Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | PLATINUM UNDERWRITERS HOLDINGS LTD | ||
Entity Central Index Key | 1171500 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $1,673,028,121 | ||
Entity Common Stock, Shares Outstanding | 24,845,418 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments [Abstract] | ||
Fixed maturity available-for-sale securities at fair value (amortized cost - $1,677,198 and $1,799,888, respectively) | $1,782,485 | $1,857,870 |
Fixed maturity trading securities at fair value (amortized cost - $87,743 and $97,959, respectively) | 90,569 | 103,395 |
Short-term investments | 0 | 66,679 |
Total investments | 1,873,054 | 2,027,944 |
Cash and cash equivalents | 1,434,984 | 1,464,418 |
Accrued investment income | 18,815 | 20,026 |
Reinsurance premiums receivable | 125,400 | 138,454 |
Reinsurance recoverable on unpaid and paid losses and loss adjustment expenses | 2,943 | 1,057 |
Prepaid reinsurance premiums | 1,979 | 1,032 |
Funds held by ceding companies | 89,581 | 119,241 |
Deferred acquisition costs | 27,592 | 31,103 |
Reinsurance deposit assets | 82,937 | 79,303 |
Deferred tax assets | 17,523 | 25,141 |
Other assets | 12,281 | 16,166 |
Total assets | 3,687,089 | 3,923,885 |
Liabilities | ||
Unpaid losses and loss adjustment expenses | 1,435,698 | 1,671,365 |
Unearned premiums | 111,348 | 126,300 |
Debt obligations | 250,000 | 250,000 |
Commissions payable | 50,258 | 78,791 |
Other liabilities | 101,760 | 50,722 |
Total liabilities | 1,949,064 | 2,177,178 |
Shareholders' Equity | ||
Common shares, $0.01 par value, 200,000,000 shares authorized, 24,840,539 and 28,142,977 shares issued and outstanding, respectively | 248 | 281 |
Additional paid-in capital | 2,415 | 10,711 |
Accumulated other comprehensive income | 92,689 | 48,084 |
Retained earnings | 1,642,673 | 1,687,631 |
Total shareholders' equity | 1,738,025 | 1,746,707 |
Total liabilities and shareholders' equity | $3,687,089 | $3,923,885 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Investments [Abstract] | ||
Fixed maturity available-for-sale securities, amortized cost | $1,677,198 | $1,799,888 |
Fixed maturity trading securities, amortized cost | $87,743 | $97,959 |
Shareholders' Equity | ||
Common shares, par value (in dollars per share) | $0.01 | $0.01 |
Common shares, authorized (in shares) | 200,000,000 | 200,000,000 |
Common shares, issued (in shares) | 24,840,539 | 28,142,977 |
Common shares, outstanding (in shares) | 24,840,539 | 28,142,977 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||
Net premiums earned | $506,636 | $553,413 | $566,496 |
Net investment income (expense) | 69,421 | 72,046 | 99,947 |
Net realized gains (losses) on investments | 2,762 | 23,920 | 88,754 |
Total other-than-temporary impairments | -991 | -631 | 211 |
Portion of impairment losses recognized in other comprehensive income | 151 | -1,402 | -3,242 |
Net impairment losses on investments | -840 | -2,033 | -3,031 |
Other income (expense) | 3,180 | 3,477 | -239 |
Total revenue | 581,159 | 650,823 | 751,927 |
Expenses: | |||
Net losses and loss adjustment expenses | 183,401 | 167,446 | 183,660 |
Net acquisition expenses | 113,804 | 123,767 | 115,437 |
Operating expenses | 83,309 | 82,714 | 80,453 |
Net foreign currency exchange losses (gains) | -512 | -234 | 1,055 |
Interest expense | 19,155 | 19,125 | 19,098 |
Total expenses | 399,157 | 392,818 | 399,703 |
Income (loss) before income taxes | 182,002 | 258,005 | 352,224 |
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 |
Net income (loss) | 164,768 | 223,278 | 327,228 |
Earnings (loss) per common share: | |||
Basic earnings (loss) per common share | $6.28 | $7.46 | $9.67 |
Diluted earnings (loss) per common share | $6.21 | $7.35 | $9.60 |
Shareholder dividends: | |||
Common shareholder dividends declared | $8,329 | $9,434 | $10,747 |
Dividends declared per common share | $0.32 | $0.32 | $0.32 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Loss) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Comprehensive Income (Loss) [Abstract] | |||||||||||
Net income (loss) | $35,728 | $29,125 | $36,180 | $63,735 | $48,623 | $38,285 | $49,854 | $86,516 | $164,768 | $223,278 | $327,228 |
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | -991 | -631 | 211 | ||||||||
Change in net unrealized gains and losses on all other securities | 52,828 | -76,152 | 77,652 | ||||||||
Total change in net unrealized gains and losses | 51,837 | -76,783 | 77,863 | ||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | |||||||||||
Net realized gains (losses) on investments | -5,372 | -27,243 | -89,780 | ||||||||
Net impairment losses on investments | 840 | 2,033 | 3,031 | ||||||||
Total reclassifications to net income (loss) | -4,532 | -25,210 | -86,749 | ||||||||
Other comprehensive income (loss) before income taxes | 47,305 | -101,993 | -8,886 | ||||||||
Income tax (expense) benefit | -2,700 | 12,387 | -59 | ||||||||
Other comprehensive income (loss) | 44,605 | -89,606 | -8,945 | ||||||||
Comprehensive income (loss) | $209,373 | $133,672 | $318,283 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Retained Earnings [Member] |
In Thousands, unless otherwise specified | |||||
Balances at Dec. 31, 2011 | $355 | $313,730 | $146,635 | $1,230,139 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares | 3 | 3,612 | |||
Amortization of share-based compensation | 8,226 | ||||
Repurchase of common shares | 31 | 115,671 | 0 | ||
Other comprehensive income (loss) | -8,945 | -8,945 | |||
Net income (loss) | 327,228 | 327,228 | |||
Common share dividends | -10,747 | 10,747 | |||
Balances at Dec. 31, 2012 | 1,894,534 | 327 | 209,897 | 137,690 | 1,546,620 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares | 8 | 22,290 | |||
Amortization of share-based compensation | 8,931 | ||||
Repurchase of common shares | 54 | 230,407 | 72,833 | ||
Other comprehensive income (loss) | -89,606 | -89,606 | |||
Net income (loss) | 223,278 | 223,278 | |||
Common share dividends | -9,434 | 9,434 | |||
Balances at Dec. 31, 2013 | 1,746,707 | 281 | 10,711 | 48,084 | 1,687,631 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common shares | 3 | -2,376 | |||
Amortization of share-based compensation | 8,331 | ||||
Repurchase of common shares | 36 | 14,251 | 201,397 | ||
Other comprehensive income (loss) | 44,605 | 44,605 | |||
Net income (loss) | 164,768 | 164,768 | |||
Common share dividends | -8,329 | 8,329 | |||
Balances at Dec. 31, 2014 | $1,738,025 | $248 | $2,415 | $92,689 | $1,642,673 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Activities: | |||
Net income (loss) | $164,768 | $223,278 | $327,228 |
Adjustments to reconcile net income (loss) to cash provided by (used in) operating activities: | |||
Net realized (gains) losses on investments | -2,762 | -23,920 | -88,754 |
Net impairment losses on investments | 840 | 2,033 | 3,031 |
Net foreign currency exchange losses (gains) | -512 | -234 | 1,055 |
Amortization of share-based compensation | 14,445 | 14,518 | 10,137 |
Other amortization and depreciation | 10,343 | 8,761 | 5,100 |
Deferred income tax expense (benefit) | 4,917 | 10,019 | 8,791 |
Net fixed maturity trading securities activities | 1,136 | 6,993 | 13,453 |
Changes in: | |||
Accrued investment income | 1,013 | 1,299 | 8,702 |
Reinsurance premiums receivable | 11,031 | -10,300 | 30,936 |
Funds held by ceding companies | 28,058 | -4,784 | -19,295 |
Deferred acquisition costs | 3,309 | -2,967 | 664 |
Reinsurance deposit assets | -3,634 | -28,610 | -50,693 |
Net unpaid and paid losses and loss adjustment expenses | -218,783 | -277,482 | -434,525 |
Net unearned premiums | -14,568 | 13,708 | -1,496 |
Commissions payable | -28,031 | 13,969 | 2,105 |
Other operating assets and liabilities | 43,657 | -2,843 | 18,224 |
Net cash provided by (used in) operating activities | 15,227 | -56,562 | -165,337 |
Proceeds from the sales of: | |||
Fixed maturity available-for-sale securities | 88,629 | 203,571 | 747,755 |
Short-term investments | 6,613 | 11,857 | 49,447 |
Proceeds from maturities or paydowns of: | |||
Fiixed maturity available-for-sale securities | 130,506 | 202,136 | 280,122 |
Short-term investments | 126,795 | 259,076 | 707,756 |
Acquisitions of: | |||
Fixed maturity available-for-sale securities | -100,026 | -406,078 | -233,923 |
Short-term investments | -66,036 | -165,136 | -331,757 |
Acquisitions of furniture, equipment and other assets | 0 | -6,890 | 0 |
Net cash provided by (used in) investing activities | 186,481 | 98,536 | 1,219,400 |
Financing Activities: | |||
Dividends paid to common shareholders | -8,329 | -9,434 | -10,747 |
Repurchase of common shares | -215,684 | -303,294 | -115,702 |
Proceeds from share-based compensation, including income tax benefits | 1,013 | 24,376 | 4,537 |
Net cash provided by (used in) financing activities | -223,000 | -288,352 | -121,912 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | -8,142 | -9,599 | -4,266 |
Net increase (decrease) in cash and cash equivalents | -29,434 | -255,977 | 927,885 |
Cash and cash equivalents at beginning of year | 1,464,418 | 1,720,395 | 792,510 |
Cash and cash equivalents at end of year | 1,434,984 | 1,464,418 | 1,720,395 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid, net of refunds | 7,782 | 24,371 | 13,685 |
Interest paid | $18,750 | $18,750 | $18,750 |
Basis_of_Presentation_and_Sign
Basis of Presentation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of presentation and significant accounting policies | 1. Basis of Presentation and Significant Accounting Policies |
Basis of Presentation and Consolidation | |
Platinum Underwriters Holdings, Ltd. (“Platinum Holdings”) is a holding company domiciled in Bermuda. Through our reinsurance subsidiaries, we provide property and marine, casualty and finite risk reinsurance coverages to a diverse clientele of insurers and select reinsurers on a worldwide basis. | |
Platinum Holdings and its consolidated subsidiaries (collectively, the “Company”) include Platinum Holdings, Platinum Underwriters Bermuda, Ltd. (“Platinum Bermuda”), Platinum Underwriters Reinsurance, Inc. (“Platinum US”), Platinum Regency Holdings (“Platinum Regency”), Platinum Underwriters Finance, Inc. (“Platinum Finance”) and Platinum Administrative Services, Inc. (“PASI”). The terms "we," "us," and "our" refer to the Company, unless the context otherwise indicates. | |
We operate through our licensed reinsurance subsidiaries, Platinum Bermuda, a Bermuda reinsurance company, and Platinum US, a U.S. reinsurance company. Platinum Regency is an intermediate holding company based in Ireland and a wholly owned subsidiary of Platinum Holdings. Platinum Finance is an intermediate holding company based in the U.S. and a wholly owned subsidiary of Platinum Regency. Platinum Bermuda is a wholly owned subsidiary of Platinum Holdings and Platinum US is a wholly owned subsidiary of Platinum Finance. PASI is a wholly owned subsidiary of Platinum Finance that provides administrative support services to the Company. | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All material inter-company transactions and accounts have been eliminated in preparing these consolidated financial statements. | |
The preparation of financial statements requires us 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 may differ materially from these estimates. The major estimates used in the preparation of the Company's consolidated financial statements, and therefore considered to be critical accounting estimates, include, but are not limited to, premiums written and earned, unpaid losses and loss adjustment expenses (“LAE”), valuation of investments and income taxes. In addition, estimates are used in our risk transfer analysis for assumed and ceded reinsurance transactions. Results of changes in estimates are reflected in results of operations in the period in which the change is made. | |
Merger Agreement | |
On November 23, 2014, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with RenaissanceRe Holdings Ltd., a Bermuda exempted company (“RenaissanceRe”), and Port Holdings Ltd., a Bermuda exempted company and wholly owned subsidiary of RenaissanceRe (the “Acquisition Sub”). Subject to the terms and conditions of the Merger Agreement, Acquisition Sub will be merged with and into the Company (the “Merger”), with the Company continuing as the surviving company and as a wholly owned subsidiary of RenaissanceRe. | |
Pursuant to the terms of the Merger Agreement, upon the closing of the Merger, shareholders of the Company will be entitled to receive, in exchange for each share of common stock they hold at the effective time of the Merger, either stock or cash consideration with a value equal to the sum of (i) an amount of cash equal to $66.00, (ii) 0.6504 common shares of RenaissanceRe, par value $1.00 per share, or (iii) 0.2960 RenaissanceRe common shares and an amount of cash equal to $35.96, in each case less any applicable withholding taxes and without interest, plus cash in lieu of any fractional RenaissanceRe common shares such shareholder would otherwise be entitled to receive. The Merger is subject to the approval of the Company’s shareholders and other customary closing conditions. There can be no assurance that all such closing conditions will be satisfied and there is no assurance that the Merger will occur. | |
In addition, on February 10, 2015, Platinum Holdings’ board of directors declared, subject to certain conditions, a special dividend of $10.00 per common share in connection with its pending Merger with RenaissanceRe. The special dividend is payable prior to the effective time of the Merger on the closing date of the Merger to shareholders of record at the close of business on the last business day prior to the closing date. The special dividend is conditioned on the Merger having been approved by the shareholders of the Company at a special meeting of its shareholders on February 27, 2015 (or any adjournment or postponement thereof). Platinum Holdings expects to incur approximately $22.0 million of expenses in 2015 associated with the Merger. | |
Significant Accounting Policies | |
Investments | |
Investments we own that we may not have the positive intent to hold until maturity are classified as available-for-sale and reported at fair value, with related net unrealized gains or losses excluded from net income or loss, and included in shareholders’ equity as a component of accumulated other comprehensive income, net of deferred taxes. Investments we own and have the intent to sell prior to maturity, or securities for which we have elected the fair value option, are classified as trading securities. Trading securities are reported at fair value, with fair value adjustments included in net realized gains on investments and the related deferred income tax included in income tax expense or benefit in the consolidated statements of operations. | |
Short-term investments are comprised of securities with a maturity of 90 days or greater but one year or less from the date of acquisition. Our U.S. dollar denominated short-term investments are accounted for as available-for-sale. We have elected to account for our non-U.S. dollar denominated short-term investments using the fair value option and they are accounted for as trading. | |
The fair value of our fixed maturity securities and short-term investments is based on prices generally obtained from index providers, pricing vendors or broker-dealers. Index providers utilize external sources and pricing models to value index-eligible securities across numerous sectors and asset classes. Pricing vendors collect, edit, maintain, evaluate and model data on a large number of securities utilizing primarily market data and observable inputs. Broker-dealers value securities through proprietary trading desks primarily based on observable inputs. | |
Premiums and discounts on fixed maturity securities are amortized into net investment income over the life or estimated life of the security using the prospective effective yield method. Premiums and discounts on mortgage-backed and asset-backed securities that are amortized into net investment income also consider prepayment assumptions. These assumptions are consistent with the current interest rate and economic environment. The prospective adjustment method is used to adjust the value of mortgage-backed and asset-backed securities. Adjustments to the amortized cost of U.S. Treasury Inflation-Protected Securities resulting from changes in the consumer price index are recognized in net investment income. Realized gains and losses on the sale of securities are determined using the specific identification method. | |
We routinely review our available-for-sale investments to determine whether unrealized losses represent temporary changes in fair value or are the result of an other-than-temporary impairment (“OTTI”). The process of determining whether a security is other-than-temporarily impaired requires judgment and involves analyzing many factors. These factors include the overall financial condition of the issuer, the length of time and magnitude of an unrealized loss, specific credit events, changes in credit ratings, the collateral structure, the credit support that may be applicable, discussions with our investment managers and other public information. | |
In addition, we evaluate projected cash flows in order to determine if a credit impairment has occurred. The amount of the credit loss of an impaired debt security is the difference between the amortized cost and the greater of (i) the present value of expected future cash flows and (ii) the fair value of the security. We recognize the portion of OTTI related to a credit loss in net income or loss in the consolidated statements of operations and the portion of OTTI related to all other factors is recognized in accumulated other comprehensive income in the consolidated balance sheets. | |
We also consider our intent to sell available-for-sale securities and the likelihood that we will be required to sell these securities before an unrealized loss is recovered. Our intent to sell a security is based, in part, on adverse changes in the creditworthiness of a debt issuer, pricing and other market conditions and our anticipated net cash flows. If we determine that we intend to sell a security that is in an unrealized loss position, then the unrealized loss related to such a security, representing the difference between the security’s amortized cost and its fair value, is recognized as a net impairment loss in the consolidated statements of operations at the time we determine our intent is to sell. | |
Cash and Cash Equivalents | |
Cash and cash equivalents include demand deposits, time deposits, money market instruments and both U.S. Government and non-U.S. government securities. Cash equivalents are generally carried at amortized cost, which approximates fair value, and are highly liquid investments with a maturity of less than 90 days at the date of acquisition. | |
Premiums Written and Earned | |
Assumed reinsurance premiums earned are recognized as revenues in the consolidated statements of operations, net of any ceded premiums for retrocessional coverage purchased. Both assumed and ceded premiums written are earned generally on a basis proportionate with the coverage period. On the consolidated balance sheets, unearned premiums represent premiums written not yet recognized as revenue and prepaid reinsurance premiums represent ceded premiums written not yet earned. | |
Due to the nature of reinsurance, ceding companies routinely report and remit premiums to us subsequent to the contract coverage period. Consequently, premiums written and receivable include amounts reported by the ceding companies, supplemented by our estimates of premiums that are written but not reported. The estimation of written premiums may be affected by early cancellation, election of contract provisions for cut-off and return of unearned premiums or other contract disruptions. The time lag involved in the process of reporting premiums is shorter than the lag in reporting losses. Premiums are generally reported to us in full within two years from the inception of the contract. | |
In addition to estimating premiums written, we estimate the earned portion of premiums written. The amounts we recorded on the consolidated balance sheets as estimated premiums receivable and unearned premiums are based on estimated written and earned premiums, respectively, and are subject to judgment and uncertainty. Any adjustments to written and earned premiums, and the related losses and acquisition expenses, are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. These adjustments could be material and could significantly impact earnings in the period they are recorded although the potential net impact of changes in premiums earned on our results of operations is reduced by the accrual of losses and acquisition expenses related to such premiums. | |
Certain of our reinsurance contracts include provisions that adjust premiums and/or reinstate reinsurance coverage limits based upon the loss experience under the contracts. We take these provisions into account when determining our estimates of premiums written and earned. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of a reinsurance contract to its full amount, generally coinciding with the payment of losses by the reinsurer. These premiums relate to and are earned over the future coverage period and the remaining exposure from the underlying policies. Any unearned premiums existing at the time of the reinstatement are earned immediately in proportion to the contract loss limits utilized. Additional premiums are premiums that are triggered by losses and are earned immediately. Premiums written and earned include estimates of reinstatement premiums and additional premiums based on reinsurance contract provisions and loss experience and rely on the estimates of unpaid losses and LAE. | |
We may record an allowance for uncollectible premiums if we believe an allowance is appropriate in light of our historical experience, the general profile of our ceding companies and our ability to contractually offset premiums receivable against losses and LAE and commission amounts payable to the same parties. | |
Funds Held by Ceding Companies | |
We write business on a funds held basis. Under these contractual arrangements, the ceding company holds the net funds that would otherwise be remitted to us and generally credits the funds held balance with interest income at a negotiated rate established in the contract. Interest income on funds held by ceding companies is included in net investment income in the consolidated statements of operations. | |
Deferred Acquisition Costs | |
Acquisition costs consist primarily of commissions and brokerage expenses that are incremental direct costs related to the successful acquisition of new or renewal contracts and are deferred and amortized over the period that the corresponding premiums are earned. An analysis of the recoverability of deferred acquisition costs is performed by determining if the sum of the future earned premiums and anticipated investment income is greater than the expected future losses and LAE. A premium deficiency is recognized if losses and LAE are expected to exceed the related unearned premiums. Any adjustments are reflected in the results of operations in the period in which they are made. Deferred acquisition costs amortized in 2014, 2013 and 2012 were $86.4 million, $92.0 million and $86.8 million, respectively, and are included in net acquisition expenses in the consolidated statements of operations. | |
Unpaid Losses and Loss Adjustment Expenses | |
Unpaid losses and LAE are estimates of future amounts required to pay losses and LAE for claims under our assumed reinsurance contracts that have occurred at or before the balance sheet date. Unpaid losses and LAE are estimated based upon information received from ceding companies regarding our liability for unpaid losses and LAE, adjusted for our estimates of losses and LAE for which ceding company reports have not been received, our historical experience for unreported claims and industry experience for unreported claims. Unpaid losses and LAE include the cost of claims that were reported, but not yet paid, and estimates of the cost of claims incurred but not yet reported. In addition, we estimate our unallocated loss adjustment expense (“ULAE”) reserves based on our administrative costs of managing claims. | |
Unpaid losses and LAE represent management’s best estimate at a given point in time and are subject to the effects of trends in loss severity and frequency. These estimates are reviewed regularly and adjusted as experience develops or new information becomes available. Any adjustments are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. It is possible that the ultimate liability may differ materially from such estimates. | |
Retrocessional Reinsurance | |
Reinsurance is the transfer of risk, by contract, from an insurance company to a reinsurer for consideration of premium. Retrocessional reinsurance is reinsurance ceded by a reinsurer to another reinsurer, referred to as a retrocessionaire, to reinsure against all or a portion of its reinsurance written. We buy retrocessional reinsurance, which is insurance for our own account, to reduce liability on individual risks, protect against catastrophic losses and obtain additional underwriting capacity. Premiums written, premiums earned, net losses and LAE, and acquisition expenses in our statements of operations reflect the net effects of assumed and ceded reinsurance transactions. | |
Estimated amounts recoverable from retrocessionaires on unpaid losses and LAE are determined based on our estimate of assumed ultimate losses and LAE and the terms and conditions of our retrocessional contracts. Reinsurance recoverable on unpaid and paid losses and LAE and prepaid reinsurance premiums are recorded as assets in the consolidated balance sheets. | |
Reinsurance Deposit Assets and Liabilities and Other Reinsurance Contracts | |
We elected to record at fair value certain assumed reinsurance contracts which by their terms preclude the use of (re)insurance accounting, including those accounted for as deposits. The deposit method of accounting is used for reinsurance contracts that do not transfer sufficient insurance risk. The analysis of risk transfer involves evaluating significant assumptions relating to the amount and timing of expected cash flows, as well as the interpretation of underlying contract terms. Our reinsurance deposit assets recorded at fair value include terms and conditions that have unique variable investment performance factors. | |
Interest income or expense related to deposit assets or liabilities is recognized as incurred and is recorded in other income or expense in the consolidated statements of operations. Profit margins are earned over the settlement period of the contractual obligations. | |
Changes in the fair value of these contracts are recorded in other income or expense in the consolidated statements of operations. | |
Debt Obligations and Deferred Debt Issuance Costs | |
Costs incurred in issuing debt are capitalized and amortized over the life of the debt. The amortization of these costs is included in interest expense in the consolidated statements of operations. | |
Income Taxes | |
We provide for income taxes for our operations in income tax paying jurisdictions. Our provision relies on estimates and interpretations of currently enacted tax laws. We recognize deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Such temporary differences are primarily due to tax basis discounts on unpaid losses and LAE and unearned premiums, deferred acquisition costs and investments. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Any adjustments to deferred income taxes are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. Any adjustments could be material and could significantly impact earnings in the period they are recorded. | |
Share-Based Compensation | |
We recognize share-based compensation expense for service, performance, and market-based restricted share units, restricted shares, and share options. Service awards granted under the share incentive plan typically vest annually in equal amounts over a period of four years. Performance and market-based awards granted under the share incentive plan typically vest at the end of a three year period. | |
The majority of our share-based compensation awards are accounted for as equity awards and are settled in common shares. These awards are recorded in additional paid-in capital on the consolidated balance sheets. The fair value of these awards is measured at the grant date and expensed over the service or performance period. A forfeiture rate assumption is included in the determination of the share-based compensation expense. | |
The share-based compensation awards that are settled in cash are accounted for as liability awards and are recorded in other liabilities on the consolidated balance sheets. The fair value of these awards is measured at the grant date and re-measured at the end of each reporting period based on the market price of our common shares. The current fair value is expensed over the remaining service or performance period with changes in the fair value recorded in our statements of operations. | |
Share-based compensation expense generally is reversible if the service condition is not met. Share-based compensation expense related to performance-based awards is reversible if there is a decline in either the performance factors or the market price of our common shares. Share-based compensation expense related to market-based awards is not reversible if the market conditions are not met. | |
Foreign Currency Exchange Gains and Losses | |
Our reporting and functional currency, and that of our reinsurance subsidiaries, is U.S. dollars. Transactions conducted in currencies other than our reporting currency are re-measured into U.S. dollars and the resulting foreign exchange gains and losses are included in net foreign currency exchange gains or losses in the consolidated statements of operations. Foreign currency exchange gains and losses related to securities classified as trading securities are also included in net foreign currency exchange gains and losses in the consolidated statements of operations. | |
Earnings Per Common Share | |
Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the basic earnings per common share calculation components adjusted for the dilutive effect of the conversion of share options, restricted shares and restricted share units. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||
Investments | 2. Investments | ||||||||||||||||||||
Fixed Maturity Available-for-sale Securities | |||||||||||||||||||||
Our fixed maturity available-for-sale securities are U.S. dollar denominated securities. The following table sets forth our fixed maturity available-for-sale securities as of December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||||
Included in Accumulated Other Comprehensive Income | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit portion of OTTI(1) | |||||||||||||||||
December 31, 2014: | |||||||||||||||||||||
U.S. Government | $ | 49,386 | $ | 99 | $ | - | $ | 49,485 | $ | - | |||||||||||
U.S. Government agencies | 87,533 | 1,931 | 137 | 89,327 | - | ||||||||||||||||
Municipal bonds | 1,116,672 | 90,392 | 715 | 1,206,349 | - | ||||||||||||||||
Non-U.S. governments | 24,998 | 84 | - | 25,082 | - | ||||||||||||||||
Corporate bonds | 204,210 | 8,121 | 2,242 | 210,089 | 458 | ||||||||||||||||
Commercial mortgage-backed securities | 55,747 | 3,356 | 223 | 58,880 | - | ||||||||||||||||
Residential mortgage-backed securities | 122,475 | 2,217 | 295 | 124,397 | 87 | ||||||||||||||||
Asset-backed securities | 16,177 | 2,808 | 109 | 18,876 | - | ||||||||||||||||
Total fixed maturity available-for-sale securities | $ | 1,677,198 | $ | 109,008 | $ | 3,721 | $ | 1,782,485 | $ | 545 | |||||||||||
December 31, 2013: | |||||||||||||||||||||
U.S. Government | $ | 4,561 | $ | 204 | $ | - | $ | 4,765 | $ | - | |||||||||||
U.S. Government agencies | 51,847 | - | 725 | 51,122 | - | ||||||||||||||||
Municipal bonds | 1,220,869 | 54,333 | 5,955 | 1,269,247 | - | ||||||||||||||||
Non-U.S. governments | 39,973 | 541 | - | 40,514 | - | ||||||||||||||||
Corporate bonds | 224,095 | 6,704 | 3,564 | 227,235 | - | ||||||||||||||||
Commercial mortgage-backed securities | 72,641 | 4,982 | 132 | 77,491 | - | ||||||||||||||||
Residential mortgage-backed securities | 169,699 | 1,335 | 1,069 | 169,965 | 331 | ||||||||||||||||
Asset-backed securities | 16,203 | 1,657 | 329 | 17,531 | 305 | ||||||||||||||||
Total fixed maturity available-for-sale securities | $ | 1,799,888 | $ | 69,756 | $ | 11,774 | $ | 1,857,870 | $ | 636 | |||||||||||
(1) The non-credit portion of OTTI represents the amount of unrealized losses on impaired securities that were not recorded in the consolidated statements of operations as of the reporting date. These unrealized losses are included in gross unrealized losses as of December 31, 2014 and 2013. | |||||||||||||||||||||
Fixed Maturity Trading Securities | |||||||||||||||||||||
Our fixed maturity trading securities are non-U.S. dollar denominated securities that, along with our non-U.S. dollar short-term trading investments and non-U.S. dollar cash and cash equivalents, are generally held for the purposes of hedging our net non-U.S. dollar denominated reinsurance liabilities. Our fixed maturity trading securities were all non-U.S. governments and the fair value was $90.6 million and $103.4 million as of December 31, 2014 and 2013, respectively. | |||||||||||||||||||||
Maturities | |||||||||||||||||||||
The following table sets forth the amortized cost and fair value of our fixed maturity available-for-sale and trading securities by stated maturity as of December 31, 2014 ($ in thousands): | |||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
Due in one year or less | $ | 170,160 | $ | 172,017 | |||||||||||||||||
Due from one to five years | 416,440 | 434,277 | |||||||||||||||||||
Due from five to ten years | 598,084 | 631,367 | |||||||||||||||||||
Due in ten or more years | 385,858 | 433,240 | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 194,399 | 202,153 | |||||||||||||||||||
Total | $ | 1,764,941 | $ | 1,873,054 | |||||||||||||||||
The actual maturities of our fixed maturity available-for-sale and trading securities could differ from stated maturities due to call or prepayment provisions. | |||||||||||||||||||||
Short-term Investments | |||||||||||||||||||||
We held no short-term investments as of December 31, 2014. As of December 31, 2013, short-term investments of $66.7 million consisted of non-U.S. dollar denominated securities issued by non-U.S. governments. The fair value adjustments on short-term investments recognized as trading under the fair value option contributed no significant gains or losses on investments for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
For the year ended December 31, 2014, we had purchases of $66.0 million, proceeds from maturities of $126.8 million and proceeds from sales of $6.6 million from non-U.S. dollar denominated short-term investments accounted for as trading in accordance with the fair value option that were included in investing activities on the statements of cash flows. For the year ended December 31, 2013, we had purchases of $165.1 million, proceeds from maturities of $209.9 million and proceeds from sales of $11.9 million from non-U.S. dollar denominated short-term investments accounted for as trading in accordance with the fair value option that were included in investing activities on the statements of cash flows. For the year ended December 31, 2012, we had purchases of $269.3 million, proceeds from maturities of $286.8 million and proceeds from sales of $49.4 million from non-U.S. dollar denominated short-term investments accounted for as trading in accordance with the fair value option that were included in investing activities on the statements of cash flows. | |||||||||||||||||||||
Other-Than-Temporary Impairments | |||||||||||||||||||||
We analyze the creditworthiness of our available-for-sale securities by reviewing various performance metrics of the issuer. We determined that none of our government bonds, government agencies or municipal bonds were other-than-temporarily impaired for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||
The following table sets forth the net impairment losses on investments for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Corporate bonds | $ | 454 | $ | - | $ | - | |||||||||||||||
Commercial mortgage-backed securities | - | - | 30 | ||||||||||||||||||
Non-agency residential mortgage-backed securities | 385 | 1,439 | 2,896 | ||||||||||||||||||
Sub-prime asset-backed securities | 1 | 594 | 105 | ||||||||||||||||||
Net impairment losses on investments | $ | 840 | $ | 2,033 | $ | 3,031 | |||||||||||||||
For the year ended December 31, 2014, we recorded other-than-temporary impairment losses on corporate bonds of $0.5 million related to one security rated below investment grade that is subject to a high degree of credit risk. Residential mortgage-backed securities (“RMBS”) include U.S. Government agency RMBS and non-agency RMBS. Asset-backed securities (“ABS”) include securities with underlying sub-prime mortgages as collateral. We determined that none of our U.S. Government agency RMBS were other-than-temporarily impaired for the years ended December 31, 2014, 2013 and 2012. We analyze our non-agency RMBS and sub-prime ABS on a periodic basis using default loss models based on the performance of the underlying loans. Performance metrics include delinquencies, defaults, foreclosures, prepayment speeds and cumulative losses incurred. The expected losses for a mortgage pool are compared with the current level of credit support, which generally represents the point at which our security would experience losses. We evaluate projected cash flows as well as other factors in order to determine if a credit impairment has occurred. As of December 31, 2014, the single largest unrealized loss within our RMBS portfolio was $0.1 million related to a non-agency RMBS security with an amortized cost of $4.0 million. As of December 31, 2014, there were no sub-prime ABS in an unrealized loss position. | |||||||||||||||||||||
The following table sets forth a summary of the cumulative credit losses recognized on our fixed maturity available-for-sale securities for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance, beginning of year | $ | 31,603 | $ | 40,219 | $ | 61,841 | |||||||||||||||
Credit losses on securities not previously impaired | 454 | - | 42 | ||||||||||||||||||
Additional credit losses on securities previously impaired | 386 | 2,033 | 2,989 | ||||||||||||||||||
Reduction for paydowns and securities sold | (5,372 | ) | (10,012 | ) | (23,766 | ) | |||||||||||||||
Reduction for increases in cash flows expected to be collected | (1,168 | ) | (637 | ) | (887 | ) | |||||||||||||||
Balance, end of year | $ | 25,903 | $ | 31,603 | $ | 40,219 | |||||||||||||||
For the year ended December 31, 2014, total cumulative credit losses decreased primarily due to principal paydowns. As of December 31, 2014, total cumulative credit losses were related to corporate bonds, non-agency RMBS and sub-prime ABS. The cumulative credit losses we recorded on non-agency RMBS and sub-prime ABS of $25.5 million were on fifteen securities issued from 2004 to 2007. As of December 31, 2014, 16.0% of the mortgages backing these securities were 90 days or more past due and 9.4% of the mortgages had incurred cumulative losses. For these securities, the expected losses for the underlying mortgages were greater than the remaining average credit support of 2.7%. | |||||||||||||||||||||
Gross Unrealized Losses | |||||||||||||||||||||
The following table sets forth our gross unrealized losses on securities classified as fixed maturity available-for-sale aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Less than twelve months: | |||||||||||||||||||||
U.S. Government agencies | $ | 14,472 | $ | 137 | $ | 41,122 | $ | 725 | |||||||||||||
Municipal bonds | - | - | 247,873 | 5,955 | |||||||||||||||||
Corporate bonds | 32,017 | 1,296 | 90,789 | 3,486 | |||||||||||||||||
Commercial mortgage-backed securities | - | - | 2,938 | 1 | |||||||||||||||||
Residential mortgage-backed securities | 1,912 | 23 | 35,910 | 172 | |||||||||||||||||
Asset-backed securities | 13,491 | 109 | 13,576 | 24 | |||||||||||||||||
Total | $ | 61,892 | $ | 1,565 | $ | 432,208 | $ | 10,363 | |||||||||||||
Twelve months or more: | |||||||||||||||||||||
U.S. Government agencies | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Municipal bonds | 42,247 | 715 | - | - | |||||||||||||||||
Corporate bonds | 14,121 | 946 | 920 | 78 | |||||||||||||||||
Commercial mortgage-backed securities | 4,528 | 223 | 4,624 | 131 | |||||||||||||||||
Residential mortgage-backed securities | 6,738 | 272 | 10,587 | 897 | |||||||||||||||||
Asset-backed securities | - | - | 699 | 305 | |||||||||||||||||
Total | $ | 67,634 | $ | 2,156 | $ | 16,830 | $ | 1,411 | |||||||||||||
Total unrealized losses: | |||||||||||||||||||||
U.S. Government agencies | $ | 14,472 | $ | 137 | $ | 41,122 | $ | 725 | |||||||||||||
