DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Sep. 30, 2017 | Oct. 31, 2017 | |
DOCUMENT AND ENTITY INFORMATION [ABSTRACT] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | AXIS CAPITAL HOLDINGS LTD | |
Entity Central Index Key | 1,214,816 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 83,158,962 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, available for sale, at fair value (Amortized cost 2017: $11,043,394; 2016: $11,523,316) | $ 11,086,386 | $ 11,397,114 |
Equity securities, available for sale, at fair value (Cost 2017: $563,110; 2016: $597,366) | 659,751 | 638,744 |
Mortgage loans, held for investment, at amortized cost and fair value | 360,381 | 349,969 |
Other investments, at fair value | 830,253 | 830,219 |
Equity method investments | 108,597 | 116,000 |
Short-term investments, at amortized cost and fair value | 15,282 | 127,461 |
Total investments | 13,060,650 | 13,459,507 |
Cash and cash equivalents | 1,350,613 | 1,039,494 |
Restricted cash and cash equivalents | 280,514 | 202,013 |
Accrued interest receivable | 68,023 | 74,971 |
Insurance and reinsurance premium balances receivable | 2,968,096 | 2,313,512 |
Reinsurance recoverable on unpaid and paid losses | 2,360,821 | 2,334,922 |
Deferred acquisition costs | 562,774 | 438,636 |
Prepaid reinsurance premiums | 734,129 | 556,344 |
Receivable for investments sold | 9,357 | 14,123 |
Goodwill and intangible assets | 87,206 | 85,049 |
Other assets | 335,967 | 295,120 |
Total assets | 21,818,150 | 20,813,691 |
Liabilities | ||
Reserve for losses and loss expenses | 10,787,575 | 9,697,827 |
Unearned premiums | 3,521,063 | 2,969,498 |
Insurance and reinsurance balances payable | 670,292 | 493,183 |
Senior notes | 993,797 | 992,950 |
Payable for investments purchased | 122,065 | 62,550 |
Other liabilities | 268,659 | 325,313 |
Total liabilities | 16,363,451 | 14,541,321 |
Shareholders’ equity | ||
Preferred shares | 775,000 | 1,126,074 |
Common shares (2017: 176,580; 2016: 176,580 shares issued and 2017: 83,157; 2016: 86,441 shares outstanding) | 2,206 | 2,206 |
Additional paid-in capital | 2,291,516 | 2,299,857 |
Accumulated other comprehensive income (loss) | 141,613 | (121,841) |
Retained earnings | 6,051,659 | 6,527,627 |
Treasury shares, at cost (2017: 93,423; 2016: 90,139 shares) | (3,807,295) | (3,561,553) |
Total shareholders’ equity | 5,454,699 | 6,272,370 |
Total liabilities and shareholders’ equity | $ 21,818,150 | $ 20,813,691 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 11,043,394 | $ 11,523,316 |
Equity securities, available for sale, cost | $ 563,110 | $ 597,366 |
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,157 | 86,441 |
Treasury shares, shares (in shares) | 93,423 | 90,139 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Revenues | ||||
Net premiums earned | $ 1,017,131 | $ 934,415 | $ 2,937,265 | $ 2,783,746 |
Net investment income | 95,169 | 116,923 | 299,899 | 257,818 |
Other insurance related income (losses) | (3,197) | 5,944 | (4,420) | 4,850 |
Bargain purchase gain | 0 | 0 | 15,044 | 0 |
Net realized investment gains (losses): | ||||
Other-than-temporary impairment (OTTI) losses | (5,412) | (4,247) | (13,493) | (20,346) |
Other realized investment gains (losses) | 20,044 | 9,452 | (1,318) | (19,949) |
Total net realized investment gains (losses) | 14,632 | 5,205 | (14,811) | (40,295) |
Total revenues | 1,123,735 | 1,062,487 | 3,232,977 | 3,006,119 |
Expenses | ||||
Net losses and loss expenses | 1,235,367 | 532,328 | 2,447,640 | 1,663,584 |
Acquisition costs | 194,724 | 189,810 | 588,879 | 559,570 |
General and administrative expenses | 124,629 | 142,906 | 433,704 | 439,554 |
Foreign exchange losses (gains) | 32,510 | (13,795) | 90,093 | (69,781) |
Interest expense and financing costs | 12,835 | 12,839 | 38,377 | 38,586 |
Transaction related expenses | 5,970 | 0 | 5,970 | 0 |
Total expenses | 1,606,035 | 864,088 | 3,604,663 | 2,631,513 |
Income (loss) before income taxes and interest in income (loss) of equity method investments | (482,300) | 198,399 | (371,686) | 374,606 |
Income tax (expense) benefit | 25,877 | (9,352) | 38,547 | (7,712) |
Interest in loss of equity method investments | (661) | (2,434) | (8,402) | (2,434) |
Net income (loss) | (457,084) | 186,613 | (341,541) | 364,460 |
Preferred share dividends | 10,656 | 9,969 | 36,154 | 29,906 |
Net income (loss) available to common shareholders | $ (467,740) | $ 176,644 | $ (377,695) | $ 334,554 |
Net income (loss) per common share: | ||||
Basic net income (loss) (in usd per share) | $ (5.61) | $ 1.97 | $ (4.47) | $ 3.64 |
Diluted net income (loss) (in usd per share) | $ (5.61) | $ 1.96 | $ (4.47) | $ 3.61 |
Weighted average number of common shares outstanding - basic (in shares) | 83,305 | 89,621 | 84,479 | 91,852 |
Weighted average number of common shares outstanding - diluted (in shares) | 83,305 | 90,351 | 84,479 | 92,579 |
Cash dividends declared per common share (in usd per share) | $ 0.38 | $ 0.35 | $ 1.14 | $ 1.05 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (457,084) | $ 186,613 | $ (341,541) | $ 364,460 |
Other comprehensive income, net of tax: | ||||
Unrealized investment gains arising during the period | 62,505 | 36,336 | 206,461 | 238,656 |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (13,286) | (2,642) | 10,169 | 42,620 |
Unrealized investment gains arising during the period, net of reclassification adjustment | 49,219 | 33,694 | 216,630 | 281,276 |
Foreign currency translation adjustment | 8,088 | 1,722 | 46,824 | 5,694 |
Total other comprehensive income, net of tax | 57,307 | 35,416 | 263,454 | 286,970 |
Comprehensive income (loss) | $ (399,777) | $ 222,029 | $ (78,087) | $ 651,430 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Parent [Member] | Preferred shares [Member] | Common shares (par value) [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income [Member] | Unrealized gains (losses) on available for sale investments, net of tax [Member] | Cumulative foreign currency translation adjustments, net of tax [Member] | Retained earnings [Member] | Treasury shares, at cost [Member] |
Total shareholders’ equity at Dec. 31, 2015 | $ 627,843 | $ 2,202 | $ 2,241,388 | $ (188,465) | $ (149,585) | $ (38,880) | $ 6,194,353 | $ (3,010,439) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares repurchased | (2,843) | |||||||||
Shares issued | 4 | (4) | ||||||||
Cost of treasury shares reissued | (19,647) | 21,033 | ||||||||
Shares repurchased for treasury | 60,000 | (449,086) | ||||||||
Share-based compensation expense | 26,129 | |||||||||
Unrealized gains arising during the period, net of reclassification adjustment | $ 281,276 | 281,276 | ||||||||
Foreign currency translation adjustment | 5,694 | 5,694 | ||||||||
Net income (loss) | 364,460 | 364,460 | ||||||||
Preferred share dividends | (29,906) | |||||||||
Common share dividends | (98,334) | |||||||||
Total shareholders’ equity at Sep. 30, 2016 | $ 6,025,658 | 625,000 | 2,206 | 2,307,866 | 98,505 | 131,691 | (33,186) | 6,430,573 | (3,438,492) | |
Total shareholders’ equity at Dec. 31, 2016 | 6,272,370 | 1,126,074 | 2,206 | 2,299,857 | (121,841) | (82,323) | (39,518) | 6,527,627 | (3,561,553) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Shares repurchased | (351,074) | |||||||||
Shares issued | 0 | 0 | ||||||||
Cost of treasury shares reissued | (39,033) | 39,917 | ||||||||
Shares repurchased for treasury | 0 | (285,659) | ||||||||
Share-based compensation expense | 30,692 | |||||||||
Unrealized gains arising during the period, net of reclassification adjustment | 216,630 | 216,630 | ||||||||
Foreign currency translation adjustment | 46,824 | 46,824 | ||||||||
Net income (loss) | (341,541) | (341,541) | ||||||||
Preferred share dividends | (36,154) | |||||||||
Common share dividends | (98,273) | |||||||||
Total shareholders’ equity at Sep. 30, 2017 | $ 5,454,699 | $ 5,454,699 | $ 775,000 | $ 2,206 | $ 2,291,516 | $ 141,613 | $ 134,307 | $ 7,306 | $ 6,051,659 | $ (3,807,295) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (341,541) | $ 364,460 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Net realized investment losses | 14,811 | 40,295 |
Net realized and unrealized gains on other investments | (56,759) | (23,117) |
Amortization of fixed maturities | 32,528 | 51,660 |
Interest in loss of equity method investments | 8,402 | 2,434 |
Other amortization and depreciation | 19,279 | 17,370 |
Share-based compensation expense, net of cash payments | 1,516 | 28,580 |
Non-cash foreign exchange losses | 24,149 | 0 |
Bargain purchase gain | (15,044) | 0 |
Changes in: | ||
Accrued interest receivable | 8,730 | 3,286 |
Reinsurance recoverable balances | 60,522 | (163,212) |
Deferred acquisition costs | (123,961) | (73,759) |
Prepaid reinsurance premiums | (178,464) | (184,648) |
Reserve for loss and loss expenses | 918,511 | 216,828 |
Unearned premiums | 540,108 | 682,686 |
Insurance and reinsurance balances, net | (465,436) | (623,170) |
Other items | (135,266) | (74,383) |
Net cash provided by operating activities | 312,085 | 265,310 |
Cash flows from investing activities: | ||
Fixed maturities | (6,250,608) | (6,624,573) |
Equity securities | (108,804) | (295,827) |
Mortgage loans | (20,812) | (131,087) |
Other investments | (135,526) | (177,500) |
Equity method investments | (1,000) | (103,548) |
Short-term investments | (20,792) | (81,479) |
Proceeds from the sale of: | ||
Fixed maturities | 5,354,398 | 6,067,663 |
Equity securities | 232,755 | 296,182 |
Other investments | 203,896 | 170,111 |
Short-term investments | 19,284 | 67,408 |
Proceeds from redemption of fixed maturities | 1,546,998 | 977,852 |
Proceeds from redemption of short-term investments | 116,261 | 8,185 |
Proceeds from the repayment of mortgage loans | 10,702 | 4,808 |
Purchase of other assets | (25,842) | (19,055) |
Change in restricted cash and cash equivalents | (78,501) | (42,445) |
Purchase of subsidiary, net | (73,067) | 0 |
Net cash provided by investing activities | 769,342 | 116,695 |
Cash flows from financing activities: | ||
Repurchase of common shares | (290,496) | (389,086) |
Dividends paid - common shares | (102,868) | (100,670) |
Repurchase of preferred shares | (351,074) | (2,843) |
Dividends paid - preferred shares | (42,188) | (29,940) |
Proceeds from issuance of common shares | 0 | 8 |
Net cash used in financing activities | (786,626) | (522,531) |
Effect of exchange rate changes on foreign currency cash and cash equivalents | 16,318 | 593 |
Increase (decrease) in cash and cash equivalents | 311,119 | (139,933) |
Cash and cash equivalents - beginning of period | 1,039,494 | 988,133 |
Cash and cash equivalents - end of period | $ 1,350,613 | $ 848,200 |
BASIS OF PRESENTATION AND ACCOU
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND ACCOUNTING POLICIES | Basis of Presentation These interim consolidated financial statements include the accounts of AXIS Capital Holdings Limited (“AXIS Capital”) and its subsidiaries (herein referred to as “we,” “us,” “our,” or the “Company”). The consolidated balance sheet at September 30, 2017 and the consolidated statements of operations, comprehensive income, shareholders' equity and cash flows for the periods ended September 30, 2017 and 2016 have not been audited. The balance sheet at December 31, 2016 is derived from our audited financial statements. These financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial information and with the Securities and Exchange Commission's (“SEC”) instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of our financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. The following information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 . Tabular dollar and share amounts are in thousands, except per share amounts. All amounts are reported in U.S. dollars. Significant Accounting Policies There were no notable changes in our significant accounting policies subsequent to our Annual Report on Form 10-K for the year ended December 31, 2016 . New Accounting Standards Adopted in 2017 Stock Compensation - Improvements to Employee Share-Based Payment Accounting Effective January 1, 2017, the Company adopted Accounting Standards Update ("ASU" ) ASU 2016-09, "Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting " which simplifies several aspects of the accounting for share-based payments to employees including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance requires all excess tax benefits and tax deficiencies to be recognized in the income statement with the tax effects of exercised or vested awards to be treated as discrete items in the reporting period in which they occur. Excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows. In addition, companies will be required to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The guidance allows withholding up to the maximum statutory tax rates in the applicable jurisdictions to cover income taxes on share-based compensation awards without requiring liability classification. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The adoption of this guidance did not have a material impact on our results of operations, financial condition and liquidity. Issued Accounting Standards Not Yet Adopted Revenue From Contracts With Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". This guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts are not in scope of the new guidance). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB delayed the effective date by one year through the issuance of ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Dat e". This guidance is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2016. Accounting for insurance contracts is outside the scope of ASU 2014-09. The Company generates an insignificant amount of fee income, primarily from strategic capital partners, which is reported in other insurance related income (losses) in the Consolidated Statements of Operations and is subject to this accounting standard update. The Company's current accounting policy to recognize fee income in the period when related services are performed, principally aligns with this update. As a result, the Company does not expect the adoption of this guidance to have a material impact on our results of operations, financial condition and liquidity. Recently Issued Accounting Standards Not Yet Adopted Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities" which shortens the amortization period for certain purchased callable debt securities held at a premium. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our results of operations, financial condition and liquidity. Stock Compensation - Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting " to provide clarity and reduce diversity in practice of applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance states that an entity should account for the effects of a modification unless all the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our results of operations, financial condition and liquidity. |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 9 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | On April 1, 2017 ("the closing date" or the "acquisition date"), the Company acquired a 100% ownership interest in Compagnie Belge d'Assurances Aviation NV/SA (“Aviabel”). Aviabel is an insurer operating under Belgian law that has its head office in Belgium, a branch office in the Netherlands and a re-insurance company, Aviabel RE S.A. (“Aviabel RE”), in Luxembourg. The Company acquired Aviabel to increase its scale and relevance in the global aviation market. The purchase price was allocated to the acquired assets and liabilities of Aviabel based on estimated fair values on the closing date. Consequently, the Company recognized investments with a fair value of $182 million , reserves for losses and loss expenses with a fair value of $79 million , and a bargain purchase gain of $15 million . The bargain purchase gain arose as the fair values of the net identifiable assets acquired exceeded the fair value of the consideration transferred at the acquisition date. The allocation of the purchase price was based on information included in unaudited financial statements prepared by Aviabel's management at March 31, 2017. The allocation is subject to change if additional information becomes available within the measurement period, which cannot exceed 12 months from the acquisition date. The fair values of the acquired assets and liabilities may be subject to adjustments, which may impact the amounts recorded for the acquired assets and liabilities, as well as the bargain purchase gain. The underwriting results of Aviabel are included in the underwriting results of the Company's insurance segment from the acquisition date. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | Our underwriting operations are organized around our global underwriting platforms, AXIS Insurance and AXIS Re, 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 marine and other. The reinsurance segment also writes derivative based risk management products designed to address weather and commodity price risks. The following tables summarize the underwriting results of our reportable segments, as well as the carrying values of allocated goodwill and intangible assets: 2017 2016 Three months ended and at September 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 744,366 $ 441,208 $ 1,185,574 $ 675,430 $ 284,532 $ 959,962 Net premiums written 500,022 332,721 832,743 433,131 162,300 595,431 Net premiums earned 496,004 521,127 1,017,131 444,691 489,724 934,415 Other insurance related income (losses) 526 (3,723 ) (3,197 ) 39 5,905 5,944 Net losses and loss expenses (628,865 ) (606,502 ) (1,235,367 ) (273,226 ) (259,102 ) (532,328 ) Acquisition costs (74,231 ) (120,493 ) (194,724 ) (61,755 ) (128,055 ) (189,810 ) General and administrative expenses (75,038 ) (21,658 ) (96,696 ) (84,588 ) (29,635 ) (114,223 ) Underwriting income (loss) $ (281,604 ) $ (231,249 ) (512,853 ) $ 25,161 $ 78,837 103,998 Corporate expenses (27,933 ) (28,683 ) Net investment income 95,169 116,923 Net realized investment gains 14,632 5,205 Foreign exchange (losses) gains (32,510 ) 13,795 Interest expense and financing costs (12,835 ) (12,839 ) Transaction related expenses (5,970 ) — Income (loss) before income taxes and interest in income (loss) of equity method investments $ (482,300 ) $ 198,399 Net loss and loss expense ratio 126.8 % 116.4 % 121.5 % 61.4 % 52.9 % 57.0 % Acquisition cost ratio 15.0 % 23.1 % 19.1 % 13.9 % 26.1 % 20.3 % General and administrative expense ratio 15.1 % 4.2 % 12.3 % 19.1 % 6.1 % 15.3 % Combined ratio 156.9 % 143.7 % 152.9 % 94.4 % 85.1 % 92.6 % Goodwill and intangible assets $ 87,206 $ — $ 87,206 $ 85,501 $ — $ 85,501 2017 2016 Nine months ended and at September 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 2,234,395 $ 2,225,377 $ 4,459,772 $ 2,112,796 $ 2,126,762 $ 4,239,558 Net premiums written 1,533,029 1,764,689 3,297,718 1,433,058 1,855,529 3,288,587 Net premiums earned 1,448,270 1,488,995 2,937,265 1,322,649 1,461,097 2,783,746 Other insurance related income (losses) 1,077 (5,497 ) (4,420 ) (57 ) 4,907 4,850 Net losses and loss expenses (1,241,495 ) (1,206,145 ) (2,447,640 ) (853,771 ) (809,813 ) (1,663,584 ) Acquisition costs (223,665 ) (365,214 ) (588,879 ) (184,982 ) (374,588 ) (559,570 ) General and administrative expenses (253,308 ) (82,474 ) (335,782 ) (252,652 ) (99,980 ) (352,632 ) Underwriting income (loss) $ (269,121 ) $ (170,335 ) (439,456 ) $ 31,187 $ 181,623 212,810 Corporate expenses (97,922 ) (86,922 ) Net investment income 299,899 257,818 Net realized investment losses (14,811 ) (40,295 ) Foreign exchange (losses) gains (90,093 ) 69,781 Interest expense and financing costs (38,377 ) (38,586 ) Bargain purchase gain 15,044 — Transaction related expenses (5,970 ) — Income (loss) before income taxes and interest in income (loss) of equity method investments $ (371,686 ) $ 374,606 Net loss and loss expense ratio 85.7 % 81.0 % 83.3 % 64.6 % 55.4 % 59.8 % Acquisition cost ratio 15.4 % 24.5 % 20.0 % 14.0 % 25.6 % 20.1 % General and administrative expense ratio 17.6 % 5.6 % 14.8 % 19.0 % 6.9 % 15.8 % Combined ratio 118.7 % 111.1 % 118.1 % 97.6 % 87.9 % 95.7 % Goodwill and intangible assets $ 87,206 $ — $ 87,206 $ 85,501 $ — $ 85,501 |
INVESTMENTS
INVESTMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | a) Fixed Maturities and Equities The amortized cost or cost and fair values of our fixed maturities and equities were as follows: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit OTTI in AOCI (5) At September 30, 2017 Fixed maturities U.S. government and agency $ 1,556,963 $ 2,729 $ (12,374 ) $ 1,547,318 $ — Non-U.S. government 568,223 13,961 (8,544 ) 573,640 — Corporate debt 4,460,337 65,230 (21,600 ) 4,503,967 — Agency RMBS (1) 2,313,096 12,218 (18,492 ) 2,306,822 — CMBS (2) 665,520 5,954 (1,738 ) 669,736 — Non-Agency RMBS 42,653 1,968 (804 ) 43,817 (867 ) ABS (3) 1,285,080 4,572 (782 ) 1,288,870 — Municipals (4) 151,522 1,379 (685 ) 152,216 — Total fixed maturities $ 11,043,394 $ 108,011 $ (65,019 ) $ 11,086,386 $ (867 ) Equity securities Common stocks $ 13,980 $ 1,415 $ (569 ) $ 14,826 Exchange-traded funds 365,412 88,782 — 454,194 Bond mutual funds 183,718 8,686 (1,673 ) 190,731 Total equity securities $ 563,110 $ 98,883 $ (2,242 ) $ 659,751 At December 31, 2016 Fixed maturities U.S. government and agency $ 1,681,425 $ 1,648 $ (27,004 ) $ 1,656,069 $ — Non-U.S. government 613,282 2,206 (49,654 ) 565,834 — Corporate debt 4,633,834 42,049 (75,140 ) 4,600,743 — Agency RMBS (1) 2,487,837 13,275 (35,977 ) 2,465,135 — CMBS (2) 664,368 5,433 (3,564 ) 666,237 — Non-Agency RMBS 57,316 1,628 (2,023 ) 56,921 (823 ) ABS (3) 1,221,813 3,244 (2,843 ) 1,222,214 — Municipals (4) 163,441 1,510 (990 ) 163,961 — Total fixed maturities $ 11,523,316 $ 70,993 $ (197,195 ) $ 11,397,114 $ (823 ) Equity securities Common stocks $ 379 $ 41 $ (342 ) $ 78 Exchange-traded funds 463,936 53,405 (2,634 ) 514,707 Bond mutual funds 133,051 — (9,092 ) 123,959 Total equity securities $ 597,366 $ 53,446 $ (12,068 ) $ 638,744 (1) Residential mortgage-backed securities (RMBS) originated by U.S. government-sponsored 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, maturities and redemptions. 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 Variable Interest Entities ("VIEs"). These structured securities include RMBS, CMBS and ABS and are included in the above table. Additionally, within our other investments portfolio, we invest in limited partnerships (hedge funds, direct lending funds, private equity funds and real estate funds) and CLO equity tranched securities, which are variable interests issued by VIEs (see Note 4(c)). 