DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2017 | Feb. 20, 2018 | Jun. 30, 2017 | |
DOCUMENT AND ENTITY INFORMATION [ABSTRACT] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
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 | 83,228,829 | ||
Entity Voluntary Filer | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 5.3 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Fixed maturities, available for sale, at fair value (Amortized cost 2017: $12,611,219; 2016: $11,523,316) | $ 12,622,006 | $ 11,397,114 |
Equity securities, available for sale, at fair value (Cost 2017: $552,867; 2016: $597,366) | 635,511 | 638,744 |
Mortgage loans, held for investment, at amortized cost and fair value | 325,062 | 349,969 |
Other investments, at fair value | 1,009,373 | 830,219 |
Equity method investments | 108,597 | 116,000 |
Short-term investments, at amortized cost and fair value | 83,661 | 127,461 |
Total investments | 14,784,210 | 13,459,507 |
Cash and cash equivalents | 948,626 | 1,039,494 |
Restricted cash and cash equivalents | 415,160 | 202,013 |
Accrued interest receivable | 81,223 | 74,971 |
Insurance and reinsurance premium balances receivable | 3,012,419 | 2,313,512 |
Reinsurance recoverable on unpaid and paid losses | 3,338,840 | 2,334,922 |
Deferred acquisition costs | 474,061 | 438,636 |
Prepaid reinsurance premiums | 809,274 | 556,344 |
Receivable for investments sold | 11,621 | 14,123 |
Goodwill | 102,003 | 47,148 |
Intangible assets | 257,987 | 37,901 |
Value of business acquired | 206,838 | 0 |
Other assets | 317,915 | 295,120 |
Total assets | 24,760,177 | 20,813,691 |
Liabilities | ||
Reserve for losses and loss expenses | 12,997,553 | 9,697,827 |
Unearned premiums | 3,641,399 | 2,969,498 |
Insurance and reinsurance balances payable | 899,064 | 493,183 |
Senior notes and notes payable | 1,376,529 | 992,950 |
Payable for investments purchased | 100,589 | 62,550 |
Other liabilities | 403,779 | 325,313 |
Total liabilities | 19,418,913 | 14,541,321 |
Commitments and Contingencies | ||
Shareholders' equity | ||
Preferred shares | 775,000 | 1,126,074 |
Common shares (shares issued 2017: 176,580; 2016: 176,580 shares outstanding 2017: 83,161; 2016: 86,441) | 2,206 | 2,206 |
Additional paid-in capital | 2,299,166 | 2,299,857 |
Accumulated other comprehensive income (loss) | 92,382 | (121,841) |
Retained earnings | 5,979,666 | 6,527,627 |
Treasury shares, at cost (2017: 93,419; 2016: 90,139) | (3,807,156) | (3,561,553) |
Total shareholders’ equity | 5,341,264 | 6,272,370 |
Total liabilities and shareholders’ equity | $ 24,760,177 | $ 20,813,691 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 12,611,219 | $ 11,523,316 |
Equity securities, available for sale, cost | 552,867 | 597,366 |
Commitments and Contingencies | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,161 | 86,441 |
Treasury shares (in shares) | 93,419 | 90,139 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||
Net premiums earned | $ 4,148,760 | $ 3,705,625 | $ 3,686,417 |
Net investment income | 400,805 | 353,335 | 305,336 |
Other insurance related income (losses) | (1,240) | 7,222 | (2,953) |
Bargain purchase gain | 15,044 | 0 | 0 |
Termination fee received | 0 | 0 | 280,000 |
Net realized investment gains (losses): | |||
Other-than-temporary impairment (OTTI) losses | (14,493) | (26,210) | (72,720) |
Other realized investment gains (losses) | 42,719 | (34,315) | (65,771) |
Total net realized investment gains (losses) | 28,226 | (60,525) | (138,491) |
Total revenues | 4,591,595 | 4,005,657 | 4,130,309 |
Expenses | |||
Net losses and loss expenses | 3,287,772 | 2,204,197 | 2,176,199 |
Acquisition costs | 823,591 | 746,876 | 718,112 |
General and administrative expenses | 579,428 | 602,717 | 596,821 |
Foreign exchange losses (gains) | 134,737 | (121,295) | (102,312) |
Interest expense and financing costs | 54,811 | 51,360 | 50,963 |
Transaction and reorganization expenses | 26,718 | 0 | 45,867 |
Amortization of value of business acquired | 50,104 | 0 | 0 |
Amortization of intangibles | 2,543 | 0 | 0 |
Total expenses | 4,959,704 | 3,483,855 | 3,485,650 |
Income (loss) before income taxes and interest in income (loss) of equity method investments | (368,109) | 521,802 | 644,659 |
Income tax benefit (expense) | 7,542 | (6,340) | (3,028) |
Interest in loss of equity method investments | (8,402) | (2,094) | 0 |
Net income (loss) | (368,969) | 513,368 | 641,631 |
Preferred share dividends | 46,810 | 46,597 | 40,069 |
Loss on repurchase of preferred shares | 0 | 1,309 | 0 |
Net income (loss) available to common shareholders | $ (415,779) | $ 465,462 | $ 601,562 |
Net income (loss) per common share: | |||
Basic net income (in dollars per share) | $ (4.94) | $ 5.13 | $ 6.10 |
Diluted net income (in dollars per share) | $ (4.94) | $ 5.08 | $ 6.04 |
Weighted average common shares outstanding - basic (in shares) | 84,108 | 90,772 | 98,609 |
Weighted average common shares outstanding - diluted (in shares) | 84,108 | 91,547 | 99,629 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (368,969) | $ 513,368 | $ 641,631 |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gains (losses) arising during the year | 205,419 | 5,072 | (266,384) |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (33,134) | 62,190 | 144,991 |
Unrealized investment gains (losses) arising during the year, net of reclassification adjustment | 172,285 | 67,262 | (121,393) |
Foreign currency translation adjustment | 41,938 | (638) | (21,498) |
Total other comprehensive income (loss), net of tax | 214,223 | 66,624 | (142,891) |
Comprehensive income (loss) | $ (154,746) | $ 579,992 | $ 498,740 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred shares | Common stocks | Additional paid-in capital | Accumulated other comprehensive income (loss) | Unrealized gains (losses) on available for sale investments, net of tax | Cumulative foreign currency translation adjustments, net of tax | Retained earnings | Treasury shares, at cost |
Balance at beginning of year at Dec. 31, 2014 | $ 627,843 | $ 2,191 | $ 2,285,016 | $ (45,574) | $ (28,192) | $ (17,382) | $ 5,715,504 | $ (2,763,859) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued | 0 | 11 | 3,416 | ||||||
Treasury shares reissued | (17,958) | 17,958 | |||||||
Shares repurchased | (60,000) | (264,538) | |||||||
Costs associated with issuance of preferred shares | 0 | ||||||||
Stock options exercised | 559 | ||||||||
Share-based compensation expense | 30,355 | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | $ (121,393) | (121,393) | |||||||
Foreign currency translation adjustment | (21,498) | (21,498) | |||||||
Net income (loss) | 641,631 | 641,631 | |||||||
Preferred share dividends | (40,069) | ||||||||
Loss on repurchase of preferred shares | 0 | 0 | |||||||
Common share dividends | (122,713) | ||||||||
Balance at end of year at Dec. 31, 2015 | $ 5,866,882 | 627,843 | 2,202 | 2,241,388 | (188,465) | (149,585) | (38,880) | 6,194,353 | (3,010,439) |
Per share data | |||||||||
Cash dividends declared per common share (in usd per share) | $ 1.22 | ||||||||
Shares issued | 550,000 | 4 | 220 | ||||||
Treasury shares reissued | (19,303) | 20,691 | |||||||
Shares repurchased | 60,000 | (571,805) | |||||||
Costs associated with issuance of preferred shares | (18,055) | ||||||||
Stock options exercised | 0 | ||||||||
Share-based compensation expense | 35,607 | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | $ 67,262 | 67,262 | |||||||
Foreign currency translation adjustment | (638) | (638) | |||||||
Net income (loss) | 513,368 | 513,368 | |||||||
Preferred share dividends | (46,597) | ||||||||
Loss on repurchase of preferred shares | (51,769) | (1,309) | |||||||
Common share dividends | (132,188) | ||||||||
Balance at end of year 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) |
Per share data | |||||||||
Cash dividends declared per common share (in usd per share) | $ 1.43 | ||||||||
Shares issued | 0 | 0 | 0 | ||||||
Treasury shares reissued | (39,368) | 40,255 | |||||||
Shares repurchased | 0 | (285,858) | |||||||
Costs associated with issuance of preferred shares | 0 | ||||||||
Stock options exercised | 0 | ||||||||
Share-based compensation expense | 38,677 | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | $ 172,285 | 172,285 | |||||||
Foreign currency translation adjustment | 41,938 | 41,938 | |||||||
Net income (loss) | (368,969) | (368,969) | |||||||
Preferred share dividends | (46,810) | ||||||||
Loss on repurchase of preferred shares | (351,074) | 0 | |||||||
Common share dividends | (132,182) | ||||||||
Balance at end of year at Dec. 31, 2017 | $ 5,341,264 | $ 775,000 | $ 2,206 | $ 2,299,166 | $ 92,382 | $ 89,962 | $ 2,420 | $ 5,979,666 | $ (3,807,156) |
Per share data | |||||||||
Cash dividends declared per common share (in usd per share) | $ 1.53 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (368,969) | $ 513,368 | $ 641,631 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net realized investment (gains) losses | (28,226) | 60,525 | 138,491 |
Net realized and unrealized gains on other investments | (72,763) | (38,669) | (20,148) |
Amortization of fixed maturities | 43,292 | 65,921 | 97,223 |
Interest in loss of equity method investments | 8,402 | 2,094 | 0 |
Other amortization and depreciation | 81,471 | 24,573 | 26,341 |
Share-based compensation expense, net of cash payments | 12,667 | 52,211 | 43,052 |
Non-cash foreign exchange losses | 24,149 | 0 | 0 |
Bargain purchase gain | (15,044) | 0 | 0 |
Changes in: | |||
Accrued interest receivable | (4,353) | (885) | 8,908 |
Reinsurance recoverable balances | (131,160) | (176,532) | (214,992) |
Deferred acquisition costs | (35,076) | 33,212 | (4,744) |
Prepaid reinsurance premiums | (56,377) | (158,809) | (46,955) |
Reserve for loss and loss expenses | 1,004,578 | 54,476 | 151,011 |
Unearned premiums | (56,603) | 198,938 | 29,841 |
Insurance and reinsurance balances, net | (81,831) | (209,895) | (74,578) |
Other items | (64,928) | (13,804) | 16,119 |
Net cash provided by operating activities | 259,229 | 406,724 | 791,200 |
Purchases of: | |||
Fixed maturities | (8,714,990) | (9,176,728) | (11,011,979) |
Equity securities | (106,136) | (302,554) | (356,617) |
Mortgage loans | (31,077) | (148,450) | (206,191) |
Other investments | (153,150) | (190,370) | (83,561) |
Equity method investments | (1,000) | (107,913) | 0 |
Short-term investments | (41,609) | (190,747) | (80,069) |
Proceeds from the sale of: | |||
Fixed maturities | 7,004,973 | 7,905,316 | 9,432,226 |
Equity securities | 448,058 | 305,642 | 275,357 |
Other investments | 260,943 | 215,578 | 252,418 |
Short-term investments | 49,280 | 54,165 | 125,311 |
Proceeds from redemption of fixed maturities | 2,009,982 | 1,492,588 | 1,407,806 |
Proceeds from redemption of short-term investments | 119,427 | 36,546 | 23,687 |
Proceeds from the repayment of mortgage loans | 56,435 | 5,040 | 0 |
Purchase of other assets | (42,685) | (27,149) | (33,683) |
Change in restricted cash and cash equivalents | (213,147) | (15,395) | 29,598 |
Purchase of subsidiaries, net | (466,941) | 0 | 0 |
Net cash provided by (used in) investing activities | 178,363 | (144,431) | (225,697) |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 346,362 | 0 | 0 |
Repayment of notes payable | 67,242 | 0 | 0 |
Net proceeds from issuance of preferred shares | 0 | 531,945 | 0 |
Repurchase of common shares - open market | (261,180) | (495,426) | (314,204) |
Taxes paid on withholding shares | (24,678) | (14,329) | (18,048) |
Dividends paid - common shares | (135,032) | (132,323) | (118,652) |
Repurchase of preferred shares | (351,074) | (51,769) | 0 |
Dividends paid - preferred shares | (52,844) | (39,909) | (40,088) |
Proceeds from issuance of common shares | 0 | 224 | 3,986 |
Net cash used in financing activities | (545,688) | (201,587) | (487,006) |
Effect of exchange rate changes on foreign currency cash and cash equivalents | 17,228 | (9,345) | (12,194) |
Increase (decrease) in cash and cash equivalents | (90,868) | 51,361 | 66,303 |
Cash and cash equivalents - beginning of year | 1,039,494 | 988,133 | 921,830 |
Cash and cash equivalents - end of year | 948,626 | 1,039,494 | 988,133 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 0 | 12,041 | 12,661 |
Interest paid | $ 49,945 | $ 48,875 | $ 48,875 |
CONSOLIDATED STATEMENTS OF CAS8
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement of Cash Flows [Abstract] | |
Consideration transferred reinsurance | $ 170 |
Transfer from investments | $ 92 |
HISTORY
HISTORY | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
HISTORY | AXIS Capital Holdings Limited ("AXIS Capital") is the Bermuda-based holding company for the AXIS group of companies, collectively the "Company". AXIS Capital was incorporated on December 9, 2002, under the laws of Bermuda. Through its subsidiaries and branches with operations in Bermuda, the United States (U.S.), Europe, Singapore, Canada, Latin America and the Middle East, AXIS Capital provides a broad range of (re)insurance products on a worldwide basis under two distinct global underwriting platforms, AXIS Insurance and AXIS Re. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and include AXIS Capital and its wholly-owned subsidiaries. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity. Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • reserve for losses and loss expenses; • reinsurance recoverable on unpaid losses, including the provision for uncollectible amounts; • gross and net premiums written and net premiums earned; • other-than-temporary impairments ("OTTI") in the carrying value of available-for-sale securities; and • fair value measurements for its financial assets and liabilities. The Company's significant accounting policies are as follows: a) Investments Investments available for sale Fixed maturities and equity securities classified as "available for sale" are reported at fair value at the balance sheet date (see Note 7 ' Fair Value Measurements '). The change in fair value (net unrealized gain (loss)) on available for sale investments, net of tax, is included as a separate component of accumulated other comprehensive income (loss) ("AOCI") in shareholders’ equity. Net investment income includes interest and dividend income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of investments are recorded on a trade-date basis and realized gains (losses) on sales of investments are determined based on the specific identification method. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if any. The effective yield used to determine the amortization for fixed maturities subject to prepayment risk (e.g. asset-backed, loan-backed and other structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows. The adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. On a quarterly basis, the Company assesses whether unrealized losses on available for sale investments represent impairments that are other than temporary. Several factors are considered in this assessment including, but not limited to: (i) the extent and duration of the decline; (ii) the reason for the decline (e.g. credit spread widening, credit event, foreign exchange rate movements); (iii) the historical and implied future volatility of the fair value; (iv) the financial condition and near-term prospects of the issuer; and (v) the collateral structure and credit support of the security, if applicable. A fixed maturity is impaired if the fair value of the investment is below amortized cost. If a fixed maturity is impaired, additional analysis is performed to determine whether the impairment is temporary or other-than-temporary. For an impaired fixed maturity where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the impairment is considered other than temporary. The full amount of the impairment is charged to net income and is included in net realized investment gains (losses). In instances, where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss of the security and recognizes only this portion of the impairment in net income, with the remaining non-credit related balance of the impairment (i.e. related to interest rates, market conditions, etc.) recognized in AOCI. The Company recognizes impairments on equity securities in an unrealized loss position when the Company does not have the ability and intent to hold the security for a reasonable period of time to allow for a full recovery. The full amount of the impairment is charged to net income and is included in net realized investment gains (losses). Upon recognition of an OTTI charge, the new cost basis for the security is the previous amortized cost for a fixed maturity or cost for an equity security less the OTTI charge recognized in net income. The new cost basis is not adjusted for subsequent recoveries in fair value except for fixed maturities whereby the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining life of the fixed maturity. Mortgage loans held-for-investment Mortgage loans held-for-investment are stated at amortized cost calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to the amortization of premiums and accretion of discounts. Other investments Other investments are recorded at fair value (refer to Note 7 ' Fair Value Measurements '), with both changes in fair value and realized investment gains (losses) reported in net investment income. Equity Method Investments Investments in which the Company has significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of net income or loss of the investee. Adjustments are based on the most recently available financial information from the investee. Changes in the carrying value of such investments are recorded in net income as interest in income (loss) of equity method investments. Short-term investments Short-term investments primarily comprise highly-liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. b) Cash and cash equivalents Cash equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements placed with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Restricted cash primarily relates to funds held in trust in support of obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of the Syndicate 1686 and Syndicate 2007 at Lloyd's of London ("Lloyd's"). c) Premiums and Acquisition Costs Premiums Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract and are estimated based upon information received from ceding companies. For multi-year contracts where (re)insurance premiums are payable in annual installments, premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. However, premiums are normally recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the policy. The remaining annual premiums are included as written at each successive anniversary date within the multi-year term. Any subsequent differences arising on insurance and reinsurance premium estimates are recorded in the period they are determined. (Re)insurance premiums are earned evenly over the period during which the Company is exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on estimates of losses and loss adjustment expenses, which reflects management’s judgment, as described in Note 2(d) ' Losses and Loss Expenses ' below. Premiums receivable balances are reviewed for impairment at least quarterly and an allowance is established for amounts considered uncollectible. Acquisition Costs Acquisition costs vary with and are directly related to the successful acquisition efforts of acquiring new or renewing existing(re)insurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Premiums receivable are presented net of applicable acquisition costs when contract terms provide for the right of offset. Acquisition costs are shown net of commissions earned on ceded reinsurance. Net acquisition costs are deferred and charged to expense as the related premium is earned. Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. d) Losses and Loss Expenses Reserve for losses and loss expenses represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for (re)insured events that have occurred at or before the balance sheet date. The balance reflects both claims that have been reported ("case reserves") and claims that have been incurred but not yet reported ("IBNR"). These amounts are reduced for estimated amounts of salvage and subrogation recoveries. The Company reviews its reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported from insureds and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Bornhuetter-Ferguson and Chain Ladder methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and class of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to previous reserve for losses and loss expenses estimates are recognized in the period they are determined. While the Company believes that its reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the Consolidated Balance Sheets. e) Reinsurance In the normal course of business, the Company purchases reinsurance protection to limit its ultimate losses from catastrophic events and to reduce its loss aggregation risk. The premiums paid to reinsurers (i.e. premiums ceded) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of the contracts in force. Reinstatement-related premiums ceded are recorded at the time a loss event occurs and coverage limits for the remaining life of a contract are reinstated under pre-defined contract terms with premiums are expensed over the remaining risk period. Reinsurance recoverable related to case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance coverage to individual case reserve estimates. The estimate of reinsurance recoverable related to IBNR reserves is generally developed as part of the loss reserving process. Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes will ultimately not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. The Company applies case-specific provisions against certain recoveries that it deems unlikely to be collected in full. In addition, the Company uses a default analysis to estimate the provision for uncollectible amounts on the remainder of the balance. The estimates of reinsurance recoverable and the associated provision require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to amounts recognized in prior periods are reported in net losses and loss expenses in the consolidated statements of operations for the period when the adjustments were identified. Retroactive Reinsurance Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in earnings in the period of the change so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. f) Foreign Exchange The Company’s reporting currency is the U.S. dollar. In translating the financial statements of its subsidiaries or branches where the functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates and revenues and expenses are converted using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in shareholders’ equity. In recording foreign currency transactions, revenue and expense items are converted to the relevant functional currency at the exchange rate prevailing at the transaction date. Assets and liabilities originating in currencies other than the functional currency are remeasured to the functional currency at the rates of exchange in effect at the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Operations, with the exception of those related to foreign-denominated available for sale investments. For these investments, exchange rate fluctuations represent an unrealized appreciation/depreciation in the value of the securities and are included in the related component of AOCI. g) Share-Based Compensation The Company is authorized to issue restricted stock units, performance units, restricted shares, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes both share and cash-settled awards comprising of service and performance based awards. The fair value of share service-based awards is measured at the grant date, with the associated expense recognized on a straight-line basis over the service period. The fair value of equity performance-vesting restricted stock units ("PSUs") is measured at the grant date based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized on a straight-line basis over the applicable performance and vesting period. The compensation expense for PSUs is subject to a periodic review and adjustment taking into account actual performance of the Company. The fair value of the liability associated with service and performance based cash-settled awards is re-measured at each balance sheet date, with the effects recognized as an increase or decrease to share-based compensation expense for the period. Effective, January 1, 2017, the Company made an accounting policy election to account for forfeitures when they occur. h) Derivative Instruments The Company may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of its overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. During 2013, the Company began to write derivative based risk management products designed to address weather and commodity price risks, with the objective of generating profits on a portfolio basis. Effective July 1, 2017, the Company no longer writes derivative-based risk management products which address weather risks. From time to time the Company may also enter into (re)insurance contracts that meet the Financial Accounting Standards Board's ("FASB") definition of a derivative contract. The Company measures all derivative instruments at fair value (see Note 7 ' Fair Value Measurements ') and recognizes them as either assets or liabilities in the Consolidated Balance Sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the Consolidated Statements of Operations. i) Goodwill and Intangible Assets The Company recognizes goodwill and other intangible assets in connection with certain acquisitions. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in these acquisition and is not amortized. Other intangible assets with a finite life are amortized over the estimated useful live of the intangible asset. Other intangible assets with an indefinite life are not amortized. The Company tests goodwill and indefinite intangible assets for potential impairment during the fourth quarter each year and between annual tests if an event occurs or changes in circumstances indicate that the asset is impaired. Such events or circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. For the purposes of evaluating goodwill for impairment, the Company may first perform a qualitative assessment , to determine whether it is necessary to perform the two-step goodwill impairment test. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. For the purposes of evaluating indefinite lived intangibles for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. If the Company elects to perform a qualitative assessment, it first assesses qualitative factors to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the Company determines that it is not more likely than not that the indefinite lived intangible asset is impaired, the Company does not calculate the fair value of the intangible asset and perform the quantitative impairment test. For the purposes of evaluating goodwill and indefinite lived intangible assets for impairment, the Company has an unconditional option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The Company may resume performing the qualitative assessment in any subsequent period. For other definite lived intangible asset the Company tests for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company recognizes an impairment loss if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount of a definite lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If goodwill or an intangible asset is impaired, the carrying value of the asset is reduced to fair value and a corresponding expense is recorded in the Consolidated Statements of Operations. j) Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When the assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. The Company recognizes the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained upon audit by the relevant taxing authorities. k) Treasury Shares Common shares repurchased by the Company and not subsequently canceled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales/reissuances of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from reissued treasury shares were included therein; otherwise losses are charged to retained earnings. l) New Accounting Standards Adopted in 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 are 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. Cash paid by the Company by directly withholding shares for tax withholding purposes is included in taxes paid on withholding shares in the Consolidated Statement of Cash Flows. To facilitate comparison of information with prior year amounts, the corresponding amounts for the years ended December 31, 2016 and 2015 have been reclassified to conform to the current year's presentation. The adoption of this guidance did not have a material impact on the Company's results of operations, financial condition and liquidity. m) Recently 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. 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 not within 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 within the scope of ASU 2014-09. The Company's current accounting policy to recognize fee income when the related services have been performed is consistent with the guidance in this ASU. As a result, the Company does not expect the adoption of this guidance to have a material impact on its results of operations, financial condition and liquidity. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities" which requires: • equity investments (except those accounted for under the equity method of accounting, investments that are consolidated or those that meet a practicability exception) to be measured at fair value with changes in fair value recognized in net income, • simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, • requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, • requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, • requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and • clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted for certain of the amendments. The adoption of this guidance is expected to have a material impact on the Company's results of operations as changes in fair value of equity securities will be included in net income rather than other comprehensive income. At December 31, 2017, accumulated other comprehensive income included $70 million of net unrealized gains on equity securities, net of taxes. Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which provides a new comprehensive model for lease accounting. The guidance will require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. 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 the Company's results of operations, financial condition and liquidity. Measurement of Credit Losses on Financial Instrument In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments " which replaces the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. The guidance also provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on its results of operations, financial condition and liquidity. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments " which addresses diversity in practice in how eight specific cash receipts and cash payments should be presented and classified on the statement of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. As this guidance relates solely to financial statement disclosures, the adoption of ASU 2016-18, will not impact the Company's results of operations, financial condition and liquidity. R |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATIONS | a) Acquisition of Novae Group plc On October 2, 2017 (the "closing date" or the "acquisition date"), AXIS Specialty UK Holdings Limited, a wholly owned subsidiary of the Company, acquired a 100% ownership interest in Novae Group plc ("Novae") for an aggregate purchase price of $617 million . Novae is a diversified property and casualty (re)insurance business operating through Syndicate 2007 at Lloyd’s. The results of Novae are included in the results of the Company's insurance and reinsurance segments from that date. The acquisition of Novae was undertaken to accelerate the growth strategy of the Company's international insurance business, and to significantly scale up its capabilities to enable the Company to even better serve its clients and brokers. In connection with the acquisition of Novae, the Company incurred transaction and reorganization related expenses of $27 million in the year ended December 31, 2017 , which included transaction costs, such as due diligence, legal, accounting, investment banking fees and expenses, as well as integration expenses related to the integration of Novae into the Company's operations and compensation-related costs associated with the termination of certain employees. The purchase price was allocated to the assets acquired and liabilities assumed of Novae based on estimated fair values at the closing date and the Company recognized goodwill of $54 million . The allocation of the purchase price is based on information included in Novae's audited financial statements at October 2, 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 assets acquired and liabilities assumed may be subject to adjustments, which may impact the amounts recorded for the assets acquired and liabilities assumed as well as the goodwill. The Company identified finite lived intangible assets of $385 million , including Value of Business Acquired ("VOBA") which represents the present value of the expected underwriting profit within policies that were in-force at the closing date of the transaction, of $257 million and finite lived intangible assets primarily related to distribution networks of $128 million . Finite lived intangible assets will be amortized over a weighted average period of 7 years. The Company also identified indefinite lived intangible assets related to Lloyd's syndicate capacity of $95 million . The fair value of the assets acquired and liabilities assumed and the allocation of the purchase price on the acquisition date are summarized in the following table: Total purchase price paid $ 616,926 Assets Investments 1,733,611 Cash and cash equivalents 191,337 Insurance and reinsurance premium balances receivable 472,180 Reinsurance recoverable on unpaid and paid losses 787,907 Prepaid reinsurance premiums 197,907 Other assets 42,696 Total assets acquired $ 3,425,638 Liabilities Reserve for losses and loss expenses 2,125,634 Unearned premiums 717,442 Insurance and reinsurance balances payable 273,405 Notes payable 101,846 Other liabilities 124,585 Total liabilities assumed $ 3,342,912 Fair value of identifiable intangible assets: Value of business acquired - definite lived intangible asset 256,942 Identifiable definite lived intangible assets 128,463 Identifiable indefinite lived intangible assets 94,748 Excess purchase price over fair value of net assets acquired assigned to goodwill $ 54,047 Significant fair value adjustments are explained as follows: • Deferred acquisition costs : To eliminate Novae's deferred acquisition costs; • Prepaid reinsurance premiums : To reflect adjustments to align premium recognition accounting policies; • VOBA : To establish the fair value of VOBA identifiable intangible asset related to the acquisition of Novae; • Goodwill: To establish the fair value of goodwill related to the acquisition of Novae; • Indefinite lived and finite lived intangible assets : To establish the fair value of identifiable intangible assets related to the acquisition of Novae and to eliminate Novae's pre-existing intangible assets; • Other assets : To reflect an investment at fair value and deferred tax assets on fair value adjustments; • Reserves for losses and loss expenses : To reflect adjustments arising from the alignment of premium recognition accounting policies and reserving methodologies, as well as the price associated with the Reinsurance to Close ("RITC") of the 2015 and prior years of account of Lloyd's Syndicate 2007 ; • Unearned premiums : To reflect adjustments to align premium recognition accounting policies; and • Other liabilities : To reflect deferred tax liabilities on fair value adjustments. Identifiable intangible assets at the acquisition date are included in intangible assets in the Consolidated Balance Sheets and are shown in the following table: Economic Useful Life Indefinite lived intangible assets Lloyd's syndicate capacity $ 94,748 Indefinite Finite lived other intangible assets Distribution networks: Coverholders 63,565 12 years Large brokers 46,641 15 years Small & Mid-sized Enterprise ("SME") brokers 14,126 12 years Managing General Agent ("MGA") Contract 4,131 7 years Total 128,463 Identifiable intangible assets at October 2, 2017 $ 223,211 Identifiable intangible assets are explained as follows: • Lloyd's syndicate capacity: The value of Lloyd's syndicate capacity, which represents Novae's right to underwrite a certain allocated limit of premium in the Lloyd's market. • Distribution network: • Coverholders: The value of sales of insurance policies that result directly from relationships with insurance intermediaries who are authorized by Novae's managing agent to enter into contracts of insurance to be underwritten by Syndicate 2007, in accordance with the terms of a binding authority. • Large brokers: These relationships include Novae's large brokers and consideration was given to the expectation of the renewal of these relationships and the associated expenses. • SME brokers: These relationships consist of Novae's brokers with the exception of the large brokers listed above and consideration was given to the expectation of the renewal of these relationships and the associated expenses. • MGA contract: Represents the value of managing agent fees and profit commission Novae earns related to the provision of underwriting services to Special Purpose Arrangement, SPA 6129. Valuation methodologies applicable to identifiable intangible assets are explained as follows: • Lloyd's syndicate capacity : Lloyd's syndicate capacity was valued using the Multi-Period Excess Earnings Method, an application of the Income Approach. Key inputs used in the valuation model used for this intangible asset included projected pre-tax operating profit attributable to syndicate capacity, contributory asset charges which represent the required return on and of intangibles assets utilized to generate future revenue and operating income, and an appropriate discount rate. • Distribution network : Distribution network including coverholders, large broker and SME brokers was valued using the Distributor Method, an application of the Income Approach. Key inputs used in the valuation model used for this intangible asset included net premiums earned attributable to existing distributors, attrition rates, profit margins, projected pre-tax operating profit attributable to existing distributors, contributory asset charges which represent the required return on and of intangibles assets utilized to generate future revenue and operating income, and an appropriate discount rate. • MGA contract : MGA contract was valued using the Multi-Period Excess Earnings Method, an application of the Income Approach. Key inputs used in the valuation model used for this intangible asset included SPA 6129's stamp capacity with Lloyd's, return on stamp capacity, fee income and profit commission associated with the managing agent contract for SPA 6129, profit margins, contributory asset charges which represent the required return on and of intangibles assets utilized to generate future revenue and operating income, and an appropriate discount rate. • VOBA : VOBA was computed as the difference between the fair value of unearned obligations and the unearned premiums reserve recorded by Novae at the acquisition date. Key inputs used in the valuation model used for this intangible asset included the fair value of the unearned premium computed as the present value of future unearned cash flows, plus the present value of the costs associated with holding capital to support these exposures together with the fair value of reserves computed as the present value of future net losses and loss expense payments, plus the present value of the costs associated with holding capital to support those payments. Financial Results The following selected audited information is a summary of the results of Novae that has been included in the Consolidated Financial Statements for the year ended December 31, 2017. From acquisition date to (in thousands) December 31, 2017 Net premiums written $ 140,635 Total revenue 191,929 Total expenses (197,895 ) Net income $ (5,966 ) Supplemental Pro Forma Information The following selected unaudited pro forma financial information is a summary of the combined results of the Company and Novae, assuming the transaction had been effected on January 1, 2016. The unaudited pro forma data is for informational purposes only and does not necessarily represent results that would have occurred if the transaction had taken place on January 1, 2016. The unaudited pro forma consolidated financial information does not consider the impact of possible revenue enhancements, expense efficiencies, or synergies that may result from the acquisition of Novae. In addition, the unaudited pro forma consolidated financial information does not include costs associated with restructuring or integration activities resulting from the acquisition of Novae. In addition to the fair value adjustments and recognition of goodwill and identifiable intangible assets, other material pro forma adjustments directly attributable to the acquisition of Novae primarily included adjustments to recognize transaction and integration related expenses, to align accounting policies, to amortize identifiable indefinite lived intangible assets and to recognize related tax impacts. Years ended December 31, 2017 2016 (in thousands) (unaudited) (unaudited) Net premiums earned $ 4,728,700 $ 4,560,800 Net income $ (468,400 ) $ 532,500 b) Acquisition of Compagnie Belge d'Assurances Aviation NV/SA 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 reinsurance company, Aviabel RE S.A. ("Aviabel RE"), in Luxembourg. The acquisition of Aviabel was undertaken to increase its scale and relevance in the global aviation market. The purchase price was allocated to the assets acquired and liabilities assumed 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 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 assets acquired and liabilities assumed may be subject to adjustments, which may impact the amounts recorded for the assets acquired and liabilities assumed, 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. c) Acquisition of Contessa On September 6, 2017 (the "closing date"), the Company acquired a 100% ownership interest in Contessa Limited ("Contessa"). Contessa is a Managing General Agent that that manages, underwrites, services and administers small and medium sized commercial property and casualty business on behalf of the Company. The purchase price was allocated to the assets acquired and liabilities assumed of Contessa based on estimated fair values on the closing date. Consequently, the Company recognized goodwill of $1 million . |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | AXIS Capital's underwriting operations are organized around its global underwriting platforms, AXIS Insurance and AXIS Re. The Company has determined that it has two reportable segments; insurance and reinsurance. The Company does not allocate its assets by segment, with the exception of goodwill and intangible assets, as it evaluates the underwriting results of each segment separately from the results of its investment portfolio. Insurance The Company's insurance segment offers specialty insurance products to a variety of niche markets on a worldwide basis. The product lines in this segment are property, marine, terrorism, aviation, credit and political risk, professional lines, liability, accident and health together with discontinued lines which represents lines of business that Novae exited or placed into run-off in the three month period ended December 31, 2016 and in the three month period ended March 31, 2017. Reinsurance The Company's 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 together with discontinued lines which represents lines of business that Novae exited or placed into run-off in the three month period ended December 31, 2016 and in the three month period ended March 31, 2017. The reinsurance segment also wrote derivative based risk management products designed to address weather and commodity price risks until July 1, 2017. The following tables summarize the underwriting results of the reportable segments, as well as the carrying values of allocated goodwill and intangible assets: At and year ended December 31, 2017 Insurance Reinsurance Total Gross premiums written $ 3,127,837 $ 2,428,436 $ 5,556,273 Net premiums written 2,087,734 1,939,409 4,027,143 Net premiums earned 2,106,363 2,042,397 4,148,760 Other insurance related income (losses) 3,458 (4,698 ) (1,240 ) Net losses and loss expenses (1,661,032 ) (1,626,740 ) (3,287,772 ) Acquisition costs (332,749 ) (490,842 ) (823,591 ) General and administrative expenses (344,012 ) (105,471 ) (449,483 ) Underwriting loss $ (227,972 ) $ (185,354 ) (413,326 ) Corporate expenses (129,945 ) Net investment income 400,805 Net realized investment losses 28,226 Foreign exchange losses (134,737 ) Interest expense and financing costs (54,811 ) Bargain purchase gain 15,044 Transaction and reorganization expenses (26,718 ) Amortization of value of business acquired (50,104 ) Amortization of intangibles (2,543 ) Loss before income taxes and interest in income (loss) of equity method investments $ (368,109 ) Net loss and loss expense ratio 78.9 % 79.6 % 79.2 % Acquisition cost ratio 15.8 % 24.0 % 19.9 % General and administrative expense ratio 16.3 % 5.2 % 14.0 % Combined ratio 111.0 % 108.8 % 113.1 % Goodwill and intangible assets $ 566,828 $ — $ 566,828 At and year ended December 31, 2016 Insurance Reinsurance Total Gross premiums written $ 2,720,242 $ 2,249,966 $ 4,970,208 Net premiums written 1,807,125 1,945,849 3,752,974 Net premiums earned 1,777,321 1,928,304 3,705,625 Other insurance related income 89 7,133 7,222 Net losses and loss expenses (1,141,933 ) (1,062,264 ) (2,204,197 ) Acquisition costs (251,120 ) (495,756 ) (746,876 ) General and administrative expenses (346,857 ) (135,844 ) (482,701 ) Underwriting income $ 37,500 $ 241,573 279,073 Corporate expenses (120,016 ) Net investment income 353,335 Net realized investment loss (60,525 ) Foreign exchange gains 121,295 Interest expense and financing costs (51,360 ) Income before income taxes and interest in income (loss) of equity method investments $ 521,802 Net loss and loss expense ratio 64.3 % 55.1 % 59.5 % Acquisition cost ratio 14.1 % 25.7 % 20.2 % General and administrative expense ratio 19.5 % 7.0 % 16.2 % Combined ratio 97.9 % 87.8 % 95.9 % Goodwill and intangible assets $ 85,049 $ — $ 85,049 At and year ended December 31, 2015 Insurance Reinsurance Total Gross premiums written $ 2,583,081 $ 2,020,649 $ 4,603,730 Net premiums written 1,759,359 1,915,307 3,674,666 Net premiums earned 1,798,191 1,888,226 3,686,417 Other insurance related income (losses) 1,036 (3,989 ) (2,953 ) Net losses and loss expenses (1,154,928 ) (1,021,271 ) (2,176,199 ) Acquisition costs (261,208 ) (456,904 ) (718,112 ) General and administrative expenses (341,658 ) (145,253 ) (486,911 ) Underwriting income $ 41,433 $ 260,809 302,242 Corporate expenses (109,910 ) Net investment income 305,336 Net realized investment loss (138,491 ) Foreign exchange gains 102,312 Interest expense and financing costs (50,963 ) Termination fee received 280,000 Transaction and reorganization expenses (45,867 ) Income before income taxes and interest in income (loss) of equity method investments $ 644,659 Net loss and loss expense ratio 64.2 % 54.1 % 59.0 % Acquisition cost ratio 14.5 % 24.2 % 19.5 % General and administrative expense ratio 19.1 % 7.7 % 16.2 % Combined ratio 97.8 % 86.0 % 94.7 % Goodwill and intangible assets $ 86,858 $ — $ 86,858 The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Year ended December 31, 2017 2016 2015 Bermuda $ 529,425 $ 465,980 $ 525,226 Ireland 1,569,956 1,650,229 1,532,753 U.S. 2,814,933 2,562,789 2,364,099 Lloyd's of London 641,959 291,210 181,652 Total gross premium written $ 5,556,273 $ 4,970,208 $ 4,603,730 The following table presents net premiums earned by segment and line of business: Year ended December 31, 2017 2016 2015 Insurance Property $ 543,342 $ 426,918 $ 432,587 Marine 181,533 150,046 183,696 Terrorism 36,084 33,279 36,818 Aviation 75,107 44,980 45,659 Credit and Political Risk 56,432 57,964 63,583 Professional Lines 519,759 510,806 596,430 Liability 188,770 169,182 161,614 Accident and Health 489,046 384,146 277,804 Discontinued lines - Novae 16,290 — — Total Insurance 2,106,363 1,777,321 1,798,191 Reinsurance Catastrophe 209,470 199,825 216,020 Property 304,376 272,403 306,083 Professional Lines 226,622 289,868 310,915 Credit and Surety 244,186 252,210 250,208 Motor 371,501 318,863 299,883 Liability 351,940 332,479 297,000 Agriculture 195,391 142,501 129,346 Engineering 66,291 62,833 61,043 Marine and Other 64,449 57,322 17,728 Discontinued lines - Novae 8,171 — — Total Reinsurance 2,042,397 1,928,304 1,888,226 Total $ 4,148,760 $ 3,705,625 $ 3,686,417 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | Goodwill and intangible assets are shown in the following table: Goodwill Intangible assets with an indefinite life Intangible assets with a finite life Total Balance at December 31, 2015 Gross amount $ 42,237 $ 26,036 $ 29,166 $ 97,439 Accumulated amortization n/a n/a (13,390 ) (13,390 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 15,776 88,960 Acquired during the year — — 13,330 13,330 Amortization n/a n/a (2,493 ) (2,493 ) Impairment charges — — (12,939 ) (12,939 ) Balance at December 31, 2016 Gross amount (1) 42,237 26,036 23,030 91,303 Accumulated amortization (1) n/a n/a (9,356 ) (9,356 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 13,674 86,858 Amortization n/a n/a (1,809 ) (1,809 ) Balance at December 31, 2017 Gross amount $ 42,237 $ 26,036 $ 23,030 $ 91,303 Accumulated amortization n/a n/a (11,165 ) (11,165 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 11,865 85,049 Acquired during the year 54,855 94,748 387,545 537,148 Amortization n/a n/a (55,369 ) (55,369 ) $ 102,003 $ 120,784 $ 344,041 $ 566,828 n/a – not applicable (1) During the year ended December 31, 2017, an amount of $ 6,136 and 7,945 was adjusted from gross amount and accumulated amortization, respectively, as a result of the wind-down of the Company's retail insurance operations in Australia. On April 1, 2015, the Company completed the acquisition of Ternian Insurance Group LLC ("Ternian"), a leading provider of voluntary, limited benefit affordable health plans and other employee benefits coverage for hourly and part-time workers and their families. The Company recognized intangible assets of $13 million associated with this acquisition. During September 2015, as part of its profitability enhancement initiatives, the Company decided to wind-down all of its retail insurance operations in Australia. As a result of this decision, the Company recognized an impairment of an associated finite-lived intangible asset. The impaired intangible asset related to the purchase of an Australian distribution network in 2009 that had an initial expected useful life of thirty years . The impairment expense of $13 million was included as part of the reorganization and related expenses in the Consolidated Statement of Operations. In connection with the acquisition of Novae, the Company identified finite lived intangible assets of $385 million , including Value of Business Acquired ("VOBA") which represents the present value of the expected underwriting profit within policies that were in-force at the closing date of the transaction, of $257 million and other finite lived intangible assets primarily related to distribution networks of $128 million . Finite lived intangible assets will be amortized over a weighted average period of 7 years, including VOBA that will be amortized over a period of 4 years and other finite lived intangible assets that will be amortized over a weighted average of 13 years, respectively. In addition, the Company identified indefinite lived intangible assets related to Lloyd's syndicate capacity of $95 million . The Company also recognized goodwill of $54 million . In connection with the acquisition of Contessa, the Company recognized goodwill of $1 million . Intangible assets with an indefinite life include U.S. state licenses that provide a legal right to transact business indefinitely and the value of Lloyd's syndicate capacity, which represents Novae's right to underwrite a certain allocated limit of premium in the Lloyd's market. The gross amount and accumulated amortization by category of VOBA and intangible assets is shown in the following table: VOBA and intangible assets Balance At December 31, 2017 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,244 ) 456 Customer relationships and customers lists - Ternian 13,330 (3,666 ) 9,664 Other intangibles - Aviabel 2,140 (977 ) 1,163 VOBA - Novae 256,942 (50,104 ) 206,838 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (1,324 ) 62,241 Large brokers 46,641 (777 ) 45,864 SME brokers 14,126 (294 ) 13,832 MGA contract 4,131 (148 ) 3,983 $ 531,359 $ (66,534 ) $ 464,825 Intangible assets Balance At December 31, 2016 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (8,832 ) 868 Customer relationships and customers lists - Ternian 13,330 (2,333 ) 10,997 $ 49,066 $ (11,165 ) $ 37,901 The estimated amortization expense of VOBA and intangible assets with a finite life is shown in the following table: VOBA Intangible assets Total 2018 $ 171,124 $ 13,025 $ 184,149 2019 26,722 11,606 38,328 2020 5,139 11,506 16,645 2021 3,853 11,506 15,359 2022 — 11,506 11,506 2023 and thereafter — 78,054 78,054 Total remaining amortization expense 206,838 137,203 344,041 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 206,838 $ 257,987 $ 464,825 The estimated remaining useful lives of finite lived intangible assets range from 1 to 15 years. The Company's impairment reviews of goodwill and indefinite lived intangibles did not result in the recognition of impairment losses for the years ended December 31, 2017 and 2016 . In 2015 , the Company recognized $13 million of impairment losses related to the wind-down all of its retail insurance operations in Australia. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | a) Fixed Maturities and Equities The amortized cost or cost and fair values of the Company's 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 December 31, 2017 Fixed maturities U.S. government and agency $ 1,727,643 $ 1,735 $ (16,909 ) $ 1,712,469 $ — Non-U.S. government 798,582 17,240 (9,523 ) 806,299 — Corporate debt 5,265,795 61,922 (29,851 ) 5,297,866 — Agency RMBS (1) 2,414,720 8,132 (27,700 ) 2,395,152 — CMBS (2) 776,715 4,138 (3,125 ) 777,728 — Non-Agency RMBS 45,713 1,917 (799 ) 46,831 (853 ) ABS (3) 1,432,884 5,391 (1,994 ) 1,436,281 — Municipals (4) 149,167 1,185 (972 ) 149,380 — Total fixed maturities $ 12,611,219 $ 101,660 $ (90,873 ) $ 12,622,006 $ (853 ) Equity securities Common stocks $ 22,836 $ 3,412 $ (590 ) $ 25,658 Exchange-traded funds 356,252 71,675 (294 ) 427,633 Bond mutual funds 173,779 9,440 (999 ) 182,220 Total equity securities $ 552,867 $ 84,527 $ (1,883 ) $ 635,511 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, the Company actively manages 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 the other investments portfolio, the Company also invests in limited partnerships (hedge funds, direct lending funds, private equity funds and real estate funds) and CLO equity tranched securities, which are all variable interests issued by VIEs (see Note 6(c) ' Other Investments '). For these variable interests, the Company does not have the power to direct the activities that are most significant to the economic performance of the VIEs therefore the Company is not the primary beneficiary of any of these VIEs. The maximum exposure to loss on these interests is limited to the amount of investment by the Company. The Company has not provided financial or other support with respect to these structured securities other than the 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 December 31, 2017 Maturity Due in one year or less $ 486,659 $ 484,663 3.8 % Due after one year through five years 4,906,207 4,912,189 38.9 % Due after five years through ten years 2,338,964 2,350,433 18.6 % Due after ten years 209,357 218,729 1.7 % 7,941,187 7,966,014 63.0 % Agency RMBS 2,414,720 2,395,152 19.0 % CMBS 776,715 777,728 6.2 % Non-Agency RMBS 45,713 46,831 0.4 % ABS 1,432,884 1,436,281 11.4 % Total $ 12,611,219 $ 12,622,006 100.0 % 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 December 31, 2017 Fixed maturities U.S. government and agency $ 194,916 $ (5,963 ) $ 1,389,792 $ (10,946 ) $ 1,584,708 $ (16,909 ) Non-U.S. government 62,878 (6,806 ) 204,110 (2,717 ) 266,988 (9,523 ) Corporate debt 407,300 (11,800 ) 2,041,845 (18,051 ) 2,449,145 (29,851 ) Agency RMBS 759,255 (17,453 ) 1,172,313 (10,247 ) 1,931,568 (27,700 ) CMBS 31,607 (703 ) 348,943 (2,422 ) 380,550 (3,125 ) Non-Agency RMBS 8,029 (788 ) 4,197 (11 ) 12,226 (799 ) ABS 57,298 (570 ) 392,170 (1,424 ) 449,468 (1,994 ) Municipals 11,230 (269 ) 65,632 (703 ) 76,862 (972 ) Total fixed maturities $ 1,532,513 $ (44,352 ) $ 5,619,002 $ (46,521 ) $ 7,151,515 $ (90,873 ) Equity securities Common stocks $ — $ — $ 3,202 $ (590 ) $ 3,202 $ (590 ) Exchange-traded funds — — 12,323 (294 ) 12,323 (294 ) Bond mutual funds — — 12,184 (999 ) 12,184 (999 ) Total equity securities $ — $ — $ 27,709 $ (1,883 ) $ 27,709 $ (1,883 ) 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 December 31, 2017 , 2,424 fixed maturities ( 2016 : 1,881 ) were in an unrealized loss position of $91 million ( 2016 : $197 million ) of which $7 million ( 2016 : $15 million ) was related to securities below investment grade or not rated. At December 31, 2017 , 627 securities ( 2016 : 330 ) had been in a continuous unrealized loss position for 12 months or greater and had a fair value of $1,533 million ( 2016 : $971 million ). Following a credit impairment review, it was concluded that these securities as well as the remaining securities in an unrealized loss position in the above table were temporarily impaired at December 31, 2017 , and were expected to recover in value as the securities approach maturity. Further, at December 31, 2017 , the Company did not intend to sell these securities in an unrealized loss position and it is more likely than not that the Company will not be required to sell these securities before the anticipated recovery of their amortized costs. Equity Securities At December 31, 2017 , 29 securities ( 2016 : 23 ) were in an unrealized loss position of $2 million ( 2016 : $12 million ). At December 31, 2017 , there were no securities ( 2016 : 3 securities) in a continuous unrealized loss position for 12 months or greater. Based on the impairment review process and the ability and intent to hold these securities for a reasonable period of time sufficient for a full recovery, the Company concluded that the above equities in an unrealized loss position were temporarily impaired at December 31, 2017 . b) Mortgage Loans The following table provides a breakdown of the Company's mortgage loans held-for-investment: December 31, 2017 December 31, 2016 Carrying Value % of Total Carrying Value % of Total Mortgage Loans held-for-investment: Commercial $ 325,062 100 % $ 349,969 100 % 325,062 100 % 349,969 100 % Valuation allowances — — % — — % Total Mortgage Loans held-for-investment $ 325,062 100 % $ 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. The Company has a high quality mortgage loan 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 held by the Company at December 31, 2017 . There are no past due amounts at December 31, 2017 . c) Other Investments The following tables provide a breakdown of the Company's other investments, together with additional information relating to the liquidity of each category: Fair Value Redemption Frequency (if currently eligible) Redemption Notice Period At December 31, 2017 Long/short equity funds $ 38,470 4 % Annually 60 days Multi-strategy funds 286,164 28 % Quarterly, Semi-annually 60-95 days Event-driven funds 39,177 4 % Annually 45 days Direct lending funds 250,681 25 % n/a n/a Private equity funds 68,812 7 % n/a n/a Real estate funds 50,009 5 % n/a n/a CLO-Equities 31,413 2 % n/a n/a Other privately held investments 46,430 5 % n/a n/a Overseas deposits 198,217 20 % n/a n/a Total other investments $ 1,009,373 100 % 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 Overseas deposits — — % 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 the Company's ability to redeem 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 the Company's redemption requests. At December 31, 2017 , $38 million ( 2016 : $60 million ), representing 11% ( 2016 : 12% ) of total hedge funds, relate to holdings where the Company is still within the lockup period. The expiration of these lockup periods range from March 2018 to March 2019. At December 31, 2017 , the Company had $137 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 December 31, 2017 , the Company 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 after the completion of the funds' investment term. These funds have investment terms ranging from 2 years to the dissolution of the underlying fund. At December 31, 2017 , the Company had $115 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 December 31, 2017 , the Company 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. The Company expects the overall holding period to be over 10 years . During 2015, the Company 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 December 31, 2017 , this commitment remains unfunded. It is not anticipated that the full amount of this fund will be drawn. During 2017, the Company made a $75 million commitment as a limited partner of an open-ended commercial mortgage income fund. At December 31, 2017, this commitment remains unfunded. Syndicate 2007 holds overseas deposits which include investments in private funds in which the underlying investments are primarily U.S. government, Non-U.S. government and corporate fixed maturities. The funds do not trade on an exchange therefore are not included within available for sale investments. d) Equity Method Investments During 2016, the Company 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, the Company expects 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, the Company has 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 the Company exercises significant influence over the operating and financial policies of this investee the Company accounts for its 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. For the year ended December 31, 2017 , the Company 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 loss of equity method investments in the Consolidated Statement of Operations. e) Net Investment Income Net investment income was derived from the following sources: Year ended December 31, 2017 2016 2015 Fixed maturities $ 312,662 $ 305,459 $ 294,725 Other investments 76,858 42,514 20,148 Equity securities 14,919 16,306 11,289 Mortgage loans 10,780 7,996 1,861 Cash and cash equivalents 10,057 9,209 8,572 Short-term investments 2,718 2,060 439 Gross investment income 427,994 383,544 337,034 Investment expenses (27,189 ) (30,209 ) (31,698 ) Net investment income $ 400,805 $ 353,335 $ 305,336 f) Net Realized Investment Gains (Losses) The following table provides an analysis of net realized investment gains (losses): Year ended December 31, 2017 2016 2015 Gross realized gains Fixed maturities and short-term investments $ 72,046 $ 86,267 $ 60,102 Equities 78,343 19,104 19,113 Gross realized gains 150,389 105,371 79,215 Gross realized losses Fixed maturities and short-term investments (98,442 ) (134,460 ) (143,702 ) Equities (959 ) (16,155 ) (8,543 ) Gross realized losses (99,401 ) (150,615 ) (152,245 ) Net OTTI recognized in net income (14,493 ) (26,210 ) (72,720 ) Change in fair value of investment derivatives (1) (8,269 ) 10,929 7,259 Net realized investment gains (losses) $ 28,226 $ (60,525 ) $ (138,491 ) (1) Refer to Note 8 'Derivative Instruments' The following table summarizes the OTTI recognized in net income by asset class: Year ended December 31, 2017 2016 2015 Fixed maturities: Non-U.S. government $ 8,187 $ 3,557 $ 3,538 Corporate debt 6,306 20,093 47,029 Non-Agency RMBS — — 111 ABS — — 124 14,493 23,650 50,802 Equity Securities Exchange-traded funds — 2,560 10,732 Bond mutual funds — — 11,186 — 2,560 21,918 Total OTTI recognized in net income $ 14,493 $ 26,210 $ 72,720 Fixed Maturities The following table provides a roll forward of credit losses ("credit loss table"), before income taxes, for which a portion of the OTTI charge was recognized in AOCI: Year ended December 31, 2017 2016 Balance at beginning of period $ 1,493 $ 1,506 Credit impairments recognized on securities not previously impaired — — Additional credit impairments recognized on securities previously impaired 13 20 Change in timing of future cash flows on securities previously impaired — — Intent to sell of securities previously impaired — — Securities sold/redeemed/matured (12 ) (33 ) Balance at end of period $ 1,494 $ 1,493 Credit losses are calculated based on the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to the impairment. The following provides a summary of the credit loss activities by asset class for the above table as well as the significant inputs and the methodology used to estimate these credit losses. U.S. Government, U.S. Agency and U.S. Agency RMBS: Unrealized losses on securities issued or backed (either explicitly or implicitly) by the U.S. government are not analyzed for OTTI. The Company have concluded that the possibility of any credit losses on these securities is highly unlikely due to the explicit U.S. government guarantee on certain securities (e.g. GNMA issuances) and, on others, the implicit guarantee that has been validated by past actions (e.g. U.S. government bailout of FNMA and FHLMC during the 2008 credit crisis). Although not analyzed for credit losses, the securities are still evaluated for intention to sell and likely requirement to sell. Non-U.S. Government: Non-U.S. government obligations are evaluated for credit loss primarily through qualitative assessments of the likelihood of credit loss using information such as duration and severity of unrealized losses, as well as credit ratings and price volatility. At December 31, 2017 , the Company's holdings in sovereign debt, including $185 million ( 2016 : $28 million ) relating to the eurozone countries, were substantially all investment-grade securities. The gross unrealized losses of $10 million at December 31, 2017 were mainly due to foreign exchange losses. Based on analysis performed, the Company does not anticipate any credit losses on non-U.S. government fixed maturities held at December 31, 2017 . In 2017 , the OTTI charges on non-U.S. government fixed maturities mainly related to unrealized foreign exchange losses on certain securities where forecasted recovery was uncertain. Corporate Debt: To estimate credit losses for corporate debt securities, the Company's projected cash flows are primarily driven by assumptions regarding the probability of default and the severity associated with those defaults. The Company's default and loss severity rates are based on credit rating, credit analysis, industry analyst reports and forecasts, Moody’s historical default data and any other data relevant to the recoverability of the security. In 2017 , the OTTI charges on corporate debt securities were mainly related to significant loss severity, unrealized foreign exchange losses on certain securities where forecasted recovery was uncertain, as well as the Company's intent to sell. CMBS: The Company's investments in CMBS are diversified and primarily rated AA or better, with a weighted average estimated subordination percentage of 29% at December 31, 2017 ( 2016 : 36% ). Based on discounted cash flows at December 31, 2017 , the current level of subordination is sufficient to cover the estimated loan losses on the underlying collateral of the CMBS. Non-agency RMBS: For non-agency RMBS, the Company's projected cash flows incorporated underlying data from widely accepted third-party data sources along with certain internal assumptions and judgments regarding the future performance of the security. These assumptions included the following: default, delinquency, loss severity and prepayment rates. The assumptions used to calculate the credit losses in 2017 have not changed significantly since December 31, 2016 . At December 31, 2017 , the fair value of the Company's non-agency RMBS was $47 million ( 2016 : $57 million ), consisting primarily of $34 million ( 2016 : $40 million ) of Prime and $8 million ( 2016 : $10 million ) of Alt-A MBS. The Company has concluded there are no credit losses anticipated for any of its non-agency RMBS at December 31, 2017 , other than those already recorded. ABS: The Company's investments in ABS at December 31, 2017 consist mainly of CLO debt tranched securities ("CLO Debt") purchased primarily as new issues during 2015 through 2017. Of these new issues all had credit ratings of AA or better. The Company utilizes a scenario-based approach to reviewing the CLO Debt portfolio based on the current asset market price. The Company also reviews subordination levels of its securities to determine their ability to absorb credit losses of underlying collateral. If losses are forecast to be below the subordination level for the tranche held by the Company, the security is determined not to be impaired. The Company has concluded that there are no credit losses anticipated for any CLO Debt at December 31, 2017 . Equity Securities There were no OTTI losses on equity securities in 2017. The OTTI losses on equity securities in 2016 are primarily due to the severity of their unrealized loss positions, for which the Company concluded the forecast recovery period was uncertain. The recognition of such losses does not necessarily indicate that sales will occur or that sales are imminent or planned. At December 31, 2017 , the fair value of the Company's equities was $636 million ( 2016 : $639 million ), which included $2 million ( 2016 : $12 million ) of gross unrealized losses. g) Restricted Assets In order to support the Company's obligations in regulatory jurisdictions where it operates as a non-admitted carrier, the Company provides collateral in the form of assets held in trust and, to a lesser extent, letters of credit (see Note 11(b) ' Debt and Financing Arrangement s'). In addition, the Company operates in the Lloyd’s market through its corporate member AXIS Corporate Capital UK Limited, which represents its participation in Syndicate 1686 and Novae Corporate Underwriting Limited, the sole corporate member of Syndicate 2007. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of business of Insurance and Reinsurance (Solvency II) ("Solvency II"). The capital provided to support underwriting, or Funds at Lloyd’s ("FAL"), may be satisfied by cash, certain investments and letters of credit provided by approved banks (see Note 12 'Commitments and Contingencies' and Note 21 ' Statutory Financial Information' ). Further, at December 31, 2017 collateral in trust for third party agreements included $1,120 million of fixed maturities and equity securities, and cash of $55 million held on deposit to support the underwriting activities of Syndicate 2007. At December 31, 2017 collateral in trust for third party agreements included cash of $140 million ( 2016 : $84 million ) held on deposit to support the underwriting activities of Syndicate 1686. The Company's restricted investments and cash primarily consist of high-quality fixed maturity and short-term investment securities. The fair value of the Company's restricted investments and cash primarily relates to these items, as noted in the table below. At December 31, 2017 2016 Collateral in Trust for inter-company agreements $ 3,310,180 $ 2,877,823 Collateral for secured letter of credit facility 386,451 448,366 Funds at Lloyd's 1,192,717 382,611 Collateral in Trust for third party agreements 2,085,443 508,262 Securities on deposit with regulatory authorities 53,925 50,290 Total restricted investments $ 7,028,716 $ 4,267,352 h) Reverse Repurchase Agreements At December 31, 2017 , the Company held $37 million ( 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 on the Company's 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, the Company receives principal and interest income. The Company monitors 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 | 12 Months Ended |