Municipal bonds | 42,247 | 715 | 247,873 | 5,955 | |||||||||||||||||
Corporate bonds | 46,138 | 2,242 | 91,709 | 3,564 | |||||||||||||||||
Commercial mortgage-backed securities | 4,528 | 223 | 7,562 | 132 | |||||||||||||||||
Residential mortgage-backed securities | 8,650 | 295 | 46,497 | 1,069 | |||||||||||||||||
Asset-backed securities | 13,491 | 109 | 14,275 | 329 | |||||||||||||||||
Total | $ | 129,526 | $ | 3,721 | $ | 449,038 | $ | 11,774 | |||||||||||||
We believe that the gross unrealized losses in our fixed maturity available-for-sale securities portfolio of $3.7 million represent temporary declines in fair value. We believe that the unrealized losses are not necessarily predictive of ultimate performance and that the provisions we have made for net impairment losses are adequate. However, economic conditions may deteriorate more than expected and may adversely affect the expected cash flows of our securities, which in turn may lead to impairment losses being recorded in future periods. Conversely, economic conditions may improve more than expected and favorably increase the expected cash flows of our impaired securities, which would be earned through net investment income over the remaining life of the security. | |||||||||||||||||||||
Net Investment Income | |||||||||||||||||||||
The following table sets forth our net investment income for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fixed maturity securities | $ | 66,749 | $ | 68,455 | $ | 94,307 | |||||||||||||||
Short-term investments and cash and cash equivalents | 2,794 | 4,419 | 7,319 | ||||||||||||||||||
Funds held by ceding companies | 3,538 | 3,190 | 2,648 | ||||||||||||||||||
Subtotal | 73,081 | 76,064 | 104,274 | ||||||||||||||||||
Investment expenses | (3,660 | ) | (4,018 | ) | (4,327 | ) | |||||||||||||||
Net investment income | $ | 69,421 | $ | 72,046 | $ | 99,947 | |||||||||||||||
Net Realized Gains on Investments | |||||||||||||||||||||
The following table sets forth our net realized gains on investments for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Gross realized gains on the sale of investments | $ | 5,372 | $ | 27,258 | $ | 90,100 | |||||||||||||||
Gross realized losses on the sale of investments | - | (15 | ) | (3 | ) | ||||||||||||||||
Net realized gains on the sale of investments | 5,372 | 27,243 | 90,097 | ||||||||||||||||||
Fair value adjustments on trading securities | (2,610 | ) | (3,323 | ) | (1,343 | ) | |||||||||||||||
Net realized gains on investments | $ | 2,762 | $ | 23,920 | $ | 88,754 | |||||||||||||||
Restricted Investments | |||||||||||||||||||||
Certain of our investments are restricted to support our reinsurance operations. As of December 31, 2014, investments of $5.7 million were pledged to U.S. regulatory authorities and investments of $55.9 million and cash and cash equivalents of $13.0 million were pledged to collateralize obligations under various reinsurance contracts. We also utilize letters of credit under our credit facilities. See Note 6 for a description of our cash and cash equivalents held in trust to secure those letters of credit. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||
Fair value measurements | 3. Fair Value Measurements | ||||||||||||||||||
The accounting guidance related to fair value measurements addresses the recognition and disclosure of fair value measurements where those measurements are either required or permitted by the guidance. The fair values of our financial assets and liabilities addressed by this guidance are determined primarily through the use of observable inputs. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from external independent sources. Unobservable inputs reflect management’s assumptions about what market participants’ assumptions would be in pricing the asset or liability based on the best information available. We classify our financial assets and liabilities in the fair value hierarchy based on the lowest level input that is significant to the fair value measurement. This classification requires judgment in assessing the market and pricing methodologies for a particular security. The fair value hierarchy is comprised of the following three levels: | |||||||||||||||||||
Level 1: Valuations are based on unadjusted quoted prices in active markets for identical financial assets or liabilities; | |||||||||||||||||||
Level 2: Valuations are based on prices obtained from index providers, independent pricing vendors or broker-dealers using observable inputs for financial assets and liabilities; and | |||||||||||||||||||
Level 3: Valuations are based on unobservable inputs for assets and liabilities where there is little or no market activity. Unadjusted third party pricing sources or management’s assumptions and internal valuation models may be used to determine the fair value of financial assets or liabilities. | |||||||||||||||||||
Level 1, 2 and 3 Financial Assets Carried at Fair Value | |||||||||||||||||||
The fair values of our fixed maturity securities, short-term investments and cash and cash equivalents are based on prices primarily obtained from index providers, pricing vendors, or broker-dealers using observable inputs. The fair value measurements of all of our securities were based on unadjusted prices provided by third party pricing sources. We validate the prices we obtain from third party pricing sources by performing price comparisons against multiple pricing sources, if available, periodically back-testing sales to the previously reported fair value, performing an in-depth review of specific securities when evaluating stale prices and large price movements, as well as performing other validation procedures. We also continuously monitor market data that relates to our investment portfolio and review pricing documentation that describes the methodologies used by various pricing sources. If we determine that a price appears unreasonable, we investigate and assess whether the price should be adjusted. The fair value measurements of our reinsurance deposit assets were based upon our internal valuation model which utilizes certain characteristics of both the market and income valuation approaches. Our fixed maturity securities, short-term investments, cash and cash equivalents and reinsurance deposit assets are classified in the fair value hierarchy as follows: | |||||||||||||||||||
U.S. Government | |||||||||||||||||||
Level 1 - The fair values of U.S. Government securities were based on quoted prices in active markets for identical assets. | |||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||
Level 2 - The fair values of U.S. Government agencies were based on observable inputs that may include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. | |||||||||||||||||||
Municipal bonds | |||||||||||||||||||
Level 2 - The fair values of municipal bonds were determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark securities, bids, credit risks and economic indicators. | |||||||||||||||||||
Non-U.S. governments | |||||||||||||||||||
Level 1 or 2 - The fair values of non-U.S. government securities classified as Level 1 were based on quoted prices in active markets for identical assets. Non-U.S. government securities classified as Level 2 were based on observable inputs that may include the spread above the risk-free yield curve, reported trades and broker-dealer quotes. Our non-U.S. government bond portfolio consisted of securities issued by governments, provinces, agencies and supranationals. | |||||||||||||||||||
Corporate bonds | |||||||||||||||||||
Level 2 - The fair values of corporate bonds were determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, benchmark securities, bids, credit risks and industry and economic indicators. | |||||||||||||||||||
Commercial mortgage-backed securities | |||||||||||||||||||
Level 2 - The fair values of CMBS classified as Level 2 were determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, security cash flows and structures, delinquencies, loss severities and default rates. | |||||||||||||||||||
Residential mortgage-backed securities | |||||||||||||||||||
Level 2 or 3 - Our RMBS portfolio was comprised of securities issued by U.S. Government agencies and by non-agency institutions. The fair values of RMBS classified as Level 2 were determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, loan level information, security cash flows and structures, prepayment speeds, delinquencies, loss severities and default rates. Non-agency RMBS classified as Level 3 used unobservable inputs that may include the probability of default, loss severity in the event of default and prepayment speeds. | |||||||||||||||||||
Asset-backed securities | |||||||||||||||||||
Level 2 or 3 - The fair values of ABS classified as Level 2 were determined based on observable inputs that may include the spread above the risk-free yield curve, reported trades, broker-dealer quotes, bids, security cash flows and structures, type of collateral, prepayment speeds, delinquencies, loss severities and default rates. Sub-prime ABS classified as Level 3 used unobservable inputs that may include the probability of default, loss severity in the event of default and prepayment speeds. | |||||||||||||||||||
Short-term investments | |||||||||||||||||||
Level 1 or 2 - The fair values of short-term investments classified as Level 1 were based on quoted prices in active markets for identical assets. The fair values of short-term investments classified as Level 2 were determined based on observable inputs that may include the risk-free yield curve, reported trades and broker-dealer quotes. | |||||||||||||||||||
Cash and cash equivalents | |||||||||||||||||||
Level 1 or 2 - The fair values of cash and cash equivalents classified as Level 1 were determined based on quoted prices in active markets for identical assets. The fair values of cash and cash equivalents classified as Level 2 were determined based on observable inputs that may include the risk-free yield curve, reported trades and broker-dealer quotes. Cash and cash equivalents include demand deposits, time deposits, money market instruments and both U.S. Government and non-U.S. government securities. | |||||||||||||||||||
Reinsurance deposit assets and other reinsurance contracts | |||||||||||||||||||
Level 3 – The fair value of reinsurance deposit assets and other reinsurance contracts carried at fair value are determined by management primarily using unobservable inputs through the application of our own assumptions and internal valuation model. The significant unobservable inputs may include the expected net cash flows related to the contract, including the expected premium, acquisition expenses and losses, contract period and the relevant discount rate used to present value the net cash flows. See further discussion below on reinsurance deposit assets. | |||||||||||||||||||
Fair Value Levels | |||||||||||||||||||
The following table presents the fair value hierarchy for those financial assets measured at fair value on a recurring basis by the Company as of December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||
Fair Value Measurement Using: | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
December 31, 2014: | |||||||||||||||||||
Investments: | |||||||||||||||||||
U.S. Government | $ | 49,485 | $ | 49,485 | $ | - | $ | - | |||||||||||
U.S. Government agencies | 89,327 | - | 89,327 | - | |||||||||||||||
Municipal bonds | 1,206,349 | - | 1,206,349 | - | |||||||||||||||
Non-U.S. governments | 115,651 | 49,888 | 65,763 | - | |||||||||||||||
Corporate bonds | 210,089 | - | 210,089 | - | |||||||||||||||
Commercial mortgage-backed securities | 58,880 | - | 58,880 | - | |||||||||||||||
Residential mortgage-backed securities | 124,397 | - | 124,397 | - | |||||||||||||||
Asset-backed securities | 18,876 | - | 15,404 | 3,472 | |||||||||||||||
Total investments | 1,873,054 | 99,373 | 1,770,209 | 3,472 | |||||||||||||||
Cash and cash equivalents | 1,434,984 | 1,417,431 | 17,553 | - | |||||||||||||||
Reinsurance deposit assets | 82,937 | - | - | 82,937 | |||||||||||||||
Total | $ | 3,390,975 | $ | 1,516,804 | $ | 1,787,762 | $ | 86,409 | |||||||||||
December 31, 2013: | |||||||||||||||||||
Investments: | |||||||||||||||||||
U.S. Government | $ | 4,765 | $ | 4,765 | $ | - | $ | - | |||||||||||
U.S. Government agencies | 51,122 | - | 51,122 | - | |||||||||||||||
Municipal bonds | 1,269,247 | - | 1,269,247 | - | |||||||||||||||
Non-U.S. governments | 143,909 | 54,980 | 88,929 | - | |||||||||||||||
Corporate bonds | 227,235 | - | 227,235 | - | |||||||||||||||
Commercial mortgage-backed securities | 77,491 | - | 77,491 | - | |||||||||||||||
Residential mortgage-backed securities | 169,965 | - | 169,372 | 593 | |||||||||||||||
Asset-backed securities | 17,531 | - | 15,304 | 2,227 | |||||||||||||||
Short -term investments | 66,679 | 8,933 | 57,746 | - | |||||||||||||||
Total investments | 2,027,944 | 68,678 | 1,956,446 | 2,820 | |||||||||||||||
Cash and cash equivalents | 1,464,418 | 1,464,418 | - | - | |||||||||||||||
Reinsurance deposit assets | 79,303 | - | - | 79,303 | |||||||||||||||
Total | $ | 3,571,665 | $ | 1,533,096 | $ | 1,956,446 | $ | 82,123 | |||||||||||
Cash and cash equivalents included demand deposits and time deposits totaling $98.1 million as of December 31, 2014 and totaling $120.7 million as of December 31, 2013. | |||||||||||||||||||
Transfers of assets into or out of Level 3 are recorded at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no transfers between Levels 1 and 2 during the years ended December 31, 2014 and 2013. The transfers into and out of Level 3 were based on the level of evidence available to corroborate significant inputs with market observable information. | |||||||||||||||||||
Changes in Level 3 Financial Assets | |||||||||||||||||||
The following table reconciles the beginning and ending balance for our Level 3 financial assets measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013 ($ in thousands): | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Commercial mortgage-backed securities | Residential mortgage-backed securities | Asset-backed securities | Reinsurance deposit assets | Total | |||||||||||||||
Balance, beginning of year | $ | - | $ | 593 | $ | 2,227 | $ | 79,303 | $82,123 | ||||||||||
Sales, maturities and paydowns | - | (3,207 | ) | (236 | ) | - | -3,443 | ||||||||||||
Total increase (decrease) in fair value included in net income | - | - | - | 3,634 | 3,634 | ||||||||||||||
Total net unrealized gains (losses) included in other comprehensive income (loss) | 148 | 2,899 | 1,942 | - | 4,989 | ||||||||||||||
Transfers into Level 3 | 3,768 | 4,704 | 3,630 | - | 12,102 | ||||||||||||||
Transfers out of Level 3 | (3,916 | ) | (4,989 | ) | (4,091 | ) | - | -12,996 | |||||||||||
Balance, end of year | $ | - | $ | - | $ | 3,472 | $ | 82,937 | $86,409 | ||||||||||
Total increase (decrease) in fair value of the financial assets included in earnings for the year | $ | - | $ | - | $ | - | $ | 3,634 | $3,634 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||
Commercial mortgage-backed securities | Residential mortgage-backed securities | Asset-backed securities | Reinsurance deposit assets | Total | |||||||||||||||
Balance, beginning of year | $ | 524 | $ | 5,374 | $ | 1,036 | $ | 50,693 | $57,627 | ||||||||||
Purchases | - | - | - | 25,000 | 25,000 | ||||||||||||||
Sales, maturities and paydowns | - | (448 | ) | (29 | ) | - | -477 | ||||||||||||
Total increase (decrease) in fair value included in net income | - | - | - | 3,610 | 3,610 | ||||||||||||||
Total net unrealized gains (losses) included in other comprehensive income (loss) | 487 | 799 | (4 | ) | - | 1,282 | |||||||||||||
Transfers into Level 3 | - | 4,091 | 3,984 | - | 8,075 | ||||||||||||||
Transfers out of Level 3 | (1,011 | ) | (9,223 | ) | (2,760 | ) | - | -12,994 | |||||||||||
Balance, end of year | $ | - | $ | 593 | $ | 2,227 | $ | 79,303 | $82,123 | ||||||||||
Total increase (decrease) in fair value of the financial assets included in earnings for the year | $ | - | $ | - | $ | - | $ | 3,610 | $3,610 | ||||||||||
Quantitative Information of Level 3 Fair Value Measurements | |||||||||||||||||||
The fair value measurements of our CMBS, non-agency RMBS and sub-prime ABS classified as Level 3 were based on unadjusted third party pricing sources. | |||||||||||||||||||
The fair value measurements of our reinsurance deposit assets used significant unobservable inputs through the application of our own assumptions and internal valuation model and were classified as Level 3. The most significant unobservable inputs used in our internal valuation model are the estimated contract period remaining, credit spread above the risk-free rate and net losses and LAE ceded. The credit spread above the risk-free rate is determined by reviewing the credit spreads of fixed income securities through observable market data, as well as considering illiquidity and the structure of these contracts. The fair value of the reinsurance deposit assets may increase or decrease due to changes in the estimated contract period remaining, the credit spread and net losses and LAE ceded. Generally, a decrease in the credit spread or a decrease in net losses and LAE ceded would result in an increase in the fair value of the reinsurance deposit assets. Conversely, an increase in the credit spread or an increase in net losses and LAE ceded would result in a decrease in the fair value of the reinsurance deposit assets. | |||||||||||||||||||
The following table sets forth the weighted average of the significant unobservable quantitative information used for the fair value measurement of our reinsurance deposit assets as of December 31, 2014 and December 31, 2013: | |||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Estimated contract period remaining | 834 days | 1,193 days | |||||||||||||||||
Credit spread above the risk-free rate | 1.46 | % | 1.58 | % | |||||||||||||||
Net losses and LAE ceded inception-to-date | $ | - | $ | - | |||||||||||||||
Other Financial Assets and Liabilities Not Carried at Fair Value | |||||||||||||||||||
Accounting guidance requires note disclosure of the fair value of other financial assets and liabilities not carried at fair value, excluding balances related to insurance contracts. | |||||||||||||||||||
The debt obligations on our consolidated balance sheets were recorded at cost with a carrying value of $250.0 million as of December 31, 2014 and 2013, and had a fair value of $278.6 million and $271.5 million as of December 31, 2014 and 2013, respectively. The fair value measurements were based on observable inputs and therefore would be considered to be Level 2. | |||||||||||||||||||
Our remaining assets and liabilities were generally carried at cost or amortized cost, which approximates fair value as of December 31, 2014 and 2013. The fair value measurements were based on observable inputs and therefore would be considered to be Level 1 or Level 2. |
Unpaid_Losses_and_Loss_Adjustm
Unpaid Losses and Loss Adjustment Expenses | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Unpaid Losses and Loss Adjustment Expense [Abstract] | ||||||||||||
Unpaid losses and loss adjustments expense | 4. Unpaid Losses and Loss Adjustment Expenses | |||||||||||
The following table sets forth the changes in our liability for unpaid losses and LAE for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net unpaid losses and LAE as of January 1, | $ | 1,670,171 | $ | 1,957,685 | $ | 2,385,659 | ||||||
Net incurred losses and LAE related to: | ||||||||||||
Current year | 311,491 | 328,136 | 395,661 | |||||||||
Prior years | (128,090 | ) | (160,690 | ) | (212,001 | ) | ||||||
Net incurred losses and LAE | 183,401 | 167,446 | 183,660 | |||||||||
Net paid losses and LAE related to: | ||||||||||||
Current year | 75,511 | 58,958 | 95,808 | |||||||||
Prior years | 326,673 | 386,408 | 524,423 | |||||||||
Net paid losses and LAE | 402,184 | 445,366 | 620,231 | |||||||||
Net effects of foreign currency exchange rate changes | (18,500 | ) | (9,594 | ) | 8,597 | |||||||
Net unpaid losses and LAE as of December 31, | 1,432,888 | 1,670,171 | 1,957,685 | |||||||||
Reinsurance recoverable on unpaid losses and LAE | 2,810 | 1,194 | 3,597 | |||||||||
Gross unpaid losses and LAE as of December 31, | $ | 1,435,698 | $ | 1,671,365 | $ | 1,961,282 | ||||||
We report changes in estimates of prior years’ unpaid losses and LAE, referred to as net favorable or unfavorable loss development, in our consolidated statements of operations in the period in which we make the change. | ||||||||||||
The following table sets forth the components of net incurred losses and LAE related to prior years for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Net favorable loss development | $ | (127,633 | ) | $ | (183,293 | ) | $ | (235,543 | ) | |||
Increase (decrease) in losses attributable to changes in premium estimates | (457 | ) | 22,603 | 23,542 | ||||||||
Net incurred losses and LAE - prior years | $ | (128,090 | ) | $ | (160,690 | ) | $ | (212,001 | ) | |||
Net favorable loss development was primarily attributable to a level of cumulative losses reported by our ceding companies that was lower than expected and that, in our judgment, resulted in sufficient credibility in the loss experience to change our previously selected loss ratios. Prior years’ incurred losses and LAE included losses associated with changes in premium estimates and the patterns of their earnings. The effect on net income from the increase or decrease in losses attributable to changes in premium estimates, after considering corresponding changes in premium estimates and acquisition expenses, was not significant. | ||||||||||||
The following table sets forth the net favorable loss development by operating segment for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Property and Marine | $ | (27,382 | ) | $ | (71,269 | ) | $ | (45,664 | ) | |||
Casualty | (97,795 | ) | (103,165 | ) | (182,014 | ) | ||||||
Finite Risk | (2,456 | ) | (8,859 | ) | (7,865 | ) | ||||||
Net favorable loss development | $ | (127,633 | ) | $ | (183,293 | ) | $ | (235,543 | ) | |||
The Property and Marine segment net favorable loss development included net favorable loss development related to major catastrophe events of $14.1 million, $41.1 million and $12.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. For the years ended December 31, 2014, 2013 and 2012, the net favorable loss development related to major catastrophe events resulted primarily from events that occurred during 2010 through 2013. Property and marine net favorable loss development, excluding major catastrophes, for the years ended December 31, 2014, 2013 and 2012 was primarily attributable to the property per risk and catastrophe excess-of-loss (non-major events) classes. | ||||||||||||
The Casualty segment net favorable loss development included $82.8 million, $98.2 million and $165.8 million attributable to the long-tailed casualty classes for years ended December 31, 2014, 2013 and 2012, respectively. The majority of the long-tailed casualty net favorable loss development for the years ended December 31, 2014 and 2013 was attributable to the 2011 and prior underwriting years of the claims made, umbrella and international casualty classes. The majority of the long-tailed casualty net favorable loss development for the year ended December 31, 2012 was attributable to the 2009 and prior underwriting years of the claims made, umbrella, casualty occurrence and international casualty classes. | ||||||||||||
The Finite Risk segment net favorable loss development was offset by additional profit commissions of $1.9 million, $7.1 million and $8.1 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
The net favorable loss development for the years ended December 31, 2014, 2013 and 2012 was primarily attributable to a level of cumulative losses reported by our ceding companies that was lower than expected and that, in our judgment, resulted in sufficient credibility in the loss experience to change our previously selected loss ratios and reduce estimated ultimate losses. | ||||||||||||
As many of the reinsurance coverages we offer will likely involve claims that may not ultimately be settled for many years after they are incurred, subjective judgments as to ultimate exposure to losses are an integral and necessary component of the process of estimating unpaid losses and LAE. With respect to reinsurers, the inherent uncertainties of estimating unpaid losses and LAE are further exacerbated by the significant amount of time that often elapses between the occurrence of an insured loss, the reporting of that loss to the primary insurer and then to the reinsurer, and the primary insurer's payment of that loss to the insured and subsequent payment by the reinsurer to the primary insurer. Unpaid losses and LAE are reviewed quarterly using a variety of statistical and actuarial techniques to analyze current claim costs, frequency and severity data and prevailing economic, social and legal factors. Unpaid losses and LAE established in prior years are evaluated as loss experience develops and new information becomes available. Adjustments to previously estimated unpaid losses and LAE are reflected in financial results in the periods in which they are made. Unpaid losses and LAE represent our best estimate of the costs of claims incurred, and it is possible that our ultimate liability may differ materially from such estimates. |
Retrocessional_Reinsurance
Retrocessional Reinsurance | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Retrocessional Reinsurance [Abstract] | ||||||||||||
Retrocessional reinsurance | 5. Retrocessional Reinsurance | |||||||||||
During 2014, 2013 and 2012, our retrocessional reinsurance was primarily purchased by Platinum Bermuda which entered into various industry loss warranty reinsurance agreements that provided retrocessional coverage for catastrophic events in North America, Europe and Japan. | ||||||||||||
The following table sets forth the effects of retrocessional reinsurance on premiums, losses and LAE for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Assumed: | ||||||||||||
Premiums written | $ | 509,127 | $ | 579,761 | $ | 569,724 | ||||||
Premium earned | 522,747 | 567,682 | 576,920 | |||||||||
Losses and LAE | 185,024 | 164,565 | 183,376 | |||||||||
Ceded: | ||||||||||||
Premiums written | (17,059 | ) | (12,640 | ) | (4,724 | ) | ||||||
Premium earned | (16,111 | ) | (14,269 | ) | (10,424 | ) | ||||||
Losses and LAE | (1,623 | ) | 2,881 | 284 | ||||||||
Net: | ||||||||||||
Premiums written | 492,068 | 567,121 | 565,000 | |||||||||
Premium earned | 506,636 | 553,413 | 566,496 | |||||||||
Losses and LAE | $ | 183,401 | $ | 167,446 | $ | 183,660 | ||||||
We remain liable for ceded losses and LAE to the extent that our retrocessionaires do not meet their obligations under these agreements. The failure of retrocessionaires to meet their obligations would result in losses to us. Therefore, we consider the financial strength of retrocessionaires when determining whether to purchase retrocessional coverage from them and routinely monitor the financial performance and rating status of all material retrocessionaires. We generally obtain retrocessional coverage from companies rated “A-” or better by A.M. Best Company, Inc. (“A.M. Best”) unless the retrocessionaire’s obligations are collateralized. We believe our retrocessionaires are able to meet, and will meet, all of their obligations under the agreements as of December 31, 2014. We have recorded no provisions for unrecoverable reinsurance as of December 31, 2014 and 2013. |
Debt_Obligations_And_Credit_Fa
Debt Obligations And Credit Facilities | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Credit Facilities [Abstract] | |||||||||||||
Credit facilities | 6. Debt Obligations and Credit Facilities | ||||||||||||
Debt Obligations | |||||||||||||
As of December 31, 2014, Platinum Finance had outstanding debt obligations consisting of an aggregate principal amount of $250.0 million of Series B 7.5% Notes due June 1, 2017, fully and unconditionally guaranteed by Platinum Holdings. Interest is payable on the debt obligations on each of June 1 and December 1. Platinum Finance may redeem the debt obligations, at its option, at any time in whole, or from time to time in part, prior to maturity, subject to a “make-whole” provision. | |||||||||||||
Credit Facilities | |||||||||||||
Syndicated Credit Facility | |||||||||||||
On April 9, 2014, we entered into an amended and restated credit facility with various financial institutions (the “Syndicated Credit Facility”). The Syndicated Credit Facility is a four-year, $300.0 million secured senior credit facility available for letters of credit (“LOC”), with a sublimit of $100.0 million for revolving borrowings. LOC and borrowings under the Syndicated Credit Facility are available for the working capital, liquidity and general corporate requirements of Platinum Holdings, Platinum Finance and our reinsurance subsidiaries. The Syndicated Credit Facility contains customary representations, warranties and covenants. Platinum Holdings and Platinum Finance have unconditionally guaranteed the obligations of each Platinum entity under the Syndicated Credit Facility. | |||||||||||||
Other Letter of Credit Facilities | |||||||||||||
We have an LOC facility with a financial institution in the aggregate amount of $100.0 million available for the issuance of LOC to support reinsurance obligations of our reinsurance subsidiaries. We also have the ability to request an uncommitted LOC facility of up to $150.0 million subject to agreement with the lender. | |||||||||||||
Platinum Bermuda has an uncommitted LOC facility of $125.0 million available for the issuance of LOC to support reinsurance obligations of Platinum Bermuda. There was $10.9 million committed under this facility as of December 31, 2014. Platinum Holdings has unconditionally guaranteed the obligations of Platinum Bermuda under this facility. | |||||||||||||
We had no revolving borrowings under the Syndicated Credit Facility during the years ended December 31, 2014 and 2013. The following table summarizes the outstanding LOC as of December 31, 2014 ($ in thousands): | |||||||||||||
Credit Capacity | Letters of Credit Issued (1) | Credit Capacity Remaining | |||||||||||
Syndicated Credit Facility | $ | 300,000 | $ | 85,509 | $ | 214,491 | |||||||
Other LOC Facilities | 375,000 | 27,757 | 347,243 | ||||||||||
Total | $ | 675,000 | $ | 113,266 | $ | 561,734 | |||||||
(1) Cash and cash equivalents of $131.3 million were held to collateralize LOC issued as of December 31, 2014. | |||||||||||||
The credit capacity of $675.0 million consists of $410.9 million of committed capacity and $264.1 million of uncommitted capacity. The Company also has the ability to increase the Syndicated Credit Facility and other LOC facilities by up to $175.0 million subject to agreement with the lenders. We are in compliance with all of the covenants under our credit facilities. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income taxes | 7. Income Taxes | |||||||||||
We provide for income tax expense or benefit based upon pre-tax income reported in the consolidated financial statements and the provisions of currently enacted tax laws. Platinum Holdings and Platinum Bermuda are incorporated under the laws of Bermuda and are subject to Bermuda law with respect to taxation. Under current Bermuda law, Platinum Holdings and Platinum Bermuda are not taxed on any Bermuda income or capital gains and they have received an assurance from the Bermuda Minister of Finance that if any legislation is enacted in Bermuda that would impose tax computed on profits or income, or computed on any capital asset, gain or appreciation, or any tax in the nature of estate duty or inheritance tax, then the imposition of any such tax will not be applicable to Platinum Holdings or Platinum Bermuda or any of their respective operations, shares, debentures or other obligations until March 31, 2035. | ||||||||||||
Platinum Holdings has subsidiaries based in the United States and Ireland that are subject to the tax laws thereof. The operations of Platinum US, Platinum Finance and PASI are subject to U.S. federal income taxes generally at a rate of 35%. Any of our non-U.S. subsidiaries could become subject to U.S. federal income tax only to the extent that they derive (i) U.S. source income that is subject to U.S. withholding tax or (ii) income from activity that is deemed to be the conduct of a trade or business within the U.S. We do not consider our non-U.S. subsidiaries to be engaged in a trade or business within the U.S. and, therefore, do not believe that our non-U.S. subsidiaries are subject to U.S. federal income tax. However, there is little legal precedent as to what constitutes being engaged in a trade or business within the U.S. and, thus, there exists the possibility that the U.S. Internal Revenue Service could assert claims that our non-U.S. subsidiaries are engaged in a trade or business in the U.S. and attempt to assess taxes that are not provided for. | ||||||||||||
Dividends or other distributions from Platinum Finance, our intermediate holding company based in the U.S., to Platinum Regency, its Irish parent, are subject to U.S. withholding tax. | ||||||||||||
The consolidated federal income tax returns of our U.S.-based subsidiaries for 2010 and subsequent calendar years remain subject to examination. The U.S. Internal Revenue Service recently commenced an examination of the 2011 consolidated federal income tax return. | ||||||||||||
Under current Irish law, Platinum Regency is taxed at a 25% corporate income tax rate on non-trading income and a 12.5% corporate income tax rate on trading income. Subject to meeting certain requirements, there is no withholding tax on dividends distributed from Platinum Regency to Platinum Holdings. The tax returns that remain open for Platinum Regency are for calendar years 2010 and later. | ||||||||||||
The following table presents our income before income taxes by jurisdiction for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Bermuda | $ | 123,371 | $ | 151,289 | $ | 272,163 | ||||||
United States | 58,851 | 106,869 | 80,322 | |||||||||
Ireland and other | (220 | ) | (153 | ) | (261 | ) | ||||||
Income before income taxes | $ | 182,002 | $ | 258,005 | $ | 352,224 | ||||||
The following table presents our current and deferred income taxes for the years ended years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense | $ | 12,317 | $ | 24,708 | $ | 16,205 | ||||||
Deferred tax expense | 4,917 | 10,019 | 8,791 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
The following table presents a reconciliation of expected income taxes, computed by applying the tax rate of 0% under Bermuda law to income before income taxes, to income tax expense for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected income tax expense at 0% | $ | - | $ | - | $ | - | ||||||
Foreign taxes at local expected rates: | ||||||||||||
United States | 20,598 | 37,404 | 28,113 | |||||||||
Ireland and other | (55 | ) | (38 | ) | (60 | ) | ||||||
Tax exempt investment income | (5,248 | ) | (4,745 | ) | (4,470 | ) | ||||||
U.S. state taxes, net of U.S. federal tax benefit | 459 | 455 | 355 | |||||||||
Prior year adjustment | - | - | (305 | ) | ||||||||
Non-deductible expenses and other | 1,480 | 1,651 | 1,363 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 ($ in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Unpaid losses and LAE | $ | 29,598 | $ | 34,365 | ||||||||
Unearned premiums | 6,340 | 7,136 | ||||||||||
Temporary differences in recognition of expenses | 3,210 | 3,178 | ||||||||||
Total deferred tax assets | $ | 39,148 | $ | 44,679 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred acquisition costs | $ | 8,579 | $ | 9,333 | ||||||||
Unrealized gains on investments | 12,598 | 9,898 | ||||||||||
Other | 448 | 307 | ||||||||||
Total deferred tax liabilities | 21,625 | 19,538 | ||||||||||
Net deferred tax assets | $ | 17,523 | $ | 25,141 | ||||||||
The deferred tax assets and liabilities as of December 31, 2014 and 2013 were all related to U.S. income tax. To evaluate the recoverability of the deferred tax assets, we consider the timing of the reversal of deferred income and expense items as well as the likelihood that we will generate sufficient taxable income to realize the future tax benefits. We believe that it is more likely than not we will generate sufficient taxable income and realize the future tax benefits in order to recover the deferred assets and, accordingly, no valuation allowance was established as of December 31, 2014 and 2013. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||
Shareholders' equity | 8. Shareholders’ Equity | ||||||||||||
Common Shares | |||||||||||||
Platinum Holdings is authorized to issue up to 200,000,000 common shares, $0.01 par value. The following table reconciles the beginning and ending balance of common shares issued and outstanding for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Shares issued and outstanding, beginning of year | 28,143 | 32,722 | 35,526 | ||||||||||
Options exercised | 12 | 685 | 170 | ||||||||||
Restricted shares issued (1) | 41 | (13 | ) | (5 | ) | ||||||||
Restricted share units issued | 204 | 109 | 120 | ||||||||||
Shares repurchased | (3,559 | ) | (5,360 | ) | (3,089 | ) | |||||||
Shares issued and outstanding, end of year | 24,841 | 28,143 | 32,722 | ||||||||||
(1) Restricted shares issued are net of forfeitures and cancelations. | |||||||||||||
Preferred Shares | |||||||||||||
Platinum Holdings is authorized to issue up to 25,000,000 preferred shares, $0.01 par value. There were no preferred shares outstanding for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||
Accumulated Other Comprehensive Income | |||||||||||||
Accumulated other comprehensive income in the consolidated balance sheets relates to unrealized gains and losses on available-for-sale securities, net of deferred taxes. | |||||||||||||
The following table reconciles the beginning and ending balances for accumulated other comprehensive income for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||
2014 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 57,982 | $ | (9,898 | ) | $ | 48,084 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | (991 | ) | 1 | (990 | ) | ||||||||
Change in net unrealized gains and losses on all other securities | 52,828 | (3,571 | ) | 49,257 | |||||||||
Total change in net unrealized gains and losses | 51,837 | (3,570 | ) | 48,267 | |||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (5,372 | ) | 871 | (4,501 | ) | ||||||||
Net impairment losses on investments | 840 | (1 | ) | 839 | |||||||||
Total reclassifications to net income | (4,532 | ) | 870 | (3,662 | ) | ||||||||
Other comprehensive income (loss) | 47,305 | (2,700 | ) | 44,605 | |||||||||
Balance, end of year | $ | 105,287 | $ | (12,598 | ) | $ | 92,689 | ||||||
2013 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 159,975 | $ | (22,285 | ) | $ | 137,690 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | (631 | ) | 11 | (620 | ) | ||||||||
Change in net unrealized gains and losses on all other securities | (76,152 | ) | 8,734 | (67,418 | ) | ||||||||
Total change in net unrealized gains and losses | (76,783 | ) | 8,745 | (68,038 | ) | ||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (27,243 | ) | 3,675 | (23,568 | ) | ||||||||
Net impairment losses on investments | 2,033 | (33 | ) | 2,000 | |||||||||
Total reclassifications to net income | (25,210 | ) | 3,642 | (21,568 | ) | ||||||||
Other comprehensive income (loss) | (101,993 | ) | 12,387 | (89,606 | ) | ||||||||
Balance, end of year | $ | 57,982 | $ | (9,898 | ) | $ | 48,084 | ||||||
2012 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 168,861 | $ | (22,226 | ) | $ | 146,635 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | 211 | 99 | 310 | ||||||||||
Change in net unrealized gains and losses on all other securities | 77,652 | (5,508 | ) | 72,144 | |||||||||
Total change in net unrealized gains and losses | 77,863 | (5,409 | ) | 72,454 | |||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (89,780 | ) | 5,652 | (84,128 | ) | ||||||||
Net impairment losses on investments | 3,031 | (302 | ) | 2,729 | |||||||||
Total reclassifications to net income | (86,749 | ) | 5,350 | (81,399 | ) | ||||||||
Other comprehensive income (loss) | (8,886 | ) | (59 | ) | (8,945 | ) | |||||||
Balance, end of year | $ | 159,975 | $ | (22,285 | ) | $ | 137,690 | ||||||
The following table sets forth the amounts reclassified out of accumulated other comprehensive income and the location of those amounts in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Net realized gains on investments | $ | (5,372 | ) | $ | (27,243 | ) | $ | (89,780 | ) | ||||
Net impairment losses on investments | 840 | 2,033 | 3,031 | ||||||||||
Income tax expense | $ | 870 | $ | 3,642 | $ | 5,350 | |||||||
Share Repurchases | |||||||||||||
Our Board of Directors has authorized the repurchase of our common shares through a share repurchase program. Since the program was established, our Board of Directors has approved increases in the repurchase program from time to time, most recently on April 22, 2014, to result in authority as of such date to repurchase up to a total of $250.0 million of our common shares. The following table summarizes our repurchases of common shares for the years ended December 31, 2014, 2013 and 2012 ($ in thousands, except per share data): | |||||||||||||