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 therefore we are not the primary beneficiary of 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 Cost Fair Value % of Total Fair Value At September 30, 2017 Maturity Due in one year or less $ 434,283 $ 432,662 4.0 % Due after one year through five years 3,834,452 3,850,174 34.7 % Due after five years through ten years 2,258,136 2,276,190 20.5 % Due after ten years 210,174 218,115 2.0 % 6,737,045 6,777,141 61.2 % Agency RMBS 2,313,096 2,306,822 20.8 % CMBS 665,520 669,736 6.0 % Non-Agency RMBS 42,653 43,817 0.4 % ABS 1,285,080 1,288,870 11.6 % Total $ 11,043,394 $ 11,086,386 100.0 % At December 31, 2016 Maturity Due in one year or less $ 313,287 $ 305,972 2.8 % Due after one year through five years 3,906,190 3,850,149 33.8 % Due after five years through ten years 2,546,299 2,510,975 22.0 % Due after ten years 326,206 319,511 2.8 % 7,091,982 6,986,607 61.4 % Agency RMBS 2,487,837 2,465,135 21.6 % CMBS 664,368 666,237 5.8 % Non-Agency RMBS 57,316 56,921 0.5 % ABS 1,221,813 1,222,214 10.7 % Total $ 11,523,316 $ 11,397,114 100.0 % 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At September 30, 2017 Fixed maturities U.S. government and agency $ 161,425 $ (5,641 ) $ 1,207,943 $ (6,733 ) $ 1,369,368 $ (12,374 ) Non-U.S. government 61,872 (7,354 ) 163,477 (1,190 ) 225,349 (8,544 ) Corporate debt 412,832 (12,553 ) 990,308 (9,047 ) 1,403,140 (21,600 ) Agency RMBS 350,010 (8,130 ) 1,126,956 (10,362 ) 1,476,966 (18,492 ) CMBS 13,919 (238 ) 221,941 (1,500 ) 235,860 (1,738 ) Non-Agency RMBS 8,342 (803 ) 222 (1 ) 8,564 (804 ) ABS 16,816 (409 ) 323,886 (373 ) 340,702 (782 ) Municipals 23,339 (474 ) 40,913 (211 ) 64,252 (685 ) Total fixed maturities $ 1,048,555 $ (35,602 ) $ 4,075,646 $ (29,417 ) $ 5,124,201 $ (65,019 ) Equity securities Common stocks $ 33 $ (135 ) $ 2,939 $ (434 ) $ 2,972 $ (569 ) Exchange-traded funds — — — — — — Bond mutual funds — — 24,145 (1,673 ) 24,145 (1,673 ) Total equity securities $ 33 $ (135 ) $ 27,084 $ (2,107 ) $ 27,117 $ (2,242 ) At December 31, 2016 Fixed maturities U.S. government and agency $ 54,051 $ (2,729 ) $ 1,340,719 $ (24,275 ) $ 1,394,770 $ (27,004 ) Non-U.S. government 149,360 (38,683 ) 283,796 (10,971 ) 433,156 (49,654 ) Corporate debt 230,218 (30,652 ) 1,948,976 (44,488 ) 2,179,194 (75,140 ) Agency RMBS 76,694 (1,101 ) 1,724,170 (34,876 ) 1,800,864 (35,977 ) CMBS 84,640 (749 ) 193,499 (2,815 ) 278,139 (3,564 ) Non-Agency RMBS 13,642 (1,752 ) 7,194 (271 ) 20,836 (2,023 ) ABS 362,110 (1,950 ) 266,763 (893 ) 628,873 (2,843 ) Municipals 774 (29 ) 68,598 (961 ) 69,372 (990 ) Total fixed maturities $ 971,489 $ (77,645 ) $ 5,833,715 $ (119,550 ) $ 6,805,204 $ (197,195 ) Equity securities Common stocks $ — $ — $ 37 $ (342 ) $ 37 $ (342 ) Exchange-traded funds 4,959 (461 ) 87,760 (2,173 ) 92,719 (2,634 ) Bond mutual funds — — 123,954 (9,092 ) 123,954 (9,092 ) Total equity securities $ 4,959 $ (461 ) $ 211,751 $ (11,607 ) $ 216,710 $ (12,068 ) Fixed Maturities At September 30, 2017 , 1,625 fixed maturities ( 2016 : 1,881 ) were in an unrealized loss position of $65 million ( 2016 : $197 million ), of which $6 million ( 2016 : $15 million ) was related to securities below investment grade or not rated. At September 30, 2017 , 403 ( 2016 : 330 ) securities had been in a continuous unrealized loss position for 12 months or greater and had a fair value of $1,049 million ( 2016 : $971 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 impaired at September 30, 2017 , and were expected to recover in value as the securities approach maturity. Further, at September 30, 2017 , 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 September 30, 2017 , 31 securities ( 2016 : 23 ) were in an unrealized loss position of $2 million ( 2016 : $12 million ). At September 30, 2017 , 2 securities ( 2016 : 3 ) was in a continuous unrealized loss position for 12 months or greater. 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 September 30, 2017 . b) Mortgage Loans The following table provides a breakdown of our mortgage loans held-for-investment: September 30, 2017 December 31, 2016 Carrying Value % of Total Carrying Value % of Total Mortgage Loans held-for-investment: Commercial $ 360,381 100 % $ 349,969 100 % 360,381 100 % 349,969 100 % Valuation allowances — — % — — % Total Mortgage Loans held-for-investment $ 360,381 100 % $ 349,969 100 % For commercial mortgage loans, the primary credit quality indicator is the debt service coverage ratio (which compares a property’s net operating income to amounts needed to service the principal and interest due under the loan, generally, the lower the debt service coverage ratio, the higher the risk of experiencing a credit loss) and the loan-to-value ratio (loan-to-value ratios compare the unpaid principal balance of the loan to the estimated fair value of the underlying collateral, generally, the higher the loan-to-value ratio, the higher the risk of experiencing a credit loss). The debt service coverage ratio and loan-to-value ratio, as well as the values utilized in calculating these ratios, are updated annually, on a rolling basis. We have a high quality mortgage portfolio with weighted average debt service coverage ratios in excess of 3.0 x and weighted average loan-to-value ratios of less than 60% . There are no credit losses associated with the commercial mortgage loans that we hold at September 30, 2017 . There are no past due amounts at September 30, 2017 . c) Other Investments The following table provides a breakdown of our investments in hedge funds, direct lending funds, private equity funds, real estate funds, CLO-Equities and other privately held investments, together with additional information relating to the liquidity of each category: Fair Value Redemption Frequency (if currently eligible) Redemption Notice Period At September 30, 2017 Long/short equity funds $ 64,067 8 % Annually 60 days Multi-strategy funds 286,452 35 % Quarterly, Semi-annually 60-95 days Event-driven funds 48,578 6 % Annually 45 days Direct lending funds 232,389 28 % n/a n/a Private equity funds 71,896 9 % n/a n/a Real estate funds 46,691 6 % n/a n/a CLO-Equities 36,782 3 % n/a n/a Other privately held investments 43,398 5 % n/a n/a Total other investments $ 830,253 100 % At December 31, 2016 Long/short equity funds $ 118,619 14 % Semi-annually, Annually 45-60 days Multi-strategy funds 285,992 34 % Quarterly, Semi-annually 60-95 days Event-driven funds 93,539 11 % Annually 45 days Direct lending funds 134,650 16 % n/a n/a Private equity funds 81,223 10 % n/a n/a Real estate funds 13,354 2 % n/a n/a CLO-Equities 60,700 8 % n/a n/a Other privately held investments 42,142 5 % n/a n/a Total other investments $ 830,219 100 % n/a - not applicable The investment strategies for the above funds are as follows: • Long/short equity funds : Seek to achieve attractive returns primarily 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. • Direct lending funds : Seek to achieve attractive risk-adjusted returns, including current income generation, by investing in funds which provide financing directly to borrowers. • Private equity funds : Seek to achieve attractive risk-adjusted returns by investing in private transactions over the course of several years. • Real estate funds : Seek to achieve attractive risk-adjusted returns by making and managing investments in real estate and real estate securities and businesses. 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 2017 and 2016 , neither of these restrictions impacted our redemption requests. At September 30, 2017 , $64 million ( 2016 : $60 million ), representing 16% ( 2016 : 12% ) of our total hedge funds, relate to holdings where we are still within the lockup period. The expiration of these lockup periods range from December 2017 to March 2019. At September 30, 2017 , we had $142 million ( 2016 : $176 million ) of unfunded commitments as a limited partner 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 3 years. At September 30, 2017 , we had $16 million ( 2016 : $12 million ) of unfunded commitments as a limited partner in multi-strategy hedge 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 funds' investment term. These funds have investment terms ranging from 2 years to the dissolution of the underlying fund. At September 30, 2017 , we had $120 million ( 2016 : $140 million ) of unfunded commitments as a limited partner in funds which invest in real estate and real estate securities and businesses. These funds have investment terms ranging from 7 years to the dissolution of the underlying fund. At September 30, 2017 , we had $21 million (2016: $24 million ) of unfunded commitments as a limited partner in a private equity fund. The life of the fund is subject to the dissolution of the underlying funds. We expect the overall holding period to be over 10 years. During 2015, we made a $50 million commitment as a limited partner of a bank revolver opportunity fund. The fund is subject to an investment term of 7 years and the General Partners have the option to extend the term by up to 2 years. At September 30, 2017 , this commitment remains unfunded. It is not anticipated that the full amount of this fund will be drawn. d) Equity Method Investments During 2016, we paid $108 million including direct transaction costs to acquire 19% of the common equity of Harrington Reinsurance Holdings Limited ("Harrington"), the parent company of Harrington Re Ltd. ("Harrington Re"), an independent reinsurance company jointly sponsored by AXIS Capital and The Blackstone Group L.P. ("Blackstone"). Through long-term service agreements, AXIS Capital will serve as Harrington Re's reinsurance underwriting manager and Blackstone will serve as exclusive investment management service provider. As an investor, we expect to benefit from underwriting profit generated by Harrington Re and the income and capital appreciation Blackstone seeks to deliver through its investment management services. In addition, we have entered into an arrangement with Blackstone under which underwriting and investment related fees will be shared equally. Harrington is not a variable interest entity. Given that we exercise significant influence over the operating and financial policies of this investee we account for our ownership in Harrington under the equity method of accounting. The Company's proportionate share of the underlying equity in net assets resulted in a basis difference of $5 million which represents initial transactions costs. During the nine months ended September 30, 2017 , we recorded an impairment charge of $9 million , related to a U.S. based insurance company, which reduced the carrying value of the investment to $ nil . This charge is included in interest in income (loss) of equity method investments in the Consolidated Statement of Operations. e) Net Investment Income Net investment income was derived from the following sources: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fixed maturities $ 74,978 $ 75,827 $ 230,603 $ 229,423 Other investments 17,373 38,248 59,973 25,770 Equity securities 3,223 4,633 11,048 12,843 Mortgage loans 2,895 2,191 7,970 5,683 Cash and cash equivalents 3,111 3,768 9,640 7,071 Short-term investments 698 337 1,797 708 Gross investment income 102,278 125,004 321,031 281,498 Investment expenses (7,109 ) (8,081 ) (21,132 ) (23,680 ) Net investment income $ 95,169 $ 116,923 $ 299,899 $ 257,818 f) Net Realized Investment Gains (Losses) The following table provides an analysis of net realized investment gains (losses): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Gross realized gains Fixed maturities and short-term investments $ 19,297 $ 26,211 $ 57,524 $ 67,833 Equities 17,980 5,570 33,794 18,804 Gross realized gains 37,277 31,781 91,318 86,637 Gross realized losses Fixed maturities and short-term investments (15,893 ) (21,908 ) (83,183 ) (90,702 ) Equities (45 ) (576 ) (258 ) (15,923 ) Gross realized losses (15,938 ) (22,484 ) (83,441 ) (106,625 ) Net OTTI recognized in earnings (5,412 ) (4,247 ) (13,493 ) (20,346 ) Change in fair value of investment derivatives (1) (1,295 ) 155 (9,195 ) 39 Net realized investment gains (losses) $ 14,632 $ 5,205 $ (14,811 ) $ (40,295 ) (1) Refer to Note 6 ' Derivative Instruments' The following table summarizes the OTTI recognized in earnings by asset class: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fixed maturities: Non-U.S. government $ 3,905 $ 2,456 $ 8,187 $ 2,953 Corporate debt 1,507 1,791 5,306 14,833 5,412 4,247 13,493 17,786 Equity Securities Exchange-traded funds — — — 2,560 — — — 2,560 Total OTTI recognized in earnings $ 5,412 $ 4,247 $ 13,493 $ 20,346 The following table provides a roll forward of the credit losses, before income taxes, for which a portion of the OTTI was recognized in AOCI: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 1,481 $ 1,513 $ 1,493 $ 1,506 Credit impairments recognized on securities not previously impaired — — — — Additional credit impairments recognized on securities previously impaired 2 — 2 7 Change in timing of future cash flows on securities previously impaired — — — — Intent to sell of securities previously impaired — — — — Securities sold/redeemed/matured — (33 ) (12 ) (33 ) Balance at end of period $ 1,483 $ 1,480 $ 1,483 $ 1,480 g) Reverse Repurchase Agreements At September 30, 2017 , we held $34 million ( December 31, 2016 : $ 176 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 in the 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. We monitor the estimated fair value of the securities loaned and borrowed on a daily basis with additional collateral obtained as necessary throughout the duration of the transaction. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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. U.S. GAAP prescribes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to quoted prices in active markets and the lowest priority to unobservable data. The level in the hierarchy within which a given fair value measurement falls is determined based on the lowest level input that is significant to the measurement. 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. Valuation Techniques The valuation techniques, including significant inputs and assumptions generally used to determine the fair values of our financial instruments as well as the classification of the fair values of our financial instruments in the fair value hierarchy are described in detail below. 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 valuation techniques including significant inputs generally used to determine the fair values of our fixed maturities by asset class as well as the classifications of the fair values of these securities in the fair value hierarchy are described in detail below. 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 U.S. Treasury securities are based on unadjusted market prices in active markets, these securities are classified as Level 1. The fair values of U.S. government agency securities are determined using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of U.S. government agency securities are classified as Level 2. Non-U.S. government Non-U.S. government securities include bonds issued by non-U.S. governments and their agencies along with supranational organizations (collectively also known as sovereign debt securities). The fair values of these securities are based on prices obtained from international indices or valuation models that include inputs such as 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 used to price these securities are observable market inputs, the fair values of non-U.S. government securities are classified as 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 the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of corporate debt securities are classified as 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, the fair values of these securities are classified as Level 3. Agency RMBS Agency RMBS consist of bonds issued by the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and the Government National Mortgage Association. The fair values of these securities are priced using a mortgage pool specific model which uses daily inputs from the active to be announced market and the spread associated with each mortgage pool based on vintage. As the significant inputs used to price these securities are observable market inputs, the fair values of Agency RMBS are classified as Level 2. CMBS CMBS include mostly investment-grade bonds originated by non-agencies. The fair values of these securities are determined using a pricing model which uses dealer quotes and other available trade information along with security level characteristics to determine deal specific spreads. As the significant inputs used to price these securities are observable market inputs, the fair values of CMBS securities are classified as 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. I n this event, the fair values of these securities are classified as Level 3. Non-Agency RMBS Non-Agency RMBS include mostly investment-grade bonds originated by non-agencies. The fair values of these securities are determined using an option adjusted spread model or other relevant models, which use inputs including available trade information or broker quotes, prepayment and default projections based on historical statistics of the underlying collateral and current market data. As the significant inputs used to price these securities are observable market inputs, the fair values of Non-Agency RMBS are classified as Level 2. 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. The fair values of these securities are determined using a model which uses prepayment speeds and spreads sourced primarily from the new issue market. As the significant inputs used to price these securities are observable market inputs, the fair values of ABS are classified as Level 2. Where pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers t o estimate fair value. This is generally the case when there is a low volume of trading activity and current transactions are not orderly. I n this event, the fair values of these securities are classified as Level 3. Municipals Municipals comprise revenue and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair values of these securities are determined using spreads obtained from the new issue market, trade prices and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, the fair values of municipals are classified as Level 2. Equity Securities Equity securities include common stocks, exchange-traded funds and bond mutual funds. As the fair values of common stocks and exchange-traded funds are based on unadjusted quoted market prices in active markets, these securities are classified as Level 1. As bond mutual funds have daily liquidity with redemption based on the Net Asset Values per share ("NAV") of the funds, the fair values of these securities are classified as Level 2. Other Investments Other privately held securities include convertible preferred shares, convertible notes and notes payable. These securities are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these securities are determined using an internally developed discounted cash flow model. As the significant inputs used to price these securities are unobservable, the fair value of these securities are classified as Level 3. Indirect investments in CLO-Equities are classified as Level 3 as the fair values of these securities are estimated using an income approach valuation technique (discounted cash flow model) due to the lack of observable and relevant trades in secondary markets. Direct investments in CLO-Equities are also classified as Level 3 as these securities are estimated using a liquidation valuation. 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 as 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 Derivative Instruments include foreign currency forward contracts, exchange traded interest rate swaps and commodity contracts that are customized to our economic hedging strategies and trade in the over-the-counter derivative market. The fair values of these derivatives are determined using the market approach valuation technique based on significant observable market inputs from third party pricing vendors, non-binding broker-dealer quotes and/or recent trading activity. Accordingly, the fair values of these derivatives are classified as Level 2. Weather derivatives relate to non-exchange traded derivative-based risk management products addressing weather risks. The fair values of these derivatives are determined using observable market inputs and unobservable inputs in combination with industry or internally developed valuation and forecasting techniques. Accordingly, the fair values of these derivatives are classified as Level 3. Other underwriting-related derivatives include insurance and reinsurance contracts that are required to be accounted for as derivatives. These derivative contracts are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models. As the significant inputs used to price these derivatives are unobservable, the fair value of these contracts are classified as Level 3. Insurance-linked Securities Insurance-linked securities comprise an investment in a catastrophe bond. As pricing is unavailable from pricing services, we obtain non-binding quotes from broker-dealers to estimate the fair values of these securities. Pricing is generally unavailable when there is a low volume of trading activity and current transactions are not orderly. Accordingly, the fair values of these securities are classified as Level 3. Cash Settled Awards Cash settled awards comprise restricted stock units that form part of our compensation program. Although the fair values of these awards are determined using observable quoted market prices in active markets, the restricted stock units are not actively traded. Accordingly, the fair values of these liabilities are classified as Level 2. The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At September 30, 2017 Assets Fixed maturities U.S. government and agency $ 1,495,423 $ 51,895 $ — $ — $ 1,547,318 Non-U.S. government — 573,640 — — 573,640 Corporate debt — 4,442,951 61,016 — 4,503,967 Agency RMBS — 2,306,822 — — 2,306,822 CMBS — 669,736 — — 669,736 Non-Agency RMBS — 43,817 — — 43,817 ABS — 1,264,855 24,015 — 1,288,870 Municipals — 152,216 — — 152,216 1,495,423 9,505,932 85,031 — 11,086,386 Equity securities Common stocks 14,826 — — — 14,826 Exchange-traded funds 454,194 — — — 454,194 Bond mutual funds — 190,731 — — 190,731 469,020 190,731 — — 659,751 Other investments Hedge funds — — — 399,097 399,097 Direct lending funds — — — 232,389 232,389 Private equity funds — — — 71,896 71,896 Real estate funds — — — 46,691 46,691 Other privately held investments — — 43,398 — 43,398 CLO-Equities — — 36,782 — 36,782 — — 80,180 750,073 830,253 Short-term investments — 15,282 — — 15,282 Other assets Derivative instruments (see Note 6) — 5,859 — — 5,859 Insurance-linked securities — — 24,976 — 24,976 Total Assets $ 1,964,443 $ 9,717,804 $ 190,187 $ 750,073 $ 12,622,507 Liabilities Derivative instruments (see Note 6) $ — $ 1,873 $ 11,844 $ — $ 13,717 Cash settled awards (see Note 9) — 18,369 — — 18,369 Total Liabilities $ — $ 20,242 $ 11,844 $ — $ 32,086 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At December 31, 2016 Assets Fixed maturities U.S. government and agency $ 1,583,106 $ 72,963 $ — $ — $ 1,656,069 Non-U.S. government — 565,834 — — 565,834 Corporate debt — 4,524,868 75,875 — 4,600,743 Agency RMBS — 2,465,135 — — 2,465,135 CMBS — 663,176 3,061 — 666,237 Non-Agency RMBS — 56,921 — — 56,921 ABS — 1,204,750 17,464 — 1,222,214 Municipals — 163,961 — — 163,961 1,583,106 9,717,608 96,400 — 11,397,114 Equity securities Common stocks 78 — — — 78 Exchange-traded funds 514,707 — — — 514,707 Bond mutual funds — 123,959 — — 123,959 514,785 123,959 — — 638,744 Other investments Hedge funds — — — 498,150 498,150 Direct lending funds — — — 134,650 134,650 Private equity funds — — — 81,223 81,223 Real estate funds — — — 13,354 13,354 Other privately held investments — — 42,142 — 42,142 CLO-Equities — — 60,700 — 60,700 — — 102,842 727,377 830,219 Short-term investments — 127,461 — — 127,461 Other assets Derivative instruments (see Note 6) — 14,365 2,532 — 16,897 Insurance-linked securities — — 25,023 — 25,023 Total Assets $ 2,097,891 $ 9,983,393 $ 226,797 $ 727,377 $ 13,035,458 Liabilities Derivative instruments (see Note 6) $ — $ 9,076 $ 6,500 $ — $ 15,576 Cash settled awards (see Note 9) — 48,432 — — 48,432 Total Liabilities $ — $ 57,508 $ 6,500 $ — $ 64,008 During 2017 and 2016 , there were no transfers between Levels 1 and 2. Except certain fixed maturities and insurance-linked securities priced using broker-dealer quotes (underlying inputs are not available), the following table quantifies the significant unobservable inputs used in estimating fair values at September 30, 2017 for investments classified as Level 3 in the fair value hierarchy. Fair Value Valuation Technique Unobservable Input Range Weighted Average Other investments - CLO-Equities $ 32,141 Discounted cash flow Default rates 3.8% 3.8% Loss severity rate 35.0% 35.