equity securities, trading [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Mark-to-market (losses) gains | (62,853) | (8,479) | (57,761) | (8,768) |
Other invested assets [Member] | ||||
Gain (Loss) on Investments [Line Items] | ||||
Mark-to-market (losses) gains | $ 443 | $ (6,803) | $ (13,227) | $ (1,068) |
Investments (Pledged Assets) (D
Investments (Pledged Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Compliance With Reinsurance Contract Provisions Or Insurance Laws [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Restricted cash, cash equivalents and investments | $ 2,975,115 | $ 3,585,792 |
Pledged As Collateral For Letter Of Credit Facilities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Restricted cash, cash equivalents and investments | $ 570,363 | $ 571,750 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2015USD ($) | |
Other invested assets - other private securities [Member] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Other-than-temporary impairments | $ 6,261 |
Minimum [Member] | Investments with redemption restrictions [Member] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption restriction period | 1 year |
Minimum [Member] | Investments without redemption restrictions [Member] | Hedge Funds [Member] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption notice period | 30 days |
Gate trigger, percentage | 15.00% |
Maximum [Member] | Investments with redemption restrictions [Member] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Redemption restriction period | 3 years |
Maximum [Member] | Investments without redemption restrictions [Member] | Hedge Funds [Member] | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |
Gate trigger, percentage | 25.00% |
Derivative Instruments (Locatio
Derivative Instruments (Location and Amounts of Derivative Fair Values On The Condensed Consolidated Balance Sheets) (Details) - Not Designated as Hedging Instrument - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | $ 551,331 | $ 33,875 |
Asset Derivative Fair Value | 358 | 1,274 |
Liability Derivative Notional Amount | 890 | 738,876 |
Liability Derivative Fair Value | 9 | 1,674 |
Foreign exchange contracts | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | 4,331 | 33,875 |
Asset Derivative Fair Value | 28 | 1,274 |
Foreign exchange contracts | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivative Notional Amount | 890 | 167,376 |
Liability Derivative Fair Value | 9 | 991 |
Interest rate swaps | Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivative Notional Amount | 547,000 | 0 |
Asset Derivative Fair Value | 330 | 0 |
Interest rate swaps | Accounts payable and accrued liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivative Notional Amount | 0 | 571,500 |
Liability Derivative Fair Value | $ 0 | $ 683 |
Derivative Instruments (Locat43
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 Instrument - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | $ (19,722) | $ 4,057 | $ (23,591) | $ (25,049) |
Foreign exchange gain (loss) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | 183 | 1,886 | (5,975) | (580) |
Foreign exchange gain (loss) | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | 183 | 1,886 | (5,975) | (580) |
Net realized investment gains (losses) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | (19,905) | 2,171 | (17,616) | (24,469) |
Net realized investment gains (losses) | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | 134 | 1,701 | 928 | 857 |
Net realized investment gains (losses) | Interest rate futures and swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized and unrealized gains (losses) on derivatives | $ (20,039) | $ 470 | $ (18,544) | $ (25,326) |
(Schedule Of Fair Value Of Fina
(Schedule Of Fair Value Of Financial Instruments) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | $ 6,546,993 | $ 6,069,010 | |
Equity securities | 663,390 | 844,163 | |
Other invested assets | 969,427 | 955,509 | |
Total investments | 8,179,810 | 7,868,682 | |
Senior notes | 799,043 | 798,802 | |
Other long-term debt | 23,328 | 19,213 | |
Total Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other invested assets | 845,167 | 812,543 | |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 6,546,993 | 6,069,010 | |
Equity securities | 663,390 | 844,163 | |
Other invested assets | [1] | 845,167 | 812,543 |
Total investments | 8,055,550 | 7,725,716 | |
Senior notes | 799,043 | 798,802 | |
Other long-term debt | 23,328 | 19,213 | |
Fair Value, Measurements, Recurring [Member] | Foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 28 | 1,274 | |
Derivative liabilities | 9 | 991 | |
Fair Value, Measurements, Recurring [Member] | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 330 | ||
Derivative liabilities | 683 | ||
Fair Value, Measurements, Recurring [Member] | U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,287,748 | 1,610,502 | |
Fair Value, Measurements, Recurring [Member] | Non-U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 427,096 | 188,199 | |
Fair Value, Measurements, Recurring [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 422,007 | 170,567 | |
Fair Value, Measurements, Recurring [Member] | Corporate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 2,427,779 | 2,165,393 | |