Year | Shares Repurchased | Weighted Average Cost per Share (1) | Aggregate Amount Paid | ||||||||||
2014 | 3,558,690 | $ | 60.61 | $ | 215,684 | ||||||||
2013 | 5,360,266 | 56.58 | 303,294 | ||||||||||
2012 | 3,088,589 | $ | 37.46 | $ | 115,702 | ||||||||
(1) Including commissions. | |||||||||||||
The shares we repurchased were canceled. As of December 31, 2014, we had $110.1 million remaining under the share repurchase program. |
Statutory_Regulations_And_Divi
Statutory Regulations And Dividend Restrictions | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Dividend Restrictions [Abstract] | |||||||||
Dividend restrictions | 9. Statutory Regulations and Dividend Restrictions | ||||||||
Statutory Regulations | |||||||||
Group Supervision of the Company | |||||||||
The Bermuda Monetary Authority is the group supervisor of the Company. The laws and regulations of Bermuda require that the Company maintain a minimum amount of group statutory capital and surplus based on the enhanced capital requirement. As of December 31, 2014, the Company’s enhanced capital requirement is 60% of the amount calculated using the group standardized risk-based capital model of the Bermuda Monetary Authority. The Company is also subject to an early-warning level based on 120% of the enhanced capital requirement which may trigger additional reporting requirements or other enhanced oversight. As of December 31, 2014, the amount of group statutory capital and surplus maintained by the Company satisfied these regulatory requirements. | |||||||||
Statutory Regulation of Subsidiaries | |||||||||
Our reinsurance subsidiaries, Platinum Bermuda and Platinum US, are required to comply with certain laws and regulations within their jurisdictions. The laws and regulations of Bermuda require that Platinum Bermuda maintain a minimum amount of statutory capital and surplus. For Platinum Bermuda this amount is the enhanced capital requirement based on the standardized risk-based capital model of the Bermuda Monetary Authority. Platinum Bermuda is also subject to an early-warning level based on 120% of the enhanced capital requirement which may trigger additional reporting requirements or other enhanced oversight. The laws and regulations in the United States establish minimum capital adequacy levels and grant regulators the authority to take specific actions based on the level of impairment. For Platinum US this amount is the Company Action Level based on the risk-based capital model of the National Association of Insurance Commissioners and represents the first level at which regulatory action is triggered. | |||||||||
Our reinsurance subsidiaries file financial statements prepared in accordance with statutory accounting practices prescribed or permitted by insurance regulatory authorities in the jurisdictions in which they operate. The common adjustments from U.S. GAAP financial statements to statutory basis financial statements include eliminating deferred acquisition costs, prepaid assets and fixed assets and presenting reinsurance assets and liabilities net of retrocessional reinsurance. Also, in the United States, bonds are generally recorded at amortized cost and deferred income tax is charged directly to equity. In preparing our statutory basis financial statements, we have used statutory accounting practices that are prescribed by the relevant regulatory authorities. Furthermore, the Bermuda Monetary Authority has permitted the use of deposit accounting for our reinsurance deposit assets, which aligns with U.S. GAAP, and has no effect on Platinum Bermuda’s statutory capital and surplus. Platinum Bermuda has also received approval from the Bermuda Monetary Authority to reduce the standard risk-based capital factor applicable to the reinsurance deposit assets. The Maryland Insurance Administration recently commenced an examination of the statutory basis financial statements of Platinum US as of December 31, 2013. | |||||||||
The following table sets forth the actual statutory capital and surplus for our reinsurance subsidiaries and the corresponding minimum capital adequacy levels noted above as of December 31, 2014 and 2013 ($ in thousands): | |||||||||
2014 | 2013 | ||||||||
Actual statutory capital and surplus: | |||||||||
Platinum Bermuda | $ | 981,136 | $ | 1,057,281 | |||||
Platinum US | $ | 531,368 | $ | 549,242 | |||||
Required statutory capital and surplus: | |||||||||
Platinum Bermuda | $ | 248,758 | $ | 327,221 | |||||
Platinum US | $ | 242,670 | $ | 258,528 | |||||
Total statutory net income of our reinsurance subsidiaries was $209.0 million, $264.0 million, and $364.3 million for the years ended December 31, 2014, 2013 and 2012. | |||||||||
Dividend Restrictions | |||||||||
Platinum Holdings and its subsidiaries are subject to certain legal and regulatory restrictions in their respective jurisdictions of domicile. The legal restrictions generally include the requirement to maintain positive net assets and to be able to pay liabilities as they become due. Regulatory restrictions on dividends are described below. | |||||||||
Dividend Restrictions on Platinum Holdings | |||||||||
Platinum Holdings receives dividends and other distributions from its subsidiaries as a source of liquidity and to fund the payment of dividends to its shareholders. Distributions to Platinum Holdings from its subsidiaries may be restricted as described below. Pursuant to the terms of the Merger Agreement, Platinum Holdings is prohibited from declaring and paying any dividend or making other distributions on its share capital, other than dividends or distributions paid by a wholly owned subsidiary to it or its subsidiaries and quarterly cash dividends in the ordinary course of business on Platinum Holdings’ common shares with record and payment dates consistent with past practice, in an amount not to exceed $0.08 per share per quarter. There are no other significant restrictions on retained earnings available for the payment of dividends by Platinum Holdings to its shareholders. | |||||||||
On February 10, 2015, Platinum Holdings’ board of directors declared, subject to certain conditions, a quarterly dividend of $0.08 per common share. The quarterly dividend would be payable on March 31, 2015 to shareholders of record on March 2, 2015 and is conditioned on the Merger not having been consummated on or prior to March 31, 2015. | |||||||||
In addition, on February 10, 2015, Platinum Holdings’ board of directors declared, subject to certain conditions, a special dividend of $10.00 per common share in connection with its pending Merger by RenaissanceRe. The special dividend would be payable prior to the effective time of the Merger on the closing date of the Merger to shareholders of record at the close of business on the last business day prior to the closing date. The special dividend is conditioned on the Merger having been approved by the shareholders of the Company at a special meeting of its shareholders on February 27, 2015 (or any adjournment or postponement thereof). The Merger is subject to the approval of shareholders of Platinum and the satisfaction of customary closing conditions. There can be no assurance that all such closing conditions will be satisfied and thus there is no assurance that the Merger will occur. | |||||||||
Dividend Restrictions on Subsidiaries | |||||||||
The laws and regulations of Bermuda and the United States include certain restrictions on the amount of statutory capital and surplus that are available for the payment of dividends by Platinum Bermuda and Platinum US to their respective parent companies, Platinum Holdings and Platinum Finance. | |||||||||
For 2015, Platinum Bermuda is generally restricted from declaring and paying dividends of more than 25% of its statutory capital and surplus as of December 31, 2014 unless an affidavit is filed with the Bermuda Monetary Authority stating it will continue to meet its capital and liquidity requirements. During 2015, the maximum amount available for the payment of dividends by Platinum Bermuda without filing an affidavit is $245.3 million. On January 14, 2015, Platinum Bermuda paid a dividend of $240.0 million to Platinum Holdings. | |||||||||
Platinum US is required to notify its regulator, the Maryland Insurance Administration, 10 days prior to the payment of an ordinary dividend and 30 days prior to the payment of an extraordinary dividend. During 2014, Platinum US utilized its ordinary dividend capacity and paid an extraordinary dividend. In 2015, Platinum US will have an ordinary dividend capacity of $27.2 million. | |||||||||
During the year ended December 31, 2014, dividends of $339.0 million were paid by the reinsurance subsidiaries of Platinum Holdings, of which $264.0 million was paid by Platinum Bermuda to Platinum Holdings and $75.0 million was paid by Platinum US to Platinum Finance. | |||||||||
There are no regulatory restrictions on retained earnings available for the payment of dividends by Platinum Finance to Platinum Regency or by Platinum Regency to Platinum Holdings. Irish law prohibits Platinum Regency from declaring a dividend to its shareholders unless it has “profits available for distribution”. The determination of whether a company has profits available for distribution is based on its accumulated profits, not previously distributed or capitalized, less its accumulated realized losses, not previously used as a reduction from capital. |
Operating_Segment_Information
Operating Segment Information | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Operating Segment Information [Abstract] | ||||||||||||||||
Operating segment information | 10. Operating Segment Information | |||||||||||||||
We have organized our worldwide reinsurance business into three operating segments: Property and Marine, Casualty and Finite Risk. We believe that underwriting income or loss and related underwriting ratios allow for a more complete understanding of the profitability of our reinsurance operations and operating segments. These measures are considered to be non-GAAP. These non-GAAP measures may be defined or calculated differently by other companies. These measures are used to monitor our results and should not be viewed as a substitute for those determined in accordance with U.S. GAAP. | ||||||||||||||||
Underwriting income or loss consists of net premiums earned less net losses and LAE and net underwriting expenses. Net underwriting expenses include net acquisition expenses and operating costs related to underwriting. Underwriting income or loss excludes revenues and expenses related to net investment income, net realized gains or losses on investments, net impairment losses on investments, corporate expenses not allocated to underwriting segments, net foreign currency exchange gains or losses, interest expense and other income and expense. | ||||||||||||||||
Underwriting ratios are calculated for net losses and LAE, net acquisition expense and other underwriting expense. The ratios are calculated by dividing the related expense by net premiums earned. The combined ratio is the sum of the net losses and LAE, net acquisition expense and other underwriting expense ratios. | ||||||||||||||||
The following table summarizes underwriting income or loss and related underwriting ratios for the three operating segments, together with a reconciliation of segment underwriting income (loss) to the U.S. GAAP measure of income before income taxes for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||
2014 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 207,867 | $ | 259,809 | $ | 24,392 | $ | 492,068 | ||||||||
Net premiums earned | 211,640 | 267,224 | 27,772 | 506,636 | ||||||||||||
Net losses and loss adjustment expenses | 69,779 | 95,080 | 18,542 | 183,401 | ||||||||||||
Net acquisition expenses | 40,074 | 66,404 | 7,326 | 113,804 | ||||||||||||
Other underwriting expenses | 31,087 | 22,022 | 1,310 | 54,419 | ||||||||||||
Segment underwriting income (loss) | $ | 70,700 | $ | 83,718 | $ | 594 | 155,012 | |||||||||
Net investment income | 69,421 | |||||||||||||||
Net realized gains on investments | 2,762 | |||||||||||||||
Net impairment losses on investments | (840 | ) | ||||||||||||||
Other income (expense) | 3,180 | |||||||||||||||
Corporate expenses not allocated to segments | (28,890 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | 512 | |||||||||||||||
Interest expense | (19,155 | ) | ||||||||||||||
Income before income taxes | $ | 182,002 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 33 | % | 35.6 | % | 66.8 | % | 36.2 | % | ||||||||
Net acquisition expense | 18.9 | % | 24.8 | % | 26.4 | % | 22.5 | % | ||||||||
Other underwriting expense | 14.7 | % | 8.2 | % | 4.7 | % | 10.7 | % | ||||||||
Combined | 66.6 | % | 68.6 | % | 97.9 | % | 69.4 | % | ||||||||
2013 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 229,507 | $ | 295,668 | $ | 41,946 | $ | 567,121 | ||||||||
Net premiums earned | 222,010 | 297,888 | 33,515 | 553,413 | ||||||||||||
Net losses and loss adjustment expenses | 34,421 | 115,888 | 17,137 | 167,446 | ||||||||||||
Net acquisition expenses | 38,342 | 71,648 | 13,777 | 123,767 | ||||||||||||
Other underwriting expenses | 30,898 | 23,149 | 1,439 | 55,486 | ||||||||||||
Segment underwriting income (loss) | $ | 118,349 | $ | 87,203 | $ | 1,162 | 206,714 | |||||||||
Net investment income | 72,046 | |||||||||||||||
Net realized gains on investments | 23,920 | |||||||||||||||
Net impairment losses on investments | (2,033 | ) | ||||||||||||||
Other income (expense) | 3,477 | |||||||||||||||
Corporate expenses not allocated to segments | (27,228 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | 234 | |||||||||||||||
Interest expense | (19,125 | ) | ||||||||||||||
Income before income taxes | $ | 258,005 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 15.5 | % | 38.9 | % | 51.1 | % | 30.3 | % | ||||||||
Net acquisition expense | 17.3 | % | 24.1 | % | 41.1 | % | 22.4 | % | ||||||||
Other underwriting expense | 13.9 | % | 7.8 | % | 4.3 | % | 10 | % | ||||||||
Combined | 46.7 | % | 70.8 | % | 96.5 | % | 62.7 | % | ||||||||
2012 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 256,182 | $ | 287,112 | $ | 21,706 | $ | 565,000 | ||||||||
Net premiums earned | 253,604 | 294,122 | 18,770 | 566,496 | ||||||||||||
Net losses and loss adjustment expenses | 132,580 | 43,763 | 7,317 | 183,660 | ||||||||||||
Net acquisition expenses | 34,342 | 68,987 | 12,108 | 115,437 | ||||||||||||
Other underwriting expenses | 31,140 | 22,937 | 1,105 | 55,182 | ||||||||||||
Segment underwriting income (loss) | $ | 55,542 | $ | 158,435 | $ | (1,760 | ) | 212,217 | ||||||||
Net investment income | 99,947 | |||||||||||||||
Net realized gains on investments | 88,754 | |||||||||||||||
Net impairment losses on investments | (3,031 | ) | ||||||||||||||
Other income (expense) | (239 | ) | ||||||||||||||
Corporate expenses not allocated to segments | (25,271 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | (1,055 | ) | ||||||||||||||
Interest expense | (19,098 | ) | ||||||||||||||
Income (loss) before income taxes | $ | 352,224 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 52.3 | % | 14.9 | % | 39 | % | 32.4 | % | ||||||||
Net acquisition expense | 13.5 | % | 23.5 | % | 64.5 | % | 20.4 | % | ||||||||
Other underwriting expense | 12.3 | % | 7.8 | % | 5.9 | % | 9.7 | % | ||||||||
Combined | 78.1 | % | 46.2 | % | 109.4 | % | 62.5 | % | ||||||||
The following table presents our net premiums written for the years ended December 31, 2014, 2013 and 2012 by geographic location of the ceding company ($ in thousands): | ||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 386,743 | $ | 444,110 | $ | 441,762 | ||||||||||
International | 105,325 | 123,011 | 123,238 | |||||||||||||
Total | $ | 492,068 | $ | 567,121 | $ | 565,000 |
Share_Incentive_Compensation_a
Share Incentive Compensation and Defined Contribution Retirement Plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Share incentive compensation and employee benefit plans | 11. Share Incentive Compensation and Defined Contribution Retirement Plans | ||||||||||||||||||||||||
Share Incentive Compensation | |||||||||||||||||||||||||
We have a share incentive plan under which our employees and directors may be granted options, restricted shares, restricted share units, share appreciation rights, or other rights to acquire shares. Upon effectiveness, our Amended and Restated 2010 Share Incentive Plan (the "Plan") had an aggregate of 3,572,977 common shares available and reserved for issuance, which was comprised of 3,100,000 common shares as set forth in the Plan, plus authorized and unissued shares that remained available under a previous share incentive plan. | |||||||||||||||||||||||||
The following table provides the total share-based compensation expense recognized during the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Restricted share units: | |||||||||||||||||||||||||
Service-based awards | $ | 4,420 | $ | 4,198 | $ | 3,974 | |||||||||||||||||||
Performance-based awards | 6,299 | 6,264 | 2,810 | ||||||||||||||||||||||
Market-based awards | 3,369 | 3,173 | 1,617 | ||||||||||||||||||||||
Restricted shares | 357 | 883 | 1,666 | ||||||||||||||||||||||
Share options | - | - | 70 | ||||||||||||||||||||||
Share based compensation expense | 14,445 | 14,518 | 10,137 | ||||||||||||||||||||||
Tax benefit | (2,562 | ) | (2,560 | ) | (1,829 | ) | |||||||||||||||||||
Share based compensation expense, net of taxes | $ | 11,883 | $ | 11,958 | $ | 8,308 | |||||||||||||||||||
As of December 31, 2014, there was $17.3 million of total unrecognized compensation cost related to restricted share units and restricted shares. This included $6.6 million for service-based awards, $0.1 million for equity-classified performance-based awards, $5.8 million for liability-classified performance-based awards, $2.6 million for market-based awards, and $2.2 million for restricted share awards that will be recognized over a weighted average period of 1.0 years, 0.5 years, 0.9 years, 1.0 years, and 1.6 years, respectively. There was no unrecognized compensation cost related to share options. | |||||||||||||||||||||||||
(i) Restricted Share Units | |||||||||||||||||||||||||
Service-Based Awards | |||||||||||||||||||||||||
Service-based restricted share units generally vest annually over a four year period. Service-based restricted share units granted to non-employee directors vest after one year. | |||||||||||||||||||||||||
The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | |||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 235 | $ | 42.96 | 263 | $ | 37.36 | 280 | $ | 37.17 | ||||||||||||||||
Granted | 76 | 56.25 | 82 | 51.6 | 128 | 36.02 | |||||||||||||||||||
Vested | (100 | ) | 42.28 | (110 | ) | 35.96 | (126 | ) | 35.46 | ||||||||||||||||
Forfeited | - | - | - | - | (19 | ) | 38.09 | ||||||||||||||||||
Outstanding - end of year | 211 | $ | 48.09 | 235 | $ | 42.96 | 263 | $ | 37.36 | ||||||||||||||||
The grant date fair value of these awards is based on the grant date share price multiplied by the number of share units granted. The fair value at the grant date was $4.3 million, $4.2 million and $4.6 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Performance-Based Awards | |||||||||||||||||||||||||
Performance-based awards of restricted share units made pursuant to the executive incentive plan may be settled in shares or cash. The executive incentive plan utilizes shares reserved under the Plan for share-settled awards. Performance-based awards generally vest on the third anniversary of the grant date and are based on either the average annual return on equity over three years or the average change in adjusted fully converted book value per share (“Average Change in Adjusted FCBVPS”) over three years. | |||||||||||||||||||||||||
For awards granted prior to July 2014, the performance adjustment is calculated based on the average annual return on equity over three years. For awards granted in 2012 and later, an average return on equity between 4% and 15% or more results in a settlement of 25% to 150% of the initial award. In addition, there is a minimum payout of 8.33% of the share units granted for each year of the three-year performance period that the average return on equity is 4% or more. | |||||||||||||||||||||||||
For awards granted in July 2014, the performance adjustment is calculated based on the Average Change in Adjusted FCBVPS over three years. An Average Change in Adjusted FCBVPS between 4.3% and 8.6% results in a settlement of 40% to 100%. An Average Change in Adjusted FCBVPS between 8.6% and 12.9% or more results in a settlement of 100% to 150%. | |||||||||||||||||||||||||
For the years ended December 31, 2014, 2013 and 2012, our executives earned 130,709 share units for certain of the 2012 grants, 24,873 share units for certain of the 2012 and all of the 2011 grants, and 19,761 share units for certain of the 2012 and all of the 2010 grants, respectively. These share units vested subsequent to their respective year end. | |||||||||||||||||||||||||
a) Equity-Classified Awards: | |||||||||||||||||||||||||
Restricted share units under our executive incentive plan that are settled in common shares are classified as equity awards. The following table sets forth information regarding these awards for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | |||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 32 | $ | 39.79 | 43 | $ | 36.13 | 19 | $ | 28.65 | ||||||||||||||||
Granted | - | - | 6 | 51.17 | 31 | 35.95 | |||||||||||||||||||
Vested | (13 | ) | 36.65 | (18 | ) | 36.3 | (20 | ) | 28.65 | ||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Performance adjustment | (1 | ) | 45.44 | 1 | 44 | 13 | 35.87 | ||||||||||||||||||
Outstanding - end of year | 18 | $ | 41.42 | 32 | $ | 39.79 | 43 | $ | 36.13 | ||||||||||||||||
The grant date fair value of these awards is based on the grant date share price multiplied by the number of share units granted. The grant date fair value was $0.3 million and $1.1 million in 2013 and 2012, respectively. There were no equity-classified restricted share units granted under our executive incentive plan in 2014. | |||||||||||||||||||||||||
During 2012, we granted additional executive incentive plan awards, to be settled in shares, 50% of which vested in 2013 and 50% of which vested in 2014, based on our performance during 2012 and 2013, respectively. A return on equity of 4% or more in each year resulted in full settlement of the grants. | |||||||||||||||||||||||||
b) Liability-Classified Awards: | |||||||||||||||||||||||||
Restricted share units under our executive incentive plan that are settled in cash are classified as liability awards. The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | |||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 220 | $ | 42.27 | 125 | $ | 35.95 | - | $ | - | ||||||||||||||||
Granted | 81 | 56.95 | 65 | 51.6 | 83 | 35.95 | |||||||||||||||||||
Vested | (12 | ) | 43.67 | - | - | - | - | ||||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Performance adjustment | (34 | ) | 52.04 | 30 | 48.3 | 42 | 35.95 | ||||||||||||||||||
Outstanding - end of year | 255 | $ | 45.6 | 220 | $ | 42.27 | 125 | $ | 35.95 | ||||||||||||||||
The grant date fair value of these awards is based on the grant date share price multiplied by the number of share units granted. The grant date fair value was $4.6 million, $3.3 million and $3.0 million in 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
In addition to the performance conditions, the fair value of liability-classified awards is adjusted at the end of each reporting date by multiplying the closing share price at the reporting date by the number of share units outstanding. | |||||||||||||||||||||||||
Market-Based Awards | |||||||||||||||||||||||||
In 2012 and 2013, we issued market share units, a form of restricted share units, to executives under the Plan. Market share units generally have a three-year vesting period and the actual number of common shares that each participant will receive upon vesting of the awards is based on a market-based multiplier. These awards will be settled in common shares and are equity-classified. | |||||||||||||||||||||||||
The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | |||||||||||||||||||||||||
As of and for the Year Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 319 | $ | 45.64 | 223 | $ | 41.93 | - | $- | |||||||||||||||||
Granted | - | - | 57 | 61.58 | 173 | 41.93 | |||||||||||||||||||
Vested | (134 | ) | 40.43 | - | - | - | - | ||||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Market adjustment | 13 | 61.58 | 39 | 44.12 | 50 | 41.93 | |||||||||||||||||||
Outstanding - end of year | 198 | $ | 50.22 | 319 | $ | 45.64 | 223 | $41.93 | |||||||||||||||||
The grant date fair value of these awards was $3.5 million and $7.2 million in 2013 and 2012, respectively. Share-based compensation expense for these awards is recognized over the vesting period based on the grant date fair value of the awards and the number of share units granted, regardless of whether the market conditions are satisfied or not, provided the service conditions are satisfied. | |||||||||||||||||||||||||
The grant date fair value of market share units is based on a Monte Carlo simulated fair value per share unit at the grant date multiplied by the number of share units granted. The Monte Carlo simulation used the following weighted average assumptions for awards granted during the years ended December 31, 2013 and 2012: | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Dividend yield | 0.6 | % | 0.9 | % | |||||||||||||||||||||
Risk free interest rate | 0.6 | % | 0.3 | % | |||||||||||||||||||||
Expected volatility - historical | 23.4 | % | 24.9 | % | |||||||||||||||||||||
Initial average share price | $ | 57.19 | $ | 35.17 | |||||||||||||||||||||
Weighted average grant fair value | $ | 61.58 | $ | 41.93 | |||||||||||||||||||||
The market adjustment reflects the change during the year in the market-based multiplier for each grant. The market-based multiplier equals our average closing share price for the 20 trading days preceding the reporting date divided by the average closing share price for the last 20 trading days of the quarter preceding the grant date (the “initial average share price”). | |||||||||||||||||||||||||
The following table sets forth information regarding the market-based multipliers for the 2013 and 2012 grant years for these awards for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||||||
Grant Year | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Multiplier - initial | 100 | % | 100 | % | |||||||||||||||||||||
Change in multiplier - 2012 | - | 29 | % | ||||||||||||||||||||||
Change in multiplier - 2013 | 6 | % | 21 | % | |||||||||||||||||||||
Change in multiplier - 2014 | 23 | % | - | ||||||||||||||||||||||
Multiplier - reporting date | 129 | % | 150 | % | |||||||||||||||||||||
Upon vesting, the number of market share units granted will be multiplied by the market-based multiplier equal to our average share price for the 20 trading days ending on the last day of the quarter preceding the vesting date divided by the initial average share price to determine the number of common shares to be paid out. The maximum number of common shares payable at settlement is 150% of the share units granted and no share units will be paid out if the market-based multiplier is less than 50%. | |||||||||||||||||||||||||
(ii) Restricted Shares | |||||||||||||||||||||||||
Restricted shares vest annually over a three-year period. | |||||||||||||||||||||||||
The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | |||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Shares | Weighted Average Grant Date Fair Value | Restricted Shares | Weighted Average Grant Date Fair Value | Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | - | $ | - | 73 | $ | 36.5 | 146 | $ | 36.5 | ||||||||||||||||
Granted | 41 | 61.83 | - | - | - | - | |||||||||||||||||||
Vested | - | - | (73 | ) | 36.5 | (73 | ) | 36.5 | |||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Outstanding - end of year | 41 | $ | 61.83 | - | $ | - | 73 | $ | 36.5 | ||||||||||||||||
The grant date fair value of restricted shares is based on the grant date share price multiplied by the number of shares granted. The fair value at the grant date was $2.6 million in 2014. There were no restricted shares granted in 2013 or 2012. | |||||||||||||||||||||||||
(iii) Share options | |||||||||||||||||||||||||
There have been no share options granted since 2008. Option awards generally vest over a three or four year period and expire ten years from the date of grant. | |||||||||||||||||||||||||
The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except weighted average exercise prices): | |||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||||||
Outstanding - beginning of year | 148 | $ | 33.81 | 833 | $ | 33.25 | 1,030 | $ | 31.9 | ||||||||||||||||
Granted | - | - | - | - | - | - | |||||||||||||||||||
Exercised | (12 | ) | 33.23 | (685 | ) | 33.13 | (170 | ) | 26.67 | ||||||||||||||||
Forfeited | - | - | - | - | (27 | ) | 23.47 | ||||||||||||||||||
Outstanding - end of year | 136 | 33.86 | 148 | 33.81 | 833 | 33.25 | |||||||||||||||||||
Options exercisable at year end | 136 | $ | 33.86 | 148 | $ | 33.81 | 833 | $ | 33.25 | ||||||||||||||||
All outstanding options are exercisable and the weighted average remaining contractual term was 2.7 years as of December 31, 2014. | |||||||||||||||||||||||||
The following table presents the intrinsic and fair values of the options exercised and vested during the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Intrinsic value of options exercised (1) | $ | 384 | $ | 15,922 | $ | 2,511 | |||||||||||||||||||
Fair value of options exercised (2) | 112 | 5,948 | 1,331 | ||||||||||||||||||||||
Fair value of options vested (2) | $ | - | $ | - | $ | 488 | |||||||||||||||||||
(1) Represents the difference between the market value and exercise price on the date of exercise. | |||||||||||||||||||||||||
(2) Based on the Black-Scholes option pricing model. | |||||||||||||||||||||||||
Defined Contribution Retirement Plans | |||||||||||||||||||||||||
The Company’s employees are eligible for retirement benefits through defined contribution retirement plans. The Company and employees contribute an amount equal to a specified percentage of each employee’s salary. Expenses related to the defined contribution plans were $2.3 million, $2.3 million and $2.0 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Earnings_Loss_Per_Common_Share
Earnings (Loss) Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings (Loss) Per Common Share [Abstract] | |||||||||||||
Earnings (loss) per common share | 12. Earnings Per Common Share | ||||||||||||
The following is a reconciliation of the basic and diluted earnings per common share computations for the years ended December 31, 2014, 2013 and 2012 ($ and amounts in thousands, except per share data): | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings | |||||||||||||
Basic and Diluted | |||||||||||||
Net income attributable to common shareholders | $ | 164,768 | $ | 223,278 | $ | 327,228 | |||||||
Portion allocated to participating common shareholders (1) | (107 | ) | (293 | ) | (1,076 | ) | |||||||
Net income allocated to common shareholders | $ | 164,661 | $ | 222,985 | $ | 326,152 | |||||||
Common Shares | |||||||||||||
Basic | |||||||||||||
Weighted average common shares outstanding | 26,207 | 29,909 | 33,714 | ||||||||||
Diluted | |||||||||||||
Weighted average common shares outstanding | 26,207 | 29,909 | 33,714 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Common share options | 54 | 150 | 171 | ||||||||||
Restricted share units | 263 | 275 | 96 | ||||||||||
Adjusted weighted average common shares outstanding | 26,524 | 30,334 | 33,981 | ||||||||||
Earnings Per Common Share | |||||||||||||
Basic earnings per common share | $ | 6.28 | $ | 7.46 | $ | 9.67 | |||||||
Diluted earnings per common share | $ | 6.21 | $ | 7.35 | $ | 9.6 | |||||||
(1) Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies [Abstract] | |||||
Commitments and contingencies | 13. Commitments and Contingencies | ||||
Lease Commitments | |||||
The following table presents our future minimum annual lease commitments under various non-cancelable operating leases for our facilities ($ in thousands): | |||||
Years Ending December 31, | |||||
2015 | $ | 2,589 | |||
2016 | 2,452 | ||||
2017 | 2,455 | ||||
2018 | 2,421 | ||||
2019 | 2,423 | ||||
Thereafter | 8,916 | ||||
Total | $ | 21,256 | |||
Operating lease expense was $2.4 million, $3.7 million and $2.7 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
Employment Agreements | |||||
The Company has entered into employment agreements with certain employees. These agreements provide for annual compensation in the form of salary, benefits, annual incentive payments, share-based awards, the reimbursement of certain expenses, as well as certain severance provisions. | |||||
Other Operating Agreements | |||||
The Company has entered into service agreements and other contracts that provide for business and information technology support and service, investment accounting services and other costs related to doing business. Future payments under these contracts amount to $1.3 million, $1.2 million and $1.2 million in 2015, 2016 and 2017 and thereafter, respectively. | |||||
Brokers | |||||
The Company writes business through direct relationships with reinsurance brokers. Based on in-force premiums written as of December 31, 2014, the brokers we derived the largest portion of our business (with the approximate percentage of business derived from each of such brokers and its affiliates) were Aon Benfield for 28%, Marsh & McLennan Companies for 25%, Willis Group Holdings for 16% and Jardine Lloyd Thompson Group plc for 13%. The loss of business relationships with any of these brokers could have a material adverse effect on our business. | |||||
Concentrations of Credit Risk | |||||
The areas where significant concentration of credit risk may exist principally include investments, cash and cash equivalents, amounts due from investment brokers from the sales of securities, reinsurance premiums receivable, reinsurance recoverable, funds held by ceding companies and reinsurance deposit assets. Also, certain of our assets are pledged to collateralize obligations under various reinsurance contracts and are held by ceding companies. The Company limits the amount of credit exposure to any one counterparty and none of the Company’s counterparty credit exposures, excluding U.S. Government instruments, exceeded 10% of shareholders’ equity as of December 31, 2014. In addition, credit risk exists should any of our brokers be unable to fulfill their contractual obligations with respect to the payments of reinsurance balances owed to and by the Company. | |||||
Litigation | |||||
In the normal course of business, we may become involved in various claims and legal proceedings. We are not currently aware of any pending or threatened material litigation or arbitration other than in the ordinary course of our reinsurance business. Estimated losses related to claims arising in the normal course of our reinsurance business, including the anticipated outcome of any pending arbitration or litigation, are included in unpaid losses and LAE in our consolidated balance sheets. | |||||
On January 16, 2015, Platinum Holdings’ board of directors received a letter from counsel to a purported shareholder of Platinum Holdings, alleging certain breaches of fiduciary duties by the board members in connection with the negotiation and approval of the Merger Agreement, demanding that Platinum Holdings’ board of directors take certain actions and reserving the right to commence legal action against Platinum Holdings and its board of directors. In addition, several law firms have issued press releases announcing “investigations of the Merger” raising similar allegations and referencing similar potential litigation. Any such lawsuit would be expected to seek, among other things, injunctive relief to enjoin the defendants from completing the Merger on the agreed-upon terms. |
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly Financial Data | 14. Quarterly Financial Data (Unaudited) | |||||||||||||||
The following quarterly financial information for each of the three months ended March 31, June 30, September 30 and December 31, 2014 and 2013 is unaudited. However, in the opinion of management, all necessary adjustments have been made (consisting of normal recurring adjustments) to present fairly the results of operations for such periods ($ and amounts in thousands, except per share data): | ||||||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||||
Net premiums earned | $ | 126,075 | $ | 129,463 | $ | 124,825 | $ | 126,273 | ||||||||
Net investment income | 16,561 | 17,523 | 17,645 | 17,692 | ||||||||||||
Net realized gains (losses) on investments | 764 | 3,109 | (596 | ) | (515 | ) | ||||||||||
Net losses and LAE | 39,849 | 66,178 | 50,865 | 26,509 | ||||||||||||
Net acquisition expenses | 30,413 | 28,042 | 27,848 | 27,501 | ||||||||||||
Operating expenses | 24,985 | 18,607 | 21,434 | 18,283 | ||||||||||||
Net income | $ | 35,728 | $ | 29,125 | $ | 36,180 | $ | 63,735 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.44 | $ | 1.13 | $ | 1.36 | $ | 2.3 | ||||||||
Diluted | $ | 1.42 | $ | 1.12 | $ | 1.34 | $ | 2.27 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 24,793 | 25,731 | 26,577 | 27,765 | ||||||||||||
Diluted | 25,090 | 26,002 | 26,928 | 28,109 | ||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Net premiums earned | $ | 148,267 | $ | 135,360 | $ | 142,933 | $ | 126,853 | ||||||||
Net investment income | 17,936 | 17,758 | 17,808 | 18,544 | ||||||||||||
Net realized gains (losses) on investments | (778 | ) | (306 | ) | 11,686 | 13,318 | ||||||||||
Net losses and LAE | 46,639 | 44,142 | 62,667 | 13,998 | ||||||||||||
Net acquisition expenses | 32,560 | 30,675 | 30,313 | 30,219 | ||||||||||||
Operating expenses | 23,019 | 20,672 | 19,718 | 19,305 | ||||||||||||
Net income | $ | 48,623 | $ | 38,285 | $ | 49,854 | $ | 86,516 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.73 | $ | 1.34 | $ | 1.63 | $ | 2.67 | ||||||||
Diluted | $ | 1.71 | $ | 1.32 | $ | 1.61 | $ | 2.63 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 28,097 | 28,655 | 30,571 | 32,373 | ||||||||||||
Diluted | 28,492 | 29,065 | 30,970 | 32,838 |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||
Condensed consolidating financial information | 15. Condensed Consolidating Financial Information | |||||||||||||||||||
As described in Note 6, Platinum Holdings fully and unconditionally guarantees the outstanding $250.0 million of debt obligations issued by its 100%-owned subsidiary Platinum Finance. | ||||||||||||||||||||
The following tables present the condensed consolidating financial information for Platinum Holdings, Platinum Finance and the non-guarantor subsidiaries of Platinum Holdings as of December 31, 2014 and 2013 and for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Total investments | $ | - | $ | 45,085 | $ | 1,827,969 | $ | - | $ | 1,873,054 | ||||||||||
Investment in subsidiaries | 1,627,917 | 595,769 | 638,426 | (2,862,112 | ) | - | ||||||||||||||
Cash and cash equivalents | 113,773 | 248,130 | 1,073,081 | - | 1,434,984 | |||||||||||||||
Reinsurance assets | - | - | 247,495 | - | 247,495 | |||||||||||||||
Inter-company receivables | 11,246 | - | 435 | (11,681 | ) | - | ||||||||||||||
Other assets | 2,253 | 1,158 | 128,145 | - | 131,556 | |||||||||||||||
Total assets | $ | 1,755,189 | $ | 890,142 | $ | 3,915,551 | $ | (2,873,793 | ) | $ | 3,687,089 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Reinsurance liabilities | $ | - | $ | - | $ | 1,597,304 | $ | - | $ | 1,597,304 | ||||||||||
Debt obligations | - | 250,000 | - | - | 250,000 | |||||||||||||||
Inter-company payables | - | 31 | 11,650 | (11,681 | ) | - | ||||||||||||||
Other liabilities | 17,164 | 1,685 | 82,911 | - | 101,760 | |||||||||||||||
Total liabilities | $ | 17,164 | $ | 251,716 | $ | 1,691,865 | $ | (11,681 | ) | $ | 1,949,064 | |||||||||
Shareholders’ Equity | ||||||||||||||||||||
Common shares | $ | 248 | $ | - | $ | 8,000 | $ | (8,000 | ) | $ | 248 | |||||||||
Additional paid-in capital | 2,415 | 216,038 | 2,025,646 | (2,241,684 | ) | 2,415 | ||||||||||||||
Accumulated other comprehensive income | 92,689 | 23,398 | 116,085 | (139,483 | ) | 92,689 | ||||||||||||||
Retained earnings | 1,642,673 | 398,990 | 73,955 | (472,945 | ) | 1,642,673 | ||||||||||||||
Total shareholders’ equity | $ | 1,738,025 | $ | 638,426 | $ | 2,223,686 | $ | (2,862,112 | ) | $ | 1,738,025 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,755,189 | $ | 890,142 | $ | 3,915,551 | $ | (2,873,793 | ) | $ | 3,687,089 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Total investments | $ | - | $ | 114 | $ | 2,027,830 | $ | - | $ | 2,027,944 | ||||||||||
Investment in subsidiaries | 1,658,425 | 610,679 | 591,175 | (2,860,279 | ) | - | ||||||||||||||
Cash and cash equivalents | 88,402 | 230,818 | 1,145,198 | - | 1,464,418 | |||||||||||||||