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years 4,641 Liquidation value Fair value of collateral 100% 100% Discount margin 0% - 17.8% 2.7% Other investments - Other privately held investments 43,398 Discounted cash flow Discount rate 6.0% - 8.0% 7.5% Derivatives - Other underwriting-related derivatives $ (11,844 ) Discounted cash flow Discount rate 2.3% 2.3% The CLO-Equities market continues to be relatively inactive with only a small number of transactions being observed, particularly as it relates to transactions involving our CLO-Equities. Accordingly, fair values of investments in CLO-Equities are determined using models. Given that all of our direct investments in CLO-Equities are past their reinvestment period, there is uncertainty over the remaining time to maturity. As such our direct investments in CLO-Equities are estimated using a liquidation valuation. Indirect investments in CLO-Equities are valued using a discounted cash flow model prepared by an external manager. The liquidation valuation is based on the fair values of the net underlying collateral which is determined by applying market discount margins by credit quality bucket. An increase (decrease) in the market discount margin would result in a decrease (increase) in value of our CLO-Equities. Regarding the discounted cash flow 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 investments in 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 investments in 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 process for CLO-Equities includes a review of the underlying collateral along with related discount margins by credit quality bucket used in the liquidation valuation and a review of the underlying cash flows and key assumptions used in the discounted cash flow model. The above significant unobservable inputs are reviewed and updated based on information obtained from secondary markets, including information received from the managers of our CLO-Equities portfolio. In order to assess the reasonableness of the inputs we use in our models, we maintain an understanding of current market conditions, historical results, as well as emerging trends that may impact future cash flows. In addition,we update the assumptions we use in our models through regular communication with industry participants and ongoing monitoring of the deals in which we participate (e.g. default and loss severity rate trends). Other privately held securities are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these securities are determined using internally developed discounted cash flow models. These models include inputs that are specific to each investment. The inputs used in the fair value measurements include dividend or interest rates and appropriate discount rates. The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of these securities. A significant increase (decrease) in this input in isolation could result in a significantly lower (higher) fair value measurement for other privately held securities. Where relevant, we also consider the contractual agreements which stipulate methodologies for calculating the dividend rate to be paid upon liquidation, conversion or redemption. In order to assess the reasonableness of the inputs we use in the discounted cash flow models, we maintain an understanding of current market conditions, historical results, as well as investee specific information that may impact future cash flows. Other underwriting-related derivatives are initially valued at cost which approximates fair value. In subsequent measurement periods, the fair values of these derivatives are determined using internally developed discounted cash flow models which uses appropriate discount rates. The selection of an appropriate discount rate is judgmental and is the most significant unobservable input used in the valuation of these derivatives. A significant increase (decrease) in this input in isolation could result in a significantly lower (higher) fair value measurement for the derivative contracts. In order to assess the reasonableness of the inputs we use in the discounted cash flow model, we maintain an understanding of current market conditions, historical results, as well as contract specific information that may impact future cash flows. The following tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2017 Fixed maturities Corporate debt $ 68,320 $ — $ (1,208 ) $ (835 ) $ (9 ) $ — $ (2,274 ) $ (2,978 ) $ 61,016 $ — CMBS — — — — — — — — — — ABS 5,999 — (6,001 ) — 10 24,007 — — 24,015 — 74,319 — (7,209 ) (835 ) 1 24,007 (2,274 ) (2,978 ) 85,031 — Other investments Other privately held investments 42,938 — — 460 — — — — 43,398 460 CLO - Equities 47,076 — — 1,402 — — — (11,696 ) 36,782 1,402 90,014 — — 1,862 — — — (11,696 ) 80,180 1,862 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,047 — — (71 ) — — — — 24,976 (71 ) 25,047 — — (71 ) — — — — 24,976 (71 ) Total assets $ 189,380 $ — $ (7,209 ) $ 956 $ 1 $ 24,007 $ (2,274 ) $ (14,674 ) $ 190,187 $ 1,791 Other liabilities Derivative instruments $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Total liabilities $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Nine months ended September 30, 2017 Fixed maturities Corporate debt $ 75,875 $ 1,536 $ (3,112 ) $ (762 ) $ (392 ) $ 19,181 $ (21,475 ) $ (9,835 ) $ 61,016 $ — CMBS 3,061 — (9,418 ) — 17 9,400 — (3,060 ) — — ABS 17,464 — (24,949 ) — 1,493 30,007 — — 24,015 — 96,400 1,536 (37,479 ) (762 ) 1,118 58,588 (21,475 ) (12,895 ) 85,031 — Other investments Other privately held investments 42,142 — — 1,256 — — — — 43,398 1,256 CLO - Equities 60,700 — — 3,930 — — — (27,848 ) 36,782 3,930 102,842 — — 5,186 — — — (27,848 ) 80,180 5,186 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — (47 ) — — — — 24,976 (47 ) 27,555 — — 606 — — — (3,185 ) 24,976 (47 ) Total assets $ 226,797 $ 1,536 $ (37,479 ) $ 5,030 $ 1,118 $ 58,588 $ (21,475 ) $ (43,928 ) $ 190,187 $ 5,139 Other liabilities Derivative instruments $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Total liabilities $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2016 Fixed maturities Corporate debt $ 62,022 $ — $ — $ (9 ) $ 100 $ 7,563 $ — $ (584 ) $ 69,092 $ — CMBS 10,210 — — — (48 ) — — (1,242 ) 8,920 — ABS — — — — — — — — — — 72,232 — — (9 ) 52 7,563 — (1,826 ) 78,012 — Other investments Other privately held investments 41,755 — — (355 ) — 1,500 — — 42,900 (355 ) CLO - Equities 65,883 — — 8,419 — — — (10,519 ) 63,783 8,419 107,638 — — 8,064 — 1,500 — (10,519 ) 106,683 8,064 Other assets Derivative instruments 5 — — 665 — 1,818 — — 2,488 665 Insurance-linked securities 25,025 — — 258 — — — — 25,283 258 25,030 — — 923 — 1,818 — — 27,771 923 Total assets $ 204,900 $ — $ — $ 8,978 $ 52 $ 10,881 $ — $ (12,345 ) $ 212,466 $ 8,987 Other liabilities Derivative instruments $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Total liabilities $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Nine months ended September 30, 2016 Fixed maturities Corporate debt $ 38,518 $ 20,412 $ (1,955 ) $ (988 ) $ 1,188 $ 17,107 $ (4,015 ) $ (1,175 ) $ 69,092 $ — CMBS 10,922 — — — (134 ) — — (1,868 ) 8,920 — ABS — — — — — — — — — — 49,440 20,412 (1,955 ) (988 ) 1,054 17,107 (4,015 ) (3,043 ) 78,012 — Other investments Other privately held investments — — — (1,505 ) — 44,405 — — 42,900 (1,505 ) CLO - Equities 27,257 36,378 — 17,431 — — — (17,283 ) 63,783 17,431 27,257 36,378 — 15,926 — 44,405 — (17,283 ) 106,683 15,926 Other assets Derivative instruments 4,395 — — 3,255 — 3,623 — (8,785 ) 2,488 669 Insurance-linked securities 24,925 — — 358 — — — — 25,283 358 29,320 — — 3,613 — 3,623 — (8,785 ) 27,771 1,027 Total assets $ 106,017 $ 56,790 $ (1,955 ) $ 18,551 $ 1,054 $ 65,135 $ (4,015 ) $ (29,111 ) $ 212,466 $ 16,953 Other liabilities Derivative instruments $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 Total liabilities $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 (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 There were no transfers to Level 3 from Level 2 made during the three months ended September 30, 2017. The transfers to Level 3 from Level 2 made during the nine months ended September 30, 2017 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities. There were no transfers to Level 3 from Level 2 made during the three months ended September 30, 2016. The transfers into Level 3 made during the nine months ended September 30, 2016 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities and as a result of a change in the valuation methodology used to fair value the CLO-equity fund. An income approach valuation technique (discounted cash flow model) was used to estimate the fair value of the CLO-equity fund at September 30, 2016 . As the NAV practical expedient was not used to determine the fair value of the CLO-equity fund, the fair value of the fund was categorized within the fair value hierarchy. Transfers out of Level 3 into Level 2 The transfers into Level 2 from Level 3 made during the three and nine months ended September 30, 2017 were primarily due to the availability of observable market inputs and quotes from pricing vendors on certain fixed maturities. There were no transfers to Level 2 from Level 3 made during the three months ended September 30, 2016. The transfers to Level 2 from Level 3 made during the nine months ended September 30, 2016 were primarily due to the availability of observable market inputs and quotes from pricing vendors on certain fixed maturities. Measuring the Fair Value of Other Investments Using Net Asset Valuations The fair values of hedge funds, direct lending funds, private equity funds and real estate funds are estimated using NAVs as advised by external fund managers or third party administrators. For these funds, NAVs are 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. If there is a reporting lag between the current period end and reporting date of the latest available fund valuation for any hedge fund, we estimate fair values by starting with the most recently available fund valuation and adjusting for return estimates as well as any subscriptions, redemptions and distributions that took place during the current period. Return estimates are obtained from the relevant fund managers. Accordingly, we do not typically have a reporting lag in fair value measurements of these funds. Historically, our valuation estimates incorporating these return estimates have not significantly diverged from the subsequently received NAVs. For direct lending funds, private equity funds, real estate funds and two of our hedge funds, valuation statements are typically released on a three month reporting lag therefore we estimate fair value of these funds by starting with the prior quarter-end fund valuations and adjusting for capital calls, redemptions, drawdowns and distributions. Return estimates are not available from the relevant fund managers for these funds. Accordingly, we typically have a reporting lag in our fair value measurements of these funds. In 2017, funds reported on a lag represented 51% (2016: 35% ) of our total other investments balance. We often do not have access to financial information relating to the underlying securities held within the funds, therefore management is unable to corroborate the fair values placed on the securities underlying the asset valuations provided by fund managers or fund administrators. In order to assess the reasonableness of the NAVs, we perform a number of monitoring procedures on a quarterly basis, to assess the quality of the information provided by fund managers and funds 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 fair values for each fund against NAVs per audited financial statements (for year-end values) and final NAVs from fund managers and fund administrators (for interim values). The fair values of hedge funds, direct lending funds, private equity funds and real estate funds are measured using the NAV practical expedient, therefore the fair values of these funds have not been categorized within the fair value hierarchy. Financial Instruments Disclosed, But Not Carried, at Fair Value The fair value of financial instruments accounting guidance also applies to financial instruments disclosed, but not carried, at fair value, except for certain financial instruments, including insurance contracts. The carrying values of cash and 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 September 30, 2017 , due to their respective short maturities. As these financial instruments are not actively traded, their fair values are classified as Level 2. The carrying value of mort |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | 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. None of our derivative instruments are designated as hedges under current accounting guidance. September 30, 2017 December 31, 2016 Derivative Notional Amount Derivative Asset Fair Value (1) Derivative Liability Fair Value (1) Derivative Notional Amount Derivative Asset Fair Value (1) Derivative Liability Fair Value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 147,015 $ — $ 439 $ 195,979 $ 12,331 $ 87 Interest rate swaps 180,000 393 — — — — Relating to underwriting portfolio: Foreign exchange forward contracts 479,818 5,466 1,434 492,899 2,034 8,989 Weather-related contracts — — — 67,957 2,532 6,500 Commodity contracts — — — — — — Other underwriting-related contracts 85,000 — 11,844 — — — Total derivatives $ 5,859 $ 13,717 $ 16,897 $ 15,576 (1) Asset and liability derivatives are classified within other assets and other liabilities in 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 the Consolidated Balance Sheets, with the difference being attributable to the impact of master netting agreements. September 30, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 9,682 $ (3,823 ) $ 5,859 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,540 $ (3,823 ) $ 13,717 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the Consolidated Balance Sheets. Refer to Note 4 'Investments' for information on reverse repurchase agreements. a) Relating to Investment Portfolio Foreign Currency Risk Within our investment portfolio we are exposed to foreign currency risk. Accordingly, the fair values of our investment portfolio are partially influenced by the change in foreign exchange rates. We may enter into foreign currency exchange 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. 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. 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 We 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. Commodity Risk Within our (re)insurance portfolio we are exposed to commodity price risk. We may hedge a portion of this price risk by entering into commodity derivative contracts. Other Underwriting-related Risks We enter into insurance and reinsurance contracts that are required to be accounted for as derivatives. These insurance or reinsurance contract provides indemnification to an insured or cedant as a result of a change in a variable as opposed to a change in an identifiable insured event. We consider these contracts to be part of our underwriting operations. The total unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges were as follows: Location of Gain (Loss) Recognized in Income on Derivative Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Relating to investment portfolio: Foreign exchange forward contracts Net realized investment gains (losses) $ (1,815 ) $ 155 $ (6,534 ) $ 39 Interest rate swaps Net realized investment gains (losses) 520 — (2,661 ) — Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange losses (gains) (12,481 ) (182 ) (26,109 ) (2,958 ) Weather-related contracts Other insurance related income (losses) — 833 (9,629 ) 809 Commodity contracts Other insurance related income (losses) — 1,799 — 1,499 Other underwriting-related contracts Other insurance related income (losses) 514 — 852 — Total $ (13,262 ) $ 2,605 $ (44,081 ) $ (611 ) |
RESERVE FOR LOSSES AND LOSS EXP
RESERVE FOR LOSSES AND LOSS EXPENSES | 9 Months Ended |
Sep. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserve Roll-Forward 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: Nine months ended September 30, 2017 2016 Gross reserve for losses and loss expenses, beginning of period $ 9,697,827 $ 9,646,285 Less reinsurance recoverable on unpaid losses, beginning of period (2,276,109 ) (2,031,309 ) Net reserve for unpaid losses and loss expenses, beginning of period 7,421,718 7,614,976 Net incurred losses and loss expenses related to: Current year 2,591,135 1,887,715 Prior years (143,495 ) (224,131 ) 2,447,640 1,663,584 Net paid losses and loss expenses related to: Current year (328,751 ) (233,124 ) Prior years (1,384,510 ) (1,334,772 ) (1,713,261 ) (1,567,896 ) Foreign exchange and other 333,456 (112,649 ) Net reserve for unpaid losses and loss expenses, end of period 8,489,553 7,598,015 Reinsurance recoverable on unpaid losses, end of period 2,298,022 2,276,792 Gross reserve for losses and loss expenses, end of period $ 10,787,575 $ 9,874,807 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 the nine months ended September 30, 2017 and 2016 , we recognized aggregate net losses and loss expenses, net of reinstatement premiums of $702 million and $145 million , respectively, in relation to catastrophe and weather related events. The transfer of the insurance business of AXIS Specialty Australia to a reinsurer was approved by the Irish High Court on February 1, 2017 and the Federal Court of Australia on February 10, 2017. Consequently, the insurance policies, assets and liabilities of AXIS Specialty Australia were transferred to the reinsurer with effect from February 13, 2017. This resulted in the reduction of reserves for losses and loss expenses by $223 million and a reduction in reinsurance recoverables on unpaid and paid losses by $223 million . On April 1, 2017, the Company acquired a 100% ownership interest in Aviabel. Foreign exchange and other includes reserves for losses and loss expenses of $79 million and reinsurance recoverables on unpaid and paid losses of $5 million related to this acquisition. Prior Year Development Prior year reserve development arises from changes to loss and loss expense estimates related to losses incurred in previous calendar years. Such development is summarized by segment in the following table: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Insurance $ 2,603 $ 20,688 $ 30,740 $ 43,181 Reinsurance 45,165 55,331 112,755 180,950 Total $ 47,768 $ 76,019 $ 143,495 $ 224,131 Net favorable prior year reserve development for the three months ended September 30, 2017 included significant contributions from our medium and long tail reserve classes. Net favorable prior year reserve development for the nine months ended September 30, 2017 included significant contributions from short, medium, and long tail reserve classes. Net favorable prior year reserve development for the three and nine months ended September 30, 2016 included significant contributions from our short and long tail reserve classes. Our short tail business includes the underlying exposures in our property and other, marine and aviation reserve classes within our insurance segment, and the property and other reserve class within our reinsurance segment. Development from these classes contributed $5 million and $41 million of net favorable prior year reserve development for the three and nine months ended September 30, 2017 , respectively. These short-tail lines contributed $41 million and $116 million of net favorable prior year reserve development for the three and nine months ended September 30, 2016 , respectively. The net favorable development for these classes primarily reflected the recognition of better than expected loss emergence. Our medium-tail business consists primarily of professional insurance and reinsurance reserve classes, credit and political risk insurance reserve class, and credit and surety reinsurance reserve class. For the three months ended September 30, 2017 , the professional reinsurance reserve class contributed net favorable prior year reserve development of $9 million . For the nine months ended September 30, 2017 , the professional insurance and reinsurance reserve class contributed net favorable prior year reserve development of $54 million . For the three and nine months ended September 30, 2017 , the credit and surety reinsurance reserve class recorded net favorable prior year development of $17 million and $18 million , respectively. This net favorable prior year reserve development reflected the recognition of generally better than expected loss emergence. For the three and nine months ended September 30, 2016 , the professional reserve classes contributed net favorable prior year reserve development of $12 million and $28 million , respectively. The net favorable prior year reserve development on these reserve classes reflected generally favorable experience as we continued to transition to more experience based methods. Our long-tail business consists primarily of liability and motor reserve classes. For the nine months ended September 30, 2017 , the liability reinsurance reserve class contributed net favorable prior year reserve development of $40 million . For the three and nine months ended and September 30, 2016 , the liability reinsurance reserve class contributed net favorable prior year development of $10 million and $32 million , respectively. The net favorable prior year reserve development for our liability reinsurance reserve class in both years primarily reflected the progressively increased weight given by management to experience based indications on older accident years, which has generally been favorable. For the nine months ended September 30, 2017 , the liability insurance reserve class recorded net adverse prior year reserve development of $6 million , primarily attributable to reserve strengthening within our run-off Bermuda excess casualty book of business. For the three and nine months ended September 30, 2017 , the motor reinsurance reserve class recorded net favorable prior year development of $16 million and net adverse prior year reserve development of $4 million , respectively. For the three months ended September 30, 2017 , the net favorable prior year reserve development related to favorable loss emergence trends on several classes of business spanning multiple accident years. For the nine months ended , the net adverse prior year development was driven by the U.K. Ministry of Justice’s recent announcement of a decrease in the discount rate used to calculate lump sum awards in U.K. bodily injury cases, known as the Ogden rate. Effective March 20, 2017, the Ogden rate changed from plus 2.5% to minus 0.75% . For the three and nine months ended September 30, 2016 , the motor reinsurance reserve class contributed $7 million and $40 million , respectively, of net favorable prior year reserve development related to favorable loss emergence trends on several classes of business spanning multiple accident years. Our September 30, 2017 net reserves for losses and loss expenses includes estimated amounts for numerous catastrophe events. We caution that the magnitude and/or complexity of losses arising from certain of these events, in particular Hurricanes Harvey, Irma and Maria and the two earthquakes in Mexico, as well as Hurricane Matthew, the Fort McMurray wildfires, Storm Sandy, the 2011 Japanese earthquake and tsunami, the 2010-11 New Zealand earthquakes and the Tianjin port explosion, inherently increases 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. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | The following table presents a comparison of basic and diluted earnings per common share: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Basic earnings (loss) per common share Net income (loss) $ (457,084 ) $ 186,613 $ (341,541 ) $ 364,460 Less: preferred share dividends 10,656 9,969 36,154 29,906 Net income (loss) available to common shareholders (467,740 ) 176,644 (377,695 ) 334,554 Weighted average common shares outstanding - basic (1) 83,305 89,621 84,479 91,852 Basic earnings (loss) per common share $ (5.61 ) $ 1.97 $ (4.47 ) $ 3.64 Diluted earnings (loss) per common share Net income (loss) available to common shareholders $ (467,740 ) $ 176,644 $ (377,695 ) $ 334,554 Weighted average common shares outstanding - basic (1) 83,305 89,621 84,479 91,852 Share-based compensation plans (2) — 730 — 727 Weighted average common shares outstanding - diluted (1) 83,305 90,351 84,479 92,579 Diluted earnings (loss) per common share $ (5.61 ) $ 1.96 $ (4.47 ) $ 3.61 Anti-dilutive shares excluded from the dilutive computation 425 — 712 226 (1) On August 17, 2015 , the Company entered into an Accelerated Share Repurchase (“ASR”) agreement (see ' Note 10 - Shareholders' Equity' for additional detail). The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share reflects the Company’s receipt of 4,149,378 common shares delivered to the Company on August 20, 2015, and 1,358,380 common shares delivered to the company on January 15, 2016 under the Company's ASR agreement. (2) Due to the net loss incurred in the three and nine months ended September 30, 2017, all the share equivalents were anti-dilutive. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | For the three months ended September 30, 2017 , the Company incurred share-based compensation costs of $13 million ( 2016 : $14 million ) related to restricted stock awards, share-settled restricted stock units, and cash-settled restricted stock units and recorded associated tax benefits of $3 million ( 2016 : $3 million ). For the nine months ended September 30, 2017 , the Company incurred share-based compensation costs of $57 million ( 2016 : $50 million ). In addition, the Company recorded associated tax benefits of $20 million ( 2016 : $11 million ), including $7 million related to excess tax benefits associated with the vesting of restricted stock units. The fair value of share-settled restricted stock units and cash-settled restricted stock units that vested during the nine months ended September 30, 2017 was $125 million ( 2016 : $66 million ), including $44 million attributable to a grant of 3 year cliff vesting service-based awards made in 2014. At September 30, 2017 there were $99 million of unrecognized compensation costs ( 2016 $104 million ), which are expected to be recognized over the weighted average period of 2.5 years . Share-settled Awards The following table provides a reconciliation of the beginning and ending balance of nonvested share-settled restricted stock units for the nine months ended September 30, 2017 : Performance-based Stock Awards Service-based Stock Awards Number of Restricted Stock Units Weighted Average Grant Date Fair Value (1) Number of Restricted Stock Units Weighted Average Grant Date Fair Value (1) Nonvested restricted stock - beginning of period 283 $ 51.27 1,593 $ 48.88 Granted 87 64.58 525 64.22 Vested (2) (119 ) 49.14 (881 ) 47.37 Forfeited — — (69 ) 54.66 Nonvested restricted stock - end of period 251 $ 56.88 1,168 $ 57.08 (1) Fair value is based on the closing price of our common shares on the grant approval date. (2) Share-settled restricted stock units vested during the nine months ended September 30, 2017 included 313,391 restricted stock units attributable to a grant of 3 year cliff vesting service-based awards made in 2014. Cash-settled awards The following table provides a reconciliation of the beginning and ending balance of nonvested cash-settled restricted stock units for the nine months ended September 30, 2017 : Performance-based Cash Settled Awards Service-based Cash Settled Awards Number of Restricted Stock Units Number of Restricted Stock Units Nonvested restricted stock units - beginning of period 68 1,392 Granted 15 427 Vested (1) (38 ) (755 ) Forfeited — (60 ) Nonvested restricted stock units - end of period 45 1,004 (1) Cash settled restricted stock units vested during the nine months ended September 30, 2017 included 307,556 restricted stock units attributable to a grant of 3 year cliff vesting service-based awards made in 2014. At September 30, 2017, the liability for cash-settled restricted stock units, included in other liabilities in the Consolidated Balance Sheets, was $18 million (2016: $34 million ). |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | The following table presents common shares issued and outstanding: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Shares issued, balance at beginning of period 176,580 176,575 176,580 176,240 Shares issued — — — 335 Total shares issued at end of period 176,580 176,575 176,580 176,575 Treasury shares, balance at beginning of period (93,377 ) (85,921 ) (90,139 ) (80,174 ) Shares repurchased (51 ) (2,252 ) (4,284 ) (8,499 ) Shares reissued from treasury 5 37 1,000 537 Total treasury shares at end of period (93,423 ) (88,136 ) (93,423 ) (88,136 ) Total shares outstanding 83,157 88,439 83,157 88,439 Treasury Shares The following table presents share repurchases: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 In the open market: Total shares (1) 49 2,232 3,932 8,236 Total cost $ 3,237 $ 124,948 $ 261,180 $ 434,948 Average price per share (2) $ 65.80 $ 56.00 $ 66.43 $ 52.81 From employees: (3) Total shares 2 20 352 263 Total cost $ 110 $ 1,088 $ 24,479 $ 14,137 Average price per share (2) $ 64.04 $ 54.13 $ 69.53 $ 53.68 Total shares repurchased: Total shares 51 2,252 4,284 8,499 Total cost $ 3,347 $ 126,036 $ 285,659 $ 449,085 Average price per share (2) $ 65.74 $ 55.98 $ 66.68 $ 52.84 (1) Total shares repurchased in the open market for the nine months ended September 30, 2016 includes 1,358,380 common shares acquired under the accelerated share repurchase program (see below for more detail). (2) Calculated using whole numbers. (3) To satisfy withholding tax liabilities upon the vesting of restricted stock and restricted stock units. Accelerated Share Repurchase Program On August 17, 2015 , the Company entered into an Accelerated Share Repurchase agreement with Goldman, Sachs & Co. (“Goldman Sachs”) to repurchase an aggregate of $300 million of the Company’s ordinary shares under an accelerated share repurchase program. During August, 2015 , under the terms of this agreement, the Company paid $300 million to Goldman Sachs and initially repurchased 4,149,378 ordinary shares. The initial shares acquired represented 80% of the $300 million total paid to Goldman Sachs and were calculated using the Company’s stock price at activation of the program. The ASR program is accounted for as an equity transaction. Accordingly, at December 31, 2015, $240 million of common shares repurchased were included as treasury shares in the Consolidated Balance Sheet with the remaining $60 million included as a reduction to additional paid-in capital. On January 15, 2016 , Goldman Sachs early terminated the ASR agreement and delivered 1,358,380 additional common shares to the Company, resulting in the reduction from additional paid-in capital of $60 million being reclassified to treasury shares. In total, the Company repurchased 5,507,758 common shares under the ASR agreement at an average price of $ 54.47 . Preferred Shares On April 17, 2017, the Company redeemed the remaining 14,042,955 of its 6.875% Series C preferred shares, for an aggregate liquidation preference of $351 million . |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 9 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | On March 27, 2017, the $250 million credit facility entered into by AXIS Capital and certain of its subsidiaries and a syndication of lenders expired. On March 27, 2017, certain of AXIS Capital’s operating subsidiaries (the "Participating Subsidiaries") amended their existing $500 million secured letter of credit facility (the “LOC Facility”) with Citibank Europe plc (“Citibank”) to include an additional $250 million of secured letter of credit capacity (the “ $250 Million Facility”) pursuant to a Committed Facility Letter and an amendment to the Master Reimbursement Agreement (the “LOC Facility Documents”). Under the terms of the $250 Million Facility, letters of credit to a maximum aggregate amount of $250 million are available for issuance on behalf of the Participating Subsidiaries. These letters of credit will principally be used to support the reinsurance obligations of the Participating Subsidiaries. The $250 Million 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 Participating Subsidiaries. The $250 million Facility expires March 31, 2018. The terms and conditions of the $500 million Facility remain unchanged. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Reinsurance Agreements We purchase reinsurance and retrocessional protection for our insurance and reinsurance lines of business. The minimum reinsurance premiums are contractually due in advance on a quarterly basis. At September 30, 2017 , we have unrecorded outstanding reinsurance purchase commitments of $97 million , of which $15 million is due in 2017 and the remaining $82 million is due in 2018 and later years. Actual payments under the reinsurance contracts will depend on the underlying subject premium and may exceed the minimum premium. Investments Refer to Note 4 - 'Investments' for information on commitments related to our other investments. |
OTHER COMPREHENSIVE INCOME
OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME | The tax effects allocated to each component of other comprehensive income were as follows: 2017 2016 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Three months ended September 30, Available for sale investments: Unrealized investment gains arising during the period $ 64,431 $ (1,926 ) $ 62,505 $ 40,125 $ (3,789 ) $ 36,336 Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income (15,925 ) 2,639 (13,286 ) (5,050 ) 2,408 (2,642 ) Unrealized investment gains arising during the period, net of reclassification adjustment 48,506 713 49,219 35,075 (1,381 ) 33,694 Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 8,088 — 8,088 1,722 — 1,722 Total other comprehensive income, net of tax $ 56,594 $ 713 $ 57,307 $ 36,797 $ (1,381 ) $ 35,416 Nine months ended September 30, Available for sale investments: Unrealized investment gains arising during the period $ 215,360 $ (8,899 ) $ 206,461 $ 263,235 $ (24,579 ) $ 238,656 Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 8,269 1,900 10,169 40,338 2,282 42,620 Unrealized investment gains arising during the period, net of reclassification adjustment 223,629 (6,999 ) 216,630 303,573 (22,297 ) 281,276 Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 46,824 — 46,824 5,694 — 5,694 Total other comprehensive income, net of tax $ 270,453 $ (6,999 ) $ 263,454 $ 309,267 $ (22,297 ) $ 286,970 Reclassifications out of AOCI into net income (loss) 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 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Unrealized investment gains (losses) on available for sale investments Other realized investment gains(losses) $ 21,337 $ 9,297 $ 5,224 $ (19,992 ) OTTI losses (5,412 ) (4,247 ) (13,493 ) (20,346 ) Total before tax 15,925 5,050 (8,269 ) (40,338 ) Income tax expense (2,639 ) (2,408 ) (1,900 ) (2,282 ) Net of tax $ 13,286 $ 2,642 $ (10,169 ) $ (42,620 ) Foreign currency translation adjustment Foreign exchange loss $ — $ — $ (24,149 ) $ — Income tax expense — — — — Net of tax $ — $ — $ (24,149 ) $ — (1) Amounts in parentheses are debits to net income (loss) available to common shareholders. On March 27, 2017, as part of the wind down of our Australia operation, the Australia Prudential Regulation Authority revoked the authorization of AXIS Specialty Australia to carry on insurance business in Australia. As this resulted in the substantial liquidation of AXIS Specialty Australia, we have released the cumulative translation adjustment related to AXIS Specialty Australia of $24 million from accumulated other comprehensive income in the Consolidated Balance Sheet to foreign exchange losses in the Consolidated Statement of Operations. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | On July 5, 2017, the Company and the board of directors of Novae Group plc (“Novae”), a public limited company incorporated in England and Wales, announced that it had agreed on the terms of a recommended cash offer of 700 pence per share to be made by AXIS Capital to acquire the entire issued and to be issued share capital of Novae. On August 24, 2017, the Company and the board of directors of Novae announced that it had agreed on the terms of an increased recommended cash offer of 715 pence per share (the "Offer") to be made by AXIS Capital for the acquisition of the entire issued and to be issued share capital of Novae. The acquisition was effected by way of a Scheme of Arrangement (the “Scheme”) under the laws of the United Kingdom (“U.K.”) which requires the approval of a U.K. court and approval of a majority of Novae’s shareholders, representing at least 75% of the votes cast. The Scheme is also subject to receipt of certain regulatory approvals and other customary conditions. On August 29, 2017, Novae shareholders approved the Scheme. On October 2, 2017, AXIS Capital acquired the shares of Novae for £462.9 million (approximately $615.6 million ). The results of Novae will be included in the results of the Company's insurance and reinsurance segments from this date (the "Closing date"). On October 6, 2017, AXIS Capital received clearance from all applicable regulators, including the European Commission, and commenced management control and integration of the combined businesses from this date. Novae is a diversified property and casualty (re)insurance business operating through Syndicate 2007 at Lloyd’s of London. The acquisition of Novae is expected to accelerate the growth strategy of the Company's international insurance business, and significantly scale up its capabilities to enable the Company to even better serve its clients and brokers. The Company incurred transaction related expenses including due diligence, legal, accounting, and investment banking fees and expenses, as well as integration expenses of $6 million in the three months ended September 30, 2017 related to the acquisition of Novae. In addition, the Company was contractually obligated to pay investment banking fees on the Closing date of the transaction. The Company expects substantially all of the integration costs related to the acquisition to be incurred in 2018. In addition, the Company expects to begin realizing cost savings in 2018. The Company is currently in the process of determining the fair values of the underlying assets and liabilities at the acquisition date. Given the timing of the acquisition, a preliminary allocation of purchase price is not yet complete. The Company will include amounts recognized for net assets and liabilities acquired, together with goodwill, as of the acquisition date in the Company's Annual Report on Form 10-K. California Wildfires In October 2017, Northern California was impacted by a series of devastating wildfires ("California Wildfires") which caused widespread residential and commercial property damage. Current estimated industry insured losses for this event range between $4 billion and $8 billion . Our preliminary pre-tax net loss estimate for this event is in the range of $35 million to $45 million . The Company's loss estimate is primarily based on a ground-up assessment of losses from individual contracts and treaties exposed to the affected regions, including preliminary information from clients, brokers and loss adjusters. Industry insured loss estimates, market share analyses and catastrophe modeling analyses were also taken into account where appropriate. Due to the preliminary nature of the information available to prepare these estimates, the actual net ultimate amount of losses for this event may be materially different from the current estimate. |
BASIS OF PRESENTATION AND ACC22
BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These interim consolidated financial statements include the accounts of AXIS Capital Holdings Limited (“AXIS Capital”) and its subsidiaries (herein referred to as “we,” “us,” “our,” or the “Company”). The consolidated balance sheet at September 30, 2017 and the consolidated statements of operations, comprehensive income, shareholders' equity and cash flows for the periods ended September 30, 2017 and 2016 have not been audited. The balance sheet at December 31, 2016 is derived from our audited financial statements. These financial statements have been prepared in accordance with U.S. Generally Accepted Accounting Principles (“U.S. GAAP”) for interim financial information and with the Securities and Exchange Commission's (“SEC”) instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of our financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. The following information should be read in conjunction with our Annual Report on Form 10-K for the year ended December 31, 2016 . Tabular dollar and share amounts are in thousands, except per share amounts. All amounts are reported in U.S. dollars. |
New Accounting Standards | New Accounting Standards Adopted in 2017 Stock Compensation - Improvements to Employee Share-Based Payment Accounting Effective January 1, 2017, the Company adopted Accounting Standards Update ("ASU" ) ASU 2016-09, "Compensation - Stock Compensation (Topic 718) - Improvements to Employee Share-Based Payment Accounting " which simplifies several aspects of the accounting for share-based payments to employees including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The guidance requires all excess tax benefits and tax deficiencies to be recognized in the income statement with the tax effects of exercised or vested awards to be treated as discrete items in the reporting period in which they occur. Excess tax benefits should be classified along with other income tax cash flows as an operating activity on the statement of cash flows. In addition, companies will be required to make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. The guidance allows withholding up to the maximum statutory tax rates in the applicable jurisdictions to cover income taxes on share-based compensation awards without requiring liability classification. Cash paid by an employer when directly withholding shares for tax withholding purposes should be classified as a financing activity. The adoption of this guidance did not have a material impact on our results of operations, financial condition and liquidity. Issued Accounting Standards Not Yet Adopted Revenue From Contracts With Customers In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)". This guidance affects any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards (for example, insurance contracts are not in scope of the new guidance). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In August 2015, the FASB delayed the effective date by one year through the issuance of ASU 2015-14, "Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Dat e". This guidance is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted for interim and annual reporting periods beginning after December 15, 2016. Accounting for insurance contracts is outside the scope of ASU 2014-09. The Company generates an insignificant amount of fee income, primarily from strategic capital partners, which is reported in other insurance related income (losses) in the Consolidated Statements of Operations and is subject to this accounting standard update. The Company's current accounting policy to recognize fee income in the period when related services are performed, principally aligns with this update. As a result, the Company does not expect the adoption of this guidance to have a material impact on our results of operations, financial condition and liquidity. Recently Issued Accounting Standards Not Yet Adopted Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20) - Premium Amortization on Purchased Callable Debt Securities" which shortens the amortization period for certain purchased callable debt securities held at a premium. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2018, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our results of operations, financial condition and liquidity. Stock Compensation - Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting " to provide clarity and reduce diversity in practice of applying the guidance in Topic 718 to a change to the terms or conditions of a share-based payment award. This ASU provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718. The guidance states that an entity should account for the effects of a modification unless all the following are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified; and (3) the classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. The current disclosure requirements in Topic 718 apply regardless of whether an entity is required to apply modification accounting under the amendments in this Update. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the impact of this guidance on our results of operations, financial condition and liquidity. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
UNDERWRITING RESULTS OF REPORTABLE SEGMENTS | The following tables summarize the underwriting results of our reportable segments, as well as the carrying values of allocated goodwill and intangible assets: 2017 2016 Three months ended and at September 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 744,366 $ 441,208 $ 1,185,574 $ 675,430 $ 284,532 $ 959,962 Net premiums written 500,022 332,721 832,743 433,131 162,300 595,431 Net premiums earned 496,004 521,127 1,017,131 444,691 489,724 934,415 Other insurance related income (losses) 526 (3,723 ) (3,197 ) 39 5,905 5,944 Net losses and loss expenses (628,865 ) (606,502 ) (1,235,367 ) (273,226 ) (259,102 ) (532,328 ) Acquisition costs (74,231 ) (120,493 ) (194,724 ) (61,755 ) (128,055 ) (189,810 ) General and administrative expenses (75,038 ) (21,658 ) (96,696 ) (84,588 ) (29,635 ) (114,223 ) Underwriting income (loss) $ (281,604 ) $ (231,249 ) (512,853 ) $ 25,161 $ 78,837 103,998 Corporate expenses (27,933 ) (28,683 ) Net investment income 95,169 116,923 Net realized investment gains 14,632 5,205 Foreign exchange (losses) gains (32,510 ) 13,795 Interest expense and financing costs (12,835 ) (12,839 ) Transaction related expenses (5,970 ) — Income (loss) before income taxes and interest in income (loss) of equity method investments $ (482,300 ) $ 198,399 Net loss and loss expense ratio 126.8 % 116.4 % 121.5 % 61.4 % 52.9 % 57.0 % Acquisition cost ratio 15.0 % 23.1 % 19.1 % 13.9 % 26.1 % 20.3 % General and administrative expense ratio 15.1 % 4.2 % 12.3 % 19.1 % 6.1 % 15.3 % Combined ratio 156.9 % 143.7 % 152.9 % 94.4 % 85.1 % 92.6 % Goodwill and intangible assets $ 87,206 $ — $ 87,206 $ 85,501 $ — $ 85,501 2017 2016 Nine months ended and at September 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 2,234,395 $ 2,225,377 $ 4,459,772 $ 2,112,796 $ 2,126,762 $ 4,239,558 Net premiums written 1,533,029 1,764,689 3,297,718 1,433,058 1,855,529 3,288,587 Net premiums earned 1,448,270 1,488,995 2,937,265 1,322,649 1,461,097 2,783,746 Other insurance related income (losses) 1,077 (5,497 ) (4,420 ) (57 ) 4,907 4,850 Net losses and loss expenses (1,241,495 ) (1,206,145 ) (2,447,640 ) (853,771 ) (809,813 ) (1,663,584 ) Acquisition costs (223,665 ) (365,214 ) (588,879 ) (184,982 ) (374,588 ) (559,570 ) General and administrative expenses (253,308 ) (82,474 ) (335,782 ) (252,652 ) (99,980 ) (352,632 ) Underwriting income (loss) $ (269,121 ) $ (170,335 ) (439,456 ) $ 31,187 $ 181,623 212,810 Corporate expenses (97,922 ) (86,922 ) Net investment income 299,899 257,818 Net realized investment losses (14,811 ) (40,295 ) Foreign exchange (losses) gains (90,093 ) 69,781 Interest expense and financing costs (38,377 ) (38,586 ) Bargain purchase gain 15,044 — Transaction related expenses (5,970 ) — Income (loss) before income taxes and interest in income (loss) of equity method investments $ (371,686 ) $ 374,606 Net loss and loss expense ratio 85.7 % 81.0 % 83.3 % 64.6 % 55.4 % 59.8 % Acquisition cost ratio 15.4 % 24.5 % 20.0 % 14.0 % 25.6 % 20.1 % General and administrative expense ratio 17.6 % 5.6 % 14.8 % 19.0 % 6.9 % 15.8 % Combined ratio 118.7 % 111.1 % 118.1 % 97.6 % 87.9 % 95.7 % Goodwill and intangible assets $ 87,206 $ — $ 87,206 $ 85,501 $ — $ 85,501 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
AMORTIZED COST/COST AND FAIR VALUES OF FIXED MATURITIES AND EQUITIES | The amortized cost or cost and fair values of our fixed maturities and equities were as follows: Amortized Cost or Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Non-credit OTTI in AOCI (5) At September 30, 2017 Fixed maturities U.S. government and agency $ 1,556,963 $ 2,729 $ (12,374 ) $ 1,547,318 $ — Non-U.S. government 568,223 13,961 (8,544 ) 573,640 — Corporate debt 4,460,337 65,230 (21,600 ) 4,503,967 — Agency RMBS (1) 2,313,096 12,218 (18,492 ) 2,306,822 — CMBS (2) 665,520 5,954 (1,738 ) 669,736 — Non-Agency RMBS 42,653 1,968 (804 ) 43,817 (867 ) ABS (3) 1,285,080 4,572 (782 ) 1,288,870 — Municipals (4) 151,522 1,379 (685 ) 152,216 — Total fixed maturities $ 11,043,394 $ 108,011 $ (65,019 ) $ 11,086,386 $ (867 ) Equity securities Common stocks $ 13,980 $ 1,415 $ (569 ) $ 14,826 Exchange-traded funds 365,412 88,782 — 454,194 Bond mutual funds 183,718 8,686 (1,673 ) 190,731 Total equity securities $ 563,110 $ 98,883 $ (2,242 ) $ 659,751 At December 31, 2016 Fixed maturities U.S. government and agency $ 1,681,425 $ 1,648 $ (27,004 ) $ 1,656,069 $ — Non-U.S. government 613,282 2,206 (49,654 ) 565,834 — Corporate debt 4,633,834 42,049 (75,140 ) 4,600,743 — Agency RMBS (1) 2,487,837 13,275 (35,977 ) 2,465,135 — CMBS (2) 664,368 5,433 (3,564 ) 666,237 — Non-Agency RMBS 57,316 1,628 (2,023 ) 56,921 (823 ) ABS (3) 1,221,813 3,244 (2,843 ) 1,222,214 — Municipals (4) 163,441 1,510 (990 ) 163,961 — Total fixed maturities $ 11,523,316 $ 70,993 $ (197,195 ) $ 11,397,114 $ (823 ) Equity securities Common stocks $ 379 $ 41 $ (342 ) $ 78 Exchange-traded funds 463,936 53,405 (2,634 ) 514,707 Bond mutual funds 133,051 — (9,092 ) 123,959 Total equity securities $ 597,366 $ 53,446 $ (12,068 ) $ 638,744 (1) Residential mortgage-backed securities (RMBS) originated by U.S. government-sponsored 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, maturities and redemptions. It does not include the change in fair value subsequent to the impairment measurement date. |
