DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 10, 2014 | Jun. 30, 2013 |
DOCUMENT AND ENTITY INFORMATION [ABSTRACT] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Entity Registrant Name | 'AXIS CAPITAL HOLDINGS LTD | ' | ' |
Entity Central Index Key | '0001214816 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 112,059,576 | ' |
Entity Voluntary Filer | 'No | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Public Float | ' | ' | $5.10 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Fixed maturities, available for sale, at fair value (Amortized cost 2013: $11,987,146; 2012: $11,605,672) | $11,986,327 | $11,928,049 |
Equity securities, available for sale, at fair value (Cost 2013: $566,219; 2012: $608,306) | 701,987 | 666,548 |
Other investments, at fair value | 1,045,810 | 843,437 |
Short-term investments, at fair value and amortized cost | 46,212 | 108,860 |
Total investments | 13,780,336 | 13,546,894 |
Cash and cash equivalents | 923,326 | 759,817 |
Restricted cash and cash equivalents | 64,550 | 90,733 |
Accrued interest receivable | 97,132 | 97,220 |
Insurance and reinsurance premium balances receivable | 1,688,957 | 1,474,821 |
Reinsurance recoverable on unpaid and paid losses | 1,929,988 | 1,863,819 |
Deferred acquisition costs | 456,122 | 389,248 |
Prepaid reinsurance premiums | 330,261 | 315,676 |
Receivable for investments sold | 1,199 | 1,254 |
Goodwill and intangible assets | 89,528 | 97,493 |
Other assets | 273,385 | 215,369 |
Total assets | 19,634,784 | 18,852,344 |
Liabilities | ' | ' |
Reserve for losses and loss expenses | 9,582,140 | 9,058,731 |
Unearned premiums | 2,683,849 | 2,454,692 |
Insurance and reinsurance balances payable | 234,412 | 270,739 |
Senior notes | 995,855 | 995,245 |
Payable for investments purchased | 21,744 | 64,553 |
Other liabilities | 248,822 | 228,623 |
Total liabilities | 13,766,822 | 13,072,583 |
Shareholders' equity | ' | ' |
Preferred shares | 627,843 | 502,843 |
Common shares (2013: 174,134; 2012: 171,867 shares issued and 2013: 109,485; 2012: 117,920 shares outstanding) | 2,174 | 2,146 |
Additional paid-in capital | 2,240,125 | 2,179,034 |
Accumulated other comprehensive income | 117,825 | 362,622 |
Retained earnings | 5,062,706 | 4,497,789 |
Treasury shares, at cost (2013: 64,649; 2012: 53,947 shares) | -2,232,711 | -1,764,673 |
Total shareholders' equity attributable to AXIS Capital | 5,817,962 | 5,779,761 |
Noncontrolling interests | 50,000 | 0 |
Total shareholders' equity | 5,867,962 | 5,779,761 |
Total liabilities and shareholders' equity | $19,634,784 | $18,852,344 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Fixed maturities, available for sale, amortized cost | $11,987,146 | $11,605,672 |
Equity securities, available for sale, cost | 566,219 | 608,306 |
Short term investments, amortized cost | $46,212 | $108,860 |
Common shares, shares issued | 174,134 | 171,867 |
Common shares, shares outstanding | 109,485 | 117,920 |
Treasury shares, shares | 64,649 | 53,947 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' |
Net premiums earned | $3,707,065 | $3,415,463 | $3,314,961 |
Net investment income | 409,312 | 380,957 | 362,430 |
Other insurance related income | 4,424 | 2,676 | 2,396 |
Net realized investment gains: | ' | ' | ' |
Other-than-temporary impairment (OTTI) losses | -9,362 | -24,234 | -16,446 |
Non-credit portion of OTTI losses recognized in other comprehensive income | 0 | 0 | 585 |
Other net realized investment gains | 84,926 | 151,703 | 137,300 |
Total net realized investment gains | 75,564 | 127,469 | 121,439 |
Total revenues | 4,196,365 | 3,926,565 | 3,801,226 |
Expenses | ' | ' | ' |
Net losses and loss expenses | 2,134,195 | 2,096,028 | 2,675,052 |
Acquisition costs | 664,191 | 627,653 | 587,469 |
General and administrative expenses | 575,390 | 560,981 | 459,151 |
Foreign exchange losses (gains) | 26,143 | 29,512 | -44,582 |
Interest expense and financing costs | 61,979 | 61,863 | 62,598 |
Total expenses | 3,461,898 | 3,376,037 | 3,739,688 |
Income before income taxes | 734,467 | 550,528 | 61,538 |
Income tax expense | 7,002 | 3,287 | 15,233 |
Net income | 727,465 | 547,241 | 46,305 |
Preferred share dividends | 40,474 | 38,228 | 36,875 |
Loss on repurchase of preferred shares | 3,081 | 14,009 | 0 |
Net income available to common shareholders | $683,910 | $495,004 | $9,430 |
Net income per common share: | ' | ' | ' |
Basic net income | $6.02 | $4.05 | $0.08 |
Diluted net income | $5.93 | $4 | $0.07 |
Weighted average number of common shares outstanding - basic | 113,636 | 122,148 | 122,499 |
Weighted average number of common shares outstanding - diluted | 115,328 | 123,654 | 128,122 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $727,465 | $547,241 | $46,305 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Unrealized investment gains (losses) arising during the period | -161,832 | 348,510 | 74,297 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | -61,551 | -116,278 | -119,548 |
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment | -223,383 | 232,232 | -45,251 |
Non-credit portion of OTTI losses | 0 | 0 | -455 |
Foreign currency translation adjustment | -21,414 | 510 | -3,045 |
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 0 | 1,718 | 92 |
Total other comprehensive income (loss), net of tax | -244,797 | 234,460 | -48,659 |
Comprehensive income (loss) | $482,668 | $781,701 | ($2,354) |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $) | Total | Parent [Member] | Preferred shares [Member] | Common shares (par value) [Member] | Additional paid-in capital [Member] | Unrealized appreciation on available for sale investments, net of tax [Member] | Cumulative foreign currency translation adjustments, net of tax [Member] | Supplemental Executive Retirement Plans (SERPs) [Member] | Accumulated other comprehensive income [Member] | Retained earnings [Member] | Treasury shares, at cost [Member] | Noncontrolling interest [Member] |
In Thousands | ||||||||||||
Total shareholders' equity at Dec. 31, 2010 | ' | ' | $500,000 | $1,934 | $2,059,708 | $161,802 | $16,829 | ($1,810) | $176,821 | $4,267,608 | ($1,381,101) | ' |
Shares issued | ' | ' | 0 | 191 | 1,769 | ' | ' | ' | ' | ' | ' | ' |
Treasury shares reissued | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' |
Issue costs on newly issued preferred shares | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' |
Value of shares repurchased and retired during the period | ' | ' | 0 | ' | 0 | ' | ' | ' | ' | 0 | ' | ' |
Stock options exercised | ' | ' | ' | ' | 4,775 | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | 39,134 | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period, net of reclassification adjustment | -45,251 | ' | ' | ' | ' | -45,251 | ' | ' | ' | ' | ' | ' |
Non-credit portion of OTTI losses | -455 | ' | ' | ' | ' | -455 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -3,045 | ' | ' | ' | ' | ' | -3,045 | ' | ' | ' | ' | ' |
Net change in benefit plan assets and obligations recognized in equity | 92 | ' | ' | ' | ' | ' | ' | 92 | ' | ' | ' | ' |
Net income | 46,305 | ' | ' | ' | ' | ' | ' | ' | ' | 46,305 | ' | ' |
Preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -36,875 | ' | ' |
Common share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -121,646 | ' | ' |
Shares repurchased for treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -65,885 | ' |
Total shareholders' equity at Dec. 31, 2011 | 5,444,079 | 5,444,079 | 500,000 | 2,125 | 2,105,386 | 116,096 | 13,784 | -1,718 | 128,162 | 4,155,392 | -1,446,986 | 0 |
Shares issued | ' | ' | 400,000 | 21 | 2,582 | ' | ' | ' | ' | ' | ' | ' |
Treasury shares reissued | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | 0 | ' |
Issue costs on newly issued preferred shares | ' | ' | ' | ' | -6,456 | ' | ' | ' | ' | ' | ' | ' |
Value of shares repurchased and retired during the period | ' | ' | -397,157 | ' | 7,093 | ' | ' | ' | ' | -14,009 | ' | ' |
Stock options exercised | ' | ' | ' | ' | 2,517 | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | 67,912 | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period, net of reclassification adjustment | 232,232 | ' | ' | ' | ' | 232,232 | ' | ' | ' | ' | ' | ' |
Non-credit portion of OTTI losses | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | 510 | ' | ' | ' | ' | ' | 510 | ' | ' | ' | ' | ' |
Net change in benefit plan assets and obligations recognized in equity | 1,718 | ' | ' | ' | ' | ' | ' | 1,718 | ' | ' | ' | ' |
Net income | 547,241 | ' | ' | ' | ' | ' | ' | ' | ' | 547,241 | ' | ' |
Preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -38,228 | ' | ' |
Common share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -152,607 | ' | ' |
Shares repurchased for treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -317,687 | ' |
Total shareholders' equity at Dec. 31, 2012 | 5,779,761 | 5,779,761 | 502,843 | 2,146 | 2,179,034 | 348,328 | 14,294 | 0 | 362,622 | 4,497,789 | -1,764,673 | 0 |
Shares issued | ' | ' | 225,000 | 28 | 3,422 | ' | ' | ' | ' | ' | ' | ' |
Treasury shares reissued | ' | ' | ' | ' | -4,225 | ' | ' | ' | ' | ' | 4,225 | ' |
Issue costs on newly issued preferred shares | ' | ' | ' | ' | -6,551 | ' | ' | ' | ' | ' | ' | ' |
Value of shares repurchased and retired during the period | ' | ' | -100,000 | ' | 3,081 | ' | ' | ' | ' | -3,081 | ' | ' |
Stock options exercised | ' | ' | ' | ' | 16,889 | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation expense | ' | ' | ' | ' | 48,475 | ' | ' | ' | ' | ' | ' | ' |
Unrealized gains (losses) arising during the period, net of reclassification adjustment | -223,383 | ' | ' | ' | ' | -223,383 | ' | ' | ' | ' | ' | ' |
Non-credit portion of OTTI losses | 0 | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -21,414 | ' | ' | ' | ' | ' | -21,414 | ' | ' | ' | ' | ' |
Net change in benefit plan assets and obligations recognized in equity | 0 | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Net income | 727,465 | ' | ' | ' | ' | ' | ' | ' | ' | 727,465 | ' | ' |
Preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -40,474 | ' | ' |
Common share dividends | ' | ' | ' | ' | ' | ' | ' | ' | ' | -118,993 | ' | ' |
Shares repurchased for treasury | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -472,263 | ' |
Total shareholders' equity at Dec. 31, 2013 | $5,867,962 | $5,817,962 | $627,843 | $2,174 | $2,240,125 | $124,945 | ($7,120) | $0 | $117,825 | $5,062,706 | ($2,232,711) | $50,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $727,465 | $547,241 | $46,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Net realized investment gains | -75,564 | -127,469 | -121,439 |
Net realized and unrealized gains of other investments | -128,814 | -87,623 | -31,013 |
Amortization of fixed maturities | 139,667 | 135,297 | 93,356 |
Other amortization and depreciation | 23,272 | 13,821 | 16,905 |
Share-based compensation expense | 57,168 | 67,912 | 39,134 |
Changes in: | ' | ' | ' |
Accrued interest receivable | 88 | 1,126 | -1,982 |
Reinsurance recoverable balances | -66,169 | -93,490 | -192,782 |
Deferred acquisition costs | -66,874 | 18,279 | -48,227 |
Prepaid reinsurance premiums | -14,585 | -77,053 | -17,227 |
Reserve for loss and loss expenses | 523,409 | 633,686 | 1,392,670 |
Unearned premiums | 229,157 | 230 | 120,786 |
Insurance and reinsurance balances, net | -250,463 | 3,218 | -28,562 |
Other items | -789 | 85,442 | -77,782 |
Net cash provided by operating activities | 1,096,968 | 1,120,617 | 1,190,142 |
Cash flows from investing activities: | ' | ' | ' |
Fixed maturities | -12,230,274 | -13,513,143 | -15,472,001 |
Equity securities | -240,926 | -377,749 | -603,746 |
Other investments | -166,835 | -110,084 | -220,000 |
Short-term investments | -198,168 | -383,981 | -841,124 |
Proceeds from the sale of: | ' | ' | ' |
Fixed maturities | 10,261,256 | 11,144,351 | 13,754,436 |
Equity securities | 323,423 | 468,473 | 222,506 |
Other investments | 93,277 | 53,590 | 70,988 |
Short-term investments | 197,690 | 354,924 | 710,178 |
Proceeds from redemption of fixed maturities | 1,407,676 | 1,456,553 | 1,422,171 |
Proceeds from redemption of short-term investments | 61,715 | 69,751 | 151,216 |
Purchase of other assets | -24,304 | -35,322 | -42,193 |
Change in restricted cash and cash equivalents | 26,183 | 10,256 | 14,851 |
Net cash used in investing activities | -489,287 | -862,381 | -832,718 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from issuance of preferred shares | 218,449 | 393,544 | 0 |
Repurchase of preferred shares | -100,000 | -404,073 | 0 |
Repurchase of common shares | -472,263 | -317,687 | -65,885 |
Dividends paid - common shares | -118,426 | -120,487 | -206,455 |
Dividends paid - preferred shares | -39,193 | -38,228 | -36,875 |
Proceeds from issuance of common shares | 20,339 | 5,120 | 6,735 |
Sale of shares to noncontrolling interests | 50,000 | 0 | 0 |
Net cash used in financing activities | -441,094 | -481,811 | -302,480 |
Effect of exchange rate changes on foreign currency cash and cash equivalents | -3,078 | 1,543 | -2,610 |
Increase (decrease) in cash and cash equivalents | 163,509 | -222,032 | 52,334 |
Cash and cash equivalents - beginning of period | 759,817 | 981,849 | 929,515 |
Cash and cash equivalents - end of period | 923,326 | 759,817 | 981,849 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Income taxes paid | 22,472 | 10,897 | 23,853 |
Interest paid | $58,125 | $58,125 | $58,125 |
HISTORY
HISTORY | 12 Months Ended |
Dec. 31, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
HISTORY [Text Block] | ' |
AXIS Capital Holdings Limited (“AXIS Capital”) is the Bermuda-based holding company for the AXIS group of companies, collectively the “Company”. AXIS Capital was incorporated on December 9, 2002, under the laws of Bermuda. Through its subsidiaries and branches organized in Bermuda, the United States, Europe, Singapore, Canada, Australia and Latin America, AXIS Capital provides a broad range of (re)insurance products on a worldwide basis under two distinct global underwriting platforms, AXIS Insurance and AXIS Reinsurance. In these notes, the terms “we,” “us,” “our,” or the “Company” refer to AXIS Capital and its direct and indirect subsidiaries. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
SIGNIFICANT ACCOUNTING POLICIES [Text Block] | ' | |
Basis of Presentation | ||
These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of AXIS Capital, its wholly-owned subsidiaries, and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. All inter-company accounts and transactions have been eliminated. | ||
A VIE is an entity that either: (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. We are the primary beneficiary of a VIE if we have a controlling financial interest in the VIE, based on the following two characteristics: a) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE, and b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. | ||
Use of Estimates | ||
The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: | ||
• | reserve for losses and loss expenses; | |
• | reinsurance recoverable on unpaid losses, including the provision for uncollectible amounts; | |
• | gross and net premiums written and net premiums earned; | |
• | other-than-temporary impairments (“OTTI”) in the carrying value of available-for-sale investment securities; and | |
• | fair value measurements for our financial assets and liabilities. | |
Our significant accounting policies are: | ||
a) | Investments | |
Investments available for sale | ||
Our fixed maturities and equities classified as “available for sale” are reported at fair value at the balance sheet date. See Note 6 – Fair Value Measurements for additional information regarding the determination of fair value. The change in fair value (net unrealized gain or loss) on our available for sale investments, net of tax, is included as a separate component of accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. | ||
Net investment income includes interest and dividend income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of investments are recorded on a trade-date basis and realized gains/losses on sales of investments are determined based on the specific identification method. | ||
We recognize investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if any. The effective yield used to determine the amortization for fixed maturities subject to prepayment risk (e.g. asset-backed, loan-backed and other structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows. The adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. | ||
On a quarterly basis, we assess whether unrealized losses on available for sale investments represent impairments that are other than temporary. Several factors are considered in this assessment including, but not limited to: (i) the extent and duration of the decline, (ii) the reason for the decline (e.g. credit spread widening, credit event, foreign exchange rate movements), (iii) the historical and implied future volatility of the fair value, (iv) the financial condition and near-term prospects of the issuer and (v) the collateral structure and credit support of the security, if applicable. | ||
A fixed maturity is impaired when the fair value is below its amortized cost. For an impaired fixed maturity where we intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, the full amount of the impairment is charged to earnings and is included in net realized investment gains (losses). Where we intend to hold the impaired fixed maturity, we estimate the anticipated credit loss of the security and recognize only this portion of the impairment in earnings, with the remaining non-credit related balance of the impairment (i.e. related to interest rates, market conditions, etc.) recognized in AOCI. | ||
We impair an equity security in an unrealized loss position when we do not have the ability and intent to hold the security for a reasonable period of time to allow for a full recovery. The full impairment is charged to earnings and is included in net realized investment gains (losses). | ||
Upon recognition of an OTTI, the new cost basis for the security is the previous amortized cost for a fixed maturity or cost for an equity security less the OTTI recognized in earnings. The new cost basis is not adjusted for subsequent recoveries in fair value; except for fixed maturities whereby the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining life of the fixed maturity. | ||
Other investments | ||
We record other investments at fair value (see Note 6 – Fair Value Measurements), with both changes in fair value and realized gains/losses reported in net investment income. | ||
Short-term investments | ||
Short-term investments primarily comprise highly-liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. | ||
b) | Cash and cash equivalents | |
Cash equivalents include money-market funds and fixed interest deposits placed with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Our restricted cash balance primarily relates to funds held in trust in support of our obligations in regulatory jurisdictions where we operate as a non-admitted carrier. | ||
c) | Premiums and Acquisition Costs | |
Premiums | ||
Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract and are estimated based upon information received from ceding companies. For multi-year contracts where (re)insurance premiums are payable in annual installments, premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. However, premiums are normally recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the policy. The remaining annual premiums are included as written at each successive anniversary date within the multi-year term. | ||
Any subsequent differences arising on insurance and reinsurance premium estimates are recorded in the period they are determined. | ||
(Re)insurance premiums are earned evenly over the period during which we are exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. | ||
Reinstatement premiums are recognized and earned at the time a loss event occurs, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on our estimate of losses and loss adjustment expenses, which reflects management’s judgment, as described in Note 2(d) – Losses and Loss Expenses below. | ||
Premiums receivable balances are reviewed for impairment at least quarterly and an allowance is established for amounts considered uncollectible. The need for charge-off of any amounts previously reserved as uncollectible is assessed on a quarterly basis. | ||
Acquisition Costs | ||
Acquisition costs vary with and are directly related to the acquisition of (re)insurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Premiums receivable are presented net of applicable acquisition costs when contract terms provide for the right of offset. Acquisition costs are shown net of commissions earned on ceded reinsurance. Our net acquisition costs are deferred and charged to expense as the related premium is earned. | ||
Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of our deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. | ||
d) | Losses and Loss Expenses | |
Our reserve for losses and loss expenses represents an estimate of the unpaid portion of our ultimate liability for losses and loss expenses for (re)insured events that have occurred at or before the balance sheet date. The balance reflects both claims that have been reported to us (“case reserves”) and claims that have been incurred but not yet reported to us (“IBNR”). These amounts are reduced for estimated amounts of salvage and subrogation recoveries. | ||
We review our reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported from insureds and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Bornhuetter-Ferguson and Chain Ladder methods. Our estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and class of business. Our historical claims data is often supplemented with industry benchmarks when applying these methodologies. | ||
Any adjustments to our previous reserve for losses and loss expenses estimates are recognized in the period they are determined. While we believe that our reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the Consolidated Balance Sheets. | ||
e) | Reinsurance | |
In the normal course of business, we purchase reinsurance protection to limit our ultimate losses from catastrophic events and to reduce our loss aggregation risk. The premiums paid to our reinsurers (i.e. premiums ceded) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of the contracts in force. Reinstatement-related premiums ceded are recorded at the time a loss event occurs and our coverage limits for the remaining life of a contract are reinstated under pre-defined contract terms; such premiums are expensed over the remaining risk period. | ||
Reinsurance recoverable related to our case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance coverage to our individual case reserve estimates. Our estimate of reinsurance recoverable related to our IBNR reserves is generally developed as part of our loss reserving process. | ||
Our reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount we believe will ultimately not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. We apply case-specific provisions against certain recoveries that we deem unlikely to be collected in full. In addition, we use a default analysis to estimate our provision for uncollectible amounts on the remainder of the balance. | ||
The estimates of our reinsurance recoverable and the associated provision require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to amounts recognized in prior periods are reported in our net losses and loss expenses in the Consolidated Statements of Operations for the period when the adjustments were identified. The charge-off of amounts previously reserved as uncollectible is also considered on a case-by-case basis as part of this quarterly process. | ||
f) | Foreign Exchange | |
The Company’s reporting currency is the U.S. dollar. In translating the financial statements of our subsidiaries or branches where the functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates and revenues and expenses are converted using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in shareholders’ equity. | ||
In recording foreign currency transactions, revenue and expense items are converted to the relevant functional currency at the exchange rate prevailing at the transaction date. Assets and liabilities originating in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Operations, with the exception of those related to foreign-denominated available for sale investments. For these investments, exchange rate fluctuations represent an unrealized appreciation/depreciation in the value of the securities and are included in the related component of AOCI. | ||
g) | Share-Based Compensation | |
The Company is authorized to issue restricted stock awards and units, stock options and other equity-based awards to its employees and directors. The fair value of service-based awards is measured at the grant date, with the associated expense recognized on a straight-line basis over the service period. The fair value of performance-based awards ("PSUs") is measured at the grant date based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized on a straight-line basis over the applicable performance and vesting period. The compensation expense for PSUs is subject to a periodic review and adjustment taking into account actual performance of the Company. The fair value of the liability associated with cash-settled awards is re-measured at each balance sheet date, with the effects recognized as an increase or decrease to share-based compensation expense for the period. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation expense. | ||
h) | Derivative Instruments | |
Derivative Instruments not Designated as Hedging Instruments | ||
We may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of our overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. During 2013, we began to write derivative based risk management products designed to address weather and commodity price risks, with the objective of generating profits on a portfolio basis. From time to time we may also enter into (re)insurance contracts that meet the FASB’s definition of a derivative contract. | ||
We measure all derivative instruments at fair value (see Note 6 – Fair Value Measurements) and recognize them as either assets or liabilities in the Consolidated Balance Sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the Consolidated Statements of Operations. | ||
Derivative Instruments Designated as Hedging Instruments | ||
We may designate a currency derivative as a hedge of foreign exchange rate-related movements in the fair value of certain investment portfolios. This is referred to as a fair value hedge. Changes in the fair value of the designated fair value hedge, along with the changes in the fair value of the hedged asset attributable to the hedged risk, are recorded in net realized investment gains (losses) in the Consolidated Statements of Operations, along with any hedge ineffectiveness. | ||
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in value of the hedged item. Further, the hedge relationship must be designated and formally documented at the inception, detailing the particular risk management objective and strategy for the hedge, including the item and risk that is being hedged, the derivative that is being used, and how effectiveness will be assessed. We formally measure the hedge effectiveness at inception and on an ongoing basis. We evaluate the effectiveness on a retrospective and prospective basis, using the period-to-period dollar offset method. Using this method, if the hedge correlation is within the range of 80% to 125%, we consider the hedge effective and apply hedge accounting. Cash flows from derivative instruments designated as hedging instruments are presented as operating activities in the Consolidated Statements of Cash Flows. | ||
i) | Goodwill and Intangible Assets | |
We classify intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization, and (3) goodwill. | ||
We amortize intangible assets with finite lives over their estimated useful lives in proportion to the estimated economic benefits of the intangible assets. We also test these assets for impairment if circumstances indicate that the carrying value may not be fully recoverable. Such circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. If, as a result of such an evaluation, we determine that the carrying value of the finite-lived intangible assets is not recoverable, the value of the assets will be reduced to fair value with the difference being expensed in the Consolidated Statements of Operations. | ||
Our intangible assets with indefinite lives include licenses held by certain subsidiaries in various jurisdictions that allow such subsidiaries to write insurance and/or reinsurance business. These intangible assets are carried at or below estimated fair value and are tested annually for impairment, either qualitatively or quantitatively, and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. | ||
We have recorded goodwill in connection with certain acquisitions. Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired and is assigned to applicable reporting unit(s) on the acquisition date, based upon the expected benefit to be received by the reporting unit. We determine the expected benefit based on several factors, including the purpose of the business combination, our strategy subsequent to the business combination and the structure of the acquired company subsequent to the business combination. Goodwill is not subject to amortization. We test goodwill for potential impairment during the fourth quarter each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit to a level below its carrying amount. We have the option to first make this assessment on a qualitative basis. Should we choose to forgo this option, or if our qualitative assessment indicates that fair value is more likely than not below carrying value, we conduct a quantitative two-step impairment evaluation at the reporting unit level. First, we identify potential impairment by comparing the estimated fair values of the reporting units to estimated book values, including goodwill. The fair value of each reporting unit is derived based upon valuation techniques and assumptions that we believe market participants would use to value our business. The estimated fair values are generally determined utilizing methodologies that incorporate discounted cash flow analyses. The values derived from the analyses are then compared to recent market transactions for reasonableness. We derive the net book value of our reporting units by estimating the amount of shareholders’ equity required to support the activities of each reporting unit. If the estimated fair value of a reporting unit exceeds the estimated book value, goodwill is not considered impaired. If the book value exceeds the estimated fair value, the second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of the goodwill in order to determine the magnitude of impairment to be recognized. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of the reporting unit as a whole. The excess of the carrying value of goodwill above the implied goodwill, if any, would be recognized as an impairment charge in the Consolidated Statements of Operations. | ||
j) | Income Taxes | |
Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When our assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. We recognize the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained upon audit by the relevant taxing authorities. | ||
k) | Treasury Shares | |
Common shares repurchased by the Company and not subsequently cancelled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, we use the average cost method to determine the cost of the reissued shares. Gains on sales/reissuances of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from reissued treasury shares were included therein; otherwise losses are charged to retained earnings. | ||
l) | New Accounting Standards Adopted in 2013 | |
Balance Sheet Offsetting | ||
Effective January 1, 2013, we adopted Financial Accounting Standards Board ("FASB") guidance requiring additional disclosures about financial instruments and derivative instruments that are either: (1) offset for balance sheet presentation purposes or (2) subject to an enforceable master netting arrangement or similar arrangement, regardless of whether they are offset for balance sheet presentation purposes. The disclosure requirements of this guidance are limited to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing/lending transactions. As this guidance is disclosure-related only and did not amend existing balance sheet offsetting guidance, adoption did not impact our results of operations, financial condition or liquidity. The additional disclosures are provided in Note 7 - Derivative Instruments. | ||
Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income ("AOCI") | ||
Effective January 1, 2013, we adopted FASB guidance requiring additional disclosures about reclassification adjustments from AOCI. As this guidance is disclosure-related only and did not amend existing guidance on the reporting of net income available to common shareholders or other comprehensive income, adoption did not impact our results of operations, financial condition or liquidity. The additional disclosures are provided in Note 19 - Other Comprehensive Income (Loss). |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
SEGMENT INFORMATION [Text Block] | ' | |||||||||||||
Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Reinsurance. Therefore we have determined that we have two reportable segments, insurance and reinsurance. We do not allocate our assets by segment, with the exception of goodwill and intangible assets, as we evaluate the underwriting results of each segment separately from the results of our investment portfolio. | ||||||||||||||
Insurance | ||||||||||||||
Our insurance segment provides insurance coverage on a worldwide basis. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability and accident and health. | ||||||||||||||
Reinsurance | ||||||||||||||
Our reinsurance segment provides non-life treaty reinsurance to insurance companies on a worldwide basis. The product lines in this segment are catastrophe, property, professional lines, credit and surety, motor, liability, agriculture, engineering and other. | ||||||||||||||
The following tables summarize the underwriting results of our reportable segments, as well as the carrying values of allocated goodwill and intangible assets: | ||||||||||||||
At and year ended December 31, 2013 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,559,138 | $ | 2,137,903 | $ | 4,697,041 | ||||||||
Net premiums written | 1,813,538 | 2,114,662 | 3,928,200 | |||||||||||
Net premiums earned | 1,722,762 | 1,984,303 | 3,707,065 | |||||||||||
Other insurance related income | 2,436 | 1,988 | 4,424 | |||||||||||
Net losses and loss expenses | (1,050,402 | ) | (1,083,793 | ) | (2,134,195 | ) | ||||||||
Acquisition costs | (242,363 | ) | (421,828 | ) | (664,191 | ) | ||||||||
General and administrative expenses | (347,684 | ) | (137,450 | ) | (485,134 | ) | ||||||||
Underwriting income | $ | 84,749 | $ | 343,220 | 427,969 | |||||||||
Corporate expenses | (90,256 | ) | ||||||||||||
Net investment income | 409,312 | |||||||||||||
Net realized investment gains | 75,564 | |||||||||||||
Foreign exchange losses | (26,143 | ) | ||||||||||||
Interest expense and financing costs | (61,979 | ) | ||||||||||||
Income before income taxes | $ | 734,467 | ||||||||||||
Net loss and loss expense ratio | 61 | % | 54.6 | % | 57.6 | % | ||||||||
Acquisition cost ratio | 14.1 | % | 21.3 | % | 17.9 | % | ||||||||
General and administrative expense ratio | 20.1 | % | 6.9 | % | 15.5 | % | ||||||||
Combined ratio | 95.2 | % | 82.8 | % | 91 | % | ||||||||
Goodwill and intangible assets | $ | 89,528 | $ | — | $ | 89,528 | ||||||||
At and year ended December 31, 2012 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,309,481 | $ | 1,830,162 | $ | 4,139,643 | ||||||||
Net premiums written | 1,522,245 | 1,815,211 | 3,337,456 | |||||||||||
Net premiums earned | 1,558,058 | 1,857,405 | 3,415,463 | |||||||||||
Other insurance related income | 2,676 | — | 2,676 | |||||||||||
Net losses and loss expenses | (953,564 | ) | (1,142,464 | ) | (2,096,028 | ) | ||||||||
Acquisition costs | (226,859 | ) | (400,794 | ) | (627,653 | ) | ||||||||
General and administrative expenses | (314,834 | ) | (116,487 | ) | (431,321 | ) | ||||||||
Underwriting income | $ | 65,477 | $ | 197,660 | 263,137 | |||||||||
Corporate expenses | (129,660 | ) | ||||||||||||
Net investment income | 380,957 | |||||||||||||
Net realized investment gains | 127,469 | |||||||||||||
Foreign exchange losses | (29,512 | ) | ||||||||||||
Interest expense and financing costs | (61,863 | ) | ||||||||||||
Income before income taxes | $ | 550,528 | ||||||||||||
Net loss and loss expense ratio | 61.2 | % | 61.5 | % | 61.4 | % | ||||||||
Acquisition cost ratio | 14.6 | % | 21.6 | % | 18.4 | % | ||||||||
General and administrative expense ratio | 20.2 | % | 6.3 | % | 16.4 | % | ||||||||
Combined ratio | 96 | % | 89.4 | % | 96.2 | % | ||||||||
Goodwill and intangible assets | $ | 97,493 | $ | — | $ | 97,493 | ||||||||
At and year ended December 31, 2011 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,121,829 | $ | 1,974,324 | $ | 4,096,153 | ||||||||
Net premiums written | 1,466,134 | 1,953,300 | 3,419,434 | |||||||||||
Net premiums earned | 1,429,687 | 1,885,274 | 3,314,961 | |||||||||||
Other insurance related income | 2,396 | — | 2,396 | |||||||||||
Net losses and loss expenses | (919,319 | ) | (1,755,733 | ) | (2,675,052 | ) | ||||||||
Acquisition costs | (199,583 | ) | (387,886 | ) | (587,469 | ) | ||||||||
General and administrative expenses | (278,147 | ) | (103,915 | ) | (382,062 | ) | ||||||||
Underwriting income (loss) | $ | 35,034 | $ | (362,260 | ) | (327,226 | ) | |||||||
Corporate expenses | (77,089 | ) | ||||||||||||
Net investment income | 362,430 | |||||||||||||
Net realized investment gains | 121,439 | |||||||||||||
Foreign exchange gains | 44,582 | |||||||||||||
Interest expense and financing costs | (62,598 | ) | ||||||||||||
Income before income taxes | $ | 61,538 | ||||||||||||
Net loss and loss expense ratio | 64.3 | % | 93.1 | % | 80.7 | % | ||||||||
Acquisition cost ratio | 14 | % | 20.6 | % | 17.7 | % | ||||||||
General and administrative expense ratio | 19.4 | % | 5.5 | % | 13.9 | % | ||||||||
Combined ratio | 97.7 | % | 119.2 | % | 112.3 | % | ||||||||
Goodwill and intangible assets | $ | 99,590 | $ | — | $ | 99,590 | ||||||||
The following table presents our gross premiums written by the geographical location of our subsidiaries: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Bermuda | $ | 718,904 | $ | 684,588 | $ | 822,237 | ||||||||
Europe | 1,699,748 | 1,561,701 | 1,493,692 | |||||||||||
United States | 2,278,389 | 1,893,354 | 1,780,224 | |||||||||||
Total gross premium written | $ | 4,697,041 | $ | 4,139,643 | $ | 4,096,153 | ||||||||
The following table presents our net premiums earned by segment and line of business: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Insurance | ||||||||||||||
Property | $ | 462,364 | $ | 408,943 | $ | 385,291 | ||||||||
Marine | 179,057 | 171,165 | 152,123 | |||||||||||
Terrorism | 39,298 | 38,605 | 35,213 | |||||||||||
Aviation | 48,489 | 60,363 | 70,681 | |||||||||||
Credit and political risk | 68,192 | 87,103 | 97,680 | |||||||||||
Professional lines | 586,200 | 563,500 | 536,238 | |||||||||||
Liability | 110,623 | 86,873 | 89,555 | |||||||||||
Accident & health | 228,539 | 141,506 | 62,906 | |||||||||||
Total Insurance | 1,722,762 | 1,558,058 | 1,429,687 | |||||||||||
Reinsurance | ||||||||||||||
Catastrophe | 380,199 | 375,088 | 456,858 | |||||||||||
Property | 350,970 | 351,470 | 356,022 | |||||||||||
Professional lines | 304,754 | 297,726 | 281,025 | |||||||||||
Credit and surety | 279,943 | 277,185 | 263,912 | |||||||||||
Motor | 221,844 | 237,006 | 202,830 | |||||||||||
Liability | 234,736 | 220,874 | 230,872 | |||||||||||
Agriculture | 126,490 | 17,116 | 15,031 | |||||||||||
Engineering | 66,243 | 68,402 | 65,727 | |||||||||||
Other | 19,124 | 12,538 | 12,997 | |||||||||||
Total Reinsurance | 1,984,303 | 1,857,405 | 1,885,274 | |||||||||||
Total | $ | 3,707,065 | $ | 3,415,463 | $ | 3,314,961 | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Text Block] | ' | |||||||||||||||||
The following table shows an analysis of goodwill and intangible assets: | ||||||||||||||||||
Goodwill | Intangible | Intangible | Total | |||||||||||||||
assets with an | assets with a | |||||||||||||||||
indefinite life | finite life | |||||||||||||||||
Net balance at December 31, 2011 | $ | 49,350 | $ | 26,036 | $ | 24,204 | $ | 99,590 | ||||||||||
Amortization | — | — | (2,618 | ) | (2,618 | ) | ||||||||||||
Foreign currency translation adjustment | 285 | — | 236 | 521 | ||||||||||||||
Net balance at December 31, 2012 | 49,635 | 26,036 | 21,822 | 97,493 | ||||||||||||||
Amortization | — | — | (2,233 | ) | (2,233 | ) | ||||||||||||
Foreign currency translation adjustment | (3,213 | ) | — | (2,519 | ) | (5,732 | ) | |||||||||||
Net balance at December 31, 2013 | $ | 46,422 | $ | 26,036 | $ | 17,070 | $ | 89,528 | ||||||||||
Gross balance at December 31, 2013 | $ | 42,237 | $ | 26,036 | $ | 35,596 | $ | 103,869 | ||||||||||
Accumulated amortization | — | — | (23,601 | ) | (23,601 | ) | ||||||||||||
Foreign currency translation adjustment | 4,185 | — | 5,075 | 9,260 | ||||||||||||||
Net balance at December 31, 2013 | $ | 46,422 | $ | 26,036 | $ | 17,070 | $ | 89,528 | ||||||||||
We estimate that the annual amortization expense for our total intangible assets with a finite life will be approximately $2 million from 2014 to 2018. The estimated remaining useful lives of these assets range from six to twenty-five years. | ||||||||||||||||||
Intangible assets with an indefinite life consist primarily of U.S. state licenses that provide a legal right to transact business indefinitely. Our impairment reviews for goodwill and indefinite lived intangibles did not result in the recognition of impairment losses for the years ended December 31, 2013, 2012 and 2011. |
INVESTMENTS
INVESTMENTS | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||
INVESTMENTS [Text Block] | ' | |||||||||||||||||||||||||
a) | Fixed Maturities and Equities | |||||||||||||||||||||||||
The amortized cost or cost and fair values of our fixed maturities and equities were as follows: | ||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Non-credit | ||||||||||||||||||||||
Cost or | Unrealized | Unrealized | Value | OTTI | ||||||||||||||||||||||
Cost | Gains | Losses | in AOCI(5) | |||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | 1,421,245 | $ | 1,405 | $ | (33,952 | ) | $ | 1,388,698 | $ | — | |||||||||||||||
Non-U.S. government | 1,208,384 | 17,990 | (49,992 | ) | 1,176,382 | — | ||||||||||||||||||||
Corporate debt | 3,533,585 | 84,881 | (10,228 | ) | 3,608,238 | — | ||||||||||||||||||||
Agency RMBS(1) | 2,485,139 | 21,979 | (58,291 | ) | 2,448,827 | — | ||||||||||||||||||||
CMBS(2) | 790,095 | 11,285 | (3,966 | ) | 797,414 | — | ||||||||||||||||||||
Non-Agency RMBS | 65,590 | 2,375 | (398 | ) | 67,567 | (868 | ) | |||||||||||||||||||
ABS(3) | 955,274 | 6,871 | (8,694 | ) | 953,451 | — | ||||||||||||||||||||
Municipals(4) | 1,527,834 | 32,432 | (14,516 | ) | 1,545,750 | — | ||||||||||||||||||||
Total fixed maturities | $ | 11,987,146 | $ | 179,218 | $ | (180,037 | ) | $ | 11,986,327 | $ | (868 | ) | ||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | 345,759 | 98,742 | (6,183 | ) | 438,318 | |||||||||||||||||||||
Exchange-traded funds | 106,762 | 32,085 | — | 138,847 | ||||||||||||||||||||||
Non-U.S. bond mutual funds | 113,698 | 11,124 | — | 124,822 | ||||||||||||||||||||||
Total equity securities | $ | 566,219 | $ | 141,951 | $ | (6,183 | ) | $ | 701,987 | |||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | 1,413,520 | $ | 9,484 | $ | (119 | ) | $ | 1,422,885 | $ | — | |||||||||||||||
Non-U.S. government | 1,076,501 | 30,276 | (2,201 | ) | 1,104,576 | — | ||||||||||||||||||||
Corporate debt | 3,746,616 | 135,658 | (5,892 | ) | 3,876,382 | — | ||||||||||||||||||||
Agency RMBS(1) | 2,594,180 | 67,398 | (1,670 | ) | 2,659,908 | — | ||||||||||||||||||||
CMBS(2) | 814,211 | 25,999 | (126 | ) | 840,084 | — | ||||||||||||||||||||
Non-Agency RMBS | 93,266 | 2,503 | (570 | ) | 95,199 | (884 | ) | |||||||||||||||||||
ABS(3) | 639,614 | 10,774 | (7,182 | ) | 643,206 | — | ||||||||||||||||||||
Municipals(4) | 1,227,764 | 58,770 | (725 | ) | 1,285,809 | — | ||||||||||||||||||||
Total fixed maturities | $ | 11,605,672 | $ | 340,862 | $ | (18,485 | ) | $ | 11,928,049 | $ | (884 | ) | ||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | 398,975 | 51,821 | (7,398 | ) | 443,398 | |||||||||||||||||||||
Exchange-traded funds | 109,434 | 9,727 | — | 119,161 | ||||||||||||||||||||||
Non-U.S. bond mutual funds | 99,897 | 4,092 | — | 103,989 | ||||||||||||||||||||||
Total equity securities | $ | 608,306 | $ | 65,640 | $ | (7,398 | ) | $ | 666,548 | |||||||||||||||||
-1 | Residential mortgage-backed securities (RMBS) originated by U.S. agencies. | |||||||||||||||||||||||||