Fair Value, Measurements, Recurring [Member] | Mortgage-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,302,678 | 1,263,517 | |
Fair Value, Measurements, Recurring [Member] | Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 679,685 | 670,832 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,225,745 | 1,499,347 | |
Equity securities | 636,576 | 800,833 | |
Other invested assets | [1] | 0 | 0 |
Total investments | 1,862,321 | 2,300,180 | |
Senior notes | 0 | 0 | |
Other long-term debt | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | 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 [Member] | Level 1 [Member] | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,225,745 | 1,499,347 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Non-U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Mortgage-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 5,160,029 | 4,332,467 | |
Equity securities | 0 | 0 | |
Other invested assets | [1] | 0 | 0 |
Total investments | 5,160,029 | 4,332,467 | |
Senior notes | 859,307 | 879,317 | |
Other long-term debt | 28,112 | 22,583 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 28 | 1,274 | |
Derivative liabilities | 9 | 991 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 330 | ||
Derivative liabilities | 683 | ||
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 62,003 | 111,155 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Non-U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 427,096 | 188,199 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 422,007 | 170,567 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 2,427,779 | 2,165,393 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Mortgage-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,199,013 | 1,081,734 | |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 622,131 | 615,419 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 161,219 | 237,196 | |
Equity securities | 26,814 | 43,330 | |
Other invested assets | [1] | 0 | 0 |
Total investments | 188,033 | 280,526 | |
Senior notes | 0 | 0 | |
Other long-term debt | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | 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 [Member] | Level 3 [Member] | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 0 | ||
Derivative liabilities | 0 | ||
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Non-U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Mortgage-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 103,665 | 181,783 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 57,554 | 55,413 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 6,546,993 | 6,069,010 | |
Equity securities | 663,390 | 844,163 | |
Other invested assets | [1] | 845,167 | 812,543 |
Total investments | 8,055,550 | 7,725,716 | |
Senior notes | 859,307 | 879,317 | |
Other long-term debt | 28,112 | 22,583 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 28 | 1,274 | |
Derivative liabilities | 9 | 991 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Interest rate swaps | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 330 | ||
Derivative liabilities | 683 | ||
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,287,748 | 1,610,502 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Non-U.S. Government And Government Agencies [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 427,096 | 188,199 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | States, Municipalities And Political Subdivisions [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 422,007 | 170,567 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Corporate Debt [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 2,427,779 | 2,165,393 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Mortgage-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | 1,302,678 | 1,263,517 | |
Fair Value, Measurements, Recurring [Member] | Total Fair Value [Member] | Asset-Backed [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Trading fixed maturity investments | $ 679,685 | $ 670,832 | |
[1] | In accordance with U.S. GAAP, other invested assets, excluding other private securities, are measured at fair value using the net asset value per share (or its equivalent) practical expedient and have not been classified in the fair value hierarchy. |
Fair Value Of Financial Instr45
Fair Value Of Financial Instruments (Schedule Of Fair Value Measurement Using Significant Unobservable Inputs Level Three) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | ||
Mortgage-Backed [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | $ 99,637 | $ 146,801 | $ 181,783 | $ 147,338 | |
Realized and unrealized gains (losses) included in net income | 808 | (882) | 27 | 3,654 | |
Purchases | 9,666 | 16,311 | 16,657 | 34,187 | |
Sales | (9,390) | (28,761) | (94,802) | (65,038) | |
Transfers into Level 3 from Level 2 | 3,126 | 1,628 | 0 | 1,253 | |
Transfers out of Level 3 to Level 2 | [1] | (182) | (15,189) | 0 | (1,486) |
Ending balance | 103,665 | 119,908 | 103,665 | 119,908 | |
Asset-Backed [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | 83,908 | 71,232 | 55,413 | 93,413 | |
Realized and unrealized gains (losses) included in net income | (2,547) | (253) | (2,960) | (659) | |
Purchases | 122 | 18,021 | 7,011 | 35,526 | |
Sales | (7,892) | (9,970) | (20,160) | (19,871) | |