Reinsurance assets | - | - | 290,887 | - | 290,887 | |||||||||||||||
Inter-company receivables | 9,739 | - | 351 | (10,090 | ) | - | ||||||||||||||
Other assets | 2,135 | 1,290 | 137,211 | - | 140,636 | |||||||||||||||
Total assets | $ | 1,758,701 | $ | 842,901 | $ | 4,192,652 | $ | (2,870,369 | ) | $ | 3,923,885 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Reinsurance liabilities | $ | - | $ | - | $ | 1,876,456 | $ | - | $ | 1,876,456 | ||||||||||
Debt obligations | - | 250,000 | - | - | 250,000 | |||||||||||||||
Inter-company payables | - | 39 | 10,051 | (10,090 | ) | - | ||||||||||||||
Other liabilities | 11,994 | 1,687 | 37,041 | - | 50,722 | |||||||||||||||
Total liabilities | $ | 11,994 | $ | 251,726 | $ | 1,923,548 | $ | (10,090 | ) | $ | 2,177,178 | |||||||||
Shareholders’ Equity | ||||||||||||||||||||
Common shares | $ | 281 | $ | - | $ | 8,000 | $ | (8,000 | ) | $ | 281 | |||||||||
Additional paid-in capital | 10,711 | 215,420 | 2,024,409 | (2,239,829 | ) | 10,711 | ||||||||||||||
Accumulated other comprehensive income | 48,084 | 18,382 | 66,463 | (84,845 | ) | 48,084 | ||||||||||||||
Retained earnings | 1,687,631 | 357,373 | 170,232 | (527,605 | ) | 1,687,631 | ||||||||||||||
Total shareholders’ equity | $ | 1,746,707 | $ | 591,175 | $ | 2,269,104 | $ | (2,860,279 | ) | $ | 1,746,707 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,758,701 | $ | 842,901 | $ | 4,192,652 | $ | (2,870,369 | ) | $ | 3,923,885 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 506,636 | $ | - | $ | 506,636 | ||||||||||
Net investment income (expense) | 34 | (186 | ) | 69,573 | - | 69,421 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 2,762 | - | 2,762 | |||||||||||||||
Net impairment losses on investments | - | - | (840 | ) | - | (840 | ) | |||||||||||||
Other income (expense) | 5,672 | - | (2,492 | ) | - | 3,180 | ||||||||||||||
Total revenue | 5,706 | (186 | ) | 575,639 | - | 581,159 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 183,401 | - | 183,401 | |||||||||||||||
Net acquisition expenses | - | - | 113,804 | - | 113,804 | |||||||||||||||
Operating expenses | 29,206 | 192 | 53,911 | - | 83,309 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | (512 | ) | - | (512 | ) | |||||||||||||
Interest expense | - | 19,155 | - | - | 19,155 | |||||||||||||||
Total expenses | 29,206 | 19,347 | 350,604 | - | 399,157 | |||||||||||||||
Income (loss) before income taxes | (23,500 | ) | (19,533 | ) | 225,035 | - | 182,002 | |||||||||||||
Income tax expense (benefit) | - | (6,696 | ) | 23,930 | - | 17,234 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (23,500 | ) | (12,837 | ) | 201,105 | - | 164,768 | |||||||||||||
Equity in earnings of subsidiaries | 188,268 | 54,455 | 41,618 | (284,341 | ) | - | ||||||||||||||
Net income | $ | 164,768 | $ | 41,618 | $ | 242,723 | $ | (284,341 | ) | $ | 164,768 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 553,413 | $ | - | $ | 553,413 | ||||||||||
Net investment income (expense) | 24 | (85 | ) | 72,107 | - | 72,046 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 23,920 | - | 23,920 | |||||||||||||||
Net impairment losses on investments | - | - | (2,033 | ) | - | (2,033 | ) | |||||||||||||
Other income (expense) | 6,737 | 4 | (3,264 | ) | - | 3,477 | ||||||||||||||
Total revenue | 6,761 | (81 | ) | 644,143 | - | 650,823 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 167,446 | - | 167,446 | |||||||||||||||
Net acquisition expenses | - | - | 123,767 | - | 123,767 | |||||||||||||||
Operating expenses | 26,313 | 145 | 56,256 | - | 82,714 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | (234 | ) | - | (234 | ) | |||||||||||||
Interest expense | - | 19,125 | - | - | 19,125 | |||||||||||||||
Total expenses | 26,313 | 19,270 | 347,235 | - | 392,818 | |||||||||||||||
Income (loss) before income taxes | (19,552 | ) | (19,351 | ) | 296,908 | - | 258,005 | |||||||||||||
Income tax expense (benefit) | - | (6,307 | ) | 41,034 | - | 34,727 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (19,552 | ) | (13,044 | ) | 255,874 | - | 223,278 | |||||||||||||
Equity in earnings of subsidiaries | 242,830 | 85,185 | 72,141 | (400,156 | ) | - | ||||||||||||||
Net income | $ | 223,278 | $ | 72,141 | $ | 328,015 | $ | (400,156 | ) | $ | 223,278 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 566,496 | $ | - | $ | 566,496 | ||||||||||
Net investment income (expense) | 10 | (24 | ) | 99,961 | - | 99,947 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 88,754 | - | 88,754 | |||||||||||||||
Net impairment losses on investments | - | - | (3,031 | ) | - | (3,031 | ) | |||||||||||||
Other income (expense) | 5,481 | 3 | (5,723 | ) | - | (239 | ) | |||||||||||||
Total revenue | 5,491 | (21 | ) | 746,457 | - | 751,927 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 183,660 | - | 183,660 | |||||||||||||||
Net acquisition expenses | - | - | 115,437 | - | 115,437 | |||||||||||||||
Operating expenses | 24,733 | 233 | 55,487 | - | 80,453 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | 1,055 | - | 1,055 | |||||||||||||||
Interest expense | - | 19,098 | - | - | 19,098 | |||||||||||||||
Total expenses | 24,733 | 19,331 | 355,639 | - | 399,703 | |||||||||||||||
Income (loss) before income taxes | (19,242 | ) | (19,352 | ) | 390,818 | - | 352,224 | |||||||||||||
Income tax expense (benefit) | - | (6,477 | ) | 31,473 | - | 24,996 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (19,242 | ) | (12,875 | ) | 359,345 | - | 327,228 | |||||||||||||
Equity in earnings of subsidiaries | 346,470 | 68,165 | 55,290 | (469,925 | ) | - | ||||||||||||||
Net income | $ | 327,228 | $ | 55,290 | $ | 414,635 | $ | (469,925 | ) | $ | 327,228 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 164,768 | $ | 41,618 | $ | 242,723 | $ | (284,341 | ) | $ | 164,768 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | (991 | ) | - | (991 | ) | |||||||||||||
Change in net unrealized gains and losses on all other securities | - | (2 | ) | 52,830 | - | 52,828 | ||||||||||||||
Total change in net unrealized gains and losses | - | (2 | ) | 51,839 | - | 51,837 | ||||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (5,372 | ) | - | (5,372 | ) | |||||||||||||
Net impairment losses on investments | - | - | 840 | - | 840 | |||||||||||||||
Total reclassifications to net income | - | - | (4,532 | ) | - | (4,532 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (2 | ) | 47,307 | - | 47,305 | ||||||||||||||
Income tax benefit (expense) | - | 1 | (2,701 | ) | - | (2,700 | ) | |||||||||||||
Other comprehensive income (loss) | - | (1 | ) | 44,606 | - | 44,605 | ||||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 44,605 | 5,017 | 5,016 | (54,638 | ) | - | ||||||||||||||
Comprehensive income | $ | 209,373 | $ | 46,634 | $ | 292,345 | $ | (338,979 | ) | $ | 209,373 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 223,278 | $ | 72,141 | $ | 328,015 | $ | (400,156 | ) | $ | 223,278 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | (631 | ) | - | (631 | ) | |||||||||||||
Change in net unrealized gains and losses on all other securities | - | (2 | ) | (76,150 | ) | - | (76,152 | ) | ||||||||||||
Total change in net unrealized gains and losses | - | (2 | ) | (76,781 | ) | - | (76,783 | ) | ||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (27,243 | ) | - | (27,243 | ) | |||||||||||||
Net impairment losses on investments | - | - | 2,033 | - | 2,033 | |||||||||||||||
Total reclassifications to net income | - | - | (25,210 | ) | - | (25,210 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (2 | ) | (101,991 | ) | - | (101,993 | ) | ||||||||||||
Income tax benefit (expense) | - | - | 12,387 | - | 12,387 | |||||||||||||||
Other comprehensive income (loss) | - | (2 | ) | (89,604 | ) | - | (89,606 | ) | ||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | (89,606 | ) | (23,002 | ) | (23,004 | ) | 135,612 | - | ||||||||||||
Comprehensive income | $ | 133,672 | $ | 49,137 | $ | 215,407 | $ | (264,544 | ) | $ | 133,672 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 327,228 | $ | 55,290 | $ | 414,635 | $ | (469,925 | ) | $ | 327,228 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | 211 | - | 211 | |||||||||||||||
Change in net unrealized gains and losses on all other securities | - | (6 | ) | 77,658 | - | 77,652 | ||||||||||||||
Total change in net unrealized gains and losses | - | (6 | ) | 77,869 | - | 77,863 | ||||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (89,780 | ) | - | (89,780 | ) | |||||||||||||
Net impairment losses on investments | - | - | 3,031 | - | 3,031 | |||||||||||||||
Total reclassifications to net income | - | - | (86,749 | ) | - | (86,749 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (6 | ) | (8,880 | ) | - | (8,886 | ) | ||||||||||||
Income tax benefit (expense) | - | 2 | (61 | ) | - | (59 | ) | |||||||||||||
Other comprehensive income (loss) | - | (4 | ) | (8,941 | ) | - | (8,945 | ) | ||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | (8,945 | ) | 113 | 109 | 8,723 | - | ||||||||||||||
Comprehensive income | $ | 318,283 | $ | 55,399 | $ | 405,803 | $ | (461,202 | ) | $ | 318,283 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (15,010 | ) | $ | (12,703 | ) | $ | 43,559 | $ | (619 | ) | $ | 15,227 | |||||||
Investing Activities: | ||||||||||||||||||||
Proceeds from sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 88,629 | - | 88,629 | |||||||||||||||
Short-term investments | - | - | 6,613 | - | 6,613 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 41 | 130,465 | - | 130,506 | |||||||||||||||
Short-term investments | - | - | 126,795 | - | 126,795 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | (45,026 | ) | (55,000 | ) | - | (100,026 | ) | ||||||||||||
Short-term investments | - | - | (66,036 | ) | - | (66,036 | ) | |||||||||||||
Dividends from subsidiaries | 264,000 | 75,000 | - | (339,000 | ) | - | ||||||||||||||
Net cash provided by (used in) investing activities | 264,000 | 30,015 | 231,466 | (339,000 | ) | 186,481 | ||||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (8,329 | ) | - | (339,000 | ) | 339,000 | (8,329 | ) | ||||||||||||
Repurchase of common shares | (215,684 | ) | - | - | - | (215,684 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 394 | - | - | 619 | 1,013 | |||||||||||||||
Net cash provided by (used in) financing activities | (223,619 | ) | - | (339,000 | ) | 339,619 | (223,000 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (8,142 | ) | - | (8,142 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 25,371 | 17,312 | (72,117 | ) | - | (29,434 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 88,402 | 230,818 | 1,145,198 | - | 1,464,418 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 113,773 | $ | 248,130 | $ | 1,073,081 | $ | - | $ | 1,434,984 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (9,510 | ) | $ | (11,368 | ) | $ | (34,001 | ) | $ | (1,683 | ) | $ | (56,562 | ) | |||||
Investing Activities: | ||||||||||||||||||||
Proceeds from sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 203,571 | - | 203,571 | |||||||||||||||
Short-term investments | - | - | 11,857 | - | 11,857 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 64 | 202,072 | - | 202,136 | |||||||||||||||
Short-term investments | - | - | 259,076 | - | 259,076 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | (406,078 | ) | - | (406,078 | ) | |||||||||||||
Short-term investments | - | - | (165,136 | ) | - | (165,136 | ) | |||||||||||||
Dividends from subsidiaries | 318,300 | 90,000 | - | (408,300 | ) | - | ||||||||||||||
Acquisitions of furniture, equipment and other assets | (957 | ) | - | (5,933 | ) | - | (6,890 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 317,343 | - | 90,064 | - | 99,429 | - | (408,300 | ) | - | 98,536 | ||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (9,434 | ) | - | (408,300 | ) | 408,300 | (9,434 | ) | ||||||||||||
Repurchase of common shares | (303,294 | ) | - | - | - | (303,294 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 22,693 | - | - | 1,683 | 24,376 | |||||||||||||||
Net cash provided by (used in) financing activities | (290,035 | ) | - | - | - | (408,300 | ) | - | 409,983 | - | (288,352 | ) | ||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (9,599 | ) | - | (9,599 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 17,798 | 78,696 | (352,471 | ) | - | (255,977 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 70,604 | 152,122 | 1,497,669 | - | 1,720,395 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 88,402 | $ | 230,818 | $ | 1,145,198 | $ | - | $ | 1,464,418 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (10,275 | ) | $ | (9,123 | ) | $ | (145,939 | ) | $ | - | $ | (165,337 | ) | ||||||
Investing Activities: | ||||||||||||||||||||
Proceeds from the sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 747,755 | - | 747,755 | |||||||||||||||
Short-term investments | - | - | 49,447 | - | 49,447 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 85 | 280,037 | - | 280,122 | |||||||||||||||
Short-term investments | - | - | 707,756 | - | 707,756 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | (233,923 | ) | - | (233,923 | ) | |||||||||||||
Short-term investments | - | - | (331,757 | ) | - | (331,757 | ) | |||||||||||||
Dividends from subsidiaries | 155,000 | 52,900 | - | (207,900 | ) | - | ||||||||||||||
Net cash provided by (used in) investing activities | 155,000 | 52,985 | 1,219,315 | (207,900 | ) | 1,219,400 | ||||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (10,747 | ) | - | (207,900 | ) | 207,900 | (10,747 | ) | ||||||||||||
Repurchase of common shares | (115,702 | ) | - | - | - | (115,702 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 4,537 | - | - | - | 4,537 | |||||||||||||||
Net cash provided by (used in) financing activities | (121,912 | ) | - | (207,900 | ) | 207,900 | (121,912 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (4,266 | ) | - | (4,266 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 22,813 | 43,862 | 861,210 | - | 927,885 | |||||||||||||||
Cash and cash equivalents at beginning of year | 47,791 | 108,260 | 636,459 | - | 792,510 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 70,604 | $ | 152,122 | $ | 1,497,669 | $ | - | $ | 1,720,395 |
Schedule_I
Schedule I | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Schedule I [Abstract] | ||||||||||||
Schedule I - Summary of Investments - Other Than Investments in Related Parties | SCHEDULE I | |||||||||||
Platinum Underwriters Holdings, Ltd. and Subsidiaries | ||||||||||||
Summary of Investments - Other Than Investments in Related Parties | ||||||||||||
As of December 31, 2014 | ||||||||||||
($ in thousands) | ||||||||||||
Cost* | Fair Value | Amount at which shown in Balance Sheet | ||||||||||
Fixed maturity securities: | ||||||||||||
Bonds: | ||||||||||||
and authorities | $ | 136,919 | $ | 138,812 | $ | 138,812 | ||||||
States, municipalities and political subdivisions | 1,099,214 | 1,187,918 | 1,187,918 | |||||||||
Non-U.S. governments | 112,741 | 115,651 | 115,651 | |||||||||
Non-U.S. corporate | 46,150 | 47,698 | 47,698 | |||||||||
Public utilities | 72,111 | 75,593 | 75,593 | |||||||||
All other corporate | 297,806 | 307,382 | 307,382 | |||||||||
Total fixed maturity securities | 1,764,941 | 1,873,054 | 1,873,054 | |||||||||
Short-term investments | - | - | - | |||||||||
Total investments | $ | 1,764,941 | $ | 1,873,054 | $ | 1,873,054 | ||||||
* Original cost of fixed maturities securities is reduced by repayments and other-than-temporary-impairment changes and adjusted for amortization of premiums or accretion of discounts. | ||||||||||||
See accompanying report of the independent registered public accounting firm. |
Schedule_II
Schedule II | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Schedule II [Abstract] | |||||||||||||
Schedule II - Condensed Financial Information of Parent Company | SCHEDULE II | ||||||||||||
Platinum Underwriters Holdings, Ltd. | |||||||||||||
Condensed Financial Information of Registrant | |||||||||||||
Condensed Balance Sheets – Parent Company Only | |||||||||||||
December 31, 2014 and 2013 | |||||||||||||
($ in thousands, except share data) | |||||||||||||
2014 | 2013 | ||||||||||||
ASSETS | |||||||||||||
Investment in subsidiaries | $ | 1,627,917 | $ | 1,658,425 | |||||||||
Cash and cash equivalents | 113,773 | 88,402 | |||||||||||
Inter-company receivables | 11,246 | 9,739 | |||||||||||
Other assets | 2,253 | 2,135 | |||||||||||
Total assets | $ | 1,755,189 | $ | 1,758,701 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
Liabilities | |||||||||||||
Other liabilities | $ | 17,164 | $ | 11,994 | |||||||||
Total liabilities | $ | 17,164 | $ | 11,994 | |||||||||
Shareholders' equity | |||||||||||||
Common shares, $0.01 par value, 200,000,000 shares authorized | $ | 248 | $ | 281 | |||||||||
24,840,539 and 28,142,977 shares issued and outstanding, respectively. | |||||||||||||
Additional paid-in capital | 2,415 | 10,711 | |||||||||||
Accumulated other comprehensive income | 92,689 | 48,084 | |||||||||||
Retained earnings | 1,642,673 | 1,687,631 | |||||||||||
Total shareholders' equity | $ | 1,738,025 | $ | 1,746,707 | |||||||||
Total liabilities and shareholders' equity | $ | 1,755,189 | $ | 1,758,701 | |||||||||
See accompanying report of the independent registered public accounting firm. | |||||||||||||
SCHEDULE II, continued | |||||||||||||
Platinum Underwriters Holdings, Ltd. | |||||||||||||
Condensed Financial Information of Registrant | |||||||||||||
Condensed Statements of Operations – Parent Company Only | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||
($ in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Net investment income | $ | 34 | $ | 24 | $ | 10 | |||||||
Other income (expense) | 5,672 | 6,737 | 5,481 | ||||||||||
Total revenue | 5,706 | 6,761 | 5,491 | ||||||||||
Expenses: | |||||||||||||
Operating expenses | 29,206 | 26,313 | 24,733 | ||||||||||
Total expenses | 29,206 | 26,313 | 24,733 | ||||||||||
Income (loss) before income taxes | (23,500 | ) | (19,552 | ) | (19,242 | ) | |||||||
Income tax expense (benefit) | - | - | - | ||||||||||
Income (loss) before equity in earnings of subsidiaries | (23,500 | ) | (19,552 | ) | (19,242 | ) | |||||||
Equity in earnings of subsidiaries | 188,268 | 242,830 | 346,470 | ||||||||||
Net income | $ | 164,768 | $ | 223,278 | $ | 327,228 | |||||||
See accompanying report of the independent registered public accounting firm. | |||||||||||||
SCHEDULE II, continued | |||||||||||||
Platinum Underwriters Holdings, Ltd. | |||||||||||||
Condensed Financial Information of Registrant | |||||||||||||
Condensed Statements of Comprehensive Income – Parent Company Only | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||
($ in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 164,768 | $ | 223,278 | $ | 327,228 | |||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 44,605 | (89,606 | ) | (8,945 | ) | ||||||||
Comprehensive income | $ | 209,373 | $ | 133,672 | $ | 318,283 | |||||||
See accompanying report of the independent registered public accounting firm. | |||||||||||||
SCHEDULE II, continued | |||||||||||||
Platinum Underwriters Holdings, Ltd. | |||||||||||||
Condensed Financial Information of Registrant | |||||||||||||
Condensed Statements of Cash Flows – Parent Company Only | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012 | |||||||||||||
($ in thousands) | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net cash provided by (used in) operating activities | $ | (15,010 | ) | $ | (9,510 | ) | $ | (10,275 | ) | ||||
Investing Activities: | |||||||||||||
Dividends from subsidiaries | 264,000 | 318,300 | 155,000 | ||||||||||
Acquisitions of furniture, equipment and other assets | - | (957 | ) | - | |||||||||
Net cash provided by (used in) investing activities | 264,000 | 317,343 | 155,000 | ||||||||||
Financing Activities: | |||||||||||||
Dividends paid to common shareholders | (8,329 | ) | (9,434 | ) | (10,747 | ) | |||||||
Repurchase of common shares | (215,684 | ) | (303,294 | ) | (115,702 | ) | |||||||
Proceeds from share-based compensation | 394 | 22,693 | 4,537 | ||||||||||
Net cash provided by (used in) financing activities | (223,619 | ) | (290,035 | ) | (121,912 | ) | |||||||
Net increase (decrease) in cash and cash equivalents | 25,371 | 17,798 | 22,813 | ||||||||||
Cash and cash equivalents at beginning of year | 88,402 | 70,604 | 47,791 | ||||||||||
Cash and cash equivalents at end of year | $ | 113,773 | $ | 88,402 | $ | 70,604 | |||||||
Supplemental disclosures of cash flow information: | |||||||||||||
Income taxes paid, net of refunds | $ | - | $ | - | $ | - | |||||||
Interest paid | $ | - | $ | - | $ | - | |||||||
See accompanying report of the independent registered public accounting firm. |
Schedule_III
Schedule III | 12 Months Ended | |||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||||||
Schedule III [Abstract] | ||||||||||||||||||||||||||||||||||||
Schedule III - Supplementary Insurance Information | SCHEDULE III | |||||||||||||||||||||||||||||||||||
Platinum Underwriters Holdings, Ltd. | ||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information | ||||||||||||||||||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||||||||||||||||||
Period | Deferred Policy Acquisition Costs | Net Unpaid Losses and Loss Adjustment Expenses | Net Unearned Premiums | Net Earned Premiums | Net Investment Income (1) | Net Losses and Loss Adjustment Expenses Incurred | Amortization of Deferred Policy Acquisition Costs (2) | Other Operating Expenses (3) | Net Written Premiums | |||||||||||||||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||||||||||||||||||||||
Property and Marine | $ | 4,709 | $ | 256,061 | $ | 19,326 | $ | 211,640 | $ | 69,779 | $ | 40,074 | $ | 31,087 | $ | 207,867 | ||||||||||||||||||||
Casualty | 20,219 | 1,105,800 | 77,085 | 267,224 | 95,080 | 66,404 | 22,022 | 259,809 | ||||||||||||||||||||||||||||
Finite Risk | 2,664 | 71,027 | 12,958 | 27,772 | 18,542 | 7,326 | 1,310 | 24,392 | ||||||||||||||||||||||||||||
Total | $ | 27,592 | $ | 1,432,888 | $ | 109,369 | $ | 506,636 | $ | 69,421 | $ | 183,401 | $ | 113,804 | $ | 54,419 | $ | 492,068 | ||||||||||||||||||
Year ended December 31, 2013: | ||||||||||||||||||||||||||||||||||||
Property and Marine | $ | 6,111 | $ | 357,973 | $ | 23,553 | $ | 222,010 | $ | 34,421 | $ | 38,342 | $ | 30,898 | $ | 229,507 | ||||||||||||||||||||
Casualty | 21,817 | 1,243,961 | 85,377 | 297,888 | 115,888 | 71,648 | 23,149 | 295,668 | ||||||||||||||||||||||||||||
Finite Risk | 3,175 | 68,237 | 16,338 | 33,515 | 17,137 | 13,777 | 1,439 | 41,946 | ||||||||||||||||||||||||||||
Total | $ | 31,103 | $ | 1,670,171 | $ | 125,268 | $ | 553,413 | $ | 72,046 | $ | 167,446 | $ | 123,767 | $ | 55,486 | $ | 567,121 | ||||||||||||||||||
Year ended December 31, 2012: | ||||||||||||||||||||||||||||||||||||
Property and Marine | $ | 4,216 | $ | 557,481 | $ | 16,222 | $ | 253,604 | $ | 132,580 | $ | 34,342 | $ | 31,140 | $ | 256,182 | ||||||||||||||||||||
Casualty | 22,275 | 1,336,251 | 87,171 | 294,122 | 43,763 | 68,987 | 22,937 | 287,112 | ||||||||||||||||||||||||||||
Finite Risk | 1,621 | 63,953 | 7,906 | 18,770 | 7,317 | 12,108 | 1,105 | 21,706 | ||||||||||||||||||||||||||||
Total | $ | 28,112 | $ | 1,957,685 | $ | 111,299 | $ | 566,496 | $ | 99,947 | $ | 183,660 | $ | 115,437 | $ | 55,182 | $ | 565,000 | ||||||||||||||||||
(1) The Company does not manage its investments by segment and, accordingly, net investment income is not allocated to each segment. | ||||||||||||||||||||||||||||||||||||
(2) Amounts represent the net acquisition expenses in the accompanying Consolidated Statements of Operations and include total deferred acquisition costs amortized of $86.4 million, $92.0 million and $86.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||
(3) Amounts exclude corporate expenses not allocated to segments of $28.9 million, $27.2 million, and $25.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||||||||||||||||||||||
See accompanying report of the independent registered public accounting firm. |
Schedule_IV
Schedule IV | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Schedule IV [Abstract] | ||||||||||||||||||||
Schedule IV - Reinsurance | SCHEDULE IV | |||||||||||||||||||
Platinum Underwriters Holdings, Ltd. | ||||||||||||||||||||
Reinsurance | ||||||||||||||||||||
($ in thousands) | ||||||||||||||||||||
Description | Direct Amount | Ceded to Other Companies | Assumed From Other Companies | Net Amount | Percentage of Amount Assumed to Net | |||||||||||||||
Premiums written: | ||||||||||||||||||||
Year ended December 31, 2014: | ||||||||||||||||||||
Property and Marine | $ | - | $ | 12,594 | $ | 220,461 | $ | 207,867 | 106.1 | % | ||||||||||
Casualty | - | 4,465 | 264,274 | 259,809 | 101.7 | % | ||||||||||||||
Finite Risk | - | - | 24,392 | 24,392 | 100 | % | ||||||||||||||
Total | $ | - | $ | 17,059 | $ | 509,127 | $ | 492,068 | 103.5 | % | ||||||||||
Year ended December 31, 2013: | ||||||||||||||||||||
Property and Marine | $ | - | $ | 10,942 | $ | 240,449 | $ | 229,507 | 104.8 | % | ||||||||||
Casualty | - | 1,698 | 297,366 | 295,668 | 100.6 | % | ||||||||||||||
Finite Risk | - | - | 41,946 | 41,946 | 100 | % | ||||||||||||||
Total | $ | - | $ | 12,640 | $ | 579,761 | $ | 567,121 | 102.2 | % | ||||||||||
Year ended December 31, 2012: | ||||||||||||||||||||
Property and Marine | $ | - | $ | 4,636 | $ | 260,818 | $ | 256,182 | 101.8 | % | ||||||||||
Casualty | - | 88 | 287,200 | 287,112 | 100 | % | ||||||||||||||
Finite Risk | - | - | 21,706 | 21,706 | 100 | % | ||||||||||||||
Total | $ | - | $ | 4,724 | $ | 569,724 | $ | 565,000 | 100.8 | % | ||||||||||
See accompanying report of the independent registered public accounting firm. |
Basis_of_Presentation_and_Sign1
Basis of Presentation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2014 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Nature of operations | Platinum Underwriters Holdings, Ltd. (“Platinum Holdings”) is a holding company domiciled in Bermuda. Through our reinsurance subsidiaries, we provide property and marine, casualty and finite risk reinsurance coverages to a diverse clientele of insurers and select reinsurers on a worldwide basis. |
Consolidation policy | Platinum Holdings and its consolidated subsidiaries (collectively, the “Company”) include Platinum Holdings, Platinum Underwriters Bermuda, Ltd. (“Platinum Bermuda”), Platinum Underwriters Reinsurance, Inc. (“Platinum US”), Platinum Regency Holdings (“Platinum Regency”), Platinum Underwriters Finance, Inc. (“Platinum Finance”) and Platinum Administrative Services, Inc. (“PASI”). The terms "we," "us," and "our" refer to the Company, unless the context otherwise indicates. |
We operate through our licensed reinsurance subsidiaries, Platinum Bermuda, a Bermuda reinsurance company, and Platinum US, a U.S. reinsurance company. Platinum Regency is an intermediate holding company based in Ireland and a wholly owned subsidiary of Platinum Holdings. Platinum Finance is an intermediate holding company based in the U.S. and a wholly owned subsidiary of Platinum Regency. Platinum Bermuda is a wholly owned subsidiary of Platinum Holdings and Platinum US is a wholly owned subsidiary of Platinum Finance. PASI is a wholly owned subsidiary of Platinum Finance that provides administrative support services to the Company. | |
The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP"). All material inter-company transactions and accounts have been eliminated in preparing these consolidated financial statements. | |
Use of estimates | The preparation of financial statements requires us 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 may differ materially from these estimates. The major estimates used in the preparation of the Company's consolidated financial statements, and therefore considered to be critical accounting estimates, include, but are not limited to, premiums written and earned, unpaid losses and loss adjustment expenses (“LAE”), valuation of investments and income taxes. In addition, estimates are used in our risk transfer analysis for assumed and ceded reinsurance transactions. Results of changes in estimates are reflected in results of operations in the period in which the change is made. |
Investments | Investments we own that we may not have the positive intent to hold until maturity are classified as available-for-sale and reported at fair value, with related net unrealized gains or losses excluded from net income or loss, and included in shareholders’ equity as a component of accumulated other comprehensive income, net of deferred taxes. Investments we own and have the intent to sell prior to maturity, or securities for which we have elected the fair value option, are classified as trading securities. Trading securities are reported at fair value, with fair value adjustments included in net realized gains on investments and the related deferred income tax included in income tax expense or benefit in the consolidated statements of operations. |
Short-term investments are comprised of securities with a maturity of 90 days or greater but one year or less from the date of acquisition. Our U.S. dollar denominated short-term investments are accounted for as available-for-sale. We have elected to account for our non-U.S. dollar denominated short-term investments using the fair value option and they are accounted for as trading. | |
The fair value of our fixed maturity securities and short-term investments is based on prices generally obtained from index providers, pricing vendors or broker-dealers. Index providers utilize external sources and pricing models to value index-eligible securities across numerous sectors and asset classes. Pricing vendors collect, edit, maintain, evaluate and model data on a large number of securities utilizing primarily market data and observable inputs. Broker-dealers value securities through proprietary trading desks primarily based on observable inputs. | |
Premiums and discounts on fixed maturity securities are amortized into net investment income over the life or estimated life of the security using the prospective effective yield method. Premiums and discounts on mortgage-backed and asset-backed securities that are amortized into net investment income also consider prepayment assumptions. These assumptions are consistent with the current interest rate and economic environment. The prospective adjustment method is used to adjust the value of mortgage-backed and asset-backed securities. Adjustments to the amortized cost of U.S. Treasury Inflation-Protected Securities resulting from changes in the consumer price index are recognized in net investment income. Realized gains and losses on the sale of securities are determined using the specific identification method. | |
We routinely review our available-for-sale investments to determine whether unrealized losses represent temporary changes in fair value or are the result of an other-than-temporary impairment (“OTTI”). The process of determining whether a security is other-than-temporarily impaired requires judgment and involves analyzing many factors. These factors include the overall financial condition of the issuer, the length of time and magnitude of an unrealized loss, specific credit events, changes in credit ratings, the collateral structure, the credit support that may be applicable, discussions with our investment managers and other public information. | |
In addition, we evaluate projected cash flows in order to determine if a credit impairment has occurred. The amount of the credit loss of an impaired debt security is the difference between the amortized cost and the greater of (i) the present value of expected future cash flows and (ii) the fair value of the security. We recognize the portion of OTTI related to a credit loss in net income or loss in the consolidated statements of operations and the portion of OTTI related to all other factors is recognized in accumulated other comprehensive income in the consolidated balance sheets. | |
We also consider our intent to sell available-for-sale securities and the likelihood that we will be required to sell these securities before an unrealized loss is recovered. Our intent to sell a security is based, in part, on adverse changes in the creditworthiness of a debt issuer, pricing and other market conditions and our anticipated net cash flows. If we determine that we intend to sell a security that is in an unrealized loss position, then the unrealized loss related to such a security, representing the difference between the security’s amortized cost and its fair value, is recognized as a net impairment loss in the consolidated statements of operations at the time we determine our intent is to sell. | |
Cash and cash equivalents | Cash and cash equivalents include demand deposits, time deposits, money market instruments and both U.S. Government and non-U.S. government securities. Cash equivalents are generally carried at amortized cost, which approximates fair value, and are highly liquid investments with a maturity of less than 90 days at the date of acquisition. |
Premiums written and earned | Assumed reinsurance premiums earned are recognized as revenues in the consolidated statements of operations, net of any ceded premiums for retrocessional coverage purchased. Both assumed and ceded premiums written are earned generally on a basis proportionate with the coverage period. On the consolidated balance sheets, unearned premiums represent premiums written not yet recognized as revenue and prepaid reinsurance premiums represent ceded premiums written not yet earned. |
Due to the nature of reinsurance, ceding companies routinely report and remit premiums to us subsequent to the contract coverage period. Consequently, premiums written and receivable include amounts reported by the ceding companies, supplemented by our estimates of premiums that are written but not reported. The estimation of written premiums may be affected by early cancellation, election of contract provisions for cut-off and return of unearned premiums or other contract disruptions. The time lag involved in the process of reporting premiums is shorter than the lag in reporting losses. Premiums are generally reported to us in full within two years from the inception of the contract. | |
In addition to estimating premiums written, we estimate the earned portion of premiums written. The amounts we recorded on the consolidated balance sheets as estimated premiums receivable and unearned premiums are based on estimated written and earned premiums, respectively, and are subject to judgment and uncertainty. Any adjustments to written and earned premiums, and the related losses and acquisition expenses, are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. These adjustments could be material and could significantly impact earnings in the period they are recorded although the potential net impact of changes in premiums earned on our results of operations is reduced by the accrual of losses and acquisition expenses related to such premiums. | |
Certain of our reinsurance contracts include provisions that adjust premiums and/or reinstate reinsurance coverage limits based upon the loss experience under the contracts. We take these provisions into account when determining our estimates of premiums written and earned. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of a reinsurance contract to its full amount, generally coinciding with the payment of losses by the reinsurer. These premiums relate to and are earned over the future coverage period and the remaining exposure from the underlying policies. Any unearned premiums existing at the time of the reinstatement are earned immediately in proportion to the contract loss limits utilized. Additional premiums are premiums that are triggered by losses and are earned immediately. Premiums written and earned include estimates of reinstatement premiums and additional premiums based on reinsurance contract provisions and loss experience and rely on the estimates of unpaid losses and LAE. | |
We may record an allowance for uncollectible premiums if we believe an allowance is appropriate in light of our historical experience, the general profile of our ceding companies and our ability to contractually offset premiums receivable against losses and LAE and commission amounts payable to the same parties. | |
Funds held by ceding companies | We write business on a funds held basis. Under these contractual arrangements, the ceding company holds the net funds that would otherwise be remitted to us and generally credits the funds held balance with interest income at a negotiated rate established in the contract. Interest income on funds held by ceding companies is included in net investment income in the consolidated statements of operations. |
Deferred acquisition costs | Acquisition costs consist primarily of commissions and brokerage expenses that are incremental direct costs related to the successful acquisition of new or renewal contracts and are deferred and amortized over the period that the corresponding premiums are earned. An analysis of the recoverability of deferred acquisition costs is performed by determining if the sum of the future earned premiums and anticipated investment income is greater than the expected future losses and LAE. A premium deficiency is recognized if losses and LAE are expected to exceed the related unearned premiums. Any adjustments are reflected in the results of operations in the period in which they are made. Deferred acquisition costs amortized in 2014, 2013 and 2012 were $86.4 million, $92.0 million and $86.8 million, respectively, and are included in net acquisition expenses in the consolidated statements of operations. |
Unpaid losses and loss adjustment expenses | Unpaid losses and LAE are estimates of future amounts required to pay losses and LAE for claims under our assumed reinsurance contracts that have occurred at or before the balance sheet date. Unpaid losses and LAE are estimated based upon information received from ceding companies regarding our liability for unpaid losses and LAE, adjusted for our estimates of losses and LAE for which ceding company reports have not been received, our historical experience for unreported claims and industry experience for unreported claims. Unpaid losses and LAE include the cost of claims that were reported, but not yet paid, and estimates of the cost of claims incurred but not yet reported. In addition, we estimate our unallocated loss adjustment expense (“ULAE”) reserves based on our administrative costs of managing claims. |
Unpaid losses and LAE represent management’s best estimate at a given point in time and are subject to the effects of trends in loss severity and frequency. These estimates are reviewed regularly and adjusted as experience develops or new information becomes available. Any adjustments are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. It is possible that the ultimate liability may differ materially from such estimates. | |
Retrocessional reinsurance | Reinsurance is the transfer of risk, by contract, from an insurance company to a reinsurer for consideration of premium. Retrocessional reinsurance is reinsurance ceded by a reinsurer to another reinsurer, referred to as a retrocessionaire, to reinsure against all or a portion of its reinsurance written. We buy retrocessional reinsurance, which is insurance for our own account, to reduce liability on individual risks, protect against catastrophic losses and obtain additional underwriting capacity. Premiums written, premiums earned, net losses and LAE, and acquisition expenses in our statements of operations reflect the net effects of assumed and ceded reinsurance transactions. |
Estimated amounts recoverable from retrocessionaires on unpaid losses and LAE are determined based on our estimate of assumed ultimate losses and LAE and the terms and conditions of our retrocessional contracts. Reinsurance recoverable on unpaid and paid losses and LAE and prepaid reinsurance premiums are recorded as assets in the consolidated balance sheets. | |
Reinsurance deposit assets and liabilities and other reinsurance contracts | We elected to record at fair value certain assumed reinsurance contracts which by their terms preclude the use of (re)insurance accounting, including those accounted for as deposits. The deposit method of accounting is used for reinsurance contracts that do not transfer sufficient insurance risk. The analysis of risk transfer involves evaluating significant assumptions relating to the amount and timing of expected cash flows, as well as the interpretation of underlying contract terms. Our reinsurance deposit assets recorded at fair value include terms and conditions that have unique variable investment performance factors. |
Interest income or expense related to deposit assets or liabilities is recognized as incurred and is recorded in other income or expense in the consolidated statements of operations. Profit margins are earned over the settlement period of the contractual obligations. | |
Changes in the fair value of these contracts are recorded in other income or expense in the consolidated statements of operations. | |
Debt obligations and deferred debt issuance costs | Costs incurred in issuing debt are capitalized and amortized over the life of the debt. The amortization of these costs is included in interest expense in the consolidated statements of operations. |