-2 | Commercial mortgage-backed securities (CMBS). | |||||||||||||||||||||||||
-3 | Asset-backed securities (ABS) include debt tranched securities collateralized primarily by auto loans, student loans, credit cards, and other asset types. This asset class also includes collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs). | |||||||||||||||||||||||||
-4 | Municipals include bonds issued by states, municipalities and political subdivisions. | |||||||||||||||||||||||||
-5 | Represents the non-credit component of the other-than-temporary impairment (OTTI) losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date. | |||||||||||||||||||||||||
In the normal course of investing activities, we actively manage allocations to non-controlling tranches of structured securities (variable interests) issued by VIEs. These structured securities include RMBS, CMBS and ABS and are included in the above table. Additionally, within our other investments portfolio, we also invest in limited partnerships (hedge funds) and CLO equity tranched securities, which are all variable interests issued by VIEs (see Note 5(b)). For these variable interests, we do not have the power to direct the activities that are most significant to the economic performance of the VIEs and accordingly we are not the primary beneficiary for any of these VIEs. Our maximum exposure to loss on these interests is limited to the amount of our investment. We have not provided financial or other support with respect to these structured securities other than our original investment. | ||||||||||||||||||||||||||
Contractual Maturities | ||||||||||||||||||||||||||
The contractual maturities of fixed maturities are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||
Amortized | Fair | % of Total | ||||||||||||||||||||||||
Cost | Value | Fair Value | ||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 710,079 | $ | 717,052 | 5.9 | % | ||||||||||||||||||||
Due after one year through five years | 5,030,728 | 5,116,060 | 42.7 | % | ||||||||||||||||||||||
Due after five years through ten years | 1,852,877 | 1,791,835 | 14.9 | % | ||||||||||||||||||||||
Due after ten years | 97,364 | 94,121 | 0.8 | % | ||||||||||||||||||||||
7,691,048 | 7,719,068 | 64.3 | % | |||||||||||||||||||||||
Agency RMBS | 2,485,139 | 2,448,827 | 20.4 | % | ||||||||||||||||||||||
CMBS | 790,095 | 797,414 | 6.7 | % | ||||||||||||||||||||||
Non-Agency RMBS | 65,590 | 67,567 | 0.6 | % | ||||||||||||||||||||||
ABS | 955,274 | 953,451 | 8 | % | ||||||||||||||||||||||
Total | $ | 11,987,146 | $ | 11,986,327 | 100 | % | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 651,111 | $ | 657,045 | 5.5 | % | ||||||||||||||||||||
Due after one year through five years | 4,880,039 | 4,989,151 | 41.8 | % | ||||||||||||||||||||||
Due after five years through ten years | 1,847,295 | 1,951,569 | 16.4 | % | ||||||||||||||||||||||
Due after ten years | 85,956 | 91,887 | 0.8 | % | ||||||||||||||||||||||
7,464,401 | 7,689,652 | 64.5 | % | |||||||||||||||||||||||
Agency RMBS | 2,594,180 | 2,659,908 | 22.3 | % | ||||||||||||||||||||||
CMBS | 814,211 | 840,084 | 7 | % | ||||||||||||||||||||||
Non-Agency RMBS | 93,266 | 95,199 | 0.8 | % | ||||||||||||||||||||||
ABS | 639,614 | 643,206 | 5.4 | % | ||||||||||||||||||||||
Total | $ | 11,605,672 | $ | 11,928,049 | 100 | % | ||||||||||||||||||||
Gross Unrealized Losses | ||||||||||||||||||||||||||
The following table summarizes fixed maturities and equities in an unrealized loss position and the aggregate fair value and gross unrealized loss by length of time the security has continuously been in an unrealized loss position: | ||||||||||||||||||||||||||
12 months or greater | Less than 12 months | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 982,307 | $ | (33,952 | ) | $ | 982,307 | $ | (33,952 | ) | ||||||||||||
Non-U.S. government | 35,577 | (3,430 | ) | 420,622 | (46,562 | ) | 456,199 | (49,992 | ) | |||||||||||||||||
Corporate debt | 27,696 | (802 | ) | 606,592 | (9,426 | ) | 634,288 | (10,228 | ) | |||||||||||||||||
Agency RMBS | 144,468 | (5,247 | ) | 1,478,527 | (53,044 | ) | 1,622,995 | (58,291 | ) | |||||||||||||||||
CMBS | 13,319 | (116 | ) | 298,863 | (3,850 | ) | 312,182 | (3,966 | ) | |||||||||||||||||
Non-Agency RMBS | 4,287 | (315 | ) | 5,319 | (83 | ) | 9,606 | (398 | ) | |||||||||||||||||
ABS | 37,765 | (2,941 | ) | 553,803 | (5,753 | ) | 591,568 | (8,694 | ) | |||||||||||||||||
Municipals | 8,408 | (615 | ) | 543,474 | (13,901 | ) | 551,882 | (14,516 | ) | |||||||||||||||||
Total fixed maturities | $ | 271,520 | $ | (13,466 | ) | $ | 4,889,507 | $ | (166,571 | ) | $ | 5,161,027 | $ | (180,037 | ) | |||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | $ | 3,499 | $ | (398 | ) | $ | 48,828 | $ | (5,785 | ) | $ | 52,327 | $ | (6,183 | ) | |||||||||||
Total equity securities | $ | 3,499 | $ | (398 | ) | $ | 48,828 | $ | (5,785 | ) | $ | 52,327 | $ | (6,183 | ) | |||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 119,730 | $ | (119 | ) | $ | 119,730 | $ | (119 | ) | ||||||||||||
Non-U.S. government | 44,568 | (1,453 | ) | 153,134 | (748 | ) | 197,702 | (2,201 | ) | |||||||||||||||||
Corporate debt | 95,511 | (2,947 | ) | 451,651 | (2,945 | ) | 547,162 | (5,892 | ) | |||||||||||||||||
Agency RMBS | 9,557 | (148 | ) | 521,400 | (1,522 | ) | 530,957 | (1,670 | ) | |||||||||||||||||
CMBS | 1,749 | (16 | ) | 69,615 | (110 | ) | 71,364 | (126 | ) | |||||||||||||||||
Non-Agency RMBS | 11,026 | (537 | ) | 115 | (33 | ) | 11,141 | (570 | ) | |||||||||||||||||
ABS | 99,514 | (7,034 | ) | 39,296 | (148 | ) | 138,810 | (7,182 | ) | |||||||||||||||||
Municipals | 6,386 | (270 | ) | 77,766 | (455 | ) | 84,152 | (725 | ) | |||||||||||||||||
Total fixed maturities | $ | 268,311 | $ | (12,405 | ) | $ | 1,432,707 | $ | (6,080 | ) | $ | 1,701,018 | $ | (18,485 | ) | |||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | $ | 11,554 | $ | (1,793 | ) | $ | 95,697 | $ | (5,605 | ) | $ | 107,251 | $ | (7,398 | ) | |||||||||||
Total equity securities | $ | 11,554 | $ | (1,793 | ) | $ | 95,697 | $ | (5,605 | ) | $ | 107,251 | $ | (7,398 | ) | |||||||||||
Fixed Maturities | ||||||||||||||||||||||||||
At December 31, 2013, 1,127 fixed maturities (2012: 478) were in an unrealized loss position of $180 million (2012: $18 million) of which $2 million (2012: $3 million) was related to securities below investment grade or not rated. | ||||||||||||||||||||||||||
At December 31, 2013, 99 securities (2012: 146) had been in a continuous unrealized loss position for 12 months or greater and had a fair value of $272 million (2012: $268 million). Following our credit impairment review, we concluded that these securities as well as the remaining securities in an unrealized loss position in the above table were temporarily depressed at December 31, 2013, and were expected to recover in value as the securities approach maturity. Further, at December 31, 2013, we did not intend to sell these securities in an unrealized loss position and it is more likely than not that we will not be required to sell these securities before the anticipated recovery of their amortized costs. | ||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||
At December 31, 2013, 63 securities (2012: 106) were in an unrealized loss position of $6 million (2012: $7 million). | ||||||||||||||||||||||||||
At December 31, 2013, 9 (2012: 17) securities had been in a continuous unrealized loss position for 12 months or greater and had a fair value of $3 million (2012: $12 million). Based on our impairment review process and our ability and intent to hold these securities for a reasonable period of time sufficient for a full recovery, we concluded that the above equities in an unrealized loss position were temporarily impaired at December 31, 2013 and 2012. | ||||||||||||||||||||||||||
b) | Other Investments | |||||||||||||||||||||||||
The following tables provide a breakdown of our investments in hedge funds, direct lending funds and CLO Equities, together with additional information relating to the liquidity of each category: | ||||||||||||||||||||||||||
Fair Value | Redemption Frequency | Redemption | ||||||||||||||||||||||||
(if currently eligible) | Notice Period | |||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Long/short equity funds | $ | 425,444 | 41 | % | Monthly, Quarterly, Semi-annually | 30-60 days | ||||||||||||||||||||
Multi-strategy funds | 285,155 | 27 | % | Quarterly, Semi-annually | 60-95 days | |||||||||||||||||||||
Event-driven funds | 190,458 | 18 | % | Quarterly, Annually | 45-60 days | |||||||||||||||||||||
Leveraged bank loan funds | 48,753 | 5 | % | Quarterly | 65 days | |||||||||||||||||||||
Direct lending funds | 22,134 | 2 | % | n/a | n/a | |||||||||||||||||||||
CLO - Equities | 73,866 | 7 | % | n/a | n/a | |||||||||||||||||||||
Total other investments | $ | 1,045,810 | 100 | % | ||||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Long/short equity funds | $ | 302,680 | 36 | % | Monthly, Quarterly, Semi-annually | 30-60 days | ||||||||||||||||||||
Multi-strategy funds | 244,075 | 29 | % | Quarterly, Semi-annually | 60-95 days | |||||||||||||||||||||
Event-driven funds | 171,479 | 20 | % | Quarterly, Annually | 45-95 days | |||||||||||||||||||||
Leveraged bank loan funds | 62,768 | 8 | % | Quarterly | 65 days | |||||||||||||||||||||
Direct lending funds | — | — | % | n/a | n/a | |||||||||||||||||||||
CLO - Equities | 62,435 | 7 | % | n/a | n/a | |||||||||||||||||||||
Total other investments | $ | 843,437 | 100 | % | ||||||||||||||||||||||
n/a – not applicable | ||||||||||||||||||||||||||
The investment strategies for the above funds are as follows: | ||||||||||||||||||||||||||
• | Long/short equity funds: Seek to achieve attractive returns by executing an equity trading strategy involving both long and short investments in publicly-traded equities. | |||||||||||||||||||||||||
• | Multi-strategy funds: Seek to achieve above-market returns by pursuing multiple investment strategies to diversify risks and reduce volatility. This category includes funds of hedge funds which invest in a large pool of hedge funds across a diversified range of hedge fund strategies. | |||||||||||||||||||||||||
• | Event-driven funds: Seek to achieve attractive returns by exploiting situations where announced or anticipated events create opportunities. | |||||||||||||||||||||||||
• | Leveraged bank loan funds: Seek to achieve attractive returns by investing primarily in bank loan collateral that has limited interest rate risk exposure. | |||||||||||||||||||||||||
• | Direct lending funds: Seek to achieve attractive risk-adjusted returns, including current income generation, by investing in funds which provide financing directly to borrowers. | |||||||||||||||||||||||||
Two common redemption restrictions which may impact our ability to redeem our hedge funds are gates and lockups. A gate is a suspension of redemptions which may be implemented by the general partner or investment manager of the fund in order to defer, in whole or in part, the redemption request in the event the aggregate amount of redemption requests exceeds a predetermined percentage of the fund’s net assets which may otherwise hinder the general partner or investment manager’s ability to liquidate holdings in an orderly fashion in order to generate the cash necessary to fund extraordinarily large redemption payouts. A lockup period is the initial amount of time an investor is contractually required to hold the security before having the ability to redeem. During 2013 and 2012, neither of these restrictions impacted our redemption requests. At December 31, 2013, $99 million (2012: $38 million), representing 10% (2012: 5%) of our total hedge funds, relate to holdings where we are still within the lockup period. The expiry of this lockup periods range from April, 2014 to April, 2016. | ||||||||||||||||||||||||||
At December 31, 2013, $11 million (2012: $29 million) was invested in hedge funds that are not accepting redemption requests. Of this amount, substantially all relates to a leveraged bank loan fund in a period of planned principal distributions. Based on market conditions and payments made to date, management's current expectation is that the distribution process will be completed in 2014. The remainder primarily relates to funds that entered liquidation or had their assets side pocketed as a result of the global financial crisis which began in late 2008. For these funds, management is currently unable to estimate when those funds will be distributed. | ||||||||||||||||||||||||||
At December 31, 2013, we have $88 million (2012: $40 million) of unfunded commitments within our other investments portfolio relating to our future investments in direct lending funds. Once the full amount of committed capital has been called by the General Partner of each of these funds, the assets will not be fully returned until the completion of the fund's investment term. These funds have investment terms ranging from 5-10 years and the General Partners of certain funds have the option to extend the term by up to three years. | ||||||||||||||||||||||||||
During 2013, we made a $60 million commitment as a limited partner in a multi-strategy hedge fund. Once the full amount of committed capital has been called by the General Partner, the assets will not be fully returned until the completion of the fund's investment term which ends in December, 2018. The General Partner then has the option to extend the term by up to three years. At December 31, 2013, $54 million of our commitment remains unfunded and the current fair value of the funds called to date are included in the multi-strategy funds line of the table above. | ||||||||||||||||||||||||||
During 2013, we made a $60 million commitment as a limited partner in a fund that invests primarily in CLO equities ("CLO fund"). We will not be eligible to redeem our investment until December, 2017 but expect to receive interest distributions on a quarterly basis. At December 31, 2013, $27 million of our commitment remains unfunded and the current fair value of the funds called to date are included in the CLO - Equities line of the table above. The CLO - Equities line also includes direct investment in the equity tranches of CLOs. | ||||||||||||||||||||||||||
c) | Net Investment Income | |||||||||||||||||||||||||
Net investment income was derived from the following sources: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Fixed maturities | $ | 293,609 | $ | 304,400 | $ | 337,616 | ||||||||||||||||||||
Other investments | 128,814 | 87,660 | 31,856 | |||||||||||||||||||||||
Equity securities | 10,897 | 11,904 | 11,186 | |||||||||||||||||||||||
Cash and cash equivalents | 6,337 | 4,528 | 5,697 | |||||||||||||||||||||||
Short-term investments | 1,181 | 596 | 1,592 | |||||||||||||||||||||||
Gross investment income | 440,838 | 409,088 | 387,947 | |||||||||||||||||||||||
Investment expenses | (31,526 | ) | (28,131 | ) | (25,517 | ) | ||||||||||||||||||||
Net investment income | $ | 409,312 | $ | 380,957 | $ | 362,430 | ||||||||||||||||||||
d) | Net Realized Investment Gains | |||||||||||||||||||||||||
The following table provides an analysis of net realized investment gains: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Gross realized gains | ||||||||||||||||||||||||||
Fixed maturities and short-term investments(1) | $ | 120,932 | $ | 242,082 | $ | 243,296 | ||||||||||||||||||||
Equities | 54,564 | 36,411 | 16,992 | |||||||||||||||||||||||
Gross realized gains | 175,496 | 278,493 | 260,288 | |||||||||||||||||||||||
Gross realized losses | ||||||||||||||||||||||||||
Fixed maturities and short-term investments(1) | (87,894 | ) | (101,844 | ) | (108,490 | ) | ||||||||||||||||||||
Equities | (10,407 | ) | (23,530 | ) | (14,526 | ) | ||||||||||||||||||||
Gross realized losses | (98,301 | ) | (125,374 | ) | (123,016 | ) | ||||||||||||||||||||
Net OTTI recognized in earnings | (9,362 | ) | (24,234 | ) | (15,861 | ) | ||||||||||||||||||||
Change in fair value of investment derivatives(2) | 7,731 | (9,170 | ) | 4,431 | ||||||||||||||||||||||
Fair value hedges(2) | — | 7,754 | (4,403 | ) | ||||||||||||||||||||||
Net realized investment gains | $ | 75,564 | $ | 127,469 | $ | 121,439 | ||||||||||||||||||||
-1 | Includes $37 million of gains in 2012 and $11 million of losses in 2011 relating to previously unrealized foreign exchange currency amounts on the hedged fixed maturity portfolios. The hedged portfolio was sold and all associated foreign exchange contracts were fully settled during 2012 so there is no impact on the 2013 figures. | |||||||||||||||||||||||||
-2 | Refer to Note 7 – Derivative Instruments | |||||||||||||||||||||||||
The following table summarizes the OTTI recognized in earnings by asset class: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
Non-U.S. government | $ | 120 | $ | 3,281 | $ | — | ||||||||||||||||||||
Corporate debt | 5,802 | 1,821 | 1,954 | |||||||||||||||||||||||
Non-Agency RMBS | 57 | 2,016 | 717 | |||||||||||||||||||||||
ABS | 129 | 795 | 61 | |||||||||||||||||||||||
Municipals | 639 | — | 483 | |||||||||||||||||||||||
6,747 | 7,913 | 3,215 | ||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||
Common stocks | 2,092 | 7,318 | 12,646 | |||||||||||||||||||||||
Exchange-traded funds | 523 | 9,003 | — | |||||||||||||||||||||||
2,615 | 16,321 | 12,646 | ||||||||||||||||||||||||
Total OTTI recognized in earnings | $ | 9,362 | $ | 24,234 | $ | 15,861 | ||||||||||||||||||||
Fixed Maturities | ||||||||||||||||||||||||||
The following table provides a roll forward of the credit losses (“credit loss table”), before income taxes, for which a portion of the OTTI was recognized in AOCI: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 1,809 | $ | 2,061 | ||||||||||||||||||||||
Credit impairments recognized on securities not previously impaired | — | — | ||||||||||||||||||||||||
Additional credit impairments recognized on securities previously impaired | — | — | ||||||||||||||||||||||||
Change in timing of future cash flows on securities previously impaired | — | — | ||||||||||||||||||||||||
Intent to sell of securities previously impaired | — | — | ||||||||||||||||||||||||
Securities sold/redeemed/matured | (215 | ) | (252 | ) | ||||||||||||||||||||||
Balance at end of period | $ | 1,594 | $ | 1,809 | ||||||||||||||||||||||
Credit losses are calculated based on the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to the impairment. The following provides a summary of the credit loss activities by asset class for the above table as well as the significant inputs and the methodology used to estimate these credit losses. | ||||||||||||||||||||||||||
U.S. Government, U.S. Agency and U.S. Agency RMBS: | ||||||||||||||||||||||||||
Unrealized losses on securities issued or backed (either explicitly or implicitly) by the U.S. government are generally not analyzed for OTTI. We have concluded that the possibility of any credit losses on these securities is highly unlikely due to the explicit U.S. government guarantee on certain securities (e.g. GNMA issuances) and, on others, the implicit guarantee that has been validated by past actions (e.g. U.S. government bailout of FNMA and FHLMC during the 2008 credit crisis). Although not generally analyzed for credit losses, the securities are still evaluated for intention to sell at a loss. | ||||||||||||||||||||||||||
Non-U.S. Government: | ||||||||||||||||||||||||||
Non-U.S. government obligations are evaluated for credit loss primarily through qualitative assessments of the likelihood of credit loss using information such as duration and severity of unrealized losses, as well as credit ratings and price volatility. At December 31, 2013, our holdings in sovereign debt, including $161 million (2012: $217 million) relating to the eurozone countries, were substantially all investment-grade securities. The gross unrealized losses of $50 million at December 31, 2013 were mainly due to pricing and foreign exchange losses on emerging market debt. Based on our analysis, we do not anticipate any credit losses on our non-U.S. government fixed maturities at December 31, 2013. | ||||||||||||||||||||||||||
Corporate Debt: | ||||||||||||||||||||||||||
To estimate credit losses for corporate debt securities, our projected cash flows are primarily driven by our assumptions regarding the probability of default and the severity associated with those defaults. Our default and loss severity rates are based on credit rating, credit analysis, industry analyst reports and forecasts, Moody’s historical default data and any other data relevant to the recoverability of the security. In 2013, the OTTI charges on corporate debt securities were related to our intent to sell, as well as unrealized foreign exchange losses on certain securities where forecasted recovery was uncertain. | ||||||||||||||||||||||||||
CMBS: | ||||||||||||||||||||||||||
Our investments in CMBS are diversified and highly rated, with a weighted average estimated subordination percentage of 30% at December 31, 2013 (2012: 30%). Based on discounted cash flows at December 31, 2013, the current level of subordination is sufficient to cover the estimated loan losses on the underlying collateral of the CMBS. | ||||||||||||||||||||||||||
Non-agency RMBS: | ||||||||||||||||||||||||||
For non-agency RMBS, our projected cash flows incorporated underlying data from widely accepted third-party data sources along with certain internal assumptions and judgments regarding the future performance of the security. These assumptions included the following: default, delinquency, loss severity and prepayment rates. The assumptions used to calculate the credit losses in 2013 have not changed significantly since December 31, 2012. At December 31, 2013, the fair value of our non-agency RMBS was $68 million (2012: $95 million), consisting primarily of $41 million (2012: $65 million) of Prime and $19 million (2012: $22 million) of Alt-A MBS. We have concluded there are no credit losses anticipated for any of our non-agency RMBS at December 31, 2013, other than those already recorded. | ||||||||||||||||||||||||||
ABS: | ||||||||||||||||||||||||||
A significant portion of the unrealized losses on ABS at December 31, 2013, and 2012, were related to CLO debt tranched securities (“CLO Debt”) purchased prior to the credit crisis with a current carrying value of $30 million (2012: $53 million). We used the following significant inputs to estimate the credit loss for these securities: | ||||||||||||||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Default rate | 4.00% | 4.00% | ||||||||||||||||||||||||
Loss severity rate | 53.50% | 53.50% | ||||||||||||||||||||||||
Collateral spreads | 2.7% - 3.5% | 2.5% - 3.7% | ||||||||||||||||||||||||
Our assumptions on default and loss severity rates are established based on an assessment of actual experience to date for each CLO Debt and review of recent credit rating agencies’ default and loss severity forecasts. Based on the underlying collateral values and our projected cash flows at December 31, 2013, we do not expect any credit losses on our CLO Debt as the current unrealized loss is reflective of the securities' low coupon relative to the higher market yields available for similar securities. | ||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||
The OTTI losses on common stocks in 2013 and 2012 are primarily due to the severity and duration of their unrealized loss positions, for which we concluded the forecasted recovery period was uncertain. The recognition of such losses does not necessarily indicate that sales will occur or that sales are imminent or planned. During 2013, we recorded $1 million (2012: $9 million) of OTTI losses on our exchange-traded funds as we no longer had the intent to hold these underwater securities through full recovery of cost. At December 31, 2013, the fair value of our equities was $702 million (2012: $667 million), which included $6 million (2012: $7 million) of gross unrealized losses. | ||||||||||||||||||||||||||
e) | Restricted Investments | |||||||||||||||||||||||||
In order to support our obligations in regulatory jurisdictions where we operate as a non-admitted carrier, we provide collateral in the form of assets held in trust and, to a lesser extent, letters of credit. Refer to Note 10(b) for further information on our collateral requirements upon issuance of certain letters of credit. The fair value of our restricted investments primarily relates to these items, as noted in the table below. Our restricted investments primarily consist of high-quality fixed maturity and short-term investment securities. | ||||||||||||||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Collateral in Trust for inter-company agreements | $ | 2,261,081 | $ | 2,134,931 | ||||||||||||||||||||||
Collateral for secured letter of credit facility | 777,828 | 470,062 | ||||||||||||||||||||||||
Collateral in Trust for third party agreements | 276,839 | 245,539 | ||||||||||||||||||||||||
Securities on deposit with regulatory authorities | 58,327 | 59,456 | ||||||||||||||||||||||||
Total restricted investments | $ | 3,374,075 | $ | 2,909,988 | ||||||||||||||||||||||
f) | Reverse Repurchase Agreements | |||||||||||||||||||||||||
At December 31, 2013, we held $34 million (2012: $39 million) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents on our consolidated balance sheet. The required collateral for these loans is either cash or U.S. Treasuries at a minimum rate of 102% of the loan principal. Upon maturity, we receive principal and interest income. |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Text Block] | ' | |||||||||||||||||||||||||||||||||||||||||
Fair Value Hierarchy | ||||||||||||||||||||||||||||||||||||||||||
Fair value is defined as the price to sell an asset or transfer a liability (i.e. the “exit price”) in an orderly transaction between market participants. We use a fair value hierarchy that gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The hierarchy is broken down into three levels as follows: | ||||||||||||||||||||||||||||||||||||||||||
• | Level 1 - Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. | |||||||||||||||||||||||||||||||||||||||||
• | Level 2 - Valuations based on quoted prices in active markets for similar assets or liabilities, quoted prices for identical assets or liabilities in inactive markets, or for which significant inputs are observable (e.g. interest rates, yield curves, prepayment speeds, default rates, loss severities, etc.) or can be corroborated by observable market data. | |||||||||||||||||||||||||||||||||||||||||
• | Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The unobservable inputs reflect our own judgments about assumptions that market participants might use. | |||||||||||||||||||||||||||||||||||||||||
The availability of observable inputs can vary from financial instrument to financial instrument and is affected by a wide variety of factors including, for example, the type of financial instrument, whether the financial instrument is new and not yet established in the marketplace, and other characteristics particular to the transaction. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires significantly more judgment. | ||||||||||||||||||||||||||||||||||||||||||
Accordingly, the degree of judgment exercised by management in determining fair value is greatest for instruments categorized in Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This may lead us to change the selection of our valuation technique (from market to cash flow approach) or may cause us to use multiple valuation techniques to estimate the fair value of a financial instrument. This circumstance could cause an instrument to be reclassified between levels within the fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||
We used the following valuation techniques and assumptions in estimating the fair value of our financial instruments as well as the general classification of such financial instruments pursuant to the above fair value hierarchy. | ||||||||||||||||||||||||||||||||||||||||||
Fixed Maturities | ||||||||||||||||||||||||||||||||||||||||||
At each valuation date, we use the market approach valuation technique to estimate the fair value of our fixed maturities portfolio, when possible. This market approach includes, but is not limited to, prices obtained from third party pricing services for identical or comparable securities and the use of “pricing matrix models” using observable market inputs such as yield curves, credit risks and spreads, measures of volatility, and prepayment speeds. Pricing from third party pricing services is sourced from multiple vendors, when available, and we maintain a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. When prices are unavailable from pricing services, we obtain non-binding quotes from broker-dealers who are active in the corresponding markets. | ||||||||||||||||||||||||||||||||||||||||||
The following describes the significant inputs generally used to determine the fair value of our fixed maturities by asset class. | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and mortgage pass-through agencies such as the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. As the fair values of our U.S. Treasury securities are based on unadjusted market prices in active markets, they are classified within Level 1. The fair values of U.S. government agency securities are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are classified within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government | ||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government securities comprise bonds issued by non-U.S. governments and their agencies along with supranational organizations (collectively also known as sovereign debt securities). The fair value of these securities is based on prices obtained from international indices or a valuation model that includes the following inputs: interest rate yield curves, cross-currency basis index spreads, and country credit spreads for structures similar to the sovereign bond in terms of issuer, maturity and seniority. As the significant inputs are observable market inputs, the fair value of non-U.S. government securities are classified within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt securities consist primarily of investment-grade debt of a wide variety of corporate issuers and industries. The fair values of these securities are generally determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of our corporate debt securities are classified within Level 2. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. In this event, securities are classified within Level 3. | ||||||||||||||||||||||||||||||||||||||||||
MBS | ||||||||||||||||||||||||||||||||||||||||||
Our portfolio of RMBS and CMBS are originated by both agencies and non-agencies. The fair values of these securities are determined through the use of a pricing model (including Option Adjusted Spread) which uses prepayment speeds and spreads to determine the appropriate average life of the MBS. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As the significant inputs used to price MBS are observable market inputs, the fair values of the MBS are classified within Level 2. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. These securities are classified within Level 3. | ||||||||||||||||||||||||||||||||||||||||||
ABS | ||||||||||||||||||||||||||||||||||||||||||
ABS include mostly investment-grade bonds backed by pools of loans with a variety of underlying collateral, including automobile loan receivables, student loans, credit card receivables, and CLO Debt originated by a variety of financial institutions. Similarly to MBS, the fair values of ABS are priced through the use of a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price ABS are observable market inputs, the fair values of ABS are classified within Level 2. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers or use a discounted cash flow model to estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. These securities are priced within Level 3. | ||||||||||||||||||||||||||||||||||||||||||
Municipals | ||||||||||||||||||||||||||||||||||||||||||
Our municipal portfolio comprises revenue and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair value of these securities is determined using spreads obtained from broker-dealers, trade prices and the new issue market. As the significant inputs used to price the municipals are observable market inputs, municipals are classified within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||||||||||||||||||
Equity securities include U.S. and non-U.S. common stocks, exchange-traded funds, and non-U.S. bond mutual funds. For common stocks and exchange-traded funds, we classified these within Level 1 as their fair values are based on unadjusted quoted market prices in active markets. Our investments in non-U.S. bond mutual funds have daily liquidity, with redemption based on the net asset value (NAV) of the funds. Accordingly, we have classified these investments as Level 2. | ||||||||||||||||||||||||||||||||||||||||||
Other Investments | ||||||||||||||||||||||||||||||||||||||||||
As a practical expedient, we estimate fair values for hedge funds, direct lending funds and the CLO fund using NAVs as advised by external fund managers or third party administrators. For each of these funds, the NAV is based on the manager's or administrator's valuation of the underlying holdings in accordance with the fund's governing documents and in accordance with U.S. GAAP. For any funds for which we have not yet received a NAV concurrent with our period end date, we record an estimate of the change in fair value for the period subsequent to the most recent NAV. Such estimates are based on return estimates for the period between the most recently issued NAV and the period end date; these estimates are obtained from the relevant fund managers. Accordingly, we do not typically have a reporting lag in our fair value measurements for these funds. Historically, our valuation estimates incorporating these return estimates have not significantly diverged from the subsequent NAVs. | ||||||||||||||||||||||||||||||||||||||||||
Within the hedge fund, direct lending fund and CLO fund industries, there is a general lack of transparency necessary to facilitate a detailed independent assessment of the values placed on the securities underlying the NAV provided by the fund manager or fund administrator. To address this, on a quarterly basis, we perform a number of monitoring procedures designed to assist us in the assessment of the quality of the information provided by managers and administrators. These procedures include, but are not limited to, regular review and discussion of each fund's performance with its manager, regular evaluation of fund performance against applicable benchmarks and the backtesting of our fair value estimates against subsequently received NAVs. Backtesting involves comparing our previously reported values for each individual fund against NAVs per audited financial statements (for year-end values) and final NAVs from fund managers and fund administrators (for interim values). | ||||||||||||||||||||||||||||||||||||||||||
For our hedge fund investments with liquidity terms allowing us to fully redeem our holdings at the applicable NAV in the near term, we have classified these investments as Level 2. Certain investments in hedge funds, all of our direct lending funds and our CLO fund have redemption restrictions (see Note 5(b) for further details) that prevent us from redeeming in the near term and therefore we have classified these investments as Level 3. | ||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, our direct investments in CLO - Equities were classified within Level 3 as we estimated the fair value for these securities using an income approach valuation technique (discounted cash flow model) due to the lack of observable and relevant trades in the secondary markets. | ||||||||||||||||||||||||||||||||||||||||||
Short-Term Investments | ||||||||||||||||||||||||||||||||||||||||||
Short-term investments primarily comprise highly liquid securities with maturities greater than three months but less than one year from the date of purchase. These securities are classified within Level 2 because these securities are typically not actively traded due to their approaching maturity and, as such, their amortized cost approximates fair value. | ||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments | ||||||||||||||||||||||||||||||||||||||||||
Our foreign currency forward contracts and interest rate swaps are customized to our economic hedging strategies and trade in the over-the-counter derivative market. We use the market approach valuation technique to estimate the fair value for these derivatives based on significant observable market inputs from third party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. Accordingly, we classified these derivatives within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
We also participate in non-exchange traded derivative-based risk management products addressing weather risks. We use observable market inputs and unobservable inputs in combination with industry or internally-developed valuation and forecasting techniques to determine fair value. We classify these instruments within Level 3. | ||||||||||||||||||||||||||||||||||||||||||
Cash Settled Awards | ||||||||||||||||||||||||||||||||||||||||||
Cash settled awards comprise restricted stock units that form part of our compensation program. Although the fair value of these awards is determined using observable quoted market prices in active markets, the stock units themselves are not actively traded. Accordingly, we have classified these liabilities within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
The table below presents the financial instruments measured at fair value on a recurring basis: | ||||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Other Observable | Unobservable | Value | |||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,119,632 | $ | 269,066 | $ | — | $ | 1,388,698 | ||||||||||||||||||||||||||||||||||
Non-U.S. government | — | 1,176,382 | — | 1,176,382 | ||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 3,608,238 | — | 3,608,238 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | — | 2,448,827 | — | 2,448,827 | ||||||||||||||||||||||||||||||||||||||
CMBS | — | 793,396 | 4,018 | 797,414 | ||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS | — | 67,567 | — | 67,567 | ||||||||||||||||||||||||||||||||||||||
ABS | — | 922,652 | 30,799 | 953,451 | ||||||||||||||||||||||||||||||||||||||
Municipals | — | 1,545,750 | — | 1,545,750 | ||||||||||||||||||||||||||||||||||||||
1,119,632 | 10,831,878 | 34,817 | 11,986,327 | |||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||
Common stocks | 438,318 | — | — | 438,318 | ||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 138,847 | — | — | 138,847 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. bond mutual funds | — | 124,822 | — | 124,822 | ||||||||||||||||||||||||||||||||||||||
577,165 | 124,822 | — | 701,987 | |||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | — | 488,755 | 461,055 | 949,810 | ||||||||||||||||||||||||||||||||||||||
Direct lending funds | — | — | 22,134 | 22,134 | ||||||||||||||||||||||||||||||||||||||
CLO-Equities | — | — | 73,866 | 73,866 | ||||||||||||||||||||||||||||||||||||||
— | 488,755 | 557,055 | 1,045,810 | |||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 46,212 | — | 46,212 | ||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | — | 6,824 | 984 | 7,808 | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,696,797 | $ | 11,498,491 | $ | 592,856 | $ | 13,788,144 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | $ | — | $ | 1,152 | $ | 815 | $ | 1,967 | ||||||||||||||||||||||||||||||||||
Cash settled awards (see Note 16) | — | 8,693 | — | 8,693 | ||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 9,845 | $ | 815 | $ | 10,660 | ||||||||||||||||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,094,220 | $ | 328,665 | $ | — | $ | 1,422,885 | ||||||||||||||||||||||||||||||||||
Non-U.S. government | — | 1,104,576 | — | 1,104,576 | ||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 3,874,832 | 1,550 | 3,876,382 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | — | 2,659,908 | — | 2,659,908 | ||||||||||||||||||||||||||||||||||||||
CMBS | — | 835,788 | 4,296 | 840,084 | ||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS | — | 94,089 | 1,110 | 95,199 | ||||||||||||||||||||||||||||||||||||||
ABS | — | 579,231 | 63,975 | 643,206 | ||||||||||||||||||||||||||||||||||||||
Municipals | — | 1,285,809 | — | 1,285,809 | ||||||||||||||||||||||||||||||||||||||
1,094,220 | 10,762,898 | 70,931 | 11,928,049 | |||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||
Common stocks | 443,398 | — | — | 443,398 | ||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 119,161 | — | — | 119,161 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. bond mutual funds | — | 103,989 | — | 103,989 | ||||||||||||||||||||||||||||||||||||||
562,559 | 103,989 | — | 666,548 | |||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | — | 421,006 | 359,996 | 781,002 | ||||||||||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
CLO-Equities | — | — | 62,435 | 62,435 | ||||||||||||||||||||||||||||||||||||||
— | 421,006 | 422,431 | 843,437 | |||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 108,860 | — | 108,860 | ||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | — | 5,838 | — | 5,838 | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,656,779 | $ | 11,402,591 | $ | 493,362 | $ | 13,552,732 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | $ | — | $ | 3,737 | $ | — | $ | 3,737 | ||||||||||||||||||||||||||||||||||
Cash settled awards (see Note 16) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 3,737 | $ | — | $ | 3,737 | ||||||||||||||||||||||||||||||||||
During 2013 and 2012, we had no transfers between Levels 1 and 2. | ||||||||||||||||||||||||||||||||||||||||||
Level 3 Fair Value Measurements | ||||||||||||||||||||||||||||||||||||||||||
Except for hedge funds, direct lending funds and our CLO fund priced using NAV as a practical expedient and certain fixed maturities priced using broker-dealer quotes (underlying inputs are not available), the following table quantifies the significant unobservable inputs we have used in estimating fair value at December 31, 2013 for our investments classified as Level 3 in the fair value hierarchy. These significant unobservable inputs have not changed significantly from December 31, 2012. Where appropriate, this table has been reconciled back to the asset class' total Level 3 holdings. | ||||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted | ||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||
ABS - CLO Debt | $ | 29,944 | Discounted cash flow | Credit spreads | 3.3% - 4.6% | 3.70% | ||||||||||||||||||||||||||||||||||||
Illiquidity discount (1) | 5% | 5% | ||||||||||||||||||||||||||||||||||||||||
855 | Broker-dealer quote | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||||||
$ | 30,799 | |||||||||||||||||||||||||||||||||||||||||
Other investments - CLO Equities | $ | 39,706 | Discounted cash flow | Default rates | 4.0% - 5.0% | 4.40% | ||||||||||||||||||||||||||||||||||||
Loss severity rate | 53.50% | 53.50% | ||||||||||||||||||||||||||||||||||||||||
Collateral spreads | 2.6% - 3.4% | 3.30% | ||||||||||||||||||||||||||||||||||||||||
Estimated maturity dates | 2.1 - 4.6 years | 4.2 years | ||||||||||||||||||||||||||||||||||||||||
34,160 | Net asset value | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||||||
$ | 73,866 | |||||||||||||||||||||||||||||||||||||||||
Derivatives - Weather derivatives, net | $ | 169 | Simulation model | Weather curve | 525 - 4,750(2) | n/a (3) | ||||||||||||||||||||||||||||||||||||
Weather standard deviation | 94 - 290(2) | n/a (3) | ||||||||||||||||||||||||||||||||||||||||
(1) Judgmentally determined based on limited trades of similar securities observed in the secondary markets. | ||||||||||||||||||||||||||||||||||||||||||
(2) Measured in Heating Degree Days ("HDD") which is the number of degrees the daily temperature is below a reference temperature. The cumulative HDD for the duration of the derivatives contract is compared to the strike value to determine the necessary settlement. | ||||||||||||||||||||||||||||||||||||||||||
-3 | Due to the diversity of the portfolio, the range of unobservable inputs is widespread; therefore, presentation of a weighted average is not useful. Weather parameters may include various temperature and/or precipitation measures that will naturally vary by geographic location of each counterparty's operations. | |||||||||||||||||||||||||||||||||||||||||