Dec. 31, 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 the Company has 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 the Company's 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 the Company to change the selection of valuation technique (from market to cash flow approach) or may cause the Company 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 the Company's financial instruments as well as the classification of the fair values of financial instruments in the fair value hierarchy are described in detail below. Fixed Maturities At each valuation date, the Company uses the market approach valuation technique to estimate the fair value of the 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 the Company maintains a vendor hierarchy by asset type based on historical pricing experience and vendor expertise. When prices are unavailable from pricing services, the Company obtains 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 the Company's 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, the Company obtains 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, the Company obtains 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, the Company obtains 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. In 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 redemptions 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 the fair values of these securities are estimated using a liquidation valuation. Overseas deposits include investments in private funds held by Syndicate 2007 in which the underlying investments are primarily U.S. government, Non-U.S. government and corporate fixed maturities. The funds do not trade on an exchange therefore are not included within available for sale investments. As the significant inputs used to price the underlying investments are observable market inputs, the fair values of overseas deposits are classified as Level 2. 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 the Company's 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, the Company obtains non-binding quotes from broker-dealers to estimate the fair values of these securities. Pricing is generally unavailable where 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 the Company's 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 Significant Other Observable Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At December 31, 2017 Assets Fixed maturities U.S. government and agency $ 1,658,622 $ 53,847 $ — $ — $ 1,712,469 Non-U.S. government — 806,299 — — 806,299 Corporate debt — 5,244,969 52,897 — 5,297,866 Agency RMBS — 2,395,152 — — 2,395,152 CMBS — 777,728 — — 777,728 Non-Agency RMBS — 46,831 — — 46,831 ABS — 1,436,281 — — 1,436,281 Municipals — 149,380 — — 149,380 1,658,622 10,910,487 52,897 — 12,622,006 Equity securities Common stocks 25,658 — — — 25,658 Exchange-traded funds 427,633 — — — 427,633 Bond mutual funds — 182,220 — — 182,220 453,291 182,220 — — 635,511 Other investments Hedge funds (1) — — — 363,811 363,811 Direct lending funds — — — 250,681 250,681 Private equity funds — — — 68,812 68,812 Real estate funds — — — 50,009 50,009 Other privately held investments — — 46,430 — 46,430 CLO-Equities — — 31,413 — 31,413 Overseas deposits — 198,217 — — 198,217 — 198,217 77,843 733,313 1,009,373 Short-term investments — 83,661 — — 83,661 Other assets Derivative instruments (see Note 8) — 5,125 — — 5,125 Insurance-linked securities — — 25,090 — 25,090 Total Assets $ 2,111,913 $ 11,379,710 $ 155,830 $ 733,313 $ 14,380,766 Liabilities Derivative instruments (see Note 8) $ — $ 2,876 $ 11,510 $ — $ 14,386 Cash settled awards (see Note 16) — 21,535 — — 21,535 Total Liabilities $ — $ 24,411 $ 11,510 $ — $ 35,921 (1) Includes Long/short equity, Multi-strategy and Event-driven funds. Quoted Prices in Active Markets Significant Other Observable 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 (1) — — — 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 Overseas deposits — — — — — — — 102,842 727,377 830,219 Short-term investments — 127,461 — — 127,461 Other assets Derivative instruments (see Note 8) — 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 8) $ — $ 9,076 $ 6,500 $ — $ 15,576 Cash settled awards (see Note 16) — 48,432 — — 48,432 Total Liabilities $ — $ 57,508 $ 6,500 $ — $ 64,008 (1) Includes Long/short equity, Multi-strategy and Event-driven funds. During 2017 and 2016 , the Company had no transfers between Levels 1 and 2. Except certain fixed maturities and insurance-linked securities which are priced using broker-dealer quotes (underlying inputs are not available), the following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 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 $ 29,604 Discounted cash flow Default rates 3.8% 3.8% Loss severity rate 35% 35% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years $ 1,809 Liquidation value Fair value of collateral 100% 100% Discount margin 0.1% - 16.6% 2.8% Other investments - Other privately held investments $ 46,430 Discounted cash flow Discount rate 6.0% - 8.5% 7.5% Derivatives - Other underwriting-related derivatives $ (11,510 ) Discounted cash flow Discount rate 2.4% 2.4% 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 CLO-Equities held by the Company. Accordingly, fair values of investments in CLO-Equities are determined using models. Given that all of the Company's direct investments in CLO-Equities are past their reinvestment period, there is uncertainty regarding the remaining time until maturity. As such the Company's 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 the Company's 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 would 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, the Company's 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 the Company's CLO-Equity portfolio. In order to assess the reasonableness of the inputs the Company uses in its models, the Company maintains an understanding of current market conditions, historical results, as well as emerging trends that may impact future cash flows. In addition, the assumptions the Company uses in its models are updated through regular communication with industry participants and ongoing monitoring of the deals in which the Company participates (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 significantly lower (higher) fair value measurement for other privately held securities. Where relevant, the Company also considers 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 that are used in the discounted cash flow models, the Company maintains 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 the Company uses in the discounted cash flow model, the Company maintains an understanding of current market conditions, historical results, as well as contract specific information that may impact future cash flows. The following table presents 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 net income (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/loss (3) Year ended December 31, 2017 Fixed maturities Corporate debt $ 75,875 $ 2,324 $ (2,721 ) $ (503 ) $ (1,524 ) $ 17,062 $ (22,903 ) $ (14,713 ) $ 52,897 $ — CMBS 3,061 — — — — — — (3,061 ) — — ABS 17,464 — (18,949 ) — 1,485 — — — — — 96,400 2,324 (21,670 ) (503 ) (39 ) 17,062 (22,903 ) (17,774 ) 52,897 — Other investments Other privately held investments 42,142 — — 1,584 — 2,704 — — 46,430 1,584 CLO-Equities 60,700 — — 2,558 — — — (31,845 ) 31,413 2,558 102,842 — — 4,142 — 2,704 — (31,845 ) 77,843 4,142 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — 67 — — — — 25,090 67 27,555 — — 720 — — — (3,185 ) 25,090 67 Total assets $ 226,797 $ 2,324 $ (21,670 ) $ 4,359 $ (39 ) $ 19,766 $ (22,903 ) $ (52,804 ) $ 155,830 $ 4,209 Other liabilities Derivative instruments 6,500 — — 9,320 — 12,472 — (16,782 ) 11,510 (962 ) Total liabilities $ 6,500 $ — $ — $ 9,320 $ — $ 12,472 $ — $ (16,782 ) $ 11,510 $ (962 ) Year ended December 31, 2016 Fixed maturities Corporate debt $ 38,518 $ 5,733 $ (4,955 ) $ (1,037 ) $ 1,296 $ 48,298 $ (4,371 ) $ (7,607 ) $ 75,875 $ — CMBS 10,922 — (2,516 ) — (192 ) — — (5,153 ) 3,061 — ABS — — — — (917 ) 18,381 — — 17,464 — 49,440 5,733 (7,471 ) (1,037 ) 187 66,679 (4,371 ) (12,760 ) 96,400 — Other investments Other privately held investments — — — (2,263 ) — 44,405 — — 42,142 (2,263 ) CLO-Equities 27,257 36,378 — 18,976 — — — (21,911 ) 60,700 18,976 27,257 36,378 — 16,713 — 44,405 — (21,911 ) 102,842 16,713 Other assets Derivative instruments 4,395 — — 6,772 — 1,289 — (9,924 ) 2,532 1,200 Insurance-linked securities 24,925 — — 98 — — — — 25,023 98 29,320 — — 6,870 — 1,289 — (9,924 ) 27,555 1,298 Total assets $ 106,017 $ 42,111 $ (7,471 ) $ 22,546 $ 187 $ 112,373 $ (4,371 ) $ (44,595 ) $ 226,797 $ 18,011 Other liabilities Derivative instruments 10,937 — — 1,862 — 2,723 — (9,022 ) 6,500 (654 ) Total liabilities $ 10,937 $ — $ — $ 1,862 $ — $ 2,723 $ — $ (9,022 ) $ 6,500 $ (654 ) (1) Gains and losses included in net income on fixed maturities are included in net realized investment gains (losses). Gains and (losses) included in net income on other investments are included in net investment income. Gains (losses) on weather derivatives and other underwriting-related derivatives included in net income 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 values of the securities at the end of the reporting period. Transfers into Level 3 from Level 2 The transfers into Level 3 from Level 2 made during 2017 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities. The transfers to Level 3 from Level 2 made during 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 December 31, 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 2017 and 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, the Company estimates 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, the Company does not typically have a reporting lag in fair value measurements of these funds. Historically, the Company's 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 the Company's hedge funds, valuation statements are typically released on a three month reporting lag therefore the Company estimates the 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, the Company typically has a reporting lag in fair value measurements of these funds. In 2017, funds reported on a lag represented 44% ( 2016 : 35% ) of the Company's total other investments balance. The Company often does 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, the Company performs a number of monitoring procedures on a quarterly basis, to assess the quality of the information provided by fund managers and fund 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 the Company's fair value estimates against subsequently received NAVs. Backtesting involves comparing the Company's 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 December 31, 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 mortgage loans held-for-investment approximated their fair value at December 31, 2017 . The fair values of mortgage loans are primarily determined by estimating expected future cash flows and discounting them using current interest rates for similar mortgage loans with similar credit risk, or are determined from pricing for similar loans. As mortgage loans are not actively traded their fair values are classified as Level 3. At December 31, 2017 , senior notes are recorded at amortized cost with a carrying value of $1,341 million ( 2016 : $993 million ) and a fair value of $1,412 million ( 2016 : $1,050 million ). The fair values of the senior notes are based on prices obtained from a third party pricing service and are determined using the spread above the risk-free yield curve. These spreads are generally obtained from the new issue market, secondary trading and broker-dealer quotes. As these spreads and the yields for the risk-free yield curve are observable market inputs, the fair values of senior notes are classified as Level 2. At December 31, 2017 , notes payable are recorded at amortized cost with a carrying value of $36 million and a fair value of $36 million . The fair values of the notes payable are primarily determined by estimating expected future cash flows and discounting them using current interest rates for notes payable with similar credit risk. As notes payable are not actively traded their fair values are classified as Level 3. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | The balance sheet classification of derivatives recorded at fair value is shown in the following table. 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 the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges under current accounting guidance. At December 31, 2017 At December 31, 2016 Derivative Notional Amount Asset Derivative Fair Value (1) Liability Derivative Fair Value (1) Derivative Notional Amount Asset Derivative Fair Value (1) Liability Derivative Fair Value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 137,422 $ 10 $ 619 $ 195,979 $ 12,331 $ 87 Interest rate swaps 191,000 448 1,556 — — — Relating to underwriting portfolio: Foreign exchange forward contracts 698,959 4,667 701 492,899 2,034 8,989 Weather-related contracts — — — 67,957 2,532 6,500 Commodity contracts — — — — — — Other underwriting-related contracts 85,000 — 11,510 — — — Total derivatives $ 5,125 $ 14,386 $ 16,897 $ 15,576 (1) Asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. Offsetting Assets and Liabilities The Company's 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. A reconciliation of 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, is shown in the following table. December 31, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 8,178 $ (3,053 ) $ 5,125 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,439 $ (3,053 ) $ 14,386 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. For information on reverse repurchase agreements see Note 6 'Investments' . a) Relating to Investment Portfolio Foreign Currency Risk Within the investment portfolio the Company is exposed to foreign currency risk. Accordingly, the fair values for the investment portfolio are partially influenced by the change in foreign exchange rates. The Company may enter into foreign currency forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. Interest Rate Risk The Company's investment portfolio contains a large percentage of fixed maturities which expose it to significant interest rate risk. As part of overall management of this risk, the Company may use interest rate swaps. b) Relating to Underwriting Portfolio Foreign Currency Risk The Company's (re)insurance subsidiaries and branches operate in various foreign countries. Consequently, some of its business is written in currencies other than the U.S. dollar therefore, the underwriting portfolio is exposed to significant foreign currency risk. The Company manages foreign currency risk by seeking to match its foreign-denominated net liabilities under (re)insurance contracts with cash and investments that are denominated in such currencies. The Company may also use derivative instruments, specifically forward contracts and currency options, to economically hedge foreign currency exposures. Weather Risk During 2013, the Company began to write derivative-based risk management products designed to address weather risks with the objective of generating profits on a portfolio basis. The majority of this business consists of receiving a payment at contract inception in exchange for bearing the risk of variations in a quantifiable weather-related phenomenon, such as temperature. Where a client wishes to minimize the upfront payment, these transactions may be structured as swaps or collars. In general, the Company's 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, the Company may also purchase weather derivatives. Effective July 1, 2017, the Company no longer writes derivative-based risk management products which address weather risks. Commodity Risk Within the Company's (re)insurance portfolio it is exposed to commodity price risk. The Company may hedge a portion of this price risk by entering into commodity derivative contracts. Other Underwriting-Related Risks The Company enters into insurance and reinsurance contracts that are accounted for as derivatives. These insurance or reinsurance contracts provide indemnification to an insured or cedant as a result of a change in a variable as opposed to an identifiable insurable event. The Company considers these contracts to be part of its underwriting operations. The total unrealized and realized gains (losses) recognized in net income for derivatives not designated as hedges are shown in the following table: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative 2017 2016 2015 Relating to investment portfolio: Foreign exchange forward contracts Net realized investment gains (losses) $ (6,935 ) $ 10,929 $ 11,265 Interest rate swaps Net realized investment gains (losses) (1,334 ) — (4,006 ) Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 25,383 (8,179 ) (25,412 ) Weather-related contracts Other insurance related income (loss) (9,629 ) 4,910 (3,005 ) Commodity contracts Other insurance related income (loss) — (2,382 ) (1,814 ) Other underwriting-related contracts Other insurance related income (loss) 1,476 — — Total $ 8,961 $ 5,278 $ (22,972 ) |
RESERVE FOR LOSSES AND LOSS EXP
RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserving Methodology The reserving process begins with the collection and analysis of paid and incurred claim data for each of the Company's segments. The segmental data is disaggregated by reserving class and further disaggregated by underwriting year (i.e. the year in which the contract generating the premium and losses incepted). Underwriting year information is used to analyze business and subsequently allocate reserves to the respective accident years. Reserve classes are selected to ensure that the underlying contracts have homogeneous loss development characteristics, while remaining large enough to make the estimation of trends credible. This data, in addition to industry benchmarks, serves as a key input to many of the methods employed by the Company's actuaries. The relative weights assigned to its own historical loss data versus industry data vary according to the length of the development profile for the reserving class being evaluated. ( See 'Net Incurred and Paid Claims Development Tables By Accident Year' below for further details by reserve class.) The following tables reconcile reserve classes to the lines of business categories and the expected claim tails: Insurance Segment Reported Lines of Business Reserve Classes Tail Property Marine Terrorism Aviation Credit and Political Risk Professional Lines Liability Accident and Health Discontinued lines - Novae Property and Other Short X X X X Marine Short X Aviation Short X Credit and Political Risk Medium X Professional Lines Medium X X Liability Long X X Reinsurance Segment Reported Lines of Business Reserve Classes Tail Catastrophe Property Credit and Surety Professional Lines Motor Liability Engineering Agriculture Marine and Other Discontinued lines - Novae Property and Other Short X X X X X X Credit and Surety Medium X Professional Lines Medium X Motor Long X X Liability Long X X The Company has presented separate loss development tables for the Aviabel and Novae business prospectively from the date of acquisition. Multiple actuarial methods are available to estimate ultimate losses. Each method has its own assumptions and its own advantages and disadvantages, with no single estimation method being better than the others in all situations and no one set of assumption variables being meaningful for all reserve classes. The relative strengths and weaknesses of the particular estimation methods when applied to a particular group of claims can also change over time. The following is a brief description of the reserve estimation methods commonly employed by the Company's actuaries: • Expected Loss Ratio Method ("ELR Method"): This method estimates ultimate losses for an accident year or underwriting year by applying an expected loss ratio to the earned or written premium for that year. Generally, expected loss ratios are based on one or more of (a) an analysis of historical loss experience to date, (b) pricing information and (c) industry data, adjusted as appropriate, to reflect changes in rates and terms and conditions. This method is insensitive to actual incurred losses for the accident year or underwriting year in question and is, therefore, often useful in the early stages of development when very few losses have been incurred. Conversely, the lack of sensitivity to incurred/paid losses for the accident year or underwriting year in question means that this method is usually inappropriate in later stages of an accident year or underwriting year’s development. • Loss Development Method (also referred to as the Chain Ladder Method or Link Ratio Method): This method assumes that the losses incurred/paid for each accident year or underwriting year at a particular development stage follow a relatively similar pattern. It assumes that on average, every accident year or underwriting year will display the same percentage of ultimate losses incurred/paid at the same point in time after the inception of that year. The percentages incurred/paid are established for each development stage (e.g. 12 months, 24 months, etc.) after examining historical averages from historical loss development data and/or external industry benchmark information. Ultimate losses are then estimated by multiplying the actual incurred/paid losses by the reciprocal of the established incurred/paid percentage. The strengths of this method are that it reacts to loss emergence/payments and that it makes full use of historical claim emergence/payment experience. However, this method has weaknesses when the underlying assumption of stable loss development/payment patterns is not valid. This could be the consequence of changes in business mix, claim inflation trends or claim reporting practices and/or the presence of large claims, amongst other things. Furthermore, this method tends to produce volatile estimates of ultimate losses where there is volatility in the underlying incurred/paid patterns. In particular, where the expected percentage of incurred/paid losses is low, small deviations between actual and expected claims can lead to very volatile estimates of ultimate losses. As a result, this method is often unsuitable at early development stages for an accident year or underwriting year. • Bornhuetter-Ferguson Method ("BF Method"): This method can be seen as a combination of the ELR and Loss Development Methods, under which the Loss Development Method is given progressively more weight as an accident year or underwriting year matures. The main advantage of the BF Method is that it provides a more stable estimate of ultimate losses than the Loss Development Method at earlier stages of development, while remaining more sensitive to emerging loss development than the ELR Method. In addition, the BF Method allows for the incorporation of external market information through the use of expected loss ratios, whereas the Loss Development Method does not incorporate such information. As part of the loss reserve review process, the Company's actuaries employ the estimation method(s) that they believe will produce the most reliable estimate of ultimate losses, at that particular evaluation date, for each reserve class and accident year or underwriting year combination. Often, this is a blend (i.e. weighted average) of the results of two or more appropriate actuarial methods. These ultimate loss estimates are generally utilized to evaluate the adequacy of ultimate loss estimates for previous accident or underwriting years, as established in the prior reporting period. For the initial estimate of the current accident or underwriting year, the available claim data is typically insufficient to produce a reliable estimate of ultimate losses. As a result, initial estimates for an accident or underwriting year are generally based on the ELR Method for longer tailed lines and a BF Method for shorter tailed lines. The initial ELR for each reserve class is established collaboratively by actuaries, underwriters and management at the start of the year as part of the planning process, taking into consideration prior accident years’ or underwriting years' experience and industry benchmarks, adjusted after considering factors such as exposure trends, rate differences, changes in contract terms and conditions, business mix changes and other known differences between the current year and prior accident or underwriting years. The initial expected loss ratios for a given accident or underwriting year may be modified over time if the underlying assumptions, such as loss development or premium rate changes, differ from the original assumptions. The use of the above actuarial methods requires the Company to make certain explicit assumptions, the most significant of which are: (1) expected loss ratios and (2) loss development patterns. In earlier years, significant reliance was placed on industry benchmarks in establishing expected loss ratios and loss development patterns. Over time, more reliance has been placed on historical loss experience in establishing these ratios and patterns where the Company believes the weight of its own actual experience has become sufficiently credible for consideration. In establishing expected loss ratios for the insurance segment, consideration is given to a number of other factors, including exposure trends, rate adequacy on new and renewal business, ceded reinsurance costs, changes in claims emergence and underwriters’ view of terms and conditions in the market environment. For the reinsurance segment, expected loss ratios are based on a contract-by-contract review, which considers information provided by clients together with estimates provided by underwriters and actuaries about the impact of changes in pricing, terms and conditions and coverage. Market experience of some classes of business as compiled and analyzed by an independent actuarial firm has also been considered, as appropriate. The weight given to experience differs for each of the three claim tails. Short-tail business generally includes exposures for which losses are usually known and paid within a relatively short period of time after the underlying loss event has occurred. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one to three years. The key actuarial assumptions for short-tail business in early accident years were primarily developed with reference to industry benchmarks for both expected loss ratios and loss development patterns. As the Company's own historical loss experience amassed, it gained credibility and became relevant for consideration in establishing these key actuarial assumptions. As a result, the Company gradually increased the weighting assigned to its own historical experience in selecting the expected loss ratios and loss development patterns utilized to establish estimates of ultimate losses for an accident year. Due to the relatively short reporting and settlement patterns for short-tail business, more weight is generally placed upon experience-based methods and other qualitative considerations in establishing reserves for both recent and more mature accident years. Medium-tail business generally has claim reporting and settlement periods longer than those of short-tail reserve classes. For the Company's earliest accident and underwriting years, initial key actuarial expected loss ratio and loss development assumptions were established utilizing industry benchmarks. Due to the longer claim tail, the length of time required to develop its own credible loss history for use in the reserve process is greater for medium-tail business than for short-tail business. As a result, the number of years where the Company has relied heavily on industry benchmarks to establish its key actuarial assumptions is greater for medium-tail business. The claim tails for long-tail business, in contrast to short and medium-tail business, is expected to be notably longer, as claims are often reported and ultimately paid or settled years, or even decades, after the related loss events occur. As a general rule, estimates of accident year or underwriting year ultimate losses for long-tail business are notably more uncertain than those for short and medium-tail business. To date, key actuarial assumptions for long-tail business have been derived extensively from industry benchmarks supplemented with the Company own historical experience. Given the Company's relatively short operating history in comparison to the development tail for this business, the Company does not believe that its own historical loss development for long-tail business has amassed an appropriate volume to serve as a fully credible input into the key actuarial assumptions previously outlined. While industry benchmarks that the Company believes reflect the nature and coverage of its business are considered, actual loss experience may differ from the benchmarks based on industry averages. Due to the length of the development tail for this business, reserve estimates for most accident years and underwriting years are predominantly based on the BF or ELR method and the consideration of qualitative factors. The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. Rather, loss reserves for such events are estimated by management in collaboration with actuaries, claim handlers and underwriters after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially be impacted by the catastrophic event. This in-depth analysis may rely on several sources of information, including: • estimates of the size of insured industry losses from the catastrophic event and the Company's corresponding market share; • a review of portfolio of contracts performed to identify those contracts which may be exposed to the catastrophic event; • a review of modeled loss estimates based on information previously reported by customers and brokers, including exposure data obtained during the underwriting process; • discussions of the impact of the event with customers and brokers and • catastrophe bulletins published by various independent statistical reporting agencies. A blend of these information sources is generally used to arrive at aggregate estimates of the ultimate losses arising from the catastrophic event. In subsequent reporting periods, changes in paid and incurred losses in relation to each significant catastrophe are reviewed and adjustments are made to estimates of ultimate losses for each event if there are developments that are different from previous expectations. Adjustments are recorded in the period in which they are identified. The Company's reserving process involves the collaboration of underwriting, claims, actuarial, legal, ceded reinsurance and finance departments, includes various segmental committee meetings and culminates with the approval of a single point best estimate by the Company's Group Reserving Committee, which comprises senior management. In selecting this best estimate, management considers actuarial estimates and applies informed judgment regarding qualitative factors that may not be fully captured in these actuarial estimates. Such factors include, but are not limited to: the timing of the emergence of claims, volume and complexity of claims, social and judicial trends, potential severity of individual claims and the extent of internal historical loss data versus industry information. While these qualitative factors are considered in arriving at the point estimate, no specific provisions for qualitative factors are established. Reserve for Losses and Loss Expenses Gross reserve for losses and loss expenses comprise the following: As of December 31, 2017 2016 Reserve for reported losses and loss expenses $ 5,137,659 $ 3,358,514 Reserve for losses incurred but not reported 7,859,894 6,339,313 Reserve for losses and loss expenses $ 12,997,553 $ 9,697,827 Reserve Roll-Forward The following table presents a reconciliation of beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses for the years indicated: Year ended December 31, 2017 2016 2015 Gross reserve for losses and loss expenses, beginning of year $ 9,697,827 $ 9,646,285 $ 9,596,797 Less reinsurance recoverable on unpaid losses, beginning of year (2,276,109 ) (2,031,309 ) (1,890,280 ) Net reserve for unpaid losses and loss expenses, beginning of year 7,421,718 7,614,976 7,706,517 Net incurred losses and loss expenses related to: Current year 3,487,826 2,496,574 2,419,247 Prior years (200,054 ) (292,377 ) (243,048 ) 3,287,772 2,204,197 2,176,199 Net paid losses and loss expenses related to: Current year (703,796 ) (428,153 ) (343,063 ) Prior years (1,880,882 ) (1,763,696 ) (1,709,659 ) (2,584,678 ) (2,191,849 ) (2,052,722 ) Foreign exchange and other 1,713,227 (205,606 ) (215,018 ) Net reserve for unpaid losses and loss expenses, end of year 9,838,039 7,421,718 7,614,976 Reinsurance recoverable on unpaid losses, end of year 3,159,514 2,276,109 2,031,309 Gross reserve for losses and loss expenses, end of year $ 12,997,553 $ 9,697,827 $ 9,646,285 The Company writes business with loss experience generally characterized as low frequency and high severity in nature, which can result in volatility in its financial results. During 2017 , 2016 and 2015 , respectively, the Company recognized net losses and loss expenses, net of reinstatement premiums, of $835 million , $204 million and $100 million attributable 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 of 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 100% ownership interest in Aviabel. At December 31, 2017, foreign exchange and other included reserves for losses and loss expenses of $79 million and reinsurance recoverables on unpaid and paid losses of $5 million related to this acquisition. On October 2, 2017, the Company acquired 100% ownership interest in Novae. At December 31, 2017, foreign exchange and other included reserves for losses and loss expenses of $2,126 million and reinsurance recoverables on unpaid and paid losses of $788 million related to this acquisition. During April 2016, the Company entered into a quota share and adverse development cover reinsurance agreement, a retroactive contract which was deemed to have met the established criteria for retroactive reinsurance accounting. At December 31, 2016, foreign exchange and other included reinsurance recoverables of $150 million related to this reinsurance agreement. Prior Year Development Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. Such development is summarized by segment in the following table: Insurance Reinsurance Total Year ended December 31, 2017 $ 48,969 $ 151,085 $ 200,054 Year ended December 31, 2016 55,905 236,472 292,377 Year ended December 31, 2015 23,447 219,601 243,048 Short-tail business Short-tail business includes the underlying exposures in property and other, marine and aviation reserve classes within the insurance segment and the property and other reserve class within the reinsurance segment. Development from these classes contributed $60 million , $148 million and $152 million total net favorable prior year reserve development in 2017 , 2016 and 2015 , respectively, and primarily reflected the recognition of better than expected loss emergence in the years. Medium-tail business Medium-tail business consists primarily of insurance and reinsurance professional reserve classes, credit and political risk insurance reserve class, and credit and surety reinsurance reserve class. The reinsurance professional reserve class recognized $44 million , $30 million and $38 million of net favorable prior year development in 2017 , 2016 and 2015 , respectively. The net favorable prior year loss developments on this reserve class continued to reflect the generally favorable experience on earlier accident years as the Company continued to transition to more experience based methods. As loss experience on these accident years has generally been better than expected, this resulted in the recognition of net favorable prior year reserve development. The insurance professional reserve class recorded net favorable prior year development of $26 million in 2017 reflecting the generally favorable experience on earlier accident years as the Company transitions to more experienced based methods. As loss experience has generally been better than expected, this resulted in the recognition of net favorable prior year reserve development. The insurance professional reserve class recorded net favorable prior year reserve development of $14 million in 2016 , also driven by overall better than expected development. The insurance professional reserve class recorded adverse prior year development of $14 million in 2015 due to reserve strengthening on the Australian book of business during the three months ended September 30, 2015. The reinsurance credit and surety reserve class recorded net favorable prior year reserve development of $33 million , $10 million , and $27 million in 2017 , 2016 , and 2015 , respectively due to the recognition of generally better than expected loss emergence. The credit and political risk reserve class recorded net adverse development of $15 million in 2015 primarily related to an increase in loss estimates for one specific claim. Long-tail business Long-tail business consists primarily of liability and motor reserve classes. The motor reserve class contributed net favorable prior year reserve development of $1 million , $55 million and $37 million , in 2017 , 2016 and 2015 , respectively. The net favorable prior year reserve development on the motor reserve class in 2016 and 2015 related to favorable loss emergence trends on several classes of business spanning multiple accident years. Net favorable prior year development in 2017 was impacted by the U.K. Ministry of Justice's 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% . The reinsurance liability reserve classes contributed net favorable prior year development of $43 million , $44 million and $46 million in 2017 , 2016 and 2015 , respectively. The net favorable prior year development primarily reflected the progressively increased weight given by management to the generally favorable emerging loss experience on earlier accident years. This favorable prior year development was partially offset by net adverse prior year development in the insurance liability reserve class of $8 million , $8 million and $27 million in 2017 , 2016 and 2015 , respectively, primarily related to reserve strengthening within the excess casualty book. In particular, the adverse development during 2015 was mainly driven by a higher frequency of large auto liability claims. At December 31, 2017 net reserve for losses and loss expenses includes estimated amounts for numerous catastrophe events. The magnitude and/or complexity of losses arising from certain of these events, in particular Hurricanes Harvey, Irma and Maria, the two earthquakes in Mexico and the wildfires in Northern and Southern California in 2017, inherently increases the level of uncertainty and, therefore, the level of management judgment involved in arriving at estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from current estimates. Net Incurred and Paid Claims Development Tables By Accident Year The following tables present net incurred and paid claims development by accident year, total incurred-but-not-reported liabilities plus expected development on reported claims, cumulative reported claims frequency and claims duration for each reserve class. The development triangles are presented on an accident year basis for both the insurance and reinsurance segments. The Company does not discount unpaid losses and loss expense reserves. Non-U.S. dollar denominated loss data is converted to U.S. dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates may cause material shifts in loss development. Reserves for losses and loss expenses, disclosed in the Consolidated Balance Sheets, are also revalued using the exchange rate at the balance sheet date. The Company has presented separate loss development tables for the Aviabel and Novae business prospectively from the date of acquisition. The prospective treatment for the acquisition of Aviabel and Novae was adopted primarily due to the data necessary to produce the loss development tables by accident year not being available prior to the acquisition date. With regard to establishing the fair value of reserves for losses and loss expenses for Novae at the acquisition date, weight was given to the observable value of these reserves based on a Reinsurance to Close (“RITC”) transaction of the Syndicate’s 2015 and prior years of account, which was completed prior to the allocation of purchase price. Management made no change to the initial estimate when establishing its best estimate of reserves for losses and loss expenses at December 31, 2017. This is consistent with the Company's general approach of recognizing all or part of the anticipated cost of third party liability commutations if the transaction has either completed or is considered sufficiently likely to be completed in the near term. To the extent that the Company enters into a disposition, the effects of the disposition are reported on a retrospective basis by removing the balances associated with the disposed of business. There are many considerations in establishing loss reserves and an attempt to evaluate loss reserves using solely the data presented in these tables could be misleading. The Company cautions against mechanical application of standard actuarial methodologies to project ultimate losses using data presented in this disclosure. Insurance Segment The reporting of cumulative claims frequency for the reserve classes within the insurance segment has been measured by counting the number of unique claim references including claim references assigned to nil and nominal case reserves. Claim references are grouped by claimant by loss event for each class of business. For certain insurance facilities and business produced by managing general agents where underlying data is reported to the Company in an aggregated format, the information necessary to provide cumulative claims frequency is not available therefore reporting of claims frequency is deemed to be impracticable. Insurance Property and Other This reserve class includes property, terrorism as well as accident and health. The property line of business provides physical loss or damage, business interruption and machinery breakdown cover for virtually all types of property, including commercial buildings, residential premises, construction projects and onshore energy installations. This line of business includes both primary and excess risks, some of which are catastrophe-exposed. The terrorism line of business provides cover for physical damage and business interruption of an insured following an act of terrorism and includes kidnap & ransom, and crisis management insurance. The accident and health line of business includes accidental death, travel insurance and specialty health products for employer and affinity groups, as well as accident and health reinsurance for catastrophic or per life events on a quota share and/or excess of loss basis, with aggregate and/or per person deductibles. The accident and health line of business has contributed an increasing portion of the premium earned within this reserve class since 2010 with a large increase in reported claims observed from 2012. In particular, an increase in limited benefits medical business written in 2017 has resulted in a significant increase in reported claims observed in that year. In general, reporting and payment patterns are relatively short-tailed although they can be volatile due to the incidence of catastrophe events. Insurance Property and Other Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 312,164 $ 260,206 $ 251,722 $ 242,139 $ 226,472 $ 225,007 $ 220,616 $ 218,851 $ 217,846 $ 216,806 $ 982 1,573 2009 117,662 99,367 89,993 82,683 80,718 78,501 78,720 78,368 78,623 971 1,483 2010 175,554 155,343 147,881 122,472 116,888 116,020 115,740 115,289 687 2,310 2011 380,921 356,524 333,911 313,281 310,404 309,197 309,638 2,836 3,737 2012 461,790 472,088 448,763 428,524 424,475 418,869 9,739 27,701 2013 419,392 414,394 387,093 381,550 380,800 6,117 51,238 2014 463,732 459,996 436,130 417,691 6,539 60,151 2015 373,256 373,071 355,883 12,284 43,790 2016 523,086 574,267 40,961 66,488 2017 939,565 333,630 237,332 Total $ 3,807,431 Insurance Property and Other Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 76,558 $ 150,470 $ 172,320 $ 184,038 $ 211,002 $ 213,569 $ 215,628 $ 215,121 $ 215,071 $ 214,663 2009 31,379 60,166 68,768 72,622 73,538 74,636 76,865 77,187 77,466 2010 48,624 87,059 95,747 106,593 110,785 110,934 110,709 110,763 2011 87,525 217,578 277,260 299,567 298,766 298,559 299,248 2012 107,358 278,870 343,503 366,854 374,485 379,696 2013 129,157 304,207 347,531 361,209 372,338 2014 169,961 341,023 393,868 401,482 2015 123,126 281,377 317,850 2016 174,455 442,007 2017 314,839 Total 2,930,352 All outstanding liabilities before 2008, net of reinsurance 3,875 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 880,954 Insurance Property and Other Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 34.4% 40.6% 12.2% 5.4% 3.6% 0.8% 0.9% 0.1% 0.2% (0.2)% Insurance Marine This reserve class includes the marine line of business which provides cover for traditional marine classes, including offshore energy, cargo, liability, recreational marine, fine art, specie as well as hull and war. Offshore energy includes physical damage, business interruption, operators extra expense and liability coverage for all aspects of offshore upstream energy, from exploration and construction through the operation and distribution phases. The complex nature of claims arising under marine policies tends to result in reporting and payment patterns that are longer than those of the property and other class. Exposure to natural perils such as windstorm and earthquake can result in volatility. Insurance Marine Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 99,618 $ 106,731 $ 101,872 $ 100,793 $ 93,587 $ 87,201 $ 83,432 $ 83,051 $ 82,789 $ 82,848 $ 381 516 2009 80,665 74,298 69,932 64,601 57,213 55,027 53,622 52,523 52,428 528 477 2010 68,603 70,685 66,639 53,574 51,663 48,823 47,397 45,785 735 472 2011 90,659 78,611 72,463 65,697 65,707 65,919 68,008 1,549 603 2012 89,703 82,729 68,842 70,942 71,917 74,541 12,824 700 2013 80,034 101,276 96,722 97,777 83,064 4,121 733 2014 59,665 44,562 48,471 44,439 7,167 799 2015 158,697 139,931 136,608 16,023 915 2016 86,324 78,864 19,460 1,372 2017 74,639 48,739 1,772 Total $ 741,224 Insurance Marine Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 14,357 $ 52,697 $ 69,114 $ 77,203 $ 78,313 $ 82,043 $ 82,128 $ 82,259 $ 82,339 $ 82,344 2009 17,431 30,364 39,699 43,243 45,286 45,896 48,430 48,712 49,060 2010 18,062 28,771 33,392 42,554 45,373 46,150 47,088 43,587 2011 26,417 44,168 54,874 57,972 59,816 60,523 64,750 2012 10,730 38,560 44,858 49,631 50,448 52,833 2013 19,313 44,437 55,414 63,637 66,326 2014 6,363 15,277 26,831 26,977 2015 21,467 54,845 108,071 2016 12,497 32,038 2017 10,061 Total 536,047 All outstanding liabilities before 2008, net of reinsurance 8,213 Liabilities for claims |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | In the ordinary course of business, the Company purchases treaty and facultative reinsurance to reduce exposure to significant losses. Facultative reinsurance provides cover for all or a portion of the losses incurred for a single policy and the Company separately negotiates each facultative contract. Treaty reinsurance provides cover for a specified type or category of risks. The Company's treaty reinsurance agreements provide this cover on either an excess of loss or a proportional basis. Excess of loss covers provide a contractually set amount of coverage after a specified loss amount has been reached. These treaties can provide cover for a number of lines of business within one contract. Under proportional reinsurance, the Company cedes an agreed proportion of the premiums and the losses and loss expenses on the policies it underwrites. These treaties provide us with a specified percentage of coverage from the first dollar of loss. All of these reinsurance covers provide us the right to recover a portion of specified losses and loss expenses from reinsurers. However, to the extent that reinsurers do not meet their obligations under these agreements due to solvency issues, contractual disputes or other reasons, the Company remains liable. The Company predominantly cedes its business to reinsurers rated A- or better by A.M. Best Company, Inc. ("A.M. Best"). Gross and net premiums written and earned were as follows: Year ended December 31, 2017 2016 2015 Premiums written Premiums earned Premiums written Premiums earned Premiums written Premiums earned Gross $ 5,556,273 $ 5,616,234 $ 4,970,208 $ 4,762,394 $ 4,603,730 $ 4,567,953 Ceded (1,529,130 ) (1,467,474 ) (1,217,234 ) (1,056,769 ) (929,064 ) (881,536 ) Net $ 4,027,143 $ 4,148,760 $ 3,752,974 $ 3,705,625 $ 3,674,666 $ 3,686,417 For the year ended December 31, 2017 , the Company recognized ceded losses and loss expenses of $1,010 million ( 2016 : $556 million ; 2015 : $577 million ). At December 31, 2017 , the Company's provision for unrecoverable reinsurance was $17 million ( 2016 : $20 million ). At December 31, 2017 , gross reinsurance recoverables collectible from reinsurers rated A- or better by A.M. Best were 88.8% ( 2016 : 96.7% ). |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | a) Senior Notes and Notes Payable On March 23, 2010, AXIS Specialty Finance LLC, a 100% owned finance subsidiary, issued $500 million aggregate principal amount of 5.875% senior unsecured debt (the '' 5.875% Senior Notes'') at an issue price of 99.624% . The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $495 million . Interest on the 5.875% Senior Notes is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2010. Unless previously redeemed, the 5.875% Senior Notes will mature on June 1, 2020. The 5.875% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance LLC. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC under the 5.875% Senior Notes. AXIS Capital’s obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. On March 13, 2014, AXIS Specialty Finance PLC, a 100% owned finance subsidiary, issued $ 250 million aggregate principal amount of 2.65% senior unsecured notes (the " 2.65% Senior Notes") at an issue price of 99.896% and $ 250 million aggregate principal amount of 5.15% senior unsecured notes (the " 5.15% Senior Notes", and, together with the 5.875% Senior Notes and the 2.65% Senior Notes, the "Senior Notes") at an issue price of 99.474% . The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $ 248 million and $ 246 million for the 2.65% Senior Notes and the 5.15% Senior Notes, respectively. Interest on the 2.65% Senior Notes and the 5.15% Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2014. Unless previously redeemed, the 2.65% Senior Notes and the 5.15% Senior Notes will mature on April 1, 2019 and April 1, 2045, respectively. The 2.65% Senior Notes and the 5.15% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 2.65% Senior Notes and the 5.15% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. On December 6, 2017 , AXIS Specialty Finance PLC, a 100% owned finance subsidiary, issued $350 million aggregate principal amount of 4.0% senior unsecured notes (the " 4.0% Senior Notes") at an issue price of 99.78% . The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $ 347 million . Interest on the 4.0% Senior Notes is payable semi-annually in arrears on June 6 and December 6 of each year, beginning on June 6, 2018. Unless previously redeemed, the 4.0% Senior Notes will mature on December 6, 2027. The 4.0% Senior Notes are ranked as unsecured senior obligations of AXIS Specialty Finance PLC. AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC under the 4.0% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. The Company has the option to redeem the Senior Notes at any time and from time to time, in whole or in part, at a ''make-whole'' redemption price, which is equal to the greater of the aggregate principal amount or the sum of the present values of the remaining scheduled payments of principal and interest. The related indentures contain various covenants, including limitations on liens on the stock of restricted subsidiaries, restrictions as to the disposition of the stock of restricted subsidiaries and limitations on mergers and consolidations. The Company was in compliance with all the covenants contained in the indentures at December 31, 2017 . Interest expense recognized in relation to Senior Notes includes interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses are amortized over the period of time during which the Senior Notes are outstanding. For the year ended December 31, 2017 , the Company incurred interest expense of $51 million ( 2016 : $50 million , 2015 : $50 million ). b) Dekania Notes On June 30, 2004, Novae issued $15 million aggregate principal amount of LIBOR plus 3.50% subordinated unsecured notes (the " $15 million Dekania Notes") and $11 million aggregate principal amount of LIBOR plus 4.05% subordinated unsecured notes (the " $11 million Dekania Notes"). On September 29, 2004, Novae issued $10 million aggregate principal amount of LIBOR + 3.50% subordinated notes (the " $10 million Dekania Notes" and together with the " $15 million Dekania Notes" and the " $11 million Dekania Notes" the "Dekania Notes"). The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $35 million . Interest on the Dekania Notes is payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year. Unless previously redeemed, the $15 million Dekania Notes and the $11 million Dekania Notes will mature on June 30, 2034 and the $10 million Dekania Notes will mature on September 29, 2034. The Dekania Notes are ranked as unsecured and subordinated obligations of Novae. AXIS Capital has not fully and unconditionally guaranteed obligations of Novae under the Dekania Notes. Interest expense recognized in relation to the Dekania Notes includes interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses are amortized over the period of time during which the Dekania Notes are outstanding. For the year ended December 31, 2017 , the Company incurred interest expense of $2 million . Scheduled Debt Maturity The scheduled maturity of the Company's aggregate amount of its debt obligation on its consolidated balance sheet at December 31, 2017 is shown in the following table : Year ended December 31, 2018 $ — 2019 250,000 2020 500,000 2021 — 2022 — After 2022 636,060 Unamortized discount and debt issuance expenses (9,531 ) Total senior notes and notes payable $ 1,376,529 c) Credit Facilities Credit Facility On March 26, 2013, AXIS Capital and certain of its subsidiaries entered into a $250 million credit facility (the "Credit Facility"), which was issued by a syndication of lenders pursuant to a Credit Agreement and other ancillary documents (together, the "Facility Documents") and will expire in March 2017. At the request of the Company and subject to the satisfaction of certain conditions, the aggregate commitment available under the Credit Facility may be increased by up to $150 million . Under the terms of the Credit Facility, loans are available for general corporate purposes and letters of credit may be issued in the ordinary course of business, with total usage not to exceed the aggregate commitment available. Interest on loans issued under the Credit Facility is payable based on underlying market rates at the time of loan issuance. While loans under the Credit Facility are unsecured, the Company has the option to issue letters of credit on a secured basis in order to reduce associated fees. Letters of credit issued under the Credit Facility would principally be used to support the (re)insurance obligations of the Company's operating subsidiaries. Each of AXIS Capital, AXIS Specialty Finance LLC, AXIS Specialty Holdings Bermuda Limited and AXIS Specialty Finance PLC guarantees the obligations of the other parties to the Credit Facility. The Credit Facility is subject to certain non-financial covenants, including limitations on fundamental changes, the incurrence of additional indebtedness and liens and certain transactions with affiliates and investments, as defined in the Facility Documents. The Credit Facility also requires compliance with certain financial covenants, including a maximum debt to capital ratio and a minimum consolidated net worth requirement. In addition, each of AXIS Capital’s material (re)insurance subsidiaries party to the Credit Facility must maintain a minimum A.M. Best financial strength rating. In the event of default, including a breach of these covenants, the lenders may exercise certain remedies including the termination of the Credit Facility, the declaration of all principal and interest amounts related to Credit Facility loans to be immediately due and the requirement that all outstanding letters of credit be collateralized. On September 18, 2013, the Credit Facility was amended in order to permit AXIS Capital and its subsidiaries to enter into swap contracts and other arrangements related to weather derivative transactions. All other material terms and conditions remained unchanged. Effective February 10, 2014, AXIS Specialty Finance PLC was added as a guarantor to the Credit Facility. On March 27, 2017, the Credit Facility expired. Letter of Credit Facility On November 20, 2013, certain of AXIS Capital’s operating subsidiaries (the "Participating Subsidiaries") entered into an amendment to extend the term of the Company's secured $750 million letter of credit facility (the "LOC Facility") with Citibank Europe plc ("Citibank") pursuant to a Master Reimbursement Agreement and other ancillary documents (together, the "LOC Facility Documents"). Under the terms of the LOC Facility, letters of credit to a maximum aggregate amount of $750 million are available for issuance on behalf of the Participating Subsidiaries. These letters of credit will principally be used to support the reinsurance obligations of the Participating Subsidiaries. The LOC Facility is subject to certain covenants, including the requirement to maintain sufficient collateral, as defined in the LOC Facility Documents, to cover all of the obligations under the LOC Facility. Such obligations include contingent reimbursement obligations for outstanding letters of credit and fees payable to Citibank. In the event of default, Citibank may exercise certain remedies, including the exercise of control over pledged collateral and the termination of the availability of the LOC Facility to any or all of the Participating Subsidiaries. On March 31, 2015, the Company entered into an amendment to reduce the maximum aggregate utilization capacity of the LOC Facility from $750 million to $500 million . All other material terms and conditions remained unchanged. On December 18, 2015, the Participating Subsidiaries renewed the $500 million secured LOC Facility with Citibank for a four year term commencing December 31, 2015, pursuant to certain updates to the LOC Facility Documents. All other material terms and conditions remained unchanged. On March 27, 2017, the Participating Subsidiaries amended their existing $500 million secured LOC Facility with 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. 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 the lender. In the event of default, the lender may exercise certain remedies, including the exercise of control over pledged collateral and the termination of the availability of the facility to any or all of the participating operating subsidiaries. At December 31, 2017 , letters of credit outstanding under the LOC Facility totaled $387 million . At December 31, 2017 , the Company was in compliance with all LOC Facility covenants. Novae Syndicated Bank Facility On August 2, 2016, Novae entered into a new syndicated bank financing facility, which provides the company with a combined letter of credit and revolving credit facility of $229 million and a term loan of $67 million . On December 29, 2017, the term loan was repaid and the letter of credit and revolving credit facility was terminated. For the year ended December 31, 2017, the Company recognized $1 million of interest expense in relation to the syndicated bank financing facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | a) Concentrations of Credit Risk Credit Risk Aggregation The Company monitors and manages the aggregation of credit risk on a group-wide basis allowing it to consider exposure management strategies for individual companies, countries, regions, sectors and any other relevant inter-dependencies. The Company's credit exposures are aggregated based on the origin of risk. As part of its credit aggregation framework, the Company also assigns aggregate credit limits by single counterparty (a group of companies or country). These limits are based on and adjusted for a variety of factors including the prevailing economic environment and the nature of the underlying credit exposures. The Company's credit aggregation measurement and reporting process is facilitated by its credit risk exposure database, which contains relevant information on counterparty details and credit risk exposures. The Company also licenses third party tools to provide credit risk assessments. Credit risk aggregation is also managed through minimizing overlaps in underwriting, financing and investing activities. The assets that potentially subject the Company to concentrations of credit risk consist principally of cash and investments, reinsurance recoverable and (re)insurance premiums receivable balances, as described below: (i) Cash and Investments In order to mitigate concentration and operational risks related to cash and cash equivalents, the Company limits the maximum amount of cash that can be deposited with a single counterparty and limits acceptable counterparties based on current rating, outlook and other relevant factors. The Company's investment portfolio is managed by external investment managers in accordance with its investment guidelines. The Company limits such credit risk through diversification, issuer exposure limitation graded by ratings and, with respect to custodians, through contractual and other legal remedies. Excluding U.S. government and agency securities, the Company limits its concentration of credit risk to any single corporate issuer to 2% or less of its investment grade fixed maturities portfolio for securities rated A- or above and 1% or less of its investment grade fixed maturities portfolio for securities rated below A-. At December 31, 2017 , the Company was in compliance with these limits. (ii) Reinsurance Recoverable Balances Within the Company's reinsurance purchasing activities, it is exposed to the credit risk of a reinsurer failing to meet its obligations under reinsurance contracts. To help mitigate this, the Company's reinsurance purchasing is subject to financial security requirements specified by its Reinsurance Security Committee. This Committee maintains a list of approved reinsurers, performs credit risk assessments for potential new reinsurers, regularly monitors approved reinsurers with consideration for events which may have a material impact on their creditworthiness, recommends counterparty tolerance levels for different types of ceded business and monitors concentrations of credit risk. This assessment considers a wide range of individual attributes, including a review of the counterparty’s financial strength, industry position and other qualitative factors. Generally, the Committee requires that reinsurers who do not meet specified requirements provide collateral. At December 31, 2017 , the three largest balances by reinsurer accounted for 12% , 11% and 7% ( 2016 : 13% , 10% and 9% ) of reinsurance recoverable on unpaid and paid losses. At December 31, 2017 , amounts related to reinsurers with the ten largest balances comprised 56% ( 2016 : 67% ) of reinsurance recoverable on unpaid and paid losses and had a weighted average A.M. Best rating of A+ ( 2016 : A+ ). (iii) Premium Balances Receivable The diversity of the Company's client base limits the credit risk associated with its premium balances receivable. In addition, for insurance contracts the Company has contractual rights to cancel cover for non-payment of premiums and for reinsurance contracts the Company has contractual rights to offset premium balances receivable with corresponding payments for losses and loss expenses. Brokers and other intermediaries collect premiums from customers on behalf of the Company. The Company has policies and standards in place to manage and monitor credit risk from intermediaries with a focus on day-to-day monitoring of the largest positions. These contractual rights contribute to the mitigation of credit risk, as does monitoring of aged premium balances receivable. In light of these mitigating factors, and considering that a significant portion of premium balances receivable are not currently due based on the terms of the underlying contracts, the Company does not utilize specific credit quality indicators to monitor its premium balances receivable. At December 31, 2017 , the Company recorded an allowance for estimated uncollectible premium balances receivable of $6 million ( 2016 : $2 million ). For the year ended December 31, 2017 , bad debt expense was $ nil ( 2016 : $1 million ). b) Brokers The Company produces its business through brokers and direct relationships with insurance companies. For the year ended December 31, 2017 , three brokers accounted for 49% ( 2016 : 52% ; 2015 : 53% ) of total gross premiums written. Marsh & McLennan Companies Inc. accounted for 20% ( 2016 : 21% ; 2015 : 22% ), Aon plc for 17% ( 2016 : 19% ; 2015 : 18% ), and Willis Tower Watson PLC for 12% ( 2016 : 12% ; 2015 : 13% ). No other broker and no single insured or reinsured accounted for more than 10% of gross premiums written in any of the last three years. c) Lease Commitments In the ordinary course of business, the Company renews and enters into new leases for office space which expire at various dates. For the year ended December 31, 2017 , total rent expense with respect to operating leases was $29 million ( 2016 : $25 million ; 2015 : $28 million ). Future minimum lease payments are expected to be as follows: Year ended December 31, 2018 $ 27,777 2019 26,514 2020 22,661 2021 23,817 2022 22,745 Later years 84,606 Total future minimum lease payments $ 208,120 d) Legal Proceedings From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Estimated amounts payable under such proceedings are included in the reserve for losses and loss expenses in the Consolidated Balance Sheets. The Company is not party to any material legal proceedings arising outside the ordinary course of business. e) Investments At December 31, 2017 the Company has $ 414 million ( 2016 : $401 million ) of unfunded investment commitments related to the other investment portfolio, which are callable by investment managers (see Note 6(c) ' Investments '). At December 31, 2017 the Company has a $16 million ( 2016 : $2 million ) commitment to purchase commercial mortgage loans. f) Funds at Lloyd's The Company operates in the Lloyd’s market through its corporate member, AXIS Corporate Capital UK Limited which represents its participation in Syndicate 1686 and Novae Corporate Underwriting Limited, the sole corporate member of Syndicate 2007. Lloyd’s sets capital requirements for corporate members annually through the application of a capital model that is based on regulatory rules pursuant to Solvency II. The capital provided to support underwriting, or FAL may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2017 , investments and cash of $1.2 billion ( 2016 : $383 million ) were restricted to satisfy the Company's FAL requirements (see Note 6 'Investments' and Note 21 ' Statutory Financial Information' ). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | The following table presents a comparison of basic and diluted earnings per common share: At and year ended December 31, 2017 2016 2015 Basic earnings (loss) per common share Net income (loss) $ (368,969 ) $ 513,368 $ 641,631 Less: Preferred share dividends 46,810 46,597 40,069 Less: Loss on repurchase of preferred shares — 1,309 — Net income (loss) available to common shareholders $ (415,779 ) $ 465,462 $ 601,562 Weighted average common shares outstanding - basic (1) 84,108 90,772 98,609 Basic earnings (loss) per common share $ (4.94 ) $ 5.13 $ 6.10 Diluted basic earnings (loss) per common share Net income (loss) available to common shareholders $ (415,779 ) $ 465,462 $ 601,562 Weighted average common shares outstanding - basic (1) 84,108 90,772 98,609 Share-based compensation plans (2) — 775 1,020 Weighted average common shares outstanding - diluted (1) 84,108 91,547 99,629 Diluted earnings (loss) per common share $ (4.94 ) $ 5.08 $ 6.04 Weighted average anti-dilutive shares excluded from the dilutive computation 702 170 165 (1) On August 17, 2015 , the Company entered into an Accelerated Share Repurchase ("ASR") agreement (see Note 14 'Shareholders' Equity' ). 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 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 year ended December 31, 2017, all the share equivalents were anti-dilutive. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | a) Common Shares The Company's authorized share capital is 800,000,000 common shares, par value of $0.0125 per share. The following table presents changes in common shares issued and outstanding, excluding restricted shares related to the Company's share-based compensation plans (see Note 16 ' Share-Based Compensation' ): Year ended December 31, 2017 2016 2015 Shares issued, balance at beginning of year 176,580 176,240 175,478 Shares issued — 340 762 Total shares issued at end of year 176,580 176,580 176,240 Treasury shares, balance at beginning of year (90,139 ) (80,174 ) (76,052 ) Shares repurchased (4,288 ) (10,508 ) (4,616 ) Shares reissued 1,008 543 494 Total treasury shares at end of year (93,419 ) (90,139 ) (80,174 ) Total shares outstanding 83,161 86,441 96,066 During 2017 , the total cash dividends declared per common share were $1.53 ( 2016 : $1.43 ; 2015 : $1.22 ). Treasury shares On July 5, 2017 the Company and the board of directors of Novae announced that it had agreed on terms of a recommended offer to be made by the Company to acquire the entire issued and to be issued share capital of Novae. Following the offer, the Company suspended its open market share repurchase plan. On December 31, 2017, authorization under the Board-authorized share repurchase plan for common share repurchases through 2017 expired. A common share repurchase plan has not been authorized for 2018. The following table presents common share repurchased, from shares held in treasury: Year ended December 31, 2017 2016 2015 In the open market: Total shares (1) 3,932 10,241 4,264 Total cost $ 261,180 $ 557,476 $ 246,490 Average price per share (2) $ 66.43 $ 54.44 $ 57.80 From employees: (3) Total shares 356 267 352 Total cost $ 24,678 $ 14,329 $ 18,048 Average price per share (2) $ 69.36 $ 53.74 $ 51.34 Total shares repurchased: Total shares 4,288 10,508 4,616 Total cost $ 285,858 $ 571,805 $ 264,538 Average price per share (2) $ 66.67 $ 54.42 $ 57.32 (1) Amounts in 2016 and 2015 include common shares acquired under the accelerated share repurchase program of 1,358,380 and 4,149,378 , respectively (see below for more detail). (2) Calculated using whole numbers. (3) Shares are repurchased from employees to satisfy withholding tax liabilities upon the vesting of restricted stock awards, restricted stock units, and the exercise of stock options. Share repurchases from employees are excluded from the authorized share repurchase plan noted above. Accelerated Share Repurchase Program On August 17, 2015 , the Company entered into an Accelerated Share Repurchase ("ASR") 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 common 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 was 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 Sheets 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 reclassification of $60 million from additional paid-in capital to treasury shares. In total, the Company repurchased 5,507,758 common shares under the ASR agreement at an average price of $54.47 . b) Preferred Shares Series B Preferred Shares On November 23, 2005, the Company issued $250 million of 7.50% Series B preferred shares, par value $0.0125 per share, with a liquidation preference of $100.00 per share. The Company may redeem the Series B preferred shares on or after December 1, 2015 at a redemption price of $100.00 per share. Dividends on the Series B preferred shares are non-cumulative. Holders of Series B preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends, from the original issue date, quarterly in arrears on the first day of March, June, September and December of each year, commencing on March 1, 2006, up to but not including January 27, 2016 . To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 7.50% of the liquidation preference per annum. During April 2012, the Company closed a cash tender offer for any and all of the outstanding 7.50% Series B preferred shares at a purchase price of $102.81 per share. As a result, the Company purchased 2,471,570 Series B preferred shares for $254 million . In connection with this tender offer, a loss on redemption of $9 million (calculated as the difference between the redemption price and the carrying value) was recognized in determining net income available to common shareholders. In 2015, total dividends declared on Series B preferred shares were $6.8125 per share, and dividends paid were $7.50 per share. In 2014, total dividends declared and paid on Series B preferred shares were $7.50 per share. On January 27, 2016 the Company redeemed the remaining 28,430 Series B preferred shares, for an aggregate redemption price of $3 million . Series C Preferred Shares On March 19, 2012, the Company issued $400 million of 6.875% Series C preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. The Company may redeem the Series C preferred shares on or after April 15, 2017 at a redemption price of $25.00 per share. Dividends on the Series C preferred shares are non-cumulative. Holders of the Series C preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends, from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on July 15, 2012. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 6.875% of the liquidation preference per annum. During October and November 2016, the Company repurchased 1,957,045 Series C preferred shares at an average purchase price of $25.67 per share for $50 million . In connection with the repurchase of these shares, a loss on redemption of $1 million (calculated as the difference between the redemption price and the carrying value), was recognized in determining net income available to common shareholders. In 2017 , the total dividends declared and paid on Series C preferred shares were $0.4297 per share. In 2016 and 2015 , the total dividends declared and paid on Series C preferred shares were $1.7188 per share in each year. On April 17, 2017, the Company redeemed the remaining 14,042,955 Series C preferred shares, for an aggregate liquidation preference of $351 million . Series D Preferred Shares On May 20, 2013, the Company issued $225 million of 5.50% Series D preferred shares, par value $0.0125 per share, with a liquidation preference of $25.00 per share. The Company may redeem the Series D preferred shares on or after June 1, 2018 at a redemption price of $25.00 per share. Dividends on the Series D preferred shares are non-cumulative. Holders of the Series D preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the first day of March, June, September and December of each year, commencing on September 1, 2013. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per share equal to 5.50% of the liquidation preference per annum. In 2017 , total dividends declared on Series D preferred shares were $1.3750 per share, of which $1.0313 was paid in 2017 and the remaining $0.34375 is payable in 2018. In 2016 and 2015 , total dividends declared and paid on Series D preferred shares were $1.3750 per share. Series E Preferred Shares On November 7, 2016, the Company issued $550 million of 5.50% Series E preferred shares, par value $0.0125 per share, with a liquidation preference of $2,500 per share. The Company may redeem the Series E preferred shares on or after November 7, 2021 at a redemption price of $2,500 per share. Dividends on the Series E preferred shares are non-cumulative. Holders of the Series E preferred shares will be entitled to receive, only when, as and if declared by the board of directors, non-cumulative cash dividends from the original issue date, quarterly in arrears on the fifteenth day of January, April, July and October of each year, commencing on January 15, 2017. To the extent declared, these dividends will accumulate, with respect to each dividend period, in an amount per Series E preferred share equal to 5.50% of the liquidation preference per annum. In 2017 , total dividends declared on Series E preferred shares were $137.5 per share of which, $103.13 was paid in 2017 and the remaining $34.375 was paid in 2018. In 2016 , total dividends declared on Series E preferred shares were $34.375 per share, which were subsequently paid in 2017 . |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | The Company maintains defined contribution plans to provide retirement benefits to eligible employees. Contributions to the plans, which are managed externally, are based on eligible compensation. For eligible U.S. employees, the Company provides a non-qualified deferred compensation plan that enables employees to make contributions to the plan that are in excess of those permitted under the Company's 401(k) Plan. Further, employees are permitted to make additional contributions from any bonus received and to benefit from discretionary employer contribution to the Plan. During 2017 , total pension expenses were $24 million ( 2016 : $23 million and 2015 : $21 million ) for the above retirement benefits. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE-BASED COMPENSATION | In May 2017, shareholders approved the establishment of the AXIS Capital Holdings Limited 2017 Long-Term Equity Compensation Plan (the "2017 Plan"). The 2017 Plan provides for, among other things, the issuance of restricted stock units, performance units, restricted shares, stock options, stock appreciation rights and other equity-based awards to our employees and directors. The 2017 Plan authorizes the issuance of a total of 3,400,000 shares. The Company's 2017 Plan replaced its 2007 Long-Term Equity Compensation Plan ("2007 Plan") upon expiration of the 2007 Plan in May 2017. All remaining shares available pursuant to the 2007 Plan have been canceled although awards made pursuant to the 2007 Plan prior to its expiration remain in effect in accordance with the terms of the 2007 Plan. At December 31, 2017 , 3,274,004 equity-based awards remained available for grant pursuant to the 2017 Plan. Restricted Stock Awards Restricted stock awards ("RSAs") granted pursuant to the 2007 Plan generally vest in four equal installments on the first, second, third and fourth anniversaries of the grant date. Restricted Stock Units Restricted stock units ("RSUs") granted pursuant to the 2017 Plan or the 2007 Plan generally cliff vest at the end of a three year period, vest in accordance with a three year graded vesting schedule, or vest in four equal installments upon the first, second, third and fourth anniversaries of the grant date. Cash Settled Restricted Stock Units Cash settled restricted stock units ("Cash settled RSUs") granted pursuant to the 2017 Plan or the 2007 Plan are liability awards and generally cliff vest at the end of a three year period, or vest in four equal installments upon the first, second, third and fourth anniversaries of the date of grant. Performance-vesting Restricted Stock Units Performance-vesting restricted stock units ("PSUs") granted pursuant to the 2017 Plan or the 2007 Plan, represent the right to receive a specified number of common shares in the future, based upon the achievement of established performance criteria and continued service during the applicable performance period. Awards granted pursuant to these plans generally cliff vest at the end of a three year period. PSUs granted are either share settled awards or cash settled liability awards. Acceleration Provisions Grants provided under the 2017 Plan and the 2007 Plan generally allow for accelerated vesting provisions upon the employee’s death, permanent disability, or certain terminations following a change in control of the Company occurring within two years of the change in control event. Notwithstanding these vesting provisions, the Compensation Committee of our Board has broad authority to accelerate vesting at its own discretion. Retirement Plan In 2016, the Company established the AXIS Executive RSU Retirement Plan (the "Plan") to reward certain eligible long-term employees of the Company for their dedicated service. The Plan was implemented in 2017. Subject to certain conditions being met, eligible employees will not forfeit all of their outstanding RSUs or Cash settled RSUs on or following their retirement. Absent the Plan, outstanding RSUs are generally forfeited upon termination of employment. a) Share Settled Awards The following table provides a summary of nonvested RSAs and share settled RSUs: Share Settled PSUs Share Settled - Service Based Restricted Stock Number of Restricted Stock Weighted Average Grant Date Fair Value (1) Number of Restricted Stock Weighted Average Grant Date Fair Value (1) Nonvested restricted stock - December 31, 2015 201 $ 49.24 1,954 $ 43.34 Granted 104 53.80 589 53.87 Performance Adjustment 26 45.95 n/a n/a Vested (48 ) 45.38 (789 ) 39.29 Forfeited — — (161 ) 47.33 Nonvested restricted stock - December 31, 2016 283 51.27 1,593 48.88 Granted 87 64.58 733 61.94 Vested (2) (119 ) 49.14 (889 ) 47.48 Forfeited (21 ) 55.00 (82 ) 54.89 Nonvested restricted stock - December 31, 2017 230 $ 57.08 1,355 $ 57.09 n/a – not applicable (1) Fair value is based on the closing price of our common shares on the grant approval date. (2) Share-settled restricted stock units that vested during the year ended December 31, 2017 included 313,391 service-based restricted stock units attributable to a grant made in 2014 which was subject to a three year cliff vesting period. b) Cash Settled Awards The following table provides a summary of nonvested cash settled RSUs: Cash Settled PSUs Service-based Cash Settled RSUs Number of Restricted Stock Units Number of Restricted Stock Units Nonvested restricted stock units - December 31, 2015 70 1,433 Granted 18 497 Performance Adjustment 12 n/a Vested (32 ) (377 ) Forfeited — (161 ) Nonvested restricted stock units - December 31, 2016 68 1,392 Granted 15 432 Vested (1) (38 ) (763 ) Forfeited (3 ) (73 ) Nonvested restricted stock units - December 31, 2017 42 988 n/a – not applicable (1) Cash-settled restricted stock units that vested during the year ended December 31, 2017 included 307,556 service-based restricted stock units attributable to a grant made in 2014 which was subject to a three year cliff vesting period. At December 31, 2017 , the liability for cash-settled restricted stock units, included in other liabilities in the Consolidated Balance Sheets, was $22 million ( 2016 : $48 million ). The fair value of share-settled restricted stock units and cash-settled restricted stock units that vested during 2017 was $125 million ( 2016 : $67 million ; 2015 : $75 million ), including $44 million attributable to service-based restricted stock units granted in 2014 which were subject to a three year cliff vesting period. At December 31, 2017 , there were $94 million ( 2016 : $85 million ) of unrecognized compensation costs which are expected to be recognized over the weighted average period of 2.5 years ( 2016 : 2.3 years ). During 2017 , the Company incurred share-based compensation costs of $68 million ( 2016 : $74 million ; 2015 : $59 million ) related to restricted stock awards, share-settled restricted stock units, and cash-settled restricted stock units. In addition, the Company recorded associated tax benefits of $15 million ( 2016 : $16 million ; 2015 : $15 million ), including $7 million related to excess tax benefits associated with the vesting of restricted stock units. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | A member of the Company’s Board of Directors, Mr. Charles Davis, is the Chief Executive Officer of Stone Point Capital, LLC ("Stone Point"). In the ordinary course of business, the Company engages SKY Harbor Capital Management, LLC, an affiliate of Stone Point, to provide asset management services for certain short duration high yield debt portfolios. For the year ended December 31, 2017 , total fees paid to SKY Harbor Capital Management, LLC, were $2 million ( 2016 : $3 million ; 2015 : $3 million ). In 2015, the Company engaged StoneRiver RegEd, also an affiliate of Stone Point, to provide broker and adjuster licensing, appointment and compliance service. For the year ended December 31, 2015 total fees paid to StoneRiver RegEd were $0.5 million . The Company currently has $30 million committed to the NXT Capital Senior Loan Fund II and $30 million committed to NXT Capital Senior Loan Fund III. The manager of these funds is an indirect subsidiary of NXT Capital Holdings, L.P. ("NXT Capital"). Investment funds managed by Stone Point own approximately 42% of NXT Capital. For the year ended December 31, 2017 , fees paid to NXT Capital totaled $1 million ( 2016 : $1 million ; 2015: $1 million ). In addition, the Company currently has $50 million committed to the Freedom Consumer Credit Fund, LLC Series B. The manager of this fund is Freedom Financial Asset Management, LLC ("Freedom") which is an indirect subsidiary of Pantheon Partners, LLC ("Pantheon"). Investment funds managed by Stone Point own approximately 14.5% of Pantheon. For the year ended December 31, 2017 , fees paid to Freedom totaled $1.1 million . The Company's Chairman, Mr. Butt, received $0.5 million in consulting fee payments in 2017 pursuant to the terms of a consulting agreement by and between Mr. Butt and the Company dated May 3, 2012, as amended ( 2016 : $0.6 million ; 2015: $1 million ). The consulting agreement was further amended on December 7, 2017 to extend the term of the agreement to the Company's 2019 Annual General Meeting for an annual fee of $0.5 million . The Company's investment portfolio includes certain investments where it is considered to have the ability to exercise significant influence over the investment entity's operations. Significant influence is generally deemed to exist where the Company has an investment of 20% or more in the common stock of a corporation or an investment of 3% or more in closed end funds, limited partnerships, LLCs or similar investment vehicles. At December 31, 2017, the Company has $451 million ( 2016 : $411 million ) of investments where it is deemed to have the ability to exercise such significant influence. The Company generally pays management and performance fees to the investment managers of these investments. The Company considers all fees paid to the investment managers to be at market rates consistent with negotiated arms-length contracts. Harrington and Harrington Re commenced operations in 2016 (see Note 6 ' Investments '). AXIS Capital has the ability to exercise significant influence over the operating and financial policies of Harrington and Harrington Re. In the normal course of business, the Company entered into certain reinsurance transactions with Harrington Re. For the year ended December 31, 2017, the Company ceded reinsurance premiums of $213 million (2016: $128 million ) and ceded losses of $119 million (2016: $27 million ) to Harrington Re. In addition, Harrington Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2017, the amount of reinsurance recoverable on unpaid and paid losses was $152 million (2016: $38 million ) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $142 million (2016: $86 million ) in the Consolidated balance sheets. All transactions were conducted at market rates consistent with negotiated arms-length contracts. On November 5, 2013, the Company formed Ventures Re, a Bermuda domiciled insurer. With effect from January 1, 2015, Ventures Re is no longer consolidated in the financial statements of the Company. All of Ventures Re's directors are employees of the Company. In the normal course of business, the Company enters into certain reinsurance contracts with Ventures Re. For the year ended December 31, 2017, the Company ceded premiums of $107 million (2016: $40 million ) and ceded losses of $126 million (2016: $10 million ) to Ventures Re. In addition, Ventures Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2017, the amount of reinsurance recoverable on unpaid and paid losses was $131 million (2016: $22 million ) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $17 million (2016: $15 million ) in the Consolidated balance sheets. All transactions were conducted at market rates consistent with negotiated arms-length contracts. |
TRANSACTION AND REORGANIZATION
TRANSACTION AND REORGANIZATION EXPENSES | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
TRANSACTION AND REORGANIZATION EXPENSES | Transaction and Integration Expenses In connection with the acquisition of Novae, the Company incurred transaction and integration related expenses for the year ended December 31, 2017 of $27 million compared to $ nil for the years ended December 31, 2016 and 2015, respectively. The transaction and integration related expenses included due diligence, legal, accounting, investment banking fees and expenses, as well as integration expenses related to the integration of Novae into the Company's operations and compensation-related costs associated with the termination of certain employees. These expenses are included in transaction and reorganization expenses in the Consolidated Statement of Operations (see Note 3 'Business Combinations '). Reorganization Expenses During 2015, the Company implemented a number of profitability enhancement initiatives which resulted in the recognition of reorganization and related expenses including staff severance and related costs, the write-off of certain information technology assets, lease cancellation costs and an impairment of certain customer-based intangibles following the decision to wind down the Company's Australian retail insurance operations. Reorganization and related expenses amounted to $ nil for the years ended December 31, 2017 and 2016 and $46 million for the year ended December 31, 2015. In addition, the Company incurred corporate expenses associated with these profitability enhancement initiatives of $ nil for the years ended December 31, 2017 and 2016 and $5 million for the year ended December 31, 2015 (see Note 5 'Goodwill and Intangible Assets' ). |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | Under current Bermuda law, the Company's Bermuda domiciled subsidiaries are not required to pay any taxes in Bermuda on income or capital gains. The Company has received an assurance from the Minister of Finance in Bermuda that, in the event of any taxes being imposed, it will be exempt from taxation in Bermuda until March 2035. The Company's primary Bermuda subsidiary has an operating branch in Singapore, which is subject to the relevant taxes in that jurisdiction. The branch is not under examination in this tax jurisdiction, but remains subject to examination for tax years 2014 through 2017. The Company's U.S. subsidiaries are subject to federal, state and local corporate income taxes and other taxes applicable to U.S. corporations. The provision for federal income taxes has been determined under the principles of the consolidated tax provisions of the U.S. Internal Revenue Code and Regulations. Should the U.S. subsidiaries pay a dividend outside the U.S. group, withholding taxes will apply. The Company's U.S. subsidiaries are not under examination but remain subject to examination in the U.S. for tax years 2014 through 2017. In Canada, the Company's U.S. reinsurance company operates through a branch and its U.S. service company has an unlimited liability company subsidiary based in Canada. These Canadian operations are subject to the relevant taxes in that jurisdiction and remain subject to examination for tax years 2013 through 2017. The Company also has subsidiaries in Ireland, the U.K., Belgium, the Netherlands, Luxembourg, Brazil and Dubai. In 2017, the Company ceased operations in Australia. These subsidiaries and their branches, are not under examination, but remain subject to examination in all applicable jurisdictions for tax years 2013 through 2017. In the U.K., the Company has Lloyd’s syndicates whose income is subject to tax in the U.K. payable by its corporate members. The income from operations at Lloyd’s is also subject to taxes in other jurisdictions in which Lloyd's operates, including the U.S. Under a Closing Agreement between Lloyd’s and the IRS, Lloyd’s Members pay U.S. income tax on U.S. connected income written by Lloyd’s syndicates. To the extent that the Lloyd’s syndicates suffer taxes outside the U.K. they may claim a credit for foreign taxes suffered, limited to the U.K. equivalent tax on the same income. An analysis of income tax expense and net tax assets is shown in the following table: Year ended December 31, 2017 2016 2015 Current income tax expense (benefit) U.S. $ (6,207 ) $ 606 $ 4,927 Europe 10,249 7,451 144 Other — — 5 Deferred income tax expense (benefit) U.S. 18,495 (1,829 ) (267 ) Europe (30,079 ) 112 (1,781 ) Total income tax expense (benefit) $ (7,542 ) $ 6,340 $ 3,028 Net current tax receivables (payables) $ (639 ) $ 3,540 $ (69 ) Net deferred tax assets 4,438 103,313 104,762 Net tax assets $ 3,799 $ 106,853 $ 104,693 Deferred income taxes reflect the tax impact of temporary differences between the carrying amounts of assets and liabilities for financial reporting and income tax purposes. The significant components of deferred tax assets and liabilities were as follows: At December 31, 2017 2016 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 27,804 $ 47,258 Unearned premiums 25,188 41,797 Operating and capital loss carryforwards 53,095 43,687 Accruals not currently deductible 31,560 59,098 Other investment adjustments and impairments — 84 Tax credits 29,929 10,139 Other deferred tax assets 15,047 3,684 Deferred tax assets before valuation allowance 182,623 205,747 Valuation allowance (16,157 ) (41,100 ) Deferred tax assets net of valuation allowance 166,466 164,647 Deferred tax liabilities: Deferred acquisition costs (24,249 ) (45,788 ) Net unrealized investments gains (8,033 ) (1,168 ) Amortization of VOBA, intangible assets and goodwill (85,296 ) (13,096 ) Equalization reserves (23,274 ) — Other deferred tax liabilities (21,176 ) (1,282 ) Deferred tax liabilities (162,028 ) (61,334 ) Net deferred tax assets $ 4,438 $ 103,313 On December 22, 2017, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 ("U.S. Tax Reform") was signed into law. U.S. Tax Reform, among other things, reduced the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018. Consequently, the Company reduced its net deferred tax assets as of December 31, 2017 by $41.6 million which is reflected in deferred tax expense. As a result of the Company's acquisitions of Aviabel and Novae in 2017, $103.8 million of net deferred tax liabilities were acquired or established at the acquisition date. Total operating and capital loss carryforwards and tax credits are summarized in the following table: At December 31, 2017 2016 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 77,467 $ 83,532 Australia (branch) operating loss carryforward (2) — 147,193 Australia (branch) capital loss carryforward (2) — 4,207 U. K. operating loss carryforward (3) 126,839 19,306 Ireland capital loss carryforward 716 716 U.S. operating loss carryforward 115,236 14,221 Tax Credits (1) Ireland foreign tax credit $ 3,566 $ 3,298 U.S. alternative minimum tax credit 12,052 6,840 U.K. tax credit (3) 14,310 — (1) All operating and capital loss carryforwards and tax credits can be carried forward indefinitely with the exception of the U.S. net operating loss which will expire in 2037. (2) As a result of ceasing the Company's Australian operations, operating loss and capital loss carryforwards were written off. (3) As a result of the Company's acquisition of Novae, these amounts include $23.0 million and $14.8 million of acquired operating loss and tax credit carryforwards, respectively. An analysis of the movement in the Company's valuation allowance is shown in the following table: At December 31, 2017 2016 Income tax expense: Valuation allowance - beginning of year $ 41,100 $ 40,331 Operating loss carryforwards (27,116 ) 3,857 Foreign tax credit 267 (2,775 ) Australian CTA and accruals and other foreign rate differentials 1,006 (313 ) Change in investment-related items 900 — Valuation allowance - end of year $ 16,157 $ 41,100 At December 31, 2017 and 2016 , the Company established a full valuation allowance on: (1) operating and capital loss carryforwards relating to operations in Australia and Singapore; (2) un-utilized foreign tax credits available in Ireland and (3) certain other deferred tax assets related to branch operations. In 2017 the valuation allowance was released on the Australian operating loss carryforwards, capital loss carryforwards, and other deferred tax assets upon the cessation of operations. The valuation allowance was reduced by a net $1.2 million for items unrelated to the Australian operations. Although realization is not assured, management believes it is more likely than not that the tax benefit of the recorded net deferred tax assets will be realized. In evaluating the Company's ability to recover these tax assets within the jurisdiction from which they arise, it considered all available positive and negative evidence, including historical results, operating loss carry-back potential and scheduled reversals of deferred tax liabilities. The Company believes its U.S. and U.K. operations will produce significant taxable income in future periods and have deferred tax liabilities that will reverse in future periods, such that the Company believes sufficient ordinary taxable income is available to utilize all remaining ordinary deferred tax assets. In 2017 and 2016 , there were sufficient net unrealized gains or capital loss carryback potential to offset remaining impairments, therefore, a valuation allowance on such impairments in the U.S. was not considered necessary. At December 31, 2017 and 2016 , there were no unrecognized tax benefits. The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes: Year ended December 31, 2017 2016 2015 Income (loss) before income taxes Bermuda (domestic) $ (188,420 ) $ 469,306 $ 652,235 Foreign (188,091 ) 50,402 (7,576 ) Total income before income taxes $ (376,511 ) $ 519,708 $ 644,659 Reconciliation of effective tax rate (% of income before income taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected rates: U.S. 6.6 % (0.6 )% 0.8 % Europe 5.8 % 1.5 % (0.2 )% Other 0.3 % 0.0 % (0.3 )% Valuation allowance 0.0 % 0.2 % 1.2 % Net tax exempt income 0.1 % (0.2 )% (0.1 )% Change in U.S. enacted tax rate (11.1 )% 0.0 % 0.0 % Other 0.3 % 0.3 % (0.9 )% Actual tax rate 2.0 % 1.2 % 0.5 % |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | The tax effects allocated to each component of other comprehensive income (loss) are shown in the following table: Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended December 31, 2017 Available for sale investments: Unrealized investment gains arising during the year $ 211,151 $ (5,732 ) $ 205,419 Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income (33,892 ) 758 (33,134 ) Unrealized investment gains arising during the year, net of reclassification adjustment 177,259 (4,974 ) 172,285 Non-credit portion of OTTI losses — — — Foreign currency translation adjustment 41,938 — 41,938 Total other comprehensive income, net of tax $ 219,197 $ (4,974 ) $ 214,223 Year ended December 31, 2016 Available for sale investments: Unrealized investment gains arising during the year $ 10,165 $ (5,093 ) $ 5,072 Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 60,423 1,767 62,190 Unrealized investment gains arising during the year, net of reclassification adjustment 70,588 (3,326 ) 67,262 Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (638 ) — (638 ) Total other comprehensive income, net of tax $ 69,950 $ (3,326 ) $ 66,624 Year ended December 31, 2015 Available for sale investments: Unrealized investment losses arising during the year $ (280,512 ) $ 14,128 $ (266,384 ) Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 145,766 (775 ) 144,991 Unrealized investment losses arising during the year, net of reclassification adjustment (134,746 ) 13,353 (121,393 ) Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (21,498 ) — (21,498 ) Total other comprehensive loss, net of tax $ (156,244 ) $ 13,353 $ (142,891 ) Reclassifications from AOCI into net income (loss) available to common shareholders are shown in the following table: Amount Reclassified from AOCI (1) Details About AOCI Components Consolidated Statement of Operations Line Item That Includes Reclassification Year ended December 31, 2017 2016 2015 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ 48,385 $ (34,213 ) $ (73,046 ) OTTI losses (14,493 ) (26,210 ) (72,720 ) Total before tax 33,892 (60,423 ) (145,766 ) Income tax (expense) benefit (758 ) (1,767 ) 775 Net of tax $ 33,134 $ (62,190 ) $ (144,991 ) Foreign currency translation adjustments Foreign exchange loss $ (24,149 ) $ — $ — Income tax (expense) benefit — — — 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 the Company's 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, the cumulative translation adjustment related to AXIS Specialty Australia of $24 million was released from accumulated other comprehensive income in the Consolidation Balance Sheet to foreign exchange losses in the Consolidated Statement of Operations. |