CONTRACTUAL MATURITIES OF FIXED 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 Cost Fair Value % of Total Fair Value At September 30, 2017 Maturity Due in one year or less $ 434,283 $ 432,662 4.0 % Due after one year through five years 3,834,452 3,850,174 34.7 % Due after five years through ten years 2,258,136 2,276,190 20.5 % Due after ten years 210,174 218,115 2.0 % 6,737,045 6,777,141 61.2 % Agency RMBS 2,313,096 2,306,822 20.8 % CMBS 665,520 669,736 6.0 % Non-Agency RMBS 42,653 43,817 0.4 % ABS 1,285,080 1,288,870 11.6 % Total $ 11,043,394 $ 11,086,386 100.0 % At December 31, 2016 Maturity Due in one year or less $ 313,287 $ 305,972 2.8 % Due after one year through five years 3,906,190 3,850,149 33.8 % Due after five years through ten years 2,546,299 2,510,975 22.0 % Due after ten years 326,206 319,511 2.8 % 7,091,982 6,986,607 61.4 % Agency RMBS 2,487,837 2,465,135 21.6 % CMBS 664,368 666,237 5.8 % Non-Agency RMBS 57,316 56,921 0.5 % ABS 1,221,813 1,222,214 10.7 % Total $ 11,523,316 $ 11,397,114 100.0 % |
FIXED MATURITIES AND EQUITIES IN AN UNREALIZED LOSS POSITION | 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 Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At September 30, 2017 Fixed maturities U.S. government and agency $ 161,425 $ (5,641 ) $ 1,207,943 $ (6,733 ) $ 1,369,368 $ (12,374 ) Non-U.S. government 61,872 (7,354 ) 163,477 (1,190 ) 225,349 (8,544 ) Corporate debt 412,832 (12,553 ) 990,308 (9,047 ) 1,403,140 (21,600 ) Agency RMBS 350,010 (8,130 ) 1,126,956 (10,362 ) 1,476,966 (18,492 ) CMBS 13,919 (238 ) 221,941 (1,500 ) 235,860 (1,738 ) Non-Agency RMBS 8,342 (803 ) 222 (1 ) 8,564 (804 ) ABS 16,816 (409 ) 323,886 (373 ) 340,702 (782 ) Municipals 23,339 (474 ) 40,913 (211 ) 64,252 (685 ) Total fixed maturities $ 1,048,555 $ (35,602 ) $ 4,075,646 $ (29,417 ) $ 5,124,201 $ (65,019 ) Equity securities Common stocks $ 33 $ (135 ) $ 2,939 $ (434 ) $ 2,972 $ (569 ) Exchange-traded funds — — — — — — Bond mutual funds — — 24,145 (1,673 ) 24,145 (1,673 ) Total equity securities $ 33 $ (135 ) $ 27,084 $ (2,107 ) $ 27,117 $ (2,242 ) At December 31, 2016 Fixed maturities U.S. government and agency $ 54,051 $ (2,729 ) $ 1,340,719 $ (24,275 ) $ 1,394,770 $ (27,004 ) Non-U.S. government 149,360 (38,683 ) 283,796 (10,971 ) 433,156 (49,654 ) Corporate debt 230,218 (30,652 ) 1,948,976 (44,488 ) 2,179,194 (75,140 ) Agency RMBS 76,694 (1,101 ) 1,724,170 (34,876 ) 1,800,864 (35,977 ) CMBS 84,640 (749 ) 193,499 (2,815 ) 278,139 (3,564 ) Non-Agency RMBS 13,642 (1,752 ) 7,194 (271 ) 20,836 (2,023 ) ABS 362,110 (1,950 ) 266,763 (893 ) 628,873 (2,843 ) Municipals 774 (29 ) 68,598 (961 ) 69,372 (990 ) Total fixed maturities $ 971,489 $ (77,645 ) $ 5,833,715 $ (119,550 ) $ 6,805,204 $ (197,195 ) Equity securities Common stocks $ — $ — $ 37 $ (342 ) $ 37 $ (342 ) Exchange-traded funds 4,959 (461 ) 87,760 (2,173 ) 92,719 (2,634 ) Bond mutual funds — — 123,954 (9,092 ) 123,954 (9,092 ) Total equity securities $ 4,959 $ (461 ) $ 211,751 $ (11,607 ) $ 216,710 $ (12,068 ) |
MORTGAGE LOANS NET OF VALUATION ALLOWANCE | The following table provides a breakdown of our mortgage loans held-for-investment: September 30, 2017 December 31, 2016 Carrying Value % of Total Carrying Value % of Total Mortgage Loans held-for-investment: Commercial $ 360,381 100 % $ 349,969 100 % 360,381 100 % 349,969 100 % Valuation allowances — — % — — % Total Mortgage Loans held-for-investment $ 360,381 100 % $ 349,969 100 % |
PORTFOLIO OF OTHER INVESTMENTS | The following table provides a breakdown of our investments in hedge funds, direct lending funds, private equity funds, real estate funds, CLO-Equities and other privately held investments, together with additional information relating to the liquidity of each category: Fair Value Redemption Frequency (if currently eligible) Redemption Notice Period At September 30, 2017 Long/short equity funds $ 64,067 8 % Annually 60 days Multi-strategy funds 286,452 35 % Quarterly, Semi-annually 60-95 days Event-driven funds 48,578 6 % Annually 45 days Direct lending funds 232,389 28 % n/a n/a Private equity funds 71,896 9 % n/a n/a Real estate funds 46,691 6 % n/a n/a CLO-Equities 36,782 3 % n/a n/a Other privately held investments 43,398 5 % n/a n/a Total other investments $ 830,253 100 % At December 31, 2016 Long/short equity funds $ 118,619 14 % Semi-annually, Annually 45-60 days Multi-strategy funds 285,992 34 % Quarterly, Semi-annually 60-95 days Event-driven funds 93,539 11 % Annually 45 days Direct lending funds 134,650 16 % n/a n/a Private equity funds 81,223 10 % n/a n/a Real estate funds 13,354 2 % n/a n/a CLO-Equities 60,700 8 % n/a n/a Other privately held investments 42,142 5 % n/a n/a Total other investments $ 830,219 100 % n/a - not applicable |
NET INVESTMENT INCOME | Net investment income was derived from the following sources: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fixed maturities $ 74,978 $ 75,827 $ 230,603 $ 229,423 Other investments 17,373 38,248 59,973 25,770 Equity securities 3,223 4,633 11,048 12,843 Mortgage loans 2,895 2,191 7,970 5,683 Cash and cash equivalents 3,111 3,768 9,640 7,071 Short-term investments 698 337 1,797 708 Gross investment income 102,278 125,004 321,031 281,498 Investment expenses (7,109 ) (8,081 ) (21,132 ) (23,680 ) Net investment income $ 95,169 $ 116,923 $ 299,899 $ 257,818 |
NET REALIZED INVESTMENT GAINS (LOSSES) | The following table provides an analysis of net realized investment gains (losses): Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Gross realized gains Fixed maturities and short-term investments $ 19,297 $ 26,211 $ 57,524 $ 67,833 Equities 17,980 5,570 33,794 18,804 Gross realized gains 37,277 31,781 91,318 86,637 Gross realized losses Fixed maturities and short-term investments (15,893 ) (21,908 ) (83,183 ) (90,702 ) Equities (45 ) (576 ) (258 ) (15,923 ) Gross realized losses (15,938 ) (22,484 ) (83,441 ) (106,625 ) Net OTTI recognized in earnings (5,412 ) (4,247 ) (13,493 ) (20,346 ) Change in fair value of investment derivatives (1) (1,295 ) 155 (9,195 ) 39 Net realized investment gains (losses) $ 14,632 $ 5,205 $ (14,811 ) $ (40,295 ) (1) Refer to Note 6 ' Derivative Instruments' |
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS | The following table summarizes the OTTI recognized in earnings by asset class: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Fixed maturities: Non-U.S. government $ 3,905 $ 2,456 $ 8,187 $ 2,953 Corporate debt 1,507 1,791 5,306 14,833 5,412 4,247 13,493 17,786 Equity Securities Exchange-traded funds — — — 2,560 — — — 2,560 Total OTTI recognized in earnings $ 5,412 $ 4,247 $ 13,493 $ 20,346 |
ROLL FORWARD OF CREDIT LOSSES FOR WHICH A PORTION OF OTTI RECOGNIZED IN AOCI | The following table provides a roll forward of the credit losses, before income taxes, for which a portion of the OTTI was recognized in AOCI: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Balance at beginning of period $ 1,481 $ 1,513 $ 1,493 $ 1,506 Credit impairments recognized on securities not previously impaired — — — — Additional credit impairments recognized on securities previously impaired 2 — 2 7 Change in timing of future cash flows on securities previously impaired — — — — Intent to sell of securities previously impaired — — — — Securities sold/redeemed/matured — (33 ) (12 ) (33 ) Balance at end of period $ 1,483 $ 1,480 $ 1,483 $ 1,480 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS | The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At September 30, 2017 Assets Fixed maturities U.S. government and agency $ 1,495,423 $ 51,895 $ — $ — $ 1,547,318 Non-U.S. government — 573,640 — — 573,640 Corporate debt — 4,442,951 61,016 — 4,503,967 Agency RMBS — 2,306,822 — — 2,306,822 CMBS — 669,736 — — 669,736 Non-Agency RMBS — 43,817 — — 43,817 ABS — 1,264,855 24,015 — 1,288,870 Municipals — 152,216 — — 152,216 1,495,423 9,505,932 85,031 — 11,086,386 Equity securities Common stocks 14,826 — — — 14,826 Exchange-traded funds 454,194 — — — 454,194 Bond mutual funds — 190,731 — — 190,731 469,020 190,731 — — 659,751 Other investments Hedge funds — — — 399,097 399,097 Direct lending funds — — — 232,389 232,389 Private equity funds — — — 71,896 71,896 Real estate funds — — — 46,691 46,691 Other privately held investments — — 43,398 — 43,398 CLO-Equities — — 36,782 — 36,782 — — 80,180 750,073 830,253 Short-term investments — 15,282 — — 15,282 Other assets Derivative instruments (see Note 6) — 5,859 — — 5,859 Insurance-linked securities — — 24,976 — 24,976 Total Assets $ 1,964,443 $ 9,717,804 $ 190,187 $ 750,073 $ 12,622,507 Liabilities Derivative instruments (see Note 6) $ — $ 1,873 $ 11,844 $ — $ 13,717 Cash settled awards (see Note 9) — 18,369 — — 18,369 Total Liabilities $ — $ 20,242 $ 11,844 $ — $ 32,086 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At December 31, 2016 Assets Fixed maturities U.S. government and agency $ 1,583,106 $ 72,963 $ — $ — $ 1,656,069 Non-U.S. government — 565,834 — — 565,834 Corporate debt — 4,524,868 75,875 — 4,600,743 Agency RMBS — 2,465,135 — — 2,465,135 CMBS — 663,176 3,061 — 666,237 Non-Agency RMBS — 56,921 — — 56,921 ABS — 1,204,750 17,464 — 1,222,214 Municipals — 163,961 — — 163,961 1,583,106 9,717,608 96,400 — 11,397,114 Equity securities Common stocks 78 — — — 78 Exchange-traded funds 514,707 — — — 514,707 Bond mutual funds — 123,959 — — 123,959 514,785 123,959 — — 638,744 Other investments Hedge funds — — — 498,150 498,150 Direct lending funds — — — 134,650 134,650 Private equity funds — — — 81,223 81,223 Real estate funds — — — 13,354 13,354 Other privately held investments — — 42,142 — 42,142 CLO-Equities — — 60,700 — 60,700 — — 102,842 727,377 830,219 Short-term investments — 127,461 — — 127,461 Other assets Derivative instruments (see Note 6) — 14,365 2,532 — 16,897 Insurance-linked securities — — 25,023 — 25,023 Total Assets $ 2,097,891 $ 9,983,393 $ 226,797 $ 727,377 $ 13,035,458 Liabilities Derivative instruments (see Note 6) $ — $ 9,076 $ 6,500 $ — $ 15,576 Cash settled awards (see Note 9) — 48,432 — — 48,432 Total Liabilities $ — $ 57,508 $ 6,500 $ — $ 64,008 |
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS | Except certain fixed maturities and insurance-linked securities priced using broker-dealer quotes (underlying inputs are not available), the following table quantifies the significant unobservable inputs used in estimating fair values at September 30, 2017 for investments classified as Level 3 in the fair value hierarchy. Fair Value Valuation Technique Unobservable Input Range Weighted Average Other investments - CLO-Equities $ 32,141 Discounted cash flow Default rates 3.8% 3.8% Loss severity rate 35.0% 35.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years 4,641 Liquidation value Fair value of collateral 100% 100% Discount margin 0% - 17.8% 2.7% Other investments - Other privately held investments 43,398 Discounted cash flow Discount rate 6.0% - 8.0% 7.5% Derivatives - Other underwriting-related derivatives $ (11,844 ) Discounted cash flow Discount rate 2.3% 2.3% |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, ASSETS | The following tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2017 Fixed maturities Corporate debt $ 68,320 $ — $ (1,208 ) $ (835 ) $ (9 ) $ — $ (2,274 ) $ (2,978 ) $ 61,016 $ — CMBS — — — — — — — — — — ABS 5,999 — (6,001 ) — 10 24,007 — — 24,015 — 74,319 — (7,209 ) (835 ) 1 24,007 (2,274 ) (2,978 ) 85,031 — Other investments Other privately held investments 42,938 — — 460 — — — — 43,398 460 CLO - Equities 47,076 — — 1,402 — — — (11,696 ) 36,782 1,402 90,014 — — 1,862 — — — (11,696 ) 80,180 1,862 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,047 — — (71 ) — — — — 24,976 (71 ) 25,047 — — (71 ) — — — — 24,976 (71 ) Total assets $ 189,380 $ — $ (7,209 ) $ 956 $ 1 $ 24,007 $ (2,274 ) $ (14,674 ) $ 190,187 $ 1,791 Other liabilities Derivative instruments $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Total liabilities $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Nine months ended September 30, 2017 Fixed maturities Corporate debt $ 75,875 $ 1,536 $ (3,112 ) $ (762 ) $ (392 ) $ 19,181 $ (21,475 ) $ (9,835 ) $ 61,016 $ — CMBS 3,061 — (9,418 ) — 17 9,400 — (3,060 ) — — ABS 17,464 — (24,949 ) — 1,493 30,007 — — 24,015 — 96,400 1,536 (37,479 ) (762 ) 1,118 58,588 (21,475 ) (12,895 ) 85,031 — Other investments Other privately held investments 42,142 — — 1,256 — — — — 43,398 1,256 CLO - Equities 60,700 — — 3,930 — — — (27,848 ) 36,782 3,930 102,842 — — 5,186 — — — (27,848 ) 80,180 5,186 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — (47 ) — — — — 24,976 (47 ) 27,555 — — 606 — — — (3,185 ) 24,976 (47 ) Total assets $ 226,797 $ 1,536 $ (37,479 ) $ 5,030 $ 1,118 $ 58,588 $ (21,475 ) $ (43,928 ) $ 190,187 $ 5,139 Other liabilities Derivative instruments $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Total liabilities $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2016 Fixed maturities Corporate debt $ 62,022 $ — $ — $ (9 ) $ 100 $ 7,563 $ — $ (584 ) $ 69,092 $ — CMBS 10,210 — — — (48 ) — — (1,242 ) 8,920 — ABS — — — — — — — — — — 72,232 — — (9 ) 52 7,563 — (1,826 ) 78,012 — Other investments Other privately held investments 41,755 — — (355 ) — 1,500 — — 42,900 (355 ) CLO - Equities 65,883 — — 8,419 — — — (10,519 ) 63,783 8,419 107,638 — — 8,064 — 1,500 — (10,519 ) 106,683 8,064 Other assets Derivative instruments 5 — — 665 — 1,818 — — 2,488 665 Insurance-linked securities 25,025 — — 258 — — — — 25,283 258 25,030 — — 923 — 1,818 — — 27,771 923 Total assets $ 204,900 $ — $ — $ 8,978 $ 52 $ 10,881 $ — $ (12,345 ) $ 212,466 $ 8,987 Other liabilities Derivative instruments $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Total liabilities $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Nine months ended September 30, 2016 Fixed maturities Corporate debt $ 38,518 $ 20,412 $ (1,955 ) $ (988 ) $ 1,188 $ 17,107 $ (4,015 ) $ (1,175 ) $ 69,092 $ — CMBS 10,922 — — — (134 ) — — (1,868 ) 8,920 — ABS — — — — — — — — — — 49,440 20,412 (1,955 ) (988 ) 1,054 17,107 (4,015 ) (3,043 ) 78,012 — Other investments Other privately held investments — — — (1,505 ) — 44,405 — — 42,900 (1,505 ) CLO - Equities 27,257 36,378 — 17,431 — — — (17,283 ) 63,783 17,431 27,257 36,378 — 15,926 — 44,405 — (17,283 ) 106,683 15,926 Other assets Derivative instruments 4,395 — — 3,255 — 3,623 — (8,785 ) 2,488 669 Insurance-linked securities 24,925 — — 358 — — — — 25,283 358 29,320 — — 3,613 — 3,623 — (8,785 ) 27,771 1,027 Total assets $ 106,017 $ 56,790 $ (1,955 ) $ 18,551 $ 1,054 $ 65,135 $ (4,015 ) $ (29,111 ) $ 212,466 $ 16,953 Other liabilities Derivative instruments $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 Total liabilities $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 (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. |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, LIABILITIES | The following tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2017 Fixed maturities Corporate debt $ 68,320 $ — $ (1,208 ) $ (835 ) $ (9 ) $ — $ (2,274 ) $ (2,978 ) $ 61,016 $ — CMBS — — — — — — — — — — ABS 5,999 — (6,001 ) — 10 24,007 — — 24,015 — 74,319 — (7,209 ) (835 ) 1 24,007 (2,274 ) (2,978 ) 85,031 — Other investments Other privately held investments 42,938 — — 460 — — — — 43,398 460 CLO - Equities 47,076 — — 1,402 — — — (11,696 ) 36,782 1,402 90,014 — — 1,862 — — — (11,696 ) 80,180 1,862 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,047 — — (71 ) — — — — 24,976 (71 ) 25,047 — — (71 ) — — — — 24,976 (71 ) Total assets $ 189,380 $ — $ (7,209 ) $ 956 $ 1 $ 24,007 $ (2,274 ) $ (14,674 ) $ 190,187 $ 1,791 Other liabilities Derivative instruments $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Total liabilities $ 12,209 $ — $ — $ (291 ) $ — $ — $ — $ (74 ) $ 11,844 $ (291 ) Nine months ended September 30, 2017 Fixed maturities Corporate debt $ 75,875 $ 1,536 $ (3,112 ) $ (762 ) $ (392 ) $ 19,181 $ (21,475 ) $ (9,835 ) $ 61,016 $ — CMBS 3,061 — (9,418 ) — 17 9,400 — (3,060 ) — — ABS 17,464 — (24,949 ) — 1,493 30,007 — — 24,015 — 96,400 1,536 (37,479 ) (762 ) 1,118 58,588 (21,475 ) (12,895 ) 85,031 — Other investments Other privately held investments 42,142 — — 1,256 — — — — 43,398 1,256 CLO - Equities 60,700 — — 3,930 — — — (27,848 ) 36,782 3,930 102,842 — — 5,186 — — — (27,848 ) 80,180 5,186 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — (47 ) — — — — 24,976 (47 ) 27,555 — — 606 — — — (3,185 ) 24,976 (47 ) Total assets $ 226,797 $ 1,536 $ (37,479 ) $ 5,030 $ 1,118 $ 58,588 $ (21,475 ) $ (43,928 ) $ 190,187 $ 5,139 Other liabilities Derivative instruments $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Total liabilities $ 6,500 $ — $ — $ 9,991 $ — $ 12,135 $ — $ (16,782 ) $ 11,844 $ (291 ) Opening Balance Transfers into Level 3 Transfers out of Level 3 Included in earnings (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/(loss) (3) Three months ended September 30, 2016 Fixed maturities Corporate debt $ 62,022 $ — $ — $ (9 ) $ 100 $ 7,563 $ — $ (584 ) $ 69,092 $ — CMBS 10,210 — — — (48 ) — — (1,242 ) 8,920 — ABS — — — — — — — — — — 72,232 — — (9 ) 52 7,563 — (1,826 ) 78,012 — Other investments Other privately held investments 41,755 — — (355 ) — 1,500 — — 42,900 (355 ) CLO - Equities 65,883 — — 8,419 — — — (10,519 ) 63,783 8,419 107,638 — — 8,064 — 1,500 — (10,519 ) 106,683 8,064 Other assets Derivative instruments 5 — — 665 — 1,818 — — 2,488 665 Insurance-linked securities 25,025 — — 258 — — — — 25,283 258 25,030 — — 923 — 1,818 — — 27,771 923 Total assets $ 204,900 $ — $ — $ 8,978 $ 52 $ 10,881 $ — $ (12,345 ) $ 212,466 $ 8,987 Other liabilities Derivative instruments $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Total liabilities $ 1,978 $ — $ — $ (169 ) $ — $ 6,384 $ — $ (9 ) $ 8,184 $ 335 Nine months ended September 30, 2016 Fixed maturities Corporate debt $ 38,518 $ 20,412 $ (1,955 ) $ (988 ) $ 1,188 $ 17,107 $ (4,015 ) $ (1,175 ) $ 69,092 $ — CMBS 10,922 — — — (134 ) — — (1,868 ) 8,920 — ABS — — — — — — — — — — 49,440 20,412 (1,955 ) (988 ) 1,054 17,107 (4,015 ) (3,043 ) 78,012 — Other investments Other privately held investments — — — (1,505 ) — 44,405 — — 42,900 (1,505 ) CLO - Equities 27,257 36,378 — 17,431 — — — (17,283 ) 63,783 17,431 27,257 36,378 — 15,926 — 44,405 — (17,283 ) 106,683 15,926 Other assets Derivative instruments 4,395 — — 3,255 — 3,623 — (8,785 ) 2,488 669 Insurance-linked securities 24,925 — — 358 — — — — 25,283 358 29,320 — — 3,613 — 3,623 — (8,785 ) 27,771 1,027 Total assets $ 106,017 $ 56,790 $ (1,955 ) $ 18,551 $ 1,054 $ 65,135 $ (4,015 ) $ (29,111 ) $ 212,466 $ 16,953 Other liabilities Derivative instruments $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 Total liabilities $ 10,937 $ — $ — $ 2,445 $ — $ 7,189 $ — $ (12,387 ) $ 8,184 $ 457 (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) | 9 Months Ended |
Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
LOCATION AND AMOUNTS OF DERIVATIVE FAIR VALUES ON THE CONSOLIDATED BALANCE SHEET | 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. None of our derivative instruments are designated as hedges under current accounting guidance. September 30, 2017 December 31, 2016 Derivative Notional Amount Derivative Asset Fair Value (1) Derivative Liability Fair Value (1) Derivative Notional Amount Derivative Asset Fair Value (1) Derivative Liability Fair Value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 147,015 $ — $ 439 $ 195,979 $ 12,331 $ 87 Interest rate swaps 180,000 393 — — — — Relating to underwriting portfolio: Foreign exchange forward contracts 479,818 5,466 1,434 492,899 2,034 8,989 Weather-related contracts — — — 67,957 2,532 6,500 Commodity contracts — — — — — — Other underwriting-related contracts 85,000 — 11,844 — — — Total derivatives $ 5,859 $ 13,717 $ 16,897 $ 15,576 (1) Asset and liability derivatives are classified within other assets and other liabilities in the Consolidated Balance Sheets. |
RECONCILIATION OF GROSS DERIVATIVE ASSETS TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | The table below presents a reconciliation of our gross derivative assets and liabilities to the net amounts presented in the Consolidated Balance Sheets, with the difference being attributable to the impact of master netting agreements. September 30, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 9,682 $ (3,823 ) $ 5,859 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,540 $ (3,823 ) $ 13,717 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the Consolidated Balance Sheets. |
RECONCILIATION OF GROSS DERIVATIVE LIABILITIES TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | The table below presents a reconciliation of our gross derivative assets and liabilities to the net amounts presented in the Consolidated Balance Sheets, with the difference being attributable to the impact of master netting agreements. September 30, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 9,682 $ (3,823 ) $ 5,859 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,540 $ (3,823 ) $ 13,717 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the Consolidated Balance Sheets. |
TOTAL UNREALIZED AND REALIZED GAINS (LOSSES) ON DERIVATIVES NOT DESIGNATED AS HEDGES RECORDED IN EARNINGS | The total unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges were as follows: Location of Gain (Loss) Recognized in Income on Derivative Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Relating to investment portfolio: Foreign exchange forward contracts Net realized investment gains (losses) $ (1,815 ) $ 155 $ (6,534 ) $ 39 Interest rate swaps Net realized investment gains (losses) 520 — (2,661 ) — Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange losses (gains) (12,481 ) (182 ) (26,109 ) (2,958 ) Weather-related contracts Other insurance related income (losses) — 833 (9,629 ) 809 Commodity contracts Other insurance related income (losses) — 1,799 — 1,499 Other underwriting-related contracts Other insurance related income (losses) 514 — 852 — Total $ (13,262 ) $ 2,605 $ (44,081 ) $ (611 ) |
RESERVE FOR LOSSES AND LOSS E27
RESERVE FOR LOSSES AND LOSS EXPENSES (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Insurance Loss Reserves [Abstract] | |
RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES | 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: Nine months ended September 30, 2017 2016 Gross reserve for losses and loss expenses, beginning of period $ 9,697,827 $ 9,646,285 Less reinsurance recoverable on unpaid losses, beginning of period (2,276,109 ) (2,031,309 ) Net reserve for unpaid losses and loss expenses, beginning of period 7,421,718 7,614,976 Net incurred losses and loss expenses related to: Current year 2,591,135 1,887,715 Prior years (143,495 ) (224,131 ) 2,447,640 1,663,584 Net paid losses and loss expenses related to: Current year (328,751 ) (233,124 ) Prior years (1,384,510 ) (1,334,772 ) (1,713,261 ) (1,567,896 ) Foreign exchange and other 333,456 (112,649 ) Net reserve for unpaid losses and loss expenses, end of period 8,489,553 7,598,015 Reinsurance recoverable on unpaid losses, end of period 2,298,022 2,276,792 Gross reserve for losses and loss expenses, end of period $ 10,787,575 $ 9,874,807 |
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT | Prior year reserve development arises from changes to loss and loss expense estimates related to losses incurred in previous calendar years. Such development is summarized by segment in the following table: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Insurance $ 2,603 $ 20,688 $ 30,740 $ 43,181 Reinsurance 45,165 55,331 112,755 180,950 Total $ 47,768 $ 76,019 $ 143,495 $ 224,131 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | The following table presents a comparison of basic and diluted earnings per common share: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Basic earnings (loss) per common share Net income (loss) $ (457,084 ) $ 186,613 $ (341,541 ) $ 364,460 Less: preferred share dividends 10,656 9,969 36,154 29,906 Net income (loss) available to common shareholders (467,740 ) 176,644 (377,695 ) 334,554 Weighted average common shares outstanding - basic (1) 83,305 89,621 84,479 91,852 Basic earnings (loss) per common share $ (5.61 ) $ 1.97 $ (4.47 ) $ 3.64 Diluted earnings (loss) per common share Net income (loss) available to common shareholders $ (467,740 ) $ 176,644 $ (377,695 ) $ 334,554 Weighted average common shares outstanding - basic (1) 83,305 89,621 84,479 91,852 Share-based compensation plans (2) — 730 — 727 Weighted average common shares outstanding - diluted (1) 83,305 90,351 84,479 92,579 Diluted earnings (loss) per common share $ (5.61 ) $ 1.96 $ (4.47 ) $ 3.61 Anti-dilutive shares excluded from the dilutive computation 425 — 712 226 (1) On August 17, 2015 , the Company entered into an Accelerated Share Repurchase (“ASR”) agreement (see ' Note 10 - Shareholders' Equity' for additional detail). The weighted-average number of shares outstanding used in the computation of basic and diluted earnings per share reflects the Company’s receipt of 4,149,378 common shares delivered to the Company on August 20, 2015, and 1,358,380 common shares delivered to the company on January 15, 2016 under the Company's ASR agreement. (2) Due to the net loss incurred in the three and nine months ended September 30, 2017, all the share equivalents were anti-dilutive. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