Our CLO Debt represent holdings of investment-grade debt tranches within collateralized loan obligations with underlying collateral of loans originated primarily by U.S. corporations. The CLO Debt in the table represent securities where broker-dealer quotes are unavailable so we estimate fair value through the use of a discounted cash flow model (income approach). This model estimates fair values by discounting the estimated cash flows based on current credit spreads for similar securities, derived from observable offer prices. As these securities are thinly traded in the secondary market, we apply an illiquidity discount to these discounted cash flows in developing our estimate of fair value. Significant increases (decreases) in either of the significant unobservable inputs (credit spread, illiquidity discount) in isolation would result in lower (higher) fair value estimates for our CLO Debt. The interrelationship between these inputs is insignificant. These inputs are updated on a quarterly basis and the reasonableness of the resulting prices is assessed through a comparison to observable offer prices for similar securities. | ||||||||||||||||||||||||||||||||||||||||||
The CLO - Equities market continues to be mostly inactive with only a small number of transactions being observed in the market and fewer still involving transactions in our CLO - Equities. Accordingly, we continue to rely on the use of our internal discounted cash flow model (income approach) to estimate fair value of our direct investments in CLO - Equities. Of the significant inputs into this model, the default and loss severity rates are the most judgmental unobservable market inputs to which the valuation of CLO - Equities is most sensitive. A significant increase (decrease) in either of these significant inputs in isolation would result in lower (higher) fair value estimates for direct investments in our CLO - Equities and, in general, a change in default rate assumptions will be accompanied by a directionally similar change in loss severity rate assumptions. Collateral spreads and estimated maturity dates are less judgmental inputs as they are based on the historical average of actual spreads and the weighted average life of the current underlying portfolios, respectively. A significant increase (decrease) in either of these significant inputs in isolation would result in higher (lower) fair value estimates for direct investments in our CLO - Equities. In general, these inputs have no significant interrelationship with each other or with default and loss severity rates. | ||||||||||||||||||||||||||||||||||||||||||
On a quarterly basis, our valuation processes for both CLO Debt and CLO - Equities include a review of the underlying cash flows and key assumptions used in the discounted cash flow models. We review and update the above significant unobservable inputs based on information obtained from secondary markets, including from the managers of the CLOs we hold. These inputs are the responsibility of management and, in order to ensure fair value measurement is applied consistently and in accordance with U.S. GAAP, we update our assumptions through regular communication with industry participants and ongoing monitoring of the deals in which we participate (e.g. default and loss severity rate trends), we maintain a current understanding of the market conditions, historical results, as well as emerging trends that may impact future cash flows. By maintaining this current understanding, we are able to assess the reasonableness of the inputs we ultimately use in our models. | ||||||||||||||||||||||||||||||||||||||||||
Weather derivatives relate to non-exchange traded risk management products addressing weather risks. We use observable market inputs and unobservable inputs in combination with industry or internally-developed simulation models to determine fair value; these models may reference market price information for similar instruments. The pricing models are internally reviewed by Risk Management personnel prior to implementation and are reviewed periodically thereafter. | ||||||||||||||||||||||||||||||||||||||||||
Observable and unobservable inputs to these models vary by contract type and would typically include the following: | ||||||||||||||||||||||||||||||||||||||||||
• | Observable inputs: market prices for similar instruments, notional, option strike, term to expiry, contractual limits; | |||||||||||||||||||||||||||||||||||||||||
• | Unobservable inputs: correlation; and | |||||||||||||||||||||||||||||||||||||||||
• | Both observable and unobservable inputs: weather curves, weather standard deviation. | |||||||||||||||||||||||||||||||||||||||||
In general, weather curves are the most significant contributing input to fair value determination; changes in this variable can result in result in higher or lower fair value depending on the underlying position. In addition, changes in any or all of the unobservable inputs identified above may contribute positively or negatively to overall portfolio value. The correlation input will quantify the interrelationship, if any, amongst the other variables. | ||||||||||||||||||||||||||||||||||||||||||
The following tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: | ||||||||||||||||||||||||||||||||||||||||||
Opening | Transfers | Transfers | Included in | Included | Purchases | Sales | Settlements/ | Closing | Change in | |||||||||||||||||||||||||||||||||
Balance | into | out of | earnings (1) | in OCI (2) | Distributions | Balance | unrealized | |||||||||||||||||||||||||||||||||||
Level 3 | Level 3 | investment | ||||||||||||||||||||||||||||||||||||||||
gain/loss (3) | ||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 1,550 | $ | — | $ | — | $ | 1,550 | $ | — | $ | — | $ | — | $ | (3,100 | ) | $ | — | $ | — | |||||||||||||||||||||
Non-Agency RMBS | 1,110 | — | (1,222 | ) | — | 135 | — | — | (23 | ) | — | — | ||||||||||||||||||||||||||||||
CMBS | 4,296 | — | — | — | (278 | ) | — | — | — | 4,018 | — | |||||||||||||||||||||||||||||||
ABS | 63,975 | — | — | (111 | ) | 1,794 | — | — | (34,859 | ) | 30,799 | — | ||||||||||||||||||||||||||||||
70,931 | — | (1,222 | ) | 1,439 | 1,651 | — | — | (37,982 | ) | 34,817 | — | |||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 359,996 | — | — | 58,293 | — | 86,138 | — | (43,372 | ) | 461,055 | 58,293 | |||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | (125 | ) | — | 22,317 | — | (58 | ) | 22,134 | (125 | ) | |||||||||||||||||||||||||||||
CLO-Equities | 62,435 | — | — | 27,898 | — | 34,016 | — | (50,483 | ) | 73,866 | 27,898 | |||||||||||||||||||||||||||||||
422,431 | — | — | 86,066 | — | 142,471 | — | (93,913 | ) | 557,055 | 86,066 | ||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | 2,084 | — | (1,100 | ) | — | — | 984 | 2,084 | |||||||||||||||||||||||||||||||
— | — | — | 2,084 | — | (1,100 | ) | — | — | 984 | 2,084 | ||||||||||||||||||||||||||||||||
Total assets | $ | 493,362 | $ | — | $ | (1,222 | ) | $ | 89,589 | $ | 1,651 | $ | 141,371 | $ | — | $ | (131,895 | ) | $ | 592,856 | $ | 88,150 | ||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | 98 | — | 717 | — | — | 815 | 98 | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | 98 | $ | — | $ | 717 | $ | — | $ | — | $ | 815 | $ | 98 | ||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 1,550 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,550 | $ | — | ||||||||||||||||||||||
Non-Agency RMBS | — | 1,110 | — | — | — | — | — | — | 1,110 | — | ||||||||||||||||||||||||||||||||
CMBS | — | 4,296 | — | — | — | — | — | — | 4,296 | — | ||||||||||||||||||||||||||||||||
ABS | 49,328 | 10,539 | — | — | 5,112 | — | — | (1,004 | ) | 63,975 | — | |||||||||||||||||||||||||||||||
50,878 | 15,945 | — | — | 5,112 | — | — | (1,004 | ) | 70,931 | — | ||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 346,244 | — | (9,435 | ) | 33,301 | — | — | (2,835 | ) | (7,279 | ) | 359,996 | 33,301 | |||||||||||||||||||||||||||||
Direct lending funds | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
CLO-Equities | 66,560 | — | — | 31,108 | — | — | — | (35,233 | ) | 62,435 | 31,108 | |||||||||||||||||||||||||||||||
412,804 | — | (9,435 | ) | 64,409 | — | — | (2,835 | ) | (42,512 | ) | 422,431 | 64,409 | ||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total assets | $ | 463,682 | $ | 15,945 | $ | (9,435 | ) | $ | 64,409 | $ | 5,112 | $ | — | $ | (2,835 | ) | $ | (43,516 | ) | $ | 493,362 | $ | 64,409 | |||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
-1 | Gains and losses included in earnings on fixed maturities are included in net realized investment gains (losses). Gains and (losses) included in earnings on other investments are included in net investment income. Gains (losses) on weather derivatives included in earnings are included in other insurance-related income. | |||||||||||||||||||||||||||||||||||||||||
-2 | Gains and losses included in other comprehensive income (“OCI”) on fixed maturities are included in unrealized gains (losses) arising during the period. | |||||||||||||||||||||||||||||||||||||||||
-3 | Change in unrealized investment gain/(loss) relating to assets held at the reporting date. | |||||||||||||||||||||||||||||||||||||||||
The transfers into and out of fair value hierarchy levels reflect the fair value of the securities at the end of the reporting period. | ||||||||||||||||||||||||||||||||||||||||||
Transfers into Level 3 from Level 2 | ||||||||||||||||||||||||||||||||||||||||||
The transfers to Level 3 from Level 2 made during 2012 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities. No such transfers were made during 2013. | ||||||||||||||||||||||||||||||||||||||||||
Transfers out of Level 3 into Level 2 | ||||||||||||||||||||||||||||||||||||||||||
The transfers from Level 3 to Level 2 made during 2013 were primarily due to the availability of observable market inputs and multiple quotes from pricing vendors and broker-dealers. The transfer from Level 3 to Level 2 in 2012 related to certain hedge funds where we had the ability to liquidate holdings at the reported NAV in the near term due to the expiry of lockup provisions. | ||||||||||||||||||||||||||||||||||||||||||
Financial Instruments Not Carried at Fair Value | ||||||||||||||||||||||||||||||||||||||||||
U.S. GAAP guidance over disclosures about the fair value of financial instruments are also applicable to financial instruments not carried at fair value, except for certain financial instruments, including insurance contracts. | ||||||||||||||||||||||||||||||||||||||||||
The carrying values of cash equivalents (including restricted amounts), accrued investment income, receivable for investments sold, certain other assets, payable for investments purchased and certain other liabilities approximated their fair values at December 31, 2013, due to their respective short maturities. As these financial instruments are not actively traded, their respective fair values are classified within Level 2. | ||||||||||||||||||||||||||||||||||||||||||
At December 31, 2013, our senior notes are recorded at amortized cost with a carrying value of $996 million (2012: $995 million) and have a fair value of $1,073 million (2012: $1,091 million). The fair values of these securities were obtained from a third party pricing service and pricing was based on the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of our senior notes are classified within Level 2. |
DERIVATIVE_INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
DERIVATIVE INSTRUMENTS [Text Block] | ' | |||||||||||||||||||||||||
The following table summarizes the balance sheet classification of derivatives recorded at fair value. The notional amount of derivative contracts represents the basis upon which pay or receive amounts are calculated and is presented in the table to quantify the volume of our derivative activities. Notional amounts are not reflective of credit risk. | ||||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||
Derivative | Asset | Liability | Derivative | Asset | Liability | |||||||||||||||||||||
Notional | Derivative | Derivative | Notional | Derivative | Derivative | |||||||||||||||||||||
Amount | Fair | Fair | Amount | Fair | Fair | |||||||||||||||||||||
Value(1) | Value(1) | Value(1) | Value(1) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Relating to investment portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 254,023 | 1,214 | 1,032 | $ | 287,819 | 1,067 | 2,733 | ||||||||||||||||||
Interest rate swaps | 281,250 | 873 | — | — | — | — | ||||||||||||||||||||
Relating to underwriting portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | 390,663 | 4,737 | 120 | 476,191 | 4,771 | 1,004 | ||||||||||||||||||||
Weather-related contracts | 24,451 | 984 | 815 | — | — | — | ||||||||||||||||||||
Total derivatives | $ | 7,808 | $ | 1,967 | $ | 5,838 | $ | 3,737 | ||||||||||||||||||
-1 | Asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||||||||||||||
Offsetting Assets and Liabilities | ||||||||||||||||||||||||||
Our derivative instruments are generally traded under International Swaps and Derivatives Association master netting agreements, which establish terms that apply to all transactions. In the event of a bankruptcy or other stipulated event, master netting agreements provide that individual positions be replaced with a new amount, usually referred to as the termination amount, determined by taking into account market prices and converting into a single currency. Effectively, this contractual close-out netting reduces credit exposure from gross to net exposure. The table below presents a reconciliation of our gross derivative assets and liabilities to the net amounts presented in our Consolidated Balance Sheets, with the difference being attributable to the impact of master netting agreements. | ||||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Net | Gross Amounts | Gross Amounts Offset | Net | |||||||||||||||||||||
Amounts(1) | Amounts(1) | |||||||||||||||||||||||||
Derivative assets | $ | 9,796 | $ | (1,988 | ) | $ | 7,808 | $ | 6,476 | $ | (639 | ) | $ | 5,838 | ||||||||||||
Derivative liabilities | 3,955 | (1,988 | ) | 1,967 | 4,376 | (639 | ) | 3,737 | ||||||||||||||||||
-1 | Net asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||||||||||||||
Refer to Note 5 - Investments for information on reverse repurchase agreements. | ||||||||||||||||||||||||||
Fair Value Hedges | ||||||||||||||||||||||||||
During 2012, we sold all available for sale fixed maturities in the portfolios that qualified for hedge accounting and settled all of the associated foreign exchange forward contracts. The hedges were designated and qualified as fair value hedges, resulting in the net impact of the hedges recognized in net realized investment gains (losses). | ||||||||||||||||||||||||||
The following table provides the total impact on earnings of applying hedge accounting for foreign exchange contracts designated as fair value hedges along with the impact of the related hedged investment portfolio for the periods indicated: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 10,853 | $ | 11,682 | ||||||||||||||||||||
Hedged investment portfolio | — | (3,099 | ) | (16,085 | ) | |||||||||||||||||||||
Hedge ineffectiveness recognized in earnings | $ | — | $ | 7,754 | $ | (4,403 | ) | |||||||||||||||||||
Derivative Instruments not Designated as Hedging Instruments | ||||||||||||||||||||||||||
a) Relating to Investment Portfolio | ||||||||||||||||||||||||||
Foreign Currency Risk | ||||||||||||||||||||||||||
Within our investment portfolio we are exposed to foreign currency risk. Accordingly, the fair values for our investment portfolio are partially influenced by the change in foreign exchange rates. We may enter into foreign currency forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. | ||||||||||||||||||||||||||
In addition, our external equity investment managers have the discretion to hold foreign currency exposures as part of their total return strategy. | ||||||||||||||||||||||||||
Interest Rate Risk | ||||||||||||||||||||||||||
Our investment portfolio contains a large percentage of fixed maturities which exposes us to significant interest rate risk. As part of our overall management of this risk, we may use interest rate swaps. The interest rate swaps held at December 31, 2013 convert part of our overall fixed rate exposure to a variable rate exposure which effectively reduces the duration of our overall portfolio. | ||||||||||||||||||||||||||
b) Relating to Underwriting Portfolio | ||||||||||||||||||||||||||
Foreign Currency Risk | ||||||||||||||||||||||||||
Our (re)insurance subsidiaries and branches operate in various foreign countries. Consequently, some of our business is written in currencies other than the U.S. dollar and, therefore, our underwriting portfolio is exposed to significant foreign currency risk. We manage foreign currency risk by seeking to match our foreign-denominated net liabilities under (re)insurance contracts with cash and investments that are denominated in such currencies. We may also use derivative instruments, specifically forward contracts and currency options, to economically hedge foreign currency exposures. | ||||||||||||||||||||||||||
Weather Risk | ||||||||||||||||||||||||||
During 2013, we began to write derivative-based risk management products designed to address weather risks with the objective of generating profits on a portfolio basis. The majority of this business consists of receiving a payment at contract inception in exchange for bearing the risk of variations in a quantifiable weather-related phenomenon, such as temperature. Where a client wishes to minimize the upfront payment, these transactions may be structured as swaps or collars. In general, our portfolio of such derivative contracts is of short duration, with contracts being predominantly seasonal in nature. In order to economically hedge a portion of this portfolio, we may also purchase weather derivatives. | ||||||||||||||||||||||||||
The total unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges were as follows: | ||||||||||||||||||||||||||
Location of Gain (Loss) Recognized | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||||||
in Income on Derivative | Income on Derivative | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Relating to investment portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Net realized investment gains | $ | 10,843 | $ | (9,170 | ) | $ | 4,431 | ||||||||||||||||||
Interest rate swaps | Net realized investment gains | (3,112 | ) | — | — | |||||||||||||||||||||
Relating to underwriting portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Foreign exchange gains (losses) | 1,690 | 26,612 | 33,893 | ||||||||||||||||||||||
Currency collar options | Foreign exchange gains (losses) | — | — | 267 | ||||||||||||||||||||||
Weather-related contracts | Other insurance related income | 1,987 | — | — | ||||||||||||||||||||||
Total | $ | 11,408 | $ | 17,442 | $ | 38,591 | ||||||||||||||||||||
RESERVE_FOR_LOSSES_AND_LOSS_EX
RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Insurance Loss Reserves [Abstract] | ' | |||||||||||||
RESERVE FOR LOSSES AND LOSS EXPENSES [Text Block] | ' | |||||||||||||
Our reserve for losses and loss expenses comprise the following: | ||||||||||||||
As of December 31, | 2013 | 2012 | ||||||||||||
Reserve for reported losses and loss expenses | $ | 3,499,817 | $ | 3,272,682 | ||||||||||
Reserve for losses incurred but not reported | 6,082,323 | 5,786,049 | ||||||||||||
Reserve for losses and loss expenses | $ | 9,582,140 | $ | 9,058,731 | ||||||||||
The following table presents a reconciliation of our beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses for the periods indicated: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Gross reserve for losses and loss expenses, beginning of period | $ | 9,058,731 | $ | 8,425,045 | $ | 7,032,375 | ||||||||
Less reinsurance recoverable on unpaid losses, beginning of period | (1,825,617 | ) | (1,736,823 | ) | (1,540,633 | ) | ||||||||
Net reserve for unpaid losses and loss expenses, beginning of period | 7,233,114 | 6,688,222 | 5,491,742 | |||||||||||
Net incurred losses and loss expenses related to: | ||||||||||||||
Current year | 2,353,631 | 2,340,868 | 2,932,513 | |||||||||||
Prior years | (219,436 | ) | (244,840 | ) | (257,461 | ) | ||||||||
2,134,195 | 2,096,028 | 2,675,052 | ||||||||||||
Net paid losses and loss expenses related to: | ||||||||||||||
Current year | (318,006 | ) | (322,836 | ) | (509,075 | ) | ||||||||
Prior years | (1,373,459 | ) | (1,299,384 | ) | (953,035 | ) | ||||||||
(1,691,465 | ) | (1,622,220 | ) | (1,462,110 | ) | |||||||||
Foreign exchange and other | 6,184 | 71,084 | (16,462 | ) | ||||||||||
Net reserve for unpaid losses and loss expenses, end of period | 7,682,028 | 7,233,114 | 6,688,222 | |||||||||||
Reinsurance recoverable on unpaid losses, end of period | 1,900,112 | 1,825,617 | 1,736,823 | |||||||||||
Gross reserve for losses and loss expenses, end of period | $ | 9,582,140 | $ | 9,058,731 | $ | 8,425,045 | ||||||||
We write business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in our financial results. During 2013, 2012 and 2011, respectively, we recognized aggregate net losses and loss expenses of $201 million, $438 million and $944 million in relation to natural catastrophe and weather-related events. | ||||||||||||||
Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. Such development is summarized by segment in the following table: | ||||||||||||||
Insurance | Reinsurance | Total | ||||||||||||
Year ended December 31, 2013 | $ | 50,355 | $ | 169,081 | $ | 219,436 | ||||||||
Year ended December 31, 2012 | 122,209 | 122,631 | 244,840 | |||||||||||
Year ended December 31, 2011 | 103,014 | 154,447 | 257,461 | |||||||||||
Overall, the majority of the net favorable prior year reserve development related to short-tail lines of business. Net favorable prior year reserve development for liability reinsurance also contributed significantly in 2013 with professional lines contributing notably in 2012 and 2011. Favorable development in 2013 was partially offset by adverse development in the insurance professional lines. | ||||||||||||||
The underlying exposures in our property, marine and aviation reserving classes within our insurance segment and the property reserving class within our reinsurance segment largely relate to short-tail business. Development from these classes contributed $162 million, $186 million and $178 million of the total net favorable prior year reserve development in 2013, 2012 and 2011, respectively, and primarily reflected the recognition of better than expected loss emergence. | ||||||||||||||
In the first quarter of 2013, we began to give weight to actuarial methods that reflect our actual experience for liability reinsurance business, as we believe that our older accident years are now at a stage of expected development where such methods will produce meaningful actuarial indications. During 2013, we recognized $85 million of net favorable prior year development, primarily reflecting the greater weight management is giving to experience based indications and our experience which has been favorable for the 2004 through 2008 accident years. | ||||||||||||||
Our professional lines business recognized $29 million of net adverse development in 2013. This increase in the reserves was due to a $51 million adverse development in the insurance segment, reflecting worse than expected loss experience for the 2011-2012 accident years, due to worse than expected loss experience on certain parts of our U.S. D&O business, and the 2008-2009 accident years, due to developments on certain global financial crisis-related claims. Comparably in 2012 and 2011 professional lines contributed net favorable prior year reserve developments of $54 million and $105 million, respectively. The 2012 and 2011 favorable prior year reserve developments were driven by increased weight being given to experience-based actuarial methods in selecting our ultimate loss estimates for accident years 2009 and prior. During 2013, the transition to the experience-based actuarial methods also had a favorable impact on 2009 and prior years, which partially offset the adverse development discussed above. | ||||||||||||||
The frequency and severity of natural catastrophe and weather activity was high in recent years and our December 31, 2013 net reserve for losses and loss expenses continues to include estimated amounts for numerous events. We caution that the magnitude and/or complexity of losses arising from certain of these events, in particular Storm Sandy, the Japanese earthquake and tsunami and the three New Zealand earthquakes, inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at our estimated net reserves for losses and loss expenses. As a result, our actual losses for these events may ultimately differ materially from our current estimates. |
REINSURANCE
REINSURANCE | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ' | |||||||||||||||||||||||||
REINSURANCE [Text Block] | ' | |||||||||||||||||||||||||
We purchase treaty and facultative reinsurance to reduce exposure to significant losses. Facultative reinsurance provides coverage for all or a portion of the losses incurred for a single policy and we separately negotiate each facultative contract. Treaty reinsurance provides coverage for a specified type or category of risks. Our treaty reinsurance agreements provide this coverage on either an excess of loss or a proportional basis. Excess of loss covers provide a contractually set amount of coverage after a specified loss amount has been reached. These covers can be purchased on a package policy basis, which provide us with coverage for a number of lines of business within one contract. In contrast, proportional covers provide us with a specified percentage of coverage from the first dollar of loss. | ||||||||||||||||||||||||||
All of these reinsurance covers provide us the right to recover of a portion of specified losses and loss expenses from reinsurers. However, to the extent that our reinsurers do not meet their obligations under these agreements due to solvency issues, contractual disputes or other reasons, we remain liable. We predominantly cede our business to reinsurers rated A- or better by A.M. Best. | ||||||||||||||||||||||||||
Gross and net premiums written and earned were as follows: | ||||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Premiums | Premiums | Premiums | Premiums | Premiums | Premiums | |||||||||||||||||||||
written | earned | written | earned | written | earned | |||||||||||||||||||||
Gross | $ | 4,697,041 | $ | 4,459,269 | $ | 4,139,643 | $ | 4,141,037 | $ | 4,096,153 | $ | 3,973,956 | ||||||||||||||
Ceded | (768,841 | ) | (752,204 | ) | (802,187 | ) | (725,574 | ) | (676,719 | ) | (658,995 | ) | ||||||||||||||
Net | $ | 3,928,200 | $ | 3,707,065 | $ | 3,337,456 | $ | 3,415,463 | $ | 3,419,434 | $ | 3,314,961 | ||||||||||||||
During the year ended December 31, 2013, we recognized ceded losses and loss expenses of $415 million (2012: $396 million; 2011: $450 million). | ||||||||||||||||||||||||||
Our provision for unrecoverable reinsurance was $18 million at December 31, 2013 (2012: $16 million). At December 31, 2013, 98.8% (2012: 98.8%) of our gross reinsurance recoverables were collectible from reinsurers rated A- or better by A.M. Best. |
DEBT_AND_FINANCING_ARRANGEMENT
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
DEBT AND FINANCING ARRANGEMENTS [Text Block] | ' | |
a) | Senior Notes | |
On November 15, 2004, AXIS Capital issued $500 million aggregate principal amount of 5.75% senior unsecured debt (the “5.75% Senior Notes”) at an issue price of 99.785%, generating net proceeds of $496 million. Interest on the 5.75% Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2005. Unless previously redeemed, the 5.75% Senior Notes will mature on December 1, 2014. | ||
On March 23, 2010, AXIS Specialty Finance LLC (“AXIS Specialty Finance”), a 100% owned finance subsidiary, issued $500 million aggregate principal amount of 5.875% senior unsecured debt (the “5.875% Senior Notes” and, together with the 5.75% Senior Notes, the “Senior Notes”) at an issue price of 99.624%. The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $495 million. Interest on the 5.875% Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2010. Unless previously redeemed, the 5.875% Senior Notes will mature on June 1, 2020. The 5.875% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance under the 5.875% Senior Notes. AXIS Capital’s obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital. | ||
We have the option to redeem the Senior Notes at any time and from time to time, in whole or in part, at a “make-whole” redemption price, which is equal to the greater of the aggregate principal amount or the sum of the present values of the remaining scheduled payments of principal and interest. The related indentures contain various covenants, including limitations on liens on the stock of restricted subsidiaries, restrictions as to the disposition of the stock of restricted subsidiaries and limitations on mergers and consolidations. We were in compliance with all the covenants contained in the indentures at December 31, 2013. | ||
Interest expense recognized in relation to our Senior Notes includes interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses are amortized over the period of time during which the Senior Notes are outstanding. During 2013, we incurred interest expense of $59 million (2012: $59 million, 2011: $59 million). | ||
b) | Credit Facilities | |
On March 26, 2013, in advance of the scheduled August expiration, we terminated and replaced our previously existing credit facility. AXIS Capital and certain subsidiaries are now party to a $250 million credit facility (the "Credit Facility"), which was issued by a syndication of lenders pursuant to a Credit Agreement and other ancillary documents (together, the "Facility Documents") and will expire in March 2017. At the request of the Company and subject to the satisfaction of certain conditions, the aggregate commitment available under the Credit Facility may be increased by up to $150 million. Under the terms of the Credit Facility, loans are available for general corporate purposes and letters of credit may be issued in the ordinary course of business, with total usage not to exceed the aggregate commitment available. Interest on loans issued under the Credit Facility is payable based on underlying market rates at the time of loan issuance. While loans under the Credit Facility are unsecured, we have the option to issue letters of credit on a secured basis in order to reduce associated fees. Letters of credit issued under the Credit Facility would principally be used to support the (re)insurance obligations of our operating subsidiaries. Each of AXIS Capital, AXIS Specialty Finance and AXIS Specialty Holdings Bermuda Limited guarantees the obligations of the other parties to the Credit Facility. The Credit Facility is subject to certain non-financial covenants, including limitations on fundamental changes, the incurrence of additional indebtedness and liens and certain transactions with affiliates and investments, as defined in the Facility Documents. The Credit Facility also requires compliance with certain financial covenants, including a maximum debt to capital ratio and a minimum consolidated net worth requirement. In addition, each of AXIS Capital’s material (re)insurance subsidiaries party to the Credit Facility must maintain a minimum A.M. Best Company, Inc. financial strength rating. In the event of default, including a breach of these covenants, the lenders may exercise certain remedies including the termination of the Credit Facility, the declaration of all principal and interest amounts related to Credit Facility loans to be immediately due and the requirement that all outstanding letters of credit be collateralized. | ||
On September 18, 2013, we entered into an amendment to the Credit Facility in order to permit AXIS Capital and its subsidiaries to enter into swap contracts and other arrangements related to weather derivative transactions. All other material terms and conditions remained unchanged. | ||
On November 6, 2013, AXIS Capital's subsidiary, AXIS Specialty Limited, entered into a $170 million secured letter of credit facility (the "Lloyd's LOC Facility") with ING Bank N.V., London Branch ("ING") pursuant to a Letter of Credit Facility Agreement and Security Agreement (collectively, the "Lloyd's Facility Documents"). The Lloyd's LOC Facility is fully utilized and meets the Funds at Lloyd's requirements for the Company's subsidiary, AXIS Corporate Capital UK Limited to support the underwriting capacity of the Company's Lloyd's syndicate, AXIS Syndicate 1686, for the 2014 underwriting year of account. The Letter of Credit issued under the Lloyd's LOC Facility will expire no later than July 31, 2018. The Lloyd's Facility Documents contain customary covenants with which the Company must comply, including a requirement to maintain sufficient collateral to fully secure any issued Letter of Credit. In case of an event of default under the Lloyd's Facility Documents, ING may exercise certain remedies, including the exercise of sole and exclusive control over pledged collateral. | ||
On November 20, 2013, certain of AXIS Capital’s operating subsidiaries entered into an amendment to extend the term of the Company's secured $750 million letter of credit facility (the “LOC Facility”) with Citibank Europe plc (“Citibank”) pursuant to a Master Reimbursement Agreement and other ancillary documents (together, the “LOC Facility Documents”). The LOC Facility may be terminated by Citibank on December 31, 2016 upon thirty days prior notice. Under the terms of the LOC Facility, letters of credit to a maximum aggregate amount of $750 million are available for issuance on behalf of the operating subsidiaries. These letters of credit will principally be used to support the reinsurance obligations of the operating subsidiaries. The LOC Facility is subject to certain covenants, including the requirement to maintain sufficient collateral, as defined in the LOC Facility Documents, to cover all of the obligations under the LOC Facility. Such obligations include contingent reimbursement obligations for outstanding letters of credit and fees payable to Citibank. In the event of default, Citibank may exercise certain remedies, including the exercise of control over pledged collateral and the termination of the availability of the LOC Facility to any or all of the operating subsidiaries party to the LOC Facility Documents. | ||
At December 31, 2013, we had $501 million, $170 million and nil letters of credit outstanding under the LOC Facility, Lloyd's LOC Facility and the Credit Facility, respectively. There was no debt outstanding under the Credit Facility. We were in compliance with all LOC Facility, Lloyd's LOC Facility and Credit Facility covenants at December 31, 2013. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
COMMITMENTS AND CONTINGENCIES [Text Block] | ' | |||||
a) | Concentrations of Credit Risk | |||||
Credit Risk Aggregation | ||||||
We monitor and control the aggregation of credit risk on a consolidated basis by assigning limits on the maximum credit exposure we are willing to assume by single obligors and groups, industry sector, country, region or other inter-dependencies. Our credit exposures are aggregated based on the origin of risk. Limits are based and adjusted on a variety of factors, including the prevailing economic environment and the nature of the underlying credit exposures. Our credit aggregation measurement and reporting process is facilitated by an exposure database, which contains relevant information on counterparties and credit risk; we also license third party databases to provide credit risk assessments. | ||||||
Credit risk aggregation is also managed through minimizing overlaps in underwriting, financing and investing activities. | ||||||
The assets that potentially subject us to concentrations of credit risk consist principally of cash and investments, reinsurance recoverable and (re)insurance premiums receivable balances, as described below: | ||||||
Cash and Investments | ||||||
In order to mitigate concentration and operational risks related to cash and cash equivalents, we limit the maximum amount of cash that can be deposited with a single counterparty and additionally limit acceptable counterparties based on current rating, outlook and other relevant factors. | ||||||
Our investment portfolio is managed by external investment managers in accordance with our investment guidelines. We limit credit risk through diversification, issuer exposure limitation graded by ratings and, with respect to custodians, through contractual and other legal remedies. Excluding U.S. government and agency securities, we limit our concentration of credit risk to any single corporate issuer to 2% or less of our fixed maturities portfolio for securities rated A- or above and 1% or less of our fixed maturities portfolio for securities rated below A-. At December 31, 2013, we were in compliance with these limits. | ||||||
Reinsurance Recoverable Balances | ||||||
With respect to our reinsurance recoverable balances, we are exposed to the risk of a reinsurer failing to meet its obligations under coverage we have purchased. To mitigate this risk, all reinsurance coverage we purchase is subject to requirements established by our Reinsurance Security Committee. This Committee maintains a list of approved reinsurers, performs credit risk assessments for potential new reinsurers, regularly monitors approved reinsurers with consideration for events which may have a material impact on their creditworthiness, recommends counterparty tolerance levels for different types of ceded business and monitors concentrations of credit risk. The assessment of each reinsurer considers a range of attributes, including a review of financial strength, industry position and other qualitative factors. Generally, the Committee requires that reinsurers who do not meet specified requirements provide collateral. | ||||||
The three largest balances by reinsurer accounted for 14%, 11% and 11% of total reinsurance recoverable on unpaid and paid losses at December 31, 2013 (2012: 13%, 10% and 10%). Amounts related to our reinsurers with the ten largest balances comprised 77% of December 31, 2013 balance (2012: 72%) and had a weighted average A.M. Best rating of A+ (2012: A+). | ||||||
Premiums Receivable Balances | ||||||
The diversity of our client base limits the credit risk associated with our premiums receivable. In addition, for insurance contracts we have contractual rights to cancel coverage for non-payment of premiums and for reinsurance contracts we have contractual rights to offset premiums receivable with corresponding payments for losses and loss expenses. | ||||||
Brokers and other intermediaries collect premiums from customers to be paid to us. We have policies and standards in place to manage and monitor credit risk from intermediaries with a focus on day-to-day monitoring of the largest positions. | ||||||
These contractual rights contribute to the mitigation of credit risk, as does our monitoring of aged receivable balances. In light of these mitigating factors, and considering that a significant portion of our premiums receivable are not currently due based on the terms of the underlying contracts, we do not utilize specific credit quality indicators to monitor our premiums receivable balance. At December 31, 2013, we recorded an allowance for estimated uncollectible premiums receivable of $3 million (2012: $2 million). The corresponding bad debts expense charges for 2013, 2012 and 2011 were insignificant. | ||||||
b) | Brokers | |||||
We produce our business through brokers and direct relationships with insurance companies. During 2013, three brokers accounted for 61% (2012: 61%; 2011: 63%) of our total gross premiums written. Aon Corporation accounted for 26% (2012: 27%; 2011: 27%), Marsh, Inc. (including its subsidiary Guy Carpenter and Company) for 23% (2012: 22%; 2011: 23%), and Willis Group Holdings Ltd. for 12% (2012: 12%; 2011: 13%). No other broker and no one insured or reinsured accounted for more than 10% of our gross premiums written in any of the last three years. | ||||||
c) | Lease Commitments | |||||
We lease office space under operating leases which expire at various dates. We renew and enter into new leases in the ordinary course of business, as required. During 2013, total rent expense with respect to these operating leases was $29 million (2012: $29 million; 2011: $24 million). | ||||||
Future minimum lease payments under our leases are expected to be as follows: | ||||||
Year ended December 31, | ||||||
2014 | $ | 31,207 | ||||
2015 | 27,378 | |||||
2016 | 23,838 | |||||
2017 | 20,881 | |||||
2018 | 17,955 | |||||
Later years | 53,049 | |||||
Total future minimum lease payments | $ | 174,308 | ||||
d) | Reinsurance Purchase Commitment | |||||
We purchase reinsurance coverage for our insurance lines of business. The minimum reinsurance premiums are contractually due in advance on a quarterly basis. Accordingly at December 31, 2013, we have an outstanding reinsurance purchase commitment of $80 million. Actual payments under the reinsurance contracts will depend on the underlying subject premium and may exceed the minimum premium. | ||||||
e) | Legal Proceedings | |||||
From time to time, we are subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against us in the ordinary course of insurance or reinsurance operations; estimated amounts payable under such proceedings are included in the reserve for losses and loss expenses in our Consolidated Balance Sheets. | ||||||
We are not party to any material legal proceedings arising outside the ordinary course of business. |
EARNINGS_PER_COMMON_SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
EARNINGS PER COMMON SHARE [Text Block] | ' | |||||||||||||
The following table sets forth the comparison of basic and diluted earnings per common share: | ||||||||||||||
At and year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Basic earnings per common share | ||||||||||||||
Net income | $ | 727,465 | $ | 547,241 | $ | 46,305 | ||||||||
Less: preferred share dividends | 40,474 | 38,228 | 36,875 | |||||||||||
Less: loss on repurchase of preferred shares | 3,081 | 14,009 | — | |||||||||||
Net income available to common shareholders | 683,910 | 495,004 | 9,430 | |||||||||||
Weighted average common shares outstanding - basic | 113,636 | 122,148 | 122,499 | |||||||||||
Basic earnings per common share | $ | 6.02 | $ | 4.05 | $ | 0.08 | ||||||||
Diluted earnings per common share | ||||||||||||||
Net income available to common shareholders | $ | 683,910 | $ | 495,004 | $ | 9,430 | ||||||||
Weighted average common shares outstanding - basic | 113,636 | 122,148 | 122,499 | |||||||||||
Warrants | — | — | 4,292 | |||||||||||
Stock compensation plans | 1,692 | 1,506 | 1,331 | |||||||||||
Weighted average common shares outstanding - diluted | 115,328 | 123,654 | 128,122 | |||||||||||
Diluted earnings per common share | $ | 5.93 | $ | 4 | $ | 0.07 | ||||||||
Anti-dilutive shares excluded from the dilutive computation | 250 | 614 | 1,134 | |||||||||||
SHAREHOLDERS_EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
SHAREHOLDERS' EQUITY [Text Block] | ' | |||||||||||||
a) | Common Shares | |||||||||||||
At December 31, 2013, and 2012, our authorized share capital was 800,000,000 common shares, par value of $0.0125 per share. | ||||||||||||||
The following table presents our common shares issued and outstanding, excluding restricted shares under our stock compensation plans (see Note 16 – Share-based Compensation): | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Shares issued, balance at beginning of period | 171,867 | 170,159 | 154,912 | |||||||||||
Shares issued | 2,267 | 1,708 | 15,247 | |||||||||||
Total shares issued at end of period | 174,134 | 171,867 | 170,159 | |||||||||||
Treasury shares, balance at beginning of period | (53,947 | ) | (44,571 | ) | (42,519 | ) | ||||||||
Shares repurchased | (10,830 | ) | (9,376 | ) | (2,052 | ) | ||||||||
Shares reissued from treasury | 128 | — | — | |||||||||||
Total treasury shares at end of period | (64,649 | ) | (53,947 | ) | (44,571 | ) | ||||||||
Total shares outstanding | 109,485 | 117,920 | 125,588 | |||||||||||
During 2013, the total cash dividends declared per common share were $1.02 (2012: $0.97; 2011: $0.93). | ||||||||||||||
Warrants | ||||||||||||||
During 2011, our founding shareholders exercised all remaining warrants. These warrants were exercised on a cashless basis pursuant to the terms of the applicable warrant agreements, resulting in a lower number of shares being issued than the number of warrants exercised. Accordingly, we issued 12,893,483 common shares upon the exercise of 19,827,760 warrants. In connection with the warrant exercise, we paid deferred dividends of $93 million to those warrant holders who chose the deferred cash option for dividends declared. | ||||||||||||||
Treasury shares | ||||||||||||||
On December 9, 2013, our Board of Directors authorized a new share repurchase plan for up to $750 million of our common shares through December 31, 2015. The new plan is effective January 1, 2014. | ||||||||||||||
The following table presents our common share repurchase activities, which are held in treasury: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
In the open market: | ||||||||||||||
Total shares | 7,362 | 6,057 | 1,609 | |||||||||||
Total cost | $ | 337,083 | $ | 203,704 | $ | 49,974 | ||||||||
Average price per share(2) | $ | 45.79 | $ | 33.63 | $ | 31.07 | ||||||||
From employees:(1) | ||||||||||||||