STATUTORY FINANCIAL INFORMATION
STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY FINANCIAL INFORMATION | The Company's (re)insurance operations are subject to insurance and/or reinsurance laws and regulations in the jurisdictions in which they operate, the most significant of which include Bermuda, Ireland, the U.S. and Lloyd's. These regulations include certain restrictions on the amount of dividends or other distributions, such as loans or cash advances, available to shareholders without prior approval of the insurance regulatory authorities. At December 31, 2017 and 2016 , the statutory capital and surplus in each of the Company's most significant regulatory jurisdictions are shown in the following table: Bermuda Ireland U.S. At December 31, 2017 2016 2017 2016 2017 2016 Required statutory capital and surplus $ 1,800,064 $ 1,835,279 $ 613,923 $ 552,678 $ 488,560 $ 430,145 Available statutory capital and surplus $ 3,641,279 $ 4,055,252 $ 906,512 $ 925,164 $ 1,511,480 $ 1,470,772 Bermuda Under the Insurance Act 1978, amendments thereto and Related Regulations of Bermuda (the "Act"), the Company's Bermuda subsidiary, AXIS Specialty Bermuda is required to maintain minimum statutory capital and surplus equal to the greater of a minimum solvency margin ("MSM") and the Enhanced Capital Requirement ("ECR"). The MSM is the greater of $100 million , 50% of net premiums written, 15% of the net reserve for losses and loss expenses or 25% of the ECR. The ECR is calculated based on either an internally developed risk-based capital model or a standard risk-based capital model developed by the Bermuda Monetary Authority ("BMA"). In 2016, the BMA implemented an Economic Balance Sheet ("EBS") framework which was used as the basis to determine the ECR. At December 31, 2017 and 2016 , the required and available statutory capital and surplus were based on this EBS framework. Under the Act, AXIS Specialty Bermuda is restricted as to the payment of dividends for amounts greater than 25% of the prior year’s statutory capital and surplus, whereby an affidavit signed by at least two members of the Board of Directors is required, attesting that any dividend in excess of this amount would not cause the company to fail to meet its relevant margins. At December 31, 2017 , the maximum dividend AXIS Specialty Bermuda could pay, without a signed affidavit, having met minimum levels of statutory capital and surplus requirements, was approximately $0.9 billion ( 2016 : $1 billion ). Ireland Effective January 1, 2016, the Company's Irish subsidiaries, AXIS Specialty Europe SE and AXIS Re SE, are required to maintain the Minimum Capital Requirement ("MCR") subject to a monetary minimum floor, and the Solvency Capital Requirement ("SCR") at all times. The capital requirements are calculated by reference to Solvency II definitions. If an entity falls below the MCR or SCR, the Central Bank of Ireland is authorized to take action to restore the financial position of the Company's Irish subsidiaries. During 2017 and 2016 , the Company's Irish subsidiaries were in compliance with these requirements. The Company's Irish subsidiaries may declare dividends subject to meeting their solvency and capital requirements. The maximum dividend is limited to "excess eligible own funds" which is defined as excess Solvency II capital over the SCR and may also be limited to "profits available for distribution'', which is defined as accumulated realized profits less accumulated realized losses and statutory reserves. At December 31, 2017 , the maximum dividend the Company's Irish subsidiaries could pay, having met their solvency and capital requirements was approximately $52 million ( 2016 : $372 million ). United States The Company's U.S. operations required statutory capital and surplus is determined using the risk-based capital formula ("RBC"), which is the National Association of Insurance Commissioners' (the "Commissioner") method of measuring the minimum capital appropriate for U.S. reporting entities to support its overall business operations in consideration of its size and risk profile. If a company falls below the authorized control level as determined under the RBC, the Commissioner is authorized to take whatever regulatory actions may be considered necessary to protect policyholders and creditors. The maximum dividend that may be paid by the Company's U.S. insurance subsidiaries is restricted by the regulatory requirements of the domiciliary states. Generally, the maximum dividend that may be paid by each of the Company's U.S. insurance subsidiaries is limited to unassigned surplus (statutory equivalent of retained earnings) and may also be limited to statutory net income, net investment income or 10% of total statutory capital and surplus. At December 31, 2017 , the maximum dividend that the Company's U.S. insurance operations could pay without regulatory approval was approximately $115 million ( 2016 : $147 million ). Lloyd's of London The Company operates in the Lloyd’s market through AXIS Corporate Capital UK Limited which is the sole corporate member of Syndicate 1686. Syndicate 1686 was managed by a third party managing agency, Asta Managing Agency Limited until August 2017 when the Company received final authorization from Lloyd's, the Prudential Regulation Authority ("PRA") and the Financial Conduct Authority ("FCA") for its own Lloyd's managing agent, AXIS Managing Agency Limited ("AXIS Managing Agency"). Effective August 4, 2017, AXIS Managing Agency assumed management of Syndicate 1686, replacing the Company's third-party managing agency agreement with Asta Managing Agency Limited, which had been in place since 2014. In addition, the Company operates in the Lloyd's market through Novae Corporate Underwriting Limited, the sole corporate member of Syndicate 2007 and owns Lloyd’s managing agency, Novae Syndicates Limited ("NSL") which operated in the Lloyd’s insurance market and managed Syndicate 2007 and SPA 6129. SPA 6129 commenced trading on January 1, 2016, was managed by NSL and all of its capacity was provided by third party capital represented by Securis Investment Partners LLP, a Lloyd’s member agent. For the three month period ended December 31, 2017, NSL received a managing agency fee from SPA 6129 and allocated a proportion of administrative expenses to SPA 6129. Corporate members of Lloyd’s and Lloyd’s syndicates are bound by the rules of Lloyd’s, which are prescribed by Bye-laws and Requirements made by the Council of Lloyd’s under powers conferred by the Lloyd’s Act 1982. These rules prescribe members’ membership subscription, the level of their contribution to the Lloyd’s Central Fund and the assets they must deposit with Lloyd’s in support of their underwriting. The Council of Lloyd’s has broad powers to sanction breaches of its rules, including the power to restrict or prohibit a member’s participation on Lloyd’s Syndicates. The capital provided to support underwriting, or Funds at Lloyd’s ("FAL") is not available for distribution for the payment of dividends or for working capital requirements. Corporate members may also be required to maintain funds under the control of Lloyd’s in excess of their capital requirements and such funds also may not be available for distribution for the payment of dividends. Lloyd’s sets the corporate members’ required capital annually through the application of a capital model that is based on regulatory rules pursuant to Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking up and pursuit of business of Insurance and Reinsurance (Solvency II) ("Solvency II"). FAL may comprise cash, certain investments and letters of credit provided by approved banks. FAL may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2017 fixed maturities and short term investments with a fair value of $557 million ( 2016 : $293 million ), equity securities with a fair value of $nil ( 2016 : $83 million ), and cash of $12 million ( 2016 : $7 million ), respectively, were restricted to satisfy AXIS Corporate Capital UK Limited FAL requirements. At December 31, 2017 fixed maturities and short term investments with a fair value of $564 million and equity securities with a fair value of $59 million , respectively, were restricted to satisfy Novae Corporate Underwriting Limited FAL requirements (see Note 6 ' Investments '). Each year, corporate members apply to Lloyd's to release accumulated funds, whether syndicate profits or interest on FAL, which are in excess of the agreed FAL requirements. At December 31, 2017 and 2016 , the actual capital and assets exceeded the FAL requirements for Syndicate 1686. At December 31, 2017 the actual capital and assets exceeded the FAL requirements for Syndicate 2007. The release of funds for Syndicate 1686 for the year ended December 31, 2016 made during 2017 was $1.6 million and the release of funds for Syndicate 2007 for the year ended December 31, 2016 made during 2017 was $41 million . On January 1, 2018, the Company received authorization from Lloyd’s for AXIS Managing Agency to commence management and oversight of Syndicate 2007 and SPA 6129. Branch Offices The Company's operating subsidiaries in Bermuda and the U.S. maintain branch offices in Singapore and Canada, respectively. The Company's Irish operating subsidiaries maintain branch offices in Switzerland, and the U.K. In 2017, the Company ceased operations in Australia. As branch offices are not considered separate entities for regulatory purposes, the required and actual statutory capital and surplus amounts for each jurisdiction in the table above include amounts related to the applicable branch offices. The Company's branch offices in Singapore and Canada are subject to additional minimum capital or asset requirements in their countries of domicile. At December 31, 2017 and 2016 , the actual capital/assets for each of these branches exceeded the relevant local regulatory requirements. Total statutory net income (loss) of the Company's operating subsidiaries was $(94) million , $598 million , $457 million for 2017 , 2016 and 2015 , respectively. The differences between statutory financial statements and statements prepared in accordance with U.S. GAAP vary by jurisdiction, however, the primary differences are that statutory financial statements may not reflect deferred acquisition costs, certain net deferred tax assets, goodwill and intangible assets, unrealized appreciation or depreciation on debt securities or certain unauthorized reinsurance recoverables. |
UNAUDITED CONDENSED QUARTERLY F
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | An unaudited summary of quarterly financial results is shown in the following table: Quarters ended Mar 31 Jun 30 Sep 30 Dec 31 2017 Net premiums earned $ 938,703 $ 981,431 $ 1,017,131 $ 1,211,495 Net investment income 98,664 106,063 95,169 100,908 Net realized investment gains (losses) (25,050 ) (4,392 ) 14,632 43,038 Underwriting income (loss) 16,385 57,012 (512,853 ) 26,130 Net income (loss) available to common shareholders 5,014 85,030 (467,740 ) (38,081 ) Earnings (loss) per common share - basic $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) Earnings (loss) per common share - diluted $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) 2016 Net premiums earned $ 902,340 $ 946,990 $ 934,415 $ 921,879 Net investment income 49,164 91,730 116,923 95,517 Net realized investment gains (losses) (66,508 ) 21,010 5,205 (20,229 ) Underwriting income 98,951 9,860 103,998 66,265 Net income available to common shareholders 38,417 119,491 176,644 130,912 Earnings per common share - basic $ 0.41 $ 1.30 $ 1.97 $ 1.50 Earnings per common share - diluted $ 0.41 $ 1.29 $ 1.96 $ 1.48 (1) During the three months ended September 30, and December 31, 2017, the Company recognized transaction and reorganization expenses of $6 million and $21 million , respectively, related to the acquisition and integration of Novae. Refer to Item 8, Note 18 of the Consolidated Financial Statements ' Transaction and Reorganization Expenses ' for further details. (2) During the three months ended December 31, 2017, the Company recognized a tax expense of $42 million due to the revaluation of net deferred tax assets pursuant to the U.S. Tax Reform. Refer to Item 8, Note 19 of the Consolidated Financial Statements 'Income Taxes' for further details. (3) During the three months ended December 31, 2017, the Company recognized amortization of value of business acquired of $50 million related to the acquisition of Novae. Refer to Item 8, Note 3 and Note 5 of the Consolidated Financial Statements ' Business Combinations ' and ' Goodwill and Intangible Assets ' for further details. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Reinsurance to Close ("RITC") of the 2015 and prior years of account of Syndicate 2007 On January 1, 2018, AXIS Managing Agency, the managing agent of Syndicate 2007 entered into an agreement for the RITC of the 2015 and prior years of account of Syndicate 2007. This contract will be accounted for as a novation reinsurance contract in the three month period ended March 31, 2018. The Company will cede $819 million of reserves for losses and loss expenses, included in Syndicate 2007's balance sheet at December 31, 2017, to a reinsurer. This transaction will result in a reduction in investments and cash representing the consideration due to the reinsurer together with a reduction in reserves for losses and loss expenses representing the transfer of liabilities to the reinsurer. Change to Segments The Company continually monitors and reviews its segment reporting structure in accordance with ASC 280 Segment Reporting to determine whether any changes have occurred that would impact its reporting segments. The Company's accident and health line of business is currently included in the Company's insurance segment. During the first quarter of 2018, the Company plans to realign its accident and health line of business. As a result of the realignment, this business will also be included in the Company's reinsurance segment. The alignment of the Company's accident and health line of business will impact the presentation of the Company's reporting segments. Work is ongoing to recast the Company’s current and prior periods within its financial systems to conform to the new presentation. The Company expects to complete this work during the first quarter of 2018 and to reflect the results of its accident and health business in the Company's insurance and reinsurance segments for the three month period ended March 31, 2018. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2017 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I | AXIS CAPITAL HOLDINGS LIMITED SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES At December 31, 2017 Amortized Cost Fair Value Amount shown on the Balance Sheet (in thousands) Type of investment: Fixed maturities U.S. government and agency $ 1,727,643 $ 1,712,469 $ 1,712,469 Non-U.S. government 798,582 806,299 806,299 Corporate debt 5,265,795 5,297,866 5,297,866 Agency RMBS 2,414,720 2,395,152 2,395,152 CMBS 776,715 777,728 777,728 Non-Agency RMBS 45,713 46,831 46,831 ABS 1,432,884 1,436,281 1,436,281 Municipals 149,167 149,380 149,380 Total fixed maturities $ 12,611,219 12,622,006 12,622,006 Mortgage loans, at amortized cost and fair value 325,062 325,062 Short-term investments, at amortized cost and fair value 83,661 83,661 Equity securities 635,511 635,511 Other investments (1) 667,432 1,009,373 Equity method investments (2) — 108,597 Total investments $ 14,333,672 $ 14,784,210 (1) Other investments exclude investments where the Company is considered to have the ability to exercise significant influence over the operating and financial policies of the investees. (2) Equity method investments are excluded as the Company has the ability to exercise significant influence over the operating and financial policies of the investees. |
SCHEDULE II - CONDENSED FINANCI
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | AXIS CAPITAL HOLDINGS LIMITED CONDENSED BALANCE SHEETS – PARENT COMPANY DECEMBER 31, 2017 AND 2016 2017 2016 (in thousands) Assets Investments in subsidiaries $ 5,532,396 $ 6,033,564 Promissory note receivable from subsidiary — 368,252 Cash and cash equivalents 10,541 99 Other assets 9,480 9,913 Total assets $ 5,552,417 $ 6,411,828 Liabilities Intercompany payable $ 160,950 $ 66,123 Dividends payable 49,907 58,791 Other liabilities 296 14,544 Total liabilities 211,153 139,458 Shareholders’ equity Preferred shares 775,000 1,126,074 Common shares (shares issued 2017: 176,580; 2016: 176,580 2,206 2,206 Additional paid-in capital 2,299,166 2,299,857 Accumulated other comprehensive (income) loss 92,382 (121,841 ) Retained earnings 5,979,666 6,527,627 Treasury shares, at cost (2017: 93,419; 2016: 90,139) (3,807,156 ) (3,561,553 ) Total shareholders’ equity 5,341,264 6,272,370 Total liabilities and shareholders’ equity $ 5,552,417 $ 6,411,828 (1) AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance LLC, a 100% owned finance subsidiary, related to the issuance of $500 million aggregate principal amount of 5.875% senior unsecured notes. AXIS Capital’s obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital. (2) AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary, related to the issuance of $250 million aggregate principal amount of 2.65% and $250 million aggregate principal amount of 5.15% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital. (3) AXIS Capital has fully and unconditionally guaranteed all obligations of AXIS Specialty Finance PLC, a 100% owned finance subsidiary, related to the issuance of $350 million aggregate principal amount of 4.0% senior unsecured notes. AXIS Capital's obligations under this guarantee are unsecured and senior and rank equally with all other senior obligations of AXIS Capital. (4) AXIS Capital has fully and unconditionally guaranteed the derivative instrument obligations of certain of its 100% owned operating subsidiaries. At December 31, 2017 , the notional value of guaranteed obligations utilized aggregated to $ nil ( 2016 : $ 64 million ). (5) On April 15, 2017 the promissory note of $368 million advanced by AXIS Capital to AXIS Specialty Limited on November 7, 2016, matured. For the year ended December 31, 2017, interest earned at an annual rate of 1.132% and was recorded in net investment income. SCHEDULE II AXIS CAPITAL HOLDINGS LIMITED CONDENSED STATEMENTS OF OPERATIONS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2017 , 2016 AND 2015 2017 2016 2015 (in thousands) Revenues Net investment income $ 2,116 $ 656 $ 1 Termination fee received — — 280,000 Total revenues 2,116 656 280,001 Expenses General and administrative expenses 34,933 39,909 8,012 Total expenses 34,933 39,909 8,012 Income (loss) before equity in net income (loss) of subsidiaries (32,817 ) (39,253 ) 271,989 Equity in net income (loss) of subsidiaries (336,152 ) 552,621 369,642 Net income (loss) (368,969 ) 513,368 641,631 Preferred share dividends 46,810 46,597 40,069 Loss on repurchase of preferred shares — 1,309 — Net income (loss) available to common shareholders $ (415,779 ) $ 465,462 $ 601,562 Comprehensive income (loss) $ (154,746 ) $ 579,992 $ 498,740 SCHEDULE II AXIS CAPITAL HOLDINGS LIMITED CONDENSED STATEMENTS OF CASH FLOWS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2017 , 2016 AND 2015 2017 2016 2015 (in thousands) Cash flows from operating activities: Net income (loss) $ (368,969 ) $ 513,368 $ 641,631 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in net income (loss) of subsidiaries 336,152 (552,621 ) (369,642 ) Change in intercompany payable 94,827 33,286 (180,312 ) Dividends received from subsidiaries 400,000 550,000 420,000 Other items 4,988 17,807 (23,614 ) Net cash provided by operating activities 466,998 561,840 488,063 Cash flows from investing activities: Promissory note receivable from subsidiary — (368,252 ) — Capital returned by subsidiary 368,252 — — Net cash provided by (used in) investing activities 368,252 (368,252 ) — Cash flows from financing activities: Net proceeds from issuance of preferred shares — 531,945 — Repurchase of common shares - open market (261,180 ) (495,426 ) (314,204 ) Taxes paid on withholding shares (24,678 ) (14,329 ) (18,048 ) Dividends paid - common shares (135,032 ) (132,323 ) (118,652 ) Repurchase of preferred shares (351,074 ) (51,769 ) — Dividends paid - preferred shares (52,844 ) (39,909 ) (40,088 ) Proceeds from issuance of common shares — 224 3,986 Net cash used in financing activities (824,808 ) (201,587 ) (487,006 ) Increase (decrease) in cash and cash equivalents 10,442 (7,999 ) 1,057 Cash and cash equivalents - beginning of year 99 8,098 7,041 Cash and cash equivalents - end of year $ 10,541 $ 99 $ 8,098 |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY INSURANCE INFORMATION At and year ended December 31, 2017 (in thousands) Deferred Acquisition Costs Reserve for Losses and Loss Expenses Unearned Premiums Net Premiums Earned Net Investment Income (1) Losses And Loss Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses (2) Net Premiums Written Insurance $ 152,070 $ 7,164,364 $ 2,225,647 $ 2,106,363 $ — $ 1,661,032 $ 332,749 $ 344,012 $ 2,087,734 Reinsurance 321,991 5,833,189 1,415,752 2,042,397 — 1,626,740 490,842 105,471 1,939,409 Corporate — — — — 400,805 — — 129,945 — Total $ 474,061 $ 12,997,553 $ 3,641,399 $ 4,148,760 $ 400,805 $ 3,287,772 $ 823,591 $ 579,428 $ 4,027,143 At and year ended December 31, 2016 (in thousands) Deferred Acquisition Costs Reserve for Losses and Loss Expenses Unearned Premiums Net Premiums Earned Net Investment Income (1) Losses And Loss Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses (2) Net Premiums Written Insurance $ 128,880 $ 5,345,655 $ 1,574,164 $ 1,777,321 $ — $ 1,141,933 $ 251,120 $ 346,857 $ 1,807,125 Reinsurance 309,756 4,352,172 1,395,334 1,928,304 — 1,062,264 495,756 135,844 1,945,849 Corporate — — — — 353,335 — — 120,016 — Total $ 438,636 $ 9,697,827 $ 2,969,498 $ 3,705,625 $ 353,335 $ 2,204,197 $ 746,876 $ 602,717 $ 3,752,974 At and year ended December 31, 2015 (in thousands) Deferred Acquisition Costs Reserve for Losses and Loss Expenses Unearned Premiums Net Premiums Earned Net Investment Income (1) Losses And Loss Expenses Amortization of Deferred Acquisition Costs Other Operating Expenses (2) Net Premiums Written Insurance $ 119,186 $ 5,291,218 $ 1,494,068 $ 1,798,191 $ — $ 1,154,928 $ 261,208 $ 341,658 $ 1,759,359 Reinsurance 352,596 4,355,067 1,266,821 1,888,226 — 1,021,271 456,904 145,253 1,915,307 Corporate — — — — 305,336 — — 109,910 — Total $ 471,782 $ 9,646,285 $ 2,760,889 $ 3,686,417 $ 305,336 $ 2,176,199 $ 718,112 $ 596,821 $ 3,674,666 (1) We evaluate the underwriting results of each of our reportable segments separately from the performance of our investment portfolio. As such, we believe it is appropriate to exclude net investment income from our underwriting profitability measure. (2) Amounts related to our reportable segments reflect underwriting-related general and administrative expenses, which includes those general and administrative expenses that are incremental and/or directly attributable to our individual underwriting operations. Corporate expenses include holding company costs necessary to support our worldwide insurance and reinsurance operations and costs associated with operating as a publicly-traded company. As these costs are not incremental and/or directly attributable to our individual underwriting operations, we exclude them from underwriting-related general and administrative expenses. The reconciliation of underwriting-related general and administrative expenses to general and administrative expenses, the most comparable GAAP measure, is presented in Item 7 ' Management’s Discussion and Analysis of Financial Condition and Results of Operations – Executive summary, Results of Operations'. |
SCHEDULE IV - SUPPLEMENTARY REI
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2017 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY REINSURANCE INFORMATION YEARS ENDED DECEMBER 31, 2017 , 2016 AND 2015 (in thousands) DIRECT GROSS PREMIUM CEDED TO OTHER COMPANIES ASSUMED FROM OTHER COMPANIES NET AMOUNT PERCENTAGE OF AMOUNT ASSUMED TO NET 2017 Property and Casualty $ 2,228,022 $ 1,523,662 $ 2,814,173 $ 3,518,533 80.0 % Accident and Health 195,104 5,468 318,974 508,610 62.7 % Total $ 2,423,126 $ 1,529,130 $ 3,133,147 $ 4,027,143 77.8 % 2016 Property and Casualty $ 1,975,497 $ 1,215,775 $ 2,564,606 $ 3,324,328 77.1 % Accident and Health 136,681 1,459 293,424 428,646 68.5 % Total $ 2,112,178 $ 1,217,234 $ 2,858,030 $ 3,752,974 76.2 % 2015 Property and Casualty $ 1,901,757 $ 910,917 $ 2,350,680 $ 3,341,520 70.3 % Accident and Health 129,808 18,147 221,485 333,146 66.5 % Total $ 2,031,565 $ 929,064 $ 2,572,165 $ 3,674,666 70.0 % |
SIGNIFICANT ACCOUNTING POLICI36
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of presentation | These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the U.S. ("U.S. GAAP") and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC") and include AXIS Capital and its wholly-owned subsidiaries Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. |
Consolidation/VIEs | All inter-company accounts and transactions have been eliminated. |
Reclassification | To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity. |
Use of estimates | Use of Estimates The preparation of these consolidated financial statements requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. While management believes that the amounts included in the consolidated financial statements reflect its best estimates and assumptions, actual results could differ from those estimates. The Company’s principal estimates include: • reserve for losses and loss expenses; • reinsurance recoverable on unpaid losses, including the provision for uncollectible amounts; • gross and net premiums written and net premiums earned; • other-than-temporary impairments ("OTTI") in the carrying value of available-for-sale securities; and • fair value measurements for its financial assets and liabilities. |
Investments | Investments Investments available for sale Fixed maturities and equity securities classified as "available for sale" are reported at fair value at the balance sheet date (see Note 7 ' Fair Value Measurements '). The change in fair value (net unrealized gain (loss)) on available for sale investments, net of tax, is included as a separate component of accumulated other comprehensive income (loss) ("AOCI") in shareholders’ equity. Net investment income includes interest and dividend income and the amortization of market premiums and discounts and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of investments are recorded on a trade-date basis and realized gains (losses) on sales of investments are determined based on the specific identification method. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if any. The effective yield used to determine the amortization for fixed maturities subject to prepayment risk (e.g. asset-backed, loan-backed and other structured securities) is recalculated and adjusted periodically based upon actual historical and/or projected future cash flows. The adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. The adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. On a quarterly basis, the Company assesses whether unrealized losses on available for sale investments represent impairments that are other than temporary. Several factors are considered in this assessment including, but not limited to: (i) the extent and duration of the decline; (ii) the reason for the decline (e.g. credit spread widening, credit event, foreign exchange rate movements); (iii) the historical and implied future volatility of the fair value; (iv) the financial condition and near-term prospects of the issuer; and (v) the collateral structure and credit support of the security, if applicable. A fixed maturity is impaired if the fair value of the investment is below amortized cost. If a fixed maturity is impaired, additional analysis is performed to determine whether the impairment is temporary or other-than-temporary. For an impaired fixed maturity where the Company intends to sell the security or it is more likely than not that the Company will be required to sell the security before its anticipated recovery, the impairment is considered other than temporary. The full amount of the impairment is charged to net income and is included in net realized investment gains (losses). In instances, where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss of the security and recognizes only this portion of the impairment in net income, with the remaining non-credit related balance of the impairment (i.e. related to interest rates, market conditions, etc.) recognized in AOCI. The Company recognizes impairments on equity securities in an unrealized loss position when the Company does not have the ability and intent to hold the security for a reasonable period of time to allow for a full recovery. The full amount of the impairment is charged to net income and is included in net realized investment gains (losses). Upon recognition of an OTTI charge, the new cost basis for the security is the previous amortized cost for a fixed maturity or cost for an equity security less the OTTI charge recognized in net income. The new cost basis is not adjusted for subsequent recoveries in fair value except for fixed maturities whereby the difference between the new cost basis and the expected cash flows is accreted on a quarterly basis to net investment income over the remaining life of the fixed maturity. Mortgage loans held-for-investment Mortgage loans held-for-investment are stated at amortized cost calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and are net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized using an effective yield method giving effect to the amortization of premiums and accretion of discounts. Other investments Other investments are recorded at fair value (refer to Note 7 ' Fair Value Measurements '), with both changes in fair value and realized investment gains (losses) reported in net investment income. Equity Method Investments Investments in which the Company has significant influence over the operating and financial policies of the investee are classified as equity method investments and are accounted for using the equity method of accounting. In applying the equity method of accounting, investments are initially recorded at cost and are subsequently adjusted based on the Company’s proportionate share of net income or loss of the investee. Adjustments are based on the most recently available financial information from the investee. Changes in the carrying value of such investments are recorded in net income as interest in income (loss) of equity method investments. Short-term investments Short-term investments primarily comprise highly-liquid debt securities with maturities greater than three months but less than one year from the date of purchase. These investments are carried at amortized cost, which approximates fair value. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements placed with a maturity of under 90 days when purchased. Cash and cash equivalents are recorded at amortized cost, which approximates fair value due to the short-term, liquid nature of these securities. Restricted cash primarily relates to funds held in trust in support of obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of the Syndicate 1686 and Syndicate 2007 at Lloyd's of London ("Lloyd's") |
Premiums (gross premiums written) | Insurance premiums written are recorded in accordance with the terms of the underlying policies. Reinsurance premiums are recorded at the inception of the contract and are estimated based upon information received from ceding companies. For multi-year contracts where (re)insurance premiums are payable in annual installments, premiums are recorded at the inception of the contract based on management’s best estimate of total premiums to be received. However, premiums are normally recognized on an annual basis for multi-year contracts where the cedant has the ability to unilaterally commute or cancel coverage within the term of the policy. The remaining annual premiums are included as written at each successive anniversary date within the multi-year term. Any subsequent differences arising on insurance and reinsurance premium estimates are recorded in the period they are determined. |
Premiums (net premiums earned) | (Re)insurance premiums are earned evenly over the period during which the Company is exposed to the underlying risk, which is generally one to two years with the exception of multi-year contracts. Unearned premiums represent the portion of premiums written which is applicable to the unexpired risks under contracts in force. Reinstatement premiums are recognized and earned at the time a loss event occurs, where the coverage limits for the remaining life of the contract are reinstated under pre-defined contract terms. The accrual of reinstatement premiums is based on estimates of losses and loss adjustment expenses, which reflects management’s judgment, as described in Note 2(d) ' Losses and Loss Expenses ' below. |
Premiums (receivables) | Premiums receivable balances are reviewed for impairment at least quarterly and an allowance is established for amounts considered uncollectible. |