Income taxes | We provide for income taxes for our operations in income tax paying jurisdictions. Our provision relies on estimates and interpretations of currently enacted tax laws. We recognize deferred tax assets and liabilities based on the temporary differences between the financial statement carrying amounts and the tax bases of assets and liabilities. Such temporary differences are primarily due to tax basis discounts on unpaid losses and LAE and unearned premiums, deferred acquisition costs and investments. A valuation allowance against deferred tax assets is recorded if it is more likely than not that all, or some portion, of the benefits related to deferred tax assets will not be realized. Any adjustments to deferred income taxes are accounted for as changes in estimates and are reflected in the results of operations in the period in which they are made. Any adjustments could be material and could significantly impact earnings in the period they are recorded. |
Share-based compensation | We recognize share-based compensation expense for service, performance, and market-based restricted share units, restricted shares, and share options. Service awards granted under the share incentive plan typically vest annually in equal amounts over a period of four years. Performance and market-based awards granted under the share incentive plan typically vest at the end of a three year period. |
The majority of our share-based compensation awards are accounted for as equity awards and are settled in common shares. These awards are recorded in additional paid-in capital on the consolidated balance sheets. The fair value of these awards is measured at the grant date and expensed over the service or performance period. A forfeiture rate assumption is included in the determination of the share-based compensation expense. | |
The share-based compensation awards that are settled in cash are accounted for as liability awards and are recorded in other liabilities on the consolidated balance sheets. The fair value of these awards is measured at the grant date and re-measured at the end of each reporting period based on the market price of our common shares. The current fair value is expensed over the remaining service or performance period with changes in the fair value recorded in our statements of operations. | |
Share-based compensation expense generally is reversible if the service condition is not met. Share-based compensation expense related to performance-based awards is reversible if there is a decline in either the performance factors or the market price of our common shares. Share-based compensation expense related to market-based awards is not reversible if the market conditions are not met. | |
Foreign currency exchange gains and losses | Our reporting and functional currency, and that of our reinsurance subsidiaries, is U.S. dollars. Transactions conducted in currencies other than our reporting currency are re-measured into U.S. dollars and the resulting foreign exchange gains and losses are included in net foreign currency exchange gains or losses in the consolidated statements of operations. Foreign currency exchange gains and losses related to securities classified as trading securities are also included in net foreign currency exchange gains and losses in the consolidated statements of operations. |
Earnings (loss) per common share | Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the basic earnings per common share calculation components adjusted for the dilutive effect of the conversion of share options, restricted shares and restricted share units. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||
Fixed maturity available-for-sale securities | Our fixed maturity available-for-sale securities are U.S. dollar denominated securities. The following table sets forth our fixed maturity available-for-sale securities as of December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||||
Included in Accumulated Other Comprehensive Income | |||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | Non-credit portion of OTTI(1) | |||||||||||||||||
December 31, 2014: | |||||||||||||||||||||
U.S. Government | $ | 49,386 | $ | 99 | $ | - | $ | 49,485 | $ | - | |||||||||||
U.S. Government agencies | 87,533 | 1,931 | 137 | 89,327 | - | ||||||||||||||||
Municipal bonds | 1,116,672 | 90,392 | 715 | 1,206,349 | - | ||||||||||||||||
Non-U.S. governments | 24,998 | 84 | - | 25,082 | - | ||||||||||||||||
Corporate bonds | 204,210 | 8,121 | 2,242 | 210,089 | 458 | ||||||||||||||||
Commercial mortgage-backed securities | 55,747 | 3,356 | 223 | 58,880 | - | ||||||||||||||||
Residential mortgage-backed securities | 122,475 | 2,217 | 295 | 124,397 | 87 | ||||||||||||||||
Asset-backed securities | 16,177 | 2,808 | 109 | 18,876 | - | ||||||||||||||||
Total fixed maturity available-for-sale securities | $ | 1,677,198 | $ | 109,008 | $ | 3,721 | $ | 1,782,485 | $ | 545 | |||||||||||
December 31, 2013: | |||||||||||||||||||||
U.S. Government | $ | 4,561 | $ | 204 | $ | - | $ | 4,765 | $ | - | |||||||||||
U.S. Government agencies | 51,847 | - | 725 | 51,122 | - | ||||||||||||||||
Municipal bonds | 1,220,869 | 54,333 | 5,955 | 1,269,247 | - | ||||||||||||||||
Non-U.S. governments | 39,973 | 541 | - | 40,514 | - | ||||||||||||||||
Corporate bonds | 224,095 | 6,704 | 3,564 | 227,235 | - | ||||||||||||||||
Commercial mortgage-backed securities | 72,641 | 4,982 | 132 | 77,491 | - | ||||||||||||||||
Residential mortgage-backed securities | 169,699 | 1,335 | 1,069 | 169,965 | 331 | ||||||||||||||||
Asset-backed securities | 16,203 | 1,657 | 329 | 17,531 | 305 | ||||||||||||||||
Total fixed maturity available-for-sale securities | $ | 1,799,888 | $ | 69,756 | $ | 11,774 | $ | 1,857,870 | $ | 636 | |||||||||||
(1) The non-credit portion of OTTI represents the amount of unrealized losses on impaired securities that were not recorded in the consolidated statements of operations as of the reporting date. These unrealized losses are included in gross unrealized losses as of December 31, 2014 and 2013. | |||||||||||||||||||||
Contractual maturities of fixed maturity available-for-sale securities and trading securities | The following table sets forth the amortized cost and fair value of our fixed maturity available-for-sale and trading securities by stated maturity as of December 31, 2014 ($ in thousands): | ||||||||||||||||||||
Amortized Cost | Fair Value | ||||||||||||||||||||
Due in one year or less | $ | 170,160 | $ | 172,017 | |||||||||||||||||
Due from one to five years | 416,440 | 434,277 | |||||||||||||||||||
Due from five to ten years | 598,084 | 631,367 | |||||||||||||||||||
Due in ten or more years | 385,858 | 433,240 | |||||||||||||||||||
Mortgage-backed and asset-backed securities | 194,399 | 202,153 | |||||||||||||||||||
Total | $ | 1,764,941 | $ | 1,873,054 | |||||||||||||||||
Net impairment losses on investments | The following table sets forth the net impairment losses on investments for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Corporate bonds | $ | 454 | $ | - | $ | - | |||||||||||||||
Commercial mortgage-backed securities | - | - | 30 | ||||||||||||||||||
Non-agency residential mortgage-backed securities | 385 | 1,439 | 2,896 | ||||||||||||||||||
Sub-prime asset-backed securities | 1 | 594 | 105 | ||||||||||||||||||
Net impairment losses on investments | $ | 840 | $ | 2,033 | $ | 3,031 | |||||||||||||||
Summary of cumulative credit losses recognized on fixed maturity available-for-sale securities | The following table sets forth a summary of the cumulative credit losses recognized on our fixed maturity available-for-sale securities for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Balance, beginning of year | $ | 31,603 | $ | 40,219 | $ | 61,841 | |||||||||||||||
Credit losses on securities not previously impaired | 454 | - | 42 | ||||||||||||||||||
Additional credit losses on securities previously impaired | 386 | 2,033 | 2,989 | ||||||||||||||||||
Reduction for paydowns and securities sold | (5,372 | ) | (10,012 | ) | (23,766 | ) | |||||||||||||||
Reduction for increases in cash flows expected to be collected | (1,168 | ) | (637 | ) | (887 | ) | |||||||||||||||
Balance, end of year | $ | 25,903 | $ | 31,603 | $ | 40,219 | |||||||||||||||
Gross unrealized losses on fixed maturity securities classified as available-for-sale | The following table sets forth our gross unrealized losses on securities classified as fixed maturity available-for-sale aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||
Less than twelve months: | |||||||||||||||||||||
U.S. Government agencies | $ | 14,472 | $ | 137 | $ | 41,122 | $ | 725 | |||||||||||||
Municipal bonds | - | - | 247,873 | 5,955 | |||||||||||||||||
Corporate bonds | 32,017 | 1,296 | 90,789 | 3,486 | |||||||||||||||||
Commercial mortgage-backed securities | - | - | 2,938 | 1 | |||||||||||||||||
Residential mortgage-backed securities | 1,912 | 23 | 35,910 | 172 | |||||||||||||||||
Asset-backed securities | 13,491 | 109 | 13,576 | 24 | |||||||||||||||||
Total | $ | 61,892 | $ | 1,565 | $ | 432,208 | $ | 10,363 | |||||||||||||
Twelve months or more: | |||||||||||||||||||||
U.S. Government agencies | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Municipal bonds | 42,247 | 715 | - | - | |||||||||||||||||
Corporate bonds | 14,121 | 946 | 920 | 78 | |||||||||||||||||
Commercial mortgage-backed securities | 4,528 | 223 | 4,624 | 131 | |||||||||||||||||
Residential mortgage-backed securities | 6,738 | 272 | 10,587 | 897 | |||||||||||||||||
Asset-backed securities | - | - | 699 | 305 | |||||||||||||||||
Total | $ | 67,634 | $ | 2,156 | $ | 16,830 | $ | 1,411 | |||||||||||||
Total unrealized losses: | |||||||||||||||||||||
U.S. Government agencies | $ | 14,472 | $ | 137 | $ | 41,122 | $ | 725 | |||||||||||||
Municipal bonds | 42,247 | 715 | 247,873 | 5,955 | |||||||||||||||||
Corporate bonds | 46,138 | 2,242 | 91,709 | 3,564 | |||||||||||||||||
Commercial mortgage-backed securities | 4,528 | 223 | 7,562 | 132 | |||||||||||||||||
Residential mortgage-backed securities | 8,650 | 295 | 46,497 | 1,069 | |||||||||||||||||
Asset-backed securities | 13,491 | 109 | 14,275 | 329 | |||||||||||||||||
Total | $ | 129,526 | $ | 3,721 | $ | 449,038 | $ | 11,774 | |||||||||||||
Net investment income | The following table sets forth our net investment income for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Fixed maturity securities | $ | 66,749 | $ | 68,455 | $ | 94,307 | |||||||||||||||
Short-term investments and cash and cash equivalents | 2,794 | 4,419 | 7,319 | ||||||||||||||||||
Funds held by ceding companies | 3,538 | 3,190 | 2,648 | ||||||||||||||||||
Subtotal | 73,081 | 76,064 | 104,274 | ||||||||||||||||||
Investment expenses | (3,660 | ) | (4,018 | ) | (4,327 | ) | |||||||||||||||
Net investment income | $ | 69,421 | $ | 72,046 | $ | 99,947 | |||||||||||||||
Net realized gains and losses on investments | The following table sets forth our net realized gains on investments for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Gross realized gains on the sale of investments | $ | 5,372 | $ | 27,258 | $ | 90,100 | |||||||||||||||
Gross realized losses on the sale of investments | - | (15 | ) | (3 | ) | ||||||||||||||||
Net realized gains on the sale of investments | 5,372 | 27,243 | 90,097 | ||||||||||||||||||
Fair value adjustments on trading securities | (2,610 | ) | (3,323 | ) | (1,343 | ) | |||||||||||||||
Net realized gains on investments | $ | 2,762 | $ | 23,920 | $ | 88,754 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Fair Value Measurements [Abstract] | |||||||||||||||||||
Fair value measurement of assets and liabilities | The following table presents the fair value hierarchy for those financial assets measured at fair value on a recurring basis by the Company as of December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||
Fair Value Measurement Using: | |||||||||||||||||||
Total | Level 1 | Level 2 | Level 3 | ||||||||||||||||
December 31, 2014: | |||||||||||||||||||
Investments: | |||||||||||||||||||
U.S. Government | $ | 49,485 | $ | 49,485 | $ | - | $ | - | |||||||||||
U.S. Government agencies | 89,327 | - | 89,327 | - | |||||||||||||||
Municipal bonds | 1,206,349 | - | 1,206,349 | - | |||||||||||||||
Non-U.S. governments | 115,651 | 49,888 | 65,763 | - | |||||||||||||||
Corporate bonds | 210,089 | - | 210,089 | - | |||||||||||||||
Commercial mortgage-backed securities | 58,880 | - | 58,880 | - | |||||||||||||||
Residential mortgage-backed securities | 124,397 | - | 124,397 | - | |||||||||||||||
Asset-backed securities | 18,876 | - | 15,404 | 3,472 | |||||||||||||||
Total investments | 1,873,054 | 99,373 | 1,770,209 | 3,472 | |||||||||||||||
Cash and cash equivalents | 1,434,984 | 1,417,431 | 17,553 | - | |||||||||||||||
Reinsurance deposit assets | 82,937 | - | - | 82,937 | |||||||||||||||
Total | $ | 3,390,975 | $ | 1,516,804 | $ | 1,787,762 | $ | 86,409 | |||||||||||
December 31, 2013: | |||||||||||||||||||
Investments: | |||||||||||||||||||
U.S. Government | $ | 4,765 | $ | 4,765 | $ | - | $ | - | |||||||||||
U.S. Government agencies | 51,122 | - | 51,122 | - | |||||||||||||||
Municipal bonds | 1,269,247 | - | 1,269,247 | - | |||||||||||||||
Non-U.S. governments | 143,909 | 54,980 | 88,929 | - | |||||||||||||||
Corporate bonds | 227,235 | - | 227,235 | - | |||||||||||||||
Commercial mortgage-backed securities | 77,491 | - | 77,491 | - | |||||||||||||||
Residential mortgage-backed securities | 169,965 | - | 169,372 | 593 | |||||||||||||||
Asset-backed securities | 17,531 | - | 15,304 | 2,227 | |||||||||||||||
Short -term investments | 66,679 | 8,933 | 57,746 | - | |||||||||||||||
Total investments | 2,027,944 | 68,678 | 1,956,446 | 2,820 | |||||||||||||||
Cash and cash equivalents | 1,464,418 | 1,464,418 | - | - | |||||||||||||||
Reinsurance deposit assets | 79,303 | - | - | 79,303 | |||||||||||||||
Total | $ | 3,571,665 | $ | 1,533,096 | $ | 1,956,446 | $ | 82,123 | |||||||||||
Fair value assets measured on recurring basis unobservable input reconciliation | The following table reconciles the beginning and ending balance for our Level 3 financial assets measured at fair value on a recurring basis for the years ended December 31, 2014 and 2013 ($ in thousands): | ||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Commercial mortgage-backed securities | Residential mortgage-backed securities | Asset-backed securities | Reinsurance deposit assets | Total | |||||||||||||||
Balance, beginning of year | $ | - | $ | 593 | $ | 2,227 | $ | 79,303 | $82,123 | ||||||||||
Sales, maturities and paydowns | - | (3,207 | ) | (236 | ) | - | -3,443 | ||||||||||||
Total increase (decrease) in fair value included in net income | - | - | - | 3,634 | 3,634 | ||||||||||||||
Total net unrealized gains (losses) included in other comprehensive income (loss) | 148 | 2,899 | 1,942 | - | 4,989 | ||||||||||||||
Transfers into Level 3 | 3,768 | 4,704 | 3,630 | - | 12,102 | ||||||||||||||
Transfers out of Level 3 | (3,916 | ) | (4,989 | ) | (4,091 | ) | - | -12,996 | |||||||||||
Balance, end of year | $ | - | $ | - | $ | 3,472 | $ | 82,937 | $86,409 | ||||||||||
Total increase (decrease) in fair value of the financial assets included in earnings for the year | $ | - | $ | - | $ | - | $ | 3,634 | $3,634 | ||||||||||
Year Ended December 31, 2013 | |||||||||||||||||||
Commercial mortgage-backed securities | Residential mortgage-backed securities | Asset-backed securities | Reinsurance deposit assets | Total | |||||||||||||||
Balance, beginning of year | $ | 524 | $ | 5,374 | $ | 1,036 | $ | 50,693 | $57,627 | ||||||||||
Purchases | - | - | - | 25,000 | 25,000 | ||||||||||||||
Sales, maturities and paydowns | - | (448 | ) | (29 | ) | - | -477 | ||||||||||||
Total increase (decrease) in fair value included in net income | - | - | - | 3,610 | 3,610 | ||||||||||||||
Total net unrealized gains (losses) included in other comprehensive income (loss) | 487 | 799 | (4 | ) | - | 1,282 | |||||||||||||
Transfers into Level 3 | - | 4,091 | 3,984 | - | 8,075 | ||||||||||||||
Transfers out of Level 3 | (1,011 | ) | (9,223 | ) | (2,760 | ) | - | -12,994 | |||||||||||
Balance, end of year | $ | - | $ | 593 | $ | 2,227 | $ | 79,303 | $82,123 | ||||||||||
Total increase (decrease) in fair value of the financial assets included in earnings for the year | $ | - | $ | - | $ | - | $ | 3,610 | $3,610 | ||||||||||
Fair value assets quantitative information | The following table sets forth the weighted average of the significant unobservable quantitative information used for the fair value measurement of our reinsurance deposit assets as of December 31, 2014 and December 31, 2013: | ||||||||||||||||||
31-Dec-14 | 31-Dec-13 | ||||||||||||||||||
Estimated contract period remaining | 834 days | 1,193 days | |||||||||||||||||
Credit spread above the risk-free rate | 1.46 | % | 1.58 | % | |||||||||||||||
Net losses and LAE ceded inception-to-date | $ | - | $ | - |
Unpaid_Losses_and_Loss_Adjustm1
Unpaid Losses and Loss Adjustment Expenses (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Unpaid Losses and Loss Adjustment Expense [Abstract] | ||||||||||||
Liability for unpaid losses and loss adjustment expenses | The following table sets forth the changes in our liability for unpaid losses and LAE for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Net unpaid losses and LAE as of January 1, | $ | 1,670,171 | $ | 1,957,685 | $ | 2,385,659 | ||||||
Net incurred losses and LAE related to: | ||||||||||||
Current year | 311,491 | 328,136 | 395,661 | |||||||||
Prior years | (128,090 | ) | (160,690 | ) | (212,001 | ) | ||||||
Net incurred losses and LAE | 183,401 | 167,446 | 183,660 | |||||||||
Net paid losses and LAE related to: | ||||||||||||
Current year | 75,511 | 58,958 | 95,808 | |||||||||
Prior years | 326,673 | 386,408 | 524,423 | |||||||||
Net paid losses and LAE | 402,184 | 445,366 | 620,231 | |||||||||
Net effects of foreign currency exchange rate changes | (18,500 | ) | (9,594 | ) | 8,597 | |||||||
Net unpaid losses and LAE as of December 31, | 1,432,888 | 1,670,171 | 1,957,685 | |||||||||
Reinsurance recoverable on unpaid losses and LAE | 2,810 | 1,194 | 3,597 | |||||||||
Gross unpaid losses and LAE as of December 31, | $ | 1,435,698 | $ | 1,671,365 | $ | 1,961,282 | ||||||
Components of net incurred losses and loss adjustment expenses related to prior years | The following table sets forth the components of net incurred losses and LAE related to prior years for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Net favorable loss development | $ | (127,633 | ) | $ | (183,293 | ) | $ | (235,543 | ) | |||
Increase (decrease) in losses attributable to changes in premium estimates | (457 | ) | 22,603 | 23,542 | ||||||||
Net incurred losses and LAE - prior years | $ | (128,090 | ) | $ | (160,690 | ) | $ | (212,001 | ) | |||
Loss development by operating segment | The following table sets forth the net favorable loss development by operating segment for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Property and Marine | $ | (27,382 | ) | $ | (71,269 | ) | $ | (45,664 | ) | |||
Casualty | (97,795 | ) | (103,165 | ) | (182,014 | ) | ||||||
Finite Risk | (2,456 | ) | (8,859 | ) | (7,865 | ) | ||||||
Net favorable loss development | $ | (127,633 | ) | $ | (183,293 | ) | $ | (235,543 | ) |
Retrocessional_Reinsurance_Tab
Retrocessional Reinsurance (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Retrocessional Reinsurance [Abstract] | ||||||||||||
Effects of retrocessional reinsurance on premiums, losses and LAE | The following table sets forth the effects of retrocessional reinsurance on premiums, losses and LAE for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Assumed: | ||||||||||||
Premiums written | $ | 509,127 | $ | 579,761 | $ | 569,724 | ||||||
Premium earned | 522,747 | 567,682 | 576,920 | |||||||||
Losses and LAE | 185,024 | 164,565 | 183,376 | |||||||||
Ceded: | ||||||||||||
Premiums written | (17,059 | ) | (12,640 | ) | (4,724 | ) | ||||||
Premium earned | (16,111 | ) | (14,269 | ) | (10,424 | ) | ||||||
Losses and LAE | (1,623 | ) | 2,881 | 284 | ||||||||
Net: | ||||||||||||
Premiums written | 492,068 | 567,121 | 565,000 | |||||||||
Premium earned | 506,636 | 553,413 | 566,496 | |||||||||
Losses and LAE | $ | 183,401 | $ | 167,446 | $ | 183,660 |
Debt_Obligations_And_Credit_Fa1
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income (loss) before income taxes by jurisdiction | The following table presents our income before income taxes by jurisdiction for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Bermuda | $ | 123,371 | $ | 151,289 | $ | 272,163 | ||||||
United States | 58,851 | 106,869 | 80,322 | |||||||||
Ireland and other | (220 | ) | (153 | ) | (261 | ) | ||||||
Income before income taxes | $ | 182,002 | $ | 258,005 | $ | 352,224 | ||||||
Current and deferred income taxes | The following table presents our current and deferred income taxes for the years ended years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense | $ | 12,317 | $ | 24,708 | $ | 16,205 | ||||||
Deferred tax expense | 4,917 | 10,019 | 8,791 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
Reconciliation of expected income taxes to income tax expense (benefit) | The following table presents a reconciliation of expected income taxes, computed by applying the tax rate of 0% under Bermuda law to income before income taxes, to income tax expense for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected income tax expense at 0% | $ | - | $ | - | $ | - | ||||||
Foreign taxes at local expected rates: | ||||||||||||
United States | 20,598 | 37,404 | 28,113 | |||||||||
Ireland and other | (55 | ) | (38 | ) | (60 | ) | ||||||
Tax exempt investment income | (5,248 | ) | (4,745 | ) | (4,470 | ) | ||||||
U.S. state taxes, net of U.S. federal tax benefit | 459 | 455 | 355 | |||||||||
Prior year adjustment | - | - | (305 | ) | ||||||||
Non-deductible expenses and other | 1,480 | 1,651 | 1,363 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
Deferred tax assets and liabilities | The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 ($ in thousands): | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Unpaid losses and LAE | $ | 29,598 | $ | 34,365 | ||||||||
Unearned premiums | 6,340 | 7,136 | ||||||||||
Temporary differences in recognition of expenses | 3,210 | 3,178 | ||||||||||
Total deferred tax assets | $ | 39,148 | $ | 44,679 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred acquisition costs | $ | 8,579 | $ | 9,333 | ||||||||
Unrealized gains on investments | 12,598 | 9,898 | ||||||||||
Other | 448 | 307 | ||||||||||
Total deferred tax liabilities | 21,625 | 19,538 | ||||||||||
Net deferred tax assets | $ | 17,523 | $ | 25,141 |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Income Taxes [Abstract] | ||||||||||||
Income (loss) before income taxes by jurisdiction | The following table presents our income before income taxes by jurisdiction for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Bermuda | $ | 123,371 | $ | 151,289 | $ | 272,163 | ||||||
United States | 58,851 | 106,869 | 80,322 | |||||||||
Ireland and other | (220 | ) | (153 | ) | (261 | ) | ||||||
Income before income taxes | $ | 182,002 | $ | 258,005 | $ | 352,224 | ||||||
Current and deferred income taxes | The following table presents our current and deferred income taxes for the years ended years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Current tax expense | $ | 12,317 | $ | 24,708 | $ | 16,205 | ||||||
Deferred tax expense | 4,917 | 10,019 | 8,791 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
Reconciliation of expected income taxes to income tax expense (benefit) | The following table presents a reconciliation of expected income taxes, computed by applying the tax rate of 0% under Bermuda law to income before income taxes, to income tax expense for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||
2014 | 2013 | 2012 | ||||||||||
Expected income tax expense at 0% | $ | - | $ | - | $ | - | ||||||
Foreign taxes at local expected rates: | ||||||||||||
United States | 20,598 | 37,404 | 28,113 | |||||||||
Ireland and other | (55 | ) | (38 | ) | (60 | ) | ||||||
Tax exempt investment income | (5,248 | ) | (4,745 | ) | (4,470 | ) | ||||||
U.S. state taxes, net of U.S. federal tax benefit | 459 | 455 | 355 | |||||||||
Prior year adjustment | - | - | (305 | ) | ||||||||
Non-deductible expenses and other | 1,480 | 1,651 | 1,363 | |||||||||
Income tax expense | $ | 17,234 | $ | 34,727 | $ | 24,996 | ||||||
Deferred tax assets and liabilities | The following table presents the tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 ($ in thousands): | |||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Unpaid losses and LAE | $ | 29,598 | $ | 34,365 | ||||||||
Unearned premiums | 6,340 | 7,136 | ||||||||||
Temporary differences in recognition of expenses | 3,210 | 3,178 | ||||||||||
Total deferred tax assets | $ | 39,148 | $ | 44,679 | ||||||||
Deferred tax liabilities: | ||||||||||||
Deferred acquisition costs | $ | 8,579 | $ | 9,333 | ||||||||
Unrealized gains on investments | 12,598 | 9,898 | ||||||||||
Other | 448 | 307 | ||||||||||
Total deferred tax liabilities | 21,625 | 19,538 | ||||||||||
Net deferred tax assets | $ | 17,523 | $ | 25,141 |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Shareholders' Equity [Abstract] | |||||||||||||
Schedule of common stock outstanding roll forward | Platinum Holdings is authorized to issue up to 200,000,000 common shares, $0.01 par value. The following table reconciles the beginning and ending balance of common shares issued and outstanding for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Shares issued and outstanding, beginning of year | 28,143 | 32,722 | 35,526 | ||||||||||
Options exercised | 12 | 685 | 170 | ||||||||||
Restricted shares issued (1) | 41 | (13 | ) | (5 | ) | ||||||||
Restricted share units issued | 204 | 109 | 120 | ||||||||||
Shares repurchased | (3,559 | ) | (5,360 | ) | (3,089 | ) | |||||||
Shares issued and outstanding, end of year | 24,841 | 28,143 | 32,722 | ||||||||||
(1) Restricted shares issued are net of forfeitures and cancelations. | |||||||||||||
Reconciliation of beginning and ending balances for accumulated other comprehensive income | The following table reconciles the beginning and ending balances for accumulated other comprehensive income for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 57,982 | $ | (9,898 | ) | $ | 48,084 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | (991 | ) | 1 | (990 | ) | ||||||||
Change in net unrealized gains and losses on all other securities | 52,828 | (3,571 | ) | 49,257 | |||||||||
Total change in net unrealized gains and losses | 51,837 | (3,570 | ) | 48,267 | |||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (5,372 | ) | 871 | (4,501 | ) | ||||||||
Net impairment losses on investments | 840 | (1 | ) | 839 | |||||||||
Total reclassifications to net income | (4,532 | ) | 870 | (3,662 | ) | ||||||||
Other comprehensive income (loss) | 47,305 | (2,700 | ) | 44,605 | |||||||||
Balance, end of year | $ | 105,287 | $ | (12,598 | ) | $ | 92,689 | ||||||
2013 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 159,975 | $ | (22,285 | ) | $ | 137,690 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | (631 | ) | 11 | (620 | ) | ||||||||
Change in net unrealized gains and losses on all other securities | (76,152 | ) | 8,734 | (67,418 | ) | ||||||||
Total change in net unrealized gains and losses | (76,783 | ) | 8,745 | (68,038 | ) | ||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (27,243 | ) | 3,675 | (23,568 | ) | ||||||||
Net impairment losses on investments | 2,033 | (33 | ) | 2,000 | |||||||||
Total reclassifications to net income | (25,210 | ) | 3,642 | (21,568 | ) | ||||||||
Other comprehensive income (loss) | (101,993 | ) | 12,387 | (89,606 | ) | ||||||||
Balance, end of year | $ | 57,982 | $ | (9,898 | ) | $ | 48,084 | ||||||
2012 | |||||||||||||
Pre-tax | Tax | Net of tax | |||||||||||
Balance, beginning of year | $ | 168,861 | $ | (22,226 | ) | $ | 146,635 | ||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | |||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | 211 | 99 | 310 | ||||||||||
Change in net unrealized gains and losses on all other securities | 77,652 | (5,508 | ) | 72,144 | |||||||||
Total change in net unrealized gains and losses | 77,863 | (5,409 | ) | 72,454 | |||||||||
Reclassifications to net income on available-for-sale securities: | |||||||||||||
Net realized gains on investments | (89,780 | ) | 5,652 | (84,128 | ) | ||||||||
Net impairment losses on investments | 3,031 | (302 | ) | 2,729 | |||||||||
Total reclassifications to net income | (86,749 | ) | 5,350 | (81,399 | ) | ||||||||
Other comprehensive income (loss) | (8,886 | ) | (59 | ) | (8,945 | ) | |||||||
Balance, end of year | $ | 159,975 | $ | (22,285 | ) | $ | 137,690 | ||||||
Amounts reclassified out of accumulated other comprehensive income | The following table sets forth the amounts reclassified out of accumulated other comprehensive income and the location of those amounts in the consolidated statements of operations for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Revenue: | |||||||||||||
Net realized gains on investments | $ | (5,372 | ) | $ | (27,243 | ) | $ | (89,780 | ) | ||||
Net impairment losses on investments | 840 | 2,033 | 3,031 | ||||||||||
Income tax expense | $ | 870 | $ | 3,642 | $ | 5,350 | |||||||
Repurchases of common shares | Our Board of Directors has authorized the repurchase of our common shares through a share repurchase program. Since the program was established, our Board of Directors has approved increases in the repurchase program from time to time, most recently on April 22, 2014, to result in authority as of such date to repurchase up to a total of $250.0 million of our common shares. The following table summarizes our repurchases of common shares for the years ended December 31, 2014, 2013 and 2012 ($ in thousands, except per share data): | ||||||||||||
Year | Shares Repurchased | Weighted Average Cost per Share (1) | Aggregate Amount Paid | ||||||||||
2014 | 3,558,690 | $ | 60.61 | $ | 215,684 | ||||||||
2013 | 5,360,266 | 56.58 | 303,294 | ||||||||||
2012 | 3,088,589 | $ | 37.46 | $ | 115,702 | ||||||||
(1) Including commissions. |
Statutory_Regulations_And_Divi1
Statutory Regulations And Dividend Restrictions (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Dividend Restrictions [Abstract] | |||||||||
Statutory capital and surplus and minimum capital adequacy | The following table sets forth the actual statutory capital and surplus for our reinsurance subsidiaries and the corresponding minimum capital adequacy levels noted above as of December 31, 2014 and 2013 ($ in thousands): | ||||||||
2014 | 2013 | ||||||||
Actual statutory capital and surplus: | |||||||||
Platinum Bermuda | $ | 981,136 | $ | 1,057,281 | |||||
Platinum US | $ | 531,368 | $ | 549,242 | |||||
Required statutory capital and surplus: | |||||||||
Platinum Bermuda | $ | 248,758 | $ | 327,221 | |||||
Platinum US | $ | 242,670 | $ | 258,528 |
Operating_Segment_Information_
Operating Segment Information (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Operating Segment Information [Abstract] | ||||||||||||||||
Operating segment underwriting activity, ratios and income reconciliation | The following table summarizes underwriting income or loss and related underwriting ratios for the three operating segments, together with a reconciliation of segment underwriting income (loss) to the U.S. GAAP measure of income before income taxes for the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | |||||||||||||||
2014 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 207,867 | $ | 259,809 | $ | 24,392 | $ | 492,068 | ||||||||
Net premiums earned | 211,640 | 267,224 | 27,772 | 506,636 | ||||||||||||
Net losses and loss adjustment expenses | 69,779 | 95,080 | 18,542 | 183,401 | ||||||||||||
Net acquisition expenses | 40,074 | 66,404 | 7,326 | 113,804 | ||||||||||||
Other underwriting expenses | 31,087 | 22,022 | 1,310 | 54,419 | ||||||||||||
Segment underwriting income (loss) | $ | 70,700 | $ | 83,718 | $ | 594 | 155,012 | |||||||||
Net investment income | 69,421 | |||||||||||||||
Net realized gains on investments | 2,762 | |||||||||||||||
Net impairment losses on investments | (840 | ) | ||||||||||||||
Other income (expense) | 3,180 | |||||||||||||||
Corporate expenses not allocated to segments | (28,890 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | 512 | |||||||||||||||
Interest expense | (19,155 | ) | ||||||||||||||
Income before income taxes | $ | 182,002 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 33 | % | 35.6 | % | 66.8 | % | 36.2 | % | ||||||||
Net acquisition expense | 18.9 | % | 24.8 | % | 26.4 | % | 22.5 | % | ||||||||
Other underwriting expense | 14.7 | % | 8.2 | % | 4.7 | % | 10.7 | % | ||||||||
Combined | 66.6 | % | 68.6 | % | 97.9 | % | 69.4 | % | ||||||||
2013 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 229,507 | $ | 295,668 | $ | 41,946 | $ | 567,121 | ||||||||
Net premiums earned | 222,010 | 297,888 | 33,515 | 553,413 | ||||||||||||
Net losses and loss adjustment expenses | 34,421 | 115,888 | 17,137 | 167,446 | ||||||||||||
Net acquisition expenses | 38,342 | 71,648 | 13,777 | 123,767 | ||||||||||||
Other underwriting expenses | 30,898 | 23,149 | 1,439 | 55,486 | ||||||||||||
Segment underwriting income (loss) | $ | 118,349 | $ | 87,203 | $ | 1,162 | 206,714 | |||||||||
Net investment income | 72,046 | |||||||||||||||
Net realized gains on investments | 23,920 | |||||||||||||||
Net impairment losses on investments | (2,033 | ) | ||||||||||||||
Other income (expense) | 3,477 | |||||||||||||||
Corporate expenses not allocated to segments | (27,228 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | 234 | |||||||||||||||
Interest expense | (19,125 | ) | ||||||||||||||
Income before income taxes | $ | 258,005 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 15.5 | % | 38.9 | % | 51.1 | % | 30.3 | % | ||||||||
Net acquisition expense | 17.3 | % | 24.1 | % | 41.1 | % | 22.4 | % | ||||||||
Other underwriting expense | 13.9 | % | 7.8 | % | 4.3 | % | 10 | % | ||||||||
Combined | 46.7 | % | 70.8 | % | 96.5 | % | 62.7 | % | ||||||||
2012 | ||||||||||||||||
Property and Marine | Casualty | Finite Risk | Total | |||||||||||||
Net premiums written | $ | 256,182 | $ | 287,112 | $ | 21,706 | $ | 565,000 | ||||||||
Net premiums earned | 253,604 | 294,122 | 18,770 | 566,496 | ||||||||||||
Net losses and loss adjustment expenses | 132,580 | 43,763 | 7,317 | 183,660 | ||||||||||||
Net acquisition expenses | 34,342 | 68,987 | 12,108 | 115,437 | ||||||||||||
Other underwriting expenses | 31,140 | 22,937 | 1,105 | 55,182 | ||||||||||||
Segment underwriting income (loss) | $ | 55,542 | $ | 158,435 | $ | (1,760 | ) | 212,217 | ||||||||
Net investment income | 99,947 | |||||||||||||||
Net realized gains on investments | 88,754 | |||||||||||||||
Net impairment losses on investments | (3,031 | ) | ||||||||||||||
Other income (expense) | (239 | ) | ||||||||||||||
Corporate expenses not allocated to segments | (25,271 | ) | ||||||||||||||
Net foreign currency exchange (losses) gains | (1,055 | ) | ||||||||||||||
Interest expense | (19,098 | ) | ||||||||||||||
Income (loss) before income taxes | $ | 352,224 | ||||||||||||||
Underwriting ratios: | ||||||||||||||||
Net loss and loss adjustment expense | 52.3 | % | 14.9 | % | 39 | % | 32.4 | % | ||||||||
Net acquisition expense | 13.5 | % | 23.5 | % | 64.5 | % | 20.4 | % | ||||||||
Other underwriting expense | 12.3 | % | 7.8 | % | 5.9 | % | 9.7 | % | ||||||||
Combined | 78.1 | % | 46.2 | % | 109.4 | % | 62.5 | % | ||||||||
Schedule of net premiums written by geographical location | The following table presents our net premiums written for the years ended December 31, 2014, 2013 and 2012 by geographic location of the ceding company ($ in thousands): | |||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||
United States | $ | 386,743 | $ | 444,110 | $ | 441,762 | ||||||||||
International | 105,325 | 123,011 | 123,238 | |||||||||||||
Total | $ | 492,068 | $ | 567,121 | $ | 565,000 |
Share_Incentive_Compensation_a1
Share Incentive Compensation and Defined Contribution Retirement Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Total share-based compensation expense recognized | The following table provides the total share-based compensation expense recognized during the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Restricted share units: | |||||||||||||||||||||||||
Service-based awards | $ | 4,420 | $ | 4,198 | $ | 3,974 | |||||||||||||||||||
Performance-based awards | 6,299 | 6,264 | 2,810 | ||||||||||||||||||||||
Market-based awards | 3,369 | 3,173 | 1,617 | ||||||||||||||||||||||
Restricted shares | 357 | 883 | 1,666 | ||||||||||||||||||||||
Share options | - | - | 70 | ||||||||||||||||||||||
Share based compensation expense | 14,445 | 14,518 | 10,137 | ||||||||||||||||||||||
Tax benefit | (2,562 | ) | (2,560 | ) | (1,829 | ) | |||||||||||||||||||
Share based compensation expense, net of taxes | $ | 11,883 | $ | 11,958 | $ | 8,308 | |||||||||||||||||||
Market-based valuation assumptions | The grant date fair value of market share units is based on a Monte Carlo simulated fair value per share unit at the grant date multiplied by the number of share units granted. The Monte Carlo simulation used the following weighted average assumptions for awards granted during the years ended December 31, 2013 and 2012: | ||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Dividend yield | 0.6 | % | 0.9 | % | |||||||||||||||||||||
Risk free interest rate | 0.6 | % | 0.3 | % | |||||||||||||||||||||
Expected volatility - historical | 23.4 | % | 24.9 | % | |||||||||||||||||||||
Initial average share price | $ | 57.19 | $ | 35.17 | |||||||||||||||||||||
Weighted average grant fair value | $ | 61.58 | $ | 41.93 | |||||||||||||||||||||
Market-based award multipliers | The following table sets forth information regarding the market-based multipliers for the 2013 and 2012 grant years for these awards for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||||||
Grant Year | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Multiplier - initial | 100 | % | 100 | % | |||||||||||||||||||||
Change in multiplier - 2012 | - | 29 | % | ||||||||||||||||||||||
Change in multiplier - 2013 | 6 | % | 21 | % | |||||||||||||||||||||
Change in multiplier - 2014 | 23 | % | - | ||||||||||||||||||||||
Multiplier - reporting date | 129 | % | 150 | % | |||||||||||||||||||||
Restricted share activity | The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | ||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Shares | Weighted Average Grant Date Fair Value | Restricted Shares | Weighted Average Grant Date Fair Value | Restricted Shares | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | - | $ | - | 73 | $ | 36.5 | 146 | $ | 36.5 | ||||||||||||||||
Granted | 41 | 61.83 | - | - | - | - | |||||||||||||||||||
Vested | - | - | (73 | ) | 36.5 | (73 | ) | 36.5 | |||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Outstanding - end of year | 41 | $ | 61.83 | - | $ | - | 73 | $ | 36.5 | ||||||||||||||||
Share options activity | The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except weighted average exercise prices): | ||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | Options | Weighted Average Exercise Price | ||||||||||||||||||||
Outstanding - beginning of year | 148 | $ | 33.81 | 833 | $ | 33.25 | 1,030 | $ | 31.9 | ||||||||||||||||
Granted | - | - | - | - | - | - | |||||||||||||||||||
Exercised | (12 | ) | 33.23 | (685 | ) | 33.13 | (170 | ) | 26.67 | ||||||||||||||||
Forfeited | - | - | - | - | (27 | ) | 23.47 | ||||||||||||||||||
Outstanding - end of year | 136 | 33.86 | 148 | 33.81 | 833 | 33.25 | |||||||||||||||||||
Options exercisable at year end | 136 | $ | 33.86 | 148 | $ | 33.81 | 833 | $ | 33.25 | ||||||||||||||||
Intrinsic and fair values of share options exercised and vested | The following table presents the intrinsic and fair values of the options exercised and vested during the years ended December 31, 2014, 2013 and 2012 ($ in thousands): | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
Intrinsic value of options exercised (1) | $ | 384 | $ | 15,922 | $ | 2,511 | |||||||||||||||||||
Fair value of options exercised (2) | 112 | 5,948 | 1,331 | ||||||||||||||||||||||
Fair value of options vested (2) | $ | - | $ | - | $ | 488 | |||||||||||||||||||
(1) Represents the difference between the market value and exercise price on the date of exercise. | |||||||||||||||||||||||||
(2) Based on the Black-Scholes option pricing model. | |||||||||||||||||||||||||
Restricted Share Units [Member] | Performance Based Awards [Member] | Equity Award [Member] | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Restricted share units activity | Restricted share units under our executive incentive plan that are settled in common shares are classified as equity awards. The following table sets forth information regarding these awards for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | ||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 32 | $ | 39.79 | 43 | $ | 36.13 | 19 | $ | 28.65 | ||||||||||||||||
Granted | - | - | 6 | 51.17 | 31 | 35.95 | |||||||||||||||||||