RECONCILIATIONS OF BEGINNING AND ENDING BALANCE OF NONVESTED RESTRICTED STOCK (INCLUDING RSUS) TO BE SETTLED IN SHARES AND CASH | Share-settled Awards The following table provides a reconciliation of the beginning and ending balance of nonvested share-settled restricted stock units for the nine months ended September 30, 2017 : Performance-based Stock Awards Service-based Stock Awards Number of Restricted Stock Units Weighted Average Grant Date Fair Value (1) Number of Restricted Stock Units Weighted Average Grant Date Fair Value (1) Nonvested restricted stock - beginning of period 283 $ 51.27 1,593 $ 48.88 Granted 87 64.58 525 64.22 Vested (2) (119 ) 49.14 (881 ) 47.37 Forfeited — — (69 ) 54.66 Nonvested restricted stock - end of period 251 $ 56.88 1,168 $ 57.08 (1) Fair value is based on the closing price of our common shares on the grant approval date. (2) Share-settled restricted stock units vested during the nine months ended September 30, 2017 included 313,391 restricted stock units attributable to a grant of 3 year cliff vesting service-based awards made in 2014. Cash-settled awards The following table provides a reconciliation of the beginning and ending balance of nonvested cash-settled restricted stock units for the nine months ended September 30, 2017 : Performance-based Cash Settled Awards Service-based Cash Settled Awards Number of Restricted Stock Units Number of Restricted Stock Units Nonvested restricted stock units - beginning of period 68 1,392 Granted 15 427 Vested (1) (38 ) (755 ) Forfeited — (60 ) Nonvested restricted stock units - end of period 45 1,004 (1) Cash settled restricted stock units vested during the nine months ended September 30, 2017 included 307,556 restricted stock units attributable to a grant of 3 year cliff vesting service-based awards made in 2014. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES ISSUED AND OUTSTANDING | The following table presents common shares issued and outstanding: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Shares issued, balance at beginning of period 176,580 176,575 176,580 176,240 Shares issued — — — 335 Total shares issued at end of period 176,580 176,575 176,580 176,575 Treasury shares, balance at beginning of period (93,377 ) (85,921 ) (90,139 ) (80,174 ) Shares repurchased (51 ) (2,252 ) (4,284 ) (8,499 ) Shares reissued from treasury 5 37 1,000 537 Total treasury shares at end of period (93,423 ) (88,136 ) (93,423 ) (88,136 ) Total shares outstanding 83,157 88,439 83,157 88,439 |
SHARE REPURCHASES | The following table presents share repurchases: Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 In the open market: Total shares (1) 49 2,232 3,932 8,236 Total cost $ 3,237 $ 124,948 $ 261,180 $ 434,948 Average price per share (2) $ 65.80 $ 56.00 $ 66.43 $ 52.81 From employees: (3) Total shares 2 20 352 263 Total cost $ 110 $ 1,088 $ 24,479 $ 14,137 Average price per share (2) $ 64.04 $ 54.13 $ 69.53 $ 53.68 Total shares repurchased: Total shares 51 2,252 4,284 8,499 Total cost $ 3,347 $ 126,036 $ 285,659 $ 449,085 Average price per share (2) $ 65.74 $ 55.98 $ 66.68 $ 52.84 (1) Total shares repurchased in the open market for the nine months ended September 30, 2016 includes 1,358,380 common shares acquired under the accelerated share repurchase program (see below for more detail). (2) Calculated using whole numbers. (3) To satisfy withholding tax liabilities upon the vesting of restricted stock and restricted stock units. |
OTHER COMPREHENSIVE INCOME (Tab
OTHER COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Sep. 30, 2017 | |
Equity [Abstract] | |
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME | The tax effects allocated to each component of other comprehensive income were as follows: 2017 2016 Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Three months ended September 30, Available for sale investments: Unrealized investment gains arising during the period $ 64,431 $ (1,926 ) $ 62,505 $ 40,125 $ (3,789 ) $ 36,336 Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income (15,925 ) 2,639 (13,286 ) (5,050 ) 2,408 (2,642 ) Unrealized investment gains arising during the period, net of reclassification adjustment 48,506 713 49,219 35,075 (1,381 ) 33,694 Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 8,088 — 8,088 1,722 — 1,722 Total other comprehensive income, net of tax $ 56,594 $ 713 $ 57,307 $ 36,797 $ (1,381 ) $ 35,416 Nine months ended September 30, Available for sale investments: Unrealized investment gains arising during the period $ 215,360 $ (8,899 ) $ 206,461 $ 263,235 $ (24,579 ) $ 238,656 Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 8,269 1,900 10,169 40,338 2,282 42,620 Unrealized investment gains arising during the period, net of reclassification adjustment 223,629 (6,999 ) 216,630 303,573 (22,297 ) 281,276 Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 46,824 — 46,824 5,694 — 5,694 Total other comprehensive income, net of tax $ 270,453 $ (6,999 ) $ 263,454 $ 309,267 $ (22,297 ) $ 286,970 |
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | Reclassifications out of AOCI into net income (loss) 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 Three months ended September 30, Nine months ended September 30, 2017 2016 2017 2016 Unrealized investment gains (losses) on available for sale investments Other realized investment gains(losses) $ 21,337 $ 9,297 $ 5,224 $ (19,992 ) OTTI losses (5,412 ) (4,247 ) (13,493 ) (20,346 ) Total before tax 15,925 5,050 (8,269 ) (40,338 ) Income tax expense (2,639 ) (2,408 ) (1,900 ) (2,282 ) Net of tax $ 13,286 $ 2,642 $ (10,169 ) $ (42,620 ) Foreign currency translation adjustment Foreign exchange loss $ — $ — $ (24,149 ) $ — Income tax expense — — — — Net of tax $ — $ — $ (24,149 ) $ — (1) Amounts in parentheses are debits to net income (loss) available to common shareholders. |
BUSINESS COMBINATIONS (Details)
BUSINESS COMBINATIONS (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Business Acquisition [Line Items] | |||||
Bargain purchase gain | $ 0 | $ 0 | $ 15,044 | $ 0 | |
Compagnie Belge d'Assurances Aviation NV/SA [Member] | |||||
Business Acquisition [Line Items] | |||||
Interests acquired | 100.00% | ||||
Investments, fair value | $ 182,000 | ||||
Reserves for losses and loss expenses with a fair value | 79,000 | ||||
Bargain purchase gain | $ 15,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)reportable_segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
Segment Information [Line Items] | |||||
Number of reportable segments | reportable_segment | 2 | ||||
Net premiums earned | $ 1,017,131 | $ 934,415 | $ 2,937,265 | $ 2,783,746 | |
Other insurance related income (losses) | (3,197) | 5,944 | (4,420) | 4,850 | |
Net losses and loss expenses | (1,235,367) | (532,328) | (2,447,640) | (1,663,584) | |
Acquisition costs | (194,724) | (189,810) | (588,879) | (559,570) | |
Expenses | (124,629) | (142,906) | (433,704) | (439,554) | |
Net investment income | 95,169 | 116,923 | 299,899 | 257,818 | |
Net realized investment gains | 14,632 | 5,205 | (14,811) | (40,295) | |
Foreign exchange (losses) gains | (32,510) | 13,795 | (90,093) | 69,781 | |
Interest expense and financing costs | (12,835) | (12,839) | (38,377) | (38,586) | |
Bargain purchase gain | 0 | 0 | 15,044 | 0 | |
Transaction related expenses | 5,970 | 0 | 5,970 | 0 | |
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ (482,300) | $ 198,399 | $ (371,686) | $ 374,606 | |
Net loss and loss expense ratio | 121.50% | 57.00% | 83.30% | 59.80% | |
Acquisition cost ratio | 19.10% | 20.30% | 20.00% | 20.10% | |
General and administrative expense ratio | 12.30% | 15.30% | 14.80% | 15.80% | |
Combined ratio | 152.90% | 92.60% | 118.10% | 95.70% | |
Goodwill and intangible assets | $ 87,206 | $ 85,501 | $ 87,206 | $ 85,501 | $ 85,049 |
Operating Segments [Member] | |||||
Segment Information [Line Items] | |||||
Gross premiums written | 1,185,574 | 959,962 | 4,459,772 | 4,239,558 | |
Net premiums written | 832,743 | 595,431 | 3,297,718 | 3,288,587 | |
Net premiums earned | 1,017,131 | 934,415 | 2,937,265 | 2,783,746 | |
Other insurance related income (losses) | (3,197) | 5,944 | (4,420) | 4,850 | |
Net losses and loss expenses | (1,235,367) | (532,328) | (2,447,640) | (1,663,584) | |
Acquisition costs | (194,724) | (189,810) | (588,879) | (559,570) | |
Expenses | (96,696) | (114,223) | (335,782) | (352,632) | |
Underwriting income (loss) | (512,853) | 103,998 | (439,456) | 212,810 | |
Operating Segments [Member] | Insurance [Member] | |||||
Segment Information [Line Items] | |||||
Gross premiums written | 744,366 | 675,430 | 2,234,395 | 2,112,796 | |
Net premiums written | 500,022 | 433,131 | 1,533,029 | 1,433,058 | |
Net premiums earned | 496,004 | 444,691 | 1,448,270 | 1,322,649 | |
Other insurance related income (losses) | 526 | 39 | 1,077 | (57) | |
Net losses and loss expenses | (628,865) | (273,226) | (1,241,495) | (853,771) | |
Acquisition costs | (74,231) | (61,755) | (223,665) | (184,982) | |
Expenses | (75,038) | (84,588) | (253,308) | (252,652) | |
Underwriting income (loss) | $ (281,604) | $ 25,161 | $ (269,121) | $ 31,187 | |
Net loss and loss expense ratio | 126.80% | 61.40% | 85.70% | 64.60% | |
Acquisition cost ratio | 15.00% | 13.90% | 15.40% | 14.00% | |
General and administrative expense ratio | 15.10% | 19.10% | 17.60% | 19.00% | |
Combined ratio | 156.90% | 94.40% | 118.70% | 97.60% | |
Goodwill and intangible assets | $ 87,206 | $ 85,501 | $ 87,206 | $ 85,501 | |
Operating Segments [Member] | Reinsurance [Member] | |||||
Segment Information [Line Items] | |||||
Gross premiums written | 441,208 | 284,532 | 2,225,377 | 2,126,762 | |
Net premiums written | 332,721 | 162,300 | 1,764,689 | 1,855,529 | |
Net premiums earned | 521,127 | 489,724 | 1,488,995 | 1,461,097 | |
Other insurance related income (losses) | (3,723) | 5,905 | (5,497) | 4,907 | |
Net losses and loss expenses | (606,502) | (259,102) | (1,206,145) | (809,813) | |
Acquisition costs | (120,493) | (128,055) | (365,214) | (374,588) | |
Expenses | (21,658) | (29,635) | (82,474) | (99,980) | |
Underwriting income (loss) | $ (231,249) | $ 78,837 | $ (170,335) | $ 181,623 | |
Net loss and loss expense ratio | 116.40% | 52.90% | 81.00% | 55.40% | |
Acquisition cost ratio | 23.10% | 26.10% | 24.50% | 25.60% | |
General and administrative expense ratio | 4.20% | 6.10% | 5.60% | 6.90% | |
Combined ratio | 143.70% | 85.10% | 111.10% | 87.90% | |
Goodwill and intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | |
Corporate, Non-Segment [Member] | |||||
Segment Information [Line Items] | |||||
Expenses | (27,933) | (28,683) | (97,922) | (86,922) | |
Significant Reconciling Items [Member] | |||||
Segment Information [Line Items] | |||||
Net investment income | 95,169 | 116,923 | 299,899 | 257,818 | |
Net realized investment gains | 14,632 | 5,205 | (14,811) | (40,295) | |
Foreign exchange (losses) gains | (32,510) | 13,795 | (90,093) | 69,781 | |
Interest expense and financing costs | (12,835) | (12,839) | (38,377) | (38,586) | |
Bargain purchase gain | 15,044 | 0 | |||
Transaction related expenses | $ 5,970 | $ 0 | $ 5,970 | $ 0 |
INVESTMENTS (Details)
INVESTMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 11,043,394 | $ 11,523,316 |
Gross Unrealized Gains (fixed maturities) | 108,011 | 70,993 |
Gross Unrealized Losses (fixed maturities) | (65,019) | (197,195) |
Fair Value (fixed maturities) | 11,086,386 | 11,397,114 |
Non-credit OTTI in AOCI | (867) | (823) |
Cost | 563,110 | 597,366 |
Gross Unrealized Gains (equities) | 98,883 | 53,446 |
Gross Unrealized Losses (equities) | (2,242) | (12,068) |
Fair Value (equities) | 659,751 | 638,744 |
US Government and Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,556,963 | 1,681,425 |
Gross Unrealized Gains (fixed maturities) | 2,729 | 1,648 |
Gross Unrealized Losses (fixed maturities) | (12,374) | (27,004) |
Fair Value (fixed maturities) | 1,547,318 | 1,656,069 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-US Government [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 568,223 | 613,282 |
Gross Unrealized Gains (fixed maturities) | 13,961 | 2,206 |
Gross Unrealized Losses (fixed maturities) | (8,544) | (49,654) |
Fair Value (fixed maturities) | 573,640 | 565,834 |
Non-credit OTTI in AOCI | 0 | 0 |
Corporate Debt [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,460,337 | 4,633,834 |
Gross Unrealized Gains (fixed maturities) | 65,230 | 42,049 |
Gross Unrealized Losses (fixed maturities) | (21,600) | (75,140) |
Fair Value (fixed maturities) | 4,503,967 | 4,600,743 |
Non-credit OTTI in AOCI | 0 | 0 |
Agency RMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 2,313,096 | 2,487,837 |
Gross Unrealized Gains (fixed maturities) | 12,218 | 13,275 |
Gross Unrealized Losses (fixed maturities) | (18,492) | (35,977) |
Fair Value (fixed maturities) | 2,306,822 | 2,465,135 |
Non-credit OTTI in AOCI | 0 | 0 |
CMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 665,520 | 664,368 |
Gross Unrealized Gains (fixed maturities) | 5,954 | 5,433 |
Gross Unrealized Losses (fixed maturities) | (1,738) | (3,564) |
Fair Value (fixed maturities) | 669,736 | 666,237 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-Agency RMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 42,653 | 57,316 |
Gross Unrealized Gains (fixed maturities) | 1,968 | 1,628 |
Gross Unrealized Losses (fixed maturities) | (804) | (2,023) |
Fair Value (fixed maturities) | 43,817 | 56,921 |
Non-credit OTTI in AOCI | (867) | (823) |
ABS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,285,080 | 1,221,813 |
Gross Unrealized Gains (fixed maturities) | 4,572 | 3,244 |
Gross Unrealized Losses (fixed maturities) | (782) | (2,843) |
Fair Value (fixed maturities) | 1,288,870 | 1,222,214 |
Non-credit OTTI in AOCI | 0 | 0 |
Municipals [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 151,522 | 163,441 |
Gross Unrealized Gains (fixed maturities) | 1,379 | 1,510 |
Gross Unrealized Losses (fixed maturities) | (685) | (990) |
Fair Value (fixed maturities) | 152,216 | 163,961 |
Non-credit OTTI in AOCI | 0 | 0 |
Common Stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 13,980 | 379 |
Gross Unrealized Gains (equities) | 1,415 | 41 |
Gross Unrealized Losses (equities) | (569) | (342) |
Fair Value (equities) | 14,826 | 78 |
Exchange-Traded Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 365,412 | 463,936 |
Gross Unrealized Gains (equities) | 88,782 | 53,405 |
Gross Unrealized Losses (equities) | 0 | (2,634) |
Fair Value (equities) | 454,194 | 514,707 |
Bond Mutual Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Cost | 183,718 | 133,051 |
Gross Unrealized Gains (equities) | 8,686 | 0 |
Gross Unrealized Losses (equities) | (1,673) | (9,092) |
Fair Value (equities) | $ 190,731 | $ 123,959 |
INVESTMENTS (Details 2)
INVESTMENTS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less (amortized cost) | $ 434,283 | $ 313,287 |
Due after one year through five years (amortized cost) | 3,834,452 | 3,906,190 |
Due after five years through ten years (amortized cost) | 2,258,136 | 2,546,299 |
Due after ten years (amortized cost) | 210,174 | 326,206 |
Total fixed maturities with a single maturity date (amortized cost) | 6,737,045 | 7,091,982 |
Total (amortized cost) | 11,043,394 | 11,523,316 |
Due in one year or less (fair value) | 432,662 | 305,972 |
Due after one year through five years (fair value) | 3,850,174 | 3,850,149 |
Due after five years through ten years (fair value) | 2,276,190 | 2,510,975 |
Due after ten years (fair value) | 218,115 | 319,511 |
Total fixed maturities with a single maturity date (fair value) | 6,777,141 | 6,986,607 |
Fair Value (fixed maturities) | $ 11,086,386 | $ 11,397,114 |
Due in one year or less (% of total fair value) | 4.00% | 2.80% |
Due after one year through five years (% of total fair value) | 34.70% | 33.80% |
Due after five years through ten years (% of total fair value) | 20.50% | 22.00% |
Due after ten years (% of total fair value) | 2.00% | 2.80% |
Fixed maturities with a single maturity date (% of total fair value) | 61.20% | 61.40% |
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) | $ 2,313,096 | $ 2,487,837 |
Total (amortized cost) | 2,313,096 | 2,487,837 |
Fixed maturities without a single maturity date (fair value) | 2,306,822 | 2,465,135 |
Fair Value (fixed maturities) | $ 2,306,822 | $ 2,465,135 |
Fixed maturities without a single maturity date (% of total fair value) | 20.80% | 21.60% |
CMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 665,520 | $ 664,368 |
Total (amortized cost) | 665,520 | 664,368 |
Fixed maturities without a single maturity date (fair value) | 669,736 | 666,237 |
Fair Value (fixed maturities) | $ 669,736 | $ 666,237 |
Fixed maturities without a single maturity date (% of total fair value) | 6.00% | 5.80% |
Non-Agency RMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 42,653 | $ 57,316 |
Total (amortized cost) | 42,653 | 57,316 |
Fixed maturities without a single maturity date (fair value) | 43,817 | 56,921 |
Fair Value (fixed maturities) | $ 43,817 | $ 56,921 |
Fixed maturities without a single maturity date (% of total fair value) | 0.40% | 0.50% |
ABS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 1,285,080 | $ 1,221,813 |
Total (amortized cost) | 1,285,080 | 1,221,813 |
Fixed maturities without a single maturity date (fair value) | 1,288,870 | 1,222,214 |
Fair Value (fixed maturities) | $ 1,288,870 | $ 1,222,214 |
Fixed maturities without a single maturity date (% of total fair value) | 11.60% | 10.70% |
INVESTMENTS (Details 3)
INVESTMENTS (Details 3) $ in Thousands | Sep. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Fixed Maturities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | $ 1,048,555 | $ 971,489 |
Unrealized Losses - 12 months or greater | (35,602) | (77,645) |
Fair Value - Less than 12 months | 4,075,646 | 5,833,715 |
Unrealized Losses - Less than 12 months | (29,417) | (119,550) |
Total Fair Value of Securities in Unrealized Loss Position | 5,124,201 | 6,805,204 |
Total Unrealized Losses | $ (65,019) | $ (197,195) |
Number of Available For Sale Securities In Unrealized Loss Positions | security | 1,625 | 1,881 |
Number of Available For Sale Securities in Unrealized Loss Positions for 12 Months or Greater | security | 403 | 330 |
Fixed Maturities [Member] | Below Investment Grade or Not Rated [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Unrealized Losses | $ (6,000) | $ (15,000) |
US Government and Agency [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 161,425 | 54,051 |
Unrealized Losses - 12 months or greater | (5,641) | (2,729) |
Fair Value - Less than 12 months | 1,207,943 | 1,340,719 |
Unrealized Losses - Less than 12 months | (6,733) | (24,275) |
Total Fair Value of Securities in Unrealized Loss Position | 1,369,368 | 1,394,770 |
Total Unrealized Losses | (12,374) | (27,004) |
Non-US Government [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 61,872 | 149,360 |
Unrealized Losses - 12 months or greater | (7,354) | (38,683) |
Fair Value - Less than 12 months | 163,477 | 283,796 |
Unrealized Losses - Less than 12 months | (1,190) | (10,971) |
Total Fair Value of Securities in Unrealized Loss Position | 225,349 | 433,156 |
Total Unrealized Losses | (8,544) | (49,654) |
Corporate Debt [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 412,832 | 230,218 |
Unrealized Losses - 12 months or greater | (12,553) | (30,652) |
Fair Value - Less than 12 months | 990,308 | 1,948,976 |
Unrealized Losses - Less than 12 months | (9,047) | (44,488) |
Total Fair Value of Securities in Unrealized Loss Position | 1,403,140 | 2,179,194 |
Total Unrealized Losses | (21,600) | (75,140) |
Agency RMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 350,010 | 76,694 |
Unrealized Losses - 12 months or greater | (8,130) | (1,101) |
Fair Value - Less than 12 months | 1,126,956 | 1,724,170 |
Unrealized Losses - Less than 12 months | (10,362) | (34,876) |
Total Fair Value of Securities in Unrealized Loss Position | 1,476,966 | 1,800,864 |
Total Unrealized Losses | (18,492) | (35,977) |
CMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 13,919 | 84,640 |
Unrealized Losses - 12 months or greater | (238) | (749) |
Fair Value - Less than 12 months | 221,941 | 193,499 |
Unrealized Losses - Less than 12 months | (1,500) | (2,815) |
Total Fair Value of Securities in Unrealized Loss Position | 235,860 | 278,139 |
Total Unrealized Losses | (1,738) | (3,564) |
Non-Agency RMBS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 8,342 | 13,642 |
Unrealized Losses - 12 months or greater | (803) | (1,752) |
Fair Value - Less than 12 months | 222 | 7,194 |
Unrealized Losses - Less than 12 months | (1) | (271) |
Total Fair Value of Securities in Unrealized Loss Position | 8,564 | 20,836 |
Total Unrealized Losses | (804) | (2,023) |
ABS [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 16,816 | 362,110 |
Unrealized Losses - 12 months or greater | (409) | (1,950) |
Fair Value - Less than 12 months | 323,886 | 266,763 |
Unrealized Losses - Less than 12 months | (373) | (893) |
Total Fair Value of Securities in Unrealized Loss Position | 340,702 | 628,873 |
Total Unrealized Losses | (782) | (2,843) |
Municipals [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 23,339 | 774 |
Unrealized Losses - 12 months or greater | (474) | (29) |
Fair Value - Less than 12 months | 40,913 | 68,598 |
Unrealized Losses - Less than 12 months | (211) | (961) |
Total Fair Value of Securities in Unrealized Loss Position | 64,252 | 69,372 |
Total Unrealized Losses | (685) | (990) |
Equity Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 33 | 4,959 |
Unrealized Losses - 12 months or greater | (135) | (461) |
Fair Value - Less than 12 months | 27,084 | 211,751 |
Unrealized Losses - Less than 12 months | (2,107) | (11,607) |
Total Fair Value of Securities in Unrealized Loss Position | 27,117 | 216,710 |
Total Unrealized Losses | $ (2,242) | $ (12,068) |
Number of Available For Sale Securities In Unrealized Loss Positions | security | 31 | 23 |
Number of Available For Sale Securities in Unrealized Loss Positions for 12 Months or Greater | security | 2 | 3 |
Common Stock [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | $ 33 | $ 0 |
Unrealized Losses - 12 months or greater | (135) | 0 |
Fair Value - Less than 12 months | 2,939 | 37 |
Unrealized Losses - Less than 12 months | (434) | (342) |
Total Fair Value of Securities in Unrealized Loss Position | 2,972 | 37 |
Total Unrealized Losses | (569) | (342) |
Exchange-Traded Funds [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 0 | 4,959 |
Unrealized Losses - 12 months or greater | 0 | (461) |
Fair Value - Less than 12 months | 0 | 87,760 |
Unrealized Losses - Less than 12 months | 0 | (2,173) |
Total Fair Value of Securities in Unrealized Loss Position | 0 | 92,719 |
Total Unrealized Losses | 0 | (2,634) |
Bond Mutual Funds [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 | 24,145 | 123,954 |
Unrealized Losses - Less than 12 months | (1,673) | (9,092) |
Total Fair Value of Securities in Unrealized Loss Position | 24,145 | 123,954 |
Total Unrealized Losses | $ (1,673) | $ (9,092) |
INVESTMENTS (Details 4)
INVESTMENTS (Details 4) - USD ($) | Sep. 30, 2017 | Dec. 31, 2016 |
Mortgage Loans held-for-investment, net [Abstract] | ||
Commercial | $ 360,381,000 | $ 349,969,000 |
Commercial, Percent | 100.00% | 100.00% |
Valuation allowances | $ 0 | $ 0 |
Valuation allowance, Percent | 0.00% | 0.00% |
Total Mortgage Loans held-for-investment | $ 360,381,000 | $ 349,969,000 |
Total Mortgage Loans held-for investment, Percent | 100.00% | 100.00% |
Weighted average debt service coverage ratios | 3 | |
Weighted average loan-to-value ratios (less than) | 60.00% | |
Credit losses on commercial mortgage loans | $ 0 |
INVESTMENTS (Details 5)
INVESTMENTS (Details 5) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Investments [Line Items] | |||