Total shares | 468 | 319 | 443 | |||||||||||
Total cost | $ | 19,080 | $ | 10,483 | $ | 15,911 | ||||||||
Average price per share(2) | $ | 40.75 | $ | 32.85 | $ | 35.92 | ||||||||
From founding shareholder:(3) | ||||||||||||||
Total shares | 3,000 | 3,000 | — | |||||||||||
Total cost | $ | 116,100 | $ | 103,500 | $ | — | ||||||||
Average price per share(2) | $ | 38.7 | $ | 34.5 | $ | — | ||||||||
Total | ||||||||||||||
Total shares | 10,830 | 9,376 | 2,052 | |||||||||||
Total cost | $ | 472,263 | $ | 317,687 | $ | 65,885 | ||||||||
Average price per share(2) | $ | 43.61 | $ | 33.88 | $ | 32.11 | ||||||||
-1 | To satisfy withholding tax liabilities upon vesting of restricted stock, restricted stock units, and exercise of stock options. Share repurchases from employees are excluded from the authorized share repurchase plans noted above. | |||||||||||||
-2 | Calculated using whole figures. | |||||||||||||
-3 | We privately negotiated with Trident II, L.P. and affiliated entities to repurchase 3,000,000 (2012: 3,000,000; 2011: none) of our common shares. | |||||||||||||
b) | Preferred Shares | |||||||||||||
Series A Preferred Shares | ||||||||||||||
During October 2005, we issued $250 million of 7.25% Series A preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. In 2012, concurrent with the issuance of our Series C preferred shares (see below), we redeemed 6,000,000 of the 7.25% Series A preferred shares, representing $150 million in aggregate liquidation preference, without accumulation of any undeclared dividends. In connection with this redemption, we recognized a $5 million loss on redemption (calculated as the difference between the redemption price and the carrying value), which was recognized as a reduction in determining our net income available to common shareholders. | ||||||||||||||
During June 2013, we redeemed the remaining 4,000,000 Series A preferred shares outstanding, representing an aggregate liquidation preference of $100 million. In connection with this redemption, we recognized a $3 million loss. | ||||||||||||||
For 2013, the total dividends declared on Series A preferred shares were $0.9063 per share. In 2013, dividends of $1.3594 per share were paid, of which $0.4531 had been declared in 2012. For 2012 and 2011, the total dividends declared and paid on Series A preferred shares were $1.8125 per share. | ||||||||||||||
Series B Preferred Shares | ||||||||||||||
During November 2005, we issued $250 million of 7.50% Series B preferred shares, par value $0.0125 per share, with a liquidation preference of $100.00 per share. We may redeem the shares on or after December 1, 2015 at a redemption price of $100.00 per share. Dividends on the Series B preferred shares if, as and when declared by our board of directors will be payable initially at a fixed rate per annum equal to 7.50% of the liquidation preference on the first day of March, June, September and December of each year, commencing on March 1, 2006, up to but not including December 1, 2015. Commencing on March 1, 2016, the dividend rate on the Series B preferred shares will be payable at a floating rate. During a floating rate period, the floating rate per annum will be reset quarterly at a rate equal to 3.4525% plus the 3 month LIBOR Rate. Dividends on the Series B preferred shares are non-cumulative. | ||||||||||||||
During April 2012, we closed a cash tender offer for any and all of our outstanding 7.50% Series B preferred shares at a purchase price of $102.81 per share. As a result, we purchased 2,471,570 Series B preferred shares for $254 million. In connection with this tender offer, we recognized a $9 million loss on redemption (calculated as the difference between the redemption price and the carrying value), which was recognized as a reduction in determining our net income available to common shareholders. Following the completion of the tender offer, 28,430 Series B preferred shares, representing $3 million in aggregate liquidation preference, remain outstanding. | ||||||||||||||
For 2013, 2012 and 2011, total dividends declared and paid on Series B preferred shares were $7.50 per share. | ||||||||||||||
Series C Preferred Shares | ||||||||||||||
During March 2012, we issued $400 million of 6.875% Series C preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. We may redeem the Series C preferred shares on or after April 15, 2017 at a redemption price of $25.00 per share. Dividends on the Series C preferred shares are non-cumulative. Consequently, if the board of directors does not authorize and declare a dividend for any period, holders of the Series C preferred shares will not be entitled to receive a dividend for such period, and such undeclared dividend will not accumulate and be payable. Holders of the Series C preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on July 15, 2012, without accumulation of any undeclared dividends. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 6.875% of the liquidation preference per annum. | ||||||||||||||
For 2013 the total dividends declared and paid on Series C preferred shares were $1.7188 per share. For 2012, the total dividends declared on Series C preferred shares were $1.4132 per share. Of this amount, $0.9835 was paid in 2012 and the remaining $0.4297 was subsequently paid in 2013. | ||||||||||||||
Series D Preferred Shares | ||||||||||||||
During May 2013, we issued $225 million of 5.50% Series D preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. We may redeem the Series D preferred shares on or after June 1, 2018 at a redemption price of $25.00 per share. Dividends on the Series D preferred shares are non-cumulative. Consequently, if the Board of Directors does not authorize and declare a dividend for any period, holders of the Series D preferred shares will not be entitled to receive a dividend for such period, and such undeclared dividend will not accumulate and be payable. Holders of the Series D preferred shares will be entitled to receive, only when, as and if declared by the Board of Directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the first day of March, June, September and December of each year, commencing on September 1, 2013, without accumulation of any undeclared dividends. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum. | ||||||||||||||
For 2013, the total dividends declared on Series D preferred shares were $0.6875 per share. Of this amount, $0.3438 was paid in 2013 and the remaining $0.3438 will be subsequently paid in 2014. | ||||||||||||||
The holders of the Series D preferred shares, as well as our previously issued preferred shares, have no voting rights other than the right to elect a specified number of directors if preferred share dividends are not declared and paid for a specified period. | ||||||||||||||
c) | Out of Period Adjustment | |||||||||||||
Common share dividends were historically recognized as a reduction of retained earnings when paid. During 2012, we recognized a $31 million adjustment in our Consolidated Statement of Shareholders' Equity in order to reflect dividends within retained earnings when declared, with a corresponding increase in other liabilities in our Consolidated Balance Sheet. This adjustment did not impact net income or net income available to common shareholders. | ||||||||||||||
We believe that this matter was quantitatively and qualitatively immaterial to our previously issued financial statements and that the recognition of the adjustment in 2012 was similarly immaterial. |
NONCONTROLLING_INTEREST
NONCONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2013 | |
Noncontrolling Interest [Abstract] | ' |
Noncontrolling Interest Disclosure [Text Block] | ' |
During November 2013, the Company formed AXIS Ventures Reinsurance Limited (Ventures Re), a Bermuda domiciled insurer. Ventures Re was formed to write reinsurance on a fully collateralized basis. | |
In conjunction with the formation of Ventures Re, third party investors purchased $50 million of non-voting redeemable preferred share capital issued by this entity. The preferred shares are redeemable at the sole discretion of Ventures Re's Board of Directors, and are expected to be redeemed on or before July 1, 2016. | |
Ventures Re is considered to be a variable interest entity. The Company has concluded that it is the primary beneficiary of Ventures Re as it has the power to direct, and has more than an insignificant economic interest in, the activities of this entity. Following this determination, Ventures Re was consolidated by the Company. Shareholders' equity attributable to Ventures Re's third party investors is recorded in the Consolidated Financial Statements as noncontrolling interests. | |
At December 31, 2013, total assets of Ventures Re were $50 million, consisting of cash and cash equivalents. The assets of Ventures Re can only be used to settle its own liabilities, and there is no recourse to the Company for any liabilities incurred by this entity. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
RETIREMENT PLANS [Text Block] | ' |
We provide defined contribution plans that are self directed to eligible employees through various plans sponsored by us. Generally, mutual funds are made available pursuant to which employees and we contribute a percentage of the employee’s gross salary into the plan each month. | |
For eligible U.S. employees, we provide a non-qualified deferred compensation plan that enables them to make salary contributions in excess of those permitted under the AXIS 401(k) Plan, to make additional employee contributions from their bonus payments, and to receive discretionary employer contributions. | |
We also provided supplemental executive retirement plans (“SERP”) to both the Chairman and the former CEO. We settled all obligations under our SERP during the third quarter of 2012, resulting in the recognition of an insignificant loss. | |
During 2013, our total pension expenses were $20 million (2012: $20 million and 2011: $20 million) for the above retirement benefits. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
SHARE-BASED COMPENSATION [Text Block] | ' | |||||||||||||||
In May 2007, our shareholders approved the establishment of the AXIS Capital Holdings Limited 2007 Long-Term Equity Compensation Plan (“2007 Plan”). The 2007 Plan provides for, among other things, the grant of restricted stock, restricted stock units, non-qualified and incentive stock options, and other equity-based awards to our employees and directors. The 2007 Plan authorized the issuance of a total of 5,000,000 shares. In May of 2009 and 2012, our shareholders approved amendments to the 2007 Plan to increase the number of common shares authorized for issuance by 4,000,000 and 6,000,000 respectively, to bring the total number of common shares authorized for issuance to 15,000,000. As a result of the adoption of the 2007 Plan, the 2003 Long-Term Equity Compensation and 2003 Directors Long-Term Equity Compensation Plan were terminated, except that all related outstanding awards will remain in effect. | ||||||||||||||||
We currently issue restricted stock and restricted stock units to our employees with service conditions, vesting generally over a period of 4 years with 25% of the award vesting annually. We also grant performance-based stock awards to certain employees in order to promote long-term growth and profitability. Performance-based awards represent the right to receive a specified number of common shares in the future, based upon the achievement of established performance criteria during the applicable performance period. At December 31, 2013, we anticipate that the established performance based criterion for these awards are likely to be achieved. | ||||||||||||||||
Grants provided under the 2007 Plan generally allow for accelerated vesting provisions upon the employee’s death, permanent disability, or certain terminations following a change in control of the Company occurring within two years of the change in control event. Notwithstanding these vesting provisions, the Compensation Committee of our Board has broad authority to accelerate vesting at its own discretion. | ||||||||||||||||
At December 31, 2013, 6,310,845 equity-based awards remained available for grant under the 2007 Plan. Between January 1, 2014 and February 10, 2014, a total of 1,890,523 restricted stock units and 91,917 performance-based restricted stock units were approved by the board of directors to be granted on March 1, 2014. Included in the total restricted stock awards granted subsequent to December 31, 2013 were 954,329 awards which will be settled in cash upon vesting. | ||||||||||||||||
We have granted stock options under the 2003 Plans; however, none have been issued since 2005. All outstanding stock options are fully vested and exercisable. These options expire ten years from the date of grant. | ||||||||||||||||
a) | Restricted Stock | |||||||||||||||
The following table provides a reconciliation of the beginning and ending balance of nonvested restricted stock (including restricted stock units) for the year ended December 31, 2013: | ||||||||||||||||
Performance-based Stock Awards | Service-based Stock Awards | |||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | |||||||||||||
Restricted | Grant Date | Restricted | Grant Date | |||||||||||||
Stock | Fair Value | Stock | Fair Value | |||||||||||||
Nonvested restricted stock - beginning of year | 250 | $ | 34.42 | 4,429 | $ | 32.48 | ||||||||||
Granted | 33 | 45.89 | 975 | 39.31 | ||||||||||||
Vested | — | — | (1,754 | ) | 32.03 | |||||||||||
Forfeited | — | — | (220 | ) | 34.17 | |||||||||||
Nonvested restricted stock - end of year | 283 | $ | 35.74 | 3,430 | $ | 34.72 | ||||||||||
(1) Fair value is based on the closing price of our common shares on the New York Stock Exchange on the day of the grant. | ||||||||||||||||
During 2013, we granted 1,007,425 restricted stock awards (2012: 2,447,700; 2011: 1,839,250) to our employees with a weighted average grant-date fair value per share of $39.52 (2012: $32.20; 2011: $36.12). | ||||||||||||||||
During 2013, we incurred a compensation cost of $57 million (2012: $68 million; 2011: $39 million) in respect of all restricted stock and restricted stock units, and recorded tax benefits thereon of $10 million (2012: $8 million; 2011: $7 million). Compensation costs incurred in 2012 includes $20 million of accelerated and incremental expenses associated with the transition in our senior leadership. The retirement of one senior leader resulted in the modification of that leader's outstanding restricted stock awards to eliminate the previously existing service condition. The unanticipated termination without cause of another senior officer lead to the early satisfaction of employment obligations and resulted in the service condition associated with that officer's outstanding restricted stock awards being fully satisfied. | ||||||||||||||||
b) | Cash-settled Awards | |||||||||||||||
During 2013, we also granted 847,425 restricted stock units that will settle in cash rather than shares when the awards ultimately vest. At December 31, 2013, the corresponding liability for cash-settled awards, included in other liabilities on the Consolidated Balance Sheets, was $9 million (2012: $nil). | ||||||||||||||||
The total fair value of restricted stock and cash settled awards vested during 2013 was $56 million (2012: $43 million; 2011: $63 million). At December 31, 2013, we had unrecognized compensation costs of $98 million (2012: $89 million) which are expected to be recognized over the weighted average period of 2.4 years (2012: 2.5 years). | ||||||||||||||||
c) | Stock options | |||||||||||||||
The following is a summary of stock options outstanding and exercisable at December 31, 2013 and related activity for the year ended: | ||||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||||
of Stock | Average | Average | Intrinsic | |||||||||||||
Options | Exercise | Remaining | Value(1) | |||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding and exercisable - beginning of year | 919 | $ | 28.74 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (706 | ) | 28.96 | |||||||||||||
Expired | — | — | ||||||||||||||
Outstanding and exercisable - end of year | 213 | $ | 27.98 | 1 | $ | 4,180 | ||||||||||
-1 | The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between our closing stock price at December 31, 2013 and the exercisable price, multiplied by the number of in-the-money-options) that would have been received by the stock option holder had all stock option holders exercised their stock options on December 31, 2013. | |||||||||||||||
The total intrinsic value of stock options exercised during 2013 was $10 million (2012: $11 million) and we received proceeds of $17 million (2012: $3 million). For these exercised stock options, we issued new shares from the authorized share capital pool rather than from our treasury pool. |
RELATED_PARTY_TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions [Text Block] | ' |
The transactions listed below are classified as related party transactions as each counterparty had or has had either a direct or indirect shareholding in us or has been a board member during any period covered by the financial statements. | |
The collateral manager of four of our CLOs is Blackstone Debt Advisors L.P., who is entitled to management fees payable by the collateralized obligations in the ordinary course of business. We also have investments in two hedge funds managed by Blackstone Alternative Asset Management, LP, who is entitled to management fees in the ordinary course of business. On June 30, 2012, Blackstone Group ceased to be a related party. Fees due or paid for the six months ended June 30, 2012 were $1 million. In 2011, total fees paid were $2 million. | |
In the ordinary course of business, we engage SKY Harbor Capital Management, LLC for asset management services for certain of our short duration high yield debt portfolios and StoneRiver RegEd for broker and adjuster licensing, appointment and compliance services. During 2013, total fees paid to these Stone Point Group companies were $2 million (2012: $2 million; 2011: nil). |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||
INCOME TAXES [Text Block] | ' | |||||||||||||
Under current Bermuda law, our Bermuda domiciled companies are not required to pay any taxes in Bermuda on income or capital gains. We have received an assurance from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, we will be exempt from taxation in Bermuda until March 2035. Our primary Bermuda subsidiary has an operating branch in Singapore, which is subject to the relevant taxes in that jurisdiction. The branch is not under examination in this tax jurisdiction, but remains subject to examination for tax years 2010 through 2013. | ||||||||||||||
Our U.S. subsidiaries are subject to federal, state and local corporate income taxes and other taxes applicable to U.S. corporations. The provision for federal income taxes has been determined under the principles of the consolidated tax provisions of the U.S. Internal Revenue Code and Regulations. Should the U.S. subsidiaries pay a dividend outside the U.S. group, withholding taxes will apply. Our U.S. subsidiaries are not under examination but remain subject to examination in the U.S. for tax years 2010 through 2013. | ||||||||||||||
In Canada, our U.S. reinsurance company operates through a branch and our U.S. service company has an unlimited liability company subsidiary based in Canada. These Canadian operations are subject to the relevant taxes in that jurisdiction and generally remain subject to examination for tax years 2009 through 2013. During the year, our Canadian reinsurance branch was audited by the Canada Revenue Agency for income taxes for tax years 2009 and 2010, with no material adjustments. | ||||||||||||||
We also have subsidiaries in Ireland, the United Kingdom (U.K.), Australia and Brazil. These subsidiaries and their branches, are not under examination, but generally remain subject to examination in all applicable jurisdictions for tax years 2009 through 2013. | ||||||||||||||
The following table provides an analysis of our income tax expense and net tax assets: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Current income tax expense (benefit) | ||||||||||||||
United States | $ | 12,466 | $ | 4,931 | $ | 5,064 | ||||||||
Europe | 9,039 | 8,566 | 9,598 | |||||||||||
Other | — | (174 | ) | 188 | ||||||||||
Deferred income tax expense (benefit) | ||||||||||||||
United States | (13,976 | ) | (10,749 | ) | 1,379 | |||||||||
Europe | (526 | ) | 713 | (996 | ) | |||||||||
Other | (1 | ) | — | — | ||||||||||
Total income tax expense | $ | 7,002 | $ | 3,287 | $ | 15,233 | ||||||||
Net current tax receivables | $ | 5,689 | $ | 1,164 | $ | 1,318 | ||||||||
Net deferred tax assets | 80,258 | 52,794 | 60,836 | |||||||||||
Net tax assets | $ | 85,947 | $ | 53,958 | $ | 62,154 | ||||||||
Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The significant components of our deferred tax assets and liabilities were as follows: | ||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Discounting of loss reserves | $ | 59,023 | $ | 61,534 | ||||||||||
Unearned premiums | 39,146 | 32,355 | ||||||||||||
Operating loss carryforwards | 20,316 | 20,685 | ||||||||||||
Accruals not currently deductible | 39,018 | 25,638 | ||||||||||||
Other investment adjustments and impairments | 7,859 | 8,790 | ||||||||||||
Tax credits | 11,886 | 7,945 | ||||||||||||
Depreciation | 2,410 | 3,858 | ||||||||||||
Other deferred tax assets | 2,906 | 2,185 | ||||||||||||
Deferred tax assets before valuation allowance | 182,564 | 162,990 | ||||||||||||
Valuation allowance | (25,542 | ) | (24,574 | ) | ||||||||||
Deferred tax assets net of valuation allowance | 157,022 | 138,416 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Deferred acquisition costs | (37,226 | ) | (27,211 | ) | ||||||||||
Net unrealized gains on investments | (23,200 | ) | (44,137 | ) | ||||||||||
Amortization of intangible assets and goodwill | (10,059 | ) | (8,258 | ) | ||||||||||
Accrued market discounts | (1,151 | ) | (1,323 | ) | ||||||||||
Equalization reserves | (2,080 | ) | (1,957 | ) | ||||||||||
Other deferred tax liabilities | (3,048 | ) | (2,736 | ) | ||||||||||
Deferred tax liabilities | (76,764 | ) | (85,622 | ) | ||||||||||
Net deferred tax assets | $ | 80,258 | $ | 52,794 | ||||||||||
At December 31, 2013, the total operating loss carryforwards for our Singapore and Australian branches were $115 million (2012: $117 million) and $45 million (2012: $51 million), respectively. Such operating losses are currently available to offset future taxable income of the branches and may be carried forward indefinitely in each jurisdiction. At December 31, 2013, our European subsidiaries have a $4 million (2012: $3 million) foreign tax credit which can be carried forward indefinitely. In addition, at December 31, 2013, our U.S. companies have a $7 million (2012: $5 million) alternative minimum tax credit that can be carried forward indefinitely. | ||||||||||||||
The following table provides an analysis of the movement in our valuation allowance: | ||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||
Income tax expense: | ||||||||||||||
Valuation allowance - beginning of year | $ | 33,933 | $ | 30,623 | ||||||||||
Operating loss carryforwards | (794 | ) | 635 | |||||||||||
Foreign tax credit | 1,762 | 2,675 | ||||||||||||
Change in investment-related items | (7,831 | ) | — | |||||||||||
Valuation allowance - end of year | 27,070 | 33,933 | ||||||||||||
Accumulated other comprehensive income: | ||||||||||||||
Valuation allowance - beginning of year | (9,359 | ) | (9,359 | ) | ||||||||||
Change in investment-related items | 7,831 | — | ||||||||||||
Valuation allowance - end of year | (1,528 | ) | (9,359 | ) | ||||||||||
Total valuation allowance - end of year | $ | 25,542 | $ | 24,574 | ||||||||||
At December 31, 2013 and 2012, we established a full valuation allowance on: (1) operating loss carryforwards relating to branch operations in Australia and Singapore due to cumulative losses in recent years; (2) unutilized foreign tax credits available in Ireland and (3) certain other deferred tax assets related to branch operations. | ||||||||||||||
Although realization is not assured, management believes it is more likely than not that the tax benefit of the recorded net deferred tax assets will be realized. Other than the items discussed above, the remaining gross deferred tax assets relate substantially to our U.S. operations. In evaluating our ability to recover these tax assets within the jurisdiction from which they arise, we consider all available positive and negative evidence, including historical results, operating loss carryback potential and scheduled reversals of deferred tax liabilities. Our U.S. operations have produced significant taxable income in prior periods and have deferred tax liabilities that will reverse in future periods such that we believe sufficient ordinary taxable income is available to utilize all remaining ordinary deferred tax assets. In 2013 and 2012, there were sufficient net unrealized gains to offset remaining impairments, therefore a valuation allowance on such impairments in the U.S., was not considered necessary. | ||||||||||||||
There were no unrecognized tax benefits at December 31, 2013 and 2012. | ||||||||||||||
The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes: | ||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Income before income taxes | ||||||||||||||
Bermuda (domestic) | $ | 625,490 | $ | 485,613 | $ | 10,911 | ||||||||
Foreign | 108,977 | 64,915 | 50,627 | |||||||||||
Total income before income taxes | $ | 734,467 | $ | 550,528 | $ | 61,538 | ||||||||
Reconciliation of effective tax rate (% of income before income taxes) | ||||||||||||||
Expected tax rate | 0 | % | 0 | % | 0 | % | ||||||||
Foreign taxes at local expected rates: | ||||||||||||||
United States | 2.1 | % | 0.4 | % | 33.2 | % | ||||||||
Europe | 1 | % | 1.4 | % | 10.7 | % | ||||||||
Other | 0.3 | % | — | % | 3.3 | % | ||||||||
Valuation allowance | (0.7 | )% | 0.6 | % | (15.5 | )% | ||||||||
Net tax exempt income | (1.3 | )% | (1.5 | )% | (11.2 | )% | ||||||||
Other | (0.4 | )% | (0.3 | )% | 4.3 | % | ||||||||
Actual tax rate | 1 | % | 0.6 | % | 24.8 | % | ||||||||
OTHER_COMPREHENSIVE_INCOME_LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
OTHER COMPREHENSIVE INCOME (LOSS) [Text Block] | ' | |||||||||||||||
The tax effects allocated to each component of other comprehensive income (loss) were as follows: | ||||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment losses arising during the period | $ | (169,614 | ) | $ | 7,782 | $ | (161,832 | ) | ||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (67,156 | ) | 5,605 | (61,551 | ) | |||||||||||
Unrealized investment losses arising during the period, net of reclassification adjustment | (236,770 | ) | 13,387 | (223,383 | ) | |||||||||||
Non-credit portion of OTTI losses | — | — | — | |||||||||||||
Foreign currency translation adjustment | (21,414 | ) | — | (21,414 | ) | |||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | — | — | — | |||||||||||||
Total other comprehensive loss | $ | (258,184 | ) | $ | 13,387 | $ | (244,797 | ) | ||||||||
Year ended December 31, 2012 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment gains arising during the period | $ | 378,040 | $ | (29,530 | ) | $ | 348,510 | |||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (127,828 | ) | 11,550 | (116,278 | ) | |||||||||||
Unrealized investment gains arising during the period, net of reclassification adjustment | 250,212 | (17,980 | ) | 232,232 | ||||||||||||
Non-credit portion of OTTI losses | — | — | — | |||||||||||||
Foreign currency translation adjustment | 510 | — | 510 | |||||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 1,718 | — | 1,718 | |||||||||||||
Total other comprehensive income | $ | 252,440 | $ | (17,980 | ) | $ | 234,460 | |||||||||
Year ended December 31, 2011 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment gains arising during the period | 87,384 | (13,087 | ) | 74,297 | ||||||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (121,248 | ) | 1,700 | (119,548 | ) | |||||||||||
Unrealized investment losses arising during the period, net of reclassification adjustment | (33,864 | ) | (11,387 | ) | (45,251 | ) | ||||||||||
Non-credit portion of OTTI losses | (585 | ) | 130 | (455 | ) | |||||||||||
Foreign currency translation adjustment | (3,045 | ) | — | (3,045 | ) | |||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 92 | — | 92 | |||||||||||||
Total other comprehensive loss | (37,402 | ) | (11,257 | ) | (48,659 | ) | ||||||||||
Reclassifications out of AOCI into net income available to common shareholders were as follows: | ||||||||||||||||
Amount Reclassified from AOCI(1) | ||||||||||||||||
Details About AOCI Components | Consolidated Statement of Operations Line Item That Includes Reclassification | Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Unrealized appreciation on available for sale investments | ||||||||||||||||
Other realized investment gains | $ | 76,518 | $ | 152,062 | $ | 137,694 | ||||||||||
OTTI losses | (9,362 | ) | (24,234 | ) | (16,446 | ) | ||||||||||
Total before tax | 67,156 | 127,828 | 121,248 | |||||||||||||
Tax expense | (5,605 | ) | (11,550 | ) | (1,700 | ) | ||||||||||
Net of tax | $ | 61,551 | $ | 116,278 | $ | 119,548 | ||||||||||
Supplemental Executive Retirement Plans (SERPs) | ||||||||||||||||
Net change in benefit plan assets and obligations | General and administrative expenses | $ | — | $ | (1,718 | ) | $ | (92 | ) | |||||||
Tax benefit | — | — | — | |||||||||||||
Net of tax | $ | — | $ | (1,718 | ) | $ | (92 | ) | ||||||||
-1 | Amounts in parentheses are debits to net income available to common shareholders |
STATUTORY_FINANCIAL_INFORMATIO
STATUTORY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments [Abstract] | ' | ||||||||||||||||||||||
STATUTORY FINANCIAL INFORMATION [Text Block] | ' | ||||||||||||||||||||||
Our (re)insurance operations are subject to insurance and/or reinsurance laws and regulations in the jurisdictions in which they operate, the most significant of which include Bermuda, Ireland and the United States. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities. | |||||||||||||||||||||||
The statutory capital and surplus in each of our most significant regulatory jurisdictions at December 31, 2013 and 2012 was as follows: | |||||||||||||||||||||||
Bermuda | Ireland | United States | |||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Required statutory capital and surplus | $ | 1,996,794 | $ | 2,048,329 | $ | 315,258 | $ | 279,078 | $ | 385,651 | $ | 358,674 | |||||||||||
Actual statutory capital and surplus | $ | 3,839,840 | $ | 4,091,437 | $ | 906,932 | $ | 904,237 | $ | 1,348,861 | $ | 1,295,679 | |||||||||||
Under the Insurance Act 1978, amendments thereto and Related Regulations of Bermuda (the "Act"), our Bermuda subsidiary, AXIS Specialty Bermuda is required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin ("MSM") and the Enhanced Capital Requirement ("ECR"). The MSM is the greater of $100 million, 50% of net written premiums or 15% of the net reserve for losses and loss adjustment expenses and the ECR is calculated based on either an internally developed risk-based capital model or a standard risk-based capital model developed by the Bermuda Monetary Authority. Under the Act, AXIS Specialty Bermuda is restricted as to the payment of dividends and/or distributions for amounts greater than 25% of the prior year’s statutory capital and surplus, whereby a signed affidavit by at least two members of the Board of Directors attesting that a dividend and/or distribution in excess of this amount would not cause the company to fail to meet its relevant margins is required. At December 31, 2013, the maximum dividend/distribution AXIS Specialty Bermuda could pay, without a signed affidavit, having met minimum levels of statutory capital and surplus requirements, was approximately $1 billion. | |||||||||||||||||||||||
Our Irish subsidiaries, AXIS Specialty Europe SE and AXIS Re SE, are required to maintain minimum levels of statutory and capital surplus. At December 31, our subsidiaries were in compliance with these requirements. Our Irish subsidiaries may declare dividends out of retained earnings subject to meeting their solvency and capital requirements, which are to hold statutory capital and surplus equal to or exceeding the Required Solvency Margin (RSM). The RSM is calculated with reference to Solvency I regulations. The maximum dividend is limited to "profits available for distribution", which consists of accumulated realized profits less accumulated realized losses. At December 31, 2013, the maximum dividend our Irish subsidiaries could pay out of retained earnings, after obtaining prior approval from the Irish regulator, was approximately $141 million. | |||||||||||||||||||||||
Our U.S. operations required statutory capital and surplus is determined using risk based capital tests, which is the threshold that constitutes the authorized control level. If a company falls below the control level, the commissioner is authorized to take whatever regulatory actions may be considered necessary to protect policyholders and creditors. The maximum dividend that may be paid by our U.S. insurance subsidiaries is restricted by the regulatory requirements of the domiciliary states. Generally, the maximum dividend that may be paid by each of our U.S. insurance subsidiaries is limited to unassigned surplus (statutory equivalent of retained earnings) and may also be limited to statutory net income, net investment income or 10% of total statutory capital and surplus. At December 31, 2013, the maximum dividend that our U.S. insurance operations could pay without regulatory approval was approximately $135 million. | |||||||||||||||||||||||
Our operating subsidiaries in Bermuda and the United States maintain branch offices in Singapore and Canada, respectively. Our Irish operating subsidiaries maintain branch offices in Switzerland, Australia and the United Kingdom. As branch offices are not considered separate entities for regulatory purposes, the required and actual statutory capital and surplus amounts for each jurisdiction in the table above include amounts related to the applicable branch offices. Our Singaporean, Australian and Canadian branch offices are subject to additional minimum capital or asset requirements in their countries of domicile. At December 31, 2013 and 2012, the actual capital/assets for each of these branches exceeded the relevant local regulatory requirements. | |||||||||||||||||||||||
Total statutory net income of our operating subsidiaries was $766 million, $697 million, $99 million for 2013, 2012 and 2011, respectively. The differences between statutory financial statements and statements prepared in accordance with U.S. GAAP vary by jurisdiction; however, the primary differences are that statutory financial statements do not reflect deferred acquisition costs, certain net deferred tax assets, goodwill and intangible assets, unrealized appreciation on debt securities or certain unauthorized reinsurance recoverables. |
UNAUDITED_CONDENSED_QUARTERLY_
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA [Text Block] | ' | |||||||||||||||||
The following is an unaudited summary of our quarterly financial results: | ||||||||||||||||||
Quarters ended | 31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2013 | ||||||||||||||||||
Net premiums earned | $ | 874,039 | $ | 945,873 | $ | 945,242 | $ | 941,911 | ||||||||||
Net investment income | 108,908 | 83,112 | 103,429 | 113,863 | ||||||||||||||
Net realized investment gains (losses) | 44,478 | 16,235 | (4,708 | ) | 19,558 | |||||||||||||
Underwriting income | 170,799 | 9,921 | 153,088 | 94,159 | ||||||||||||||
Net income available to common shareholders | 302,816 | 72,447 | 137,121 | 171,524 | ||||||||||||||
Earnings per common share - basic | $ | 2.59 | $ | 0.63 | $ | 1.23 | $ | 1.55 | ||||||||||
Earnings per common share - diluted | $ | 2.55 | $ | 0.62 | $ | 1.21 | $ | 1.52 | ||||||||||
2012 | ||||||||||||||||||
Net premiums earned | $ | 846,362 | $ | 850,603 | $ | 862,447 | $ | 856,049 | ||||||||||
Net investment income | 116,023 | 74,449 | 103,638 | 86,847 | ||||||||||||||
Net realized investment gains | 14,491 | 30,405 | 50,803 | 31,771 | ||||||||||||||
Underwriting income (loss) | 62,689 | 119,739 | 154,999 | (74,291 | ) | |||||||||||||
Net income (loss) available to common shareholders | 121,997 | 168,152 | 223,407 | (18,551 | ) | |||||||||||||
Earnings (loss) per common share - basic | $ | 0.97 | $ | 1.36 | $ | 1.84 | $ | (0.16 | ) | |||||||||
Earnings (loss) per common share - diluted | $ | 0.96 | $ | 1.35 | $ | 1.82 | $ | (0.16 | ) | |||||||||
SCHEDULE_II_CONDENSED_FINANCIA
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | ' | |||||||||||
Schedule II - Condensed Financial Information of Parent Company [Text Block] | ' | |||||||||||
AXIS CAPITAL HOLDINGS LIMITED | ||||||||||||
CONDENSED BALANCE SHEETS – PARENT COMPANY | ||||||||||||
DECEMBER 31, 2013 AND 2012 | ||||||||||||
2013 | 2012 | |||||||||||
(in thousands) | ||||||||||||
Assets | ||||||||||||
Investments in subsidiaries on equity basis | $ | 6,581,368 | $ | 6,571,607 | ||||||||
Cash and cash equivalents | 4,414 | 2,841 | ||||||||||
Other assets | 3,179 | 2,706 | ||||||||||
Total assets | $ | 6,588,961 | $ | 6,577,154 | ||||||||
Liabilities | ||||||||||||
Intercompany payable | $ | 204,877 | $ | 243,252 | ||||||||
Senior notes | 499,906 | 499,798 | ||||||||||
Dividends payable | 47,959 | 37,370 | ||||||||||
Other liabilities | 18,257 | 16,973 | ||||||||||
Total liabilities | 770,999 | 797,393 | ||||||||||
Shareholders’ equity | ||||||||||||
Preferred shares | 627,843 | 502,843 | ||||||||||
Common shares (2013: 174,134; 2012: 171,867 shares issued | 2,174 | 2,146 | ||||||||||
and 2013: 109,485; 2012: 117,920 shares outstanding) | ||||||||||||
Additional paid-in capital | 2,240,125 | 2,179,034 | ||||||||||
Accumulated other comprehensive income | 117,825 | 362,622 | ||||||||||
Retained earnings | 5,062,706 | 4,497,789 | ||||||||||
Treasury shares, at cost (2013: 64,649; 2012: 53,947 shares) | (2,232,711 | ) | (1,764,673 | ) | ||||||||
Total shareholders’ equity | 5,817,962 | 5,779,761 | ||||||||||
Total liabilities and shareholders’ equity | $ | 6,588,961 | $ | 6,577,154 | ||||||||
-1 | On November 15, 2004, AXIS Capital issued $500 million aggregate principal amount of 5.75% senior unsecured debt (“Senior Notes”) at an issue price of 99.785%, generating net proceeds of $496 million. Interest of the 5.75% Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2005. Unless previously redeemed, the 5.75% Senior Notes will mature on December 1, 2014. | |||||||||||
-2 | AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance, a 100% owned finance subsidiary, related to the issuance of $500 million aggregate principal amount of 5.875% senior unsecured notes. AXIS Capital’s obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital. | |||||||||||
-3 | AXIS Capital has fully and unconditionally guaranteed the derivative instrument obligations of certain of its 100% owned operating subsidiaries. At December 31, 2013, the fair value of guaranteed obligations utilized aggregated to $28 million (2012: $nil). | |||||||||||
SCHEDULE II | ||||||||||||
AXIS CAPITAL HOLDINGS LIMITED | ||||||||||||
CONDENSED STATEMENTS OF OPERATIONS – PARENT COMPANY | ||||||||||||
YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011 | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Revenues | ||||||||||||
Net investment income | $ | 5 | $ | 25 | $ | 1 | ||||||
Total revenues | 5 | 25 | 1 | |||||||||
Expenses | ||||||||||||
General and administrative expenses | 40,565 | 62,293 | 36,248 | |||||||||
Interest expense and financing costs | 29,201 | 29,201 | 29,201 | |||||||||
Total expenses | 69,766 | 91,494 | 65,449 | |||||||||
Loss before equity in net earnings of subsidiaries | (69,761 | ) | (91,469 | ) | (65,448 | ) | ||||||
Equity in net earnings of subsidiaries | 797,226 | 638,710 | 111,753 | |||||||||
Net income | 727,465 | 547,241 | 46,305 | |||||||||
Preferred share dividends | 40,474 | 38,228 | 36,875 | |||||||||
Loss on repurchase of preferred shares | 3,081 | 14,009 | — | |||||||||
Net income available to common shareholders | $ | 683,910 | $ | 495,004 | $ | 9,430 | ||||||
Comprehensive income (loss) | $ | 482,668 | $ | 781,701 | $ | (2,354 | ) | |||||
SCHEDULE II | ||||||||||||
AXIS CAPITAL HOLDINGS LIMITED | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS – PARENT COMPANY | ||||||||||||
YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011 | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(in thousands) | ||||||||||||
Cash flows from operating activities: | ||||||||||||
Net income | $ | 727,465 | $ | 547,241 | $ | 46,305 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||
Equity in net earnings of subsidiaries | (797,226 | ) | (638,710 | ) | (111,753 | ) | ||||||
Change in intercompany payable | (38,375 | ) | (7,667 | ) | (44,503 | ) | ||||||
Dividends received from subsidiaries | 566,000 | 525,000 | 255,000 | |||||||||
Other items | 34,803 | 56,425 | 21,298 | |||||||||
Net cash provided by operating activities | 492,667 | 482,289 | 166,347 | |||||||||
Cash flows from investing activities: | ||||||||||||
Capital repaid from subsidiary | — | — | 130,000 | |||||||||
Net cash from investing activities | — | — | 130,000 | |||||||||
Cash flows from financing activities: | ||||||||||||
Net proceeds from issuance of preferred shares | 218,449 | 393,544 | — | |||||||||
Repurchase of preferred shares | (100,000 | ) | (404,073 | ) | — | |||||||
Repurchase of common shares | (472,263 | ) | (317,687 | ) | (65,885 | ) | ||||||
Dividends paid - common shares | (118,426 | ) | (120,487 | ) | (206,455 | ) | ||||||
Dividends paid - preferred shares | (39,193 | ) | (38,228 | ) | (36,875 | ) | ||||||
Proceeds from issuance of common shares | 20,339 | 5,120 | 6,735 | |||||||||
Net cash used in financing activities | (491,094 | ) | (481,811 | ) | (302,480 | ) | ||||||
Increase (decrease) in cash and cash equivalents | 1,573 | 478 | (6,133 | ) | ||||||||
Cash and cash equivalents - beginning of period | 2,841 | 2,363 | 8,496 | |||||||||
Cash and cash equivalents - end of period | $ | 4,414 | $ | 2,841 | $ | 2,363 | ||||||
Supplemental disclosures of cash flow information: | ||||||||||||
Interest paid | $ | 28,750 | $ | 28,750 | $ | 28,750 | ||||||
SCHEDULE_III_SUPPLEMENTARY_INS
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | ' | ||||||||||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION [Text Block] | ' | ||||||||||||||||||||||||||||||||||||
AXIS CAPITAL HOLDINGS LIMITED | |||||||||||||||||||||||||||||||||||||
SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||||||||||||
At and year ended December 31, 2013 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred | Reserve | Unearned | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||||||||||
Acquisition | for Losses | Premiums | Premiums | Investment | And Loss | of Deferred | Operating | Premiums | |||||||||||||||||||||||||||||
Costs | and Loss | Earned | Income(1) | Expenses | Acquisition | Expenses(2) | Written | ||||||||||||||||||||||||||||||
Expenses | Costs | ||||||||||||||||||||||||||||||||||||
Insurance | $ | 150,109 | $ | 4,873,184 | $ | 1,548,653 | $ | 1,722,762 | $ | — | $ | 1,050,402 | $ | 242,363 | $ | 347,684 | $ | 1,813,538 | |||||||||||||||||||
Reinsurance | 306,013 | 4,708,956 | 1,135,196 | 1,984,303 | — | 1,083,793 | 421,828 | 137,450 | 2,114,662 | ||||||||||||||||||||||||||||
Corporate | — | — | — | — | 409,312 | — | — | 90,256 | — | ||||||||||||||||||||||||||||
Total | $ | 456,122 | $ | 9,582,140 | $ | 2,683,849 | $ | 3,707,065 | $ | 409,312 | $ | 2,134,195 | $ | 664,191 | $ | 575,390 | $ | 3,928,200 | |||||||||||||||||||
At and year ended December 31, 2012 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred | Reserve | Unearned | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||||||||||
Acquisition | for Losses | Premiums | Premiums | Investment | And Loss | of Deferred | Operating | Premiums | |||||||||||||||||||||||||||||
Costs | and Loss | Earned | Income(1) | Expenses | Acquisition | Expenses(2) | Written | ||||||||||||||||||||||||||||||
Expenses | Costs | ||||||||||||||||||||||||||||||||||||
Insurance | $ | 128,311 | $ | 4,492,553 | $ | 1,456,318 | $ | 1,558,058 | $ | — | $ | 953,564 | $ | 226,859 | $ | 314,834 | $ | 1,522,245 | |||||||||||||||||||
Reinsurance | 260,937 | 4,566,178 | 998,374 | 1,857,405 | — | 1,142,464 | 400,794 | 116,487 | 1,815,211 | ||||||||||||||||||||||||||||
Corporate | — | — | — | — | 380,957 | — | — | 129,660 | — | ||||||||||||||||||||||||||||
Total | $ | 389,248 | $ | 9,058,731 | $ | 2,454,692 | $ | 3,415,463 | $ | 380,957 | $ | 2,096,028 | $ | 627,653 | $ | 560,981 | $ | 3,337,456 | |||||||||||||||||||
At and year ended December 31, 2011 | |||||||||||||||||||||||||||||||||||||
(in thousands) | Deferred | Reserve | Unearned | Net | Net | Losses | Amortization | Other | Net | ||||||||||||||||||||||||||||
Acquisition | for Losses | Premiums | Premiums | Investment | And Loss | of Deferred | Operating | Premiums | |||||||||||||||||||||||||||||