Vested | (13 | ) | 36.65 | (18 | ) | 36.3 | (20 | ) | 28.65 | ||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Performance adjustment | (1 | ) | 45.44 | 1 | 44 | 13 | 35.87 | ||||||||||||||||||
Outstanding - end of year | 18 | $ | 41.42 | 32 | $ | 39.79 | 43 | $ | 36.13 | ||||||||||||||||
Restricted Share Units [Member] | Performance Based Awards [Member] | Liability Award [Member] | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Restricted share units activity | Restricted share units under our executive incentive plan that are settled in cash are classified as liability awards. The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | ||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 220 | $ | 42.27 | 125 | $ | 35.95 | - | $ | - | ||||||||||||||||
Granted | 81 | 56.95 | 65 | 51.6 | 83 | 35.95 | |||||||||||||||||||
Vested | (12 | ) | 43.67 | - | - | - | - | ||||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Performance adjustment | (34 | ) | 52.04 | 30 | 48.3 | 42 | 35.95 | ||||||||||||||||||
Outstanding - end of year | 255 | $ | 45.6 | 220 | $ | 42.27 | 125 | $ | 35.95 | ||||||||||||||||
Restricted Share Units [Member] | Service Based Awards [Member] | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Restricted share units activity | The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | ||||||||||||||||||||||||
As of and for the Years Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 235 | $ | 42.96 | 263 | $ | 37.36 | 280 | $ | 37.17 | ||||||||||||||||
Granted | 76 | 56.25 | 82 | 51.6 | 128 | 36.02 | |||||||||||||||||||
Vested | (100 | ) | 42.28 | (110 | ) | 35.96 | (126 | ) | 35.46 | ||||||||||||||||
Forfeited | - | - | - | - | (19 | ) | 38.09 | ||||||||||||||||||
Outstanding - end of year | 211 | $ | 48.09 | 235 | $ | 42.96 | 263 | $ | 37.36 | ||||||||||||||||
Restricted Share Units [Member] | Market Based Awards [Member] | |||||||||||||||||||||||||
Share Incentive Compensation and Defined Contribution Retirement Plans [Abstract] | |||||||||||||||||||||||||
Restricted share units activity | The following table sets forth information regarding these awards as of and for the years ended December 31, 2014, 2013 and 2012 (amounts in thousands, except per share weighted average grant date fair value): | ||||||||||||||||||||||||
As of and for the Year Ended | |||||||||||||||||||||||||
31-Dec-14 | 31-Dec-13 | 31-Dec-12 | |||||||||||||||||||||||
Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | Restricted Share Units | Weighted Average Grant Date Fair Value | ||||||||||||||||||||
Outstanding - beginning of year | 319 | $ | 45.64 | 223 | $ | 41.93 | - | $- | |||||||||||||||||
Granted | - | - | 57 | 61.58 | 173 | 41.93 | |||||||||||||||||||
Vested | (134 | ) | 40.43 | - | - | - | - | ||||||||||||||||||
Forfeited | - | - | - | - | - | - | |||||||||||||||||||
Market adjustment | 13 | 61.58 | 39 | 44.12 | 50 | 41.93 | |||||||||||||||||||
Outstanding - end of year | 198 | $ | 50.22 | 319 | $ | 45.64 | 223 | $41.93 |
Earnings_Loss_Per_Common_Share1
Earnings (Loss) Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings (Loss) Per Common Share [Abstract] | |||||||||||||
Reconciliation of basic and diluted earnings or loss per common share | The following is a reconciliation of the basic and diluted earnings per common share computations for the years ended December 31, 2014, 2013 and 2012 ($ and amounts in thousands, except per share data): | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Earnings | |||||||||||||
Basic and Diluted | |||||||||||||
Net income attributable to common shareholders | $ | 164,768 | $ | 223,278 | $ | 327,228 | |||||||
Portion allocated to participating common shareholders (1) | (107 | ) | (293 | ) | (1,076 | ) | |||||||
Net income allocated to common shareholders | $ | 164,661 | $ | 222,985 | $ | 326,152 | |||||||
Common Shares | |||||||||||||
Basic | |||||||||||||
Weighted average common shares outstanding | 26,207 | 29,909 | 33,714 | ||||||||||
Diluted | |||||||||||||
Weighted average common shares outstanding | 26,207 | 29,909 | 33,714 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Common share options | 54 | 150 | 171 | ||||||||||
Restricted share units | 263 | 275 | 96 | ||||||||||
Adjusted weighted average common shares outstanding | 26,524 | 30,334 | 33,981 | ||||||||||
Earnings Per Common Share | |||||||||||||
Basic earnings per common share | $ | 6.28 | $ | 7.46 | $ | 9.67 | |||||||
Diluted earnings per common share | $ | 6.21 | $ | 7.35 | $ | 9.6 | |||||||
(1) Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities. |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Commitments and Contingencies [Abstract] | |||||
Future minimum annual operating lease commitments | The following table presents our future minimum annual lease commitments under various non-cancelable operating leases for our facilities ($ in thousands): | ||||
Years Ending December 31, | |||||
2015 | $ | 2,589 | |||
2016 | 2,452 | ||||
2017 | 2,455 | ||||
2018 | 2,421 | ||||
2019 | 2,423 | ||||
Thereafter | 8,916 | ||||
Total | $ | 21,256 |
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||
Quarterly financial data | The following quarterly financial information for each of the three months ended March 31, June 30, September 30 and December 31, 2014 and 2013 is unaudited. However, in the opinion of management, all necessary adjustments have been made (consisting of normal recurring adjustments) to present fairly the results of operations for such periods ($ and amounts in thousands, except per share data): | |||||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||||
2014 | 2014 | 2014 | 2014 | |||||||||||||
Net premiums earned | $ | 126,075 | $ | 129,463 | $ | 124,825 | $ | 126,273 | ||||||||
Net investment income | 16,561 | 17,523 | 17,645 | 17,692 | ||||||||||||
Net realized gains (losses) on investments | 764 | 3,109 | (596 | ) | (515 | ) | ||||||||||
Net losses and LAE | 39,849 | 66,178 | 50,865 | 26,509 | ||||||||||||
Net acquisition expenses | 30,413 | 28,042 | 27,848 | 27,501 | ||||||||||||
Operating expenses | 24,985 | 18,607 | 21,434 | 18,283 | ||||||||||||
Net income | $ | 35,728 | $ | 29,125 | $ | 36,180 | $ | 63,735 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.44 | $ | 1.13 | $ | 1.36 | $ | 2.3 | ||||||||
Diluted | $ | 1.42 | $ | 1.12 | $ | 1.34 | $ | 2.27 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 24,793 | 25,731 | 26,577 | 27,765 | ||||||||||||
Diluted | 25,090 | 26,002 | 26,928 | 28,109 | ||||||||||||
Three Months Ended | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | |||||||||||||
2013 | 2013 | 2013 | 2013 | |||||||||||||
Net premiums earned | $ | 148,267 | $ | 135,360 | $ | 142,933 | $ | 126,853 | ||||||||
Net investment income | 17,936 | 17,758 | 17,808 | 18,544 | ||||||||||||
Net realized gains (losses) on investments | (778 | ) | (306 | ) | 11,686 | 13,318 | ||||||||||
Net losses and LAE | 46,639 | 44,142 | 62,667 | 13,998 | ||||||||||||
Net acquisition expenses | 32,560 | 30,675 | 30,313 | 30,219 | ||||||||||||
Operating expenses | 23,019 | 20,672 | 19,718 | 19,305 | ||||||||||||
Net income | $ | 48,623 | $ | 38,285 | $ | 49,854 | $ | 86,516 | ||||||||
Earnings per common share: | ||||||||||||||||
Basic | $ | 1.73 | $ | 1.34 | $ | 1.63 | $ | 2.67 | ||||||||
Diluted | $ | 1.71 | $ | 1.32 | $ | 1.61 | $ | 2.63 | ||||||||
Average common shares outstanding: | ||||||||||||||||
Basic | 28,097 | 28,655 | 30,571 | 32,373 | ||||||||||||
Diluted | 28,492 | 29,065 | 30,970 | 32,838 |
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ||||||||||||||||||||
Condensed consolidating balance sheets | Condensed Consolidating Balance Sheet | |||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Total investments | $ | - | $ | 45,085 | $ | 1,827,969 | $ | - | $ | 1,873,054 | ||||||||||
Investment in subsidiaries | 1,627,917 | 595,769 | 638,426 | (2,862,112 | ) | - | ||||||||||||||
Cash and cash equivalents | 113,773 | 248,130 | 1,073,081 | - | 1,434,984 | |||||||||||||||
Reinsurance assets | - | - | 247,495 | - | 247,495 | |||||||||||||||
Inter-company receivables | 11,246 | - | 435 | (11,681 | ) | - | ||||||||||||||
Other assets | 2,253 | 1,158 | 128,145 | - | 131,556 | |||||||||||||||
Total assets | $ | 1,755,189 | $ | 890,142 | $ | 3,915,551 | $ | (2,873,793 | ) | $ | 3,687,089 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Reinsurance liabilities | $ | - | $ | - | $ | 1,597,304 | $ | - | $ | 1,597,304 | ||||||||||
Debt obligations | - | 250,000 | - | - | 250,000 | |||||||||||||||
Inter-company payables | - | 31 | 11,650 | (11,681 | ) | - | ||||||||||||||
Other liabilities | 17,164 | 1,685 | 82,911 | - | 101,760 | |||||||||||||||
Total liabilities | $ | 17,164 | $ | 251,716 | $ | 1,691,865 | $ | (11,681 | ) | $ | 1,949,064 | |||||||||
Shareholders’ Equity | ||||||||||||||||||||
Common shares | $ | 248 | $ | - | $ | 8,000 | $ | (8,000 | ) | $ | 248 | |||||||||
Additional paid-in capital | 2,415 | 216,038 | 2,025,646 | (2,241,684 | ) | 2,415 | ||||||||||||||
Accumulated other comprehensive income | 92,689 | 23,398 | 116,085 | (139,483 | ) | 92,689 | ||||||||||||||
Retained earnings | 1,642,673 | 398,990 | 73,955 | (472,945 | ) | 1,642,673 | ||||||||||||||
Total shareholders’ equity | $ | 1,738,025 | $ | 638,426 | $ | 2,223,686 | $ | (2,862,112 | ) | $ | 1,738,025 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,755,189 | $ | 890,142 | $ | 3,915,551 | $ | (2,873,793 | ) | $ | 3,687,089 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Balance Sheet | ||||||||||||||||||||
31-Dec-13 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Total investments | $ | - | $ | 114 | $ | 2,027,830 | $ | - | $ | 2,027,944 | ||||||||||
Investment in subsidiaries | 1,658,425 | 610,679 | 591,175 | (2,860,279 | ) | - | ||||||||||||||
Cash and cash equivalents | 88,402 | 230,818 | 1,145,198 | - | 1,464,418 | |||||||||||||||
Reinsurance assets | - | - | 290,887 | - | 290,887 | |||||||||||||||
Inter-company receivables | 9,739 | - | 351 | (10,090 | ) | - | ||||||||||||||
Other assets | 2,135 | 1,290 | 137,211 | - | 140,636 | |||||||||||||||
Total assets | $ | 1,758,701 | $ | 842,901 | $ | 4,192,652 | $ | (2,870,369 | ) | $ | 3,923,885 | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||||
Liabilities | ||||||||||||||||||||
Reinsurance liabilities | $ | - | $ | - | $ | 1,876,456 | $ | - | $ | 1,876,456 | ||||||||||
Debt obligations | - | 250,000 | - | - | 250,000 | |||||||||||||||
Inter-company payables | - | 39 | 10,051 | (10,090 | ) | - | ||||||||||||||
Other liabilities | 11,994 | 1,687 | 37,041 | - | 50,722 | |||||||||||||||
Total liabilities | $ | 11,994 | $ | 251,726 | $ | 1,923,548 | $ | (10,090 | ) | $ | 2,177,178 | |||||||||
Shareholders’ Equity | ||||||||||||||||||||
Common shares | $ | 281 | $ | - | $ | 8,000 | $ | (8,000 | ) | $ | 281 | |||||||||
Additional paid-in capital | 10,711 | 215,420 | 2,024,409 | (2,239,829 | ) | 10,711 | ||||||||||||||
Accumulated other comprehensive income | 48,084 | 18,382 | 66,463 | (84,845 | ) | 48,084 | ||||||||||||||
Retained earnings | 1,687,631 | 357,373 | 170,232 | (527,605 | ) | 1,687,631 | ||||||||||||||
Total shareholders’ equity | $ | 1,746,707 | $ | 591,175 | $ | 2,269,104 | $ | (2,860,279 | ) | $ | 1,746,707 | |||||||||
Total liabilities and shareholders’ equity | $ | 1,758,701 | $ | 842,901 | $ | 4,192,652 | $ | (2,870,369 | ) | $ | 3,923,885 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed consolidating statement of operations | Condensed Consolidating Statement of Operations | |||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 506,636 | $ | - | $ | 506,636 | ||||||||||
Net investment income (expense) | 34 | (186 | ) | 69,573 | - | 69,421 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 2,762 | - | 2,762 | |||||||||||||||
Net impairment losses on investments | - | - | (840 | ) | - | (840 | ) | |||||||||||||
Other income (expense) | 5,672 | - | (2,492 | ) | - | 3,180 | ||||||||||||||
Total revenue | 5,706 | (186 | ) | 575,639 | - | 581,159 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 183,401 | - | 183,401 | |||||||||||||||
Net acquisition expenses | - | - | 113,804 | - | 113,804 | |||||||||||||||
Operating expenses | 29,206 | 192 | 53,911 | - | 83,309 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | (512 | ) | - | (512 | ) | |||||||||||||
Interest expense | - | 19,155 | - | - | 19,155 | |||||||||||||||
Total expenses | 29,206 | 19,347 | 350,604 | - | 399,157 | |||||||||||||||
Income (loss) before income taxes | (23,500 | ) | (19,533 | ) | 225,035 | - | 182,002 | |||||||||||||
Income tax expense (benefit) | - | (6,696 | ) | 23,930 | - | 17,234 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (23,500 | ) | (12,837 | ) | 201,105 | - | 164,768 | |||||||||||||
Equity in earnings of subsidiaries | 188,268 | 54,455 | 41,618 | (284,341 | ) | - | ||||||||||||||
Net income | $ | 164,768 | $ | 41,618 | $ | 242,723 | $ | (284,341 | ) | $ | 164,768 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 553,413 | $ | - | $ | 553,413 | ||||||||||
Net investment income (expense) | 24 | (85 | ) | 72,107 | - | 72,046 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 23,920 | - | 23,920 | |||||||||||||||
Net impairment losses on investments | - | - | (2,033 | ) | - | (2,033 | ) | |||||||||||||
Other income (expense) | 6,737 | 4 | (3,264 | ) | - | 3,477 | ||||||||||||||
Total revenue | 6,761 | (81 | ) | 644,143 | - | 650,823 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 167,446 | - | 167,446 | |||||||||||||||
Net acquisition expenses | - | - | 123,767 | - | 123,767 | |||||||||||||||
Operating expenses | 26,313 | 145 | 56,256 | - | 82,714 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | (234 | ) | - | (234 | ) | |||||||||||||
Interest expense | - | 19,125 | - | - | 19,125 | |||||||||||||||
Total expenses | 26,313 | 19,270 | 347,235 | - | 392,818 | |||||||||||||||
Income (loss) before income taxes | (19,552 | ) | (19,351 | ) | 296,908 | - | 258,005 | |||||||||||||
Income tax expense (benefit) | - | (6,307 | ) | 41,034 | - | 34,727 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (19,552 | ) | (13,044 | ) | 255,874 | - | 223,278 | |||||||||||||
Equity in earnings of subsidiaries | 242,830 | 85,185 | 72,141 | (400,156 | ) | - | ||||||||||||||
Net income | $ | 223,278 | $ | 72,141 | $ | 328,015 | $ | (400,156 | ) | $ | 223,278 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Operations | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Revenue: | ||||||||||||||||||||
Net premiums earned | $ | - | $ | - | $ | 566,496 | $ | - | $ | 566,496 | ||||||||||
Net investment income (expense) | 10 | (24 | ) | 99,961 | - | 99,947 | ||||||||||||||
Net realized gains (losses) on investments | - | - | 88,754 | - | 88,754 | |||||||||||||||
Net impairment losses on investments | - | - | (3,031 | ) | - | (3,031 | ) | |||||||||||||
Other income (expense) | 5,481 | 3 | (5,723 | ) | - | (239 | ) | |||||||||||||
Total revenue | 5,491 | (21 | ) | 746,457 | - | 751,927 | ||||||||||||||
Expenses: | ||||||||||||||||||||
Net losses and loss adjustment expenses | - | - | 183,660 | - | 183,660 | |||||||||||||||
Net acquisition expenses | - | - | 115,437 | - | 115,437 | |||||||||||||||
Operating expenses | 24,733 | 233 | 55,487 | - | 80,453 | |||||||||||||||
Net foreign currency exchange losses (gains) | - | - | 1,055 | - | 1,055 | |||||||||||||||
Interest expense | - | 19,098 | - | - | 19,098 | |||||||||||||||
Total expenses | 24,733 | 19,331 | 355,639 | - | 399,703 | |||||||||||||||
Income (loss) before income taxes | (19,242 | ) | (19,352 | ) | 390,818 | - | 352,224 | |||||||||||||
Income tax expense (benefit) | - | (6,477 | ) | 31,473 | - | 24,996 | ||||||||||||||
Income (loss) before equity in earnings of subsidiaries | (19,242 | ) | (12,875 | ) | 359,345 | - | 327,228 | |||||||||||||
Equity in earnings of subsidiaries | 346,470 | 68,165 | 55,290 | (469,925 | ) | - | ||||||||||||||
Net income | $ | 327,228 | $ | 55,290 | $ | 414,635 | $ | (469,925 | ) | $ | 327,228 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed consolidating statement of comprehensive income (loss) | Condensed Consolidating Statement of Comprehensive Income | |||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 164,768 | $ | 41,618 | $ | 242,723 | $ | (284,341 | ) | $ | 164,768 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | (991 | ) | - | (991 | ) | |||||||||||||
Change in net unrealized gains and losses on all other securities | - | (2 | ) | 52,830 | - | 52,828 | ||||||||||||||
Total change in net unrealized gains and losses | - | (2 | ) | 51,839 | - | 51,837 | ||||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (5,372 | ) | - | (5,372 | ) | |||||||||||||
Net impairment losses on investments | - | - | 840 | - | 840 | |||||||||||||||
Total reclassifications to net income | - | - | (4,532 | ) | - | (4,532 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (2 | ) | 47,307 | - | 47,305 | ||||||||||||||
Income tax benefit (expense) | - | 1 | (2,701 | ) | - | (2,700 | ) | |||||||||||||
Other comprehensive income (loss) | - | (1 | ) | 44,606 | - | 44,605 | ||||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 44,605 | 5,017 | 5,016 | (54,638 | ) | - | ||||||||||||||
Comprehensive income | $ | 209,373 | $ | 46,634 | $ | 292,345 | $ | (338,979 | ) | $ | 209,373 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 223,278 | $ | 72,141 | $ | 328,015 | $ | (400,156 | ) | $ | 223,278 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | (631 | ) | - | (631 | ) | |||||||||||||
Change in net unrealized gains and losses on all other securities | - | (2 | ) | (76,150 | ) | - | (76,152 | ) | ||||||||||||
Total change in net unrealized gains and losses | - | (2 | ) | (76,781 | ) | - | (76,783 | ) | ||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (27,243 | ) | - | (27,243 | ) | |||||||||||||
Net impairment losses on investments | - | - | 2,033 | - | 2,033 | |||||||||||||||
Total reclassifications to net income | - | - | (25,210 | ) | - | (25,210 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (2 | ) | (101,991 | ) | - | (101,993 | ) | ||||||||||||
Income tax benefit (expense) | - | - | 12,387 | - | 12,387 | |||||||||||||||
Other comprehensive income (loss) | - | (2 | ) | (89,604 | ) | - | (89,606 | ) | ||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | (89,606 | ) | (23,002 | ) | (23,004 | ) | 135,612 | - | ||||||||||||
Comprehensive income | $ | 133,672 | $ | 49,137 | $ | 215,407 | $ | (264,544 | ) | $ | 133,672 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed Consolidating Statement of Comprehensive Income | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries(1) | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net income | $ | 327,228 | $ | 55,290 | $ | 414,635 | $ | (469,925 | ) | $ | 327,228 | |||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | - | - | 211 | - | 211 | |||||||||||||||
Change in net unrealized gains and losses on all other securities | - | (6 | ) | 77,658 | - | 77,652 | ||||||||||||||
Total change in net unrealized gains and losses | - | (6 | ) | 77,869 | - | 77,863 | ||||||||||||||
Reclassifications to net income on available-for-sale securities: | ||||||||||||||||||||
Net realized gains on investments | - | - | (89,780 | ) | - | (89,780 | ) | |||||||||||||
Net impairment losses on investments | - | - | 3,031 | - | 3,031 | |||||||||||||||
Total reclassifications to net income | - | - | (86,749 | ) | - | (86,749 | ) | |||||||||||||
Other comprehensive income (loss) before income taxes | - | (6 | ) | (8,880 | ) | - | (8,886 | ) | ||||||||||||
Income tax benefit (expense) | - | 2 | (61 | ) | - | (59 | ) | |||||||||||||
Other comprehensive income (loss) | - | (4 | ) | (8,941 | ) | - | (8,945 | ) | ||||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | (8,945 | ) | 113 | 109 | 8,723 | - | ||||||||||||||
Comprehensive income | $ | 318,283 | $ | 55,399 | $ | 405,803 | $ | (461,202 | ) | $ | 318,283 | |||||||||
(1) Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. | ||||||||||||||||||||
Condensed consolidating statement of cash flows | Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
For the Year Ended December 31, 2014 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (15,010 | ) | $ | (12,703 | ) | $ | 43,559 | $ | (619 | ) | $ | 15,227 | |||||||
Investing Activities: | ||||||||||||||||||||
Proceeds from sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 88,629 | - | 88,629 | |||||||||||||||
Short-term investments | - | - | 6,613 | - | 6,613 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 41 | 130,465 | - | 130,506 | |||||||||||||||
Short-term investments | - | - | 126,795 | - | 126,795 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | (45,026 | ) | (55,000 | ) | - | (100,026 | ) | ||||||||||||
Short-term investments | - | - | (66,036 | ) | - | (66,036 | ) | |||||||||||||
Dividends from subsidiaries | 264,000 | 75,000 | - | (339,000 | ) | - | ||||||||||||||
Net cash provided by (used in) investing activities | 264,000 | 30,015 | 231,466 | (339,000 | ) | 186,481 | ||||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (8,329 | ) | - | (339,000 | ) | 339,000 | (8,329 | ) | ||||||||||||
Repurchase of common shares | (215,684 | ) | - | - | - | (215,684 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 394 | - | - | 619 | 1,013 | |||||||||||||||
Net cash provided by (used in) financing activities | (223,619 | ) | - | (339,000 | ) | 339,619 | (223,000 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (8,142 | ) | - | (8,142 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 25,371 | 17,312 | (72,117 | ) | - | (29,434 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 88,402 | 230,818 | 1,145,198 | - | 1,464,418 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 113,773 | $ | 248,130 | $ | 1,073,081 | $ | - | $ | 1,434,984 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Year Ended December 31, 2013 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (9,510 | ) | $ | (11,368 | ) | $ | (34,001 | ) | $ | (1,683 | ) | $ | (56,562 | ) | |||||
Investing Activities: | ||||||||||||||||||||
Proceeds from sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 203,571 | - | 203,571 | |||||||||||||||
Short-term investments | - | - | 11,857 | - | 11,857 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 64 | 202,072 | - | 202,136 | |||||||||||||||
Short-term investments | - | - | 259,076 | - | 259,076 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | (406,078 | ) | - | (406,078 | ) | |||||||||||||
Short-term investments | - | - | (165,136 | ) | - | (165,136 | ) | |||||||||||||
Dividends from subsidiaries | 318,300 | 90,000 | - | (408,300 | ) | - | ||||||||||||||
Acquisitions of furniture, equipment and other assets | (957 | ) | - | (5,933 | ) | - | (6,890 | ) | ||||||||||||
Net cash provided by (used in) investing activities | 317,343 | - | 90,064 | - | 99,429 | - | (408,300 | ) | - | 98,536 | ||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (9,434 | ) | - | (408,300 | ) | 408,300 | (9,434 | ) | ||||||||||||
Repurchase of common shares | (303,294 | ) | - | - | - | (303,294 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 22,693 | - | - | 1,683 | 24,376 | |||||||||||||||
Net cash provided by (used in) financing activities | (290,035 | ) | - | - | - | (408,300 | ) | - | 409,983 | - | (288,352 | ) | ||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (9,599 | ) | - | (9,599 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 17,798 | 78,696 | (352,471 | ) | - | (255,977 | ) | |||||||||||||
Cash and cash equivalents at beginning of year | 70,604 | 152,122 | 1,497,669 | - | 1,720,395 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 88,402 | $ | 230,818 | $ | 1,145,198 | $ | - | $ | 1,464,418 | ||||||||||
Condensed Consolidating Statement of Cash Flows | ||||||||||||||||||||
For the Year Ended December 31, 2012 | ||||||||||||||||||||
Platinum Holdings | Platinum Finance | Non-guarantor Subsidiaries | Consolidating Adjustments | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (10,275 | ) | $ | (9,123 | ) | $ | (145,939 | ) | $ | - | $ | (165,337 | ) | ||||||
Investing Activities: | ||||||||||||||||||||
Proceeds from the sales of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | 747,755 | - | 747,755 | |||||||||||||||
Short-term investments | - | - | 49,447 | - | 49,447 | |||||||||||||||
Proceeds from the maturities or paydowns of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | 85 | 280,037 | - | 280,122 | |||||||||||||||
Short-term investments | - | - | 707,756 | - | 707,756 | |||||||||||||||
Acquisitions of: | ||||||||||||||||||||
Fixed maturity available-for-sale securities | - | - | (233,923 | ) | - | (233,923 | ) | |||||||||||||
Short-term investments | - | - | (331,757 | ) | - | (331,757 | ) | |||||||||||||
Dividends from subsidiaries | 155,000 | 52,900 | - | (207,900 | ) | - | ||||||||||||||
Net cash provided by (used in) investing activities | 155,000 | 52,985 | 1,219,315 | (207,900 | ) | 1,219,400 | ||||||||||||||
Financing Activities: | ||||||||||||||||||||
Dividends paid to common shareholders | (10,747 | ) | - | (207,900 | ) | 207,900 | (10,747 | ) | ||||||||||||
Repurchase of common shares | (115,702 | ) | - | - | - | (115,702 | ) | |||||||||||||
Proceeds from share-based compensation, including income tax benefits | 4,537 | - | - | - | 4,537 | |||||||||||||||
Net cash provided by (used in) financing activities | (121,912 | ) | - | (207,900 | ) | 207,900 | (121,912 | ) | ||||||||||||
Effect of foreign currency exchange rate changes on cash and cash equivalents | - | - | (4,266 | ) | - | (4,266 | ) | |||||||||||||
Net increase (decrease) in cash and cash equivalents | 22,813 | 43,862 | 861,210 | - | 927,885 | |||||||||||||||
Cash and cash equivalents at beginning of year | 47,791 | 108,260 | 636,459 | - | 792,510 | |||||||||||||||
Cash and cash equivalents at end of year | $ | 70,604 | $ | 152,122 | $ | 1,497,669 | $ | - | $ | 1,720,395 |
Basis_of_Presentation_and_Sign2
Basis of Presentation and Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 10, 2015 | Nov. 23, 2014 |
Merger Agreement [Abstract] | |||||
Common shares, par value (in dollars per share) | $0.01 | $0.01 | |||
Deferred Acquisition Costs [Abstract] | |||||
Deferred acquisition cost amortization | $86.40 | $92 | $86.80 | ||
Restricted Share Units [Member] | Performance Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance and vesting period | 3 years | ||||
Restricted Share Units [Member] | Service Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance and vesting period | 4 years | ||||
Restricted Share Units [Member] | Market Based Awards [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Performance and vesting period | 3 years | ||||
Subsequent Event [Member] | Special Dividend Declared [Member] | |||||
Dividends [Abstract] | |||||
Dividend, date declared | 10-Feb-15 | ||||
Dividend declared (in dollars per share) | $10 | ||||
RenaissanceRe Holdings Ltd. [Member] | Platinum Underwriters Holdings, Ltd. [Member] | |||||
Merger Agreement [Abstract] | |||||
Cash consideration per share under first condition (in dollars per share) | $66 | ||||
Stock consideration under second condition (in shares) | 0.6504 | ||||
Common shares, par value (in dollars per share) | $1 | ||||
Stock consideration under third condition (in shares) | 0.296 | ||||
Cash consideration per share under third condition (in dollars per share) | $35.96 | ||||
Expected future expense associated with the Merger | $22 |
Investments_Details
Investments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | $1,677,198 | $1,799,888 | ||
Gross unrealized gains | 109,008 | 69,756 | ||
Gross unrealized losses | 3,721 | 11,774 | ||
Fair value | 1,782,485 | 1,857,870 | ||
Non-credit portion of OTTI | 545 | [1] | 636 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 61,892 | 432,208 | ||
Twelve months or more | 67,634 | 16,830 | ||
Total unrealized losses | 129,526 | 449,038 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 1,565 | 10,363 | ||
Twelve months or more | 2,156 | 1,411 | ||
Total unrealized losses | 3,721 | 11,774 | ||
US Government [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 49,386 | 4,561 | ||
Gross unrealized gains | 99 | 204 | ||
Gross unrealized losses | 0 | 0 | ||
Fair value | 49,485 | 4,765 | ||
Non-credit portion of OTTI | 0 | [1] | 0 | [1] |
US Government Agencies [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 87,533 | 51,847 | ||
Gross unrealized gains | 1,931 | 0 | ||
Gross unrealized losses | 137 | 725 | ||
Fair value | 89,327 | 51,122 | ||
Non-credit portion of OTTI | 0 | [1] | 0 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 14,472 | 41,122 | ||
Twelve months or more | 0 | 0 | ||
Total unrealized losses | 14,472 | 41,122 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 137 | 725 | ||
Twelve months or more | 0 | 0 | ||
Total unrealized losses | 137 | 725 | ||
Municipal Bonds [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 1,116,672 | 1,220,869 | ||
Gross unrealized gains | 90,392 | 54,333 | ||
Gross unrealized losses | 715 | 5,955 | ||
Fair value | 1,206,349 | 1,269,247 | ||
Non-credit portion of OTTI | 0 | [1] | 0 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 0 | 247,873 | ||
Twelve months or more | 42,247 | 0 | ||
Total unrealized losses | 42,247 | 247,873 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 0 | 5,955 | ||
Twelve months or more | 715 | 0 | ||
Total unrealized losses | 715 | 5,955 | ||
Non-US Governments [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 24,998 | 39,973 | ||
Gross unrealized gains | 84 | 541 | ||
Gross unrealized losses | 0 | 0 | ||
Fair value | 25,082 | 40,514 | ||
Non-credit portion of OTTI | 0 | [1] | 0 | [1] |
Corporate Bonds [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 204,210 | 224,095 | ||
Gross unrealized gains | 8,121 | 6,704 | ||
Gross unrealized losses | 2,242 | 3,564 | ||
Fair value | 210,089 | 227,235 | ||
Non-credit portion of OTTI | 458 | [1] | 0 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 32,017 | 90,789 | ||
Twelve months or more | 14,121 | 920 | ||
Total unrealized losses | 46,138 | 91,709 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 1,296 | 3,486 | ||
Twelve months or more | 946 | 78 | ||
Total unrealized losses | 2,242 | 3,564 | ||
Commercial Mortgage-Backed Securities [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 55,747 | 72,641 | ||
Gross unrealized gains | 3,356 | 4,982 | ||
Gross unrealized losses | 223 | 132 | ||
Fair value | 58,880 | 77,491 | ||
Non-credit portion of OTTI | 0 | [1] | 0 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 0 | 2,938 | ||
Twelve months or more | 4,528 | 4,624 | ||
Total unrealized losses | 4,528 | 7,562 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 0 | 1 | ||
Twelve months or more | 223 | 131 | ||
Total unrealized losses | 223 | 132 | ||
Residential Mortgage-Backed Securities [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 122,475 | 169,699 | ||
Gross unrealized gains | 2,217 | 1,335 | ||
Gross unrealized losses | 295 | 1,069 | ||
Fair value | 124,397 | 169,965 | ||
Non-credit portion of OTTI | 87 | [1] | 331 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 1,912 | 35,910 | ||
Twelve months or more | 6,738 | 10,587 | ||
Total unrealized losses | 8,650 | 46,497 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 23 | 172 | ||
Twelve months or more | 272 | 897 | ||
Total unrealized losses | 295 | 1,069 | ||
Asset-Backed Securities [Member] | ||||
Amortized Cost, Gross Unrealized Gains, Losses, FV and OTTI of AFS Securities [Abstract] | ||||
Amortized cost | 16,177 | 16,203 | ||
Gross unrealized gains | 2,808 | 1,657 | ||
Gross unrealized losses | 109 | 329 | ||
Fair value | 18,876 | 17,531 | ||
Non-credit portion of OTTI | 0 | [1] | 305 | [1] |
Continuous Unrealized Loss Position, Fair Value [Abstract] | ||||
Less than twelve months | 13,491 | 13,576 | ||
Twelve months or more | 0 | 699 | ||
Total unrealized losses | 13,491 | 14,275 | ||
Continuous Unrealized Loss Position, Unrealized Loss [ Abstract] | ||||
Less than twelve months | 109 | 24 | ||
Twelve months or more | 0 | 305 | ||
Total unrealized losses | $109 | $329 | ||
[1] | The non-credit portion of OTTI represents the amount of unrealized losses on impaired securities that were not recorded in the consolidated statements of operations as of the reporting date. These unrealized losses are included in gross unrealized losses as of December 31, 2014 and 2013. |
Investments_Trading_Securities
Investments, Trading Securities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fixed Maturity Trading Securities [Abstract] | ||
Fair value | $90,569 | $103,395 |
Investments_Maturities_of_Avai
Investments, Maturities of Available-for-sale and Trading Securities (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Amortized Cost [Abstract] | |
Due in one year or less | $170,160 |
Due from one to five years | 416,440 |
Due from five to ten years | 598,084 |
Due in ten or more years | 385,858 |
Mortgage-backed and asset-backed securities | 194,399 |
Total | 1,764,941 |
Fair Value [Abstract] | |
Due in one year or less | 172,017 |
Due from one to five years | 434,277 |
Due from five to ten years | 631,367 |
Due in ten or more years | 433,240 |
Mortgage-backed and asset-backed securities | 202,153 |
Total | $1,873,054 |
Investments_Short_Term_Investm
Investments, Short Term Investments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule Of Short Term Investments [Line Items] | |||
Short-term investment fair value | $0 | $66,679,000 | |
Short-Term Investments [Abstract] | |||
Short-term investments trading, realized gain (loss) | 0 | 0 | 0 |
Acquisition of non-USD short-term investments | 66,000,000 | 165,100,000 | 269,300,000 |
Proceeds from sales of non-USD short-term investments | 6,600,000 | 11,900,000 | 49,400,000 |
Proceeds from maturities of non-USD short-term investments | $126,800,000 | $209,900,000 | $286,800,000 |
Investments_Restricted_Details
Investments, Restricted (Details) (USD $) | Dec. 31, 2014 |
In Millions, unless otherwise specified | |
Restricted Investments [Abstract] | |
Carrying value of restricted investments on deposit with regulatory agency | $5.70 |
Carrying value of restricted investments held in trust as collateral | 55.9 |
Carrying value of restricted cash and cash equivalents held in trust as collateral | $13 |
Investments_Other_Than_Tempora
Investments, Other Than Temporary Impairments (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net Impairment Losses on Investments [Abstract] | |||
Net impairment losses on investments | $840,000 | $2,033,000 | $3,031,000 |
Largest unrealized loss on single non-agency residential mortgage-backed securities | 100,000 | ||
Amortized cost of single non-agency residential mortgage-backed security with largest unrealized loss | 4,000,000 | ||
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | |||
Balance, beginning of period | 31,603,000 | 40,219,000 | 61,841,000 |
Credit losses on securities not previously impaired | 454,000 | 0 | 42,000 |
Additional credit losses on securities previously impaired | 386,000 | 2,033,000 | 2,989,000 |
Reduction for paydowns and securities sold | -5,372,000 | -10,012,000 | -23,766,000 |
Reduction for increases in cash flows expected to be collected | -1,168,000 | -637,000 | -887,000 |
Balance, end of period | 25,903,000 | 31,603,000 | 40,219,000 |
Cumulative Credit Losses [Abstract] | |||
Number of days without payment for mortgage to be considered past due | 90 | ||
Cumulative credit losses recorded on non-agency residential mortgage-backed securities and sub-prime asset-backed securities | 25,500,000 | ||
Number of non-agency RMBS and sub-prime ABS securities comprising cumulative credit losses | 15 | ||
Percentage of mortgages backing non-agency RMBS and sub-prime ABS securities that were past due | 16.00% | ||
Percentage of non-agency RMBS and sub-prime ABS mortgages included in cumulative losses | 9.40% | ||
Percentage of remaining credit support for non-agency RMBS and sub-prime ABS mortgages which incurred losses | 2.70% | ||
Corporate Bonds [Member] | |||
Net Impairment Losses on Investments [Abstract] | |||
Net impairment losses on investments | -454,000 | 0 | 0 |
Commercial Mortgage-Backed Securities [Member] | |||
Net Impairment Losses on Investments [Abstract] | |||
Net impairment losses on investments | 0 | 0 | -30,000 |
Non-Agency Residential Mortgage-Backed Securities [Member] | |||
Net Impairment Losses on Investments [Abstract] | |||
Net impairment losses on investments | -385,000 | -1,439,000 | -2,896,000 |
Sub-Prime Asset-Backed Securities [Member] | |||
Net Impairment Losses on Investments [Abstract] | |||
Net impairment losses on investments | ($1,000) | ($594,000) | ($105,000) |
Investments_Investment_Income_
Investments, Investment Income and Net Realized Gains Losses (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net Investment Income [Abstract] | |||||||||||
Investment income | $73,081 | $76,064 | $104,274 | ||||||||
Investment expenses | -3,660 | -4,018 | -4,327 | ||||||||
Net investment income (expense) | 16,561 | 17,523 | 17,645 | 17,692 | 17,936 | 17,758 | 17,808 | 18,544 | 69,421 | 72,046 | 99,947 |
Net Realized Gain (Loss) on Investments [Abstract] | |||||||||||
Gross realized gains on the sale of investments | 5,372 | 27,258 | 90,100 | ||||||||
Gross realized losses on the sale of investments | 0 | -15 | -3 | ||||||||
Net realized gains on the sale of investments | 5,372 | 27,243 | 90,097 | ||||||||
Fair value adjustments on trading securities | -2,610 | -3,323 | -1,343 | ||||||||
Net realized gains (losses) on investments | 764 | 3,109 | -596 | -515 | -778 | -306 | 11,686 | 13,318 | 2,762 | 23,920 | 88,754 |
Fixed Maturity Securities [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Investment income | 66,749 | 68,455 | 94,307 | ||||||||
Short-Term Investment And Cash And Cash Equivalents [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Investment income | 2,794 | 4,419 | 7,319 | ||||||||
Funds Held By Ceding Companies [Member] | |||||||||||
Net Investment Income [Abstract] | |||||||||||
Investment income | $3,538 | $3,190 | $2,648 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Reinsurance deposit assets | $82,937,000 | $79,303,000 |
Demand and time deposits | 98,100,000 | 120,700,000 |
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Balance, beginning of period | 82,123,000 | 57,627,000 |
Purchases | 25,000,000 | |
Sales, maturities and paydowns | -3,443,000 | -477,000 |
Total increase (decrease) in fair value included in net income | 3,634,000 | 3,610,000 |
Total net unrealized gains (losses) included in other comprehensive income (loss) | 4,989,000 | 1,282,000 |
Transfers into Level 3 | 12,102,000 | 8,075,000 |
Transfers out of Level 3 | -12,996,000 | -12,994,000 |
Balance, end of period | 86,409,000 | 82,123,000 |
Total increase (decrease) in fair value of the financial assets included in earnings for the period | 3,634,000 | 3,610,000 |
Deposit Assets [Abstract] | ||
Estimated contract period remaining | 834 days | 1193 days |
Credit spread above the risk-free rate | 1.46% | 1.58% |
Net losses and LAE ceded inception-to-date | 0 | 0 |
Debt Obligations [Abstract] | ||
Debt obligations at carrying value | 250,000,000 | 250,000,000 |
Debt obligations at fair value | 278,600,000 | 271,500,000 |
Commercial Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Balance, beginning of period | 0 | 524,000 |
Purchases | 0 | |
Sales, maturities and paydowns | 0 | 0 |
Total increase (decrease) in fair value included in net income | 0 | 0 |
Total net unrealized gains (losses) included in other comprehensive income (loss) | 148,000 | 487,000 |
Transfers into Level 3 | 3,768,000 | 0 |
Transfers out of Level 3 | -3,916,000 | -1,011,000 |
Balance, end of period | 0 | 0 |
Total increase (decrease) in fair value of the financial assets included in earnings for the period | 0 | 0 |
Residential Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Balance, beginning of period | 593,000 | 5,374,000 |
Purchases | 0 | |
Sales, maturities and paydowns | -3,207,000 | -448,000 |
Total increase (decrease) in fair value included in net income | 0 | 0 |
Total net unrealized gains (losses) included in other comprehensive income (loss) | 2,899,000 | 799,000 |
Transfers into Level 3 | 4,704,000 | 4,091,000 |
Transfers out of Level 3 | -4,989,000 | -9,223,000 |
Balance, end of period | 0 | 593,000 |
Total increase (decrease) in fair value of the financial assets included in earnings for the period | 0 | 0 |
Asset-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Balance, beginning of period | 2,227,000 | 1,036,000 |
Purchases | 0 | |
Sales, maturities and paydowns | -236,000 | -29,000 |
Total increase (decrease) in fair value included in net income | 0 | 0 |
Total net unrealized gains (losses) included in other comprehensive income (loss) | 1,942,000 | -4,000 |
Transfers into Level 3 | 3,630,000 | 3,984,000 |
Transfers out of Level 3 | -4,091,000 | -2,760,000 |
Balance, end of period | 3,472,000 | 2,227,000 |
Total increase (decrease) in fair value of the financial assets included in earnings for the period | 0 | 0 |
Reinsurance Deposit Assets [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Abstract] | ||
Balance, beginning of period | 79,303,000 | 50,693,000 |
Purchases | 25,000,000 | |
Sales, maturities and paydowns | 0 | 0 |
Total increase (decrease) in fair value included in net income | 3,634,000 | 3,610,000 |