Other investments, at fair value | $ 830,253 | $ 830,219 | |
Percentage of total fair value | 100.00% | 100.00% | |
Hedge Funds [Member] | Lockup Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Fair value of other investments subject to redemption restrictions | $ 64,000 | $ 60,000 | |
Percentage of fair value of other investments subject to redemption restrictions | 16.00% | 12.00% | |
Long/short equity funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 64,067 | $ 118,619 | |
Percentage of total fair value | 8.00% | 14.00% | |
Redemption notice period | 60 days | ||
Long/short equity funds [Member] | Minimum [Member] | |||
Other Investments [Line Items] | |||
Redemption notice period | 45 days | ||
Long/short equity funds [Member] | Maximum [Member] | |||
Other Investments [Line Items] | |||
Redemption notice period | 60 days | ||
Multi-strategy funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 286,452 | $ 285,992 | |
Percentage of total fair value | 35.00% | 34.00% | |
Multi-strategy funds [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 16,000 | $ 12,000 | |
Multi-strategy funds [Member] | Minimum [Member] | |||
Other Investments [Line Items] | |||
Redemption notice period | 60 days | 60 days | |
Multi-strategy funds [Member] | Minimum [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Optional extension of investment term | 2 years | ||
Multi-strategy funds [Member] | Maximum [Member] | |||
Other Investments [Line Items] | |||
Redemption notice period | 95 days | 95 days | |
Event driven funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 48,578 | $ 93,539 | |
Percentage of total fair value | 6.00% | 11.00% | |
Redemption notice period | 45 days | 45 days | |
Direct Lending Funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 232,389 | $ 134,650 | |
Percentage of total fair value | 28.00% | 16.00% | |
Direct Lending Funds [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 142,000 | $ 176,000 | |
Optional extension of investment term | 3 years | ||
Direct Lending Funds [Member] | Minimum [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Investment term | 5 years | ||
Direct Lending Funds [Member] | Maximum [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Investment term | 10 years | ||
Private Equity Funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 71,896 | $ 81,223 | |
Percentage of total fair value | 9.00% | 10.00% | |
Unfunded commitments related to other investments | $ 21,000 | $ 24,000 | |
Investment term | 10 years | ||
Real Estate Funds [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 46,691 | $ 13,354 | |
Percentage of total fair value | 6.00% | 2.00% | |
Real Estate Funds [Member] | Other Redemption Restriction [Member] | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 120,000 | $ 140,000 | |
Investment term | 7 years | ||
CLO-Equities [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 36,782 | $ 60,700 | |
Percentage of total fair value | 3.00% | 8.00% | |
Other Privately Held Investments [Member] | |||
Other Investments [Line Items] | |||
Other investments, at fair value | $ 43,398 | $ 42,142 | |
Percentage of total fair value | 5.00% | 5.00% | |
Bank Revolver Opportunity Funds [Member] | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 50,000 | ||
Investment term | 7 years | ||
Optional extension of investment term | 2 years |
INVESTMENTS (Details 6)
INVESTMENTS (Details 6) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | $ 1,000,000 | $ 103,548,000 | |
Equity method investments | 108,597,000 | $ 116,000,000 | |
Harrington Reinsurance Holdings Limited [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | $ 108,000,000 | ||
Equity method investment, ownership percentage | 19.00% | ||
Equity method investment, difference between carrying amount and underlying equity | $ 5,000,000 | ||
Other Equity Method Investments [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity Method Investment, Other than Temporary Impairment | 9,000,000 | ||
Equity method investments | $ 0 |
INVESTMENTS (Details 7)
INVESTMENTS (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 102,278 | $ 125,004 | $ 321,031 | $ 281,498 |
Investment expenses | (7,109) | (8,081) | (21,132) | (23,680) |
Net investment income | 95,169 | 116,923 | 299,899 | 257,818 |
Fixed Maturities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 74,978 | 75,827 | 230,603 | 229,423 |
Other Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 17,373 | 38,248 | 59,973 | 25,770 |
Equity Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3,223 | 4,633 | 11,048 | 12,843 |
Mortgage loans [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 2,895 | 2,191 | 7,970 | 5,683 |
Cash And Cash Equivalents [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3,111 | 3,768 | 9,640 | 7,071 |
Short-term Investments [Member] | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 698 | $ 337 | $ 1,797 | $ 708 |
INVESTMENTS (Details 8)
INVESTMENTS (Details 8) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Schedule Of Available For Sale Securities [Line Items] | ||||
Gross realized gains | $ 37,277 | $ 31,781 | $ 91,318 | $ 86,637 |
Gross realized losses | (15,938) | (22,484) | (83,441) | (106,625) |
Net OTTI recognized in earnings | (5,412) | (4,247) | (13,493) | (20,346) |
Change in fair value of investment derivatives | (1,295) | 155 | (9,195) | 39 |
Total net realized investment gains (losses) | 14,632 | 5,205 | (14,811) | (40,295) |
Fixed Maturities And Short-Term Investments [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Gross realized gains | 19,297 | 26,211 | 57,524 | 67,833 |
Gross realized losses | (15,893) | (21,908) | (83,183) | (90,702) |
Equity Securities [Member] | ||||
Schedule Of Available For Sale Securities [Line Items] | ||||
Gross realized gains | 17,980 | 5,570 | 33,794 | 18,804 |
Gross realized losses | $ (45) | $ (576) | $ (258) | $ (15,923) |
INVESTMENTS (Details 9)
INVESTMENTS (Details 9) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | $ 5,412 | $ 4,247 | $ 13,493 | $ 20,346 |
Fixed Maturities [Member] | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | 5,412 | 4,247 | 13,493 | 17,786 |
Non-US Government [Member] | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | 3,905 | 2,456 | 8,187 | 2,953 |
Corporate Debt [Member] | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | 1,507 | 1,791 | 5,306 | 14,833 |
Equity Securities [Member] | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | 0 | 0 | 0 | 2,560 |
Exchange-Traded Funds [Member] | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in earnings | $ 0 | $ 0 | $ 0 | $ 2,560 |
INVESTMENTS (Details 10)
INVESTMENTS (Details 10) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Credit Losses For Which a Portion of OTTI Was Recognized in AOCI [Roll Forward] | ||||
Balance at beginning of period | $ 1,481 | $ 1,513 | $ 1,493 | $ 1,506 |
Credit impairments recognized on securities not previously impaired | 0 | 0 | 0 | 0 |
Additional credit impairments recognized on securities previously impaired | 2 | 0 | 2 | 7 |
Change in timing of future cash flows on securities previously impaired | 0 | 0 | 0 | 0 |
Intent to sell of securities previously impaired | 0 | 0 | 0 | 0 |
Securities sold/redeemed/matured | 0 | (33) | (12) | (33) |
Balance at end of period | $ 1,483 | $ 1,480 | $ 1,483 | $ 1,480 |
INVESTMENTS (Details 11)
INVESTMENTS (Details 11) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 34 | $ 176 |
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 ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 11,086,386 | $ 11,397,114 |
Equity securities | 659,751 | 638,744 |
Other investments | 830,253 | 830,219 |
Short-term investments | 15,282 | 127,461 |
Derivative instruments | 5,859 | 16,897 |
Derivative instruments | 13,717 | 15,576 |
Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 11,086,386 | 11,397,114 |
Equity securities | 659,751 | 638,744 |
Other investments | 830,253 | 830,219 |
Short-term investments | 15,282 | 127,461 |
Derivative instruments | 5,859 | 16,897 |
Insurance-linked securities | 24,976 | 25,023 |
Total Assets | 12,622,507 | 13,035,458 |
Derivative instruments | 13,717 | 15,576 |
Cash settled awards | 18,369 | 48,432 |
Total Liabilities | 32,086 | 64,008 |
US Government and Agency [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,547,318 | 1,656,069 |
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 | 1,547,318 | 1,656,069 |
Non-US Government [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 573,640 | 565,834 |
Non-US Government [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 573,640 | 565,834 |
Corporate Debt [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,503,967 | 4,600,743 |
Corporate Debt [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,503,967 | 4,600,743 |
Agency RMBS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,306,822 | 2,465,135 |
Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,306,822 | 2,465,135 |
CMBS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 669,736 | 666,237 |
CMBS [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 669,736 | 666,237 |
Non-Agency RMBS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 43,817 | 56,921 |
Non-Agency RMBS [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 43,817 | 56,921 |
ABS [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,288,870 | 1,222,214 |
ABS [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,288,870 | 1,222,214 |
Municipals [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 152,216 | 163,961 |
Municipals [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 152,216 | 163,961 |
Common Stock [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 14,826 | 78 |
Common Stock [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 14,826 | 78 |
Exchange-Traded Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 454,194 | 514,707 |
Exchange-Traded Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 454,194 | 514,707 |
Bond Mutual Funds [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 190,731 | 123,959 |
Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 190,731 | 123,959 |
Hedge Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 399,097 | 498,150 |
Direct Lending Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 232,389 | 134,650 |
Private Equity Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 71,896 | 81,223 |
Real Estate Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 46,691 | 13,354 |
Other Privately Held Investments [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 43,398 | 42,142 |
CLO-Equities [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 36,782 | 60,700 |
Fair value based on NAV practical expedient [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Equity securities | 0 | 0 |
Other investments | 750,073 | 727,377 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 0 | 0 |
Total Assets | 750,073 | 727,377 |
Derivative instruments | 0 | 0 |
Cash settled awards | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [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 |
Fair value based on NAV practical expedient [Member] | 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 |
Fair value based on NAV practical expedient [Member] | Hedge Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 399,097 | 498,150 |
Fair value based on NAV practical expedient [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 | 232,389 | 134,650 |
Fair value based on NAV practical expedient [Member] | Private Equity Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 71,896 | 81,223 |
Fair value based on NAV practical expedient [Member] | Real Estate Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 46,691 | 13,354 |
Fair value based on NAV practical expedient [Member] | Other Privately Held Investments [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair value based on NAV practical expedient [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 1 [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,495,423 | 1,583,106 |
Equity securities | 469,020 | 514,785 |
Other investments | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 0 | 0 |
Total Assets | 1,964,443 | 2,097,891 |
Derivative instruments | 0 | 0 |
Cash settled awards | 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 | 1,495,423 | 1,583,106 |
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 | 14,826 | 78 |
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 | 454,194 | 514,707 |
Level 1 [Member] | 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] | Private Equity 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] | Real Estate 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] | Other Privately Held Investments [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 | 9,505,932 | 9,717,608 |
Equity securities | 190,731 | 123,959 |
Other investments | 0 | 0 |
Short-term investments | 15,282 | 127,461 |
Derivative instruments | 5,859 | 14,365 |
Insurance-linked securities | 0 | 0 |
Total Assets | 9,717,804 | 9,983,393 |
Derivative instruments | 1,873 | 9,076 |
Cash settled awards | 18,369 | 48,432 |
Total Liabilities | 20,242 | 57,508 |
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 | 51,895 | 72,963 |
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 | 573,640 | 565,834 |
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 | 4,442,951 | 4,524,868 |
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 | 2,306,822 | 2,465,135 |
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 | 669,736 | 663,176 |
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 | 43,817 | 56,921 |
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 | 1,264,855 | 1,204,750 |
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 | 152,216 | 163,961 |
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] | Bond Mutual Funds [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 190,731 | 123,959 |
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 | 0 | 0 |
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] | Private Equity 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] | Real Estate 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] | Other Privately Held Investments [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 | 85,031 | 96,400 |
Equity securities | 0 | 0 |
Other investments | 80,180 | 102,842 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 2,532 |
Insurance-linked securities | 24,976 | 25,023 |
Total Assets | 190,187 | 226,797 |
Derivative instruments | 11,844 | 6,500 |
Cash settled awards | 0 | 0 |
Total Liabilities | 11,844 | 6,500 |
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 | 61,016 | 75,875 |
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 | 0 | 3,061 |
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 | 0 |
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 | 24,015 | 17,464 |
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] | 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 | 0 | 0 |
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 | 0 | 0 |
Level 3 [Member] | Private Equity 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 3 [Member] | Real Estate 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 3 [Member] | Other Privately Held Investments [Member] | Fair Value Measurements Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 43,398 | 42,142 |
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 | $ 36,782 | $ 60,700 |
FAIR VALUE MEASUREMENTS (Deta46
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2017 | Dec. 31, 2016 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 830,253 | $ 830,219 |
Discounted cash flow [Member] | Level 3 [Member] | Other Underwriting-related Derivatives [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net derivative assets | $ (11,844) | |
Discount rate | 2.30% | |
Discounted cash flow [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 32,141 | |
Default rates | 3.80% | |
Loss severity rate | 35.00% | |
Collateral spreads | 3.00% | |
Estimated maturity dates | 7 years | |
Discounted cash flow [Member] | Level 3 [Member] | Other Privately Held Investments [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 43,398 | |
Liquidation Value Valuation Technique [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 4,641 | |
Fair value of collateral | 100.00% | |
Minimum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Other Privately Held Investments [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.00% | |
Minimum [Member] | Liquidation Value Valuation Technique [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount margin | 0.00% | |
Maximum [Member] | Discounted cash flow [Member] | Level 3 [Member] | Other Privately Held Investments [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 8.00% | |
Maximum [Member] | Liquidation Value Valuation Technique [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount margin | 17.80% | |
Weighted Average [Member] | Discounted cash flow [Member] | Level 3 [Member] | Other Underwriting-related Derivatives [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.30% | |
Weighted Average [Member] | Discounted cash flow [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rates | 3.80% | |
Loss severity rate | 35.00% | |
Collateral spreads | 3.00% | |
Estimated maturity dates | 7 years | |
Weighted Average [Member] | Discounted cash flow [Member] | Level 3 [Member] | Other Privately Held Investments [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 7.50% | |
Weighted Average [Member] | Liquidation Value Valuation Technique [Member] | Level 3 [Member] | Other Investments - CLO-Equities [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of collateral | 100.00% | |
Discount margin | 2.70% |
FAIR VALUE MEASUREMENTS (Deta47
FAIR VALUE MEASUREMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Total Liabilities [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Liabilities) | $ 12,209 | $ 1,978 | $ 6,500 | $ 10,937 |
Transfers into Level 3 (Liabilities) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Liabilities) | 0 | 0 | 0 | 0 |
Included in earnings (Liabilities) | (291) | (169) | 9,991 | 2,445 |
Included in OCI (Liabilities) | 0 | 0 | 0 | 0 |
Purchases (Liabilities) | 0 | 6,384 | 12,135 | 7,189 |
Sales (Liabilities) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Liabilities) | (74) | (9) | (16,782) | (12,387) |
Closing Balance (Liabilities) | 11,844 | 8,184 | 11,844 | 8,184 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Liabilities) | (291) | 335 | (291) | 457 |
Total Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 189,380 | 204,900 | 226,797 | 106,017 |
Transfers into Level 3 (Assets) | 0 | 0 | 1,536 | 56,790 |
Transfers out of Level 3 (Assets) | (7,209) | 0 | (37,479) | (1,955) |
Included in earnings (Assets) | 956 | 8,978 | 5,030 | 18,551 |
Included in OCI (Assets) | 1 | 52 | 1,118 | 1,054 |
Purchases (Assets) | 24,007 | 10,881 | 58,588 | 65,135 |
Sales (Assets) | (2,274) | 0 | (21,475) | (4,015) |
Settlements/ Distributions (Assets) | (14,674) | (12,345) | (43,928) | (29,111) |
Closing Balance (Assets) | 190,187 | 212,466 | 190,187 | 212,466 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 1,791 | 8,987 | 5,139 | 16,953 |
Fixed Maturities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 74,319 | 72,232 | 96,400 | 49,440 |
Transfers into Level 3 (Assets) | 0 | 0 | 1,536 | 20,412 |
Transfers out of Level 3 (Assets) | (7,209) | 0 | (37,479) | (1,955) |
Included in earnings (Assets) | (835) | (9) | (762) | (988) |
Included in OCI (Assets) | 1 | 52 | 1,118 | 1,054 |
Purchases (Assets) | 24,007 | 7,563 | 58,588 | 17,107 |
Sales (Assets) | (2,274) | 0 | (21,475) | (4,015) |
Settlements/ Distributions (Assets) | (2,978) | (1,826) | (12,895) | (3,043) |
Closing Balance (Assets) | 85,031 | 78,012 | 85,031 | 78,012 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 0 | 0 | 0 | 0 |
Other Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 90,014 | 107,638 | 102,842 | 27,257 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 36,378 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | 1,862 | 8,064 | 5,186 | 15,926 |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 1,500 | 0 | 44,405 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | (11,696) | (10,519) | (27,848) | (17,283) |
Closing Balance (Assets) | 80,180 | 106,683 | 80,180 | 106,683 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 1,862 | 8,064 | 5,186 | 15,926 |
Other Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 25,047 | 25,030 | 27,555 | 29,320 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | (71) | 923 | 606 | 3,613 |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 1,818 | 0 | 3,623 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | 0 | (3,185) | (8,785) |
Closing Balance (Assets) | 24,976 | 27,771 | 24,976 | 27,771 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | (71) | 923 | (47) | 1,027 |
Corporate Debt [Member] | Fixed Maturities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 68,320 | 62,022 | 75,875 | 38,518 |
Transfers into Level 3 (Assets) | 0 | 0 | 1,536 | 20,412 |
Transfers out of Level 3 (Assets) | (1,208) | 0 | (3,112) | (1,955) |
Included in earnings (Assets) | (835) | (9) | (762) | (988) |
Included in OCI (Assets) | (9) | 100 | (392) | 1,188 |
Purchases (Assets) | 0 | 7,563 | 19,181 | 17,107 |
Sales (Assets) | (2,274) | 0 | (21,475) | (4,015) |
Settlements/ Distributions (Assets) | (2,978) | (584) | (9,835) | (1,175) |
Closing Balance (Assets) | 61,016 | 69,092 | 61,016 | 69,092 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 0 | 0 | 0 | 0 |
CMBS [Member] | Fixed Maturities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 0 | 10,210 | 3,061 | 10,922 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | 0 | 0 | (9,418) | 0 |
Included in earnings (Assets) | 0 | 0 | 0 | 0 |
Included in OCI (Assets) | 0 | (48) | 17 | (134) |
Purchases (Assets) | 0 | 0 | 9,400 | 0 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | (1,242) | (3,060) | (1,868) |
Closing Balance (Assets) | 0 | 8,920 | 0 | 8,920 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 0 | 0 | 0 | 0 |
ABS [Member] | Fixed Maturities [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 5,999 | 0 | 17,464 | 0 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | (6,001) | 0 | (24,949) | 0 |
Included in earnings (Assets) | 0 | 0 | 0 | 0 |
Included in OCI (Assets) | 10 | 0 | 1,493 | 0 |
Purchases (Assets) | 24,007 | 0 | 30,007 | 0 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | 0 | 0 | 0 |
Closing Balance (Assets) | 24,015 | 0 | 24,015 | 0 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 0 | 0 | 0 | 0 |
Other Privately Held Investments [Member] | Other Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 42,938 | 41,755 | 42,142 | 0 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | 460 | (355) | 1,256 | (1,505) |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 1,500 | 0 | 44,405 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | 0 | 0 | 0 |
Closing Balance (Assets) | 43,398 | 42,900 | 43,398 | 42,900 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 460 | (355) | 1,256 | (1,505) |
CLO-Equities [Member] | Other Investments [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 47,076 | 65,883 | 60,700 | 27,257 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 36,378 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | 1,402 | 8,419 | 3,930 | 17,431 |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 0 | 0 | 0 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | (11,696) | (10,519) | (27,848) | (17,283) |
Closing Balance (Assets) | 36,782 | 63,783 | 36,782 | 63,783 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 1,402 | 8,419 | 3,930 | 17,431 |
Derivative [Member] | Other Liabilities [Member] | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Liabilities) | 12,209 | 1,978 | 6,500 | 10,937 |
Transfers into Level 3 (Liabilities) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Liabilities) | 0 | 0 | 0 | 0 |
Included in earnings (Liabilities) | (291) | (169) | 9,991 | 2,445 |
Included in OCI (Liabilities) | 0 | 0 | 0 | 0 |
Purchases (Liabilities) | 0 | 6,384 | 12,135 | 7,189 |
Sales (Liabilities) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Liabilities) | (74) | (9) | (16,782) | (12,387) |
Closing Balance (Liabilities) | 11,844 | 8,184 | 11,844 | 8,184 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Liabilities) | (291) | 335 | (291) | 457 |