Transfers into Level 3 from Level 2 | 627 | 17,863 | 41,234 | 13,923 | |
Transfers out of Level 3 to Level 2 | [1] | (16,664) | (5,523) | (22,984) | (30,962) |
Ending balance | 57,554 | 91,370 | 57,554 | 91,370 | |
Equity securities [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |||||
Opening balance | 57,807 | 34,863 | 43,330 | 73,904 | |
Realized and unrealized gains (losses) included in net income | (10,993) | 3,172 | 3,484 | (6,572) | |
Purchases | 0 | 0 | 0 | 0 | |
Sales | (20,000) | 0 | (20,000) | (29,297) | |
Transfers into Level 3 from Level 2 | 0 | 0 | 0 | 0 | |
Transfers out of Level 3 to Level 2 | [1] | 0 | 0 | 0 | 0 |
Ending balance | $ 26,814 | $ 38,035 | $ 26,814 | $ 38,035 | |
[1] | Transfers out of Level 3 are primarily attributable to the availability of market observable information. |
Reserve For Losses And Loss E46
Reserve For Losses And Loss Expenses (Schedule Of Reserve For Losses And Loss Expenses) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Insurance Loss Reserves [Abstract] | ||||||
Outstanding loss reserves | $ 1,707,409 | $ 1,514,051 | ||||
Reserves for losses incurred but not reported | 4,729,170 | 4,367,114 | ||||
Reserve for losses and loss expenses | $ 6,436,579 | $ 6,363,948 | $ 5,881,165 | $ 6,052,263 | $ 5,935,678 | $ 5,766,529 |
Reserve For Losses And Loss E47
Reserve For Losses And Loss Expenses (Schedule Of Reconciliation Of Unpaid Losses And Loss Expenses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Business Acquisition [Line Items] | ||||
Gross liability at beginning of year | $ 6,363,948 | $ 5,935,678 | $ 5,881,165 | $ 5,766,529 |
Reinsurance recoverable at beginning of year | (1,433,109) | (1,301,742) | (1,340,256) | (1,234,504) |
Net liability at beginning of year | 4,930,839 | 4,633,936 | 4,540,909 | 4,532,025 |
Acquisition of net reserves for losses and loss expenses | 0 | 0 | 256,991 | 0 |
Net losses incurred related to: | ||||
Current year | 425,473 | 382,970 | 1,267,649 | 1,067,111 |
Prior years | (8,591) | (46,880) | (94,071) | (140,880) |
Total incurred | 416,882 | 336,090 | 1,173,578 | 926,231 |
Net paid losses related to: | ||||
Current year | 60,828 | 53,596 | 95,388 | 80,401 |
Prior years | 287,840 | 202,626 | 866,770 | 666,555 |
Total paid | 348,668 | 256,222 | 962,158 | 746,956 |
Foreign exchange revaluation | (12,306) | (10,550) | (22,573) | (8,046) |
Net liability at end of year | 4,986,747 | 4,703,254 | 4,986,747 | 4,703,254 |
Reinsurance recoverable at end of year | 1,449,832 | 1,349,009 | 1,449,832 | 1,349,009 |
Gross liability at end of year | $ 6,436,579 | $ 6,052,263 | 6,436,579 | $ 6,052,263 |
Hong Kong And Singapore Operations Of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition of net reserves for losses and loss expenses | 252,848 | |||
Labuan Operations of Royal Sun Alliance Insurance Plc [Member] | ||||
Business Acquisition [Line Items] | ||||
Acquisition of net reserves for losses and loss expenses | $ 4,143 |
Shareholders' Equity (Issued Sh
Shareholders' Equity (Issued Share Capital) (Details) $ in Thousands | Sep. 30, 2015USD ($)shares | Sep. 30, 2015SFr / shares | Dec. 31, 2014USD ($)shares | Dec. 31, 2014SFr / shares |
Stockholders' Equity Note [Abstract] | ||||
Common shares issued and fully paid, 2015 and 2014: CHF 4.10 per share | 95,523,230 | 100,775,256 | ||
Common shares, par value | SFr / shares | SFr 4.1 | SFr 4.1 | ||
Total share capital | $ | $ 386,702 | $ 408,020 |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule Of Common Stock Outstanding Roll Forward) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Shares issued: | ||||
Shares issued at beginning of period, shares | 100,775,256 | |||
Shares cancelled, shares | (5,252,026) | |||
Shares issued at end of period, shares | 95,523,230 | 95,523,230 | ||
Treasury shares: | ||||
Treasury shares issued at beginning of period, shares | 4,579,774 | |||
Shares repurchased, shares | 0 | 654,851 | 6,047,437 | 4,616,543 |
Shares issued out of treasury, shares | (763,843) | |||
Shares cancelled, shares | (5,252,026) | |||
Total treasury shares at end of period, shares | 4,611,342 | 4,611,342 | ||
Total shares outstanding at end of year | 90,911,888 | 90,911,888 |
Shareholders' Equity (Schedul50
Shareholders' Equity (Schedule Of Dividends Paid) (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2015 | Jul. 02, 2015 | Apr. 30, 2015 | Apr. 02, 2015 | Jan. 02, 2015 | Oct. 02, 2014 | Jul. 02, 2014 | May. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Dividends, Common Stock [Abstract] | ||||||||||||
Dividends paid per common share | $ 0.260 | $ 0.225 | $ 0.710 | $ 0.559 | ||||||||
Common shares | ||||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||
Dividends paid per common share | $ 0.26 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | |||||||
Payment of quarterly dividends | $ 23,606 | $ 21,528 | $ 21,669 | |||||||||
Dividends declared per share | $ 0.26 | $ 0.225 | ||||||||||
Subsequent event | Common shares | ||||||||||||
Dividends, Common Stock [Abstract] | ||||||||||||
Dividends paid per common share | $ 0.260 |
Shareholders' Equity (Schedul51
Shareholders' Equity (Schedule Of Share Repurchases) (Details) - USD ($) $ / shares in Units, $ in Thousands | May. 06, 2015 | May. 01, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Class of Stock [Line Items] | ||||||