Costs | and Loss | Earned | Income(1) | Expenses | Acquisition | Expenses(2) | Written | ||||||||||||||||||||||||||||||
Expenses | Costs | ||||||||||||||||||||||||||||||||||||
Insurance | $ | 142,743 | $ | 4,081,741 | $ | 1,412,699 | $ | 1,429,687 | $ | — | $ | 919,319 | $ | 199,583 | $ | 278,147 | $ | 1,466,134 | |||||||||||||||||||
Reinsurance | 264,784 | 4,343,304 | 1,041,763 | 1,885,274 | — | 1,755,733 | 387,886 | 103,915 | 1,953,300 | ||||||||||||||||||||||||||||
Corporate | — | — | — | — | 362,430 | — | — | 77,089 | — | ||||||||||||||||||||||||||||
Total | $ | 407,527 | $ | 8,425,045 | $ | 2,454,462 | $ | 3,314,961 | $ | 362,430 | $ | 2,675,052 | $ | 587,469 | $ | 459,151 | $ | 3,419,434 | |||||||||||||||||||
-1 | As we evaluate the underwriting results of each of our reportable segments separately from the results of our investment portfolio, we do not allocate net investment income to our reportable segments. | ||||||||||||||||||||||||||||||||||||
-2 | Amounts related to our reportable segments reflect underwriting-related general and administrative expenses, including those incurred directly by segment personnel and certain corporate overhead costs allocated based on estimated consumption, headcount and other variables deemed relevant. Other corporate overhead costs, which are are not incremental and/or directly attributable to our individual underwriting operations, are not allocated to our reportable segments and are presented separately as corporate expenses. |
SCHEDULE_IV_SUPPLEMENTARY_REIN
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | |||||||||||||||||||||
SUPPLEMENTARY REINSURANCE INFORMATION [Text Block] | ' | |||||||||||||||||||||
AXIS CAPITAL HOLDINGS LIMITED | ||||||||||||||||||||||
SUPPLEMENTARY REINSURANCE INFORMATION | ||||||||||||||||||||||
YEARS ENDED DECEMBER 31, 2013, 2012 AND 2011 | ||||||||||||||||||||||
(in thousands) | DIRECT | CEDED TO | ASSUMED | NET | PERCENTAGE | |||||||||||||||||
GROSS | OTHER | FROM | AMOUNT | OF AMOUNT | ||||||||||||||||||
PREMIUM | COMPANIES | OTHER | ASSUMED TO | |||||||||||||||||||
COMPANIES | NET | |||||||||||||||||||||
2013 | $ | 1,974,915 | $ | 768,841 | $ | 2,722,126 | $ | 3,928,200 | 69.3 | % | ||||||||||||
2012 | 1,805,887 | 802,187 | 2,333,756 | 3,337,456 | 69.9 | % | ||||||||||||||||
2011 | 1,696,600 | 676,719 | 2,399,553 | 3,419,434 | 70.2 | % | ||||||||||||||||
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (POLICIES) | 12 Months Ended | |
Dec. 31, 2013 | ||
Policy Text Block [Abstract] | ' | |
Basis of presentation [Policy Text Block] | ' | |
These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) and include the accounts of AXIS Capital, its wholly-owned subsidiaries, and variable interest entities (“VIEs”) in which the Company is considered the primary beneficiary. | ||
Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. | ||
Consolidation/VIEs [Policy Text Block] | ' | |
All inter-company accounts and transactions have been eliminated. | ||
A VIE is an entity that either: (a) does not have equity investors with voting rights or (b) has equity investors that do not provide sufficient financial resources for the entity to support its activities. We are the primary beneficiary of a VIE if we have a controlling financial interest in the VIE, based on the following two characteristics: a) the power to direct the activities of the VIE that most significantly impact the economic performance of the VIE, and b) the obligation to absorb losses of the VIE that could potentially be significant to the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. | ||
Use of estimates [Policy Text Block] | ' | |
The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: | ||
• | reserve for losses and loss expenses; | |
• | reinsurance recoverable on unpaid losses, including the provision for uncollectible amounts; | |
• | gross and net premiums written and net premiums earned; | |
• | other-than-temporary impairments (“OTTI”) in the carrying value of available-for-sale investment securities; and | |
• | fair value measurements for our financial assets and liabilities. | |
Investments [Policy Text Block] | ' | |
Investments available for sale | ||
Our fixed maturities and equities classified as “available for sale” are reported at fair value at the balance sheet date. See Note 6 – Fair Value Measurements for additional information regarding the determination of fair value. The change in fair value (net unrealized gain or loss) on our available for sale investments, net of tax, is included as a separate component of accumulated other comprehensive income (loss) (“AOCI”) in shareholders’ equity. | ||
Net investment income includes interest and dividend income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of investments are recorded on a trade-date basis and realized gains/losses on sales of investments are determined based on the specific identification method. | ||
We recognize investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if any. The effective yield used to determine the amortization for fixed maturities subject to prepayment risk (e.g. asset-backed, loan-backed and other structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows. The adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. | ||
On a quarterly basis, we assess whether unrealized losses on available for sale investments represent impairments that are other than temporary. Several factors are considered in this assessment including, but not limited to: (i) the extent and duration of the decline, (ii) the reason for the decline (e.g. credit spread widening, credit event, foreign exchange rate movements), (iii) the historical and implied future volatility of the fair value, (iv) the financial condition and near-term prospects of the issuer and (v) the collateral structure and credit support of the security, if applicable. | ||
A fixed maturity is impaired when the fair value is below its amortized cost. For an impaired fixed maturity where we intend to sell the security or it is more likely than not that we will be required to sell the security before its anticipated recovery, the full amount of the impairment is charged to earnings and is included in net realized investment gains (losses). Where we intend to hold the impaired fixed maturity, we estimate the anticipated credit loss of the security and recognize only this portion of the impairment in earnings, with the remaining non-credit related balance of the impairment (i.e. related to interest rates, market conditions, etc.) recognized in AOCI. | ||
We impair an equity security in an unrealized loss position when we do not have the ability and intent to hold the security for a reasonable period of time to allow for a full recovery. The full impairment is charged to earnings and is included in net realized investment gains (losses). | ||
Upon recognition of an OTTI, the new cost basis for the security is the previous amortized cost for a fixed maturity or cost for an equity security less the OTTI recognized in earnings. The new cost basis is not adjusted for subsequent recoveries in fair value; except for fixed maturities whereby the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining life of the fixed maturity. | ||
Other investments | ||
We record other investments at fair value (see Note 6 – Fair Value Measurements), with both changes in fair value and realized gains/losses reported in net investment income. | ||
Short-term investments | ||
Short-term investments primarily comprise highly-liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. | ||
Cash and cash equivalents [Policy Text Block] | ' | |
Cash equivalents include money-market funds and fixed interest deposits placed with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Our restricted cash balance primarily relates to funds held in trust in support of our obligations in regulatory jurisdictions where we operate as a non-admitted carrier. | ||
Premiums (gross premiums written) [Policy Text Block] | ' | |
Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract and are estimated based upon information received from ceding companies. For multi-year contracts where (re)insurance premiums are payable in annual installments, premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. However, premiums are normally recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the policy. The remaining annual premiums are included as written at each successive anniversary date within the multi-year term. | ||
Any subsequent differences arising on insurance and reinsurance premium estimates are recorded in the period they are determined. | ||
Premiums (net premiums earned) [Policy Text Block] | ' | |
(Re)insurance premiums are earned evenly over the period during which we are exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. | ||
Reinstatement premiums are recognized and earned at the time a loss event occurs, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on our estimate of losses and loss adjustment expenses, which reflects management’s judgment, as described in Note 2(d) – Losses and Loss Expenses below. | ||
Premiums (receivables) [Policy Text Block] | ' | |
Premiums receivable balances are reviewed for impairment at least quarterly and an allowance is established for amounts considered uncollectible. The need for charge-off of any amounts previously reserved as uncollectible is assessed on a quarterly basis. | ||
Acquisition costs [Policy Text Block] | ' | |
Acquisition costs vary with and are directly related to the acquisition of (re)insurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Premiums receivable are presented net of applicable acquisition costs when contract terms provide for the right of offset. Acquisition costs are shown net of commissions earned on ceded reinsurance. Our net acquisition costs are deferred and charged to expense as the related premium is earned. | ||
Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of our deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. | ||
Losses and loss expenses [Policy Text Block] | ' | |
Our reserve for losses and loss expenses represents an estimate of the unpaid portion of our ultimate liability for losses and loss expenses for (re)insured events that have occurred at or before the balance sheet date. The balance reflects both claims that have been reported to us (“case reserves”) and claims that have been incurred but not yet reported to us (“IBNR”). These amounts are reduced for estimated amounts of salvage and subrogation recoveries. | ||
We review our reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported from insureds and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Bornhuetter-Ferguson and Chain Ladder methods. Our estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and class of business. Our historical claims data is often supplemented with industry benchmarks when applying these methodologies. | ||
Any adjustments to our previous reserve for losses and loss expenses estimates are recognized in the period they are determined. While we believe that our reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the Consolidated Balance Sheets. | ||
Reinsurance [Policy Text Block] | ' | |
In the normal course of business, we purchase reinsurance protection to limit our ultimate losses from catastrophic events and to reduce our loss aggregation risk. The premiums paid to our reinsurers (i.e. premiums ceded) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of the contracts in force. Reinstatement-related premiums ceded are recorded at the time a loss event occurs and our coverage limits for the remaining life of a contract are reinstated under pre-defined contract terms; such premiums are expensed over the remaining risk period. | ||
Reinsurance recoverable related to our case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance coverage to our individual case reserve estimates. Our estimate of reinsurance recoverable related to our IBNR reserves is generally developed as part of our loss reserving process. | ||
Our reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount we believe will ultimately not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. We apply case-specific provisions against certain recoveries that we deem unlikely to be collected in full. In addition, we use a default analysis to estimate our provision for uncollectible amounts on the remainder of the balance. | ||
The estimates of our reinsurance recoverable and the associated provision require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to amounts recognized in prior periods are reported in our net losses and loss expenses in the Consolidated Statements of Operations for the period when the adjustments were identified. The charge-off of amounts previously reserved as uncollectible is also considered on a case-by-case basis as part of this quarterly process. | ||
Foreign exchange [Policy Text Block] | ' | |
The Company’s reporting currency is the U.S. dollar. In translating the financial statements of our subsidiaries or branches where the functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates and revenues and expenses are converted using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in shareholders’ equity. | ||
In recording foreign currency transactions, revenue and expense items are converted to the relevant functional currency at the exchange rate prevailing at the transaction date. Assets and liabilities originating in currencies other than the functional currency are translated into the functional currency at the rates of exchange in effect at the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Operations, with the exception of those related to foreign-denominated available for sale investments. For these investments, exchange rate fluctuations represent an unrealized appreciation/depreciation in the value of the securities and are included in the related component of AOCI. | ||
Share-based compensation [Policy Text Block] | ' | |
The Company is authorized to issue restricted stock awards and units, stock options and other equity-based awards to its employees and directors. The fair value of service-based awards is measured at the grant date, with the associated expense recognized on a straight-line basis over the service period. The fair value of performance-based awards ("PSUs") is measured at the grant date based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized on a straight-line basis over the applicable performance and vesting period. The compensation expense for PSUs is subject to a periodic review and adjustment taking into account actual performance of the Company. The fair value of the liability associated with cash-settled awards is re-measured at each balance sheet date, with the effects recognized as an increase or decrease to share-based compensation expense for the period. Forfeiture benefits are estimated at the time of grant and incorporated in the determination of share-based compensation expense. | ||
Derivatives instruments [Policy Text Block] | ' | |
Derivative Instruments not Designated as Hedging Instruments | ||
We may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of our overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. During 2013, we began to write derivative based risk management products designed to address weather and commodity price risks, with the objective of generating profits on a portfolio basis. From time to time we may also enter into (re)insurance contracts that meet the FASB’s definition of a derivative contract. | ||
We measure all derivative instruments at fair value (see Note 6 – Fair Value Measurements) and recognize them as either assets or liabilities in the Consolidated Balance Sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the Consolidated Statements of Operations. | ||
Derivative Instruments Designated as Hedging Instruments | ||
We may designate a currency derivative as a hedge of foreign exchange rate-related movements in the fair value of certain investment portfolios. This is referred to as a fair value hedge. Changes in the fair value of the designated fair value hedge, along with the changes in the fair value of the hedged asset attributable to the hedged risk, are recorded in net realized investment gains (losses) in the Consolidated Statements of Operations, along with any hedge ineffectiveness. | ||
To qualify for hedge accounting treatment, a derivative must be highly effective in mitigating the designated changes in value of the hedged item. Further, the hedge relationship must be designated and formally documented at the inception, detailing the particular risk management objective and strategy for the hedge, including the item and risk that is being hedged, the derivative that is being used, and how effectiveness will be assessed. We formally measure the hedge effectiveness at inception and on an ongoing basis. We evaluate the effectiveness on a retrospective and prospective basis, using the period-to-period dollar offset method. Using this method, if the hedge correlation is within the range of 80% to 125%, we consider the hedge effective and apply hedge accounting. Cash flows from derivative instruments designated as hedging instruments are presented as operating activities in the Consolidated Statements of Cash Flows. | ||
Goodwill and intangible assets [Policy Text Block] | ' | |
We classify intangible assets into three categories: (1) intangible assets with finite lives subject to amortization, (2) intangible assets with indefinite lives not subject to amortization, and (3) goodwill. | ||
We amortize intangible assets with finite lives over their estimated useful lives in proportion to the estimated economic benefits of the intangible assets. We also test these assets for impairment if circumstances indicate that the carrying value may not be fully recoverable. Such circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. If, as a result of such an evaluation, we determine that the carrying value of the finite-lived intangible assets is not recoverable, the value of the assets will be reduced to fair value with the difference being expensed in the Consolidated Statements of Operations. | ||
Our intangible assets with indefinite lives include licenses held by certain subsidiaries in various jurisdictions that allow such subsidiaries to write insurance and/or reinsurance business. These intangible assets are carried at or below estimated fair value and are tested annually for impairment, either qualitatively or quantitatively, and between annual tests if events or changes in circumstances indicate that it is more likely than not that the asset is impaired. | ||
We have recorded goodwill in connection with certain acquisitions. Goodwill represents the excess of the cost of acquisitions over the fair value of the net assets acquired and is assigned to applicable reporting unit(s) on the acquisition date, based upon the expected benefit to be received by the reporting unit. We determine the expected benefit based on several factors, including the purpose of the business combination, our strategy subsequent to the business combination and the structure of the acquired company subsequent to the business combination. Goodwill is not subject to amortization. We test goodwill for potential impairment during the fourth quarter each year and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit to a level below its carrying amount. We have the option to first make this assessment on a qualitative basis. Should we choose to forgo this option, or if our qualitative assessment indicates that fair value is more likely than not below carrying value, we conduct a quantitative two-step impairment evaluation at the reporting unit level. First, we identify potential impairment by comparing the estimated fair values of the reporting units to estimated book values, including goodwill. The fair value of each reporting unit is derived based upon valuation techniques and assumptions that we believe market participants would use to value our business. The estimated fair values are generally determined utilizing methodologies that incorporate discounted cash flow analyses. The values derived from the analyses are then compared to recent market transactions for reasonableness. We derive the net book value of our reporting units by estimating the amount of shareholders’ equity required to support the activities of each reporting unit. If the estimated fair value of a reporting unit exceeds the estimated book value, goodwill is not considered impaired. If the book value exceeds the estimated fair value, the second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of the goodwill in order to determine the magnitude of impairment to be recognized. The implied fair value of goodwill is determined by deducting the fair value of a reporting unit’s identifiable assets and liabilities from the fair value of the reporting unit as a whole. The excess of the carrying value of goodwill above the implied goodwill, if any, would be recognized as an impairment charge in the Consolidated Statements of Operations. | ||
Income taxes [Policy Text Block] | ' | |
Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When our assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. We recognize the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained upon audit by the relevant taxing authorities. | ||
Treasury shares [Policy Text Block] | ' | |
Common shares repurchased by the Company and not subsequently cancelled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, we use the average cost method to determine the cost of the reissued shares. Gains on sales/reissuances of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from reissued treasury shares were included therein; otherwise losses are charged to retained earnings. | ||
New accounting standards adopted [Policy Text Block] | ' | |
Balance Sheet Offsetting | ||
Effective January 1, 2013, we adopted Financial Accounting Standards Board ("FASB") guidance requiring additional disclosures about financial instruments and derivative instruments that are either: (1) offset for balance sheet presentation purposes or (2) subject to an enforceable master netting arrangement or similar arrangement, regardless of whether they are offset for balance sheet presentation purposes. The disclosure requirements of this guidance are limited to derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing/lending transactions. As this guidance is disclosure-related only and did not amend existing balance sheet offsetting guidance, adoption did not impact our results of operations, financial condition or liquidity. The additional disclosures are provided in Note 7 - Derivative Instruments. | ||
Reporting Amounts Reclassified Out of Accumulated Other Comprehensive Income ("AOCI") | ||
Effective January 1, 2013, we adopted FASB guidance requiring additional disclosures about reclassification adjustments from AOCI. As this guidance is disclosure-related only and did not amend existing guidance on the reporting of net income available to common shareholders or other comprehensive income, adoption did not impact our results of operations, financial condition or liquidity. The additional disclosures are provided in Note 19 - Other Comprehensive Income (Loss). |
SEGMENT_INFORMATION_TABLES
SEGMENT INFORMATION (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||
UNDERWRITING RESULTS OF REPORTABLE SEGMENTS [Table Text Block] | ' | |||||||||||||
At and year ended December 31, 2013 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,559,138 | $ | 2,137,903 | $ | 4,697,041 | ||||||||
Net premiums written | 1,813,538 | 2,114,662 | 3,928,200 | |||||||||||
Net premiums earned | 1,722,762 | 1,984,303 | 3,707,065 | |||||||||||
Other insurance related income | 2,436 | 1,988 | 4,424 | |||||||||||
Net losses and loss expenses | (1,050,402 | ) | (1,083,793 | ) | (2,134,195 | ) | ||||||||
Acquisition costs | (242,363 | ) | (421,828 | ) | (664,191 | ) | ||||||||
General and administrative expenses | (347,684 | ) | (137,450 | ) | (485,134 | ) | ||||||||
Underwriting income | $ | 84,749 | $ | 343,220 | 427,969 | |||||||||
Corporate expenses | (90,256 | ) | ||||||||||||
Net investment income | 409,312 | |||||||||||||
Net realized investment gains | 75,564 | |||||||||||||
Foreign exchange losses | (26,143 | ) | ||||||||||||
Interest expense and financing costs | (61,979 | ) | ||||||||||||
Income before income taxes | $ | 734,467 | ||||||||||||
Net loss and loss expense ratio | 61 | % | 54.6 | % | 57.6 | % | ||||||||
Acquisition cost ratio | 14.1 | % | 21.3 | % | 17.9 | % | ||||||||
General and administrative expense ratio | 20.1 | % | 6.9 | % | 15.5 | % | ||||||||
Combined ratio | 95.2 | % | 82.8 | % | 91 | % | ||||||||
Goodwill and intangible assets | $ | 89,528 | $ | — | $ | 89,528 | ||||||||
At and year ended December 31, 2012 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,309,481 | $ | 1,830,162 | $ | 4,139,643 | ||||||||
Net premiums written | 1,522,245 | 1,815,211 | 3,337,456 | |||||||||||
Net premiums earned | 1,558,058 | 1,857,405 | 3,415,463 | |||||||||||
Other insurance related income | 2,676 | — | 2,676 | |||||||||||
Net losses and loss expenses | (953,564 | ) | (1,142,464 | ) | (2,096,028 | ) | ||||||||
Acquisition costs | (226,859 | ) | (400,794 | ) | (627,653 | ) | ||||||||
General and administrative expenses | (314,834 | ) | (116,487 | ) | (431,321 | ) | ||||||||
Underwriting income | $ | 65,477 | $ | 197,660 | 263,137 | |||||||||
Corporate expenses | (129,660 | ) | ||||||||||||
Net investment income | 380,957 | |||||||||||||
Net realized investment gains | 127,469 | |||||||||||||
Foreign exchange losses | (29,512 | ) | ||||||||||||
Interest expense and financing costs | (61,863 | ) | ||||||||||||
Income before income taxes | $ | 550,528 | ||||||||||||
Net loss and loss expense ratio | 61.2 | % | 61.5 | % | 61.4 | % | ||||||||
Acquisition cost ratio | 14.6 | % | 21.6 | % | 18.4 | % | ||||||||
General and administrative expense ratio | 20.2 | % | 6.3 | % | 16.4 | % | ||||||||
Combined ratio | 96 | % | 89.4 | % | 96.2 | % | ||||||||
Goodwill and intangible assets | $ | 97,493 | $ | — | $ | 97,493 | ||||||||
At and year ended December 31, 2011 | Insurance | Reinsurance | Total | |||||||||||
Gross premiums written | $ | 2,121,829 | $ | 1,974,324 | $ | 4,096,153 | ||||||||
Net premiums written | 1,466,134 | 1,953,300 | 3,419,434 | |||||||||||
Net premiums earned | 1,429,687 | 1,885,274 | 3,314,961 | |||||||||||
Other insurance related income | 2,396 | — | 2,396 | |||||||||||
Net losses and loss expenses | (919,319 | ) | (1,755,733 | ) | (2,675,052 | ) | ||||||||
Acquisition costs | (199,583 | ) | (387,886 | ) | (587,469 | ) | ||||||||
General and administrative expenses | (278,147 | ) | (103,915 | ) | (382,062 | ) | ||||||||
Underwriting income (loss) | $ | 35,034 | $ | (362,260 | ) | (327,226 | ) | |||||||
Corporate expenses | (77,089 | ) | ||||||||||||
Net investment income | 362,430 | |||||||||||||
Net realized investment gains | 121,439 | |||||||||||||
Foreign exchange gains | 44,582 | |||||||||||||
Interest expense and financing costs | (62,598 | ) | ||||||||||||
Income before income taxes | $ | 61,538 | ||||||||||||
Net loss and loss expense ratio | 64.3 | % | 93.1 | % | 80.7 | % | ||||||||
Acquisition cost ratio | 14 | % | 20.6 | % | 17.7 | % | ||||||||
General and administrative expense ratio | 19.4 | % | 5.5 | % | 13.9 | % | ||||||||
Combined ratio | 97.7 | % | 119.2 | % | 112.3 | % | ||||||||
Goodwill and intangible assets | $ | 99,590 | $ | — | $ | 99,590 | ||||||||
GROSS PREMIUMS WRITTEN BY GEOGRAPHICAL LOCATION OF SUBSIDIARIES [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Bermuda | $ | 718,904 | $ | 684,588 | $ | 822,237 | ||||||||
Europe | 1,699,748 | 1,561,701 | 1,493,692 | |||||||||||
United States | 2,278,389 | 1,893,354 | 1,780,224 | |||||||||||
Total gross premium written | $ | 4,697,041 | $ | 4,139,643 | $ | 4,096,153 | ||||||||
NET PREMIUMS EARNED BY SEGMENT AND LINE OF BUSINESS [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Insurance | ||||||||||||||
Property | $ | 462,364 | $ | 408,943 | $ | 385,291 | ||||||||
Marine | 179,057 | 171,165 | 152,123 | |||||||||||
Terrorism | 39,298 | 38,605 | 35,213 | |||||||||||
Aviation | 48,489 | 60,363 | 70,681 | |||||||||||
Credit and political risk | 68,192 | 87,103 | 97,680 | |||||||||||
Professional lines | 586,200 | 563,500 | 536,238 | |||||||||||
Liability | 110,623 | 86,873 | 89,555 | |||||||||||
Accident & health | 228,539 | 141,506 | 62,906 | |||||||||||
Total Insurance | 1,722,762 | 1,558,058 | 1,429,687 | |||||||||||
Reinsurance | ||||||||||||||
Catastrophe | 380,199 | 375,088 | 456,858 | |||||||||||
Property | 350,970 | 351,470 | 356,022 | |||||||||||
Professional lines | 304,754 | 297,726 | 281,025 | |||||||||||
Credit and surety | 279,943 | 277,185 | 263,912 | |||||||||||
Motor | 221,844 | 237,006 | 202,830 | |||||||||||
Liability | 234,736 | 220,874 | 230,872 | |||||||||||
Agriculture | 126,490 | 17,116 | 15,031 | |||||||||||
Engineering | 66,243 | 68,402 | 65,727 | |||||||||||
Other | 19,124 | 12,538 | 12,997 | |||||||||||
Total Reinsurance | 1,984,303 | 1,857,405 | 1,885,274 | |||||||||||
Total | $ | 3,707,065 | $ | 3,415,463 | $ | 3,314,961 | ||||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (TABLES) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||
SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS [Table Text Block] | ' | |||||||||||||||||
Goodwill | Intangible | Intangible | Total | |||||||||||||||
assets with an | assets with a | |||||||||||||||||
indefinite life | finite life | |||||||||||||||||
Net balance at December 31, 2011 | $ | 49,350 | $ | 26,036 | $ | 24,204 | $ | 99,590 | ||||||||||
Amortization | — | — | (2,618 | ) | (2,618 | ) | ||||||||||||
Foreign currency translation adjustment | 285 | — | 236 | 521 | ||||||||||||||
Net balance at December 31, 2012 | 49,635 | 26,036 | 21,822 | 97,493 | ||||||||||||||
Amortization | — | — | (2,233 | ) | (2,233 | ) | ||||||||||||
Foreign currency translation adjustment | (3,213 | ) | — | (2,519 | ) | (5,732 | ) | |||||||||||
Net balance at December 31, 2013 | $ | 46,422 | $ | 26,036 | $ | 17,070 | $ | 89,528 | ||||||||||
Gross balance at December 31, 2013 | $ | 42,237 | $ | 26,036 | $ | 35,596 | $ | 103,869 | ||||||||||
Accumulated amortization | — | — | (23,601 | ) | (23,601 | ) | ||||||||||||
Foreign currency translation adjustment | 4,185 | — | 5,075 | 9,260 | ||||||||||||||
Net balance at December 31, 2013 | $ | 46,422 | $ | 26,036 | $ | 17,070 | $ | 89,528 | ||||||||||
INVESTMENTS_TABLES
INVESTMENTS (TABLES) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ' | |||||||||||||||||||||||||
AMORTIZED COST/COST AND FAIR VALUES OF FIXED MATURITIES AND EQUITIES [Table Text Block] | ' | |||||||||||||||||||||||||
Amortized | Gross | Gross | Fair | Non-credit | ||||||||||||||||||||||
Cost or | Unrealized | Unrealized | Value | OTTI | ||||||||||||||||||||||
Cost | Gains | Losses | in AOCI(5) | |||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | 1,421,245 | $ | 1,405 | $ | (33,952 | ) | $ | 1,388,698 | $ | — | |||||||||||||||
Non-U.S. government | 1,208,384 | 17,990 | (49,992 | ) | 1,176,382 | — | ||||||||||||||||||||
Corporate debt | 3,533,585 | 84,881 | (10,228 | ) | 3,608,238 | — | ||||||||||||||||||||
Agency RMBS(1) | 2,485,139 | 21,979 | (58,291 | ) | 2,448,827 | — | ||||||||||||||||||||
CMBS(2) | 790,095 | 11,285 | (3,966 | ) | 797,414 | — | ||||||||||||||||||||
Non-Agency RMBS | 65,590 | 2,375 | (398 | ) | 67,567 | (868 | ) | |||||||||||||||||||
ABS(3) | 955,274 | 6,871 | (8,694 | ) | 953,451 | — | ||||||||||||||||||||
Municipals(4) | 1,527,834 | 32,432 | (14,516 | ) | 1,545,750 | — | ||||||||||||||||||||
Total fixed maturities | $ | 11,987,146 | $ | 179,218 | $ | (180,037 | ) | $ | 11,986,327 | $ | (868 | ) | ||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | 345,759 | 98,742 | (6,183 | ) | 438,318 | |||||||||||||||||||||
Exchange-traded funds | 106,762 | 32,085 | — | 138,847 | ||||||||||||||||||||||
Non-U.S. bond mutual funds | 113,698 | 11,124 | — | 124,822 | ||||||||||||||||||||||
Total equity securities | $ | 566,219 | $ | 141,951 | $ | (6,183 | ) | $ | 701,987 | |||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | 1,413,520 | $ | 9,484 | $ | (119 | ) | $ | 1,422,885 | $ | — | |||||||||||||||
Non-U.S. government | 1,076,501 | 30,276 | (2,201 | ) | 1,104,576 | — | ||||||||||||||||||||
Corporate debt | 3,746,616 | 135,658 | (5,892 | ) | 3,876,382 | — | ||||||||||||||||||||
Agency RMBS(1) | 2,594,180 | 67,398 | (1,670 | ) | 2,659,908 | — | ||||||||||||||||||||
CMBS(2) | 814,211 | 25,999 | (126 | ) | 840,084 | — | ||||||||||||||||||||
Non-Agency RMBS | 93,266 | 2,503 | (570 | ) | 95,199 | (884 | ) | |||||||||||||||||||
ABS(3) | 639,614 | 10,774 | (7,182 | ) | 643,206 | — | ||||||||||||||||||||
Municipals(4) | 1,227,764 | 58,770 | (725 | ) | 1,285,809 | — | ||||||||||||||||||||
Total fixed maturities | $ | 11,605,672 | $ | 340,862 | $ | (18,485 | ) | $ | 11,928,049 | $ | (884 | ) | ||||||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | 398,975 | 51,821 | (7,398 | ) | 443,398 | |||||||||||||||||||||
Exchange-traded funds | 109,434 | 9,727 | — | 119,161 | ||||||||||||||||||||||
Non-U.S. bond mutual funds | 99,897 | 4,092 | — | 103,989 | ||||||||||||||||||||||
Total equity securities | $ | 608,306 | $ | 65,640 | $ | (7,398 | ) | $ | 666,548 | |||||||||||||||||
-1 | Residential mortgage-backed securities (RMBS) originated by U.S. agencies. | |||||||||||||||||||||||||
-2 | Commercial mortgage-backed securities (CMBS). | |||||||||||||||||||||||||
-3 | Asset-backed securities (ABS) include debt tranched securities collateralized primarily by auto loans, student loans, credit cards, and other asset types. This asset class also includes collateralized loan obligations (CLOs) and collateralized debt obligations (CDOs). | |||||||||||||||||||||||||
-4 | Municipals include bonds issued by states, municipalities and political subdivisions. | |||||||||||||||||||||||||
-5 | Represents the non-credit component of the other-than-temporary impairment (OTTI) losses, adjusted for subsequent sales of securities. It does not include the change in fair value subsequent to the impairment measurement date. | |||||||||||||||||||||||||
CONTRACTUAL MATURITIES OF FIXED MATURITIES [Table Text Block] | ' | |||||||||||||||||||||||||
Amortized | Fair | % of Total | ||||||||||||||||||||||||
Cost | Value | Fair Value | ||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 710,079 | $ | 717,052 | 5.9 | % | ||||||||||||||||||||
Due after one year through five years | 5,030,728 | 5,116,060 | 42.7 | % | ||||||||||||||||||||||
Due after five years through ten years | 1,852,877 | 1,791,835 | 14.9 | % | ||||||||||||||||||||||
Due after ten years | 97,364 | 94,121 | 0.8 | % | ||||||||||||||||||||||
7,691,048 | 7,719,068 | 64.3 | % | |||||||||||||||||||||||
Agency RMBS | 2,485,139 | 2,448,827 | 20.4 | % | ||||||||||||||||||||||
CMBS | 790,095 | 797,414 | 6.7 | % | ||||||||||||||||||||||
Non-Agency RMBS | 65,590 | 67,567 | 0.6 | % | ||||||||||||||||||||||
ABS | 955,274 | 953,451 | 8 | % | ||||||||||||||||||||||
Total | $ | 11,987,146 | $ | 11,986,327 | 100 | % | ||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Maturity | ||||||||||||||||||||||||||
Due in one year or less | $ | 651,111 | $ | 657,045 | 5.5 | % | ||||||||||||||||||||
Due after one year through five years | 4,880,039 | 4,989,151 | 41.8 | % | ||||||||||||||||||||||
Due after five years through ten years | 1,847,295 | 1,951,569 | 16.4 | % | ||||||||||||||||||||||
Due after ten years | 85,956 | 91,887 | 0.8 | % | ||||||||||||||||||||||
7,464,401 | 7,689,652 | 64.5 | % | |||||||||||||||||||||||
Agency RMBS | 2,594,180 | 2,659,908 | 22.3 | % | ||||||||||||||||||||||
CMBS | 814,211 | 840,084 | 7 | % | ||||||||||||||||||||||
Non-Agency RMBS | 93,266 | 95,199 | 0.8 | % | ||||||||||||||||||||||
ABS | 639,614 | 643,206 | 5.4 | % | ||||||||||||||||||||||
Total | $ | 11,605,672 | $ | 11,928,049 | 100 | % | ||||||||||||||||||||
FIXED MATURITIES AND EQUITIES IN AN UNREALIZED LOSS POSITION [Table Text Block] | ' | |||||||||||||||||||||||||
12 months or greater | Less than 12 months | Total | ||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | |||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 982,307 | $ | (33,952 | ) | $ | 982,307 | $ | (33,952 | ) | ||||||||||||
Non-U.S. government | 35,577 | (3,430 | ) | 420,622 | (46,562 | ) | 456,199 | (49,992 | ) | |||||||||||||||||
Corporate debt | 27,696 | (802 | ) | 606,592 | (9,426 | ) | 634,288 | (10,228 | ) | |||||||||||||||||
Agency RMBS | 144,468 | (5,247 | ) | 1,478,527 | (53,044 | ) | 1,622,995 | (58,291 | ) | |||||||||||||||||
CMBS | 13,319 | (116 | ) | 298,863 | (3,850 | ) | 312,182 | (3,966 | ) | |||||||||||||||||
Non-Agency RMBS | 4,287 | (315 | ) | 5,319 | (83 | ) | 9,606 | (398 | ) | |||||||||||||||||
ABS | 37,765 | (2,941 | ) | 553,803 | (5,753 | ) | 591,568 | (8,694 | ) | |||||||||||||||||
Municipals | 8,408 | (615 | ) | 543,474 | (13,901 | ) | 551,882 | (14,516 | ) | |||||||||||||||||
Total fixed maturities | $ | 271,520 | $ | (13,466 | ) | $ | 4,889,507 | $ | (166,571 | ) | $ | 5,161,027 | $ | (180,037 | ) | |||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | $ | 3,499 | $ | (398 | ) | $ | 48,828 | $ | (5,785 | ) | $ | 52,327 | $ | (6,183 | ) | |||||||||||
Total equity securities | $ | 3,499 | $ | (398 | ) | $ | 48,828 | $ | (5,785 | ) | $ | 52,327 | $ | (6,183 | ) | |||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||
U.S. government and agency | $ | — | $ | — | $ | 119,730 | $ | (119 | ) | $ | 119,730 | $ | (119 | ) | ||||||||||||
Non-U.S. government | 44,568 | (1,453 | ) | 153,134 | (748 | ) | 197,702 | (2,201 | ) | |||||||||||||||||
Corporate debt | 95,511 | (2,947 | ) | 451,651 | (2,945 | ) | 547,162 | (5,892 | ) | |||||||||||||||||
Agency RMBS | 9,557 | (148 | ) | 521,400 | (1,522 | ) | 530,957 | (1,670 | ) | |||||||||||||||||
CMBS | 1,749 | (16 | ) | 69,615 | (110 | ) | 71,364 | (126 | ) | |||||||||||||||||
Non-Agency RMBS | 11,026 | (537 | ) | 115 | (33 | ) | 11,141 | (570 | ) | |||||||||||||||||
ABS | 99,514 | (7,034 | ) | 39,296 | (148 | ) | 138,810 | (7,182 | ) | |||||||||||||||||
Municipals | 6,386 | (270 | ) | 77,766 | (455 | ) | 84,152 | (725 | ) | |||||||||||||||||
Total fixed maturities | $ | 268,311 | $ | (12,405 | ) | $ | 1,432,707 | $ | (6,080 | ) | $ | 1,701,018 | $ | (18,485 | ) | |||||||||||
Equity securities | ||||||||||||||||||||||||||
Common stocks | $ | 11,554 | $ | (1,793 | ) | $ | 95,697 | $ | (5,605 | ) | $ | 107,251 | $ | (7,398 | ) | |||||||||||
Total equity securities | $ | 11,554 | $ | (1,793 | ) | $ | 95,697 | $ | (5,605 | ) | $ | 107,251 | $ | (7,398 | ) | |||||||||||
PORTFOLIO OF OTHER INVESTMENTS [Table Text Block] | ' | |||||||||||||||||||||||||
Fair Value | Redemption Frequency | Redemption | ||||||||||||||||||||||||
(if currently eligible) | Notice Period | |||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||
Long/short equity funds | $ | 425,444 | 41 | % | Monthly, Quarterly, Semi-annually | 30-60 days | ||||||||||||||||||||
Multi-strategy funds | 285,155 | 27 | % | Quarterly, Semi-annually | 60-95 days | |||||||||||||||||||||
Event-driven funds | 190,458 | 18 | % | Quarterly, Annually | 45-60 days | |||||||||||||||||||||
Leveraged bank loan funds | 48,753 | 5 | % | Quarterly | 65 days | |||||||||||||||||||||
Direct lending funds | 22,134 | 2 | % | n/a | n/a | |||||||||||||||||||||
CLO - Equities | 73,866 | 7 | % | n/a | n/a | |||||||||||||||||||||
Total other investments | $ | 1,045,810 | 100 | % | ||||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||
Long/short equity funds | $ | 302,680 | 36 | % | Monthly, Quarterly, Semi-annually | 30-60 days | ||||||||||||||||||||
Multi-strategy funds | 244,075 | 29 | % | Quarterly, Semi-annually | 60-95 days | |||||||||||||||||||||
Event-driven funds | 171,479 | 20 | % | Quarterly, Annually | 45-95 days | |||||||||||||||||||||
Leveraged bank loan funds | 62,768 | 8 | % | Quarterly | 65 days | |||||||||||||||||||||
Direct lending funds | — | — | % | n/a | n/a | |||||||||||||||||||||
CLO - Equities | 62,435 | 7 | % | n/a | n/a | |||||||||||||||||||||
Total other investments | $ | 843,437 | 100 | % | ||||||||||||||||||||||
n/a – not applicable | ||||||||||||||||||||||||||
NET INVESTMENT INCOME [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Fixed maturities | $ | 293,609 | $ | 304,400 | $ | 337,616 | ||||||||||||||||||||
Other investments | 128,814 | 87,660 | 31,856 | |||||||||||||||||||||||
Equity securities | 10,897 | 11,904 | 11,186 | |||||||||||||||||||||||
Cash and cash equivalents | 6,337 | 4,528 | 5,697 | |||||||||||||||||||||||
Short-term investments | 1,181 | 596 | 1,592 | |||||||||||||||||||||||
Gross investment income | 440,838 | 409,088 | 387,947 | |||||||||||||||||||||||
Investment expenses | (31,526 | ) | (28,131 | ) | (25,517 | ) | ||||||||||||||||||||
Net investment income | $ | 409,312 | $ | 380,957 | $ | 362,430 | ||||||||||||||||||||
NET REALIZED INVESTMENT GAINS (LOSSES) [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Gross realized gains | ||||||||||||||||||||||||||
Fixed maturities and short-term investments(1) | $ | 120,932 | $ | 242,082 | $ | 243,296 | ||||||||||||||||||||
Equities | 54,564 | 36,411 | 16,992 | |||||||||||||||||||||||
Gross realized gains | 175,496 | 278,493 | 260,288 | |||||||||||||||||||||||
Gross realized losses | ||||||||||||||||||||||||||
Fixed maturities and short-term investments(1) | (87,894 | ) | (101,844 | ) | (108,490 | ) | ||||||||||||||||||||
Equities | (10,407 | ) | (23,530 | ) | (14,526 | ) | ||||||||||||||||||||
Gross realized losses | (98,301 | ) | (125,374 | ) | (123,016 | ) | ||||||||||||||||||||
Net OTTI recognized in earnings | (9,362 | ) | (24,234 | ) | (15,861 | ) | ||||||||||||||||||||
Change in fair value of investment derivatives(2) | 7,731 | (9,170 | ) | 4,431 | ||||||||||||||||||||||
Fair value hedges(2) | — | 7,754 | (4,403 | ) | ||||||||||||||||||||||
Net realized investment gains | $ | 75,564 | $ | 127,469 | $ | 121,439 | ||||||||||||||||||||
-1 | Includes $37 million of gains in 2012 and $11 million of losses in 2011 relating to previously unrealized foreign exchange currency amounts on the hedged fixed maturity portfolios. The hedged portfolio was sold and all associated foreign exchange contracts were fully settled during 2012 so there is no impact on the 2013 figures. | |||||||||||||||||||||||||
-2 | Refer to Note 7 – Derivative Instruments | |||||||||||||||||||||||||
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Fixed maturities: | ||||||||||||||||||||||||||
Non-U.S. government | $ | 120 | $ | 3,281 | $ | — | ||||||||||||||||||||
Corporate debt | 5,802 | 1,821 | 1,954 | |||||||||||||||||||||||
Non-Agency RMBS | 57 | 2,016 | 717 | |||||||||||||||||||||||
ABS | 129 | 795 | 61 | |||||||||||||||||||||||
Municipals | 639 | — | 483 | |||||||||||||||||||||||
6,747 | 7,913 | 3,215 | ||||||||||||||||||||||||
Equity Securities | ||||||||||||||||||||||||||
Common stocks | 2,092 | 7,318 | 12,646 | |||||||||||||||||||||||
Exchange-traded funds | 523 | 9,003 | — | |||||||||||||||||||||||
2,615 | 16,321 | 12,646 | ||||||||||||||||||||||||
Total OTTI recognized in earnings | $ | 9,362 | $ | 24,234 | $ | 15,861 | ||||||||||||||||||||
ROLL FORWARD OF CREDIT LOSSES FOR WHICH A PORTION OF OTTI RECOGNIZED IN AOCI [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Balance at beginning of period | $ | 1,809 | $ | 2,061 | ||||||||||||||||||||||
Credit impairments recognized on securities not previously impaired | — | — | ||||||||||||||||||||||||
Additional credit impairments recognized on securities previously impaired | — | — | ||||||||||||||||||||||||
Change in timing of future cash flows on securities previously impaired | — | — | ||||||||||||||||||||||||
Intent to sell of securities previously impaired | — | — | ||||||||||||||||||||||||
Securities sold/redeemed/matured | (215 | ) | (252 | ) | ||||||||||||||||||||||
Balance at end of period | $ | 1,594 | $ | 1,809 | ||||||||||||||||||||||
SIGNIFICANT INPUTS TO ESTIMATE CREDIT LOSSES FOR CLO - DEBT [Table Text Block] | ' | |||||||||||||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Default rate | 4.00% | 4.00% | ||||||||||||||||||||||||
Loss severity rate | 53.50% | 53.50% | ||||||||||||||||||||||||
Collateral spreads | 2.7% - 3.5% | 2.5% - 3.7% | ||||||||||||||||||||||||
RESTRICTED INVESTMENTS [Table Text Block] | ' | |||||||||||||||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||||||||||||||
Collateral in Trust for inter-company agreements | $ | 2,261,081 | $ | 2,134,931 | ||||||||||||||||||||||
Collateral for secured letter of credit facility | 777,828 | 470,062 | ||||||||||||||||||||||||
Collateral in Trust for third party agreements | 276,839 | 245,539 | ||||||||||||||||||||||||
Securities on deposit with regulatory authorities | 58,327 | 59,456 | ||||||||||||||||||||||||
Total restricted investments | $ | 3,374,075 | $ | 2,909,988 | ||||||||||||||||||||||
FAIR_VALUE_MEASUREMENTS_TABLES
FAIR VALUE MEASUREMENTS (TABLES) | 12 Months Ended | |||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | |||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||||
Quoted Prices in | Significant | Significant | Total Fair | |||||||||||||||||||||||||||||||||||||||
Active Markets for | Other Observable | Unobservable | Value | |||||||||||||||||||||||||||||||||||||||