Total net unrealized gains (losses) included in other comprehensive income (loss) | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Balance, end of period | 82,937,000 | 79,303,000 |
Total increase (decrease) in fair value of the financial assets included in earnings for the period | 3,634,000 | 3,610,000 |
Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,873,054,000 | 2,027,944,000 |
Cash and cash equivalents | 1,434,984,000 | 1,464,418,000 |
Reinsurance deposit assets | 82,937,000 | 79,303,000 |
Total | 3,390,975,000 | 3,571,665,000 |
US Government [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 49,485,000 | 4,765,000 |
US Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 89,327,000 | 51,122,000 |
Municipal Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,206,349,000 | 1,269,247,000 |
Non-US Governments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 115,651,000 | 143,909,000 |
Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 210,089,000 | 227,235,000 |
Commercial Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 58,880,000 | 77,491,000 |
Residential Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 124,397,000 | 169,965,000 |
Asset-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 18,876,000 | 17,531,000 |
Short-term investments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 66,679,000 | |
Level 1 [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 99,373,000 | 68,678,000 |
Cash and cash equivalents | 1,417,431,000 | 1,464,418,000 |
Reinsurance deposit assets | 0 | 0 |
Total | 1,516,804,000 | 1,533,096,000 |
Level 1 [Member] | US Government [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 49,485,000 | 4,765,000 |
Level 1 [Member] | US Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Municipal Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Non-US Governments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 49,888,000 | 54,980,000 |
Level 1 [Member] | Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Commercial Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Asset-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 1 [Member] | Short-term investments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 8,933,000 | |
Level 2 [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,770,209,000 | 1,956,446,000 |
Cash and cash equivalents | 17,553,000 | 0 |
Reinsurance deposit assets | 0 | 0 |
Total | 1,787,762,000 | 1,956,446,000 |
Level 2 [Member] | US Government [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 2 [Member] | US Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 89,327,000 | 51,122,000 |
Level 2 [Member] | Municipal Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 1,206,349,000 | 1,269,247,000 |
Level 2 [Member] | Non-US Governments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 65,763,000 | 88,929,000 |
Level 2 [Member] | Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 210,089,000 | 227,235,000 |
Level 2 [Member] | Commercial Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 58,880,000 | 77,491,000 |
Level 2 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 124,397,000 | 169,372,000 |
Level 2 [Member] | Asset-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 15,404,000 | 15,304,000 |
Level 2 [Member] | Short-term investments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 57,746,000 | |
Level 3 [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,472,000 | 2,820,000 |
Cash and cash equivalents | 0 | 0 |
Reinsurance deposit assets | 82,937,000 | 79,303,000 |
Total | 86,409,000 | 82,123,000 |
Level 3 [Member] | US Government [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | US Government Agencies [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Municipal Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Non-US Governments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Corporate Bonds [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Commercial Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 0 |
Level 3 [Member] | Residential Mortgage-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 0 | 593,000 |
Level 3 [Member] | Asset-Backed Securities [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | 3,472,000 | 2,227,000 |
Level 3 [Member] | Short-term investments [Member] | Fair Value Measured on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments | $0 |
Unpaid_Losses_and_Loss_Adjustm2
Unpaid Losses and Loss Adjustment Expenses (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Liability for Unpaid Losses and Loss Adjustment Expenses [Roll forward] | |||
Net unpaid losses and LAE as of January 1 | $1,670,171,000 | $1,957,685,000 | $2,385,659,000 |
Net incurred losses and LAE - current year | 311,491,000 | 328,136,000 | 395,661,000 |
Net incurred losses and LAE - prior years | -128,090,000 | -160,690,000 | -212,001,000 |
Net incurred losses and LAE | 183,401,000 | 167,446,000 | 183,660,000 |
Net paid losses and LAE - current year | 75,511,000 | 58,958,000 | 95,808,000 |
Net paid losses and LAE - prior years | 326,673,000 | 386,408,000 | 524,423,000 |
Net paid losses and LAE | 402,184,000 | 445,366,000 | 620,231,000 |
Net effects of foreign currency exchange rate changes | -18,500,000 | -9,594,000 | 8,597,000 |
Net unpaid losses and LAE as of December 31 | 1,432,888,000 | 1,670,171,000 | 1,957,685,000 |
Reinsurance recoverable on unpaid losses and LAE | 2,810,000 | 1,194,000 | 3,597,000 |
Gross unpaid losses and LAE as of December 31 | 1,435,698,000 | 1,671,365,000 | 1,961,282,000 |
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | -127,633,000 | -183,293,000 | -235,543,000 |
Increase (decrease) in losses attributable to changes in premium estimates | -457,000 | 22,603,000 | 23,542,000 |
Net incurred losses and LAE - prior years | -128,090,000 | -160,690,000 | -212,001,000 |
Property and Marine [Member] | |||
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | -27,382,000 | -71,269,000 | -45,664,000 |
Property and Marine [Member] | Catastrophe [Member] | |||
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | 14,100,000 | 41,100,000 | 12,700,000 |
Casualty [Member] | |||
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | -97,795,000 | -103,165,000 | -182,014,000 |
Casualty [Member] | Long-Tailed Casualty Classes [Member] | |||
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | 82,800,000 | 98,200,000 | 165,800,000 |
Finite Risk [Member] | |||
Adjustments to Net Incurred Losses and Loss Adjustment Expenses Related to Prior Years [Abstract] | |||
Net favorable loss development | -2,456,000 | -8,859,000 | -7,865,000 |
Additional profit commissions | $1,900,000 | $7,100,000 | $8,100,000 |
Retrocessional_Reinsurance_Det
Retrocessional Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Retrocessional Reinsurance [Abstract] | |||||||||||
Assumed premiums written | $509,127 | $579,761 | $569,724 | ||||||||
Assumed premiums earned | 522,747 | 567,682 | 576,920 | ||||||||
Assumed losses and LAE | 185,024 | 164,565 | 183,376 | ||||||||
Ceded premiums written | 17,059 | 12,640 | 4,724 | ||||||||
Ceded premiums earned | 16,111 | 14,269 | 10,424 | ||||||||
Ceded losses and LAE | 1,623 | -2,881 | -284 | ||||||||
Net premiums written | 492,068 | 567,121 | 565,000 | ||||||||
Net premiums earned | 126,075 | 129,463 | 124,825 | 126,273 | 148,267 | 135,360 | 142,933 | 126,853 | 506,636 | 553,413 | 566,496 |
Net losses and LAE | $39,849 | $66,178 | $50,865 | $26,509 | $46,639 | $44,142 | $62,667 | $13,998 | $183,401 | $167,446 | $183,660 |
Recovered_Sheet1
Debt Obligations and Credit Facilities, Debt Obligations (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Debt obligations | $250,000 | $250,000 |
Platinum Finance [Member] | ||
Debt Instrument [Line Items] | ||
Debt obligations | 250,000 | 250,000 |
Platinum Finance [Member] | Series B Notes Payable [Member] | ||
Debt Instrument [Line Items] | ||
Debt obligations | $250,000 | |
Interest rate (in hundredths) | 7.50% | |
Maturity date | 1-Jun-17 |
Debt_Obligations_And_Credit_Fa2
Debt Obligations And Credit Facilities, Credit Facilities (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Line of Credit Facility [Line Items] | ||
Credit capacity | $675,000,000 | |
Committed credit capacity | 410,900,000 | |
Uncommitted credit capacity | 264,100,000 | |
Letters of credit issued | 113,266,000 | [1] |
Collateral, cash and cash equivalents | 131,300,000 | |
Credit capacity remaining | 561,734,000 | |
Additional borrowing capacity subject to lender approval | 175,000,000 | |
Syndicated Credit Facility [Member] | Secured Senior Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Term of credit facility | 4 years | |
Credit capacity | 300,000,000 | |
Sublimit for revolving borrowings | 100,000,000 | |
Letters of credit issued | 85,509,000 | [1] |
Credit capacity remaining | 214,491,000 | |
Other LOC Facilities [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit capacity | 375,000,000 | |
Letters of credit issued | 27,757,000 | [1] |
Credit capacity remaining | 347,243,000 | |
Other LOC Facilities [Member] | Letter of Credit Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit capacity | 100,000,000 | |
Other LOC Facilities [Member] | Uncommitted LOC Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit capacity | 150,000,000 | |
Platinum Bermuda [Member] | Other LOC Facilities [Member] | Uncommitted LOC Facility [Member] | ||
Line of Credit Facility [Line Items] | ||
Credit capacity | 125,000,000 | |
Letters of credit issued | $10,900,000 | |
[1] | Cash and cash equivalents of $131.3 million were held to collateralize LOC issued as of December 31, 2014. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Taxes [Abstract] | |||
Income (loss) before income taxes | $182,002 | $258,005 | $352,224 |
Current and Deferred Income Taxes [Abstract] | |||
Current tax expense | 12,317 | 24,708 | 16,205 |
Deferred tax expense (benefit) | 4,917 | 10,019 | 8,791 |
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 |
Reconciliation of Expected Income Taxes to Income Tax Expense [Abstract] | |||
Expected income tax expense (benefit) at 0% | 0 | 0 | 0 |
Tax exempt investment income | -5,248 | -4,745 | -4,470 |
U.S. state taxes, net of U.S. federal tax benefit | 459 | 455 | 355 |
Prior year adjustment | 0 | 0 | -305 |
Non-deductible expenses and other | 1,480 | 1,651 | 1,363 |
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 |
Deferred Tax Assets [Abstract] | |||
Unpaid losses and LAE | 29,598 | 34,365 | |
Unearned premiums | 6,340 | 7,136 | |
Temporary differences in recognition of expenses | 3,210 | 3,178 | |
Total deferred tax assets | 39,148 | 44,679 | |
Deferred Tax Liabilities [Abstract] | |||
Deferred acquisition costs | 8,579 | 9,333 | |
Deferred gains on investments | 12,598 | 9,898 | |
Other | 448 | 307 | |
Total deferred tax liabilities | 21,625 | 19,538 | |
Net deferred tax assets | 17,523 | 25,141 | |
Platinum United States [Member] | |||
Income Taxes [Abstract] | |||
Income tax return currently under examination by the U.S. Internal Revenue Service | 2011 | ||
Platinum United States [Member] | Minimum [Member] | |||
Income Taxes [Abstract] | |||
Income tax return open to examination | 2010 | ||
Platinum Regency [Member] | Minimum [Member] | |||
Income Taxes [Abstract] | |||
Income tax return open to examination | 2010 | ||
Bermuda [Member] | |||
Income Taxes [Abstract] | |||
Income tax rate | 0.00% | ||
Income (loss) before income taxes | 123,371 | 151,289 | 272,163 |
United States [Member] | |||
Income Taxes [Abstract] | |||
Income tax rate | 35.00% | ||
Income (loss) before income taxes | 58,851 | 106,869 | 80,322 |
Reconciliation of Expected Income Taxes to Income Tax Expense [Abstract] | |||
Foreign taxes at local expected rates | 20,598 | 37,404 | 28,113 |
Ireland and Other [Member] | |||
Income Taxes [Abstract] | |||
Foreign corporate income tax rate on non-trading revenue | 25.00% | ||
Foreign corporate income tax rate on trading revenue | 12.50% | ||
Income (loss) before income taxes | -220 | -153 | -261 |
Reconciliation of Expected Income Taxes to Income Tax Expense [Abstract] | |||
Foreign taxes at local expected rates | ($55) | ($38) | ($60) |
Shareholders_Equity_Details
Shareholders' Equity (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Shares [Abstract] | ||||||
Number of common shares the company is authorized to issue (in shares) | 200,000,000 | 200,000,000 | ||||
Par value of authorized common stock (in dollars per share) | $0.01 | $0.01 | ||||
Shares issued and outstanding, beginning of year (in shares) | 28,142,977 | 32,722 | 35,526 | |||
Options exercised (in shares) | 12 | 685 | 170 | |||
Restricted shares issued (in shares) | 41 | [1] | -13 | [1] | -5 | [1] |
Restricted share units issued (in shares) | 204 | 109 | 120 | |||
Shares repurchased (in shares) | 3,558,690 | 5,360,266 | 3,088,589 | |||
Shares issued and outstanding, end of year (in shares) | 24,840,539 | 28,142,977 | 32,722 | |||
Number of preferred shares the company is authorized to issue (in shares) | 25,000,000 | |||||
Par value of authorized preferred stock (in dollars per share) | $0.01 | |||||
Preferred shares outstanding | 0 | 0 | 0 | |||
Share Repurchases [Abstract] | ||||||
Stock repurchase program authorized amount | $250,000,000 | |||||
Shares repurchased (in shares) | 3,558,690 | 5,360,266 | 3,088,589 | |||
Weighted average cost per share (in dollars per share) | $60.61 | [2] | $56.58 | [2] | $37.46 | [2] |
Aggregate amount paid for common shares repurchased and retired | -215,684,000 | -303,294,000 | -115,702,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $110,100,000 | |||||
[1] | Restricted shares issued are net of forfeitures and cancelations. | |||||
[2] | Including commissions. |
Shareholders_Equity_Accumulate
Shareholders' Equity, Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Pre-tax [Roll Forward] | |||
Balance, beginning of year | $57,982 | $159,975 | $168,861 |
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | 51,837 | -76,783 | 77,863 |
Reclassifications to net income | -4,532 | -25,210 | -86,749 |
Other comprehensive income (loss) before income taxes | 47,305 | -101,993 | -8,886 |
Balance, end of year | 105,287 | 57,982 | 159,975 |
Accumulated Other Comprehensive Income (Loss), Tax [Roll Forward] | |||
Balance, beginning of year | -9,898 | -22,285 | -22,226 |
Reclassification from accumulated other comprehensive income, tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications, tax | -3,570 | 8,745 | -5,409 |
Reclassifications to net income, tax | 870 | 3,642 | 5,350 |
Other comprehensive income (loss), tax | -2,700 | 12,387 | -59 |
Balance, end of year | -12,598 | -9,898 | -22,285 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Balance, beginning of year | 48,084 | 137,690 | 146,635 |
Reclassifications from accumulated other comprehensive income, net of tax [Abstract] | |||
Other comprehensive income (loss), before reclassifications | 48,267 | -68,038 | 72,454 |
Reclassifications to net income | -3,662 | -21,568 | -81,399 |
Other comprehensive income (loss) | 44,605 | -89,606 | -8,945 |
Balance, end of year | 92,689 | 48,084 | 137,690 |
Accumulated Other-than-Temporary Impairment [Member] | |||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | -991 | -631 | 211 |
Reclassifications to net income | 840 | 2,033 | 3,031 |
Reclassification from accumulated other comprehensive income, tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications, tax | 1 | 11 | 99 |
Reclassifications to net income, tax | -1 | -33 | -302 |
Reclassifications from accumulated other comprehensive income, net of tax [Abstract] | |||
Other comprehensive income (loss), before reclassifications | -990 | -620 | 310 |
Reclassifications to net income | 839 | 2,000 | 2,729 |
Accumulated Net Unrealized Investment Gain (Loss) [Member] | |||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications | 52,828 | -76,152 | 77,652 |
Reclassifications to net income | -5,372 | -27,243 | -89,780 |
Reclassification from accumulated other comprehensive income, tax [Abstract] | |||
Other comprehensive income (loss) before reclassifications, tax | -3,571 | 8,734 | -5,508 |
Reclassifications to net income, tax | 871 | 3,675 | 5,652 |
Reclassifications from accumulated other comprehensive income, net of tax [Abstract] | |||
Other comprehensive income (loss), before reclassifications | 49,257 | -67,418 | 72,144 |
Reclassifications to net income | ($4,501) | ($23,568) | ($84,128) |
Shareholders_Equity_Reclassfic
Shareholders' Equity, Reclassfication Out of Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenue: | |||||||||||
Net realized gains (losses) on investments | $764 | $3,109 | ($596) | ($515) | ($778) | ($306) | $11,686 | $13,318 | $2,762 | $23,920 | $88,754 |
Net impairment losses on investments | -840 | -2,033 | -3,031 | ||||||||
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 | ||||||||
Accumulated Net Unrealized Investment Gain (Loss) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||||||
Revenue: | |||||||||||
Net realized gains (losses) on investments | -5,372 | -27,243 | -89,780 | ||||||||
Net impairment losses on investments | 840 | 2,033 | 3,031 | ||||||||
Income tax expense (benefit) | $870 | $3,642 | $5,350 |
Statutory_Regulations_And_Divi2
Statutory Regulations And Dividend Restrictions (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 14, 2015 | Feb. 10, 2015 | |
Statutory Accounting Practices [Line Items] | |||||
Enhanced capital requirement percentage | 60.00% | ||||
Early warning level triggering additional reporting requirements percentage | 120.00% | ||||
Statutory net income (loss) | $209,000,000 | $264,000,000 | $364,300,000 | ||
Dividends paid during period | 339,000,000 | ||||
Bermuda [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Early warning level triggering additional reporting requirements percentage | 120.00% | ||||
Actual statutory capital and surplus | 981,136,000 | 1,057,281,000 | |||
Required statutory capital and surplus | 248,758,000 | 327,221,000 | |||
Maximum amount available for payment of dividends | 245,300,000 | ||||
United States [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Actual statutory capital and surplus | 531,368,000 | 549,242,000 | |||
Required statutory capital and surplus | 242,670,000 | 258,528,000 | |||
Maximum amount available for payment of dividends | 27,200,000 | ||||
Platinum Bermuda [Member] | Platinum Holdings [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividends paid during period | 264,000,000 | ||||
Platinum Bermuda [Member] | Bermuda [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Maximum percentage of statutory capital and surplus available for dividends in the next year | 25.00% | ||||
Platinum United States [Member] | Platinum Finance [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividends paid during period | 75,000,000 | ||||
Platinum United States [Member] | United States [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Notification period prior to payment of an ordinary dividend | 10 days | ||||
Notification period prior to payment of an extraordinary dividend | 30 days | ||||
Subsequent Event [Member] | Dividend Declared [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividend declared (in dollars per share) | $0.08 | ||||
Dividends [Abstract] | |||||
Dividend, date declared | 10-Feb-15 | ||||
Dividend declared (in dollars per share) | $0.08 | ||||
Subsequent Event [Member] | Special Dividend Declared [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividend declared (in dollars per share) | $10 | ||||
Dividends [Abstract] | |||||
Dividend, date declared | 10-Feb-15 | ||||
Dividend declared (in dollars per share) | $10 | ||||
Subsequent Event [Member] | Platinum Bermuda [Member] | Platinum Holdings [Member] | |||||
Statutory Accounting Practices [Line Items] | |||||
Dividends paid during period | $240,000,000 |
Operating_Segment_Information_1
Operating Segment Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Segment Information [Abstract] | |||||||||||
Number of operating segments | 3 | ||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | $492,068 | $567,121 | $565,000 | ||||||||
Net premiums earned | 126,075 | 129,463 | 124,825 | 126,273 | 148,267 | 135,360 | 142,933 | 126,853 | 506,636 | 553,413 | 566,496 |
Net losses and loss adjustment expenses | 39,849 | 66,178 | 50,865 | 26,509 | 46,639 | 44,142 | 62,667 | 13,998 | 183,401 | 167,446 | 183,660 |
Net acquisition expenses | 30,413 | 28,042 | 27,848 | 27,501 | 32,560 | 30,675 | 30,313 | 30,219 | 113,804 | 123,767 | 115,437 |
Other underwriting expenses | 54,419 | 55,486 | 55,182 | ||||||||
Segment underwriting income (loss) | 155,012 | 206,714 | 212,217 | ||||||||
Reconciliation of Operating Profit (Loss) From Segments to Consolidated [Abstract] | |||||||||||
Net investment income (expense) | 16,561 | 17,523 | 17,645 | 17,692 | 17,936 | 17,758 | 17,808 | 18,544 | 69,421 | 72,046 | 99,947 |
Net realized gains (losses) on investments | 764 | 3,109 | -596 | -515 | -778 | -306 | 11,686 | 13,318 | 2,762 | 23,920 | 88,754 |
Net impairment losses on investments | -840 | -2,033 | -3,031 | ||||||||
Other income (expense) | 3,180 | 3,477 | -239 | ||||||||
Corporate expenses not allocated to segments | 28,900 | 27,200 | 25,300 | ||||||||
Net foreign currency exchange (losses) gains | 512 | 234 | -1,055 | ||||||||
Interest expense | -19,155 | -19,125 | -19,098 | ||||||||
Income (loss) before income taxes | 182,002 | 258,005 | 352,224 | ||||||||
Underwriting Ratios: | |||||||||||
Net loss and loss adjustment expense | 36.20% | 30.30% | 32.40% | ||||||||
Net acquisition expense | 22.50% | 22.40% | 20.40% | ||||||||
Other underwriting expense | 10.70% | 10.00% | 9.70% | ||||||||
Combined | 69.40% | 62.70% | 62.50% | ||||||||
United States [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | 386,743 | 444,110 | 441,762 | ||||||||
Reconciliation of Operating Profit (Loss) From Segments to Consolidated [Abstract] | |||||||||||
Income (loss) before income taxes | 58,851 | 106,869 | 80,322 | ||||||||
International [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | 105,325 | 123,011 | 123,238 | ||||||||
Operating Segment [Member] | Property and Marine [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | 207,867 | 229,507 | 256,182 | ||||||||
Net premiums earned | 211,640 | 222,010 | 253,604 | ||||||||
Net losses and loss adjustment expenses | 69,779 | 34,421 | 132,580 | ||||||||
Net acquisition expenses | 40,074 | 38,342 | 34,342 | ||||||||
Other underwriting expenses | 31,087 | 30,898 | 31,140 | ||||||||
Segment underwriting income (loss) | 70,700 | 118,349 | 55,542 | ||||||||
Underwriting Ratios: | |||||||||||
Net loss and loss adjustment expense | 33.00% | 15.50% | 52.30% | ||||||||
Net acquisition expense | 18.90% | 17.30% | 13.50% | ||||||||
Other underwriting expense | 14.70% | 13.90% | 12.30% | ||||||||
Combined | 66.60% | 46.70% | 78.10% | ||||||||
Operating Segment [Member] | Casualty [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | 259,809 | 295,668 | 287,112 | ||||||||
Net premiums earned | 267,224 | 297,888 | 294,122 | ||||||||
Net losses and loss adjustment expenses | 95,080 | 115,888 | 43,763 | ||||||||
Net acquisition expenses | 66,404 | 71,648 | 68,987 | ||||||||
Other underwriting expenses | 22,022 | 23,149 | 22,937 | ||||||||
Segment underwriting income (loss) | 83,718 | 87,203 | 158,435 | ||||||||
Underwriting Ratios: | |||||||||||
Net loss and loss adjustment expense | 35.60% | 38.90% | 14.90% | ||||||||
Net acquisition expense | 24.80% | 24.10% | 23.50% | ||||||||
Other underwriting expense | 8.20% | 7.80% | 7.80% | ||||||||
Combined | 68.60% | 70.80% | 46.20% | ||||||||
Operating Segment [Member] | Finite Risk [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net premiums written | 24,392 | 41,946 | 21,706 | ||||||||
Net premiums earned | 27,772 | 33,515 | 18,770 | ||||||||
Net losses and loss adjustment expenses | 18,542 | 17,137 | 7,317 | ||||||||
Net acquisition expenses | 7,326 | 13,777 | 12,108 | ||||||||
Other underwriting expenses | 1,310 | 1,439 | 1,105 | ||||||||
Segment underwriting income (loss) | 594 | 1,162 | -1,760 | ||||||||
Underwriting Ratios: | |||||||||||
Net loss and loss adjustment expense | 66.80% | 51.10% | 39.00% | ||||||||
Net acquisition expense | 26.40% | 41.10% | 64.50% | ||||||||
Other underwriting expense | 4.70% | 4.30% | 5.90% | ||||||||
Combined | 97.90% | 96.50% | 109.40% | ||||||||
Segment Reconciling Items [Member] | |||||||||||
Reconciliation of Operating Profit (Loss) From Segments to Consolidated [Abstract] | |||||||||||
Net investment income (expense) | 69,421 | 72,046 | 99,947 | ||||||||
Net realized gains (losses) on investments | 2,762 | 23,920 | 88,754 | ||||||||
Net impairment losses on investments | -840 | -2,033 | -3,031 | ||||||||
Other income (expense) | 3,180 | 3,477 | -239 | ||||||||
Corporate expenses not allocated to segments | -28,890 | -27,228 | -25,271 | ||||||||
Net foreign currency exchange (losses) gains | -512 | -234 | 1,055 | ||||||||
Interest expense | 19,155 | 19,125 | 19,098 | ||||||||
Income (loss) before income taxes | $182,002 | $258,005 | $352,224 |
Share_Incentive_Compensation_a2
Share Incentive Compensation and Defined Contribution Retirement Plans (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized to be granted | 3,572,977 | |||||
Number of new shares authorized by 2010 share incentive plan | 3,100,000 | |||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | $14,445,000 | $14,518,000 | $10,137,000 | |||
Tax benefit | -2,562,000 | -2,560,000 | -1,829,000 | |||
Share-based compensation expense, net of tax | 11,883,000 | 11,958,000 | 8,308,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 17,300,000 | |||||
Stock options outstanding [Roll Forward] | ||||||
Exercised (in shares) | -12 | -685 | -170 | |||
Stock options, additional disclosures | ||||||
Expenses related to the defined contribution plans | 2,300,000 | 2,300,000 | 2,000,000 | |||
Restricted Share Units [Member] | Performance Based Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance and vesting period | 3 years | |||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | 6,299,000 | 6,264,000 | 2,810,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Restricted share units earned for full performance period | 130,709 | 24,873 | 19,761 | |||
Settlement value of performance awards | For awards granted prior to July 2014, the performance adjustment is calculated based on the average annual return on equity over three years. For awards granted in 2012 and later, an average return on equity between 4% and 15% or more results in a settlement of 25% to 150% of the initial award. In addition, there is a minimum payout of 8.33% of the share units granted for each year of the three-year performance period that the average return on equity is 4% or more. For awards granted in July 2014, the performance adjustment is calculated based on the Average Change in Adjusted FCBVPS over three years. An Average Change in Adjusted FCBVPS between 4.3% and 8.6% results in a settlement of 40% to 100%. An Average Change in Adjusted FCBVPS between 8.6% and 12.9% or more results in a settlement of 100% to 150%. | |||||
Restricted Share Units [Member] | Performance Based Awards [Member] | Equity Award [Member] | ||||||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 100,000 | |||||
Unrecognized compensation cost to be recognized over weighted-average period | 0 years 6 months 2 days | |||||
Settlement value of performance awards | During 2012, we granted additional executive incentive plan awards, to be settled in shares, 50% of which vested in 2013 and 50% of which vested in 2014, based on our performance during 2012 and 2013, respectively. A return on equity of 4% or more in each year resulted in full settlement of the grants. | |||||
Fair value of the awards at grant date | 300,000 | 1,100,000 | ||||
Weighted average grant fair value (in dollars per share) | $0 | $51.17 | $35.95 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 32,000 | 43,000 | 19,000 | |||
Granted (in shares) | 0 | 6,000 | 31,000 | |||
Vested (in shares) | 13,000 | 18,000 | 20,000 | |||
Forfeited (in shares) | 0 | 0 | 0 | |||
Performance adjustment (in shares) | -1,000 | 1,000 | 13,000 | |||
Outstanding - end of year (in shares) | 18,000 | 32,000 | 43,000 | |||
Equity instruments other than options, nonvested weighted average grant date fair value [Roll Forward] | ||||||
Outstanding - beginning of year (in dollars per share) | $39.79 | $36.13 | $28.65 | |||
Granted (in dollars per share) | $0 | $51.17 | $35.95 | |||
Vested (in dollars per share) | $36.65 | $36.30 | $28.65 | |||
Forfeited (in dollars per share) | $0 | $0 | $0 | |||
Performance adjustment (in dollars per share) | $45.44 | $44 | $35.87 | |||
Outstanding - end of year (in dollars per share) | $41.42 | $39.79 | $36.13 | |||
Restricted Share Units [Member] | Performance Based Awards [Member] | Liability Award [Member] | ||||||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 5,800,000 | |||||
Unrecognized compensation cost to be recognized over weighted-average period | 0 years 10 months 25 days | |||||
Settlement value of performance awards | In addition to the performance conditions, the fair value of liability-classified awards is adjusted at the end of each reporting date by multiplying the closing share price at the reporting date by the number of share units outstanding. | |||||
Fair value of the awards at grant date | 4,600,000 | 3,300,000 | 3,000,000 | |||
Weighted average grant fair value (in dollars per share) | $56.95 | $51.60 | $35.95 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 220,000 | 125,000 | 0 | |||
Granted (in shares) | 81,000 | 65,000 | 83,000 | |||
Vested (in shares) | 12,000 | 0 | 0 | |||
Forfeited (in shares) | 0 | 0 | 0 | |||
Performance adjustment (in shares) | -34,000 | 30,000 | 42,000 | |||
Outstanding - end of year (in shares) | 255,000 | 220,000 | 125,000 | |||
Equity instruments other than options, nonvested weighted average grant date fair value [Roll Forward] | ||||||
Outstanding - beginning of year (in dollars per share) | $42.27 | $35.95 | $0 | |||
Granted (in dollars per share) | $56.95 | $51.60 | $35.95 | |||
Vested (in dollars per share) | $43.67 | $0 | $0 | |||
Forfeited (in dollars per share) | $0 | $0 | $0 | |||
Performance adjustment (in dollars per share) | $52.04 | $48.30 | $35.95 | |||
Outstanding - end of year (in dollars per share) | $45.60 | $42.27 | $35.95 | |||
Restricted Share Units [Member] | Service Based Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance and vesting period | 4 years | |||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | 4,420,000 | 4,198,000 | 3,974,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 6,600,000 | |||||
Unrecognized compensation cost to be recognized over weighted-average period | 1 year | |||||
Fair value of the awards at grant date | 4,300,000 | 4,200,000 | 4,600,000 | |||
Weighted average grant fair value (in dollars per share) | $56.25 | $51.60 | $36.02 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 235,000 | 263,000 | 280,000 | |||
Granted (in shares) | 76,000 | 82,000 | 128,000 | |||
Vested (in shares) | 100,000 | 110,000 | 126,000 | |||
Forfeited (in shares) | 0 | 0 | 19,000 | |||
Outstanding - end of year (in shares) | 211,000 | 235,000 | 263,000 | |||
Equity instruments other than options, nonvested weighted average grant date fair value [Roll Forward] | ||||||
Outstanding - beginning of year (in dollars per share) | $42.96 | $37.36 | $37.17 | |||
Granted (in dollars per share) | $56.25 | $51.60 | $36.02 | |||
Vested (in dollars per share) | $42.28 | $35.96 | $35.46 | |||
Forfeited (in dollars per share) | $0 | $0 | $38.09 | |||
Outstanding - end of year (in dollars per share) | $48.09 | $42.96 | $37.36 | |||
Restricted Share Units [Member] | Service Based Awards [Member] | Non Employee Directors [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance and vesting period | 1 year | |||||
Restricted Share Units [Member] | Market Based Awards [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance and vesting period | 3 years | |||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | 3,369,000 | 3,173,000 | 1,617,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 2,600,000 | |||||
Unrecognized compensation cost to be recognized over weighted-average period | 1 year | |||||
Settlement value of performance awards | Upon vesting, the number of market share units granted will be multiplied by the market-based multiplier equal to our average share price for the 20 trading days ending on the last day of the quarter preceding the vesting date divided by the initial average share price to determine the number of common shares to be paid out. The maximum number of common shares payable at settlement is 150% of the share units granted and no share units will be paid out if the market-based multiplier is less than 50%. | |||||
Fair value of the awards at grant date | 3,500,000 | 7,200,000 | ||||
Methodology used to calculate fair value of market-based awards | Monte Carlo simulation | |||||
Dividend yield | 0.60% | 0.90% | ||||
Risk free interest rate | 0.60% | 0.30% | ||||
Expected volatility (historical) | 23.40% | 24.90% | ||||
Initial average share price (in dollars per share) | $57.19 | $35.17 | ||||
Weighted average grant fair value (in dollars per share) | $0 | $61.58 | $41.93 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 319,000 | 223,000 | 0 | |||
Granted (in shares) | 0 | 57,000 | 173,000 | |||
Vested (in shares) | 134,000 | 0 | 0 | |||
Forfeited (in shares) | 0 | 0 | 0 | |||
Market adjustment (in shares) | 13,000 | 39,000 | 50,000 | |||
Outstanding - end of year (in shares) | 198,000 | 319,000 | 223,000 | |||
Equity instruments other than options, nonvested weighted average grant date fair value [Roll Forward] | ||||||
Outstanding - beginning of year (in dollars per share) | $45.64 | $41.93 | $0 | |||
Granted (in dollars per share) | $0 | $61.58 | $41.93 | |||
Vested (in dollars per share) | $40.43 | $0 | $0 | |||
Forfeited (in dollars per share) | $0 | $0 | $0 | |||
Market adjustment (in dollars per share) | $61.58 | $44.12 | $41.93 | |||
Outstanding - end of year (in dollars per share) | $50.22 | $45.64 | $41.93 | |||
Restricted Share Units [Member] | Market Based Awards [Member] | Grant Year 2012 [Member] | ||||||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Market-based multiplier - initial | 100.00% | |||||
Change in market-based multiplier | 0.00% | 21.00% | 29.00% | |||
Market-based multiplier - reporting date | 150.00% | |||||
Restricted Share Units [Member] | Market Based Awards [Member] | Grant Year 2013 [Member] | ||||||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Market-based multiplier - initial | 100.00% | |||||
Change in market-based multiplier | 23.00% | 6.00% | 0.00% | |||
Market-based multiplier - reporting date | 129.00% | |||||
Restricted Shares [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance and vesting period | 3 years | |||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | 357,000 | 883,000 | 1,666,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 2,200,000 | |||||
Unrecognized compensation cost to be recognized over weighted-average period | 1 year 7 months 7 days | |||||
Fair value of the awards at grant date | 2,600,000 | |||||
Weighted average grant fair value (in dollars per share) | $61.83 | $0 | $0 | |||
Equity instruments other than options, nonvested [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 0 | 73,000 | 146,000 | |||
Granted (in shares) | 41,000 | 0 | 0 | |||
Vested (in shares) | 0 | 73,000 | 73,000 | |||
Forfeited (in shares) | 0 | 0 | 0 | |||
Outstanding - end of year (in shares) | 41,000 | 0 | 73,000 | |||
Equity instruments other than options, nonvested weighted average grant date fair value [Roll Forward] | ||||||
Outstanding - beginning of year (in dollars per share) | $0 | $36.50 | $36.50 | |||
Granted (in dollars per share) | $61.83 | $0 | $0 | |||
Vested (in dollars per share) | $0 | $36.50 | $36.50 | |||
Forfeited (in dollars per share) | $0 | $0 | $0 | |||
Outstanding - end of year (in dollars per share) | $61.83 | $0 | $36.50 | |||
Share Options [Member] | ||||||
Total share-based compensation expense recognized [Abstract] | ||||||
Share-based compensation expense | 0 | 0 | 70,000 | |||
Equity instruments other than options, additional disclosures [Abstract] | ||||||
Unrecognized compensation cost | 0 | |||||
Stock options outstanding [Roll Forward] | ||||||
Outstanding - beginning of year (in shares) | 148,000 | 833,000 | 1,030,000 | |||
Granted (in shares) | 0 | 0 | 0 | |||
Exercised (in shares) | 12,000 | 685,000 | 170,000 | |||
Forfeited (in shares) | 0 | 0 | 27,000 | |||
Outstanding - end of year (in shares) | 136,000 | 148,000 | 833,000 | |||
Options exercisable at year end (in shares) | 136,000 | 148,000 | 833,000 | |||
Stock options outstanding weighted average exercise price [Rollforward] | ||||||
Outstanding - beginning of year (in dollars per share) | $33.81 | $33.25 | $31.90 | |||
Granted (in dollars per share) | $0 | $0 | $0 | |||
Exercised (in dollars per share) | $33.23 | $33.13 | $26.67 | |||
Forfeited (in dollars per share) | $0 | $0 | $23.47 | |||
Outstanding - end of year (in dollars per share) | $33.86 | $33.81 | $33.25 | |||
Weighted average exercise price of options exercisable at year end (in dollars per share) | $33.86 | $33.81 | $33.25 | |||
Stock options, additional disclosures | ||||||
Stock option awards vesting period | three or four year period | |||||
Stock option awards expiration period from date of grant | 10 years | |||||
Intrinsic value of options exercised | 384,000 | [1] | 15,922,000 | [1] | 2,511,000 | [1] |
Fair value of options exercised | 112,000 | [2] | 5,948,000 | [2] | 1,331,000 | [2] |
Fair value of options vested | $0 | [2] | $0 | [2] | $488,000 | [2] |
Weighted average remaining contractual term for options outstanding | 2 years 8 months 13 days | |||||
[1] | Represents the difference between the market value and exercise price on the date of exercise. | |||||
[2] | Based on the Black-Scholes option pricing model. |
Earnings_Loss_Per_Common_Share2
Earnings (Loss) Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Earnings (Loss) - Basic and Diluted [Abstract] | ||||||||||||||
Net income (loss) attributable to common shareholders | $35,728 | $29,125 | $36,180 | $63,735 | $48,623 | $38,285 | $49,854 | $86,516 | $164,768 | $223,278 | $327,228 | |||
Portion allocated to participating common shareholders | -107 | [1] | -293 | [1] | -1,076 | [1] | ||||||||
Net income (loss) allocated to common shareholders | $164,661 | $222,985 | $326,152 | |||||||||||
Common Shares - Basic [Abstract] | ||||||||||||||
Weighted average common shares outstanding | 24,793 | 25,731 | 26,577 | 27,765 | 28,097 | 28,655 | 30,571 | 32,373 | 26,207 | 29,909 | 33,714 | |||
Common Shares - Diluted [Abstract] | ||||||||||||||
Basic (in shares) | 24,793 | 25,731 | 26,577 | 27,765 | 28,097 | 28,655 | 30,571 | 32,373 | 26,207 | 29,909 | 33,714 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Adjusted weighted average common shares outstanding | 25,090 | 26,002 | 26,928 | 28,109 | 28,492 | 29,065 | 30,970 | 32,838 | 26,524 | 30,334 | 33,981 | |||
Earnings (Loss) Per Common Share [Abstract] | ||||||||||||||
Basic earnings (loss) per common share | $1.44 | $1.13 | $1.36 | $2.30 | $1.73 | $1.34 | $1.63 | $2.67 | $6.28 | $7.46 | $9.67 | |||
Diluted earnings (loss) per common share | $1.42 | $1.12 | $1.34 | $2.27 | $1.71 | $1.32 | $1.61 | $2.63 | $6.21 | $7.35 | $9.60 | |||
Common Share Options [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share equivalents | 54 | 150 | 171 | |||||||||||
Restricted Share Units [Member] | ||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||||
Share equivalents | 263 | 275 | 96 | |||||||||||
[1] | Represents earnings attributable to holders of unvested restricted shares issued under the Company's share incentive plans that are considered to be participating securities. |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Future Minimum Annual Lease Commitments Under Operating Leases [Abstract] | |||
2015 | $2,589,000 | ||
2016 | 2,452,000 | ||
2017 | 2,455,000 | ||
2018 | 2,421,000 | ||
2019 | 2,423,000 | ||
Thereafter | 8,916,000 | ||
Total | 21,256,000 | ||
Operating lease expense | 2,400,000 | 3,700,000 | 2,700,000 |
Other Operating Agreement Contractual Obligations [Abstract] | |||
2015 | 1,300,000 | ||
2016 | 1,200,000 | ||
2017 and thereafter | $1,200,000 | ||
Customer Concentration Risk [Member] | Aon Benfield [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 28.00% | ||
Customer Concentration Risk [Member] | Marsh & McLennan Companies [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 25.00% | ||
Customer Concentration Risk [Member] | Willis Group Holdings [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 16.00% | ||
Customer Concentration Risk [Member] | Jardine Lloyd Thompson Group plc [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.00% |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Net premiums earned | $126,075 | $129,463 | $124,825 | $126,273 | $148,267 | $135,360 | $142,933 | $126,853 | $506,636 | $553,413 | $566,496 |
Net investment income (expense) | 16,561 | 17,523 | 17,645 | 17,692 | 17,936 | 17,758 | 17,808 | 18,544 | 69,421 | 72,046 | 99,947 |
Net realized gains (losses) on investments | 764 | 3,109 | -596 | -515 | -778 | -306 | 11,686 | 13,318 | 2,762 | 23,920 | 88,754 |