Share repurchase authorization, amount | $ 500,000 | |||||
Shares repurchased, shares | 0 | 654,851 | 6,047,437 | 4,616,543 | ||
Cost of shares repurchased | $ 0 | $ 24,996 | $ 245,301 | $ 164,528 | ||
Shares repurchased, average price per share | $ 0 | $ 38.17 | $ 40.56 | $ 35.64 | ||
Treasury shares held for issuance pursuant to equity-based compensation plans | 3,000,000 | |||||
Exor SA [Member] | ||||||
Class of Stock [Line Items] | ||||||
Shares repurchased, shares | 4,053,537 | |||||
Cost of shares repurchased | $ 164,355 | |||||
Shares repurchased, average price per share | $ 40.546 |
Earnings Per Share (Comparison
Earnings Per Share (Comparison Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income | $ (51,630) | $ 30,915 | $ 82,184 | $ 359,750 |
Weighted average common shares outstanding | 90,882,511 | 96,458,231 | 93,068,088 | 97,926,378 |
Basic (loss) earnings per share | $ (0.57) | $ 0.32 | $ 0.88 | $ 3.67 |
Earnings Per Share, Diluted [Abstract] | ||||
Net income | $ (51,630) | $ 30,915 | $ 82,184 | $ 359,750 |
Weighted average common shares outstanding | 90,882,511 | 96,458,231 | 93,068,088 | 97,926,378 |
Share equivalents: | ||||
Warrants and options | 0 | 1,430,243 | 1,071,569 | 1,449,641 |
RSUs and LTIP awards | 0 | 541,711 | 569,276 | 575,675 |
Employee share purchase plan | 0 | 14,053 | 16,047 | 13,602 |
Weighted average common shares and common share equivalents outstanding - diluted | 90,882,511 | 98,444,238 | 94,724,980 | 99,965,296 |
Diluted (loss) earnings per share | $ (0.57) | $ 0.31 | $ 0.87 | $ 3.60 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Stock Compensation Plan [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive securities excluded from computation of earnings per share | 0 | 0 | 0 | 0 |
Segment Information (Summary Of
Segment Information (Summary Of Segment Results) (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015USD ($) | Sep. 30, 2014USD ($) | Sep. 30, 2015USD ($)segments | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 754,062 | $ 707,884 | $ 2,460,646 | $ 2,369,682 |
Net premiums written | 606,992 | 568,742 | 1,983,189 | 1,894,280 |
Net premiums earned | 650,653 | 541,737 | 1,865,577 | 1,609,269 |
Net losses and loss expenses | (416,881) | (336,090) | (1,173,578) | (926,231) |
Acquisition costs | (100,101) | (72,403) | (279,418) | (214,404) |
General and administrative expenses | (105,798) | (88,294) | (311,299) | (264,822) |
Underwriting income (loss) | 27,873 | 44,950 | 101,282 | 203,812 |
Other insurance-related income | 735 | 1,032 | 2,513 | 1,032 |
Other insurance-related expenses | (1,245) | (6,575) | (4,303) | (6,575) |
Segment (loss) income | 27,363 | 39,407 | 99,492 | 198,269 |
Net investment income | 45,667 | 43,412 | 132,978 | 127,824 |
Net realized investment (losses) gains | (113,626) | (35,136) | (88,783) | 104,286 |
Amortization of intangible assets | (2,639) | (633) | (6,091) | (1,900) |
Interest expense | (14,469) | (14,325) | (43,272) | (43,451) |
Foreign exchange loss | 793 | (278) | (10,369) | (978) |
(Loss) income before income taxes | $ (56,911) | $ 32,447 | $ 83,955 | $ 384,050 |
Loss and loss expense ratio | 64.10% | 62.00% | 62.90% | 57.60% |
Acquisition cost ratio | 15.40% | 13.40% | 15.00% | 13.30% |
General and administrative expense ratio | 16.30% | 16.30% | 16.70% | 16.50% |
Expense ratio | 31.70% | 29.70% | 31.70% | 29.80% |
Combined ratio | 95.80% | 91.70% | 94.60% | 87.40% |
Number of operating segments | segments | 3 | |||
Operating Segments [Member] | North American Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 460,386 | $ 466,792 | $ 1,358,636 | $ 1,285,044 |
Net premiums written | 350,791 | 364,739 | 1,019,866 | 905,279 |
Net premiums earned | 332,722 | 277,203 | 974,232 | 808,453 |
Net losses and loss expenses | (222,250) | (180,682) | (655,475) | (520,586) |
Acquisition costs | (35,585) | (27,027) | (100,818) | (76,531) |
General and administrative expenses | (58,301) | (52,921) | (175,732) | (159,063) |
Underwriting income (loss) | 16,586 | 16,573 | 42,207 | 52,273 |
Other insurance-related income | 735 | 1,032 | 2,513 | 1,032 |
Other insurance-related expenses | (631) | (1,270) | (2,076) | (1,270) |
Segment (loss) income | $ 16,690 | $ 16,335 | $ 42,644 | $ 52,035 |
Loss and loss expense ratio | 66.80% | 65.20% | 67.30% | 64.40% |
Acquisition cost ratio | 10.70% | 9.70% | 10.30% | 9.50% |
General and administrative expense ratio | 17.50% | 19.10% | 18.00% | 19.70% |
Expense ratio | 28.20% | 28.80% | 28.30% | 29.20% |
Combined ratio | 95.00% | 94.00% | 95.60% | 93.60% |
Operating Segments [Member] | Global Markets Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 132,664 | $ 64,125 | $ 328,223 | $ 196,086 |
Net premiums written | 104,075 | 44,794 | 216,230 | 126,574 |
Net premiums earned | 110,327 | 41,574 | 262,993 | 114,584 |
Net losses and loss expenses | (70,935) | (28,142) | (157,200) | (35,204) |
Acquisition costs | (22,731) | (5,313) | (54,076) | (12,615) |
General and administrative expenses | (29,344) | (16,802) | (78,093) | (48,861) |
Underwriting income (loss) | (12,683) | (8,683) | (26,376) | 17,904 |
Other insurance-related income | 0 | 0 | 0 | 0 |
Other insurance-related expenses | (614) | (5,305) | (2,227) | (5,305) |
Segment (loss) income | $ (13,297) | $ (13,988) | $ (28,603) | $ 12,599 |