Identical Assets | Inputs | Inputs | ||||||||||||||||||||||||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | ||||||||||||||||||||||||||||||||||||||||
At December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,119,632 | $ | 269,066 | $ | — | $ | 1,388,698 | ||||||||||||||||||||||||||||||||||
Non-U.S. government | — | 1,176,382 | — | 1,176,382 | ||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 3,608,238 | — | 3,608,238 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | — | 2,448,827 | — | 2,448,827 | ||||||||||||||||||||||||||||||||||||||
CMBS | — | 793,396 | 4,018 | 797,414 | ||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS | — | 67,567 | — | 67,567 | ||||||||||||||||||||||||||||||||||||||
ABS | — | 922,652 | 30,799 | 953,451 | ||||||||||||||||||||||||||||||||||||||
Municipals | — | 1,545,750 | — | 1,545,750 | ||||||||||||||||||||||||||||||||||||||
1,119,632 | 10,831,878 | 34,817 | 11,986,327 | |||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||
Common stocks | 438,318 | — | — | 438,318 | ||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 138,847 | — | — | 138,847 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. bond mutual funds | — | 124,822 | — | 124,822 | ||||||||||||||||||||||||||||||||||||||
577,165 | 124,822 | — | 701,987 | |||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | — | 488,755 | 461,055 | 949,810 | ||||||||||||||||||||||||||||||||||||||
Direct lending funds | — | — | 22,134 | 22,134 | ||||||||||||||||||||||||||||||||||||||
CLO-Equities | — | — | 73,866 | 73,866 | ||||||||||||||||||||||||||||||||||||||
— | 488,755 | 557,055 | 1,045,810 | |||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 46,212 | — | 46,212 | ||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | — | 6,824 | 984 | 7,808 | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,696,797 | $ | 11,498,491 | $ | 592,856 | $ | 13,788,144 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | $ | — | $ | 1,152 | $ | 815 | $ | 1,967 | ||||||||||||||||||||||||||||||||||
Cash settled awards (see Note 16) | — | 8,693 | — | 8,693 | ||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 9,845 | $ | 815 | $ | 10,660 | ||||||||||||||||||||||||||||||||||
At December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
U.S. government and agency | $ | 1,094,220 | $ | 328,665 | $ | — | $ | 1,422,885 | ||||||||||||||||||||||||||||||||||
Non-U.S. government | — | 1,104,576 | — | 1,104,576 | ||||||||||||||||||||||||||||||||||||||
Corporate debt | — | 3,874,832 | 1,550 | 3,876,382 | ||||||||||||||||||||||||||||||||||||||
Agency RMBS | — | 2,659,908 | — | 2,659,908 | ||||||||||||||||||||||||||||||||||||||
CMBS | — | 835,788 | 4,296 | 840,084 | ||||||||||||||||||||||||||||||||||||||
Non-Agency RMBS | — | 94,089 | 1,110 | 95,199 | ||||||||||||||||||||||||||||||||||||||
ABS | — | 579,231 | 63,975 | 643,206 | ||||||||||||||||||||||||||||||||||||||
Municipals | — | 1,285,809 | — | 1,285,809 | ||||||||||||||||||||||||||||||||||||||
1,094,220 | 10,762,898 | 70,931 | 11,928,049 | |||||||||||||||||||||||||||||||||||||||
Equity securities | ||||||||||||||||||||||||||||||||||||||||||
Common stocks | 443,398 | — | — | 443,398 | ||||||||||||||||||||||||||||||||||||||
Exchange-traded funds | 119,161 | — | — | 119,161 | ||||||||||||||||||||||||||||||||||||||
Non-U.S. bond mutual funds | — | 103,989 | — | 103,989 | ||||||||||||||||||||||||||||||||||||||
562,559 | 103,989 | — | 666,548 | |||||||||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | — | 421,006 | 359,996 | 781,002 | ||||||||||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
CLO-Equities | — | — | 62,435 | 62,435 | ||||||||||||||||||||||||||||||||||||||
— | 421,006 | 422,431 | 843,437 | |||||||||||||||||||||||||||||||||||||||
Short-term investments | — | 108,860 | — | 108,860 | ||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | — | 5,838 | — | 5,838 | ||||||||||||||||||||||||||||||||||||||
Total Assets | $ | 1,656,779 | $ | 11,402,591 | $ | 493,362 | $ | 13,552,732 | ||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments (see Note 7) | $ | — | $ | 3,737 | $ | — | $ | 3,737 | ||||||||||||||||||||||||||||||||||
Cash settled awards (see Note 16) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 3,737 | $ | — | $ | 3,737 | ||||||||||||||||||||||||||||||||||
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||||
Fair Value | Valuation Technique | Unobservable Input | Range | Weighted | ||||||||||||||||||||||||||||||||||||||
Average | ||||||||||||||||||||||||||||||||||||||||||
ABS - CLO Debt | $ | 29,944 | Discounted cash flow | Credit spreads | 3.3% - 4.6% | 3.70% | ||||||||||||||||||||||||||||||||||||
Illiquidity discount (1) | 5% | 5% | ||||||||||||||||||||||||||||||||||||||||
855 | Broker-dealer quote | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||||||
$ | 30,799 | |||||||||||||||||||||||||||||||||||||||||
Other investments - CLO Equities | $ | 39,706 | Discounted cash flow | Default rates | 4.0% - 5.0% | 4.40% | ||||||||||||||||||||||||||||||||||||
Loss severity rate | 53.50% | 53.50% | ||||||||||||||||||||||||||||||||||||||||
Collateral spreads | 2.6% - 3.4% | 3.30% | ||||||||||||||||||||||||||||||||||||||||
Estimated maturity dates | 2.1 - 4.6 years | 4.2 years | ||||||||||||||||||||||||||||||||||||||||
34,160 | Net asset value | n/a | n/a | n/a | ||||||||||||||||||||||||||||||||||||||
$ | 73,866 | |||||||||||||||||||||||||||||||||||||||||
Derivatives - Weather derivatives, net | $ | 169 | Simulation model | Weather curve | 525 - 4,750(2) | n/a (3) | ||||||||||||||||||||||||||||||||||||
Weather standard deviation | 94 - 290(2) | n/a (3) | ||||||||||||||||||||||||||||||||||||||||
(1) Judgmentally determined based on limited trades of similar securities observed in the secondary markets. | ||||||||||||||||||||||||||||||||||||||||||
(2) Measured in Heating Degree Days ("HDD") which is the number of degrees the daily temperature is below a reference temperature. The cumulative HDD for the duration of the derivatives contract is compared to the strike value to determine the necessary settlement. | ||||||||||||||||||||||||||||||||||||||||||
-3 | Due to the diversity of the portfolio, the range of unobservable inputs is widespread; therefore, presentation of a weighted average is not useful. Weather parameters may include various temperature and/or precipitation measures that will naturally vary by geographic location of each counterparty's operations. | |||||||||||||||||||||||||||||||||||||||||
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS [Table Text Block] | ' | |||||||||||||||||||||||||||||||||||||||||
Opening | Transfers | Transfers | Included in | Included | Purchases | Sales | Settlements/ | Closing | Change in | |||||||||||||||||||||||||||||||||
Balance | into | out of | earnings (1) | in OCI (2) | Distributions | Balance | unrealized | |||||||||||||||||||||||||||||||||||
Level 3 | Level 3 | investment | ||||||||||||||||||||||||||||||||||||||||
gain/loss (3) | ||||||||||||||||||||||||||||||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 1,550 | $ | — | $ | — | $ | 1,550 | $ | — | $ | — | $ | — | $ | (3,100 | ) | $ | — | $ | — | |||||||||||||||||||||
Non-Agency RMBS | 1,110 | — | (1,222 | ) | — | 135 | — | — | (23 | ) | — | — | ||||||||||||||||||||||||||||||
CMBS | 4,296 | — | — | — | (278 | ) | — | — | — | 4,018 | — | |||||||||||||||||||||||||||||||
ABS | 63,975 | — | — | (111 | ) | 1,794 | — | — | (34,859 | ) | 30,799 | — | ||||||||||||||||||||||||||||||
70,931 | — | (1,222 | ) | 1,439 | 1,651 | — | — | (37,982 | ) | 34,817 | — | |||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 359,996 | — | — | 58,293 | — | 86,138 | — | (43,372 | ) | 461,055 | 58,293 | |||||||||||||||||||||||||||||||
Direct lending funds | — | — | — | (125 | ) | — | 22,317 | — | (58 | ) | 22,134 | (125 | ) | |||||||||||||||||||||||||||||
CLO-Equities | 62,435 | — | — | 27,898 | — | 34,016 | — | (50,483 | ) | 73,866 | 27,898 | |||||||||||||||||||||||||||||||
422,431 | — | — | 86,066 | — | 142,471 | — | (93,913 | ) | 557,055 | 86,066 | ||||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | 2,084 | — | (1,100 | ) | — | — | 984 | 2,084 | |||||||||||||||||||||||||||||||
— | — | — | 2,084 | — | (1,100 | ) | — | — | 984 | 2,084 | ||||||||||||||||||||||||||||||||
Total assets | $ | 493,362 | $ | — | $ | (1,222 | ) | $ | 89,589 | $ | 1,651 | $ | 141,371 | $ | — | $ | (131,895 | ) | $ | 592,856 | $ | 88,150 | ||||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | 98 | — | 717 | — | — | 815 | 98 | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | 98 | $ | — | $ | 717 | $ | — | $ | — | $ | 815 | $ | 98 | ||||||||||||||||||||||
Year ended December 31, 2012 | ||||||||||||||||||||||||||||||||||||||||||
Fixed maturities | ||||||||||||||||||||||||||||||||||||||||||
Corporate debt | $ | 1,550 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,550 | $ | — | ||||||||||||||||||||||
Non-Agency RMBS | — | 1,110 | — | — | — | — | — | — | 1,110 | — | ||||||||||||||||||||||||||||||||
CMBS | — | 4,296 | — | — | — | — | — | — | 4,296 | — | ||||||||||||||||||||||||||||||||
ABS | 49,328 | 10,539 | — | — | 5,112 | — | — | (1,004 | ) | 63,975 | — | |||||||||||||||||||||||||||||||
50,878 | 15,945 | — | — | 5,112 | — | — | (1,004 | ) | 70,931 | — | ||||||||||||||||||||||||||||||||
Other investments | ||||||||||||||||||||||||||||||||||||||||||
Hedge funds | 346,244 | — | (9,435 | ) | 33,301 | — | — | (2,835 | ) | (7,279 | ) | 359,996 | 33,301 | |||||||||||||||||||||||||||||
Direct lending funds | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
CLO-Equities | 66,560 | — | — | 31,108 | — | — | — | (35,233 | ) | 62,435 | 31,108 | |||||||||||||||||||||||||||||||
412,804 | — | (9,435 | ) | 64,409 | — | — | (2,835 | ) | (42,512 | ) | 422,431 | 64,409 | ||||||||||||||||||||||||||||||
Other assets | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
— | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||
Total assets | $ | 463,682 | $ | 15,945 | $ | (9,435 | ) | $ | 64,409 | $ | 5,112 | $ | — | $ | (2,835 | ) | $ | (43,516 | ) | $ | 493,362 | $ | 64,409 | |||||||||||||||||||
Other liabilities | ||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | — | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||
Total liabilities | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||||||
-1 | Gains and losses included in earnings on fixed maturities are included in net realized investment gains (losses). Gains and (losses) included in earnings on other investments are included in net investment income. Gains (losses) on weather derivatives included in earnings are included in other insurance-related income. | |||||||||||||||||||||||||||||||||||||||||
-2 | Gains and losses included in other comprehensive income (“OCI”) on fixed maturities are included in unrealized gains (losses) arising during the period. | |||||||||||||||||||||||||||||||||||||||||
-3 | Change in unrealized investment gain/(loss) relating to assets held at the reporting date. |
DERIVATIVE_INSTRUMENTS_TABLES
DERIVATIVE INSTRUMENTS (TABLES) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||||||||
LOCATION AND AMOUNTS OF DERIVATIVE FAIR VALUES ON THE CONSOLIDATED BALANCE SHEET [Table Text Block] | ' | |||||||||||||||||||||||||
At December 31, 2013 | At December 31, 2012 | |||||||||||||||||||||||||
Derivative | Asset | Liability | Derivative | Asset | Liability | |||||||||||||||||||||
Notional | Derivative | Derivative | Notional | Derivative | Derivative | |||||||||||||||||||||
Amount | Fair | Fair | Amount | Fair | Fair | |||||||||||||||||||||
Value(1) | Value(1) | Value(1) | Value(1) | |||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Relating to investment portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | $ | 254,023 | 1,214 | 1,032 | $ | 287,819 | 1,067 | 2,733 | ||||||||||||||||||
Interest rate swaps | 281,250 | 873 | — | — | — | — | ||||||||||||||||||||
Relating to underwriting portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | 390,663 | 4,737 | 120 | 476,191 | 4,771 | 1,004 | ||||||||||||||||||||
Weather-related contracts | 24,451 | 984 | 815 | — | — | — | ||||||||||||||||||||
Total derivatives | $ | 7,808 | $ | 1,967 | $ | 5,838 | $ | 3,737 | ||||||||||||||||||
-1 | Asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||||||||||||||
RECONCILIATION OF GROSS DERIVATIVE ASSETS AND LIABILITIES TO NET AMOUNTS PRESENTED IN BALANCE SHEETS [Table Text Block] | ' | |||||||||||||||||||||||||
December 31, 2013 | December 31, 2012 | |||||||||||||||||||||||||
Gross Amounts | Gross Amounts Offset | Net | Gross Amounts | Gross Amounts Offset | Net | |||||||||||||||||||||
Amounts(1) | Amounts(1) | |||||||||||||||||||||||||
Derivative assets | $ | 9,796 | $ | (1,988 | ) | $ | 7,808 | $ | 6,476 | $ | (639 | ) | $ | 5,838 | ||||||||||||
Derivative liabilities | 3,955 | (1,988 | ) | 1,967 | 4,376 | (639 | ) | 3,737 | ||||||||||||||||||
-1 | Net asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||||||||||||||
NET EARNINGS IMPACT OF FAIR VALUE HEDGES AND TOTAL UNREALIZED AND REALIZED GAINS (LOSSES) ON DERIVATIVES NOT DESIGNATED AS HEDGES RECORDED IN EARNINGS [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Foreign exchange forward contracts | $ | — | $ | 10,853 | $ | 11,682 | ||||||||||||||||||||
Hedged investment portfolio | — | (3,099 | ) | (16,085 | ) | |||||||||||||||||||||
Hedge ineffectiveness recognized in earnings | $ | — | $ | 7,754 | $ | (4,403 | ) | |||||||||||||||||||
Location of Gain (Loss) Recognized | Amount of Gain (Loss) Recognized in | |||||||||||||||||||||||||
in Income on Derivative | Income on Derivative | |||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||||
Derivatives not designated as hedging instruments | ||||||||||||||||||||||||||
Relating to investment portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Net realized investment gains | $ | 10,843 | $ | (9,170 | ) | $ | 4,431 | ||||||||||||||||||
Interest rate swaps | Net realized investment gains | (3,112 | ) | — | — | |||||||||||||||||||||
Relating to underwriting portfolio: | ||||||||||||||||||||||||||
Foreign exchange forward contracts | Foreign exchange gains (losses) | 1,690 | 26,612 | 33,893 | ||||||||||||||||||||||
Currency collar options | Foreign exchange gains (losses) | — | — | 267 | ||||||||||||||||||||||
Weather-related contracts | Other insurance related income | 1,987 | — | — | ||||||||||||||||||||||
Total | $ | 11,408 | $ | 17,442 | $ | 38,591 | ||||||||||||||||||||
RESERVE_FOR_LOSSES_AND_LOSS_EX1
RESERVE FOR LOSSES AND LOSS EXPENSES (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Insurance Loss Reserves [Abstract] | ' | |||||||||||||
COMPONENTS OF RESERVE FOR LOSSES AND LOSS EXPENSES [Table Text Block] | ' | |||||||||||||
As of December 31, | 2013 | 2012 | ||||||||||||
Reserve for reported losses and loss expenses | $ | 3,499,817 | $ | 3,272,682 | ||||||||||
Reserve for losses incurred but not reported | 6,082,323 | 5,786,049 | ||||||||||||
Reserve for losses and loss expenses | $ | 9,582,140 | $ | 9,058,731 | ||||||||||
RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Gross reserve for losses and loss expenses, beginning of period | $ | 9,058,731 | $ | 8,425,045 | $ | 7,032,375 | ||||||||
Less reinsurance recoverable on unpaid losses, beginning of period | (1,825,617 | ) | (1,736,823 | ) | (1,540,633 | ) | ||||||||
Net reserve for unpaid losses and loss expenses, beginning of period | 7,233,114 | 6,688,222 | 5,491,742 | |||||||||||
Net incurred losses and loss expenses related to: | ||||||||||||||
Current year | 2,353,631 | 2,340,868 | 2,932,513 | |||||||||||
Prior years | (219,436 | ) | (244,840 | ) | (257,461 | ) | ||||||||
2,134,195 | 2,096,028 | 2,675,052 | ||||||||||||
Net paid losses and loss expenses related to: | ||||||||||||||
Current year | (318,006 | ) | (322,836 | ) | (509,075 | ) | ||||||||
Prior years | (1,373,459 | ) | (1,299,384 | ) | (953,035 | ) | ||||||||
(1,691,465 | ) | (1,622,220 | ) | (1,462,110 | ) | |||||||||
Foreign exchange and other | 6,184 | 71,084 | (16,462 | ) | ||||||||||
Net reserve for unpaid losses and loss expenses, end of period | 7,682,028 | 7,233,114 | 6,688,222 | |||||||||||
Reinsurance recoverable on unpaid losses, end of period | 1,900,112 | 1,825,617 | 1,736,823 | |||||||||||
Gross reserve for losses and loss expenses, end of period | $ | 9,582,140 | $ | 9,058,731 | $ | 8,425,045 | ||||||||
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT [Table Text Block] | ' | |||||||||||||
Insurance | Reinsurance | Total | ||||||||||||
Year ended December 31, 2013 | $ | 50,355 | $ | 169,081 | $ | 219,436 | ||||||||
Year ended December 31, 2012 | 122,209 | 122,631 | 244,840 | |||||||||||
Year ended December 31, 2011 | 103,014 | 154,447 | 257,461 | |||||||||||
REINSURANCE_TABLES
REINSURANCE (TABLES) | 12 Months Ended | |||||||||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | ' | |||||||||||||||||||||||||
BREAKDOWN OF GROSS AND NET PREMIUMS WRITTEN AND EARNED [Table Text Block] | ' | |||||||||||||||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||||||||||||||
Premiums | Premiums | Premiums | Premiums | Premiums | Premiums | |||||||||||||||||||||
written | earned | written | earned | written | earned | |||||||||||||||||||||
Gross | $ | 4,697,041 | $ | 4,459,269 | $ | 4,139,643 | $ | 4,141,037 | $ | 4,096,153 | $ | 3,973,956 | ||||||||||||||
Ceded | (768,841 | ) | (752,204 | ) | (802,187 | ) | (725,574 | ) | (676,719 | ) | (658,995 | ) | ||||||||||||||
Net | $ | 3,928,200 | $ | 3,707,065 | $ | 3,337,456 | $ | 3,415,463 | $ | 3,419,434 | $ | 3,314,961 | ||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (TABLES) | 12 Months Ended | |||||
Dec. 31, 2013 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||
FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES [Table Text Block] | ' | |||||
Year ended December 31, | ||||||
2014 | $ | 31,207 | ||||
2015 | 27,378 | |||||
2016 | 23,838 | |||||
2017 | 20,881 | |||||
2018 | 17,955 | |||||
Later years | 53,049 | |||||
Total future minimum lease payments | $ | 174,308 | ||||
EARNINGS_PER_COMMON_SHARE_TABL
EARNINGS PER COMMON SHARE (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
BASIC AND DILUTED EARNINGS PER COMMON SHARE [Table Text Block] | ' | |||||||||||||
At and year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Basic earnings per common share | ||||||||||||||
Net income | $ | 727,465 | $ | 547,241 | $ | 46,305 | ||||||||
Less: preferred share dividends | 40,474 | 38,228 | 36,875 | |||||||||||
Less: loss on repurchase of preferred shares | 3,081 | 14,009 | — | |||||||||||
Net income available to common shareholders | 683,910 | 495,004 | 9,430 | |||||||||||
Weighted average common shares outstanding - basic | 113,636 | 122,148 | 122,499 | |||||||||||
Basic earnings per common share | $ | 6.02 | $ | 4.05 | $ | 0.08 | ||||||||
Diluted earnings per common share | ||||||||||||||
Net income available to common shareholders | $ | 683,910 | $ | 495,004 | $ | 9,430 | ||||||||
Weighted average common shares outstanding - basic | 113,636 | 122,148 | 122,499 | |||||||||||
Warrants | — | — | 4,292 | |||||||||||
Stock compensation plans | 1,692 | 1,506 | 1,331 | |||||||||||
Weighted average common shares outstanding - diluted | 115,328 | 123,654 | 128,122 | |||||||||||
Diluted earnings per common share | $ | 5.93 | $ | 4 | $ | 0.07 | ||||||||
Anti-dilutive shares excluded from the dilutive computation | 250 | 614 | 1,134 | |||||||||||
SHAREHOLDERS_EQUITY_TABLES
SHAREHOLDERS' EQUITY (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||
COMMON SHARES ISSUED AND OUTSTANDING [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Shares issued, balance at beginning of period | 171,867 | 170,159 | 154,912 | |||||||||||
Shares issued | 2,267 | 1,708 | 15,247 | |||||||||||
Total shares issued at end of period | 174,134 | 171,867 | 170,159 | |||||||||||
Treasury shares, balance at beginning of period | (53,947 | ) | (44,571 | ) | (42,519 | ) | ||||||||
Shares repurchased | (10,830 | ) | (9,376 | ) | (2,052 | ) | ||||||||
Shares reissued from treasury | 128 | — | — | |||||||||||
Total treasury shares at end of period | (64,649 | ) | (53,947 | ) | (44,571 | ) | ||||||||
Total shares outstanding | 109,485 | 117,920 | 125,588 | |||||||||||
SHARE REPURCHASES [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
In the open market: | ||||||||||||||
Total shares | 7,362 | 6,057 | 1,609 | |||||||||||
Total cost | $ | 337,083 | $ | 203,704 | $ | 49,974 | ||||||||
Average price per share(2) | $ | 45.79 | $ | 33.63 | $ | 31.07 | ||||||||
From employees:(1) | ||||||||||||||
Total shares | 468 | 319 | 443 | |||||||||||
Total cost | $ | 19,080 | $ | 10,483 | $ | 15,911 | ||||||||
Average price per share(2) | $ | 40.75 | $ | 32.85 | $ | 35.92 | ||||||||
From founding shareholder:(3) | ||||||||||||||
Total shares | 3,000 | 3,000 | — | |||||||||||
Total cost | $ | 116,100 | $ | 103,500 | $ | — | ||||||||
Average price per share(2) | $ | 38.7 | $ | 34.5 | $ | — | ||||||||
Total | ||||||||||||||
Total shares | 10,830 | 9,376 | 2,052 | |||||||||||
Total cost | $ | 472,263 | $ | 317,687 | $ | 65,885 | ||||||||
Average price per share(2) | $ | 43.61 | $ | 33.88 | $ | 32.11 | ||||||||
-1 | To satisfy withholding tax liabilities upon vesting of restricted stock, restricted stock units, and exercise of stock options. Share repurchases from employees are excluded from the authorized share repurchase plans noted above. | |||||||||||||
-2 | Calculated using whole figures. | |||||||||||||
-3 | We privately negotiated with Trident II, L.P. and affiliated entities to repurchase 3,000,000 (2012: 3,000,000; 2011: none) of our common shares. |
SHAREBASED_COMPENSATION_TABLES
SHARE-BASED COMPENSATION (TABLES) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||
RECONCILIATION OF BEGINNING AND ENDING BALANCE OF NONVESTED RESTRICTED STOCK (INCLUDING RSUS) TO BE SETTLED IN SHARES [Table Text Block] | ' | |||||||||||||||
Performance-based Stock Awards | Service-based Stock Awards | |||||||||||||||
Number of | Weighted Average | Number of | Weighted Average | |||||||||||||
Restricted | Grant Date | Restricted | Grant Date | |||||||||||||
Stock | Fair Value | Stock | Fair Value | |||||||||||||
Nonvested restricted stock - beginning of year | 250 | $ | 34.42 | 4,429 | $ | 32.48 | ||||||||||
Granted | 33 | 45.89 | 975 | 39.31 | ||||||||||||
Vested | — | — | (1,754 | ) | 32.03 | |||||||||||
Forfeited | — | — | (220 | ) | 34.17 | |||||||||||
Nonvested restricted stock - end of year | 283 | $ | 35.74 | 3,430 | $ | 34.72 | ||||||||||
(1) Fair value is based on the closing price of our common shares on the New York Stock Exchange on the day of the grant. | ||||||||||||||||
SUMMARY OF STOCK OPTIONS OUTSTANDING AND EXERCISABLE AND RELATED ACTIVITY FOR PERIOD [Table Text Block] | ' | |||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||||
of Stock | Average | Average | Intrinsic | |||||||||||||
Options | Exercise | Remaining | Value(1) | |||||||||||||
Price | Contractual | |||||||||||||||
Term | ||||||||||||||||
Outstanding and exercisable - beginning of year | 919 | $ | 28.74 | |||||||||||||
Granted | — | — | ||||||||||||||
Exercised | (706 | ) | 28.96 | |||||||||||||
Expired | — | — | ||||||||||||||
Outstanding and exercisable - end of year | 213 | $ | 27.98 | 1 | $ | 4,180 | ||||||||||
-1 | The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between our closing stock price at December 31, 2013 and the exercisable price, multiplied by the number of in-the-money-options) that would have been received by the stock option holder had all stock option holders exercised their stock options on December 31, 2013. |
INCOME_TAXES_TABLES
INCOME TAXES (TABLES) | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | ||||||||||||||
INCOME TAXES [Abstract] | ' | |||||||||||||
SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Current income tax expense (benefit) | ||||||||||||||
United States | $ | 12,466 | $ | 4,931 | $ | 5,064 | ||||||||
Europe | 9,039 | 8,566 | 9,598 | |||||||||||
Other | — | (174 | ) | 188 | ||||||||||
Deferred income tax expense (benefit) | ||||||||||||||
United States | (13,976 | ) | (10,749 | ) | 1,379 | |||||||||
Europe | (526 | ) | 713 | (996 | ) | |||||||||
Other | (1 | ) | — | — | ||||||||||
Total income tax expense | $ | 7,002 | $ | 3,287 | $ | 15,233 | ||||||||
Net current tax receivables | $ | 5,689 | $ | 1,164 | $ | 1,318 | ||||||||
Net deferred tax assets | 80,258 | 52,794 | 60,836 | |||||||||||
Net tax assets | $ | 85,947 | $ | 53,958 | $ | 62,154 | ||||||||
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES [Table Text Block] | ' | |||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||
Deferred tax assets: | ||||||||||||||
Discounting of loss reserves | $ | 59,023 | $ | 61,534 | ||||||||||
Unearned premiums | 39,146 | 32,355 | ||||||||||||
Operating loss carryforwards | 20,316 | 20,685 | ||||||||||||
Accruals not currently deductible | 39,018 | 25,638 | ||||||||||||
Other investment adjustments and impairments | 7,859 | 8,790 | ||||||||||||
Tax credits | 11,886 | 7,945 | ||||||||||||
Depreciation | 2,410 | 3,858 | ||||||||||||
Other deferred tax assets | 2,906 | 2,185 | ||||||||||||
Deferred tax assets before valuation allowance | 182,564 | 162,990 | ||||||||||||
Valuation allowance | (25,542 | ) | (24,574 | ) | ||||||||||
Deferred tax assets net of valuation allowance | 157,022 | 138,416 | ||||||||||||
Deferred tax liabilities: | ||||||||||||||
Deferred acquisition costs | (37,226 | ) | (27,211 | ) | ||||||||||
Net unrealized gains on investments | (23,200 | ) | (44,137 | ) | ||||||||||
Amortization of intangible assets and goodwill | (10,059 | ) | (8,258 | ) | ||||||||||
Accrued market discounts | (1,151 | ) | (1,323 | ) | ||||||||||
Equalization reserves | (2,080 | ) | (1,957 | ) | ||||||||||
Other deferred tax liabilities | (3,048 | ) | (2,736 | ) | ||||||||||
Deferred tax liabilities | (76,764 | ) | (85,622 | ) | ||||||||||
Net deferred tax assets | $ | 80,258 | $ | 52,794 | ||||||||||
VALUATION ALLOWANCE ROLL FORWARD [Table Text Block] | ' | |||||||||||||
At December 31, | 2013 | 2012 | ||||||||||||
Income tax expense: | ||||||||||||||
Valuation allowance - beginning of year | $ | 33,933 | $ | 30,623 | ||||||||||
Operating loss carryforwards | (794 | ) | 635 | |||||||||||
Foreign tax credit | 1,762 | 2,675 | ||||||||||||
Change in investment-related items | (7,831 | ) | — | |||||||||||
Valuation allowance - end of year | 27,070 | 33,933 | ||||||||||||
Accumulated other comprehensive income: | ||||||||||||||
Valuation allowance - beginning of year | (9,359 | ) | (9,359 | ) | ||||||||||
Change in investment-related items | 7,831 | — | ||||||||||||
Valuation allowance - end of year | (1,528 | ) | (9,359 | ) | ||||||||||
Total valuation allowance - end of year | $ | 25,542 | $ | 24,574 | ||||||||||
EFFECTIVE TAX RATE RECONCILIATION [Table Text Block] | ' | |||||||||||||
Year ended December 31, | 2013 | 2012 | 2011 | |||||||||||
Income before income taxes | ||||||||||||||
Bermuda (domestic) | $ | 625,490 | $ | 485,613 | $ | 10,911 | ||||||||
Foreign | 108,977 | 64,915 | 50,627 | |||||||||||
Total income before income taxes | $ | 734,467 | $ | 550,528 | $ | 61,538 | ||||||||
Reconciliation of effective tax rate (% of income before income taxes) | ||||||||||||||
Expected tax rate | 0 | % | 0 | % | 0 | % | ||||||||
Foreign taxes at local expected rates: | ||||||||||||||
United States | 2.1 | % | 0.4 | % | 33.2 | % | ||||||||
Europe | 1 | % | 1.4 | % | 10.7 | % | ||||||||
Other | 0.3 | % | — | % | 3.3 | % | ||||||||
Valuation allowance | (0.7 | )% | 0.6 | % | (15.5 | )% | ||||||||
Net tax exempt income | (1.3 | )% | (1.5 | )% | (11.2 | )% | ||||||||
Other | (0.4 | )% | (0.3 | )% | 4.3 | % | ||||||||
Actual tax rate | 1 | % | 0.6 | % | 24.8 | % | ||||||||
OTHER_COMPREHENSIVE_INCOME_LOS1
OTHER COMPREHENSIVE INCOME (LOSS) (TABLES) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME (LOSS) [Table Text Block] | ' | |||||||||||||||
Before Tax Amount | Tax (Expense) Benefit | Net of Tax Amount | ||||||||||||||
Year ended December 31, 2013 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment losses arising during the period | $ | (169,614 | ) | $ | 7,782 | $ | (161,832 | ) | ||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (67,156 | ) | 5,605 | (61,551 | ) | |||||||||||
Unrealized investment losses arising during the period, net of reclassification adjustment | (236,770 | ) | 13,387 | (223,383 | ) | |||||||||||
Non-credit portion of OTTI losses | — | — | — | |||||||||||||
Foreign currency translation adjustment | (21,414 | ) | — | (21,414 | ) | |||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | — | — | — | |||||||||||||
Total other comprehensive loss | $ | (258,184 | ) | $ | 13,387 | $ | (244,797 | ) | ||||||||
Year ended December 31, 2012 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment gains arising during the period | $ | 378,040 | $ | (29,530 | ) | $ | 348,510 | |||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (127,828 | ) | 11,550 | (116,278 | ) | |||||||||||
Unrealized investment gains arising during the period, net of reclassification adjustment | 250,212 | (17,980 | ) | 232,232 | ||||||||||||
Non-credit portion of OTTI losses | — | — | — | |||||||||||||
Foreign currency translation adjustment | 510 | — | 510 | |||||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 1,718 | — | 1,718 | |||||||||||||
Total other comprehensive income | $ | 252,440 | $ | (17,980 | ) | $ | 234,460 | |||||||||
Year ended December 31, 2011 | ||||||||||||||||
Available for sale investments: | ||||||||||||||||
Unrealized investment gains arising during the period | 87,384 | (13,087 | ) | 74,297 | ||||||||||||
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (121,248 | ) | 1,700 | (119,548 | ) | |||||||||||
Unrealized investment losses arising during the period, net of reclassification adjustment | (33,864 | ) | (11,387 | ) | (45,251 | ) | ||||||||||
Non-credit portion of OTTI losses | (585 | ) | 130 | (455 | ) | |||||||||||
Foreign currency translation adjustment | (3,045 | ) | — | (3,045 | ) | |||||||||||
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 92 | — | 92 | |||||||||||||
Total other comprehensive loss | (37,402 | ) | (11,257 | ) | (48,659 | ) | ||||||||||
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS [Table Text Block] | ' | |||||||||||||||
Amount Reclassified from AOCI(1) | ||||||||||||||||
Details About AOCI Components | Consolidated Statement of Operations Line Item That Includes Reclassification | Year ended December 31, | ||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Unrealized appreciation on available for sale investments | ||||||||||||||||
Other realized investment gains | $ | 76,518 | $ | 152,062 | $ | 137,694 | ||||||||||
OTTI losses | (9,362 | ) | (24,234 | ) | (16,446 | ) | ||||||||||
Total before tax | 67,156 | 127,828 | 121,248 | |||||||||||||
Tax expense | (5,605 | ) | (11,550 | ) | (1,700 | ) | ||||||||||
Net of tax | $ | 61,551 | $ | 116,278 | $ | 119,548 | ||||||||||
Supplemental Executive Retirement Plans (SERPs) | ||||||||||||||||
Net change in benefit plan assets and obligations | General and administrative expenses | $ | — | $ | (1,718 | ) | $ | (92 | ) | |||||||
Tax benefit | — | — | — | |||||||||||||
Net of tax | $ | — | $ | (1,718 | ) | $ | (92 | ) | ||||||||
-1 | Amounts in parentheses are debits to net income available to common shareholders |
STATUTORY_FINANCIAL_INFORMATIO1
STATUTORY FINANCIAL INFORMATION (TABLES) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
STATUTORY FINANCIAL INFORMATION [Abstract] | ' | ||||||||||||||||||||||
STATUTORY CAPITAL AND SURPLUS BY JURISDICTION [Table Text Block] | ' | ||||||||||||||||||||||
Bermuda | Ireland | United States | |||||||||||||||||||||
At December 31, | 2013 | 2012 | 2013 | 2012 | 2013 | 2012 | |||||||||||||||||
Required statutory capital and surplus | $ | 1,996,794 | $ | 2,048,329 | $ | 315,258 | $ | 279,078 | $ | 385,651 | $ | 358,674 | |||||||||||
Actual statutory capital and surplus | $ | 3,839,840 | $ | 4,091,437 | $ | 906,932 | $ | 904,237 | $ | 1,348,861 | $ | 1,295,679 | |||||||||||
UNAUDITED_CONDENSED_QUARTERLY_1
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (TABLES) | 12 Months Ended | |||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||
UNAUDITED SUMMARY OF QUARTERLY FINANCIAL RESULTS [Table Text Block] | ' | |||||||||||||||||
Quarters ended | 31-Mar | 30-Jun | 30-Sep | 31-Dec | ||||||||||||||
2013 | ||||||||||||||||||
Net premiums earned | $ | 874,039 | $ | 945,873 | $ | 945,242 | $ | 941,911 | ||||||||||
Net investment income | 108,908 | 83,112 | 103,429 | 113,863 | ||||||||||||||
Net realized investment gains (losses) | 44,478 | 16,235 | (4,708 | ) | 19,558 | |||||||||||||
Underwriting income | 170,799 | 9,921 | 153,088 | 94,159 | ||||||||||||||
Net income available to common shareholders | 302,816 | 72,447 | 137,121 | 171,524 | ||||||||||||||
Earnings per common share - basic | $ | 2.59 | $ | 0.63 | $ | 1.23 | $ | 1.55 | ||||||||||
Earnings per common share - diluted | $ | 2.55 | $ | 0.62 | $ | 1.21 | $ | 1.52 | ||||||||||
2012 | ||||||||||||||||||
Net premiums earned | $ | 846,362 | $ | 850,603 | $ | 862,447 | $ | 856,049 | ||||||||||
Net investment income | 116,023 | 74,449 | 103,638 | 86,847 | ||||||||||||||
Net realized investment gains | 14,491 | 30,405 | 50,803 | 31,771 | ||||||||||||||
Underwriting income (loss) | 62,689 | 119,739 | 154,999 | (74,291 | ) | |||||||||||||
Net income (loss) available to common shareholders | 121,997 | 168,152 | 223,407 | (18,551 | ) | |||||||||||||
Earnings (loss) per common share - basic | $ | 0.97 | $ | 1.36 | $ | 1.84 | $ | (0.16 | ) | |||||||||
Earnings (loss) per common share - diluted | $ | 0.96 | $ | 1.35 | $ | 1.82 | $ | (0.16 | ) | |||||||||
SEGMENT_INFORMATION_DETAILS
SEGMENT INFORMATION (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
reportable_segment | |||||||||||
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of reportable segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | $4,697,041 | $4,139,643 | $4,096,153 |
Net premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 3,928,200 | 3,337,456 | 3,419,434 |
Net premiums earned | 941,911 | 945,242 | 945,873 | 874,039 | 856,049 | 862,447 | 850,603 | 846,362 | 3,707,065 | 3,415,463 | 3,314,961 |
Other insurance related income | ' | ' | ' | ' | ' | ' | ' | ' | 4,424 | 2,676 | 2,396 |
Net losses and loss expenses | ' | ' | ' | ' | ' | ' | ' | ' | -2,134,195 | -2,096,028 | -2,675,052 |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | -664,191 | -627,653 | -587,469 |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -575,390 | -560,981 | -459,151 |
Underwriting income (loss) | 94,159 | 153,088 | 9,921 | 170,799 | -74,291 | 154,999 | 119,739 | 62,689 | ' | ' | ' |
Net investment income | 113,863 | 103,429 | 83,112 | 108,908 | 86,847 | 103,638 | 74,449 | 116,023 | 409,312 | 380,957 | 362,430 |
Net realized investment gains | 19,558 | -4,708 | 16,235 | 44,478 | 31,771 | 50,803 | 30,405 | 14,491 | 75,564 | 127,469 | 121,439 |
Foreign exchange (losses) gains | ' | ' | ' | ' | ' | ' | ' | ' | -26,143 | -29,512 | 44,582 |
Interest expense and financing costs | ' | ' | ' | ' | ' | ' | ' | ' | -61,979 | -61,863 | -62,598 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 734,467 | 550,528 | 61,538 |
Net loss and loss expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 57.60% | 61.40% | 80.70% |
Acquisition cost ratio | ' | ' | ' | ' | ' | ' | ' | ' | 17.90% | 18.40% | 17.70% |
General and administrative expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 15.50% | 16.40% | 13.90% |
Combined ratio | ' | ' | ' | ' | ' | ' | ' | ' | 91.00% | 96.20% | 112.30% |
Goodwill and intangible assets | 89,528 | ' | ' | ' | 97,493 | ' | ' | ' | 89,528 | 97,493 | 99,590 |
Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,722,762 | 1,558,058 | 1,429,687 |
Reinsurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,984,303 | 1,857,405 | 1,885,274 |
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 4,697,041 | 4,139,643 | 4,096,153 |
Net premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 3,928,200 | 3,337,456 | 3,419,434 |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 3,707,065 | 3,415,463 | 3,314,961 |
Other insurance related income | ' | ' | ' | ' | ' | ' | ' | ' | 4,424 | 2,676 | 2,396 |
Net losses and loss expenses | ' | ' | ' | ' | ' | ' | ' | ' | -2,134,195 | -2,096,028 | -2,675,052 |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | -664,191 | -627,653 | -587,469 |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -485,134 | -431,321 | -382,062 |
Underwriting income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 427,969 | 263,137 | -327,226 |
Operating Segments [Member] | Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 2,559,138 | 2,309,481 | 2,121,829 |
Net premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 1,813,538 | 1,522,245 | 1,466,134 |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,722,762 | 1,558,058 | 1,429,687 |
Other insurance related income | ' | ' | ' | ' | ' | ' | ' | ' | 2,436 | 2,676 | 2,396 |
Net losses and loss expenses | ' | ' | ' | ' | ' | ' | ' | ' | -1,050,402 | -953,564 | -919,319 |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | -242,363 | -226,859 | -199,583 |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -347,684 | -314,834 | -278,147 |
Underwriting income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 84,749 | 65,477 | 35,034 |
Net loss and loss expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 61.00% | 61.20% | 64.30% |
Acquisition cost ratio | ' | ' | ' | ' | ' | ' | ' | ' | 14.10% | 14.60% | 14.00% |
General and administrative expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 20.10% | 20.20% | 19.40% |
Combined ratio | ' | ' | ' | ' | ' | ' | ' | ' | 95.20% | 96.00% | 97.70% |
Goodwill and intangible assets | 89,528 | ' | ' | ' | 97,493 | ' | ' | ' | 89,528 | 97,493 | 99,590 |
Operating Segments [Member] | Reinsurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 2,137,903 | 1,830,162 | 1,974,324 |
Net premiums written | ' | ' | ' | ' | ' | ' | ' | ' | 2,114,662 | 1,815,211 | 1,953,300 |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,984,303 | 1,857,405 | 1,885,274 |
Other insurance related income | ' | ' | ' | ' | ' | ' | ' | ' | 1,988 | 0 | 0 |
Net losses and loss expenses | ' | ' | ' | ' | ' | ' | ' | ' | -1,083,793 | -1,142,464 | -1,755,733 |
Acquisition costs | ' | ' | ' | ' | ' | ' | ' | ' | -421,828 | -400,794 | -387,886 |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -137,450 | -116,487 | -103,915 |
Underwriting income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 343,220 | 197,660 | -362,260 |
Net loss and loss expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 54.60% | 61.50% | 93.10% |
Acquisition cost ratio | ' | ' | ' | ' | ' | ' | ' | ' | 21.30% | 21.60% | 20.60% |
General and administrative expense ratio | ' | ' | ' | ' | ' | ' | ' | ' | 6.90% | 6.30% | 5.50% |
Combined ratio | ' | ' | ' | ' | ' | ' | ' | ' | 82.80% | 89.40% | 119.20% |
Goodwill and intangible assets | 0 | ' | ' | ' | 0 | ' | ' | ' | 0 | 0 | 0 |
Corporate [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | -90,256 | -129,660 | -77,089 |
Significant Reconciling Items [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 409,312 | 380,957 | 362,430 |
Net realized investment gains | ' | ' | ' | ' | ' | ' | ' | ' | 75,564 | 127,469 | 121,439 |
Foreign exchange (losses) gains | ' | ' | ' | ' | ' | ' | ' | ' | -26,143 | -29,512 | 44,582 |
Interest expense and financing costs | ' | ' | ' | ' | ' | ' | ' | ' | ($61,979) | ($61,863) | ($62,598) |
SEGMENT_INFORMATION_DETAILS_2
SEGMENT INFORMATION (DETAILS 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues From External Customers By Geographic Location Of Subsidiary [Line Items] | ' | ' | ' |
Gross premiums written | $4,697,041 | $4,139,643 | $4,096,153 |
Bermuda [Member] | ' | ' | ' |
Revenues From External Customers By Geographic Location Of Subsidiary [Line Items] | ' | ' | ' |
Gross premiums written | 718,904 | 684,588 | 822,237 |
Europe [Member] | ' | ' | ' |
Revenues From External Customers By Geographic Location Of Subsidiary [Line Items] | ' | ' | ' |
Gross premiums written | 1,699,748 | 1,561,701 | 1,493,692 |
United States [Member] | ' | ' | ' |
Revenues From External Customers By Geographic Location Of Subsidiary [Line Items] | ' | ' | ' |
Gross premiums written | $2,278,389 | $1,893,354 | $1,780,224 |
SEGMENT_INFORMATION_DETAILS_3
SEGMENT INFORMATION (DETAILS 3) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | $941,911 | $945,242 | $945,873 | $874,039 | $856,049 | $862,447 | $850,603 | $846,362 | $3,707,065 | $3,415,463 | $3,314,961 |
Insurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,722,762 | 1,558,058 | 1,429,687 |
Insurance [Member] | Property [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 462,364 | 408,943 | 385,291 |
Insurance [Member] | Marine [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 179,057 | 171,165 | 152,123 |
Insurance [Member] | Terrorism [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 39,298 | 38,605 | 35,213 |
Insurance [Member] | Aviation [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 48,489 | 60,363 | 70,681 |
Insurance [Member] | Credit and political risk [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 68,192 | 87,103 | 97,680 |
Insurance [Member] | Professional lines [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 586,200 | 563,500 | 536,238 |
Insurance [Member] | Liability [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 110,623 | 86,873 | 89,555 |
Insurance [Member] | Accident and health [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 228,539 | 141,506 | 62,906 |
Reinsurance [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 1,984,303 | 1,857,405 | 1,885,274 |
Reinsurance [Member] | Catastrophe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 380,199 | 375,088 | 456,858 |
Reinsurance [Member] | Property [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 350,970 | 351,470 | 356,022 |
Reinsurance [Member] | Professional lines [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 304,754 | 297,726 | 281,025 |
Reinsurance [Member] | Credit and surety [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 279,943 | 277,185 | 263,912 |
Reinsurance [Member] | Motor [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 221,844 | 237,006 | 202,830 |
Reinsurance [Member] | Liability [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 234,736 | 220,874 | 230,872 |
Reinsurance [Member] | Agriculture [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 126,490 | 17,116 | 15,031 |
Reinsurance [Member] | Engineering [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | 66,243 | 68,402 | 65,727 |
Reinsurance [Member] | Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | ' | ' | ' | ' | ' | ' | ' | ' | $19,124 | $12,538 | $12,997 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS (DETAILS) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | ' | ' |
Goodwill net balance, opening | $49,635 | $49,350 |
Foreign currency translation adjustment, goodwill | -3,213 | 285 |
Goodwill net balance, closing | 46,422 | 49,635 |
Goodwill, gross | 42,237 | ' |
Accumulated foreign currency translation adjustment, goodwill | 4,185 | ' |
Goodwill, net | 46,422 | 49,635 |
Intangible Assets with an Indefinite Life [Roll Forward] | ' | ' |
Intangible assets with an indefinite life net balance, opening | 26,036 | 26,036 |
Foreign currency translation adjustment, intangible assets with an indefinite life | 0 | 0 |
Intangible assets with an indefinite life net balance, closing | 26,036 | 26,036 |
Intangible assets with an indefinite life, gross | 26,036 | ' |
Accumulated foreign currency translation adjustment, intangible assets with an indefinite life | 0 | ' |
Intangible assets with an indefinite life, net | 26,036 | 26,036 |
Intangible Assets with a Finite Life [Roll Forward] | ' | ' |
Intangible assets with a finite life net balance, opening | 21,822 | 24,204 |
Amortization, intangible assets with a finite life | -2,233 | -2,618 |
Foreign currency translation adjustment, intangible assets with a finite life | -2,519 | 236 |
Intangible assets with a finite life net balance, closing | 17,070 | 21,822 |
Intangible assets with a finite life, gross | 35,596 | ' |
Accumulated amortization, intangible assets with a finite life | -23,601 | ' |
Accumulated foreign currency translation adjustment, intangible assets with a finite life | 5,075 | ' |
Intangible assets with a finite life, net | 17,070 | 21,822 |
Goodwill and Intangible Assets [Roll Forward] | ' | ' |
Goodwill and intangible assets net balance, opening | 97,493 | 99,590 |
Amortization, intangible assets with a finite life | -2,233 | -2,618 |
Foreign currency translation adjustment, goodwill and intangible assets | -5,732 | 521 |
Goodwill and intangible assets net balance, closing | 89,528 | 97,493 |
Goodwill and intangible assets, gross | 103,869 | ' |
Accumulated amortization, intangible assets with a finite life | -23,601 | ' |
Accumulated foreign currency translation, goodwill and intangible assets | 9,260 | ' |
Goodwill and intangible assets, net | $89,528 | $97,493 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS (DETAILS 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets with a finite life - future amortization in year one | 2 |
Intangible assets with a finite life - future amortization in year two | 2 |
Intangible assets with a finite life - future amortization in year three | 2 |