Derivative [Member] | Other Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 0 | 5 | 2,532 | 4,395 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | 0 | 665 | 653 | 3,255 |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 1,818 | 0 | 3,623 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | 0 | (3,185) | (8,785) |
Closing Balance (Assets) | 0 | 2,488 | 0 | 2,488 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | 0 | 665 | 0 | 669 |
Insurance-linked securities [Member] | Other Assets [Member] | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening Balance (Assets) | 25,047 | 25,025 | 25,023 | 24,925 |
Transfers into Level 3 (Assets) | 0 | 0 | 0 | 0 |
Transfers out of Level 3 (Assets) | 0 | 0 | 0 | 0 |
Included in earnings (Assets) | (71) | 258 | (47) | 358 |
Included in OCI (Assets) | 0 | 0 | 0 | 0 |
Purchases (Assets) | 0 | 0 | 0 | 0 |
Sales (Assets) | 0 | 0 | 0 | 0 |
Settlements/ Distributions (Assets) | 0 | 0 | 0 | 0 |
Closing Balance (Assets) | 24,976 | 25,283 | 24,976 | 25,283 |
Change in unrealized investment gain/loss relating to assets held at the reporting date (Assets) | $ (71) | $ 258 | $ (47) | $ 358 |
FAIR VALUE MEASUREMENTS (Deta48
FAIR VALUE MEASUREMENTS (Details 4) $ in Thousands | Sep. 30, 2017USD ($)hedge_fund | Dec. 31, 2016USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Number of hedge funds with reporting lag | hedge_fund | 2 | |
Entities that calculate net asset value per share, reporting lag, percent other investments | 51.00% | 35.00% |
Senior notes | $ 993,797 | $ 992,950 |
Estimate Of Fair Value [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,100,000 | $ 1,000,000 |
DERIVATIVE INSTRUMENTS (Details
DERIVATIVE INSTRUMENTS (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | $ 5,859 | $ 16,897 |
Derivative Liability Fair Value | 13,717 | 15,576 |
Other Assets [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 5,859 | 16,897 |
Other Liabilities [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 13,717 | 15,576 |
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 | 147,015 | 195,979 |
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] | ||
Derivative Asset Fair Value | 0 | 12,331 |
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] | ||
Derivative Liability Fair Value | 439 | 87 |
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 | 180,000 | 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] | ||
Derivative Asset Fair Value | 393 | 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] | ||
Derivative Liability 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 | 479,818 | 492,899 |
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] | ||
Derivative Asset Fair Value | 5,466 | 2,034 |
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] | ||
Derivative Liability Fair Value | 1,434 | 8,989 |
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 | 0 | 67,957 |
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] | ||
Derivative Asset Fair Value | 0 | 2,532 |
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] | ||
Derivative Liability Fair Value | 0 | 6,500 |
Underwriting Portfolio [Member] | Commodity Contract [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 0 | 0 |
Underwriting Portfolio [Member] | Commodity Contract [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 0 | 0 |
Underwriting Portfolio [Member] | Commodity Contract [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 0 | 0 |
Underwriting Portfolio [Member] | Other Underwriting-related Contracts [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 85,000 | 0 |
Underwriting Portfolio [Member] | Other Underwriting-related Contracts [Member] | Other Assets [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 0 | 0 |
Underwriting Portfolio [Member] | Other Underwriting-related Contracts [Member] | Other Liabilities [Member] | Not Designated as Hedging Instruments [Member] | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | $ 11,844 | $ 0 |
DERIVATIVE INSTRUMENTS (Detai50
DERIVATIVE INSTRUMENTS (Details 2) - USD ($) $ in Thousands | Sep. 30, 2017 | Dec. 31, 2016 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets - gross amounts | $ 9,682 | $ 22,270 |
Derivative assets - gross amounts offset | (3,823) | (5,373) |
Derivative assets- net amounts | 5,859 | 16,897 |
Derivative liabilities - gross amounts | 17,540 | 20,949 |
Derivative liabilities - gross amounts offset | (3,823) | (5,373) |
Derivative liabilities- net amounts | $ 13,717 | $ 15,576 |
DERIVATIVE INSTRUMENTS (Detai51
DERIVATIVE INSTRUMENTS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
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 | $ (13,262) | $ 2,605 | $ (44,081) | $ (611) |
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 | (1,815) | 155 | (6,534) | 39 |
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 | 520 | 0 | (2,661) | 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 | (12,481) | (182) | (26,109) | (2,958) |
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 | 0 | 833 | (9,629) | 809 |
Underwriting Portfolio [Member] | Commodity Contract [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 | 0 | 1,799 | 0 | 1,499 |
Other Underwriting-related Contracts [Member] | Commodity Contract [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 | $ 514 | $ 0 | $ 852 | $ 0 |
RESERVE FOR LOSSES AND LOSS E52
RESERVE FOR LOSSES AND LOSS EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | ||||
Gross reserve for losses and loss expenses, beginning of period | $ 9,697,827 | $ 9,646,285 | ||
Less reinsurance recoverable on unpaid losses, beginning of period | (2,276,109) | (2,031,309) | ||
Net reserve for unpaid losses and loss expenses, beginning of period | 7,421,718 | 7,614,976 | ||
Net incurred losses and loss expenses related to: | ||||
Current year | 2,591,135 | 1,887,715 | ||
Prior years | $ (47,768) | $ (76,019) | (143,495) | (224,131) |
Net incurred losses and loss expenses | 2,447,640 | 1,663,584 | ||
Net paid losses and loss expenses related to: | ||||
Current year | (328,751) | (233,124) | ||
Prior years | (1,384,510) | (1,334,772) | ||
Net paid losses and loss expenses | (1,713,261) | (1,567,896) | ||
Foreign exchange and other | 333,456 | (112,649) | ||
Net reserve for unpaid losses and loss expenses, end of period | 8,489,553 | 7,598,015 | 8,489,553 | 7,598,015 |
Reinsurance recoverable on unpaid losses, end of period | 2,298,022 | 2,276,792 | 2,298,022 | 2,276,792 |
Gross reserve for losses and loss expenses, end of period | $ 10,787,575 | $ 9,874,807 | $ 10,787,575 | $ 9,874,807 |
RESERVE FOR LOSSES AND LOSS E53
RESERVE FOR LOSSES AND LOSS EXPENSES (Details 2) - USD ($) $ in Thousands | Apr. 01, 2017 | Feb. 13, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Mar. 20, 2017 | Mar. 19, 2017 | Dec. 31, 2016 |
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Current year | $ 2,591,135 | $ 1,887,715 | |||||||
Net favorable (adverse) prior year reserve development | $ 47,768 | $ 76,019 | 143,495 | 224,131 | |||||
Reinsurance recoverable on unpaid and paid losses | 2,360,821 | 2,360,821 | $ 2,334,922 | ||||||
Short Tail Lines Insurance And Reinsurance Business [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 5,000 | 41,000 | 41,000 | 116,000 | |||||
Professional Lines Insurance And Reinsurance Business [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 9,000 | 12,000 | 54,000 | 28,000 | |||||
Reinsurance Credit and Surety [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 17,000 | 18,000 | |||||||
Liability Reinsurance Business [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 10,000 | 40,000 | 32,000 | ||||||
Liability Insurance Business [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | (6,000) | ||||||||
Motor Reinsurance Business [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | $ 16,000 | $ 7,000 | (4,000) | 40,000 | |||||
Ogden rate | (0.75%) | 2.50% | |||||||
Catastrophe and Weather-related Events [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Current year | $ 702,000 | $ 145,000 | |||||||
Discontinued Operations, Disposed of by Means Other than Sale [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Liability for unpaid claims and claims adjustment expense | $ 223,000 | ||||||||
Reduction in reinsurance recoverables on unpaid and paid loses by | $ 223,000 | ||||||||
Compagnie Belge d'Assurances Aviation NV/SA [Member] | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Interests acquired | 100.00% | ||||||||
Reserves of businesses acquired | $ 79,000 | ||||||||
Reinsurance recoverable on unpaid and paid losses | $ 5,000 |
RESERVE FOR LOSSES AND LOSS E54
RESERVE FOR LOSSES AND LOSS EXPENSES (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Net Favorable Prior Year Reserve Development [Line Items] | ||||
Net favorable prior year reserve development | $ 47,768 | $ 76,019 | $ 143,495 | $ 224,131 |
Insurance [Member] | ||||
Net Favorable Prior Year Reserve Development [Line Items] | ||||
Net favorable prior year reserve development | 2,603 | 20,688 | 30,740 | 43,181 |
Reinsurance [Member] | ||||
Net Favorable Prior Year Reserve Development [Line Items] | ||||
Net favorable prior year reserve development | $ 45,165 | $ 55,331 | $ 112,755 | $ 180,950 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 20, 2015 | Aug. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
Basic earnings (loss) per common share | ||||||||
Net income (loss) | $ (457,084) | $ 186,613 | $ (341,541) | $ 364,460 | ||||
Less: preferred share dividends | 10,656 | 9,969 | 36,154 | 29,906 | ||||
Net income (loss) available to common shareholders | $ (467,740) | $ 176,644 | $ (377,695) | $ 334,554 | ||||
Weighted average number of common shares outstanding - basic (in shares) | 83,305,000 | 89,621,000 | 84,479,000 | 91,852,000 | ||||
Basic earnings (loss) per common share (in usd per share) | $ (5.61) | $ 1.97 | $ (4.47) | $ 3.64 | ||||
Diluted earnings (loss) per common share | ||||||||
Net income (loss) available to common shareholders | $ (467,740) | $ 176,644 | $ (377,695) | $ 334,554 | ||||
Weighted average number of common shares outstanding - basic (in shares) | 83,305,000 | 89,621,000 | 84,479,000 | 91,852,000 | ||||
Share based compensation plans (in shares) | 0 | 730,000 | 0 | 727,000 | ||||
Weighted average number of common shares outstanding - diluted (in shares) | 83,305,000 | 90,351,000 | 84,479,000 | 92,579,000 | ||||
Diluted earnings (loss) per common share (in usd per share) | $ (5.61) | $ 1.96 | $ (4.47) | $ 3.61 | ||||
Anti-dilutive shares excluded from the dilutive computation (in shares) | 425,000 | 0 | 712,000 | 226,000 | ||||
August 17, 2015 ASR agreement [Member] | ||||||||
Diluted earnings (loss) per common share | ||||||||
Shares repurchased (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Restricted Stock And Restricted Stock Units [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ||||
Share based compensation expense incurred | $ 13 | $ 14 | $ 57 | $ 50 |
Tax benefit related to share-based compensation costs incurred | 3 | 3 | 20 | 11 |
Fair value - vested during period | 125 | 66 | ||
Unrecognized share-based compensation costs | 99 | 104 | $ 99 | 104 |
Unrecognized share-based compensation costs - weighted average period expected to be recognized | 2 years 6 months 12 days | |||
Restricted Stock And Restricted Stock Units [Member] | Cash Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | ||||
Liability for cash-settled units | $ 18 | $ 34 | $ 18 | $ 34 |
Performance Based Restricted Stock and Restricted Stock Units [Member] | Share Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Nonvested restricted stock (in shares) - beginning of period | 283,000 | |||
Granted (in shares) | 87,000 | |||
Vested (in shares) | (119,000) | |||
Forfeited (in shares) | 0 | |||
Nonvested restricted stock (in shares) - end of period | 251,000 | 251,000 | ||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | ||||
Weighted average grant date fair value - beginning of period (in usd per share) | $ 51.27 | |||
Weighted average grant date fair value - granted (in usd per share) | 64.58 | |||
Weighted average grant date fair value - vested (in usd per share) | 49.14 | |||
Weighted average grant date fair value - forfeited (in usd per share) | 0 | |||
Weighted average grant date fair value - end of period (in usd per share) | $ 56.88 | $ 56.88 | ||
Performance Based Restricted Stock and Restricted Stock Units [Member] | Cash Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Nonvested restricted stock (in shares) - beginning of period | 68,000 | |||
Granted (in shares) | 15,000 | |||
Vested (in shares) | (38,000) | |||
Forfeited (in shares) | 0 | |||
Nonvested restricted stock (in shares) - end of period | 45,000 | 45,000 | ||
Restricted Stock Units (RSUs) [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ||||
Tax benefit related to share-based compensation costs incurred | $ 7 | |||
Service Based Restricted Stock And Restricted Stock Units [Member] | Share Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Nonvested restricted stock (in shares) - beginning of period | 1,593,000 | |||
Granted (in shares) | 525,000 | |||
Vested (in shares) | (881,000) | |||
Forfeited (in shares) | (69,000) | |||
Nonvested restricted stock (in shares) - end of period | 1,168,000 | 1,168,000 | ||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | ||||
Weighted average grant date fair value - beginning of period (in usd per share) | $ 48.88 | |||
Weighted average grant date fair value - granted (in usd per share) | 64.22 | |||
Weighted average grant date fair value - vested (in usd per share) | 47.37 | |||
Weighted average grant date fair value - forfeited (in usd per share) | 54.66 | |||
Weighted average grant date fair value - end of period (in usd per share) | $ 57.08 | $ 57.08 | ||
Service Based Restricted Stock And Restricted Stock Units [Member] | Cash Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Nonvested restricted stock (in shares) - beginning of period | 1,392,000 | |||
Granted (in shares) | 427,000 | |||
Vested (in shares) | (755,000) | |||
Forfeited (in shares) | (60,000) | |||
Nonvested restricted stock (in shares) - end of period | 1,004,000 | 1,004,000 | ||
2014 Long Term Equity Compensation Plan [Member] | Restricted Stock And Restricted Stock Units [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | ||||
Fair value - vested during period | $ 44 | |||
Cliff Vesting [Member] | 2014 Long Term Equity Compensation Plan [Member] | Restricted Stock And Restricted Stock Units [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Cliff Vesting [Member] | 2014 Long Term Equity Compensation Plan [Member] | Service Based Restricted Stock And Restricted Stock Units [Member] | Share Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Vested (in shares) | (313,391) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||
Cliff Vesting [Member] | 2014 Long Term Equity Compensation Plan [Member] | Service Based Restricted Stock And Restricted Stock Units [Member] | Cash Settled [Member] | ||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | ||||
Vested (in shares) | (307,556) | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued, balance at beginning of period (in shares) | 176,580 | ||||
Total shares issued at end of period (in shares) | 176,580 | 176,580 | |||
Treasury shares, balance at beginning of period | (90,139) | ||||
Total treasury shares at end of period (in shares) | (93,423) | (93,423) | |||
Total shares outstanding (in shares) | 83,157 | 83,157 | 86,441 | ||
Common Stock [Member] | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued, balance at beginning of period (in shares) | 176,580 | 176,575 | 176,580 | 176,240 | |
Shares issued (in shares) | 0 | 0 | 0 | 335 | |
Total shares issued at end of period (in shares) | 176,580 | 176,575 | 176,580 | 176,575 | |
Treasury shares, balance at beginning of period | (93,377) | (85,921) | (90,139) | (80,174) | |
Shares repurchased (in shares) | (51) | (2,252) | (4,284) | (8,499) | |
Shares reissued from treasury (in shares) | 5 | 37 | 1,000 | 537 | |
Total treasury shares at end of period (in shares) | (93,423) | (88,136) | (93,423) | (88,136) | |
Total shares outstanding (in shares) | 83,157 | 88,439 | 83,157 | 88,439 |
SHAREHOLDERS' EQUITY (Details 2
SHAREHOLDERS' EQUITY (Details 2) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 20, 2015 | Aug. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Jan. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
August 17, 2015 ASR agreement [Member] | ||||||||
Treasury Shares [Line Items] | ||||||||
Total shares (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 | ||||
Total cost | $ 300,000 | |||||||
Average price per share (in usd per share) | $ 54.47 | |||||||
Common Stock [Member] | ||||||||
Treasury Shares [Line Items] | ||||||||
Total shares (in shares) | 51,000 | 2,252,000 | 4,284,000 | 8,499,000 | ||||
Total cost | $ 3,347 | $ 126,036 | $ 285,659 | $ 449,085 | ||||
Average price per share (in usd per share) | $ 65.74 | $ 55.98 | $ 66.68 | $ 52.84 | ||||
Common Stock [Member] | In the Open Market [Member] | ||||||||
Treasury Shares [Line Items] | ||||||||
Total shares (in shares) | 49,000 | 2,232,000 | 3,932,000 | 8,236,000 | ||||
Total cost | $ 3,237 | $ 124,948 | $ 261,180 | $ 434,948 | ||||
Average price per share (in usd per share) | $ 65.80 | $ 56 | $ 66.43 | $ 52.81 | ||||
Common Stock [Member] | In the Open Market [Member] | August 17, 2015 ASR agreement [Member] | ||||||||
Treasury Shares [Line Items] | ||||||||
Total shares (in shares) | 1,358,380 | |||||||
Common Stock [Member] | From Employees [Member] | ||||||||
Treasury Shares [Line Items] | ||||||||
Total shares (in shares) | 2,000 | 20,000 | 352,000 | 263,000 | ||||
Total cost | $ 110 | $ 1,088 | $ 24,479 | $ 14,137 | ||||
Average price per share (in usd per share) | $ 64.04 | $ 54.13 | $ 69.53 | $ 53.68 |
SHAREHOLDERS' EQUITY (Details 3
SHAREHOLDERS' EQUITY (Details 3) - USD ($) $ / shares in Units, $ in Thousands | Apr. 17, 2017 | Jan. 15, 2016 | Dec. 31, 2015 | Aug. 20, 2015 | Aug. 30, 2015 | Jan. 15, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | Dec. 31, 2016 | Aug. 17, 2015 |
Class of Stock [Line Items] | ||||||||||
Preferred shares | $ 775,000 | $ 1,126,074 | ||||||||
Treasury shares, at cost [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Total cost | 285,659 | $ 449,086 | ||||||||
Additional paid-in capital [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Total cost | $ 0 | $ (60,000) | ||||||||
August 17, 2015 ASR agreement [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Accelerated share repurchases, authorized amount | $ 300,000 | |||||||||
Total cost | $ 300,000 | |||||||||
Total shares (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 | ||||||
Accelerated Share Repurchases, initial repurchase percentage | 80.00% | |||||||||
Average price per share (in usd per share) | $ 54.47 | |||||||||
August 17, 2015 ASR agreement [Member] | Treasury shares, at cost [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Total cost | $ 60,000 | $ 240,000 | ||||||||
August 17, 2015 ASR agreement [Member] | Additional paid-in capital [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Total cost | $ 60,000 | |||||||||
Series C Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred stock, shares outstanding (in shares) | 14,042,955 | |||||||||
Preferred stock, dividend rate, percentage | 6.875% | |||||||||
Preferred shares | $ 351,000 |
DEBT AND FINANCING ARRANGEMEN60
DEBT AND FINANCING ARRANGEMENTS (Details) - USD ($) | Mar. 27, 2017 | Mar. 26, 2017 |
Credit Agreement [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 250,000,000 | |
LOC Facility [Member] | Letter of Credit [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of credit facility | $ 250,000,000 | |
Senior Notes [Member] | Senior Notes Axis Specialty Finance Llc 2010 [Member] | ||
Line of Credit Facility [Line Items] | ||
Debt instrument, face amount | $ 500,000,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Minimum reinsurance premiums [Member] $ in Millions | Sep. 30, 2017USD ($) |
Unrecorded Unconditional Purchase Obligation [Line Items] | |
Outstanding purchase commitment | $ 97 |
Outstanding purchase commitment, 2017 | 15 |
Outstanding purchase commitment, 2018 and thereafter | $ 82 |
OTHER COMPREHENSIVE INCOME (Det
OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Before Tax Amount | ||||
Other Comprehensive Income (Loss), before Tax | $ 56,594 | $ 36,797 | $ 270,453 | $ 309,267 |
Tax (Expense) Benefit | ||||
Other Comprehensive Income (Loss), Tax | 713 | (1,381) | (6,999) | (22,297) |
Net of Tax Amount | ||||
Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income | (13,286) | (2,642) | 10,169 | 42,620 |
Other Comprehensive Income (Loss), Net of Tax | 57,307 | 35,416 | 263,454 | 286,970 |
Unrealized gains (losses) on available for sale investments, net of tax [Member] | ||||
Before Tax Amount | ||||
Unrealized investment gains arising during the period | 64,431 | 40,125 | 215,360 | 263,235 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (15,925) | (5,050) | 8,269 | 40,338 |
Other Comprehensive Income (Loss), before Tax | 48,506 | 35,075 | 223,629 | 303,573 |
Tax (Expense) Benefit | ||||
Unrealized investment gains arising during the period | (1,926) | (3,789) | (8,899) | (24,579) |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | 2,639 | 2,408 | 1,900 | 2,282 |
Other Comprehensive Income (Loss), Tax | 713 | (1,381) | (6,999) | (22,297) |
Net of Tax Amount | ||||
Unrealized investment gains arising during the period | 62,505 | 36,336 | 206,461 | 238,656 |
Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income | (13,286) | (2,642) | 10,169 | 42,620 |
Other Comprehensive Income (Loss), Net of Tax | 49,219 | 33,694 | 216,630 | 281,276 |
Accumulated Other-than-Temporary Impairment, net of tax [Member] | ||||
Before Tax Amount | ||||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 | 0 |
Tax (Expense) Benefit | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 | 0 |
Cumulative foreign currency translation adjustments, net of tax [Member] | ||||
Before Tax Amount | ||||
Other Comprehensive Income (Loss), before Tax | 8,088 | 1,722 | 46,824 | 5,694 |
Tax (Expense) Benefit | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 |
Net of Tax Amount | ||||
Other Comprehensive Income (Loss), Net of Tax | $ 8,088 | $ 1,722 | $ 46,824 | $ 5,694 |
OTHER COMPREHENSIVE INCOME (D63
OTHER COMPREHENSIVE INCOME (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ||||
Other realized investment gains(losses) | $ 20,044 | $ 9,452 | $ (1,318) | $ (19,949) |
OTTI losses | (5,412) | (4,247) | (13,493) | (20,346) |
Income (loss) before income taxes and interest in income (loss) of equity method investments | (482,300) | 198,399 | (371,686) | 374,606 |
Income tax expense | 25,877 | (9,352) | 38,547 | (7,712) |
Net income (loss) available to common shareholders | (467,740) | 176,644 | (377,695) | 334,554 |
Non-cash foreign exchange losses | 24,149 | 0 | ||
Foreign currency translation adjustment [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | 0 | 0 | (24,149) | 0 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) available to common shareholders | 0 | 0 | (24,149) | 0 |
Unrealized investment gains (losses) on available for sale investments [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(losses) | 21,337 | 9,297 | 5,224 | (19,992) |
OTTI losses | (5,412) | (4,247) | (13,493) | (20,346) |
Income (loss) before income taxes and interest in income (loss) of equity method investments | 15,925 | 5,050 | (8,269) | (40,338) |
Income tax expense | (2,639) | (2,408) | (1,900) | (2,282) |
Net income (loss) available to common shareholders | $ 13,286 | $ 2,642 | $ (10,169) | $ (42,620) |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) £ / shares in Units, $ in Thousands, £ in Millions | Oct. 02, 2017USD ($) | Oct. 02, 2017GBP (£) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Oct. 31, 2017USD ($) | Aug. 24, 2017£ / shares | Jul. 05, 2017£ / shares |
Subsequent Event [Line Items] | |||||||||
Transaction related expenses | $ 5,970 | $ 0 | $ 5,970 | $ 0 | |||||
Novae [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Share price (in gpb per shares) | £ / shares | £ 715 | £ 700 | |||||||
Subsequent Event [Member] | Novae [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Consideration transferred | $ 615,600 | £ 462.9 | |||||||
Loss from Catastrophes [Member] | Fire [Member] | Minimum [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Estimate of loss | $ 35,000 | ||||||||
Loss from Catastrophes [Member] | Fire [Member] | Maximum [Member] | Subsequent Event [Member] | |||||||||
Subsequent Event [Line Items] | |||||||||
Estimate of loss | $ 45,000 |