Loss and loss expense ratio | 64.30% | 67.70% | 59.80% | 30.70% |
Acquisition cost ratio | 20.60% | 12.80% | 20.60% | 11.00% |
General and administrative expense ratio | 26.60% | 40.40% | 29.70% | 42.60% |
Expense ratio | 47.20% | 53.20% | 50.30% | 53.60% |
Combined ratio | 111.50% | 120.90% | 110.10% | 84.30% |
Operating Segments [Member] | Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross premiums written | $ 161,012 | $ 176,967 | $ 773,787 | $ 888,552 |
Net premiums written | 152,126 | 159,209 | 747,093 | 862,427 |
Net premiums earned | 207,604 | 222,960 | 628,352 | 686,232 |
Net losses and loss expenses | (123,696) | (127,266) | (360,903) | (370,441) |
Acquisition costs | (41,785) | (40,063) | (124,524) | (125,258) |
General and administrative expenses | (18,153) | (18,571) | (57,474) | (56,898) |
Underwriting income (loss) | 23,970 | 37,060 | 85,451 | 133,635 |
Other insurance-related income | 0 | 0 | 0 | 0 |
Other insurance-related expenses | 0 | 0 | 0 | 0 |
Segment (loss) income | $ 23,970 | $ 37,060 | $ 85,451 | $ 133,635 |
Loss and loss expense ratio | 59.60% | 57.10% | 57.40% | 54.00% |
Acquisition cost ratio | 20.10% | 18.00% | 19.80% | 18.30% |
General and administrative expense ratio | 8.70% | 8.30% | 9.10% | 8.30% |
Expense ratio | 28.80% | 26.30% | 28.90% | 26.60% |
Combined ratio | 88.40% | 83.40% | 86.30% | 80.60% |
Segment Information (Gross Prem
Segment Information (Gross Premiums Written By Geographic Location) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | $ 754,062 | $ 707,884 | $ 2,460,646 | $ 2,369,682 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | 489,562 | 483,992 | 1,509,314 | 1,447,652 |
Asia Pacific | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | 106,039 | 45,070 | 239,323 | 142,798 |
Bermuda | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | 84,486 | 109,503 | 448,988 | 525,005 |
Europe | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | 70,814 | 64,947 | 251,042 | 245,931 |
Canada | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | 3,161 | 4,372 | 11,979 | 8,296 |
Switzerland | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Gross premiums written | $ 12,209 | $ 11,130 | $ 56,876 | $ 65,684 |
Segment Information (Net Premiu
Segment Information (Net Premiums Earned by Line of Business) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net premiums earned | $ 650,653 | $ 541,737 | $ 1,865,577 | $ 1,609,269 |
Operating Segments [Member] | North American Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 332,722 | 277,203 | 974,232 | 808,453 |
Operating Segments [Member] | North American Insurance [Member] | Casualty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 112,093 | 86,114 | 326,236 | 240,981 |
Operating Segments [Member] | North American Insurance [Member] | Professional Liability [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 87,678 | 68,512 | 251,005 | 197,042 |
Operating Segments [Member] | North American Insurance [Member] | Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 39,333 | 42,457 | 123,201 | 127,402 |
Operating Segments [Member] | North American Insurance [Member] | Programs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 38,306 | 28,933 | 109,163 | 88,109 |
Operating Segments [Member] | North American Insurance [Member] | Healthcare [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 35,322 | 40,775 | 111,759 | 126,591 |
Operating Segments [Member] | North American Insurance [Member] | Specialty and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 19,990 | 10,412 | 52,868 | 28,328 |
Operating Segments [Member] | Global Markets Insurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 110,327 | 41,574 | 262,993 | 114,584 |
Operating Segments [Member] | Global Markets Insurance [Member] | Casualty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 32,033 | 4,396 | 68,979 | 10,298 |
Operating Segments [Member] | Global Markets Insurance [Member] | Professional Liability [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 27,719 | 17,001 | 76,976 | 47,091 |
Operating Segments [Member] | Global Markets Insurance [Member] | Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 20,623 | 8,262 | 47,152 | 25,260 |
Operating Segments [Member] | Global Markets Insurance [Member] | Specialty and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 29,952 | 11,915 | 69,886 | 31,935 |
Operating Segments [Member] | Reinsurance [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 207,604 | 222,960 | 628,352 | 686,232 |
Operating Segments [Member] | Reinsurance [Member] | Property [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 102,329 | 113,560 | 311,498 | 379,575 |
Operating Segments [Member] | Reinsurance [Member] | Casualty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | 58,170 | 65,915 | 173,953 | 163,591 |
Operating Segments [Member] | Reinsurance [Member] | Specialty [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net premiums earned | $ 47,105 | $ 43,485 | $ 142,901 | $ 143,066 |
Condensed Consolidated Guaran57
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Balance Sheet) (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Jun. 30, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
ASSETS: | ||||||
Investments | $ 8,179,810 | $ 7,868,682 | ||||
Cash and cash equivalents | 603,810 | 589,339 | $ 831,270 | $ 531,936 | ||