Intangible assets with a finite life - future amortization in year four | 2 |
Intangible assets with a finite life - future amortization in year five | 2 |
Minimum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets with a finite life - remaining useful life | '6 years |
Maximum [Member] | ' |
Finite-Lived Intangible Assets [Line Items] | ' |
Intangible assets with a finite life - remaining useful life | '25 years |
INVESTMENTS_DETAILS
INVESTMENTS (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | $11,987,146 | $11,605,672 |
Gross Unrealized Gains (fixed maturities) | 179,218 | 340,862 |
Gross Unrealized Losses (fixed maturities) | -180,037 | -18,485 |
Fair Value (fixed maturities) | 11,986,327 | 11,928,049 |
Non-credit OTTI in AOCI | -868 | -884 |
Cost | 566,219 | 608,306 |
Gross Unrealized Gains (equities) | 141,951 | 65,640 |
Gross Unrealized Losses (equities) | -6,183 | -7,398 |
Fair Value (equities) | 701,987 | 666,548 |
US Government and Agency [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,421,245 | 1,413,520 |
Gross Unrealized Gains (fixed maturities) | 1,405 | 9,484 |
Gross Unrealized Losses (fixed maturities) | -33,952 | -119 |
Fair Value (fixed maturities) | 1,388,698 | 1,422,885 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-US Government [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,208,384 | 1,076,501 |
Gross Unrealized Gains (fixed maturities) | 17,990 | 30,276 |
Gross Unrealized Losses (fixed maturities) | -49,992 | -2,201 |
Fair Value (fixed maturities) | 1,176,382 | 1,104,576 |
Non-credit OTTI in AOCI | 0 | 0 |
Corporate Debt [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 3,533,585 | 3,746,616 |
Gross Unrealized Gains (fixed maturities) | 84,881 | 135,658 |
Gross Unrealized Losses (fixed maturities) | -10,228 | -5,892 |
Fair Value (fixed maturities) | 3,608,238 | 3,876,382 |
Non-credit OTTI in AOCI | 0 | 0 |
Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 2,485,139 | 2,594,180 |
Gross Unrealized Gains (fixed maturities) | 21,979 | 67,398 |
Gross Unrealized Losses (fixed maturities) | -58,291 | -1,670 |
Fair Value (fixed maturities) | 2,448,827 | 2,659,908 |
Non-credit OTTI in AOCI | 0 | 0 |
CMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 790,095 | 814,211 |
Gross Unrealized Gains (fixed maturities) | 11,285 | 25,999 |
Gross Unrealized Losses (fixed maturities) | -3,966 | -126 |
Fair Value (fixed maturities) | 797,414 | 840,084 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 65,590 | 93,266 |
Gross Unrealized Gains (fixed maturities) | 2,375 | 2,503 |
Gross Unrealized Losses (fixed maturities) | -398 | -570 |
Fair Value (fixed maturities) | 67,567 | 95,199 |
Non-credit OTTI in AOCI | -868 | -884 |
ABS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 955,274 | 639,614 |
Gross Unrealized Gains (fixed maturities) | 6,871 | 10,774 |
Gross Unrealized Losses (fixed maturities) | -8,694 | -7,182 |
Fair Value (fixed maturities) | 953,451 | 643,206 |
Non-credit OTTI in AOCI | 0 | 0 |
Municipals [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Amortized Cost | 1,527,834 | 1,227,764 |
Gross Unrealized Gains (fixed maturities) | 32,432 | 58,770 |
Gross Unrealized Losses (fixed maturities) | -14,516 | -725 |
Fair Value (fixed maturities) | 1,545,750 | 1,285,809 |
Non-credit OTTI in AOCI | 0 | 0 |
Common Stock [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Cost | 345,759 | 398,975 |
Gross Unrealized Gains (equities) | 98,742 | 51,821 |
Gross Unrealized Losses (equities) | -6,183 | -7,398 |
Fair Value (equities) | 438,318 | 443,398 |
Exchange-Traded Funds [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Cost | 106,762 | 109,434 |
Gross Unrealized Gains (equities) | 32,085 | 9,727 |
Gross Unrealized Losses (equities) | 0 | 0 |
Fair Value (equities) | 138,847 | 119,161 |
Non-U.S. Bond Mutual Funds [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Cost | 113,698 | 99,897 |
Gross Unrealized Gains (equities) | 11,124 | 4,092 |
Gross Unrealized Losses (equities) | 0 | 0 |
Fair Value (equities) | $124,822 | $103,989 |
INVESTMENTS_DETAILS_2
INVESTMENTS (DETAILS 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Due in one year or less (amortized cost) | $710,079 | $651,111 |
Due after one year through five years (amortized cost) | 5,030,728 | 4,880,039 |
Due after five years through ten years (amortized cost) | 1,852,877 | 1,847,295 |
Due after ten years (amortized cost) | 97,364 | 85,956 |
Total fixed maturities with a single maturity date (amortized cost) | 7,691,048 | 7,464,401 |
Total (amortized cost) | 11,987,146 | 11,605,672 |
Due in one year or less (fair value) | 717,052 | 657,045 |
Due after one year through five years (fair value) | 5,116,060 | 4,989,151 |
Due after five years through ten years (fair value) | 1,791,835 | 1,951,569 |
Due after ten years (fair value) | 94,121 | 91,887 |
Total fixed maturities with a single maturity date (fair value) | 7,719,068 | 7,689,652 |
Fair Value (fixed maturities) | 11,986,327 | 11,928,049 |
Due in one year or less (% of total fair value) | 5.90% | 5.50% |
Due after one year through five years (% of total fair value) | 42.70% | 41.80% |
Due after five years through ten years (% of total fair value) | 14.90% | 16.40% |
Due after ten years (% of total fair value) | 0.80% | 0.80% |
Fixed maturities with single maturity date (% of total fair value) | 64.30% | 64.50% |
Total | 100.00% | 100.00% |
Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fixed maturities without a single maturity date (amortized cost) | 2,485,139 | 2,594,180 |
Total (amortized cost) | 2,485,139 | 2,594,180 |
Fixed maturities without a single maturity date (fair value) | 2,448,827 | 2,659,908 |
Fair Value (fixed maturities) | 2,448,827 | 2,659,908 |
Fixed maturities without a single maturity date (% of total fair value) | 20.40% | 22.30% |
CMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fixed maturities without a single maturity date (amortized cost) | 790,095 | 814,211 |
Total (amortized cost) | 790,095 | 814,211 |
Fixed maturities without a single maturity date (fair value) | 797,414 | 840,084 |
Fair Value (fixed maturities) | 797,414 | 840,084 |
Fixed maturities without a single maturity date (% of total fair value) | 6.70% | 7.00% |
Non-Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fixed maturities without a single maturity date (amortized cost) | 65,590 | 93,266 |
Total (amortized cost) | 65,590 | 93,266 |
Fixed maturities without a single maturity date (fair value) | 67,567 | 95,199 |
Fair Value (fixed maturities) | 67,567 | 95,199 |
Fixed maturities without a single maturity date (% of total fair value) | 0.60% | 0.80% |
ABS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fixed maturities without a single maturity date (amortized cost) | 955,274 | 639,614 |
Total (amortized cost) | 955,274 | 639,614 |
Fixed maturities without a single maturity date (fair value) | 953,451 | 643,206 |
Fair Value (fixed maturities) | $953,451 | $643,206 |
Fixed maturities without a single maturity date (% of total fair value) | 8.00% | 5.40% |
INVESTMENTS_DETAILS_3
INVESTMENTS (DETAILS 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | security | security |
Fixed Maturities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | $271,520 | $268,311 |
Unrealized Losses - 12 months or greater | -13,466 | -12,405 |
Fair Value - Less than 12 months | 4,889,507 | 1,432,707 |
Unrealized Losses - Less than 12 months | -166,571 | -6,080 |
Total Fair Value of Securities in Unrealized Loss Position | 5,161,027 | 1,701,018 |
Total Unrealized Losses | -180,037 | -18,485 |
Number of Available For Sale Securities In Unrealized Loss Positions | 1,127 | 478 |
Number of Available For Sale Securities in Unrealized Loss Positions for 12 Months or Greater | 99 | 146 |
Fixed Maturities [Member] | Below Investment Grade or Not Rated [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Total Unrealized Losses | -2,000 | -3,000 |
US Government and Agency [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 0 | 0 |
Unrealized Losses - 12 months or greater | 0 | 0 |
Fair Value - Less than 12 months | 982,307 | 119,730 |
Unrealized Losses - Less than 12 months | -33,952 | -119 |
Total Fair Value of Securities in Unrealized Loss Position | 982,307 | 119,730 |
Total Unrealized Losses | -33,952 | -119 |
Non-US Government [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 35,577 | 44,568 |
Unrealized Losses - 12 months or greater | -3,430 | -1,453 |
Fair Value - Less than 12 months | 420,622 | 153,134 |
Unrealized Losses - Less than 12 months | -46,562 | -748 |
Total Fair Value of Securities in Unrealized Loss Position | 456,199 | 197,702 |
Total Unrealized Losses | -49,992 | -2,201 |
Corporate Debt [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 27,696 | 95,511 |
Unrealized Losses - 12 months or greater | -802 | -2,947 |
Fair Value - Less than 12 months | 606,592 | 451,651 |
Unrealized Losses - Less than 12 months | -9,426 | -2,945 |
Total Fair Value of Securities in Unrealized Loss Position | 634,288 | 547,162 |
Total Unrealized Losses | -10,228 | -5,892 |
Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 144,468 | 9,557 |
Unrealized Losses - 12 months or greater | -5,247 | -148 |
Fair Value - Less than 12 months | 1,478,527 | 521,400 |
Unrealized Losses - Less than 12 months | -53,044 | -1,522 |
Total Fair Value of Securities in Unrealized Loss Position | 1,622,995 | 530,957 |
Total Unrealized Losses | -58,291 | -1,670 |
CMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 13,319 | 1,749 |
Unrealized Losses - 12 months or greater | -116 | -16 |
Fair Value - Less than 12 months | 298,863 | 69,615 |
Unrealized Losses - Less than 12 months | -3,850 | -110 |
Total Fair Value of Securities in Unrealized Loss Position | 312,182 | 71,364 |
Total Unrealized Losses | -3,966 | -126 |
Non-Agency RMBS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 4,287 | 11,026 |
Unrealized Losses - 12 months or greater | -315 | -537 |
Fair Value - Less than 12 months | 5,319 | 115 |
Unrealized Losses - Less than 12 months | -83 | -33 |
Total Fair Value of Securities in Unrealized Loss Position | 9,606 | 11,141 |
Total Unrealized Losses | -398 | -570 |
ABS [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 37,765 | 99,514 |
Unrealized Losses - 12 months or greater | -2,941 | -7,034 |
Fair Value - Less than 12 months | 553,803 | 39,296 |
Unrealized Losses - Less than 12 months | -5,753 | -148 |
Total Fair Value of Securities in Unrealized Loss Position | 591,568 | 138,810 |
Total Unrealized Losses | -8,694 | -7,182 |
Municipals [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 8,408 | 6,386 |
Unrealized Losses - 12 months or greater | -615 | -270 |
Fair Value - Less than 12 months | 543,474 | 77,766 |
Unrealized Losses - Less than 12 months | -13,901 | -455 |
Total Fair Value of Securities in Unrealized Loss Position | 551,882 | 84,152 |
Total Unrealized Losses | -14,516 | -725 |
Equity Securities [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 3,499 | 11,554 |
Unrealized Losses - 12 months or greater | -398 | -1,793 |
Fair Value - Less than 12 months | 48,828 | 95,697 |
Unrealized Losses - Less than 12 months | -5,785 | -5,605 |
Total Fair Value of Securities in Unrealized Loss Position | 52,327 | 107,251 |
Total Unrealized Losses | -6,183 | -7,398 |
Number of Available For Sale Securities In Unrealized Loss Positions | 63 | 106 |
Number of Available For Sale Securities in Unrealized Loss Positions for 12 Months or Greater | 9 | 17 |
Common Stock [Member] | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' |
Fair Value - 12 months or greater | 3,499 | 11,554 |
Unrealized Losses - 12 months or greater | -398 | -1,793 |
Fair Value - Less than 12 months | 48,828 | 95,697 |
Unrealized Losses - Less than 12 months | -5,785 | -5,605 |
Total Fair Value of Securities in Unrealized Loss Position | 52,327 | 107,251 |
Total Unrealized Losses | ($6,183) | ($7,398) |
INVESTMENTS_DETAILS_4
INVESTMENTS (DETAILS 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 21, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 01, 2013 |
Hedge funds [Member] | Hedge funds [Member] | Hedge funds [Member] | Hedge funds [Member] | Long/short equity funds [Member] | Long/short equity funds [Member] | Long/short equity funds [Member] | Long/short equity funds [Member] | Long/short equity funds [Member] | Long/short equity funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Multi-strategy funds [Member] | Event driven funds [Member] | Event driven funds [Member] | Event driven funds [Member] | Event driven funds [Member] | Event driven funds [Member] | Event driven funds [Member] | Leveraged bank loan funds [Member] | Leveraged bank loan funds [Member] | Direct Lending Funds [Member] | Direct Lending Funds [Member] | Direct Lending Funds [Member] | Direct Lending Funds [Member] | Direct Lending Funds [Member] | Direct Lending Funds [Member] | CLO-Equities [Member] | CLO-Equities [Member] | CLO-Equities [Member] | |||
Lockup Redemption Restriction [Member] | Lockup Redemption Restriction [Member] | Other Redemption Restriction [Member] | Other Redemption Restriction [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Other Redemption Restriction [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Other Redemption Restriction [Member] | Other Redemption Restriction [Member] | Minimum [Member] | Maximum [Member] | Other Redemption Restriction [Member] | |||||||||||||||
Other Investments [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other investments | $1,045,810,000 | $843,437,000 | ' | ' | ' | ' | $425,444,000 | $302,680,000 | ' | ' | ' | ' | $285,155,000 | $244,075,000 | ' | ' | ' | ' | ' | $190,458,000 | $171,479,000 | ' | ' | ' | ' | $48,753,000 | $62,768,000 | $22,134,000 | $0 | ' | ' | ' | ' | $73,866,000 | $62,435,000 | ' |
Percentage of total fair value | 100.00% | 100.00% | ' | ' | ' | ' | 41.00% | 36.00% | ' | ' | ' | ' | 27.00% | 29.00% | ' | ' | ' | ' | ' | 18.00% | 20.00% | ' | ' | ' | ' | 5.00% | 8.00% | 2.00% | 0.00% | ' | ' | ' | ' | 7.00% | 7.00% | ' |
Redemption frequency | ' | ' | ' | ' | ' | ' | 'Monthly, Quarterly, Semi-annually | 'Monthly, Quarterly, Semi-annually | ' | ' | ' | ' | 'Quarterly, Semi-annually | 'Quarterly, Semi-annually | ' | ' | ' | ' | ' | 'Quarterly, Annually | 'Quarterly, Annually | ' | ' | ' | ' | 'Quarterly | 'Quarterly | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Redemption notice period | ' | ' | ' | ' | ' | ' | ' | ' | '30 days | '30 days | '60 days | '60 days | ' | ' | ' | '60 days | '60 days | '95 days | '95 days | ' | ' | '45 days | '45 days | '60 days | '95 days | '65 days | '65 days | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of other investments subject to redemption restrictions | ' | ' | 99,000,000 | 38,000,000 | 11,000,000 | 29,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,134,000 | 0 | ' | ' | ' | ' | ' |
Percentage of fair value of other investments subject to redemption restrictions | ' | ' | 10.00% | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.00% | 0.00% | ' | ' | ' | ' | ' |
Unfunded commitments related to other investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $54,000,000 | ' | $60,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $88,000,000 | $40,000,000 | ' | ' | $27,000,000 | ' | $60,000,000 |
Investment term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '10 years | ' | ' | ' |
Optional extension of investment term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' |
INVESTMENTS_DETAILS_5
INVESTMENTS (DETAILS 5) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | $440,838 | $409,088 | $387,947 |
Investment expenses | ' | ' | ' | ' | ' | ' | ' | ' | -31,526 | -28,131 | -25,517 |
Net investment income | 113,863 | 103,429 | 83,112 | 108,908 | 86,847 | 103,638 | 74,449 | 116,023 | 409,312 | 380,957 | 362,430 |
Fixed Maturities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | 293,609 | 304,400 | 337,616 |
Other Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | 128,814 | 87,660 | 31,856 |
Equity Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | 10,897 | 11,904 | 11,186 |
Cash And Cash Equivalents [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | 6,337 | 4,528 | 5,697 |
Short-term Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Investment Income [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross investment income | ' | ' | ' | ' | ' | ' | ' | ' | $1,181 | $596 | $1,592 |
INVESTMENTS_DETAILS_6
INVESTMENTS (DETAILS 6) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross realized gains | ' | ' | ' | ' | ' | ' | ' | ' | $175,496 | $278,493 | $260,288 |
Gross realized losses | ' | ' | ' | ' | ' | ' | ' | ' | -98,301 | -125,374 | -123,016 |
Net OTTI recognized in earnings | ' | ' | ' | ' | ' | ' | ' | ' | -9,362 | -24,234 | -15,861 |
Change in fair value of investment derivatives | ' | ' | ' | ' | ' | ' | ' | ' | 7,731 | -9,170 | 4,431 |
Fair value hedges | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 7,754 | -4,403 |
Total net realized investment gains | 19,558 | -4,708 | 16,235 | 44,478 | 31,771 | 50,803 | 30,405 | 14,491 | 75,564 | 127,469 | 121,439 |
Fair Value Hedging [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross realized gains | ' | ' | ' | ' | ' | ' | ' | ' | ' | 37,000 | ' |
Gross realized losses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -11,000 |
Fixed Maturities And Short-Term Investments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross realized gains | ' | ' | ' | ' | ' | ' | ' | ' | 120,932 | 242,082 | 243,296 |
Gross realized losses | ' | ' | ' | ' | ' | ' | ' | ' | -87,894 | -101,844 | -108,490 |
Equity Securities [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross realized gains | ' | ' | ' | ' | ' | ' | ' | ' | 54,564 | 36,411 | 16,992 |
Gross realized losses | ' | ' | ' | ' | ' | ' | ' | ' | ($10,407) | ($23,530) | ($14,526) |
INVESTMENTS_DETAILS_7
INVESTMENTS (DETAILS 7) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | $9,362 | $24,234 | $15,861 |
Fixed Maturities [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 6,747 | 7,913 | 3,215 |
Non-US Government [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 120 | 3,281 | 0 |
Corporate Debt [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 5,802 | 1,821 | 1,954 |
Non-Agency RMBS [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 57 | 2,016 | 717 |
ABS [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 129 | 795 | 61 |
Municipals [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 639 | 0 | 483 |
Equity Securities [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 2,615 | 16,321 | 12,646 |
Common Stock [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | 2,092 | 7,318 | 12,646 |
Exchange-Traded Funds [Member] | ' | ' | ' |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ' | ' | ' |
Total OTTI recognized in earnings | $523 | $9,003 | $0 |
INVESTMENTS_DETAILS_8
INVESTMENTS (DETAILS 8) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Credit Losses For Which a Portion of OTTI Was Recognized in AOCI [Roll Forward] | ' | ' |
Balance at beginning of period | $1,809 | $2,061 |
Credit impairments recognized on securities not previously impaired | 0 | 0 |
Additional credit impairments recognized on securities previously impaired | 0 | 0 |
Change in timing of future cash flows on securities previously impaired | 0 | 0 |
Intent to sell of securities previously impaired | 0 | 0 |
Securities sold/redeemed/matured | -215 | -252 |
Balance at end of period | $1,594 | $1,809 |
INVESTMENTS_DETAILS_9
INVESTMENTS (DETAILS 9) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | $11,986,327 | $11,928,049 | ' |
Decrease in credit loss impairments due to maturity | 215 | 252 | ' |
Realized gains on maturity | 175,496 | 278,493 | 260,288 |
Non-US Government [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 1,176,382 | 1,104,576 | ' |
Non-US Government [Member] | eurozone [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 161,000 | 217,000 | ' |
CMBS [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 797,414 | 840,084 | ' |
CMBS [Member] | Weighted Average [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Subordination percentage input for determining credit losses | 30.00% | 30.00% | ' |
Non-Agency RMBS [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 67,567 | 95,199 | ' |
Non-Agency RMBS [Member] | Prime [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 41,000 | 65,000 | ' |
Non-Agency RMBS [Member] | Alt A [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | 19,000 | 22,000 | ' |
CLO Debt Tranched Securities [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Fair Value (fixed maturities) | $30,000 | $53,000 | ' |
Default rate input for determining credit losses | 4.00% | 4.00% | ' |
Loss severity rate input for determining credit losses | 53.50% | 53.50% | ' |
CLO Debt Tranched Securities [Member] | Minimum [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Collateral spread input for determining credit losses | 2.70% | 2.50% | ' |
CLO Debt Tranched Securities [Member] | Maximum [Member] | ' | ' | ' |
Schedule Of Available For Sale Securities [Line Items] | ' | ' | ' |
Collateral spread input for determining credit losses | 3.50% | 3.70% | ' |
INVESTMENTS_DETAILS_10
INVESTMENTS (DETAILS 10) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Collateral in Trust for inter-company agreements | $2,261,081 | $2,134,931 |
Collateral for secured letter of credit facility | 777,828 | 470,062 |
Collateral in Trust for third party agreements | 276,839 | 245,539 |
Securities on deposit with regulatory authorities | 58,327 | 59,456 |
Total restricted investments | $3,374,075 | $2,909,988 |
INVESTMENTS_DETAILS_11
INVESTMENTS (DETAILS 11) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ' | ' |
Value of reverse repurchase agreements | $34 | $39 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% | ' |
FAIR_VALUE_MEASUREMENTS_DETAIL
FAIR VALUE MEASUREMENTS (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | $11,986,327 | $11,928,049 |
Equity securities | 701,987 | 666,548 |
Other investments | 1,045,810 | 843,437 |
Short-term investments | 46,212 | 108,860 |
Derivative assets (see Note 7) | 7,808 | 5,838 |
Derivative liabilities (see Note 7) | 1,967 | 3,737 |
Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 11,986,327 | 11,928,049 |
Equity securities | 701,987 | 666,548 |
Other investments | 1,045,810 | 843,437 |
Short-term investments | 46,212 | 108,860 |
Derivative assets (see Note 7) | 7,808 | 5,838 |
Total assets | 13,788,144 | 13,552,732 |
Derivative liabilities (see Note 7) | 1,967 | 3,737 |
Cash settled awards (see Note 16) | 8,693 | 0 |
Total liabilities | 10,660 | 3,737 |
US Government and Agency [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,388,698 | 1,422,885 |
US Government and Agency [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,388,698 | 1,422,885 |
Non-US Government [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,176,382 | 1,104,576 |
Non-US Government [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,176,382 | 1,104,576 |
Corporate Debt [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 3,608,238 | 3,876,382 |
Corporate Debt [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 3,608,238 | 3,876,382 |
Agency RMBS [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,448,827 | 2,659,908 |
Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,448,827 | 2,659,908 |
CMBS [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 797,414 | 840,084 |
CMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 797,414 | 840,084 |
Non-Agency RMBS [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 67,567 | 95,199 |
Non-Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 67,567 | 95,199 |
ABS [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 953,451 | 643,206 |
ABS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 953,451 | 643,206 |
Municipals [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,545,750 | 1,285,809 |
Municipals [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,545,750 | 1,285,809 |
Common Stock [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 438,318 | 443,398 |
Common Stock [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 438,318 | 443,398 |
Exchange-Traded Funds [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 138,847 | 119,161 |
Exchange-Traded Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 138,847 | 119,161 |
Non-U.S. Bond Mutual Funds [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 124,822 | 103,989 |
Non-U.S. Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 124,822 | 103,989 |
Hedge funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 949,810 | 781,002 |
Direct Lending Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 22,134 | 0 |
CLO-Equities [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 73,866 | 62,435 |
Level 1 [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,119,632 | 1,094,220 |
Equity securities | 577,165 | 562,559 |
Other investments | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative assets (see Note 7) | 0 | 0 |
Total assets | 1,696,797 | 1,656,779 |
Derivative liabilities (see Note 7) | 0 | 0 |
Cash settled awards (see Note 16) | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 [Member] | US Government and Agency [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,119,632 | 1,094,220 |
Level 1 [Member] | Non-US Government [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | Corporate Debt [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | CMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | Non-Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | ABS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | Municipals [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 1 [Member] | Common Stock [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 438,318 | 443,398 |
Level 1 [Member] | Exchange-Traded Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 138,847 | 119,161 |
Level 1 [Member] | Non-U.S. Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 1 [Member] | Hedge funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 0 | 0 |
Level 1 [Member] | Direct Lending Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 0 | 0 |
Level 1 [Member] | CLO-Equities [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 0 | 0 |
Level 2 [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 10,831,878 | 10,762,898 |
Equity securities | 124,822 | 103,989 |
Other investments | 488,755 | 421,006 |
Short-term investments | 46,212 | 108,860 |
Derivative assets (see Note 7) | 6,824 | 5,838 |
Total assets | 11,498,491 | 11,402,591 |
Derivative liabilities (see Note 7) | 1,152 | 3,737 |
Cash settled awards (see Note 16) | 8,693 | 0 |
Total liabilities | 9,845 | 3,737 |
Level 2 [Member] | US Government and Agency [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 269,066 | 328,665 |
Level 2 [Member] | Non-US Government [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,176,382 | 1,104,576 |
Level 2 [Member] | Corporate Debt [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 3,608,238 | 3,874,832 |
Level 2 [Member] | Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 2,448,827 | 2,659,908 |
Level 2 [Member] | CMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 793,396 | 835,788 |
Level 2 [Member] | Non-Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 67,567 | 94,089 |
Level 2 [Member] | ABS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 922,652 | 579,231 |
Level 2 [Member] | Municipals [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 1,545,750 | 1,285,809 |
Level 2 [Member] | Common Stock [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 2 [Member] | Exchange-Traded Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 2 [Member] | Non-U.S. Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 124,822 | 103,989 |
Level 2 [Member] | Hedge funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 488,755 | 421,006 |
Level 2 [Member] | Direct Lending Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 0 | 0 |
Level 2 [Member] | CLO-Equities [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 0 | 0 |
Level 3 [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 34,817 | 70,931 |
Equity securities | 0 | 0 |
Other investments | 557,055 | 422,431 |
Short-term investments | 0 | 0 |
Derivative assets (see Note 7) | 984 | 0 |
Total assets | 592,856 | 493,362 |
Derivative liabilities (see Note 7) | 815 | 0 |
Cash settled awards (see Note 16) | 0 | 0 |
Total liabilities | 815 | 0 |
Level 3 [Member] | US Government and Agency [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 3 [Member] | Non-US Government [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 3 [Member] | Corporate Debt [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 1,550 |
Level 3 [Member] | Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 3 [Member] | CMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 4,018 | 4,296 |
Level 3 [Member] | Non-Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 1,110 |
Level 3 [Member] | ABS [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 30,799 | 63,975 |
Level 3 [Member] | Municipals [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Fixed maturities | 0 | 0 |
Level 3 [Member] | Common Stock [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 3 [Member] | Exchange-Traded Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 3 [Member] | Non-U.S. Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Equity securities | 0 | 0 |
Level 3 [Member] | Hedge funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 461,055 | 359,996 |
Level 3 [Member] | Direct Lending Funds [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | 22,134 | 0 |
Level 3 [Member] | CLO-Equities [Member] | Fair Value Measurements Recurring [Member] | ' | ' |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ' | ' |
Other investments | $73,866 | $62,435 |
FAIR_VALUE_MEASUREMENTS_DETAIL1
FAIR VALUE MEASUREMENTS (DETAILS 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Level 3 [Member] | Level 3 [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Broker-dealer quote [Member] | Net asset value [Member] | Simulation model [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | Maximum [Member] | Weighted Average [Member] | Weighted Average [Member] | ||
ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Simulation model [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | Simulation model [Member] | Discounted cash flow [Member] | Discounted cash flow [Member] | |||
ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | Weather Related Derivative [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | Level 3 [Member] | |||||
ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | Weather Related Derivative [Member] | ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | Weather Related Derivative [Member] | ABS - CLO Debt [Member] | Other Investments - CLO-Equities [Member] | ||||||||||
Fair Value Inputs Assets Quantitative Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fixed maturities | $11,986,327 | $11,928,049 | $30,799 | ' | $29,944 | ' | $855 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other investments | 1,045,810 | 843,437 | ' | 73,866 | ' | 39,706 | ' | 34,160 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net derivative assets | ' | ' | ' | ' | ' | ' | ' | ' | $169 | ' | ' | ' | ' | ' | ' | ' | ' |
Credit spread | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.30% | ' | ' | 4.60% | ' | ' | 3.70% | ' |
Illiquidity discount | ' | ' | ' | ' | 5.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.00% | ' |
Default rates | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.00% | ' | ' | 5.00% | ' | ' | 4.40% |
Loss severity rate | ' | ' | ' | ' | ' | 53.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 53.50% |
Collateral spreads | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.60% | ' | ' | 3.40% | ' | ' | 3.30% |
Estimated maturity dates (years) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 37 days | ' | ' | '4 years 219 days | ' | ' | '4 years 73 days |
Weather curve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 525 | ' | ' | 4,750 | ' | ' |
Weather standard deviation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 94 | ' | ' | 290 | ' | ' |
FAIR_VALUE_MEASUREMENTS_DETAIL2
FAIR VALUE MEASUREMENTS (DETAILS 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Fixed Maturities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | $70,931 | $50,878 |
Transfers into Level 3 | 0 | 15,945 |
Transfers out of Level 3 | -1,222 | 0 |
Included in earnings | 1,439 | 0 |
Included in OCI | 1,651 | 5,112 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -37,982 | -1,004 |
Balance at end of period | 34,817 | 70,931 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Other Investments [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 422,431 | 412,804 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | -9,435 |
Included in earnings | 86,066 | 64,409 |
Included in OCI | 0 | 0 |
Purchases | 142,471 | 0 |
Sales | 0 | -2,835 |
Settlements / distributions | -93,913 | -42,512 |
Balance at end of period | 557,055 | 422,431 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 86,066 | 64,409 |
Other Assets [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 2,084 | 0 |
Included in OCI | 0 | 0 |
Purchases | -1,100 | 0 |
Sales | 0 | 0 |
Settlements / distributions | 0 | 0 |
Balance at end of period | 984 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 2,084 | 0 |
Total Assets [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 493,362 | 463,682 |
Transfers into Level 3 | 0 | 15,945 |
Transfers out of Level 3 | -1,222 | -9,435 |
Included in earnings | 89,589 | 64,409 |
Included in OCI | 1,651 | 5,112 |
Purchases | 141,371 | 0 |
Sales | 0 | -2,835 |
Settlements / distributions | -131,895 | -43,516 |
Balance at end of period | 592,856 | 493,362 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 88,150 | 64,409 |
Total Liabilities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 98 | 0 |
Included in OCI | 0 | 0 |
Purchases | 717 | 0 |
Sales | 0 | 0 |
Settlements / distributions | 0 | 0 |
Balance at end of period | 815 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 98 | 0 |
Corporate Debt [Member] | Fixed Maturities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 1,550 | 1,550 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 1,550 | 0 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -3,100 | 0 |
Balance at end of period | 0 | 1,550 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Non-Agency RMBS [Member] | Fixed Maturities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 1,110 | 0 |
Transfers into Level 3 | 0 | 1,110 |
Transfers out of Level 3 | -1,222 | 0 |
Included in earnings | 0 | 0 |
Included in OCI | 135 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -23 | 0 |
Balance at end of period | 0 | 1,110 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
CMBS [Member] | Fixed Maturities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 4,296 | 0 |
Transfers into Level 3 | 0 | 4,296 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 0 | 0 |
Included in OCI | -278 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements / distributions | 0 | 0 |
Balance at end of period | 4,018 | 4,296 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
ABS [Member] | Fixed Maturities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 63,975 | 49,328 |
Transfers into Level 3 | 0 | 10,539 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | -111 | 0 |
Included in OCI | 1,794 | 5,112 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -34,859 | -1,004 |
Balance at end of period | 30,799 | 63,975 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Hedge funds [Member] | Other Investments [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 359,996 | 346,244 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | -9,435 |
Included in earnings | 58,293 | 33,301 |
Included in OCI | 0 | 0 |
Purchases | 86,138 | 0 |
Sales | 0 | -2,835 |
Settlements / distributions | -43,372 | -7,279 |
Balance at end of period | 461,055 | 359,996 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 58,293 | 33,301 |
Direct Lending Funds [Member] | Other Investments [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | -125 | 0 |
Included in OCI | 0 | 0 |
Purchases | 22,317 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -58 | 0 |
Balance at end of period | 22,134 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | -125 | 0 |
CLO-Equities [Member] | Other Investments [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 62,435 | 66,560 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 27,898 | 31,108 |
Included in OCI | 0 | 0 |
Purchases | 34,016 | 0 |
Sales | 0 | 0 |
Settlements / distributions | -50,483 | -35,233 |
Balance at end of period | 73,866 | 62,435 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 27,898 | 31,108 |
Derivative [Member] | Other Assets [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 2,084 | 0 |
Included in OCI | 0 | 0 |
Purchases | -1,100 | 0 |
Sales | 0 | 0 |
Settlements / distributions | 0 | 0 |
Balance at end of period | 984 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 2,084 | 0 |
Derivative [Member] | Other Liabilities [Member] | ' | ' |
Changes in Level 3 Financial Instruments Measured at Fair Value on a Recurring Basis [Line Items] | ' | ' |
Balance at beginning of period | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 98 | 0 |
Included in OCI | 0 | 0 |
Purchases | 717 | 0 |
Sales | 0 | 0 |
Settlements / distributions | 0 | 0 |
Balance at end of period | 815 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | $98 | $0 |
FAIR_VALUE_MEASUREMENTS_DETAIL3
FAIR VALUE MEASUREMENTS (DETAILS 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Senior notes | $995,855 | $995,245 |
Estimate Of Fair Value [Member] | ' | ' |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ' | ' |
Senior notes | $1,073,000 | $1,091,000 |
DERIVATIVE_INSTRUMENTS_DETAILS
DERIVATIVE INSTRUMENTS (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | $7,808 | $5,838 |
Liability Derivative Fair Value | 1,967 | 3,737 |
Other Assets [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | 7,808 | 5,838 |
Other Liabilities [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Liability Derivative Fair Value | 1,967 | 3,737 |
Investment Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Derivative Notional Amount | 254,023 | 287,819 |
Investment Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | 1,214 | 1,067 |
Investment Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Liability Derivative Fair Value | 1,032 | 2,733 |
Investment Portfolio [Member] | Interest Rate Swap [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Derivative Notional Amount | 281,250 | 0 |
Investment Portfolio [Member] | Interest Rate Swap [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | 873 | 0 |
Investment Portfolio [Member] | Interest Rate Swap [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Liability Derivative Fair Value | 0 | 0 |
Underwriting Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Derivative Notional Amount | 390,663 | 476,191 |
Underwriting Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | 4,737 | 4,771 |
Underwriting Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Liability Derivative Fair Value | 120 | 1,004 |
Underwriting Portfolio [Member] | Weather Related Derivative [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Derivative Notional Amount | 24,451 | 0 |
Underwriting Portfolio [Member] | Weather Related Derivative [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Asset Derivative Fair Value | 984 | 0 |
Underwriting Portfolio [Member] | Weather Related Derivative [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ' | ' |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ' | ' |
Liability Derivative Fair Value | $815 | $0 |
DERIVATIVE_INSTRUMENTS_DETAILS1
DERIVATIVE INSTRUMENTS (DETAILS 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Derivative assets - gross amounts | $9,796 | $6,476 |
Derivative assets - gross amounts offset | -1,988 | -639 |
Asset Derivative Fair Value | 7,808 | 5,838 |
Derivative liabilities - gross amounts | 3,955 | 4,376 |
Derivative liabilities - gross amounts offset | -1,988 | -639 |
Liability Derivative Fair Value | $1,967 | $3,737 |
DERIVATIVE_INSTRUMENTS_DETAILS2
DERIVATIVE INSTRUMENTS (DETAILS 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' | ' |
Foreign exchange forward contracts | $0 | $10,853 | $11,682 |
Hedged investment portfolio | 0 | -3,099 | -16,085 |
Hedge ineffectiveness recognized in earnings | $0 | $7,754 | ($4,403) |
DERIVATIVE_INSTRUMENTS_DETAILS3
DERIVATIVE INSTRUMENTS (DETAILS 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | $11,408 | $17,442 | $38,591 |
Investment Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Net Realized Investment Gains (Losses) [Member] | ' | ' | ' |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | 10,843 | -9,170 | 4,431 |
Investment Portfolio [Member] | Interest Rate Swap [Member] | Net Realized Investment Gains (Losses) [Member] | ' | ' | ' |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | -3,112 | 0 | 0 |
Underwriting Portfolio [Member] | Foreign Exchange Forward Contracts [Member] | Foreign Exchange Gains (Losses) [Member] | ' | ' | ' |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | 1,690 | 26,612 | 33,893 |
Underwriting Portfolio [Member] | Currency Collar Options [Member] | Foreign Exchange Gains (Losses) [Member] | ' | ' | ' |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | 0 | 0 | 267 |
Underwriting Portfolio [Member] | Weather Related Derivative [Member] | Other Insurance Related Income [Member] | ' | ' | ' |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | ' | ' | ' |
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | $1,987 | $0 | $0 |
RESERVE_FOR_LOSSES_AND_LOSS_EX2
RESERVE FOR LOSSES AND LOSS EXPENSES (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Insurance Loss Reserves [Abstract] | ' | ' | ' | ' |
Reserve for reported losses and loss expenses | $3,499,817 | $3,272,682 | ' | ' |
Reserve for losses incurred but not reported | 6,082,323 | 5,786,049 | ' | ' |
Reserve for losses and loss expenses | $9,582,140 | $9,058,731 | $8,425,045 | $7,032,375 |
RESERVE_FOR_LOSSES_AND_LOSS_EX3
RESERVE FOR LOSSES AND LOSS EXPENSES (DETAILS 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | ' | ' | ' |
Gross reserve for losses and loss expenses, beginning of period | $9,058,731 | $8,425,045 | $7,032,375 |
Less reinsurance recoverable on unpaid losses, beginning of period | -1,825,617 | -1,736,823 | -1,540,633 |
Net reserve for unpaid losses and loss expenses, beginning of period | 7,233,114 | 6,688,222 | 5,491,742 |
Net incurred losses and loss expenses related to: | ' | ' | ' |
Current year | 2,353,631 | 2,340,868 | 2,932,513 |
Prior years | -219,436 | -244,840 | -257,461 |
Net incurred losses and loss expenses | 2,134,195 | 2,096,028 | 2,675,052 |
Net paid losses and loss expenses related to: | ' | ' | ' |
Current year | -318,006 | -322,836 | -509,075 |
Prior years | -1,373,459 | -1,299,384 | -953,035 |
Net paid losses and loss expenses | -1,691,465 | -1,622,220 | -1,462,110 |
Foreign exchange and other | 6,184 | 71,084 | -16,462 |
Net reserve for unpaid losses and loss expenses, end of period | 7,682,028 | 7,233,114 | 6,688,222 |
Reinsurance recoverable on unpaid losses, end of period | 1,900,112 | 1,825,617 | 1,736,823 |
Gross reserve for losses and loss expenses, end of period | $9,582,140 | $9,058,731 | $8,425,045 |
RESERVE_FOR_LOSSES_AND_LOSS_EX4
RESERVE FOR LOSSES AND LOSS EXPENSES (DETAILS 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Net Favorable Prior Year Reserve Development [Line Items] | ' | ' | ' |
Net favorable prior year reserve development | $219,436 | $244,840 | $257,461 |
Insurance [Member] | ' | ' | ' |
Net Favorable Prior Year Reserve Development [Line Items] | ' | ' | ' |
Net favorable prior year reserve development | 50,355 | 122,209 | 103,014 |
Reinsurance [Member] | ' | ' | ' |
Net Favorable Prior Year Reserve Development [Line Items] | ' | ' | ' |
Net favorable prior year reserve development | $169,081 | $122,631 | $154,447 |
RESERVE_FOR_LOSSES_AND_LOSS_EX5
RESERVE FOR LOSSES AND LOSS EXPENSES (DETAILS 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Current year net loss and loss expenses | $2,353,631 | $2,340,868 | $2,932,513 |
Net favorable (adverse) prior year reserve development | 219,436 | 244,840 | 257,461 |
Short Tail Lines Insurance And Reinsurance Business [Member] | ' | ' | ' |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Net favorable (adverse) prior year reserve development | 162,000 | 186,000 | 178,000 |
Liability Reinsurance Business [Member] | ' | ' | ' |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Net favorable (adverse) prior year reserve development | 85,000 | ' | ' |
Professional Lines Insurance And Reinsurance Business [Member] | ' | ' | ' |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Net favorable (adverse) prior year reserve development | -29,000 | 54,000 | 105,000 |
Professional Lines Insurance Business [Member] | ' | ' | ' |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Net favorable (adverse) prior year reserve development | -51,000 | ' | ' |
Catastrophe and Weather-related Events [Member] | ' | ' | ' |