Net losses and LAE | 39,849 | 66,178 | 50,865 | 26,509 | 46,639 | 44,142 | 62,667 | 13,998 | 183,401 | 167,446 | 183,660 |
Net acquisition expenses | 30,413 | 28,042 | 27,848 | 27,501 | 32,560 | 30,675 | 30,313 | 30,219 | 113,804 | 123,767 | 115,437 |
Operating expenses | 24,985 | 18,607 | 21,434 | 18,283 | 23,019 | 20,672 | 19,718 | 19,305 | 83,309 | 82,714 | 80,453 |
Net income (loss) | $35,728 | $29,125 | $36,180 | $63,735 | $48,623 | $38,285 | $49,854 | $86,516 | $164,768 | $223,278 | $327,228 |
Earnings (Loss) Per Common Share [Abstract] | |||||||||||
Basic (in dollars per share) | $1.44 | $1.13 | $1.36 | $2.30 | $1.73 | $1.34 | $1.63 | $2.67 | $6.28 | $7.46 | $9.67 |
Diluted (in dollars per share) | $1.42 | $1.12 | $1.34 | $2.27 | $1.71 | $1.32 | $1.61 | $2.63 | $6.21 | $7.35 | $9.60 |
Average Common Shares Outstanding [Abstract] | |||||||||||
Basic (in shares) | 24,793 | 25,731 | 26,577 | 27,765 | 28,097 | 28,655 | 30,571 | 32,373 | 26,207 | 29,909 | 33,714 |
Diluted (in shares) | 25,090 | 26,002 | 26,928 | 28,109 | 28,492 | 29,065 | 30,970 | 32,838 | 26,524 | 30,334 | 33,981 |
Condensed_Consolidating_Financ2
Condensed Consolidating Financial Information - Condensed Consolidating Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
ASSETS | ||||||
Total investments | $1,873,054,000 | $2,027,944,000 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Cash and cash equivalents | 1,434,984,000 | 1,464,418,000 | 1,720,395,000 | 792,510,000 | ||
Reinsurance assets | 247,495,000 | 290,887,000 | ||||
Inter-company receivables | 0 | 0 | ||||
Other assets | 131,556,000 | 140,636,000 | ||||
Total assets | 3,687,089,000 | 3,923,885,000 | ||||
Liabilities | ||||||
Reinsurance liabilities | 1,597,304,000 | 1,876,456,000 | ||||
Debt obligations | 250,000,000 | 250,000,000 | ||||
Inter-company payables | 0 | 0 | ||||
Other liabilities | 101,760,000 | 50,722,000 | ||||
Total liabilities | 1,949,064,000 | 2,177,178,000 | ||||
Shareholders' Equity | ||||||
Common shares | 248,000 | 281,000 | ||||
Additional paid-in capital | 2,415,000 | 10,711,000 | ||||
Accumulated other comprehensive income | 92,689,000 | 48,084,000 | 137,690,000 | 146,635,000 | ||
Retained earnings | 1,642,673,000 | 1,687,631,000 | ||||
Total shareholders' equity | 1,738,025,000 | 1,746,707,000 | 1,894,534,000 | |||
Total liabilities and shareholders' equity | 3,687,089,000 | 3,923,885,000 | ||||
Consolidating Adjustments [Member] | ||||||
ASSETS | ||||||
Total investments | 0 | 0 | ||||
Investment in subsidiaries | -2,862,112,000 | -2,860,279,000 | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | ||
Reinsurance assets | 0 | 0 | ||||
Inter-company receivables | -11,681,000 | -10,090,000 | ||||
Other assets | 0 | 0 | ||||
Total assets | -2,873,793,000 | -2,870,369,000 | ||||
Liabilities | ||||||
Reinsurance liabilities | 0 | 0 | ||||
Debt obligations | 0 | 0 | ||||
Inter-company payables | -11,681,000 | -10,090,000 | ||||
Other liabilities | 0 | 0 | ||||
Total liabilities | -11,681,000 | -10,090,000 | ||||
Shareholders' Equity | ||||||
Common shares | -8,000,000 | -8,000,000 | ||||
Additional paid-in capital | -2,241,684,000 | -2,239,829,000 | ||||
Accumulated other comprehensive income | -139,483,000 | -84,845,000 | ||||
Retained earnings | -472,945,000 | -527,605,000 | ||||
Total shareholders' equity | -2,862,112,000 | -2,860,279,000 | ||||
Total liabilities and shareholders' equity | -2,873,793,000 | -2,870,369,000 | ||||
Platinum Holdings [Member] | ||||||
ASSETS | ||||||
Total investments | 0 | 0 | ||||
Investment in subsidiaries | 1,627,917,000 | 1,658,425,000 | ||||
Cash and cash equivalents | 113,773,000 | 88,402,000 | 70,604,000 | 47,791,000 | ||
Reinsurance assets | 0 | 0 | ||||
Inter-company receivables | 11,246,000 | 9,739,000 | ||||
Other assets | 2,253,000 | 2,135,000 | ||||
Total assets | 1,755,189,000 | 1,758,701,000 | ||||
Liabilities | ||||||
Reinsurance liabilities | 0 | 0 | ||||
Debt obligations | 0 | 0 | ||||
Inter-company payables | 0 | 0 | ||||
Other liabilities | 17,164,000 | 11,994,000 | ||||
Total liabilities | 17,164,000 | 11,994,000 | ||||
Shareholders' Equity | ||||||
Common shares | 248,000 | 281,000 | ||||
Additional paid-in capital | 2,415,000 | 10,711,000 | ||||
Accumulated other comprehensive income | 92,689,000 | 48,084,000 | ||||
Retained earnings | 1,642,673,000 | 1,687,631,000 | ||||
Total shareholders' equity | 1,738,025,000 | 1,746,707,000 | ||||
Total liabilities and shareholders' equity | 1,755,189,000 | 1,758,701,000 | ||||
Platinum Finance [Member] | ||||||
ASSETS | ||||||
Total investments | 45,085,000 | 114,000 | ||||
Investment in subsidiaries | 595,769,000 | 610,679,000 | ||||
Cash and cash equivalents | 248,130,000 | 230,818,000 | 152,122,000 | 108,260,000 | ||
Reinsurance assets | 0 | 0 | ||||
Inter-company receivables | 0 | 0 | ||||
Other assets | 1,158,000 | 1,290,000 | ||||
Total assets | 890,142,000 | 842,901,000 | ||||
Liabilities | ||||||
Reinsurance liabilities | 0 | 0 | ||||
Debt obligations | 250,000,000 | 250,000,000 | ||||
Inter-company payables | 31,000 | 39,000 | ||||
Other liabilities | 1,685,000 | 1,687,000 | ||||
Total liabilities | 251,716,000 | 251,726,000 | ||||
Shareholders' Equity | ||||||
Common shares | 0 | 0 | ||||
Additional paid-in capital | 216,038,000 | 215,420,000 | ||||
Accumulated other comprehensive income | 23,398,000 | 18,382,000 | ||||
Retained earnings | 398,990,000 | 357,373,000 | ||||
Total shareholders' equity | 638,426,000 | 591,175,000 | ||||
Total liabilities and shareholders' equity | 890,142,000 | 842,901,000 | ||||
Non-Guarantor Subsidiaries [Member] | ||||||
ASSETS | ||||||
Total investments | 1,827,969,000 | [1] | 2,027,830,000 | [1] | ||
Investment in subsidiaries | 638,426,000 | [1] | 591,175,000 | [1] | ||
Cash and cash equivalents | 1,073,081,000 | [1] | 1,145,198,000 | [1] | 1,497,669,000 | 636,459,000 |
Reinsurance assets | 247,495,000 | [1] | 290,887,000 | [1] | ||
Inter-company receivables | 435,000 | [1] | 351,000 | [1] | ||
Other assets | 128,145,000 | [1] | 137,211,000 | [1] | ||
Total assets | 3,915,551,000 | [1] | 4,192,652,000 | [1] | ||
Liabilities | ||||||
Reinsurance liabilities | 1,597,304,000 | [1] | 1,876,456,000 | [1] | ||
Debt obligations | 0 | [1] | 0 | [1] | ||
Inter-company payables | 11,650,000 | [1] | 10,051,000 | [1] | ||
Other liabilities | 82,911,000 | [1] | 37,041,000 | [1] | ||
Total liabilities | 1,691,865,000 | [1] | 1,923,548,000 | [1] | ||
Shareholders' Equity | ||||||
Common shares | 8,000,000 | [1] | 8,000,000 | [1] | ||
Additional paid-in capital | 2,025,646,000 | [1] | 2,024,409,000 | [1] | ||
Accumulated other comprehensive income | 116,085,000 | [1] | 66,463,000 | [1] | ||
Retained earnings | 73,955,000 | [1] | 170,232,000 | [1] | ||
Total shareholders' equity | 2,223,686,000 | [1] | 2,269,104,000 | [1] | ||
Total liabilities and shareholders' equity | 3,915,551,000 | [1] | 4,192,652,000 | [1] | ||
Financial Guarantee [Member] | Debt Obligations [Member] | ||||||
Guarantor Obligations [Line Items] | ||||||
Guarantee amount | $250,000,000 | |||||
[1] | Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. |
Condensed_Consolidating_Financ3
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Revenue: | ||||||||||||||
Net premiums earned | $126,075 | $129,463 | $124,825 | $126,273 | $148,267 | $135,360 | $142,933 | $126,853 | $506,636 | $553,413 | $566,496 | |||
Net investment income (expense) | 16,561 | 17,523 | 17,645 | 17,692 | 17,936 | 17,758 | 17,808 | 18,544 | 69,421 | 72,046 | 99,947 | |||
Net realized gains (losses) on investments | 764 | 3,109 | -596 | -515 | -778 | -306 | 11,686 | 13,318 | 2,762 | 23,920 | 88,754 | |||
Net impairment losses on investments | -840 | -2,033 | -3,031 | |||||||||||
Other income (expense) | 3,180 | 3,477 | -239 | |||||||||||
Total revenue | 581,159 | 650,823 | 751,927 | |||||||||||
Expenses: | ||||||||||||||
Net losses and loss adjustment expenses | 39,849 | 66,178 | 50,865 | 26,509 | 46,639 | 44,142 | 62,667 | 13,998 | 183,401 | 167,446 | 183,660 | |||
Net acquisition expenses | 30,413 | 28,042 | 27,848 | 27,501 | 32,560 | 30,675 | 30,313 | 30,219 | 113,804 | 123,767 | 115,437 | |||
Operating expenses | 24,985 | 18,607 | 21,434 | 18,283 | 23,019 | 20,672 | 19,718 | 19,305 | 83,309 | 82,714 | 80,453 | |||
Net foreign currency exchange losses (gains) | -512 | -234 | 1,055 | |||||||||||
Interest expense | 19,155 | 19,125 | 19,098 | |||||||||||
Total expenses | 399,157 | 392,818 | 399,703 | |||||||||||
Income (loss) before income taxes | 182,002 | 258,005 | 352,224 | |||||||||||
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 | |||||||||||
Income (loss) before equity in earnings of subsidiaries | 164,768 | 223,278 | 327,228 | |||||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||||
Net income (loss) | 35,728 | 29,125 | 36,180 | 63,735 | 48,623 | 38,285 | 49,854 | 86,516 | 164,768 | 223,278 | 327,228 | |||
Consolidating Adjustments [Member] | ||||||||||||||
Revenue: | ||||||||||||||
Net premiums earned | 0 | 0 | 0 | |||||||||||
Net investment income (expense) | 0 | 0 | 0 | |||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Other income (expense) | 0 | 0 | 0 | |||||||||||
Total revenue | 0 | 0 | 0 | |||||||||||
Expenses: | ||||||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | |||||||||||
Net acquisition expenses | 0 | 0 | 0 | |||||||||||
Operating expenses | 0 | 0 | 0 | |||||||||||
Net foreign currency exchange losses (gains) | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Total expenses | 0 | 0 | 0 | |||||||||||
Income (loss) before income taxes | 0 | 0 | 0 | |||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||
Income (loss) before equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||||
Equity in earnings of subsidiaries | -284,341 | -400,156 | -469,925 | |||||||||||
Net income (loss) | -284,341 | -400,156 | -469,925 | |||||||||||
Platinum Holdings [Member] | ||||||||||||||
Revenue: | ||||||||||||||
Net premiums earned | 0 | 0 | 0 | |||||||||||
Net investment income (expense) | 34 | 24 | 10 | |||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Other income (expense) | 5,672 | 6,737 | 5,481 | |||||||||||
Total revenue | 5,706 | 6,761 | 5,491 | |||||||||||
Expenses: | ||||||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | |||||||||||
Net acquisition expenses | 0 | 0 | 0 | |||||||||||
Operating expenses | 29,206 | 26,313 | 24,733 | |||||||||||
Net foreign currency exchange losses (gains) | 0 | 0 | 0 | |||||||||||
Interest expense | 0 | 0 | 0 | |||||||||||
Total expenses | 29,206 | 26,313 | 24,733 | |||||||||||
Income (loss) before income taxes | -23,500 | -19,552 | -19,242 | |||||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||||
Income (loss) before equity in earnings of subsidiaries | -23,500 | -19,552 | -19,242 | |||||||||||
Equity in earnings of subsidiaries | 188,268 | 242,830 | 346,470 | |||||||||||
Net income (loss) | 164,768 | 223,278 | 327,228 | |||||||||||
Platinum Finance [Member] | ||||||||||||||
Revenue: | ||||||||||||||
Net premiums earned | 0 | 0 | 0 | |||||||||||
Net investment income (expense) | -186 | -85 | -24 | |||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Other income (expense) | 0 | 4 | 3 | |||||||||||
Total revenue | -186 | -81 | -21 | |||||||||||
Expenses: | ||||||||||||||
Net losses and loss adjustment expenses | 0 | 0 | 0 | |||||||||||
Net acquisition expenses | 0 | 0 | 0 | |||||||||||
Operating expenses | 192 | 145 | 233 | |||||||||||
Net foreign currency exchange losses (gains) | 0 | 0 | 0 | |||||||||||
Interest expense | 19,155 | 19,125 | 19,098 | |||||||||||
Total expenses | 19,347 | 19,270 | 19,331 | |||||||||||
Income (loss) before income taxes | -19,533 | -19,351 | -19,352 | |||||||||||
Income tax expense (benefit) | -6,696 | -6,307 | -6,477 | |||||||||||
Income (loss) before equity in earnings of subsidiaries | -12,837 | -13,044 | -12,875 | |||||||||||
Equity in earnings of subsidiaries | 54,455 | 85,185 | 68,165 | |||||||||||
Net income (loss) | 41,618 | 72,141 | 55,290 | |||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||
Revenue: | ||||||||||||||
Net premiums earned | 506,636 | [1] | 553,413 | [1] | 566,496 | [1] | ||||||||
Net investment income (expense) | 69,573 | [1] | 72,107 | [1] | 99,961 | [1] | ||||||||
Net realized gains (losses) on investments | 2,762 | [1] | 23,920 | [1] | 88,754 | [1] | ||||||||
Net impairment losses on investments | -840 | [1] | -2,033 | [1] | -3,031 | [1] | ||||||||
Other income (expense) | -2,492 | [1] | -3,264 | [1] | -5,723 | [1] | ||||||||
Total revenue | 575,639 | [1] | 644,143 | [1] | 746,457 | [1] | ||||||||
Expenses: | ||||||||||||||
Net losses and loss adjustment expenses | 183,401 | [1] | 167,446 | [1] | 183,660 | [1] | ||||||||
Net acquisition expenses | 113,804 | [1] | 123,767 | [1] | 115,437 | [1] | ||||||||
Operating expenses | 53,911 | [1] | 56,256 | [1] | 55,487 | [1] | ||||||||
Net foreign currency exchange losses (gains) | -512 | [1] | -234 | [1] | 1,055 | [1] | ||||||||
Interest expense | 0 | [1] | 0 | [1] | 0 | [1] | ||||||||
Total expenses | 350,604 | [1] | 347,235 | [1] | 355,639 | [1] | ||||||||
Income (loss) before income taxes | 225,035 | [1] | 296,908 | [1] | 390,818 | [1] | ||||||||
Income tax expense (benefit) | 23,930 | [1] | 41,034 | [1] | 31,473 | [1] | ||||||||
Income (loss) before equity in earnings of subsidiaries | 201,105 | [1] | 255,874 | [1] | 359,345 | [1] | ||||||||
Equity in earnings of subsidiaries | 41,618 | [1] | 72,141 | [1] | 55,290 | [1] | ||||||||
Net income (loss) | $242,723 | [1] | $328,015 | [1] | $414,635 | [1] | ||||||||
[1] | Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. |
Condensed_Consolidating_Financ4
Condensed Consolidating Financial Information - Condensed Consolidating Statement Of Comprehensive Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Comprehensive Income (Loss) [Abstract] | ||||||||||||||
Net income (loss) | $35,728 | $29,125 | $36,180 | $63,735 | $48,623 | $38,285 | $49,854 | $86,516 | $164,768 | $223,278 | $327,228 | |||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | -991 | -631 | 211 | |||||||||||
Change in net unrealized gains and losses on all other securities | 52,828 | -76,152 | 77,652 | |||||||||||
Total change in net unrealized gains and losses | 51,837 | -76,783 | 77,863 | |||||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | ||||||||||||||
Net realized gains (losses) on investments | -5,372 | -27,243 | -89,780 | |||||||||||
Net impairment losses on investments | 840 | 2,033 | 3,031 | |||||||||||
Total reclassifications to net income (loss) | -4,532 | -25,210 | -86,749 | |||||||||||
Other comprehensive income (loss) before income taxes | 47,305 | -101,993 | -8,886 | |||||||||||
Income tax (expense) benefit | -2,700 | 12,387 | -59 | |||||||||||
Other comprehensive income (loss) | 44,605 | -89,606 | -8,945 | |||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||||
Comprehensive income (loss) | 209,373 | 133,672 | 318,283 | |||||||||||
Consolidating Adjustments [Member] | ||||||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||||||
Net income (loss) | -284,341 | -400,156 | -469,925 | |||||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | 0 | 0 | 0 | |||||||||||
Change in net unrealized gains and losses on all other securities | 0 | 0 | 0 | |||||||||||
Total change in net unrealized gains and losses | 0 | 0 | 0 | |||||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | ||||||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Total reclassifications to net income (loss) | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) before income taxes | 0 | 0 | 0 | |||||||||||
Income tax (expense) benefit | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | -54,638 | 135,612 | 8,723 | |||||||||||
Comprehensive income (loss) | -338,979 | -264,544 | -461,202 | |||||||||||
Platinum Holdings [Member] | ||||||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||||||
Net income (loss) | 164,768 | 223,278 | 327,228 | |||||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | 0 | 0 | 0 | |||||||||||
Change in net unrealized gains and losses on all other securities | 0 | 0 | 0 | |||||||||||
Total change in net unrealized gains and losses | 0 | 0 | 0 | |||||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | ||||||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Total reclassifications to net income (loss) | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) before income taxes | 0 | 0 | 0 | |||||||||||
Income tax (expense) benefit | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 44,605 | -89,606 | -8,945 | |||||||||||
Comprehensive income (loss) | 209,373 | 133,672 | 318,283 | |||||||||||
Platinum Finance [Member] | ||||||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||||||
Net income (loss) | 41,618 | 72,141 | 55,290 | |||||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | 0 | 0 | 0 | |||||||||||
Change in net unrealized gains and losses on all other securities | -2 | -2 | -6 | |||||||||||
Total change in net unrealized gains and losses | -2 | -2 | -6 | |||||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | ||||||||||||||
Net realized gains (losses) on investments | 0 | 0 | 0 | |||||||||||
Net impairment losses on investments | 0 | 0 | 0 | |||||||||||
Total reclassifications to net income (loss) | 0 | 0 | 0 | |||||||||||
Other comprehensive income (loss) before income taxes | -2 | -2 | -6 | |||||||||||
Income tax (expense) benefit | 1 | 0 | 2 | |||||||||||
Other comprehensive income (loss) | -1 | -2 | -4 | |||||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 5,017 | -23,002 | 113 | |||||||||||
Comprehensive income (loss) | 46,634 | 49,137 | 55,399 | |||||||||||
Non-Guarantor Subsidiaries [Member] | ||||||||||||||
Comprehensive Income (Loss) [Abstract] | ||||||||||||||
Net income (loss) | 242,723 | [1] | 328,015 | [1] | 414,635 | [1] | ||||||||
Other comprehensive income (loss) on available-for-sale securities before reclassifications: | ||||||||||||||
Change in net unrealized gains and losses on securities with other-than-temporary impairments recorded | -991 | [1] | -631 | [1] | 211 | [1] | ||||||||
Change in net unrealized gains and losses on all other securities | 52,830 | [1] | -76,150 | [1] | 77,658 | [1] | ||||||||
Total change in net unrealized gains and losses | 51,839 | [1] | -76,781 | [1] | 77,869 | [1] | ||||||||
Reclassifications from accumulated other comprehensive income, pre-tax [Abstract] | ||||||||||||||
Net realized gains (losses) on investments | -5,372 | [1] | -27,243 | [1] | -89,780 | [1] | ||||||||
Net impairment losses on investments | 840 | [1] | 2,033 | [1] | 3,031 | [1] | ||||||||
Total reclassifications to net income (loss) | -4,532 | [1] | -25,210 | [1] | -86,749 | [1] | ||||||||
Other comprehensive income (loss) before income taxes | 47,307 | [1] | -101,991 | [1] | -8,880 | [1] | ||||||||
Income tax (expense) benefit | -2,701 | [1] | 12,387 | [1] | -61 | [1] | ||||||||
Other comprehensive income (loss) | 44,606 | [1] | -89,604 | [1] | -8,941 | [1] | ||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 5,016 | [1] | -23,004 | [1] | 109 | [1] | ||||||||
Comprehensive income (loss) | $292,345 | [1] | $215,407 | [1] | $405,803 | [1] | ||||||||
[1] | Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. |
Condensed_Consolidating_Financ5
Condensed Consolidating Financial Information - Condensed Consolidating Statement of Cash Flows (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Condensed Cash Flow Statement, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | $15,227 | ($56,562) | ($165,337) | ||
Proceeds from the sales of: | |||||
Fixed maturity available-for-sale securities | 88,629 | 203,571 | 747,755 | ||
Short-term investments | 6,613 | 11,857 | 49,447 | ||
Proceeds from maturities or paydowns of: | |||||
Fiixed maturity available-for-sale securities | 130,506 | 202,136 | 280,122 | ||
Short-term investments | 126,795 | 259,076 | 707,756 | ||
Acquisitions of: | |||||
Fixed maturity available-for-sale securities | -100,026 | -406,078 | -233,923 | ||
Short-term investments | -66,036 | -165,136 | -331,757 | ||
Acquisitions of furniture, equipment and other assets | 0 | -6,890 | 0 | ||
Dividends from subsidiaries | 0 | 0 | 0 | ||
Net cash provided by (used in) investing activities | 186,481 | 98,536 | 1,219,400 | ||
Financing Activities: | |||||
Dividends paid to common shareholders | -8,329 | -9,434 | -10,747 | ||
Repurchase of common shares | -215,684 | -303,294 | -115,702 | ||
Proceeds from share-based compensation, including income tax benefits | 1,013 | 24,376 | 4,537 | ||
Net cash provided by (used in) financing activities | -223,000 | -288,352 | -121,912 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | -8,142 | -9,599 | -4,266 | ||
Net increase (decrease) in cash and cash equivalents | -29,434 | -255,977 | 927,885 | ||
Cash and cash equivalents at beginning of year | 1,464,418 | 1,720,395 | 792,510 | ||
Cash and cash equivalents at end of year | 1,434,984 | 1,464,418 | 1,720,395 | ||
Consolidating Adjustments [Member] | |||||
Condensed Cash Flow Statement, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | -619 | -1,683 | 0 | ||
Proceeds from the sales of: | |||||
Fixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Proceeds from maturities or paydowns of: | |||||
Fiixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of: | |||||
Fixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of furniture, equipment and other assets | 0 | ||||
Dividends from subsidiaries | -339,000 | -408,300 | -207,900 | ||
Net cash provided by (used in) investing activities | -339,000 | -408,300 | -207,900 | ||
Financing Activities: | |||||
Dividends paid to common shareholders | 339,000 | 408,300 | 207,900 | ||
Repurchase of common shares | 0 | 0 | 0 | ||
Proceeds from share-based compensation, including income tax benefits | 619 | 1,683 | 0 | ||
Net cash provided by (used in) financing activities | 339,619 | 409,983 | 207,900 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 0 | 0 | 0 | ||
Cash and cash equivalents at beginning of year | 0 | 0 | 0 | ||
Cash and cash equivalents at end of year | 0 | 0 | 0 | ||
Platinum Holdings [Member] | |||||
Condensed Cash Flow Statement, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | -15,010 | -9,510 | -10,275 | ||
Proceeds from the sales of: | |||||
Fixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Proceeds from maturities or paydowns of: | |||||
Fiixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of: | |||||
Fixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of furniture, equipment and other assets | 0 | -957 | 0 | ||
Dividends from subsidiaries | 264,000 | 318,300 | 155,000 | ||
Net cash provided by (used in) investing activities | 264,000 | 317,343 | 155,000 | ||
Financing Activities: | |||||
Dividends paid to common shareholders | -8,329 | -9,434 | -10,747 | ||
Repurchase of common shares | -215,684 | -303,294 | -115,702 | ||
Proceeds from share-based compensation, including income tax benefits | 394 | 22,693 | 4,537 | ||
Net cash provided by (used in) financing activities | -223,619 | -290,035 | -121,912 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 25,371 | 17,798 | 22,813 | ||
Cash and cash equivalents at beginning of year | 88,402 | 70,604 | 47,791 | ||
Cash and cash equivalents at end of year | 113,773 | 88,402 | 70,604 | ||
Platinum Finance [Member] | |||||
Condensed Cash Flow Statement, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | -12,703 | -11,368 | -9,123 | ||
Proceeds from the sales of: | |||||
Fixed maturity available-for-sale securities | 0 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Proceeds from maturities or paydowns of: | |||||
Fiixed maturity available-for-sale securities | 41 | 64 | 85 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of: | |||||
Fixed maturity available-for-sale securities | -45,026 | 0 | 0 | ||
Short-term investments | 0 | 0 | 0 | ||
Acquisitions of furniture, equipment and other assets | 0 | ||||
Dividends from subsidiaries | 75,000 | 90,000 | 52,900 | ||
Net cash provided by (used in) investing activities | 30,015 | 90,064 | 52,985 | ||
Financing Activities: | |||||
Dividends paid to common shareholders | 0 | 0 | 0 | ||
Repurchase of common shares | 0 | 0 | 0 | ||
Proceeds from share-based compensation, including income tax benefits | 0 | 0 | 0 | ||
Net cash provided by (used in) financing activities | 0 | 0 | 0 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | 0 | 0 | 0 | ||
Net increase (decrease) in cash and cash equivalents | 17,312 | 78,696 | 43,862 | ||
Cash and cash equivalents at beginning of year | 230,818 | 152,122 | 108,260 | ||
Cash and cash equivalents at end of year | 248,130 | 230,818 | 152,122 | ||
Non-Guarantor Subsidiaries [Member] | |||||
Condensed Cash Flow Statement, Captions [Line Items] | |||||
Net cash provided by (used in) operating activities | 43,559 | -34,001 | -145,939 | ||
Proceeds from the sales of: | |||||
Fixed maturity available-for-sale securities | 88,629 | 203,571 | 747,755 | ||
Short-term investments | 6,613 | 11,857 | 49,447 | ||
Proceeds from maturities or paydowns of: | |||||
Fiixed maturity available-for-sale securities | 130,465 | 202,072 | 280,037 | ||
Short-term investments | 126,795 | 259,076 | 707,756 | ||
Acquisitions of: | |||||
Fixed maturity available-for-sale securities | -55,000 | -406,078 | -233,923 | ||
Short-term investments | -66,036 | -165,136 | -331,757 | ||
Acquisitions of furniture, equipment and other assets | -5,933 | ||||
Dividends from subsidiaries | 0 | 0 | 0 | ||
Net cash provided by (used in) investing activities | 231,466 | 99,429 | 1,219,315 | ||
Financing Activities: | |||||
Dividends paid to common shareholders | -339,000 | -408,300 | -207,900 | ||
Repurchase of common shares | 0 | 0 | 0 | ||
Proceeds from share-based compensation, including income tax benefits | 0 | 0 | 0 | ||
Net cash provided by (used in) financing activities | -339,000 | -408,300 | -207,900 | ||
Effect of foreign currency exchange rate changes on cash and cash equivalents | -8,142 | -9,599 | -4,266 | ||
Net increase (decrease) in cash and cash equivalents | -72,117 | -352,471 | 861,210 | ||
Cash and cash equivalents at beginning of year | 1,145,198 | [1] | 1,497,669 | 636,459 | |
Cash and cash equivalents at end of year | $1,073,081 | [1] | $1,145,198 | [1] | $1,497,669 |
[1] | Amounts represent an aggregation of the non-guarantor subsidiaries and exclude consolidating adjustments. |
Schedule_I_Details
Schedule I (Details) (USD $) | Dec. 31, 2014 | |
In Thousands, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $1,764,941 | [1] |
Fair Value | 1,873,054 | |
Amount at which shown in Balance Sheet | 1,873,054 | |
U.S. Government and government agencies and authorities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 136,919 | [1] |
Fair Value | 138,812 | |
Amount at which shown in Balance Sheet | 138,812 | |
States, municipalities and political subdivisions [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,099,214 | [1] |
Fair Value | 1,187,918 | |
Amount at which shown in Balance Sheet | 1,187,918 | |
Non-U.S. governments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 112,741 | [1] |
Fair Value | 115,651 | |
Amount at which shown in Balance Sheet | 115,651 | |
Non-U.S. corporate [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 46,150 | [1] |
Fair Value | 47,698 | |
Amount at which shown in Balance Sheet | 47,698 | |
Public utilities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 72,111 | [1] |
Fair Value | 75,593 | |
Amount at which shown in Balance Sheet | 75,593 | |
All other corporate [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 297,806 | [1] |
Fair Value | 307,382 | |
Amount at which shown in Balance Sheet | 307,382 | |
Total fixed maturity securities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,764,941 | [1] |
Fair Value | 1,873,054 | |
Amount at which shown in Balance Sheet | 1,873,054 | |
Short-term investments [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 0 | [1] |
Fair Value | 0 | |
Amount at which shown in Balance Sheet | $0 | |
[1] | Original cost of fixed maturities securities is reduced by repayments and other-than-temporary-impairment changes and adjusted for amortization of premiums or accretion of discounts. |
Schedule_II_Details
Schedule II (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
ASSETS | ||||||||||||
Investment in subsidiaries | $0 | $0 | $0 | $0 | ||||||||
Cash and cash equivalents | 1,434,984 | 1,464,418 | 1,434,984 | 1,464,418 | 1,720,395 | |||||||
Inter-company receivables | 0 | 0 | 0 | 0 | ||||||||
Other assets | 131,556 | 140,636 | 131,556 | 140,636 | ||||||||
Total assets | 3,687,089 | 3,923,885 | 3,687,089 | 3,923,885 | ||||||||
Liabilities | ||||||||||||
Other liabilities | 101,760 | 50,722 | 101,760 | 50,722 | ||||||||
Total liabilities | 1,949,064 | 2,177,178 | 1,949,064 | 2,177,178 | ||||||||
Shareholders' equity | ||||||||||||
Common shares, $0.01 par value, 200,000,000 shares authorized, 24,840,539 and 28,142,977 shares issued and outstanding, respectively | 248 | 281 | 248 | 281 | ||||||||
Additional paid-in capital | 2,415 | 10,711 | 2,415 | 10,711 | ||||||||
Accumulated other comprehensive income | 92,689 | 48,084 | 92,689 | 48,084 | 137,690 | 146,635 | ||||||
Retained earnings | 1,642,673 | 1,687,631 | 1,642,673 | 1,687,631 | ||||||||
Total shareholders' equity | 1,738,025 | 1,746,707 | 1,738,025 | 1,746,707 | 1,894,534 | |||||||
Total liabilities and shareholders' equity | 3,687,089 | 3,923,885 | 3,687,089 | 3,923,885 | ||||||||
Common shares, par value (in dollars per share) | $0.01 | $0.01 | $0.01 | $0.01 | ||||||||
Common shares, authorized (in shares) | 200,000,000 | 200,000,000 | 200,000,000 | 200,000,000 | ||||||||
Common shares, issued (in shares) | 24,840,539 | 28,142,977 | 24,840,539 | 28,142,977 | ||||||||
Common shares, outstanding (in shares) | 24,840,539 | 28,142,977 | 24,840,539 | 28,142,977 | 32,722 | 35,526 | ||||||
Revenue: | ||||||||||||
Net investment income (expense) | 16,561 | 17,523 | 17,645 | 17,692 | 17,936 | 17,758 | 17,808 | 18,544 | 69,421 | 72,046 | 99,947 | |
Other income (expense) | 3,180 | 3,477 | -239 | |||||||||
Total revenue | 581,159 | 650,823 | 751,927 | |||||||||
Expenses: | ||||||||||||
Operating expenses | 24,985 | 18,607 | 21,434 | 18,283 | 23,019 | 20,672 | 19,718 | 19,305 | 83,309 | 82,714 | 80,453 | |
Net foreign currency exchange losses (gains) | -512 | -234 | 1,055 | |||||||||
Interest expense | 19,155 | 19,125 | 19,098 | |||||||||
Total expenses | 399,157 | 392,818 | 399,703 | |||||||||
Income (loss) before income taxes | 182,002 | 258,005 | 352,224 | |||||||||
Income tax expense (benefit) | 17,234 | 34,727 | 24,996 | |||||||||
Income (loss) before equity in earnings of subsidiaries | 164,768 | 223,278 | 327,228 | |||||||||
Equity in earnings of subsidiaries | 0 | 0 | 0 | |||||||||
Net income (loss) | 35,728 | 29,125 | 36,180 | 63,735 | 48,623 | 38,285 | 49,854 | 86,516 | 164,768 | 223,278 | 327,228 | |
Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||||||||||||
Net income (loss) | 35,728 | 29,125 | 36,180 | 63,735 | 48,623 | 38,285 | 49,854 | 86,516 | 164,768 | 223,278 | 327,228 | |
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 0 | 0 | 0 | |||||||||
Comprehensive income (loss) | 209,373 | 133,672 | 318,283 | |||||||||
Condensed Statements of Cash Flows [Abstract] | ||||||||||||
Net cash provided by (used in) operating activities | 15,227 | -56,562 | -165,337 | |||||||||
Investing Activities: | ||||||||||||
Dividends from subsidiaries | 0 | 0 | 0 | |||||||||
Acquisitions of furniture, equipment and other assets | 0 | -6,890 | 0 | |||||||||
Net cash provided by (used in) investing activities | 186,481 | 98,536 | 1,219,400 | |||||||||
Financing Activities: | ||||||||||||
Dividends paid to common shareholders | -8,329 | -9,434 | -10,747 | |||||||||
Repurchase of common shares | -215,684 | -303,294 | -115,702 | |||||||||
Proceeds from share-based compensation, including income tax benefits | 1,013 | 24,376 | 4,537 | |||||||||
Net cash provided by (used in) financing activities | -223,000 | -288,352 | -121,912 | |||||||||
Net increase (decrease) in cash and cash equivalents | -29,434 | -255,977 | 927,885 | |||||||||
Cash and cash equivalents at beginning of year | 1,464,418 | 1,720,395 | 1,464,418 | 1,720,395 | 792,510 | |||||||
Cash and cash equivalents at end of year | 1,434,984 | 1,464,418 | 1,434,984 | 1,464,418 | 1,720,395 | |||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Income taxes paid, net of refunds | 7,782 | 24,371 | 13,685 | |||||||||
Interest paid | 18,750 | 18,750 | 18,750 | |||||||||
Platinum Holdings [Member] | ||||||||||||
ASSETS | ||||||||||||
Investment in subsidiaries | 1,627,917 | 1,658,425 | 1,627,917 | 1,658,425 | ||||||||
Cash and cash equivalents | 113,773 | 88,402 | 113,773 | 88,402 | 70,604 | |||||||
Inter-company receivables | 11,246 | 9,739 | 11,246 | 9,739 | ||||||||
Other assets | 2,253 | 2,135 | 2,253 | 2,135 | ||||||||
Total assets | 1,755,189 | 1,758,701 | 1,755,189 | 1,758,701 | ||||||||
Liabilities | ||||||||||||
Other liabilities | 17,164 | 11,994 | 17,164 | 11,994 | ||||||||
Total liabilities | 17,164 | 11,994 | 17,164 | 11,994 | ||||||||
Shareholders' equity | ||||||||||||
Common shares, $0.01 par value, 200,000,000 shares authorized, 24,840,539 and 28,142,977 shares issued and outstanding, respectively | 248 | 281 | 248 | 281 | ||||||||
Additional paid-in capital | 2,415 | 10,711 | 2,415 | 10,711 | ||||||||
Accumulated other comprehensive income | 92,689 | 48,084 | 92,689 | 48,084 | ||||||||
Retained earnings | 1,642,673 | 1,687,631 | 1,642,673 | 1,687,631 | ||||||||
Total shareholders' equity | 1,738,025 | 1,746,707 | 1,738,025 | 1,746,707 | ||||||||
Total liabilities and shareholders' equity | 1,755,189 | 1,758,701 | 1,755,189 | 1,758,701 | ||||||||
Revenue: | ||||||||||||
Net investment income (expense) | 34 | 24 | 10 | |||||||||
Other income (expense) | 5,672 | 6,737 | 5,481 | |||||||||
Total revenue | 5,706 | 6,761 | 5,491 | |||||||||
Expenses: | ||||||||||||
Operating expenses | 29,206 | 26,313 | 24,733 | |||||||||
Net foreign currency exchange losses (gains) | 0 | 0 | 0 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Total expenses | 29,206 | 26,313 | 24,733 | |||||||||
Income (loss) before income taxes | -23,500 | -19,552 | -19,242 | |||||||||
Income tax expense (benefit) | 0 | 0 | 0 | |||||||||
Income (loss) before equity in earnings of subsidiaries | -23,500 | -19,552 | -19,242 | |||||||||
Equity in earnings of subsidiaries | 188,268 | 242,830 | 346,470 | |||||||||
Net income (loss) | 164,768 | 223,278 | 327,228 | |||||||||
Condensed Statements of Comprehensive Income (Loss) [Abstract] | ||||||||||||
Net income (loss) | 164,768 | 223,278 | 327,228 | |||||||||
Other comprehensive income (loss) due to change in accumulated other comprehensive income (loss) of subsidiaries | 44,605 | -89,606 | -8,945 | |||||||||
Comprehensive income (loss) | 209,373 | 133,672 | 318,283 | |||||||||
Condensed Statements of Cash Flows [Abstract] | ||||||||||||
Net cash provided by (used in) operating activities | -15,010 | -9,510 | -10,275 | |||||||||
Investing Activities: | ||||||||||||
Dividends from subsidiaries | 264,000 | 318,300 | 155,000 | |||||||||
Acquisitions of furniture, equipment and other assets | 0 | -957 | 0 | |||||||||
Net cash provided by (used in) investing activities | 264,000 | 317,343 | 155,000 | |||||||||
Financing Activities: | ||||||||||||
Dividends paid to common shareholders | -8,329 | -9,434 | -10,747 | |||||||||
Repurchase of common shares | -215,684 | -303,294 | -115,702 | |||||||||
Proceeds from share-based compensation, including income tax benefits | 394 | 22,693 | 4,537 | |||||||||
Net cash provided by (used in) financing activities | -223,619 | -290,035 | -121,912 | |||||||||
Net increase (decrease) in cash and cash equivalents | 25,371 | 17,798 | 22,813 | |||||||||
Cash and cash equivalents at beginning of year | 88,402 | 70,604 | 88,402 | 70,604 | 47,791 | |||||||
Cash and cash equivalents at end of year | 113,773 | 88,402 | 113,773 | 88,402 | 70,604 | |||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Income taxes paid, net of refunds | 0 | 0 | 0 | |||||||||
Interest paid | $0 | $0 | $0 |
Schedule_III_Details
Schedule III (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred policy acquisition costs | $27,592,000 | $31,103,000 | $28,112,000 | |||
Net unpaid losses and loss adjustment expenses | 1,432,888,000 | 1,670,171,000 | 1,957,685,000 | |||
Net unearned premiums | 109,369,000 | 125,268,000 | 111,299,000 | |||
Net earned premium | 506,636,000 | 553,413,000 | 566,496,000 | |||
Net investment income | 69,421,000 | [1] | 72,046,000 | [1] | 99,947,000 | [1] |
Net losses and loss adjustment expenses incurred | 183,401,000 | 167,446,000 | 183,660,000 | |||
Amortization of deferred policy acquisition costs | 113,804,000 | [2] | 123,767,000 | [2] | 115,437,000 | [2] |
Other operating expenses | 54,419,000 | [3] | 55,486,000 | [3] | 55,182,000 | [3] |
Net written premiums | 492,068,000 | 567,121,000 | 565,000,000 | |||
Deferred policy acquisition costs amortized | 86,400,000 | 92,000,000 | 86,800,000 | |||
Corporate expenses not allocated to segments | 28,900,000 | 27,200,000 | 25,300,000 | |||
Property and Marine [Member] | ||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred policy acquisition costs | 4,709,000 | 6,111,000 | 4,216,000 | |||
Net unpaid losses and loss adjustment expenses | 256,061,000 | 357,973,000 | 557,481,000 | |||
Net unearned premiums | 19,326,000 | 23,553,000 | 16,222,000 | |||
Net earned premium | 211,640,000 | 222,010,000 | 253,604,000 | |||
Net losses and loss adjustment expenses incurred | 69,779,000 | 34,421,000 | 132,580,000 | |||
Amortization of deferred policy acquisition costs | 40,074,000 | [2] | 38,342,000 | [2] | 34,342,000 | [2] |
Other operating expenses | 31,087,000 | [3] | 30,898,000 | [3] | 31,140,000 | [3] |
Net written premiums | 207,867,000 | 229,507,000 | 256,182,000 | |||
Casualty [Member] | ||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred policy acquisition costs | 20,219,000 | 21,817,000 | 22,275,000 | |||
Net unpaid losses and loss adjustment expenses | 1,105,800,000 | 1,243,961,000 | 1,336,251,000 | |||
Net unearned premiums | 77,085,000 | 85,377,000 | 87,171,000 | |||
Net earned premium | 267,224,000 | 297,888,000 | 294,122,000 | |||
Net losses and loss adjustment expenses incurred | 95,080,000 | 115,888,000 | 43,763,000 | |||
Amortization of deferred policy acquisition costs | 66,404,000 | [2] | 71,648,000 | [2] | 68,987,000 | [2] |
Other operating expenses | 22,022,000 | [3] | 23,149,000 | [3] | 22,937,000 | [3] |
Net written premiums | 259,809,000 | 295,668,000 | 287,112,000 | |||
Finite Risk [Member] | ||||||
Supplementary Insurance Information, by Segment [Line Items] | ||||||
Deferred policy acquisition costs | 2,664,000 | 3,175,000 | 1,621,000 | |||
Net unpaid losses and loss adjustment expenses | 71,027,000 | 68,237,000 | 63,953,000 | |||
Net unearned premiums | 12,958,000 | 16,338,000 | 7,906,000 | |||
Net earned premium | 27,772,000 | 33,515,000 | 18,770,000 | |||
Net losses and loss adjustment expenses incurred | 18,542,000 | 17,137,000 | 7,317,000 | |||
Amortization of deferred policy acquisition costs | 7,326,000 | [2] | 13,777,000 | [2] | 12,108,000 | [2] |
Other operating expenses | 1,310,000 | [3] | 1,439,000 | [3] | 1,105,000 | [3] |
Net written premiums | $24,392,000 | $41,946,000 | $21,706,000 | |||
[1] | The Company does not manage its investments by segment and, accordingly, net investment income is not allocated to each segment. | |||||
[2] | Amounts represent the net acquisition expenses in the accompanying Consolidated Statements of Operations and include total deferred acquisition costs amortized of $86.4 million, $92.0 million and $86.8 million for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
[3] | Amounts exclude corporate expenses not allocated to segments of $28.9 million, $27.2 million, and $25.3 million for the years ended December 31, 2014, 2013 and 2012, respectively. |
Schedule_IV_Details
Schedule IV (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Premiums Written [Abstract] | |||
Direct amount | $0 | $0 | $0 |
Ceded to other companies | -17,059,000 | -12,640,000 | -4,724,000 |
Assumed from other companies | 509,127,000 | 579,761,000 | 569,724,000 |
Net amount | 492,068,000 | 567,121,000 | 565,000,000 |
Percentage of amount assumed to net | 103.50% | 102.20% | 100.80% |
Property and Marine [Member] | |||
Premiums Written [Abstract] | |||
Direct amount | 0 | 0 | 0 |
Ceded to other companies | 12,594,000 | 10,942,000 | 4,636,000 |
Assumed from other companies | 220,461,000 | 240,449,000 | 260,818,000 |
Net amount | 207,867,000 | 229,507,000 | 256,182,000 |
Percentage of amount assumed to net | 106.10% | 104.80% | 101.80% |
Casualty [Member] | |||
Premiums Written [Abstract] | |||
Direct amount | 0 | 0 | 0 |
Ceded to other companies | 4,465,000 | 1,698,000 | 88,000 |
Assumed from other companies | 264,274,000 | 297,366,000 | 287,200,000 |
Net amount | 259,809,000 | 295,668,000 | 287,112,000 |
Percentage of amount assumed to net | 101.70% | 100.60% | 100.00% |
Finite Risk [Member] | |||
Premiums Written [Abstract] | |||
Direct amount | 0 | 0 | 0 |
Ceded to other companies | 0 | 0 | 0 |
Assumed from other companies | 24,392,000 | 41,946,000 | 21,706,000 |
Net amount | $24,392,000 | $41,946,000 | $21,706,000 |
Percentage of amount assumed to net | 100.00% | 100.00% | 100.00% |