Insurance balances receivable | 905,401 | 664,815 | ||||
Funds held | 443,670 | 724,021 | ||||
Reinsurance recoverable | 1,449,832 | $ 1,433,109 | 1,340,256 | 1,349,009 | $ 1,301,742 | 1,234,504 |
Reinsurance recoverable on paid losses | 117,110 | 86,075 | ||||
Net deferred acquisition costs | 201,313 | 151,546 | ||||
Goodwill and intangible assets | 485,393 | 324,556 | ||||
Balances receivable on sale of investments | 29,461 | 47,149 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Due from subsidiaries | 0 | 0 | ||||
Other assets | 781,779 | 625,124 | ||||
Total assets | 13,197,579 | 12,421,563 | ||||
LIABILITIES: | ||||||
Reserve for losses and loss expenses | 6,436,579 | $ 6,363,948 | 5,881,165 | 6,052,263 | $ 5,935,678 | 5,766,529 |
Unearned premiums | 1,835,527 | 1,555,313 | ||||
Reinsurance balances payable | 260,225 | 180,060 | ||||
Balances due on purchases of investments | 108,337 | 5,428 | ||||
Senior notes | 799,043 | 798,802 | ||||
Other long-term debt | 23,328 | 19,213 | ||||
Due to subsidiaries | 0 | 0 | ||||
Other liabilities | 179,135 | 203,291 | ||||
Total liabilities | 9,642,174 | 8,643,272 | ||||
Total shareholders’ equity | 3,555,405 | 3,778,291 | 3,673,599 | 3,519,826 | ||
Total liabilities and shareholders’ equity | $ 13,197,579 | 12,421,563 | ||||
Percentage ownership of Subsidiary Issuer | 100.00% | |||||
Consolidation, Eliminations [Member] | ||||||
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 | 0 | ||||
Net deferred acquisition costs | 0 | 0 | ||||
Goodwill and intangible assets | 0 | 0 | ||||
Balances receivable on sale of investments | 0 | 0 | ||||
Investments in subsidiaries | (7,219,643) | (7,847,329) | ||||
Due from subsidiaries | (276,097) | (180,658) | ||||
Other assets | 0 | 0 | ||||
Total assets | (7,495,740) | (8,027,987) | ||||
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 | 0 | ||||
Due to subsidiaries | (276,097) | (180,658) | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | (276,097) | (180,658) | ||||
Total shareholders’ equity | (7,219,643) | (7,847,329) | ||||
Total liabilities and shareholders’ equity | (7,495,740) | (8,027,987) | ||||
Allied World Switzerland (Parent Guarantor) [Member] | ||||||
ASSETS: | ||||||
Investments | 0 | 0 | ||||
Cash and cash equivalents | 30,561 | 32,579 | 38,196 | 10,790 | ||
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 | 3,337,480 | 3,629,301 | ||||
Due from subsidiaries | 216,992 | 147,072 | ||||
Other assets | 2,402 | 1,470 | ||||
Total assets | 3,587,435 | 3,810,422 | ||||
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 | 0 | ||||
Due to subsidiaries | 6,559 | 7,599 | ||||
Other liabilities | 25,471 | 24,532 | ||||
Total liabilities | 32,030 | 32,131 | ||||
Total shareholders’ equity | 3,555,405 | 3,778,291 | ||||
Total liabilities and shareholders’ equity | 3,587,435 | 3,810,422 | ||||
Allied World Bermuda (Subsidiary Issuer) [Member] | ||||||
ASSETS: | ||||||
Investments | 0 | 0 | ||||
Cash and cash equivalents | 1,462 | 1,734 | 2,329 | 2,775 | ||
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 | 3,882,163 | 4,218,028 | ||||
Due from subsidiaries | 45,005 | 19,190 | ||||
Other assets | 2,298 | 3,192 | ||||
Total assets | 3,930,928 | 4,242,144 | ||||
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 | 799,043 | 798,802 | ||||
Other long-term debt | 0 | 0 | ||||
Due to subsidiaries | 7,541 | 6,797 | ||||
Other liabilities | 12,477 | 19,618 | ||||
Total liabilities | 819,061 | 825,217 | ||||
Total shareholders’ equity | 3,111,867 | 3,416,927 | ||||
Total liabilities and shareholders’ equity | 3,930,928 | 4,242,144 | ||||
Other Allied World Subsidiaries [Member] | ||||||
ASSETS: | ||||||
Investments | 8,179,810 | 7,868,682 | ||||
Cash and cash equivalents | 571,787 | 555,026 | $ 790,745 | $ 518,371 | ||
Insurance balances receivable | 905,401 | 664,815 | ||||
Funds held | 443,670 | 724,021 | ||||
Reinsurance recoverable | 1,449,832 | 1,340,256 | ||||
Reinsurance recoverable on paid losses | 117,110 | 86,075 | ||||
Net deferred acquisition costs | 201,313 | 151,546 | ||||
Goodwill and intangible assets | 485,393 | 324,556 | ||||
Balances receivable on sale of investments | 29,461 | 47,149 | ||||
Investments in subsidiaries | 0 | 0 | ||||
Due from subsidiaries | 14,100 | 14,396 | ||||
Other assets | 777,079 | 620,462 | ||||
Total assets | 13,174,956 | 12,396,984 | ||||
LIABILITIES: | ||||||
Reserve for losses and loss expenses | 6,436,579 | 5,881,165 | ||||
Unearned premiums | 1,835,527 | 1,555,313 | ||||
Reinsurance balances payable | 260,225 | 180,060 | ||||
Balances due on purchases of investments | 108,337 | 5,428 | ||||
Senior notes | 0 | 0 | ||||
Other long-term debt | 23,328 | 19,213 | ||||
Due to subsidiaries | 261,997 | 166,262 | ||||
Other liabilities | 141,187 | 159,141 | ||||
Total liabilities | 9,067,180 | 7,966,582 | ||||
Total shareholders’ equity | 4,107,776 | 4,430,402 | ||||
Total liabilities and shareholders’ equity | $ 13,174,956 | $ 12,396,984 |
Condensed Consolidated Guaran58
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Income Statement) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Income Statements, Captions [Line Items] | ||||
Net premiums earned | $ 650,653 | $ 541,737 | $ 1,865,577 | $ 1,609,269 |
Net investment income | 45,667 | 43,412 | 132,978 | 127,824 |