Additional Information Related to Net Incurred Losses [Line Items] | ' | ' | ' |
Current year net loss and loss expenses | $201,000 | $438,000 | $944,000 |
REINSURANCE_DETAILS
REINSURANCE (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Premiums written: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross | ' | ' | ' | ' | ' | ' | ' | ' | $4,697,041,000 | $4,139,643,000 | $4,096,153,000 |
Ceded | ' | ' | ' | ' | ' | ' | ' | ' | -768,841,000 | -802,187,000 | -676,719,000 |
Net | ' | ' | ' | ' | ' | ' | ' | ' | 3,928,200,000 | 3,337,456,000 | 3,419,434,000 |
Premiums earned: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gross | ' | ' | ' | ' | ' | ' | ' | ' | 4,459,269,000 | 4,141,037,000 | 3,973,956,000 |
Ceded | ' | ' | ' | ' | ' | ' | ' | ' | -752,204,000 | -725,574,000 | -658,995,000 |
Net | 941,911,000 | 945,242,000 | 945,873,000 | 874,039,000 | 856,049,000 | 862,447,000 | 850,603,000 | 846,362,000 | 3,707,065,000 | 3,415,463,000 | 3,314,961,000 |
Reinsurance receivables: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Ceded losses and loss expenses | ' | ' | ' | ' | ' | ' | ' | ' | 415,000,000 | 396,000,000 | 450,000,000 |
Provision for unrecoverable reinsurance | $18,000,000 | ' | ' | ' | $16,000,000 | ' | ' | ' | $18,000,000 | $16,000,000 | ' |
Percentage of gross reinsurance recoverables collectible from reinsurers rated A- or better by A.M. Best | 98.80% | ' | ' | ' | 98.80% | ' | ' | ' | 98.80% | 98.80% | ' |
DEBT_AND_FINANCING_ARRANGEMENT1
DEBT AND FINANCING ARRANGEMENTS (DETAILS) (Senior Notes [Member], USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 15, 2004 | Dec. 31, 2013 | Mar. 23, 2010 | Dec. 31, 2013 |
2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2010 AXIS Capital Finance LLC Senior Notes [Member] | 2010 AXIS Capital Finance LLC Senior Notes [Member] | ||||
Senior notes [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | ' | ' | ' | $500 | ' | $500 |
Interest rate | ' | ' | ' | ' | 5.75% | ' | 5.88% |
Issue price (percentage of face amount) | ' | ' | ' | 99.79% | ' | 99.62% | ' |
Net proceeds on issuance | ' | ' | ' | 496 | ' | 495 | ' |
Percentage ownership in subsidiary | ' | ' | ' | ' | ' | ' | 100.00% |
Interest Expense | $59 | $59 | $59 | ' | ' | ' | ' |
DEBT_AND_FINANCIING_ARRANGEMEN
DEBT AND FINANCIING ARRANGEMENTS (DETAILS 2) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2013 |
Letter of Credit Facility [Member] | Citibank [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum capacity | $750 |
Termination notice requirement for lender after agreed date | '30 days |
Letters of credit outstanding | 501 |
Letter of Credit Facility [Member] | ING [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum capacity | 170 |
Letters of credit outstanding | 170 |
Credit Facility [Member] | Syndication of Lenders [Member] | ' |
Line of Credit Facility [Line Items] | ' |
Maximum capacity | 250 |
Potential increase in maximum capacity | 150 |
Letters of credit outstanding | 0 |
Credit facility borrowings | $0 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Commitments and Contingencies Disclosure [Abstract] | ' | ' |
Fixed maturity portfolio - corporate issuer concentration limit A- above | 2.00% | ' |
Fixed maturity portfolio - corporate issuer concentration limit below A- | 1.00% | ' |
Premiums receivable allowance for doubtful accounts | $3 | $2 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (DETAILS 2) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
broker | |||
Reinsurance Recoverable On Unpaid And Paid Losses [Member] | Credit Risk Concentration [Member] | Reinsurer 1 [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 14.00% | 13.00% | ' |
Reinsurance Recoverable On Unpaid And Paid Losses [Member] | Credit Risk Concentration [Member] | Reinsurer 2 [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 11.00% | 10.00% | ' |
Reinsurance Recoverable On Unpaid And Paid Losses [Member] | Credit Risk Concentration [Member] | Reinsurer 3 [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 11.00% | 10.00% | ' |
Reinsurance Recoverable On Unpaid And Paid Losses [Member] | Credit Risk Concentration [Member] | Top Ten Reinsurers [Member] | AM Best A Plus [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 77.00% | 72.00% | ' |
Gross Premiums Written [Member] | Customer Concentration [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 61.00% | 61.00% | 63.00% |
Concentration risk, number of brokers exceeding threshold | 3 | ' | ' |
Gross Premiums Written [Member] | Customer Concentration [Member] | Aon Corporation [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 26.00% | 27.00% | 27.00% |
Gross Premiums Written [Member] | Customer Concentration [Member] | Marsh, Inc. [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 23.00% | 22.00% | 23.00% |
Gross Premiums Written [Member] | Customer Concentration [Member] | Willis Group Holdings Ltd. [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration risk, percentage of total | 12.00% | 12.00% | 13.00% |
COMMITMENTS_AND_CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (DETAILS 3) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ' | ' | ' |
Rent expense related to operating leases | $29,000,000 | $29,000,000 | $24,000,000 |
Office Space [Member] | ' | ' | ' |
Future minimum lease payments under operating leases [Line Items] | ' | ' | ' |
2014 | 31,207,000 | ' | ' |
2015 | 27,378,000 | ' | ' |
2016 | 23,838,000 | ' | ' |
2017 | 20,881,000 | ' | ' |
2018 | 17,955,000 | ' | ' |
Later years | 53,049,000 | ' | ' |
Total future minimum lease payments | $174,308,000 | ' | ' |
COMMITMENTS_AND_CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (DETAILS 4) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Outstanding reinsurance purchase commitment | $80 |
EARNINGS_PER_COMMON_SHARE_DETA
EARNINGS PER COMMON SHARE (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Basic earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | $727,465 | $547,241 | $46,305 |
Less: preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | 40,474 | 38,228 | 36,875 |
Less: loss on repurchase of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 3,081 | 14,009 | 0 |
Net income available to common shareholders | 171,524 | 137,121 | 72,447 | 302,816 | -18,551 | 223,407 | 168,152 | 121,997 | 683,910 | 495,004 | 9,430 |
Weighted average number of common shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 113,636 | 122,148 | 122,499 |
Basic earnings per common share | $1.55 | $1.23 | $0.63 | $2.59 | ($0.16) | $1.84 | $1.36 | $0.97 | $6.02 | $4.05 | $0.08 |
Diluted earnings per common share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income available to common shareholders | $171,524 | $137,121 | $72,447 | $302,816 | ($18,551) | $223,407 | $168,152 | $121,997 | $683,910 | $495,004 | $9,430 |
Weighted average number of common shares outstanding - basic | ' | ' | ' | ' | ' | ' | ' | ' | 113,636 | 122,148 | 122,499 |
Warrants | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 4,292 |
Stock compensation plans | ' | ' | ' | ' | ' | ' | ' | ' | 1,692 | 1,506 | 1,331 |
Weighted average number of common shares outstanding - diluted | ' | ' | ' | ' | ' | ' | ' | ' | 115,328 | 123,654 | 128,122 |
Diluted earnings per common share | $1.52 | $1.21 | $0.62 | $2.55 | ($0.16) | $1.82 | $1.35 | $0.96 | $5.93 | $4 | $0.07 |
Anti-dilutive shares excluded from the dilutive computation | ' | ' | ' | ' | ' | ' | ' | ' | 250 | 614 | 1,134 |
SHAREHOLDERS_EQUITY_DETAILS
SHAREHOLDERS' EQUITY (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Class of Stock [Line Items] | ' | ' | ' |
Authorized share capital, common | 800,000,000 | 800,000,000 | ' |
Par value per share, common | $0.01 | $0.01 | ' |
Shares issued, balance at beginning of period | 171,867,000 | ' | ' |
Total shares issued at end of period | 174,134,000 | 171,867,000 | ' |
Treasury shares, balance at beginning of period | -53,947,000 | ' | ' |
Total treasury shares at end of period | -64,649,000 | -53,947,000 | ' |
Total shares outstanding | 109,485,000 | 117,920,000 | ' |
Cash dividends declared per common share | $1.02 | $0.97 | $0.93 |
Common Stock [Member] | ' | ' | ' |
Class of Stock [Line Items] | ' | ' | ' |
Shares issued, balance at beginning of period | 171,867,000 | 170,159,000 | 154,912,000 |
Shares issued | 2,267,000 | 1,708,000 | 15,247,000 |
Total shares issued at end of period | 174,134,000 | 171,867,000 | 170,159,000 |
Treasury shares, balance at beginning of period | -53,947,000 | -44,571,000 | -42,519,000 |
Shares repurchased | -10,830,000 | -9,376,000 | -2,052,000 |
Shares reissued from treasury | 128,000 | 0 | 0 |
Total treasury shares at end of period | -64,649,000 | -53,947,000 | -44,571,000 |
Total shares outstanding | 109,485,000 | 117,920,000 | 125,588,000 |
SHAREHOLDERS_EQUITY_DETAILS_2
SHAREHOLDERS' EQUITY (DETAILS 2) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Dividends paid | $118,426 | $120,487 | $206,455 |
Founders' Warrants [Member] | ' | ' | ' |
Class of Warrant or Right [Line Items] | ' | ' | ' |
Common shares issued to warrant holders | ' | ' | 12,893,483 |
Warrants exercised | ' | ' | 19,827,760 |
Dividends paid | ' | ' | $93,000 |
SHAREHOLDERS_EQUITY_DETAILS_3
SHAREHOLDERS' EQUITY (DETAILS 3) (Common Stock [Member], USD $) | 0 Months Ended | 12 Months Ended | ||
Dec. 09, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Treasury Shares [Line Items] | ' | ' | ' | ' |
Value of share repurchase authorized by the Board of Directors during the period | $750,000,000 | ' | ' | ' |
Total shares | ' | 10,830,000 | 9,376,000 | 2,052,000 |
Total cost | ' | 472,263,000 | 317,687,000 | 65,885,000 |
Average price per share | ' | $43.61 | $33.88 | $32.11 |
In the Open Market [Member] | ' | ' | ' | ' |
Treasury Shares [Line Items] | ' | ' | ' | ' |
Total shares | ' | 7,362,000 | 6,057,000 | 1,609,000 |
Total cost | ' | 337,083,000 | 203,704,000 | 49,974,000 |
Average price per share | ' | $45.79 | $33.63 | $31.07 |
From Employees [Member] | ' | ' | ' | ' |
Treasury Shares [Line Items] | ' | ' | ' | ' |
Total shares | ' | 468,000 | 319,000 | 443,000 |
Total cost | ' | 19,080,000 | 10,483,000 | 15,911,000 |
Average price per share | ' | $40.75 | $32.85 | $35.92 |
From Founding Shareholder [Member] | ' | ' | ' | ' |
Treasury Shares [Line Items] | ' | ' | ' | ' |
Total shares | ' | 3,000,000 | 3,000,000 | 0 |
Total cost | ' | $116,100,000 | $103,500,000 | $0 |
Average price per share | ' | $38.70 | $34.50 | $0 |
From Founding Shareholder [Member] | Trident [Member] | ' | ' | ' | ' |
Treasury Shares [Line Items] | ' | ' | ' | ' |
Total shares | ' | 3,000,000 | 3,000,000 | 0 |
SHAREHOLDERS_EQUITY_DETAILS_4
SHAREHOLDERS' EQUITY (DETAILS 4) (USD $) | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 12 Months Ended | |||||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 30, 2013 | Dec. 17, 2012 | Mar. 31, 2012 | Oct. 31, 2005 | Jun. 30, 2013 | Jul. 15, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Apr. 30, 2013 | Nov. 30, 2005 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 15, 2013 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 03, 2014 | 31-May-13 | Dec. 31, 2013 |
Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series A 7.25% Preferred Shares [Member] | Series B 7.50% Preferred Shares [Member] | Series B 7.50% Preferred Shares [Member] | Series B 7.50% Preferred Shares [Member] | Series B 7.50% Preferred Shares [Member] | Series B 7.50% Preferred Shares [Member] | Series C 6.875% Preferred Shares [Member] | Series C 6.875% Preferred Shares [Member] | Series C 6.875% Preferred Shares [Member] | Series C 6.875% Preferred Shares [Member] | Series D 5.50% Preferred Shares [Member] | Series D 5.50% Preferred Shares [Member] | Series D 5.50% Preferred Shares [Member] | ||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, aggregate liquidation value issued | ' | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | ' | $250,000 | ' | ' | ' | ' | $400,000 | ' | ' | ' | $225,000 | ' |
Preferred shares, dividend rate | ' | ' | ' | ' | ' | ' | ' | 7.25% | ' | ' | ' | ' | ' | 7.50% | ' | ' | ' | ' | 6.88% | ' | ' | ' | 5.50% |
Preferred shares, aggregate liquidation preference repurchased | ' | ' | ' | 100,000 | ' | 150,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, par value per share | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | $0.01 | ' | ' | ' | $0.01 |
Preferred shares, liquidation preference per share | ' | ' | ' | $25 | ' | ' | ' | $25 | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | $25 | ' | ' | ' | $25 |
Preferred shares, redemption price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $100 | ' | ' | ' | ' | $25 | ' | ' | ' | $25 |
Preferred shares, floating dividend rate base | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.45% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, dividend declared per share | ' | ' | ' | ' | $0.45 | ' | ' | $0.91 | ' | $1.81 | $1.81 | ' | ' | $7.50 | $7.50 | $7.50 | ' | ' | $1.72 | $1.41 | ' | ' | $0.69 |
Preferred shares, dividends paid per share | ' | ' | ' | ' | ' | ' | ' | ' | $1.36 | $1.81 | $1.81 | ' | ' | $7.50 | $7.50 | $7.50 | $0.43 | ' | $1.72 | $0.98 | $0.34 | ' | $0.34 |
Preferred shares, number of shares repurchased | ' | ' | ' | 4,000,000 | ' | 6,000,000 | ' | ' | ' | ' | ' | 2,471,570 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on repurchase of preferred shares | 3,081 | 14,009 | 0 | 3,000 | ' | 5,000 | ' | ' | ' | ' | ' | 9,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, number of shares outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 28,430 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred shares, aggregate liquidation value outstanding | 627,843 | 502,843 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,000 | ' | ' | ' | ' | 400,000 | ' | ' | ' | ' |
Preferred shares, purchase price per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $102.81 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate cash payment to acquire preferred shares | $100,000 | $404,073 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | $254,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREHOLDERS_EQUITY_DETAILS_5
SHAREHOLDERS' EQUITY (DETAILS 5) (Dividend Adjustment [Member], Common Stock [Member], USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 31, 2012 |
Dividend Adjustment [Member] | Common Stock [Member] | ' |
Out of period adjustment amount [Line Items] | ' |
Out of period adjustment amount | $31 |
NONCONTROLLING_INTEREST_DETAIL
NONCONTROLLING INTEREST (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2013 |
Noncontrolling Interest [Member] | |||||
Noncontrolling Interest [Line Items] | ' | ' | ' | ' | ' |
Third party non-voting redeemable preferred share capital | ' | ' | ' | ' | $50,000,000 |
Cash and cash equivalents | $923,326,000 | $759,817,000 | $981,849,000 | $929,515,000 | $50,000,000 |
RETIREMENT_PLANS_DETAILS
RETIREMENT PLANS (DETAILS) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Total pension expenses | $20 | $20 | $20 |
SHAREBASED_COMPENSATION_DETAIL
SHARE-BASED COMPENSATION (DETAILS) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | |||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | 31-May-12 | 31-May-09 | 31-May-07 | Dec. 31, 2013 | Feb. 10, 2014 | Dec. 31, 2013 | Feb. 10, 2014 | Feb. 10, 2014 | |
Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Stock Options [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | 2007 Long-term Equity Compensation Plan [Member] | |
Performance [Member] | Service [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | Restricted Stock And Restricted Stock Units [Member] | |||||||||
Performance [Member] | Service [Member] | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Additional shares authorized for issuance under plan | ' | ' | ' | ' | ' | ' | 6,000,000 | 4,000,000 | 5,000,000 | ' | ' | ' | ' | ' |
Maximum number of shares to be issued under the plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,000,000 | ' | ' | ' | ' |
General award vesting period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '4 years | ' | ' |
Annual award vesting percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 25.00% | ' | ' |
Period of time subsequent to a change in control during which plan allows for accelerated vesting of awards for certain terminations | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | ' | ' |
Number of restricted stock and restricted stock units granted | 1,007,425 | 2,447,700 | 1,839,250 | 33,000 | 975,000 | ' | ' | ' | ' | ' | ' | ' | 91,917 | 1,890,523 |
Number of restricted stock granted which will settle in cash | 847,425 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 954,329 | ' | ' | ' |
Number of awards available for grant under plan | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,310,845 | ' | ' | ' | ' |
Expiry date from date of grant | ' | ' | ' | ' | ' | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
SHAREBASED_COMPENSATION_DETAIL1
SHARE-BASED COMPENSATION (DETAILS 2) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ' | ' | ' |
Accelerated and incremental share-based compensation expense related to senior leadership transitions | ' | $20,000,000 | ' |
Number of employees impacted by restricted stock award modifications during the period | ' | 1 | ' |
Restricted Stock And Restricted Stock Units RSU [Member] | ' | ' | ' |
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ' | ' | ' |
Granted (number) | 1,007,425 | 2,447,700 | 1,839,250 |
Weighted average grant date fair value - granted | $39.52 | $32.20 | $36.12 |
Share based compensation expense incurred | 57,000,000 | 68,000,000 | 39,000,000 |
Tax benefit related to share-based compensation costs incurred | 10,000,000 | 8,000,000 | 7,000,000 |
Number of restricted stock and restricted stock units granted which will settle in cash | 847,425 | ' | ' |
Liability for cash-settled units | 9,000,000 | 0 | ' |
Fair value - vested during period | 56,000,000 | 43,000,000 | 63,000,000 |
Unrecognized share-based compensation costs | $98,000,000 | $89,000,000 | ' |
Unrecognized share-based compensation costs, weighted average period expected to be recognized (years) | '2 years 164 days | '2 years 183 days | ' |
Restricted Stock And Restricted Stock Units RSU [Member] | Performance [Member] | ' | ' | ' |
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ' | ' | ' |
Nonvested restricted stock (number) - beginning of period | 250,000 | ' | ' |
Granted (number) | 33,000 | ' | ' |
Vested (number) | 0 | ' | ' |
Forfeited (number) | 0 | ' | ' |
Nonvested restricted stock (number) - end of period | 283,000 | ' | ' |
Weighted average grant date fair value - beginning of period | $34.42 | ' | ' |
Weighted average grant date fair value - granted | $45.89 | ' | ' |
Weighted average grant date fair value - vested | $0 | ' | ' |
Weighted average grant date fair value - forfeited | $0 | ' | ' |
Weighted average grant date fair value - end of period | $35.74 | ' | ' |
Restricted Stock And Restricted Stock Units RSU [Member] | Service [Member] | ' | ' | ' |
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ' | ' | ' |
Nonvested restricted stock (number) - beginning of period | 4,429,000 | ' | ' |
Granted (number) | 975,000 | ' | ' |
Vested (number) | -1,754,000 | ' | ' |
Forfeited (number) | -220,000 | ' | ' |
Nonvested restricted stock (number) - end of period | 3,430,000 | ' | ' |
Weighted average grant date fair value - beginning of period | $32.48 | ' | ' |
Weighted average grant date fair value - granted | $39.31 | ' | ' |
Weighted average grant date fair value - vested | $32.03 | ' | ' |
Weighted average grant date fair value - forfeited | $34.17 | ' | ' |
Weighted average grant date fair value - end of period | $34.72 | ' | ' |
SHAREBASED_COMPENSATION_DETAIL2
SHARE-BASED COMPENSATION (DETAILS 3) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Options outstanding [Roll Forward] | ' | ' |
Options outstanding and exercisable, beginning of year | 919,000 | ' |
Granted | 0 | ' |
Exercised | -706,000 | ' |
Expired | 0 | ' |
Options outstanding and exercisable, end of year | 213,000 | 919,000 |
Options exercisable | 213,000 | 919,000 |
Options outstanding, weighted average exercise price [Roll Forward] | ' | ' |
Weighted average exercise price options outstanding, beginning of year | $28.74 | ' |
Granted | $0 | ' |
Exercised | $28.96 | ' |
Expired | $0 | ' |
Weighted average exercise price options outstanding, end of year | $27.98 | $28.74 |
Weighted average exercise price, options exercisable | $27.98 | $28.74 |
Weighted average remaining contractual term, options outstanding | '1 year 12 days | ' |
Weighted average remaining contractual term, options exercisable | '1 year 12 days | ' |
Aggregate intrinsic value, options outstanding | $4,180,000 | ' |
Aggregate intrinsic value, options exercisable | 4,180,000 | ' |
Aggregate intrinsic value, options excerised | 10,000,000 | 11,000,000 |
Proceeds received on exercise from options | $17,000,000 | $3,000,000 |
RELATED_PARTY_TRANSACTIONS_DET
RELATED PARTY TRANSACTIONS (DETAILS) (USD $) | 6 Months Ended | 12 Months Ended | |||||
In Millions, unless otherwise specified | Jun. 30, 2012 | Jun. 30, 2012 | Jun. 30, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Blackstone Debt Advisors L.P. [Member] | Blackstone Alternative Asset Management L.P. [Member] | Blackstone Group [Member] | Blackstone Group [Member] | Stone Point Group [Member] | Stone Point Group [Member] | Stone Point Group [Member] | |
security | security | ||||||
Related Party Transaction [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Number of CLO investments where related party is collateral manager | 4 | ' | ' | ' | ' | ' | ' |
Number of hedge fund investments where related party is manager | ' | 2 | ' | ' | ' | ' | ' |
Management fees paid to related party | ' | ' | $1 | $2 | $2 | $2 | $0 |
INCOME_TAXES_DETAILS
INCOME TAXES (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income tax expense [Line Items] | ' | ' | ' |
Total income tax expense | $7,002 | $3,287 | $15,233 |
Net current tax (liabilities) receivables | 5,689 | 1,164 | 1,318 |
Net deferred tax assets | 80,258 | 52,794 | 60,836 |
Net tax assets | 85,947 | 53,958 | 62,154 |
United States [Member] | ' | ' | ' |
Income tax expense [Line Items] | ' | ' | ' |
Current income tax expense (benefit) | 12,466 | 4,931 | 5,064 |
Deferred income tax expense (benefit) | -13,976 | -10,749 | 1,379 |
Europe [Member] | ' | ' | ' |
Income tax expense [Line Items] | ' | ' | ' |
Current income tax expense (benefit) | 9,039 | 8,566 | 9,598 |
Deferred income tax expense (benefit) | -526 | 713 | -996 |
Other [Member] | ' | ' | ' |
Income tax expense [Line Items] | ' | ' | ' |
Current income tax expense (benefit) | 0 | -174 | 188 |
Deferred income tax expense (benefit) | ($1) | $0 | $0 |
INCOME_TAXES_DETAILS_2
INCOME TAXES (DETAILS 2) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Deferred tax assets | ' | ' | ' |
Discounting of loss reserves | $59,023 | $61,534 | ' |
Unearned premium | 39,146 | 32,355 | ' |
Operating loss carryforwards | 20,316 | 20,685 | ' |
Accruals not currently deductible | 39,018 | 25,638 | ' |
Other investment adjustments and impairments | 7,859 | 8,790 | ' |
Tax credits | 11,886 | 7,945 | ' |
Depreciation | 2,410 | 3,858 | ' |
Other deferred tax assets | 2,906 | 2,185 | ' |
Deferred tax assets before valulation allowance | 182,564 | 162,990 | ' |
Valuation allowance | -25,542 | -24,574 | ' |
Deferred tax assets net of valuation allowance | 157,022 | 138,416 | ' |
Deferred tax liabilities | ' | ' | ' |
Deferred acquisition costs | -37,226 | -27,211 | ' |
Net unrealized gains on investments | -23,200 | -44,137 | ' |
Amortization of intangible assets and goodwill | -10,059 | -8,258 | ' |
Accrued market discounts | -1,151 | -1,323 | ' |
Equalization reserves | -2,080 | -1,957 | ' |
Other deferred tax liabilities | -3,048 | -2,736 | ' |
Deferred tax liabilities | -76,764 | -85,622 | ' |
Net deferred tax assets | $80,258 | $52,794 | $60,836 |
INCOME_TAXES_DETAILS_3
INCOME TAXES (DETAILS 3) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Singapore [Member] | ' | ' |
Income tax carryforwards [Line Items] | ' | ' |
Operating Loss Carryforwards | $115 | $117 |
Australia [Member] | ' | ' |
Income tax carryforwards [Line Items] | ' | ' |
Operating Loss Carryforwards | 45 | 51 |
Europe [Member] | ' | ' |
Income tax carryforwards [Line Items] | ' | ' |
Foreign Tax Credit Carryforward | 4 | 3 |
United States [Member] | Alternative Minimum Tax Carryforward [Member] | ' | ' |
Income tax carryforwards [Line Items] | ' | ' |
Foreign Tax Credit Carryforward | $7 | $5 |
INCOME_TAXES_DETAILS_4
INCOME TAXES (DETAILS 4) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | Income Tax Expense [Member] | Income Tax Expense [Member] | Income Tax Expense [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member] | Operating Loss Carryforwards [Member] | Operating Loss Carryforwards [Member] | Foreign Tax Credit [Member] | Foreign Tax Credit [Member] | Other Tax Carryforwards [Member] | Other Tax Carryforwards [Member] | Other Tax Carryforwards [Member] | Other Tax Carryforwards [Member] | ||
Income Tax Expense [Member] | Income Tax Expense [Member] | Income Tax Expense [Member] | Income Tax Expense [Member] | Income Tax Expense [Member] | Income Tax Expense [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated Other Comprehensive Income [Member] | |||||||||
Valuation allowance movement [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Valuation allowance, beginning of year | $25,542 | $24,574 | $27,070 | $33,933 | $30,623 | ($1,528) | ($9,359) | ($9,359) | ' | ' | ' | ' | ' | ' | ' | ' |
Change in valuation allowance | ' | ' | ' | ' | ' | ' | ' | ' | -794 | 635 | 1,762 | 2,675 | -7,831 | 0 | 7,831 | 0 |
Valuation allowance, end of year | $25,542 | $24,574 | $27,070 | $33,933 | $30,623 | ($1,528) | ($9,359) | ($9,359) | ' | ' | ' | ' | ' | ' | ' | ' |
INCOME_TAXES_DETAILS_5
INCOME TAXES (DETAILS 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | ' | ' | ' |
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance | -0.70% | 0.60% | -15.50% |
Net tax exempt income | -1.30% | -1.50% | -11.20% |
Other | -0.40% | -0.30% | 4.30% |
Actual tax rate | 1.00% | 0.60% | 24.80% |
Income before income taxes - Bermuda (domestic) | $625,490 | $485,613 | $10,911 |
Income before income taxes - foreign | 108,977 | 64,915 | 50,627 |
Income before income taxes | $734,467 | $550,528 | $61,538 |
United States [Member] | ' | ' | ' |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | ' | ' | ' |
Foreign taxes at local expected rates | 2.10% | 0.40% | 33.20% |
Europe [Member] | ' | ' | ' |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | ' | ' | ' |
Foreign taxes at local expected rates | 1.00% | 1.40% | 10.70% |
Other [Member] | ' | ' | ' |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | ' | ' | ' |
Foreign taxes at local expected rates | 0.30% | 0.00% | 3.30% |
OTHER_COMPREHENSIVE_INCOME_LOS2
OTHER COMPREHENSIVE INCOME (LOSS) (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Before Tax Amount | ' | ' | ' |
Unrealized investment gains (losses) arising during the period | ($169,614) | $378,040 | $87,384 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | -67,156 | -127,828 | -121,248 |
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment | -236,770 | 250,212 | -33,864 |
Non-credit portion of OTTI losses | 0 | 0 | -585 |
Foreign currency translation adjustment | -21,414 | 510 | -3,045 |
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 0 | 1,718 | 92 |
Total other comprehensive income (loss) | -258,184 | 252,440 | -37,402 |
Tax (Expense) Benefit | ' | ' | ' |
Unrealized investment gains (losses) arising during the period | 7,782 | -29,530 | -13,087 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | 5,605 | 11,550 | 1,700 |
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment | 13,387 | -17,980 | -11,387 |
Non-credit portion of OTTI losses | 0 | 0 | 130 |
Foreign currency translation adjustment | 0 | 0 | 0 |
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 0 | 0 | 0 |
Total other comprehensive income (loss) | 13,387 | -17,980 | -11,257 |
Net of Tax Amount | ' | ' | ' |
Unrealized investment gains (losses) arising during the period | -161,832 | 348,510 | 74,297 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | -61,551 | -116,278 | -119,548 |
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment | -223,383 | 232,232 | -45,251 |
Non-credit portion of OTTI losses | 0 | 0 | -455 |
Foreign currency translation adjustment | -21,414 | 510 | -3,045 |
Net change in benefit plan assets and obligations recognized in equity and reclassification adjustment | 0 | 1,718 | 92 |
Total other comprehensive income (loss), net of tax | ($244,797) | $234,460 | ($48,659) |
OTHER_COMPREHENSIVE_INCOME_LOS3
OTHER COMPREHENSIVE INCOME (LOSS) (DETAILS 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ' | ' | ' |
Other realized investment gains | $84,926 | $151,703 | $137,300 |
OTTI losses | -9,362 | -24,234 | -15,861 |
Income before income taxes | 734,467 | 550,528 | 61,538 |
General and administrative expenses | -575,390 | -560,981 | -459,151 |
Tax benefit | -7,002 | -3,287 | -15,233 |
Net income | 727,465 | 547,241 | 46,305 |
Unrealized appreciation on Available for Sale Securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ' | ' | ' |
Other realized investment gains | 76,518 | 152,062 | 137,694 |
OTTI losses | -9,362 | -24,234 | -16,446 |
Income before income taxes | 67,156 | 127,828 | 121,248 |
Tax benefit | -5,605 | -11,550 | -1,700 |
Net income | 61,551 | 116,278 | 119,548 |
Supplemental Executive Retirement Plans (SERPs) [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ' | ' | ' |
General and administrative expenses | 0 | -1,718 | -92 |
Tax benefit | 0 | 0 | 0 |
Net income | $0 | ($1,718) | ($92) |
STATUTORY_FINANCIAL_INFORMATIO2
STATUTORY FINANCIAL INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statutory Financial Information [Line Items] | ' | ' | ' |
Statutory net income | $766,000,000 | $697,000,000 | $99,000,000 |
Bermuda [Member] | ' | ' | ' |
Statutory Financial Information [Line Items] | ' | ' | ' |
Required statutory capital and surplus | 1,996,794,000 | 2,048,329,000 | ' |
Actual statutory capital and surplus | 3,839,840,000 | 4,091,437,000 | ' |
Minimum solvency margin amount | 100,000,000 | ' | ' |
Minimum solvency margin percentage of net written premiums | 50.00% | ' | ' |
Minimum solvency margin percentage of net reserves | 15.00% | ' | ' |
Limit - prior year's total statutory capital surplus (Bermuda) | 25.00% | ' | ' |
Number of directors required to sign affadavit in order to pay dividend/distribution greater than 25% of prior year statutory capital and surplus | 2 | ' | ' |
Maximum dividend/distribution payable without regulatory approval | 1,000,000,000 | ' | ' |
Ireland [Member] | ' | ' | ' |
Statutory Financial Information [Line Items] | ' | ' | ' |
Required statutory capital and surplus | 315,258,000 | 279,078,000 | ' |
Actual statutory capital and surplus | 906,932,000 | 904,237,000 | ' |
Maximum dividend/distribution payable with regulatory approval | 141,000,000 | ' | ' |
United States [Member] | ' | ' | ' |
Statutory Financial Information [Line Items] | ' | ' | ' |
Required statutory capital and surplus | 385,651,000 | 358,674,000 | ' |
Actual statutory capital and surplus | 1,348,861,000 | 1,295,679,000 | ' |
Maximum dividend/distribution payable without regulatory approval | $135,000,000 | ' | ' |
Maximum dividend limit - percentage of total statutory capital and surplus | 10.00% | ' | ' |
UNAUDITED_CONDENSED_QUARTERLY_2
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (DETAILS) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Quarterly Financial Information Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net premiums earned | $941,911 | $945,242 | $945,873 | $874,039 | $856,049 | $862,447 | $850,603 | $846,362 | $3,707,065 | $3,415,463 | $3,314,961 |
Net investment income | 113,863 | 103,429 | 83,112 | 108,908 | 86,847 | 103,638 | 74,449 | 116,023 | 409,312 | 380,957 | 362,430 |
Net realized investment gains (losses) | 19,558 | -4,708 | 16,235 | 44,478 | 31,771 | 50,803 | 30,405 | 14,491 | 75,564 | 127,469 | 121,439 |
Underwriting income (loss) | 94,159 | 153,088 | 9,921 | 170,799 | -74,291 | 154,999 | 119,739 | 62,689 | ' | ' | ' |
Net income (loss) available to common shareholders | $171,524 | $137,121 | $72,447 | $302,816 | ($18,551) | $223,407 | $168,152 | $121,997 | $683,910 | $495,004 | $9,430 |
Basic earnings per common share | $1.55 | $1.23 | $0.63 | $2.59 | ($0.16) | $1.84 | $1.36 | $0.97 | $6.02 | $4.05 | $0.08 |
Diluted earnings per common share | $1.52 | $1.21 | $0.62 | $2.55 | ($0.16) | $1.82 | $1.35 | $0.96 | $5.93 | $4 | $0.07 |
SCHEDULE_II_CONDENSED_PARENT_C
SCHEDULE II - CONDENSED PARENT COMPANY BALANCE SHEETS (DETAILS) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets | ' | ' | ' | ' |
Cash and cash equivalents | $923,326 | $759,817 | $981,849 | $929,515 |
Other assets | 273,385 | 215,369 | ' | ' |
Total assets | 19,634,784 | 18,852,344 | ' | ' |
Liabilities | ' | ' | ' | ' |
Senior notes | 995,855 | 995,245 | ' | ' |
Other liabilities | 248,822 | 228,623 | ' | ' |
Total liabilities | 13,766,822 | 13,072,583 | ' | ' |
Shareholders' equity | ' | ' | ' | ' |
Preferred shares | 627,843 | 502,843 | ' | ' |
Common shares (2013: 174,134; 2012: 171,867 shares issued and 2013: 109,485; 2012: 117,920 shares outstanding) | 2,174 | 2,146 | ' | ' |
Additional paid-in capital | 2,240,125 | 2,179,034 | ' | ' |
Accumulated other comprehensive income | 117,825 | 362,622 | ' | ' |
Retained earnings | 5,062,706 | 4,497,789 | ' | ' |
Treasury shares, at cost (2013: 64,649; 2012: 53,947 shares) | -2,232,711 | -1,764,673 | ' | ' |
Total shareholders' equity | 5,817,962 | 5,779,761 | ' | ' |
Total liabilities and shareholders' equity | 19,634,784 | 18,852,344 | ' | ' |
AXIS Capital Holdings Limited [Member] | ' | ' | ' | ' |
Assets | ' | ' | ' | ' |
Investment in subsidiaries on equity basis | 6,581,368 | 6,571,607 | ' | ' |
Cash and cash equivalents | 4,414 | 2,841 | 2,363 | 8,496 |
Other assets | 3,179 | 2,706 | ' | ' |
Total assets | 6,588,961 | 6,577,154 | ' | ' |
Liabilities | ' | ' | ' | ' |
Intercompany payable | 204,877 | 243,252 | ' | ' |
Senior notes | 499,906 | 499,798 | ' | ' |
Dividends payable | 47,959 | 37,370 | ' | ' |
Other liabilities | 18,257 | 16,973 | ' | ' |
Total liabilities | 770,999 | 797,393 | ' | ' |
Shareholders' equity | ' | ' | ' | ' |
Preferred shares | 627,843 | 502,843 | ' | ' |
Common shares (2013: 174,134; 2012: 171,867 shares issued and 2013: 109,485; 2012: 117,920 shares outstanding) | 2,174 | 2,146 | ' | ' |
Additional paid-in capital | 2,240,125 | 2,179,034 | ' | ' |
Accumulated other comprehensive income | 117,825 | 362,622 | ' | ' |
Retained earnings | 5,062,706 | 4,497,789 | ' | ' |
Treasury shares, at cost (2013: 64,649; 2012: 53,947 shares) | -2,232,711 | -1,764,673 | ' | ' |
Total shareholders' equity | 5,817,962 | 5,779,761 | ' | ' |
Total liabilities and shareholders' equity | $6,588,961 | $6,577,154 | ' | ' |
SCHEDULE_II_CONDENSED_PARENT_C1
SCHEDULE II - CONDENSED PARENT COMPANY BALANCE SHEET PARENTHETICAL (DETAILS 2) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Condensed Financial Information of Parent Company [Line Items] | ' | ' |
Common shares, shares issued | 174,134 | 171,867 |
Common shares, shares outstanding | 109,485 | 117,920 |
Treasury shares, shares | 64,649 | 53,947 |
AXIS Capital Holdings Limited [Member] | ' | ' |
Condensed Financial Information of Parent Company [Line Items] | ' | ' |
Common shares, shares issued | 174,134 | 171,867 |
Common shares, shares outstanding | 109,485 | 117,920 |
Treasury shares, shares | 64,649 | 53,947 |
SCHEDULE_II_CONDENSED_PARENT_C2
SCHEDULE II - CONDENSED PARENT COMPANY BALANCE SHEET NOTES (DETAILS 3) (USD $) | 0 Months Ended | 1 Months Ended | 1 Months Ended | ||||||
In Millions, unless otherwise specified | Nov. 15, 2004 | Dec. 31, 2013 | Mar. 23, 2010 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Nov. 30, 2004 | Dec. 31, 2013 | Dec. 31, 2013 |
Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | AXIS Capital Holdings Limited [Member] | AXIS Capital Holdings Limited [Member] | AXIS Capital Holdings Limited [Member] | AXIS Capital Holdings Limited [Member] | AXIS Capital Holdings Limited [Member] | |
2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2010 AXIS Capital Finance LLC Senior Notes [Member] | 2010 AXIS Capital Finance LLC Senior Notes [Member] | Weather Related Derivative [Member] | Weather Related Derivative [Member] | Senior Notes [Member] | Senior Notes [Member] | Senior Notes [Member] | |
Full and Unconditional Guarantee of Debt [Member] | Full and Unconditional Guarantee of Debt [Member] | 2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2004 AXIS Capital Holdings Limited Senior Notes [Member] | 2010 AXIS Capital Finance LLC Senior Notes [Member] | |||||
Full and Unconditional Guarantee of Debt [Member] | |||||||||
Condensed Financial Information of Parent Company [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount | ' | $500 | ' | $500 | ' | ' | ' | $500 | ' |
Interest rate | ' | 5.75% | ' | 5.88% | ' | ' | ' | 5.75% | 5.88% |
Issue price (percentage of face amount) | 99.79% | ' | 99.62% | ' | ' | ' | 99.79% | ' | ' |
Net proceeds on issuance | 496 | ' | 495 | ' | ' | ' | 496 | ' | ' |
Percentage ownership in subsidiary | ' | ' | ' | 100.00% | ' | ' | ' | ' | 100.00% |
Principal amount guaranteed | ' | ' | ' | ' | ' | ' | ' | ' | 500 |
Guarantor obligations, current carrying value | ' | ' | ' | ' | $28 | $0 | ' | ' | ' |
SCHEDULE_II_CONDENSED_PARENT_C3
SCHEDULE II - CONDENSED PARENT COMPANY STATEMENTS OF OPERATIONS (DETAILS 4) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $4,196,365 | $3,926,565 | $3,801,226 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense and financing costs | ' | ' | ' | ' | ' | ' | ' | ' | 61,979 | 61,863 | 62,598 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 727,465 | 547,241 | 46,305 |
Preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | 40,474 | 38,228 | 36,875 |
Loss on repurchase of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 3,081 | 14,009 | 0 |
Net income available to common shareholders | 171,524 | 137,121 | 72,447 | 302,816 | -18,551 | 223,407 | 168,152 | 121,997 | 683,910 | 495,004 | 9,430 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 482,668 | 781,701 | -2,354 |
AXIS Capital Holdings Limited [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net investment income | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 25 | 1 |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 5 | 25 | 1 |
Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
General and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | 40,565 | 62,293 | 36,248 |
Interest expense and financing costs | ' | ' | ' | ' | ' | ' | ' | ' | 29,201 | 29,201 | 29,201 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 69,766 | 91,494 | 65,449 |
Loss before equity in net earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -69,761 | -91,469 | -65,448 |
Equity in net earnings of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 797,226 | 638,710 | 111,753 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 727,465 | 547,241 | 46,305 |
Preferred share dividends | ' | ' | ' | ' | ' | ' | ' | ' | 40,474 | 38,228 | 36,875 |
Loss on repurchase of preferred shares | ' | ' | ' | ' | ' | ' | ' | ' | 3,081 | 14,009 | 0 |
Net income available to common shareholders | ' | ' | ' | ' | ' | ' | ' | ' | 683,910 | 495,004 | 9,430 |
Comprehensive income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | $482,668 | $781,701 | ($2,354) |
SCHEDULE_II_CONDENSED_PARENT_C4
SCHEDULE II - CONDENSED PARENT COMPANY STATEMENTS OF CASH FLOWS (DETAILS 5) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $727,465 | $547,241 | $46,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Other items | 789 | -85,442 | 77,782 |
Net cash provided by operating activities | 1,096,968 | 1,120,617 | 1,190,142 |
Cash flows from investing activities: | ' | ' | ' |
Net cash from investing activities | -489,287 | -862,381 | -832,718 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from issuance of preferred shares | 218,449 | 393,544 | 0 |
Repurchase of preferred shares | -100,000 | -404,073 | 0 |
Repurchase of common shares | -472,263 | -317,687 | -65,885 |
Dividends paid - common shares | -118,426 | -120,487 | -206,455 |
Dividends paid - preferred shares | -39,193 | -38,228 | -36,875 |
Proceeds from issuance of common shares | 20,339 | 5,120 | 6,735 |
Net cash used in financing activities | -441,094 | -481,811 | -302,480 |
Increase (decrease) in cash and cash equivalents | 163,509 | -222,032 | 52,334 |
Cash and cash equivalents - beginning of period | 759,817 | 981,849 | 929,515 |
Cash and cash equivalents - end of period | 923,326 | 759,817 | 981,849 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Interest paid | 58,125 | 58,125 | 58,125 |
AXIS Capital Holdings Limited [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income | 727,465 | 547,241 | 46,305 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Equity in net earnings of subsidiaries | -797,226 | -638,710 | -111,753 |
Change in intercompany payable | -38,375 | -7,667 | -44,503 |
Dividends received from subsidiaries | 566,000 | 525,000 | 255,000 |
Other items | 34,803 | 56,425 | 21,298 |
Net cash provided by operating activities | 492,667 | 482,289 | 166,347 |
Cash flows from investing activities: | ' | ' | ' |
Capital repaid from subsidiary | 0 | 0 | 130,000 |
Net cash from investing activities | 0 | 0 | 130,000 |
Cash flows from financing activities: | ' | ' | ' |
Net proceeds from issuance of preferred shares | 218,449 | 393,544 | 0 |
Repurchase of preferred shares | -100,000 | -404,073 | 0 |
Repurchase of common shares | -472,263 | -317,687 | -65,885 |
Dividends paid - common shares | -118,426 | -120,487 | -206,455 |
Dividends paid - preferred shares | -39,193 | -38,228 | -36,875 |
Proceeds from issuance of common shares | 20,339 | 5,120 | 6,735 |
Net cash used in financing activities | -491,094 | -481,811 | -302,480 |
Increase (decrease) in cash and cash equivalents | 1,573 | 478 | -6,133 |
Cash and cash equivalents - beginning of period | 2,841 | 2,363 | 8,496 |
Cash and cash equivalents - end of period | 4,414 | 2,841 | 2,363 |
Supplemental disclosures of cash flow information | ' | ' | ' |
Interest paid | $28,750 | $28,750 | $28,750 |
SCHEDULE_III_SUPPLEMENTARY_INS1
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplementary Insurance Information [Line Items] | ' | ' | ' |
Deferred Acquisition Costs | $456,122 | $389,248 | $407,527 |
Reserve for Losses and Loss Expenses | 9,582,140 | 9,058,731 | 8,425,045 |
Unearned Premiums | 2,683,849 | 2,454,692 | 2,454,462 |
Net Premiums Earned | 3,707,065 | 3,415,463 | 3,314,961 |
Net Investment Income | 409,312 | 380,957 | 362,430 |
Losses and Loss Expenses | 2,134,195 | 2,096,028 | 2,675,052 |
Amortization of Deferred Acquisition Costs | 664,191 | 627,653 | 587,469 |
Other Operating Expenses | 575,390 | 560,981 | 459,151 |
Net Premiums Written | 3,928,200 | 3,337,456 | 3,419,434 |
Insurance [Member] | ' | ' | ' |
Supplementary Insurance Information [Line Items] | ' | ' | ' |
Deferred Acquisition Costs | 150,109 | 128,311 | 142,743 |
Reserve for Losses and Loss Expenses | 4,873,184 | 4,492,553 | 4,081,741 |
Unearned Premiums | 1,548,653 | 1,456,318 | 1,412,699 |
Net Premiums Earned | 1,722,762 | 1,558,058 | 1,429,687 |
Net Investment Income | 0 | 0 | 0 |
Losses and Loss Expenses | 1,050,402 | 953,564 | 919,319 |
Amortization of Deferred Acquisition Costs | 242,363 | 226,859 | 199,583 |
Other Operating Expenses | 347,684 | 314,834 | 278,147 |
Net Premiums Written | 1,813,538 | 1,522,245 | 1,466,134 |
Reinsurance [Member] | ' | ' | ' |
Supplementary Insurance Information [Line Items] | ' | ' | ' |
Deferred Acquisition Costs | 306,013 | 260,937 | 264,784 |
Reserve for Losses and Loss Expenses | 4,708,956 | 4,566,178 | 4,343,304 |
Unearned Premiums | 1,135,196 | 998,374 | 1,041,763 |
Net Premiums Earned | 1,984,303 | 1,857,405 | 1,885,274 |
Net Investment Income | 0 | 0 | 0 |
Losses and Loss Expenses | 1,083,793 | 1,142,464 | 1,755,733 |
Amortization of Deferred Acquisition Costs | 421,828 | 400,794 | 387,886 |
Other Operating Expenses | 137,450 | 116,487 | 103,915 |
Net Premiums Written | 2,114,662 | 1,815,211 | 1,953,300 |
Corporate [Member] | ' | ' | ' |
Supplementary Insurance Information [Line Items] | ' | ' | ' |
Deferred Acquisition Costs | 0 | 0 | 0 |
Reserve for Losses and Loss Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Net Premiums Earned | 0 | 0 | 0 |
Net Investment Income | 409,312 | 380,957 | 362,430 |
Losses and Loss Expenses | 0 | 0 | 0 |
Amortization of Deferred Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 90,256 | 129,660 | 77,089 |
Net Premiums Written | $0 | $0 | $0 |
SCHEDULE_IV_SUPPLEMENTARY_REIN1
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION (DETAILS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | ' | ' | ' |
Direct Gross Premium | $1,974,915 | $1,805,887 | $1,696,600 |
Ceded To Other Companies | 768,841 | 802,187 | 676,719 |
Assumed from Other Companies | 2,722,126 | 2,333,756 | 2,399,553 |
Net | $3,928,200 | $3,337,456 | $3,419,434 |
Percentage of Amount Assumed to Net | 69.30% | 69.90% | 70.20% |