Acquisition costs | Acquisition Costs Acquisition costs vary with and are directly related to the successful acquisition efforts of acquiring new or renewing existing(re)insurance contracts and consist primarily of fees and commissions paid to brokers and premium taxes. Premiums receivable are presented net of applicable acquisition costs when contract terms provide for the right of offset. Acquisition costs are shown net of commissions earned on ceded reinsurance. Net acquisition costs are deferred and charged to expense as the related premium is earned. Anticipated losses and loss expenses, other costs and investment income related to these premiums are considered in assessing the recoverability of deferred acquisition costs. If deferred amounts are estimated to be unrecoverable, they are expensed. Compensation expenses for personnel involved in contract acquisition, as well as advertising costs, are expensed as incurred. |
Losses and loss expenses | Losses and Loss Expenses Reserve for losses and loss expenses represents an estimate of the unpaid portion of the ultimate liability for losses and loss expenses for (re)insured events that have occurred at or before the balance sheet date. The balance reflects both claims that have been reported ("case reserves") and claims that have been incurred but not yet reported ("IBNR"). These amounts are reduced for estimated amounts of salvage and subrogation recoveries. The Company reviews its reserve for losses and loss expenses on a quarterly basis. Case reserves are primarily established based on amounts reported from insureds and/or their brokers. Management estimates IBNR after reviewing detailed actuarial analyses and applying informed judgment regarding qualitative factors that may not be fully captured in the actuarial estimates. A variety of actuarial methods are utilized in this process, including the Expected Loss Ratio, Bornhuetter-Ferguson and Chain Ladder methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and class of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to previous reserve for losses and loss expenses estimates are recognized in the period they are determined. While the Company believes that its reserves for losses and loss expenses are adequate, this estimate requires significant judgment and new information, events or circumstances may result in ultimate losses that are materially greater or less than provided for in the Consolidated Balance Sheets. |
Reinsurance | Reinsurance In the normal course of business, the Company purchases reinsurance protection to limit its ultimate losses from catastrophic events and to reduce its loss aggregation risk. The premiums paid to reinsurers (i.e. premiums ceded) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded applicable to the unexpired term of the contracts in force. Reinstatement-related premiums ceded are recorded at the time a loss event occurs and coverage limits for the remaining life of a contract are reinstated under pre-defined contract terms with premiums are expensed over the remaining risk period. Reinsurance recoverable related to case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance coverage to individual case reserve estimates. The estimate of reinsurance recoverable related to IBNR reserves is generally developed as part of the loss reserving process. Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes will ultimately not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. The Company applies case-specific provisions against certain recoveries that it deems unlikely to be collected in full. In addition, the Company uses a default analysis to estimate the provision for uncollectible amounts on the remainder of the balance. The estimates of reinsurance recoverable and the associated provision require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to amounts recognized in prior periods are reported in net losses and loss expenses in the consolidated statements of operations for the period when the adjustments were identified. Retroactive Reinsurance Retroactive reinsurance reimburses a ceding company for liabilities incurred as a result of past insurable events covered under contracts subject to the reinsurance. In certain instances, reinsurance contracts cover losses both on a prospective basis and on a retroactive basis and where practical the Company bifurcates the prospective and retrospective elements of these reinsurance contracts and accounts for each element separately. Initial gains in connection with retroactive reinsurance contracts are deferred and amortized into income over the settlement period while losses are recognized immediately. When changes in the estimated amount recoverable from the reinsurer or in the timing of receipts related to that amount occur, a cumulative amortization adjustment is recognized in earnings in the period of the change so that the deferred gain reflects the balance that would have existed had the revised estimate been available at the inception of the reinsurance transaction. |
Foreign exchange | Foreign Exchange The Company’s reporting currency is the U.S. dollar. In translating the financial statements of its subsidiaries or branches where the functional currency is other than the U.S. dollar, assets and liabilities are converted into U.S. dollars using the rates of exchange in effect at the balance sheet dates and revenues and expenses are converted using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in shareholders’ equity. In recording foreign currency transactions, revenue and expense items are converted to the relevant functional currency at the exchange rate prevailing at the transaction date. Assets and liabilities originating in currencies other than the functional currency are remeasured to the functional currency at the rates of exchange in effect at the balance sheet date. The resulting foreign currency gains or losses are recognized in the Consolidated Statements of Operations, with the exception of those related to foreign-denominated available for sale investments. For these investments, exchange rate fluctuations represent an unrealized appreciation/depreciation in the value of the securities and are included in the related component of AOCI. |
Share-based compensation | Share-Based Compensation The Company is authorized to issue restricted stock units, performance units, restricted shares, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes both share and cash-settled awards comprising of service and performance based awards. The fair value of share service-based awards is measured at the grant date, with the associated expense recognized on a straight-line basis over the service period. The fair value of equity performance-vesting restricted stock units ("PSUs") is measured at the grant date based on pre-established targets relating to certain performance based measures achieved by the Company, with the associated expense recognized on a straight-line basis over the applicable performance and vesting period. The compensation expense for PSUs is subject to a periodic review and adjustment taking into account actual performance of the Company. The fair value of the liability associated with service and performance based cash-settled awards is re-measured at each balance sheet date, with the effects recognized as an increase or decrease to share-based compensation expense for the period. Effective, January 1, 2017, the Company made an accounting policy election to account for forfeitures when they occur. |
Derivatives instruments | Derivative Instruments The Company may enter into derivative instruments such as futures, options, interest rate swaps and foreign currency forward contracts as part of its overall foreign currency risk management strategy, to obtain exposure to a particular financial market or for yield enhancement. During 2013, the Company began to write derivative based risk management products designed to address weather and commodity price risks, with the objective of generating profits on a portfolio basis. Effective July 1, 2017, the Company no longer writes derivative-based risk management products which address weather risks. From time to time the Company may also enter into (re)insurance contracts that meet the Financial Accounting Standards Board's ("FASB") definition of a derivative contract. The Company measures all derivative instruments at fair value (see Note 7 ' Fair Value Measurements ') and recognizes them as either assets or liabilities in the Consolidated Balance Sheets. Subsequent changes in fair value and any realized gains or losses are recognized in the Consolidated Statements of Operations. |
Goodwill and intangible assets | Goodwill and Intangible Assets The Company recognizes goodwill and other intangible assets in connection with certain acquisitions. Goodwill represents the excess of the purchase price paid over the fair value of the net assets acquired in these acquisition and is not amortized. Other intangible assets with a finite life are amortized over the estimated useful live of the intangible asset. Other intangible assets with an indefinite life are not amortized. The Company tests goodwill and indefinite intangible assets for potential impairment during the fourth quarter each year and between annual tests if an event occurs or changes in circumstances indicate that the asset is impaired. Such events or circumstances may include an economic downturn in a geographic market or a change in the assessment of future operations. For the purposes of evaluating goodwill for impairment, the Company may first perform a qualitative assessment , to determine whether it is necessary to perform the two-step goodwill impairment test. If determined to be necessary, the two-step impairment test is used to identify potential goodwill impairment and measure the amount of a goodwill impairment loss to be recognized, if any. The first step of the goodwill impairment test, used to identify potential impairment, compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired and the second step of the impairment test is unnecessary. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test shall be performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of reporting unit goodwill with the carrying amount of that goodwill. For the purposes of evaluating indefinite lived intangibles for impairment, the Company may first perform a qualitative assessment to determine whether it is necessary to perform the quantitative impairment test. If the Company elects to perform a qualitative assessment, it first assesses qualitative factors to determine whether it is more likely than not that an indefinite lived intangible asset is impaired. If the Company determines that it is not more likely than not that the indefinite lived intangible asset is impaired, the Company does not calculate the fair value of the intangible asset and perform the quantitative impairment test. For the purposes of evaluating goodwill and indefinite lived intangible assets for impairment, the Company has an unconditional option to bypass the qualitative assessment in any period and proceed directly to performing the quantitative impairment test. The Company may resume performing the qualitative assessment in any subsequent period. For other definite lived intangible asset the Company tests for recoverability whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company recognizes an impairment loss if the carrying amount of the asset is not recoverable and exceeds its fair value. The carrying amount of a definite lived intangible asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. If goodwill or an intangible asset is impaired, the carrying value of the asset is reduced to fair value and a corresponding expense is recorded in the Consolidated Statements of Operations. |
Income taxes | Income Taxes Certain subsidiaries and branches of the Company operate in jurisdictions where they are subject to taxation. Current and deferred income taxes are charged or credited to net income, or in certain cases to AOCI, based upon enacted tax laws and rates applicable in the relevant jurisdiction in the period in which the tax becomes accruable or realizable. Deferred income taxes are provided for all temporary differences between the bases of assets and liabilities used in the Consolidated Balance Sheets and those used in the various jurisdictional tax returns. When the assessment indicates that it is more likely than not that a portion of a deferred tax asset will not be realized in the foreseeable future, a valuation allowance against deferred tax assets is recorded. The Company recognizes the tax benefits of uncertain tax positions only when the position is more-likely-than-not to be sustained upon audit by the relevant taxing authorities. |
Treasury shares | Treasury Shares Common shares repurchased by the Company and not subsequently canceled are classified as treasury shares and are recorded at cost. This results in a reduction of shareholders’ equity in the Consolidated Balance Sheets. When shares are reissued from treasury, the Company uses the average cost method to determine the cost of the reissued shares. Gains on sales/reissuances of treasury shares are credited to additional paid-in capital, while losses are charged to additional paid-in capital to the extent that previous net gains from reissued treasury shares were included therein; otherwise losses are charged to retained earnings. |
New Accounting Standards Adopted, Recently Issued Accounting Standards Not Yet Adopted | 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 are 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. Cash paid by the Company by directly withholding shares for tax withholding purposes is included in taxes paid on withholding shares in the Consolidated Statement of Cash Flows. To facilitate comparison of information with prior year amounts, the corresponding amounts for the years ended December 31, 2016 and 2015 have been reclassified to conform to the current year's presentation. The adoption of this guidance did not have a material impact on the Company's results of operations, financial condition and liquidity. m) Recently 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. 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 not within 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 within the scope of ASU 2014-09. The Company's current accounting policy to recognize fee income when the related services have been performed is consistent with the guidance in this ASU. As a result, the Company does not expect the adoption of this guidance to have a material impact on its results of operations, financial condition and liquidity. Recognition and Measurement of Financial Assets and Financial Liabilities In January 2016, the FASB issued ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities" which requires: • equity investments (except those accounted for under the equity method of accounting, investments that are consolidated or those that meet a practicability exception) to be measured at fair value with changes in fair value recognized in net income, • simplifies the impairment assessment of equity investments without readily determinable values by requiring a qualitative assessment to identify impairment, eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost, • requires the use of the exit price notion when measuring the fair value of financial instruments for disclosure purposes, • requires separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liabilities in accordance with the fair value option, • requires the separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and • clarifies that the reporting organization should evaluate the need for a valuation allowance on a deferred tax asset related to available for sale securities in combination with the organization’s other deferred tax assets. This guidance is effective for interim and annual reporting periods beginning after December 15, 2017 with early adoption permitted for certain of the amendments. The adoption of this guidance is expected to have a material impact on the Company's results of operations as changes in fair value of equity securities will be included in net income rather than other comprehensive income. At December 31, 2017, accumulated other comprehensive income included $70 million of net unrealized gains on equity securities, net of taxes. Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which provides a new comprehensive model for lease accounting. The guidance will require a lessee to recognize a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. 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 the Company's results of operations, financial condition and liquidity. Measurement of Credit Losses on Financial Instrument In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments " which replaces the "incurred loss" impairment methodology with an approach based on "expected losses" to estimate credit losses on certain types of financial instruments and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. The guidance also provides for a simplified accounting model for purchased financial assets with credit deterioration since their origination. This guidance is effective for interim and annual periods beginning after December 15, 2019. Early adoption is permitted for interim and annual periods beginning after December 15, 2018. The Company is currently evaluating the impact of this guidance on its results of operations, financial condition and liquidity. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230) - Classification of Certain Cash Receipts and Cash Payments " which addresses diversity in practice in how eight specific cash receipts and cash payments should be presented and classified on the statement of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. As this guidance relates solely to financial statement disclosures, the adoption of ASU 2016-18, will not impact the Company's results of operations, financial condition and liquidity. Restricted Cash In November 2016, the FASB issued ASU 2016-18, "Statement of Cash Flows (Topic 230) - Restricted Cash " which addresses diversity in practice in the classification and presentation of changes in restricted cash on the statement of cash flows. This guidance will require a statement of cash flows to explain the change during the period in the total of cash, cash equivalents, restricted cash and restricted cash equivalents. Transfers between cash and cash equivalents and restricted cash and restricted cash equivalents will no longer be presented on the statement of cash flows. This guidance is effective for interim and annual periods beginning after December 15, 2017, with early adoption permitted. The guidance will be adopted on a retrospective basis. As this guidance relates solely to financial statement disclosures, the adoption of ASU 2016-18, will not impact the Company's results of operations, financial condition and liquidity. Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment " that eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test) to measure a goodwill impairment charge. Instead, an impairment charge will be based on the excess of a reporting unit's carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current goodwill impairment test). This guidance is effective for annual and interim impairment tests performed in periods beginning after December 15, 2019, with early adoption permitted for annual and interim goodwill impairment testing dates after January 1, 2017. The guidance will be adopted on a prospective basis. 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 its 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 anticipates adopting this guidance effective January 1, 2018. The adoption of this guidance will not materially impact the Company's results of operations, financial condition or liquidity. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income In February 2018, the FASB issued ASU 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income " in response to a financial reporting issue that arose as a consequence of the U.S. federal government tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 ("U.S. Tax Reform") which was enacted on December 22, 2017. U.S. GAAP currently requires deferred tax liabilities and assets to be adjusted for the effect of a change in tax laws or rates with the effect included in income from continuing operations in the reporting period that includes the enactment date. This guidance is applicable even in situations in which the related income tax effects of items in accumulated other comprehensive income were originally recognized in other comprehensive income rather than in income from continuing operations. As the adjustment of deferred taxes due to the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate is required to be included in income from continuing operations, the tax effects of items within accumulated other comprehensive income (referred to as stranded tax effects for purposes of this Update) do not reflect the appropriate tax rate. The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from U.S. Tax Reform. Consequently, the amendments eliminate the stranded tax effects resulting from U.S. Tax Reform and will improve the usefulness of information reported to financial statement users. However, because the amendments only relate to the reclassification of the income tax effects of U.S. Tax Reform, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2018, with early adoption permitted. The Company anticipates adopting this guidance effective January 1, 2018. As a consequence of U.S. Tax Reform, the Company recognized a tax benefit of $2 million related to the revaluation of net deferred tax liabilities associated with the reduction in the U.S. corporate income tax rate from 35% to 21%, attributable to net unrealized investment gains associated with investment held by the Company's U.S domiciled entities. The adoption of this guidance will not materially impact the Company's results of operations, financial condition or liquidity. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Business Combinations [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | The fair value of the assets acquired and liabilities assumed and the allocation of the purchase price on the acquisition date are summarized in the following table: Total purchase price paid $ 616,926 Assets Investments 1,733,611 Cash and cash equivalents 191,337 Insurance and reinsurance premium balances receivable 472,180 Reinsurance recoverable on unpaid and paid losses 787,907 Prepaid reinsurance premiums 197,907 Other assets 42,696 Total assets acquired $ 3,425,638 Liabilities Reserve for losses and loss expenses 2,125,634 Unearned premiums 717,442 Insurance and reinsurance balances payable 273,405 Notes payable 101,846 Other liabilities 124,585 Total liabilities assumed $ 3,342,912 Fair value of identifiable intangible assets: Value of business acquired - definite lived intangible asset 256,942 Identifiable definite lived intangible assets 128,463 Identifiable indefinite lived intangible assets 94,748 Excess purchase price over fair value of net assets acquired assigned to goodwill $ 54,047 |
Intangible assets acquired as part of business combination | Identifiable intangible assets at the acquisition date are included in intangible assets in the Consolidated Balance Sheets and are shown in the following table: Economic Useful Life Indefinite lived intangible assets Lloyd's syndicate capacity $ 94,748 Indefinite Finite lived other intangible assets Distribution networks: Coverholders 63,565 12 years Large brokers 46,641 15 years Small & Mid-sized Enterprise ("SME") brokers 14,126 12 years Managing General Agent ("MGA") Contract 4,131 7 years Total 128,463 Identifiable intangible assets at October 2, 2017 $ 223,211 |
Business acquisition, pro forma information | The following selected audited information is a summary of the results of Novae that has been included in the Consolidated Financial Statements for the year ended December 31, 2017. From acquisition date to (in thousands) December 31, 2017 Net premiums written $ 140,635 Total revenue 191,929 Total expenses (197,895 ) Net income $ (5,966 ) Years ended December 31, 2017 2016 (in thousands) (unaudited) (unaudited) Net premiums earned $ 4,728,700 $ 4,560,800 Net income $ (468,400 ) $ 532,500 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
UNDERWRITING RESULTS OF REPORTABLE SEGMENTS | The following tables summarize the underwriting results of the reportable segments, as well as the carrying values of allocated goodwill and intangible assets: At and year ended December 31, 2017 Insurance Reinsurance Total Gross premiums written $ 3,127,837 $ 2,428,436 $ 5,556,273 Net premiums written 2,087,734 1,939,409 4,027,143 Net premiums earned 2,106,363 2,042,397 4,148,760 Other insurance related income (losses) 3,458 (4,698 ) (1,240 ) Net losses and loss expenses (1,661,032 ) (1,626,740 ) (3,287,772 ) Acquisition costs (332,749 ) (490,842 ) (823,591 ) General and administrative expenses (344,012 ) (105,471 ) (449,483 ) Underwriting loss $ (227,972 ) $ (185,354 ) (413,326 ) Corporate expenses (129,945 ) Net investment income 400,805 Net realized investment losses 28,226 Foreign exchange losses (134,737 ) Interest expense and financing costs (54,811 ) Bargain purchase gain 15,044 Transaction and reorganization expenses (26,718 ) Amortization of value of business acquired (50,104 ) Amortization of intangibles (2,543 ) Loss before income taxes and interest in income (loss) of equity method investments $ (368,109 ) Net loss and loss expense ratio 78.9 % 79.6 % 79.2 % Acquisition cost ratio 15.8 % 24.0 % 19.9 % General and administrative expense ratio 16.3 % 5.2 % 14.0 % Combined ratio 111.0 % 108.8 % 113.1 % Goodwill and intangible assets $ 566,828 $ — $ 566,828 At and year ended December 31, 2016 Insurance Reinsurance Total Gross premiums written $ 2,720,242 $ 2,249,966 $ 4,970,208 Net premiums written 1,807,125 1,945,849 3,752,974 Net premiums earned 1,777,321 1,928,304 3,705,625 Other insurance related income 89 7,133 7,222 Net losses and loss expenses (1,141,933 ) (1,062,264 ) (2,204,197 ) Acquisition costs (251,120 ) (495,756 ) (746,876 ) General and administrative expenses (346,857 ) (135,844 ) (482,701 ) Underwriting income $ 37,500 $ 241,573 279,073 Corporate expenses (120,016 ) Net investment income 353,335 Net realized investment loss (60,525 ) Foreign exchange gains 121,295 Interest expense and financing costs (51,360 ) Income before income taxes and interest in income (loss) of equity method investments $ 521,802 Net loss and loss expense ratio 64.3 % 55.1 % 59.5 % Acquisition cost ratio 14.1 % 25.7 % 20.2 % General and administrative expense ratio 19.5 % 7.0 % 16.2 % Combined ratio 97.9 % 87.8 % 95.9 % Goodwill and intangible assets $ 85,049 $ — $ 85,049 At and year ended December 31, 2015 Insurance Reinsurance Total Gross premiums written $ 2,583,081 $ 2,020,649 $ 4,603,730 Net premiums written 1,759,359 1,915,307 3,674,666 Net premiums earned 1,798,191 1,888,226 3,686,417 Other insurance related income (losses) 1,036 (3,989 ) (2,953 ) Net losses and loss expenses (1,154,928 ) (1,021,271 ) (2,176,199 ) Acquisition costs (261,208 ) (456,904 ) (718,112 ) General and administrative expenses (341,658 ) (145,253 ) (486,911 ) Underwriting income $ 41,433 $ 260,809 302,242 Corporate expenses (109,910 ) Net investment income 305,336 Net realized investment loss (138,491 ) Foreign exchange gains 102,312 Interest expense and financing costs (50,963 ) Termination fee received 280,000 Transaction and reorganization expenses (45,867 ) Income before income taxes and interest in income (loss) of equity method investments $ 644,659 Net loss and loss expense ratio 64.2 % 54.1 % 59.0 % Acquisition cost ratio 14.5 % 24.2 % 19.5 % General and administrative expense ratio 19.1 % 7.7 % 16.2 % Combined ratio 97.8 % 86.0 % 94.7 % Goodwill and intangible assets $ 86,858 $ — $ 86,858 |
GROSS PREMIUMS WRITTEN BY GEOGRAPHICAL LOCATION OF SUBSIDIARIES | The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Year ended December 31, 2017 2016 2015 Bermuda $ 529,425 $ 465,980 $ 525,226 Ireland 1,569,956 1,650,229 1,532,753 U.S. 2,814,933 2,562,789 2,364,099 Lloyd's of London 641,959 291,210 181,652 Total gross premium written $ 5,556,273 $ 4,970,208 $ 4,603,730 |
NET PREMIUMS EARNED BY SEGMENT AND LINE OF BUSINESS | The following table presents net premiums earned by segment and line of business: Year ended December 31, 2017 2016 2015 Insurance Property $ 543,342 $ 426,918 $ 432,587 Marine 181,533 150,046 183,696 Terrorism 36,084 33,279 36,818 Aviation 75,107 44,980 45,659 Credit and Political Risk 56,432 57,964 63,583 Professional Lines 519,759 510,806 596,430 Liability 188,770 169,182 161,614 Accident and Health 489,046 384,146 277,804 Discontinued lines - Novae 16,290 — — Total Insurance 2,106,363 1,777,321 1,798,191 Reinsurance Catastrophe 209,470 199,825 216,020 Property 304,376 272,403 306,083 Professional Lines 226,622 289,868 310,915 Credit and Surety 244,186 252,210 250,208 Motor 371,501 318,863 299,883 Liability 351,940 332,479 297,000 Agriculture 195,391 142,501 129,346 Engineering 66,291 62,833 61,043 Marine and Other 64,449 57,322 17,728 Discontinued lines - Novae 8,171 — — Total Reinsurance 2,042,397 1,928,304 1,888,226 Total $ 4,148,760 $ 3,705,625 $ 3,686,417 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS | Goodwill and intangible assets are shown in the following table: Goodwill Intangible assets with an indefinite life Intangible assets with a finite life Total Balance at December 31, 2015 Gross amount $ 42,237 $ 26,036 $ 29,166 $ 97,439 Accumulated amortization n/a n/a (13,390 ) (13,390 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 15,776 88,960 Acquired during the year — — 13,330 13,330 Amortization n/a n/a (2,493 ) (2,493 ) Impairment charges — — (12,939 ) (12,939 ) Balance at December 31, 2016 Gross amount (1) 42,237 26,036 23,030 91,303 Accumulated amortization (1) n/a n/a (9,356 ) (9,356 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 13,674 86,858 Amortization n/a n/a (1,809 ) (1,809 ) Balance at December 31, 2017 Gross amount $ 42,237 $ 26,036 $ 23,030 $ 91,303 Accumulated amortization n/a n/a (11,165 ) (11,165 ) Accumulated translation adjustment 4,911 — — 4,911 47,148 26,036 11,865 85,049 Acquired during the year 54,855 94,748 387,545 537,148 Amortization n/a n/a (55,369 ) (55,369 ) $ 102,003 $ 120,784 $ 344,041 $ 566,828 n/a – not applicable (1) During the year ended December 31, 2017, an amount of $ 6,136 and 7,945 was adjusted from gross amount and accumulated amortization, respectively, as a result of the wind-down of the Company's retail insurance operations in Australia. |
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS | The gross amount and accumulated amortization by category of VOBA and intangible assets is shown in the following table: VOBA and intangible assets Balance At December 31, 2017 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,244 ) 456 Customer relationships and customers lists - Ternian 13,330 (3,666 ) 9,664 Other intangibles - Aviabel 2,140 (977 ) 1,163 VOBA - Novae 256,942 (50,104 ) 206,838 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (1,324 ) 62,241 Large brokers 46,641 (777 ) 45,864 SME brokers 14,126 (294 ) 13,832 MGA contract 4,131 (148 ) 3,983 $ 531,359 $ (66,534 ) $ 464,825 Intangible assets Balance At December 31, 2016 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (8,832 ) 868 Customer relationships and customers lists - Ternian 13,330 (2,333 ) 10,997 $ 49,066 $ (11,165 ) $ 37,901 |
SCHEDULE OF INDEFINITE-LIVED INTANGIBLE ASSETS | The gross amount and accumulated amortization by category of VOBA and intangible assets is shown in the following table: VOBA and intangible assets Balance At December 31, 2017 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,244 ) 456 Customer relationships and customers lists - Ternian 13,330 (3,666 ) 9,664 Other intangibles - Aviabel 2,140 (977 ) 1,163 VOBA - Novae 256,942 (50,104 ) 206,838 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (1,324 ) 62,241 Large brokers 46,641 (777 ) 45,864 SME brokers 14,126 (294 ) 13,832 MGA contract 4,131 (148 ) 3,983 $ 531,359 $ (66,534 ) $ 464,825 Intangible assets Balance At December 31, 2016 Gross amount Accumulated amortization Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (8,832 ) 868 Customer relationships and customers lists - Ternian 13,330 (2,333 ) 10,997 $ 49,066 $ (11,165 ) $ 37,901 |
FUTURE AMORTIZATION EXPENSE | The estimated amortization expense of VOBA and intangible assets with a finite life is shown in the following table: VOBA Intangible assets Total 2018 $ 171,124 $ 13,025 $ 184,149 2019 26,722 11,606 38,328 2020 5,139 11,506 16,645 2021 3,853 11,506 15,359 2022 — 11,506 11,506 2023 and thereafter — 78,054 78,054 Total remaining amortization expense 206,838 137,203 344,041 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 206,838 $ 257,987 $ 464,825 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 the Company's 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 December 31, 2017 Fixed maturities U.S. government and agency $ 1,727,643 $ 1,735 $ (16,909 ) $ 1,712,469 $ — Non-U.S. government 798,582 17,240 (9,523 ) 806,299 — Corporate debt 5,265,795 61,922 (29,851 ) 5,297,866 — Agency RMBS (1) 2,414,720 8,132 (27,700 ) 2,395,152 — CMBS (2) 776,715 4,138 (3,125 ) 777,728 — Non-Agency RMBS 45,713 1,917 (799 ) 46,831 (853 ) ABS (3) 1,432,884 5,391 (1,994 ) 1,436,281 — Municipals (4) 149,167 1,185 (972 ) 149,380 — Total fixed maturities $ 12,611,219 $ 101,660 $ (90,873 ) $ 12,622,006 $ (853 ) Equity securities Common stocks $ 22,836 $ 3,412 $ (590 ) $ 25,658 Exchange-traded funds 356,252 71,675 (294 ) 427,633 Bond mutual funds 173,779 9,440 (999 ) 182,220 Total equity securities $ 552,867 $ 84,527 $ (1,883 ) $ 635,511 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 December 31, 2017 Maturity Due in one year or less $ 486,659 $ 484,663 3.8 % Due after one year through five years 4,906,207 4,912,189 38.9 % Due after five years through ten years 2,338,964 2,350,433 18.6 % Due after ten years 209,357 218,729 1.7 % 7,941,187 7,966,014 63.0 % Agency RMBS 2,414,720 2,395,152 19.0 % CMBS 776,715 777,728 6.2 % Non-Agency RMBS 45,713 46,831 0.4 % ABS 1,432,884 1,436,281 11.4 % Total $ 12,611,219 $ 12,622,006 100.0 % 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 December 31, 2017 Fixed maturities U.S. government and agency $ 194,916 $ (5,963 ) $ 1,389,792 $ (10,946 ) $ 1,584,708 $ (16,909 ) Non-U.S. government 62,878 (6,806 ) 204,110 (2,717 ) 266,988 (9,523 ) Corporate debt 407,300 (11,800 ) 2,041,845 (18,051 ) 2,449,145 (29,851 ) Agency RMBS 759,255 (17,453 ) 1,172,313 (10,247 ) 1,931,568 (27,700 ) CMBS 31,607 (703 ) 348,943 (2,422 ) 380,550 (3,125 ) Non-Agency RMBS 8,029 (788 ) 4,197 (11 ) 12,226 (799 ) ABS 57,298 (570 ) 392,170 (1,424 ) 449,468 (1,994 ) Municipals 11,230 (269 ) 65,632 (703 ) 76,862 (972 ) Total fixed maturities $ 1,532,513 $ (44,352 ) $ 5,619,002 $ (46,521 ) $ 7,151,515 $ (90,873 ) Equity securities Common stocks $ — $ — $ 3,202 $ (590 ) $ 3,202 $ (590 ) Exchange-traded funds — — 12,323 (294 ) 12,323 (294 ) Bond mutual funds — — 12,184 (999 ) 12,184 (999 ) Total equity securities $ — $ — $ 27,709 $ (1,883 ) $ 27,709 $ (1,883 ) 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 the Company's mortgage loans held-for-investment: December 31, 2017 December 31, 2016 Carrying Value % of Total Carrying Value % of Total Mortgage Loans held-for-investment: Commercial $ 325,062 100 % $ 349,969 100 % 325,062 100 % 349,969 100 % Valuation allowances — — % — — % Total Mortgage Loans held-for-investment $ 325,062 100 % $ 349,969 100 % |