Net realized investment gains (losses) | (113,626) | (35,136) | (88,783) | 104,286 |
Other income | 735 | 1,032 | 2,513 | 1,032 |
Net losses and loss expenses | (416,881) | (336,090) | (1,173,578) | (926,231) |
Acquisition costs | (100,101) | (72,403) | (279,418) | (214,404) |
General and administrative expenses | (105,798) | (88,294) | (311,299) | (264,822) |
Other expense | (1,245) | (6,575) | (4,303) | (6,575) |
Amortization of intangible assets | (2,639) | (633) | (6,091) | (1,900) |
Interest expense | (14,469) | (14,325) | (43,272) | (43,451) |
Foreign exchange gain (loss) | 793 | (278) | (10,369) | (978) |
Income tax (expense) benefit | 5,281 | (1,532) | (1,771) | (24,300) |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
NET (LOSS) INCOME | (51,630) | 30,915 | 82,184 | 359,750 |
Other comprehensive loss: foreign currency translation adjustment, net of tax | (993) | 0 | (4,265) | 0 |
COMPREHENSIVE INCOME (LOSS) | (52,623) | 30,915 | 77,919 | 359,750 |
Consolidation, Eliminations [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Net losses and loss expenses | 0 | 0 | 0 | 0 |
Acquisition costs | 0 | 0 | 0 | 0 |
General and administrative expenses | 0 | 0 | 0 | 0 |
Other expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign exchange gain (loss) | 0 | 0 | 0 | 0 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | 80,743 | (88,673) | (248,379) | (807,124) |
NET (LOSS) INCOME | 80,743 | (88,673) | (248,379) | (807,124) |
Other comprehensive loss: foreign currency translation adjustment, net of tax | 993 | 0 | 4,265 | 0 |
COMPREHENSIVE INCOME (LOSS) | 81,736 | (88,673) | (244,114) | (807,124) |
Allied World Switzerland (Parent Guarantor) [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0 | 2 | 5 | 6 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Net losses and loss expenses | 0 | 0 | 0 | 0 |
Acquisition costs | 0 | 0 | 0 | 0 |
General and administrative expenses | (7,438) | (8,285) | (27,053) | (28,012) |
Other expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 | 0 |
Foreign exchange gain (loss) | 2 | 16 | 9 | 12 |
Income tax (expense) benefit | (472) | 0 | (553) | (86) |
Equity in earnings of consolidated subsidiaries | (43,722) | 39,182 | 109,776 | 387,830 |
NET (LOSS) INCOME | (51,630) | 30,915 | 82,184 | 359,750 |
Other comprehensive loss: foreign currency translation adjustment, net of tax | (993) | 0 | (4,265) | 0 |
COMPREHENSIVE INCOME (LOSS) | (52,623) | 30,915 | 77,919 | 359,750 |
Allied World Bermuda (Subsidiary Issuer) [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net premiums earned | 0 | 0 | 0 | 0 |
Net investment income | 0 | 0 | 0 | 0 |
Net realized investment gains (losses) | 0 | 0 | 0 | 0 |
Other income | 0 | 0 | 0 | 0 |
Net losses and loss expenses | 0 | 0 | 0 | 0 |
Acquisition costs | 0 | 0 | 0 | 0 |
General and administrative expenses | 590 | (182) | 405 | (919) |
Other expense | 0 | 0 | 0 | 0 |
Amortization of intangible assets | 0 | 0 | 0 | 0 |
Interest expense | (13,876) | (13,855) | (41,613) | (41,556) |
Foreign exchange gain (loss) | 0 | 47 | 13 | 68 |
Income tax (expense) benefit | 0 | 0 | 0 | 0 |
Equity in earnings of consolidated subsidiaries | (37,021) | 49,491 | 138,603 | 419,294 |
NET (LOSS) INCOME | (50,307) | 35,501 | 97,408 | 376,887 |
Other comprehensive loss: foreign currency translation adjustment, net of tax | 0 | 0 | 0 | 0 |
COMPREHENSIVE INCOME (LOSS) | (50,307) | 35,501 | 97,408 | 376,887 |
Other Allied World Subsidiaries [Member] | ||||
Condensed Income Statements, Captions [Line Items] | ||||
Net premiums earned | 650,653 | 541,737 | 1,865,577 | 1,609,269 |
Net investment income | 45,667 | 43,410 | 132,973 | 127,818 |
Net realized investment gains (losses) | (113,626) | (35,136) | (88,783) | 104,286 |
Other income | 735 | 1,032 | 2,513 | 1,032 |
Net losses and loss expenses | (416,881) | (336,090) | (1,173,578) | (926,231) |
Acquisition costs | (100,101) | (72,403) | (279,418) | (214,404) |
General and administrative expenses | (98,950) | (79,827) | (284,651) | (235,891) |
Other expense | (1,245) | (6,575) | (4,303) | (6,575) |
Amortization of intangible assets | (2,639) | (633) | (6,091) | (1,900) |
Interest expense | (593) | (470) | (1,659) | (1,895) |
Foreign exchange gain (loss) | 791 | (341) | (10,391) | (1,058) |
Income tax (expense) benefit | 5,753 | (1,532) | (1,218) | (24,214) |
Equity in earnings of consolidated subsidiaries | 0 | 0 | 0 | 0 |
NET (LOSS) INCOME | (30,436) | 53,172 | 150,971 | 430,237 |
Other comprehensive loss: foreign currency translation adjustment, net of tax | (993) | 0 | (4,265) | 0 |
COMPREHENSIVE INCOME (LOSS) | $ (31,429) | $ 53,172 | $ 146,706 | $ 430,237 |
Condensed Consolidated Guaran59
Condensed Consolidated Guarantor Financial Statements (Schedule Of Condensed Consolidating Cash Flows) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | $ 583,323 | $ 667,107 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | (3,962,283) | (5,608,594) |
Purchases of other invested assets | (110,851) | (242,227) |
Sales of trading securities | 3,888,416 | 5,500,176 |
Sales of other invested assets | 160,253 | 243,123 |
Net cash paid for acquisitions | (141,503) | (2,565) |
Other | (102,690) | (44,055) |
Net cash used in investing activities | (268,658) | (154,142) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Dividends paid | (66,784) | (55,064) |
Intercompany dividends paid | 0 | 0 |
Proceeds from the exercise of stock options | 9,184 | 7,640 |
Share repurchases | (246,443) | (166,207) |
Proceeds from other long-term debt | 4,003 | 0 |
Repayment of other long-term debt | (154) | 0 |
Net cash used in financing activities | (300,194) | (213,631) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 14,471 | 299,334 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 589,339 | 531,936 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 603,810 | 831,270 |
Consolidation, Eliminations [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | (712,850) | (575,000) |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | 0 | 0 |
Purchases of other invested assets | 0 | 0 |
Sales of trading securities | 0 | 0 |
Sales of other invested assets | 0 | 0 |
Net cash paid for acquisitions | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Dividends paid | 0 | 0 |
Intercompany dividends paid | 712,850 | 575,000 |
Proceeds from the exercise of stock options | 0 | 0 |
Share repurchases | 0 | 0 |
Proceeds from other long-term debt | 0 | |
Repayment of other long-term debt | 0 | |
Net cash used in financing activities | 712,850 | 575,000 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 |
Allied World Switzerland (Parent Guarantor) [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 302,025 | 241,037 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | 0 | 0 |
Purchases of other invested assets | 0 | 0 |
Sales of trading securities | 0 | 0 |
Sales of other invested assets | 0 | 0 |
Net cash paid for acquisitions | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Dividends paid | (66,784) | (55,064) |
Intercompany dividends paid | 0 | 0 |
Proceeds from the exercise of stock options | 9,184 | 7,640 |
Share repurchases | (246,443) | (166,207) |
Proceeds from other long-term debt | 0 | |
Repayment of other long-term debt | 0 | |
Net cash used in financing activities | (304,043) | (213,631) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (2,018) | 27,406 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 32,579 | 10,790 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 30,561 | 38,196 |
Allied World Bermuda (Subsidiary Issuer) [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 333,128 | 263,554 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | 0 | 0 |
Purchases of other invested assets | 0 | 0 |
Sales of trading securities | 0 | 0 |
Sales of other invested assets | 0 | 0 |
Net cash paid for acquisitions | 0 | 0 |
Other | 0 | 0 |
Net cash used in investing activities | 0 | 0 |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Dividends paid | 0 | 0 |
Intercompany dividends paid | (333,400) | (264,000) |
Proceeds from the exercise of stock options | 0 | 0 |
Share repurchases | 0 | 0 |
Proceeds from other long-term debt | 0 | |
Repayment of other long-term debt | 0 | |
Net cash used in financing activities | (333,400) | (264,000) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | (272) | (446) |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,734 | 2,775 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 1,462 | 2,329 |
Other Allied World Subsidiaries [Member] | ||
Condensed Cash Flow Statements, Captions [Line Items] | ||
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES: | 661,020 | 737,516 |
CASH FLOWS USED IN INVESTING ACTIVITIES: | ||
Purchases of trading securities | (3,962,283) | (5,608,594) |
Purchases of other invested assets | (110,851) | (242,227) |
Sales of trading securities | 3,888,416 | 5,500,176 |
Sales of other invested assets | 160,253 | 243,123 |
Net cash paid for acquisitions | (141,503) | (2,565) |
Other | (102,690) | (44,055) |
Net cash used in investing activities | (268,658) | (154,142) |
CASH FLOWS PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Dividends paid | 0 | 0 |
Intercompany dividends paid | (379,450) | (311,000) |
Proceeds from the exercise of stock options | 0 | 0 |
Share repurchases | 0 | 0 |
Proceeds from other long-term debt | 4,003 | |
Repayment of other long-term debt | (154) | |
Net cash used in financing activities | (375,601) | (311,000) |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 16,761 | 272,374 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 555,026 | 518,371 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 571,787 | $ 790,745 |
Condensed Consolidated Guaran60
Condensed Consolidated Guarantor Financial Statements (Notes to Consolidated Guarantor Financial Statements) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ||
Cash Dividends Paid to Parent Company by Consolidated Subsidiaries | $ 333,400 | $ 264,000 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Thousands | Oct. 02, 2015 | Jul. 02, 2015 | Apr. 02, 2015 | Jan. 02, 2015 | Oct. 02, 2014 | Jul. 02, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 |
Subsequent Event [Line Items] | |||||||||||
Dividends paid per common share | $ 0.260 | $ 0.225 | $ 0.710 | $ 0.559 | |||||||
Investment commitment | $ 623,941 | $ 623,941 | $ 483,214 | ||||||||
Common shares | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends paid per common share | $ 0.26 | $ 0.225 | $ 0.225 | $ 0.225 | $ 0.225 | ||||||
Common shares | Subsequent event | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Dividends paid per common share | $ 0.260 |