PORTFOLIO OF OTHER INVESTMENTS | The following tables provide a breakdown of the Company's other investments, together with additional information relating to the liquidity of each category: Fair Value Redemption Frequency (if currently eligible) Redemption Notice Period At December 31, 2017 Long/short equity funds $ 38,470 4 % Annually 60 days Multi-strategy funds 286,164 28 % Quarterly, Semi-annually 60-95 days Event-driven funds 39,177 4 % Annually 45 days Direct lending funds 250,681 25 % n/a n/a Private equity funds 68,812 7 % n/a n/a Real estate funds 50,009 5 % n/a n/a CLO-Equities 31,413 2 % n/a n/a Other privately held investments 46,430 5 % n/a n/a Overseas deposits 198,217 20 % n/a n/a Total other investments $ 1,009,373 100 % 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 Overseas deposits — — % 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: Year ended December 31, 2017 2016 2015 Fixed maturities $ 312,662 $ 305,459 $ 294,725 Other investments 76,858 42,514 20,148 Equity securities 14,919 16,306 11,289 Mortgage loans 10,780 7,996 1,861 Cash and cash equivalents 10,057 9,209 8,572 Short-term investments 2,718 2,060 439 Gross investment income 427,994 383,544 337,034 Investment expenses (27,189 ) (30,209 ) (31,698 ) Net investment income $ 400,805 $ 353,335 $ 305,336 |
NET REALIZED INVESTMENT GAINS (LOSSES) | The following table provides an analysis of net realized investment gains (losses): Year ended December 31, 2017 2016 2015 Gross realized gains Fixed maturities and short-term investments $ 72,046 $ 86,267 $ 60,102 Equities 78,343 19,104 19,113 Gross realized gains 150,389 105,371 79,215 Gross realized losses Fixed maturities and short-term investments (98,442 ) (134,460 ) (143,702 ) Equities (959 ) (16,155 ) (8,543 ) Gross realized losses (99,401 ) (150,615 ) (152,245 ) Net OTTI recognized in net income (14,493 ) (26,210 ) (72,720 ) Change in fair value of investment derivatives (1) (8,269 ) 10,929 7,259 Net realized investment gains (losses) $ 28,226 $ (60,525 ) $ (138,491 ) (1) Refer to Note 8 'Derivative Instruments' |
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS | The following table summarizes the OTTI recognized in net income by asset class: Year ended December 31, 2017 2016 2015 Fixed maturities: Non-U.S. government $ 8,187 $ 3,557 $ 3,538 Corporate debt 6,306 20,093 47,029 Non-Agency RMBS — — 111 ABS — — 124 14,493 23,650 50,802 Equity Securities Exchange-traded funds — 2,560 10,732 Bond mutual funds — — 11,186 — 2,560 21,918 Total OTTI recognized in net income $ 14,493 $ 26,210 $ 72,720 |
ROLL FORWARD OF CREDIT LOSSES FOR WHICH A PORTION OF OTTI RECOGNIZED IN AOCI | The following table provides a roll forward of credit losses ("credit loss table"), before income taxes, for which a portion of the OTTI charge was recognized in AOCI: Year ended December 31, 2017 2016 Balance at beginning of period $ 1,493 $ 1,506 Credit impairments recognized on securities not previously impaired — — Additional credit impairments recognized on securities previously impaired 13 20 Change in timing of future cash flows on securities previously impaired — — Intent to sell of securities previously impaired — — Securities sold/redeemed/matured (12 ) (33 ) Balance at end of period $ 1,494 $ 1,493 |
RESTRICTED INVESTMENTS | The fair value of the Company's restricted investments and cash primarily relates to these items, as noted in the table below. At December 31, 2017 2016 Collateral in Trust for inter-company agreements $ 3,310,180 $ 2,877,823 Collateral for secured letter of credit facility 386,451 448,366 Funds at Lloyd's 1,192,717 382,611 Collateral in Trust for third party agreements 2,085,443 508,262 Securities on deposit with regulatory authorities 53,925 50,290 Total restricted investments $ 7,028,716 $ 4,267,352 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 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 Significant Other Observable Significant Unobservable Inputs (Level 3) Fair value based on NAV practical expedient Total Fair Value At December 31, 2017 Assets Fixed maturities U.S. government and agency $ 1,658,622 $ 53,847 $ — $ — $ 1,712,469 Non-U.S. government — 806,299 — — 806,299 Corporate debt — 5,244,969 52,897 — 5,297,866 Agency RMBS — 2,395,152 — — 2,395,152 CMBS — 777,728 — — 777,728 Non-Agency RMBS — 46,831 — — 46,831 ABS — 1,436,281 — — 1,436,281 Municipals — 149,380 — — 149,380 1,658,622 10,910,487 52,897 — 12,622,006 Equity securities Common stocks 25,658 — — — 25,658 Exchange-traded funds 427,633 — — — 427,633 Bond mutual funds — 182,220 — — 182,220 453,291 182,220 — — 635,511 Other investments Hedge funds (1) — — — 363,811 363,811 Direct lending funds — — — 250,681 250,681 Private equity funds — — — 68,812 68,812 Real estate funds — — — 50,009 50,009 Other privately held investments — — 46,430 — 46,430 CLO-Equities — — 31,413 — 31,413 Overseas deposits — 198,217 — — 198,217 — 198,217 77,843 733,313 1,009,373 Short-term investments — 83,661 — — 83,661 Other assets Derivative instruments (see Note 8) — 5,125 — — 5,125 Insurance-linked securities — — 25,090 — 25,090 Total Assets $ 2,111,913 $ 11,379,710 $ 155,830 $ 733,313 $ 14,380,766 Liabilities Derivative instruments (see Note 8) $ — $ 2,876 $ 11,510 $ — $ 14,386 Cash settled awards (see Note 16) — 21,535 — — 21,535 Total Liabilities $ — $ 24,411 $ 11,510 $ — $ 35,921 (1) Includes Long/short equity, Multi-strategy and Event-driven funds. Quoted Prices in Active Markets Significant Other Observable 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 (1) — — — 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 Overseas deposits — — — — — — — 102,842 727,377 830,219 Short-term investments — 127,461 — — 127,461 Other assets Derivative instruments (see Note 8) — 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 8) $ — $ 9,076 $ 6,500 $ — $ 15,576 Cash settled awards (see Note 16) — 48,432 — — 48,432 Total Liabilities $ — $ 57,508 $ 6,500 $ — $ 64,008 (1) Includes Long/short equity, Multi-strategy and Event-driven funds. |
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS | Except certain fixed maturities and insurance-linked securities which are priced using broker-dealer quotes (underlying inputs are not available), the following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 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 $ 29,604 Discounted cash flow Default rates 3.8% 3.8% Loss severity rate 35% 35% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years $ 1,809 Liquidation value Fair value of collateral 100% 100% Discount margin 0.1% - 16.6% 2.8% Other investments - Other privately held investments $ 46,430 Discounted cash flow Discount rate 6.0% - 8.5% 7.5% Derivatives - Other underwriting-related derivatives $ (11,510 ) Discounted cash flow Discount rate 2.4% 2.4% |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, ASSETS | The following table presents 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 net income (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/loss (3) Year ended December 31, 2017 Fixed maturities Corporate debt $ 75,875 $ 2,324 $ (2,721 ) $ (503 ) $ (1,524 ) $ 17,062 $ (22,903 ) $ (14,713 ) $ 52,897 $ — CMBS 3,061 — — — — — — (3,061 ) — — ABS 17,464 — (18,949 ) — 1,485 — — — — — 96,400 2,324 (21,670 ) (503 ) (39 ) 17,062 (22,903 ) (17,774 ) 52,897 — Other investments Other privately held investments 42,142 — — 1,584 — 2,704 — — 46,430 1,584 CLO-Equities 60,700 — — 2,558 — — — (31,845 ) 31,413 2,558 102,842 — — 4,142 — 2,704 — (31,845 ) 77,843 4,142 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — 67 — — — — 25,090 67 27,555 — — 720 — — — (3,185 ) 25,090 67 Total assets $ 226,797 $ 2,324 $ (21,670 ) $ 4,359 $ (39 ) $ 19,766 $ (22,903 ) $ (52,804 ) $ 155,830 $ 4,209 Other liabilities Derivative instruments 6,500 — — 9,320 — 12,472 — (16,782 ) 11,510 (962 ) Total liabilities $ 6,500 $ — $ — $ 9,320 $ — $ 12,472 $ — $ (16,782 ) $ 11,510 $ (962 ) Year ended December 31, 2016 Fixed maturities Corporate debt $ 38,518 $ 5,733 $ (4,955 ) $ (1,037 ) $ 1,296 $ 48,298 $ (4,371 ) $ (7,607 ) $ 75,875 $ — CMBS 10,922 — (2,516 ) — (192 ) — — (5,153 ) 3,061 — ABS — — — — (917 ) 18,381 — — 17,464 — 49,440 5,733 (7,471 ) (1,037 ) 187 66,679 (4,371 ) (12,760 ) 96,400 — Other investments Other privately held investments — — — (2,263 ) — 44,405 — — 42,142 (2,263 ) CLO-Equities 27,257 36,378 — 18,976 — — — (21,911 ) 60,700 18,976 27,257 36,378 — 16,713 — 44,405 — (21,911 ) 102,842 16,713 Other assets Derivative instruments 4,395 — — 6,772 — 1,289 — (9,924 ) 2,532 1,200 Insurance-linked securities 24,925 — — 98 — — — — 25,023 98 29,320 — — 6,870 — 1,289 — (9,924 ) 27,555 1,298 Total assets $ 106,017 $ 42,111 $ (7,471 ) $ 22,546 $ 187 $ 112,373 $ (4,371 ) $ (44,595 ) $ 226,797 $ 18,011 Other liabilities Derivative instruments 10,937 — — 1,862 — 2,723 — (9,022 ) 6,500 (654 ) Total liabilities $ 10,937 $ — $ — $ 1,862 $ — $ 2,723 $ — $ (9,022 ) $ 6,500 $ (654 ) (1) Gains and losses included in net income on fixed maturities are included in net realized investment gains (losses). Gains and (losses) included in net income on other investments are included in net investment income. Gains (losses) on weather derivatives and other underwriting-related derivatives included in net income 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 table presents 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 net income (1) Included in OCI (2) Purchases Sales Settlements/ Distributions Closing Balance Change in unrealized investment gain/loss (3) Year ended December 31, 2017 Fixed maturities Corporate debt $ 75,875 $ 2,324 $ (2,721 ) $ (503 ) $ (1,524 ) $ 17,062 $ (22,903 ) $ (14,713 ) $ 52,897 $ — CMBS 3,061 — — — — — — (3,061 ) — — ABS 17,464 — (18,949 ) — 1,485 — — — — — 96,400 2,324 (21,670 ) (503 ) (39 ) 17,062 (22,903 ) (17,774 ) 52,897 — Other investments Other privately held investments 42,142 — — 1,584 — 2,704 — — 46,430 1,584 CLO-Equities 60,700 — — 2,558 — — — (31,845 ) 31,413 2,558 102,842 — — 4,142 — 2,704 — (31,845 ) 77,843 4,142 Other assets Derivative instruments 2,532 — — 653 — — — (3,185 ) — — Insurance-linked securities 25,023 — — 67 — — — — 25,090 67 27,555 — — 720 — — — (3,185 ) 25,090 67 Total assets $ 226,797 $ 2,324 $ (21,670 ) $ 4,359 $ (39 ) $ 19,766 $ (22,903 ) $ (52,804 ) $ 155,830 $ 4,209 Other liabilities Derivative instruments 6,500 — — 9,320 — 12,472 — (16,782 ) 11,510 (962 ) Total liabilities $ 6,500 $ — $ — $ 9,320 $ — $ 12,472 $ — $ (16,782 ) $ 11,510 $ (962 ) Year ended December 31, 2016 Fixed maturities Corporate debt $ 38,518 $ 5,733 $ (4,955 ) $ (1,037 ) $ 1,296 $ 48,298 $ (4,371 ) $ (7,607 ) $ 75,875 $ — CMBS 10,922 — (2,516 ) — (192 ) — — (5,153 ) 3,061 — ABS — — — — (917 ) 18,381 — — 17,464 — 49,440 5,733 (7,471 ) (1,037 ) 187 66,679 (4,371 ) (12,760 ) 96,400 — Other investments Other privately held investments — — — (2,263 ) — 44,405 — — 42,142 (2,263 ) CLO-Equities 27,257 36,378 — 18,976 — — — (21,911 ) 60,700 18,976 27,257 36,378 — 16,713 — 44,405 — (21,911 ) 102,842 16,713 Other assets Derivative instruments 4,395 — — 6,772 — 1,289 — (9,924 ) 2,532 1,200 Insurance-linked securities 24,925 — — 98 — — — — 25,023 98 29,320 — — 6,870 — 1,289 — (9,924 ) 27,555 1,298 Total assets $ 106,017 $ 42,111 $ (7,471 ) $ 22,546 $ 187 $ 112,373 $ (4,371 ) $ (44,595 ) $ 226,797 $ 18,011 Other liabilities Derivative instruments 10,937 — — 1,862 — 2,723 — (9,022 ) 6,500 (654 ) Total liabilities $ 10,937 $ — $ — $ 1,862 $ — $ 2,723 $ — $ (9,022 ) $ 6,500 $ (654 ) (1) Gains and losses included in net income on fixed maturities are included in net realized investment gains (losses). Gains and (losses) included in net income on other investments are included in net investment income. Gains (losses) on weather derivatives and other underwriting-related derivatives included in net income are included in other insurance-related income. (2) Gains and losses included in other comprehensive income ("OCI") on fixed maturities are included in unrealized gains (losses) arising during the period. (3) Change in unrealized investment gain (loss) relating to assets held at the reporting date. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
LOCATION AND AMOUNTS OF DERIVATIVE FAIR VALUES ON THE CONSOLIDATED BALANCE SHEET | The balance sheet classification of derivatives recorded at fair value is shown in the following table. 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 the Company's derivative activities. Notional amounts are not reflective of credit risk. None of the Company's derivative instruments are designated as hedges under current accounting guidance. At December 31, 2017 At December 31, 2016 Derivative Notional Amount Asset Derivative Fair Value (1) Liability Derivative Fair Value (1) Derivative Notional Amount Asset Derivative Fair Value (1) Liability Derivative Fair Value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 137,422 $ 10 $ 619 $ 195,979 $ 12,331 $ 87 Interest rate swaps 191,000 448 1,556 — — — Relating to underwriting portfolio: Foreign exchange forward contracts 698,959 4,667 701 492,899 2,034 8,989 Weather-related contracts — — — 67,957 2,532 6,500 Commodity contracts — — — — — — Other underwriting-related contracts 85,000 — 11,510 — — — Total derivatives $ 5,125 $ 14,386 $ 16,897 $ 15,576 (1) Asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. |
RECONCILIATION OF GROSS DERIVATIVE ASSETS TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | A reconciliation of 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, is shown in the following table. December 31, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 8,178 $ (3,053 ) $ 5,125 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,439 $ (3,053 ) $ 14,386 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities on the Consolidated Balance Sheets. |
RECONCILIATION OF GROSS DERIVATIVE LIABILITIES TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | A reconciliation of 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, is shown in the following table. December 31, 2017 December 31, 2016 Gross Amounts Gross Amounts Offset Net Amounts (1) Gross Amounts Gross Amounts Offset Net Amounts (1) Derivative assets $ 8,178 $ (3,053 ) $ 5,125 $ 22,270 $ (5,373 ) $ 16,897 Derivative liabilities $ 17,439 $ (3,053 ) $ 14,386 $ 20,949 $ (5,373 ) $ 15,576 (1) Net asset and liability derivatives are classified within other assets and other liabilities on 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 net income for derivatives not designated as hedges are shown in the following table: Location of Gain (Loss) Recognized in Income on Derivative Amount of Gain (Loss) Recognized in Income on Derivative 2017 2016 2015 Relating to investment portfolio: Foreign exchange forward contracts Net realized investment gains (losses) $ (6,935 ) $ 10,929 $ 11,265 Interest rate swaps Net realized investment gains (losses) (1,334 ) — (4,006 ) Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 25,383 (8,179 ) (25,412 ) Weather-related contracts Other insurance related income (loss) (9,629 ) 4,910 (3,005 ) Commodity contracts Other insurance related income (loss) — (2,382 ) (1,814 ) Other underwriting-related contracts Other insurance related income (loss) 1,476 — — Total $ 8,961 $ 5,278 $ (22,972 ) |
RESERVE FOR LOSSES AND LOSS E43
RESERVE FOR LOSSES AND LOSS EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Insurance Loss Reserves [Abstract] | |
SCHEDULE OF THE LINES OF BUSINESS CATEGORIES AND THE EXPECTED CLAIM TAILS | The following tables reconcile reserve classes to the lines of business categories and the expected claim tails: Insurance Segment Reported Lines of Business Reserve Classes Tail Property Marine Terrorism Aviation Credit and Political Risk Professional Lines Liability Accident and Health Discontinued lines - Novae Property and Other Short X X X X Marine Short X Aviation Short X Credit and Political Risk Medium X Professional Lines Medium X X Liability Long X X Reinsurance Segment Reported Lines of Business Reserve Classes Tail Catastrophe Property Credit and Surety Professional Lines Motor Liability Engineering Agriculture Marine and Other Discontinued lines - Novae Property and Other Short X X X X X X Credit and Surety Medium X Professional Lines Medium X Motor Long X X Liability Long X X |
COMPONENTS OF RESERVE FOR LOSSES AND LOSS EXPENSES | Gross reserve for losses and loss expenses comprise the following: As of December 31, 2017 2016 Reserve for reported losses and loss expenses $ 5,137,659 $ 3,358,514 Reserve for losses incurred but not reported 7,859,894 6,339,313 Reserve for losses and loss expenses $ 12,997,553 $ 9,697,827 |
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 beginning and ending gross reserve for losses and loss expenses and net reserve for unpaid losses and loss expenses for the years indicated: Year ended December 31, 2017 2016 2015 Gross reserve for losses and loss expenses, beginning of year $ 9,697,827 $ 9,646,285 $ 9,596,797 Less reinsurance recoverable on unpaid losses, beginning of year (2,276,109 ) (2,031,309 ) (1,890,280 ) Net reserve for unpaid losses and loss expenses, beginning of year 7,421,718 7,614,976 7,706,517 Net incurred losses and loss expenses related to: Current year 3,487,826 2,496,574 2,419,247 Prior years (200,054 ) (292,377 ) (243,048 ) 3,287,772 2,204,197 2,176,199 Net paid losses and loss expenses related to: Current year (703,796 ) (428,153 ) (343,063 ) Prior years (1,880,882 ) (1,763,696 ) (1,709,659 ) (2,584,678 ) (2,191,849 ) (2,052,722 ) Foreign exchange and other 1,713,227 (205,606 ) (215,018 ) Net reserve for unpaid losses and loss expenses, end of year 9,838,039 7,421,718 7,614,976 Reinsurance recoverable on unpaid losses, end of year 3,159,514 2,276,109 2,031,309 Gross reserve for losses and loss expenses, end of year $ 12,997,553 $ 9,697,827 $ 9,646,285 |
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT | Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. Such development is summarized by segment in the following table: Insurance Reinsurance Total Year ended December 31, 2017 $ 48,969 $ 151,085 $ 200,054 Year ended December 31, 2016 55,905 236,472 292,377 Year ended December 31, 2015 23,447 219,601 243,048 |
NET INCURRED AND PAID CLAIMS DEVELOPMENT TABLES BY ACCIDENT YEAR | Reinsurance Property and Other Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 677,556 $ 577,309 $ 593,015 $ 571,142 $ 557,060 $ 546,034 $ 529,918 $ 524,422 $ 523,154 $ 523,591 $ (224 ) 2009 344,543 288,510 250,630 237,339 230,351 209,335 203,261 205,145 202,300 1,018 2010 619,241 610,563 580,601 594,238 597,427 591,331 583,563 581,616 4,587 2011 1,092,977 1,105,962 1,105,415 1,064,864 1,047,944 1,022,452 1,020,771 8,207 2012 488,776 456,173 445,932 415,327 399,193 394,332 6,544 2013 475,162 452,433 422,160 403,217 397,673 4,083 2014 441,147 461,961 448,887 438,815 45,519 2015 386,614 368,320 369,734 27,033 2016 452,342 452,169 96,090 2017 870,456 488,104 Total $ 5,251,457 Reinsurance Property and Other Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 158,206 $ 316,280 $ 444,047 $ 497,078 $ 510,305 $ 514,696 $ 514,765 $ 519,711 $ 519,391 $ 517,657 2009 57,796 132,309 164,047 182,556 193,309 192,746 195,614 197,310 193,973 2010 119,385 318,198 412,731 444,822 491,817 521,377 546,253 551,588 2011 242,494 561,377 769,142 872,086 902,188 976,120 991,307 2012 93,847 231,961 305,020 327,361 341,925 351,558 2013 55,047 223,666 336,940 365,089 374,944 2014 65,848 274,886 351,496 369,000 2015 48,116 190,057 282,967 2016 78,916 231,682 2017 172,937 Total 4,037,613 All outstanding liabilities before 2008, net of reinsurance 6,225 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,220,069 Reinsurance Credit and Surety Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 87,400 $ 116,362 $ 107,787 $ 105,765 $ 106,950 $ 105,698 $ 101,903 $ 100,674 $ 100,277 $ 98,714 $ 1,231 2009 147,192 125,656 109,211 108,442 108,149 102,079 98,845 98,469 96,783 1,874 2010 121,893 103,332 96,821 93,648 89,657 82,003 80,680 78,645 5,222 2011 124,030 112,031 110,294 117,586 115,523 106,804 104,997 7,464 2012 163,535 152,873 155,634 152,678 144,084 135,845 11,848 2013 168,361 157,311 148,080 144,095 139,679 17,857 2014 138,056 139,449 146,647 142,909 27,627 2015 163,467 170,980 165,822 36,473 2016 144,583 144,741 50,815 2017 135,562 74,667 Total $ 1,243,697 Reinsurance Credit and Surety Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 20,891 $ 70,349 $ 71,501 $ 86,796 $ 88,604 $ 91,014 $ 93,282 $ 94,040 $ 94,446 $ 94,601 2009 32,888 78,254 80,744 83,138 87,079 89,736 89,921 89,894 89,986 2010 28,387 50,148 61,983 62,586 64,455 65,722 67,252 68,294 2011 22,640 56,106 74,037 82,015 86,653 88,944 91,307 2012 50,516 88,092 102,976 108,858 112,423 114,251 2013 32,708 78,976 94,347 101,104 108,839 2014 35,839 62,900 88,668 97,957 2015 33,064 84,077 103,123 2016 42,348 75,170 2017 34,758 Total 878,286 All outstanding liabilities before 2008, net of reinsurance 10,351 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 375,762 Novae Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 Accident Year Net claim and allocated claim adjustment expense reserves at the Acquisition Date Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 Total acquired net claim and allocated claim adjustment expense reserves and net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims 2008 $ 20,515 $ — $ 20,515 $ 3,552 2009 25,486 — 25,486 714 2010 23,308 — 23,308 2,781 2011 59,648 — 59,648 11,204 2012 87,292 — 87,292 8,695 2013 76,786 — 76,786 12,504 2014 123,955 — 123,955 17,024 2015 184,606 — 184,606 36,619 2016 307,014 — 307,014 54,356 2017 293,520 135,493 429,013 222,330 $ 1,202,130 $ 135,493 $ 1,337,624 Novae Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance From the Acquisition Date to December 31, 2017 Accident Year 2008 $ 1,458 2009 1,147 2010 3,197 2011 4,332 2012 7,352 2013 5,878 2014 12,370 2015 19,349 2016 51,065 2017 33,278 Total 139,427 All outstanding liabilities before 2008, net of reinsurance 102,164 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,300,361 Reinsurance Professional Lines Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 176,166 $ 183,064 $ 182,587 $ 178,530 $ 176,767 $ 173,316 $ 174,286 $ 173,217 $ 172,937 $ 169,515 $ 6,938 2009 212,285 212,046 216,737 219,447 210,084 209,625 194,753 190,811 181,665 11,657 2010 211,273 211,397 212,359 215,298 215,043 197,548 189,880 180,219 24,929 2011 202,504 202,676 203,706 212,439 209,837 208,973 201,077 51,009 2012 210,612 217,184 222,600 224,737 223,492 213,601 75,647 2013 210,196 215,425 216,528 214,855 214,477 101,607 2014 219,927 219,966 219,960 219,968 85,643 2015 212,536 212,852 215,178 124,029 2016 195,527 196,852 140,194 2017 155,882 144,098 Total $ 1,948,434 Reinsurance Professional Lines Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 373 $ 6,465 $ 21,736 $ 49,393 $ 70,815 $ 92,320 $ 109,093 $ 124,658 $ 133,596 $ 139,917 2009 914 8,589 32,327 63,180 83,946 108,787 128,608 138,823 143,634 2010 1,759 12,037 31,269 52,187 76,931 107,534 124,158 130,837 2011 1,506 11,829 30,326 57,402 85,052 103,309 120,076 2012 780 10,441 29,730 53,801 86,211 107,581 2013 1,068 12,121 30,666 65,195 81,940 2014 2,020 13,085 48,930 74,748 2015 3,134 13,507 41,610 2016 1,782 20,624 2017 2,815 Total 863,782 All outstanding liabilities before 2008, net of reinsurance 34,882 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,119,534 Reinsurance Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 140,069 $ 140,460 $ 141,152 $ 141,553 $ 139,564 $ 133,917 $ 111,873 $ 106,942 $ 95,649 $ 86,008 $ 10,016 2009 175,100 176,187 182,970 180,596 188,090 208,301 195,679 181,488 171,979 23,215 2010 173,358 172,261 183,773 184,180 202,649 192,051 182,794 166,533 29,101 2011 174,125 173,815 175,279 193,228 200,190 196,948 196,277 34,097 2012 168,641 164,742 168,956 173,596 174,765 172,124 43,129 2013 173,966 177,606 183,683 185,689 185,321 71,652 2014 201,355 204,323 206,100 202,130 91,483 2015 216,076 216,518 217,480 125,377 2016 241,952 247,768 171,869 2017 266,945 226,036 Total $ 1,912,565 Reinsurance Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 2,160 $ 9,952 $ 21,953 $ 30,028 $ 36,567 $ 43,509 $ 51,922 $ 53,882 $ 58,022 $ 63,903 2009 1,705 17,104 44,552 56,730 73,521 105,410 125,329 129,644 135,031 2010 2,484 17,659 46,207 62,300 83,976 97,617 108,938 119,872 2011 5,191 21,297 40,021 70,283 92,696 112,581 123,719 2012 3,542 12,809 28,418 58,855 78,368 101,343 2013 5,978 22,259 52,360 69,098 88,327 2014 7,117 28,699 48,498 70,389 2015 7,273 27,473 54,646 2016 11,891 37,819 2017 12,073 Total 807,122 All outstanding liabilities before 2008, net of reinsurance 42,182 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,147,625 Insurance Professional Lines Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 238,550 $ 278,691 $ 280,842 $ 298,905 $ 296,499 $ 309,642 $ 329,458 $ 327,240 $ 326,192 $ 325,573 $ 9,175 4,558 2009 240,818 244,150 244,751 245,319 256,295 238,902 239,428 215,732 223,737 13,584 5,882 2010 231,232 236,578 234,334 205,801 182,713 158,946 181,232 168,632 26,396 5,669 2011 313,858 315,654 333,321 326,255 330,562 343,782 352,406 50,239 7,211 2012 329,769 375,557 377,277 376,604 364,423 366,725 70,219 8,279 2013 384,755 397,852 398,578 365,818 355,777 95,220 9,371 2014 411,690 412,288 423,087 394,470 157,747 9,650 2015 377,652 377,725 383,959 186,383 9,862 2016 349,268 352,414 220,770 10,728 2017 346,582 302,135 9,984 Total $ 3,270,275 Insurance Professional Lines Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 4,068 $ 22,325 $ 68,197 $ 124,681 $ 167,828 $ 189,339 $ 214,481 $ 249,321 $ 267,611 $ 268,487 2009 1,689 20,670 44,312 69,050 97,061 107,421 127,033 167,129 179,770 2010 7,857 27,880 53,738 72,840 89,051 99,554 110,156 115,204 2011 6,782 32,351 74,224 108,470 165,755 238,523 283,718 2012 7,824 41,545 100,526 185,059 231,963 255,140 2013 17,739 73,334 130,342 176,899 214,534 2014 23,665 71,510 131,610 194,294 2015 20,403 68,400 138,967 2016 16,010 71,619 2017 19,524 Total 1,741,257 All outstanding liabilities before 2008, net of reinsurance 30,546 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,559,564 Insurance Property and Other Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 312,164 $ 260,206 $ 251,722 $ 242,139 $ 226,472 $ 225,007 $ 220,616 $ 218,851 $ 217,846 $ 216,806 $ 982 1,573 2009 117,662 99,367 89,993 82,683 80,718 78,501 78,720 78,368 78,623 971 1,483 2010 175,554 155,343 147,881 122,472 116,888 116,020 115,740 115,289 687 2,310 2011 380,921 356,524 333,911 313,281 310,404 309,197 309,638 2,836 3,737 2012 461,790 472,088 448,763 428,524 424,475 418,869 9,739 27,701 2013 419,392 414,394 387,093 381,550 380,800 6,117 51,238 2014 463,732 459,996 436,130 417,691 6,539 60,151 2015 373,256 373,071 355,883 12,284 43,790 2016 523,086 574,267 40,961 66,488 2017 939,565 333,630 237,332 Total $ 3,807,431 Insurance Property and Other Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 76,558 $ 150,470 $ 172,320 $ 184,038 $ 211,002 $ 213,569 $ 215,628 $ 215,121 $ 215,071 $ 214,663 2009 31,379 60,166 68,768 72,622 73,538 74,636 76,865 77,187 77,466 2010 48,624 87,059 95,747 106,593 110,785 110,934 110,709 110,763 2011 87,525 217,578 277,260 299,567 298,766 298,559 299,248 2012 107,358 278,870 343,503 366,854 374,485 379,696 2013 129,157 304,207 347,531 361,209 372,338 2014 169,961 341,023 393,868 401,482 2015 123,126 281,377 317,850 2016 174,455 442,007 2017 314,839 Total 2,930,352 All outstanding liabilities before 2008, net of reinsurance 3,875 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 880,954 Insurance Aviation Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 14,485 $ 12,021 $ 8,516 $ 8,354 $ 8,256 $ 7,108 $ 5,937 $ 5,851 $ 5,996 $ 5,905 $ 42 187 2009 17,505 14,608 18,800 18,146 16,974 16,674 15,494 14,661 14,388 68 317 2010 12,939 11,729 11,460 9,791 8,807 8,739 8,784 8,574 131 521 2011 17,725 15,400 12,791 9,568 8,437 7,290 7,257 218 734 2012 12,788 10,681 10,807 8,724 7,775 7,730 320 874 2013 15,656 16,344 15,221 15,264 15,579 542 1,027 2014 20,437 23,046 24,368 21,859 982 1,324 2015 29,772 28,512 29,965 2,646 1,917 2016 29,178 33,641 5,145 1,692 2017 24,752 12,737 1,177 Total $ 169,650 Insurance Aviation Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 488 $ 2,063 $ 3,084 $ 3,666 $ 4,216 $ 4,487 $ 4,663 $ 5,269 $ 5,526 $ 5,519 2009 2,118 3,628 7,071 12,834 13,957 14,322 14,258 13,755 13,547 2010 1,053 4,156 6,341 6,920 7,586 7,708 8,152 8,247 2011 639 2,830 4,521 5,040 5,576 5,826 6,056 2012 957 2,868 4,159 5,958 6,836 7,070 2013 4,402 7,336 9,757 11,462 13,551 2014 3,989 8,033 11,706 13,914 2015 8,090 16,177 21,095 2016 10,421 19,403 2017 6,459 Total 114,861 All outstanding liabilities before 2008, net of reinsurance 1,611 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 56,400 Insurance Credit and Political Risk Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 52,993 $ 63,552 $ 48,715 $ 45,554 $ 45,551 $ 45,551 $ 45,600 $ 45,200 $ 44,410 $ 44,408 $ — 9 2009 248,084 305,292 326,037 335,558 335,435 335,295 335,315 339,595 339,558 2,040 24 2010 62,415 63,179 63,259 65,598 64,981 65,015 72,105 90,885 13,200 6 2011 58,154 48,665 47,706 48,361 48,333 45,036 33,604 5,973 4 2012 32,602 15,672 12,435 12,447 10,322 47 5 4 2013 26,439 25,684 9,759 9,880 14,941 6,662 1 2014 38,825 70,713 67,109 68,321 10,466 6 2015 30,329 30,368 27,513 4,215 2 2016 47,250 43,983 20,194 1 2017 21,237 17,958 2 Total $ 684,497 Insurance Credit and Political Risk Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ — $ 69,217 $ 45,625 $ 45,638 $ 45,379 $ 45,379 $ 44,410 $ 44,410 $ 44,410 $ 44,161 2009 92,844 344,658 346,267 346,243 341,600 345,545 345,545 345,592 340,809 2010 50,000 85,418 90,729 106,769 101,790 101,952 102,158 102,200 2011 32,788 37,205 27,636 27,636 27,636 27,636 27,631 2012 — — — — 40 42 2013 745 2,235 3,726 5,216 11,768 2014 1,924 39,952 61,108 57,855 2015 — 23,309 23,298 2016 — 23,789 2017 — Total 631,553 All outstanding liabilities before 2008, net of reinsurance (1,475 ) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 51,469 Aviabel Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 Accident Year Net claim and allocated claim adjustment expense reserves at the Acquisition Date Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 Total acquired net claim and allocated claim adjustment expense reserves and net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims 2008 $ 998 $ (293 ) $ 705 $ 30 1,066 2009 842 82 924 25 1,347 2010 1,516 (39 ) 1,477 46 1,452 2011 1,418 (423 ) 995 43 1,420 2012 5,248 (1,066 ) 4,183 177 1,380 2013 5,702 956 6,658 200 1,286 2014 10,589 (1,636 ) 8,953 804 1,373 2015 15,004 (1,575 ) 13,429 1,650 1,475 2016 19,388 2,134 21,522 4,278 1,535 2017 7,666 27,096 34,762 7,180 1,114 $ 68,371 $ 25,237 $ 93,608 Aviabel Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance From the Acquisition Date to December 31, 2017 Accident Year 2008 $ (33 ) 2009 1 2010 97 2011 20 2012 661 2013 425 2014 1,944 2015 3,291 2016 5,453 2017 14,970 Total 26,830 All outstanding liabilities before 2008, net of reinsurance 10,626 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 77,405 Reinsurance Motor Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 74,058 $ 78,924 $ 78,193 $ 80,897 $ 77,937 $ 77,027 $ 72,330 $ 65,983 $ 61,702 $ 62,557 $ 20,916 2009 85,779 83,784 91,915 93,917 96,069 97,089 87,995 82,093 84,458 21,053 2010 103,990 112,528 113,304 112,285 106,058 100,707 90,839 87,253 24,419 2011 160,444 164,579 168,734 175,021 171,007 161,958 150,818 33,732 2012 186,033 176,870 164,734 156,957 151,820 141,923 25,982 2013 169,876 168,554 156,692 146,799 143,186 26,041 2014 190,363 193,691 188,725 185,570 24,003 2015 231,614 229,110 233,172 37,198 2016 255,354 276,126 55,173 2017 348,068 170,065 Total $ 1,713,131 Reinsurance Motor Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 3,093 $ 6,371 $ 6,625 $ 7,910 $ 9,491 $ 12,088 $ 14,897 $ 15,570 $ 17,231 $ 17,657 2009 2,819 7,134 8,428 10,020 13,627 20,029 22,446 27,248 30,378 2010 7,406 13,316 19,189 22,873 26,489 30,942 34,342 35,444 2011 21,274 46,277 61,691 72,663 79,729 85,995 90,871 2012 29,727 55,282 70,634 80,891 87,658 91,896 2013 34,607 56,009 70,849 81,419 87,407 2014 44,225 77,736 98,483 107,090 2015 58,884 97,495 118,902 2016 61,938 109,559 2017 71,052 Total 760,256 All outstanding liabilities before 2008, net of reinsurance 129,548 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,082,423 Insurance Marine Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 99,618 $ 106,731 $ 101,872 $ 100,793 $ 93,587 $ 87,201 $ 83,432 $ 83,051 $ 82,789 $ 82,848 $ 381 516 2009 80,665 74,298 69,932 64,601 57,213 55,027 53,622 52,523 52,428 528 477 2010 68,603 70,685 66,639 53,574 51,663 48,823 47,397 45,785 735 472 2011 90,659 78,611 72,463 65,697 65,707 65,919 68,008 1,549 603 2012 89,703 82,729 68,842 70,942 71,917 74,541 12,824 700 2013 80,034 101,276 96,722 97,777 83,064 4,121 733 2014 59,665 44,562 48,471 44,439 7,167 799 2015 158,697 139,931 136,608 16,023 915 2016 86,324 78,864 19,460 1,372 2017 74,639 48,739 1,772 Total $ 741,224 Insurance Marine Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 14,357 $ 52,697 $ 69,114 $ 77,203 $ 78,313 $ 82,043 $ 82,128 $ 82,259 $ 82,339 $ 82,344 2009 17,431 30,364 39,699 43,243 45,286 45,896 48,430 48,712 49,060 2010 18,062 28,771 33,392 42,554 45,373 46,150 47,088 43,587 2011 26,417 44,168 54,874 57,972 59,816 60,523 64,750 2012 10,730 38,560 44,858 49,631 50,448 52,833 2013 19,313 44,437 55,414 63,637 66,326 2014 6,363 15,277 26,831 26,977 2015 21,467 54,845 108,071 2016 12,497 32,038 2017 10,061 Total 536,047 All outstanding liabilities before 2008, net of reinsurance 8,213 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 213,390 Insurance Liability Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance At December 31, 2017 For the Years Ended December 31, Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims Cumulative Number of Reported Claims Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 82,969 $ 79,836 $ 80,947 $ 81,785 $ 82,225 $ 81,949 $ 101,589 $ 102,444 $ 108,189 $ 94,165 $ 11,783 3,790 2009 61,469 64,017 67,410 67,869 76,431 83,282 101,180 98,384 98,999 10,895 2,777 2010 79,401 94,231 98,648 98,134 99,596 98,086 105,145 104,296 12,681 2,206 2011 72,584 75,329 83,118 87,060 85,243 83,731 82,128 19,227 1,788 2012 70,877 70,645 73,282 70,770 68,181 75,342 27,824 1,240 2013 92,153 94,182 94,258 87,502 93,221 24,296 1,562 2014 106,166 122,686 128,568 130,035 41,151 2,440 2015 127,321 126,047 136,615 61,944 3,317 2016 123,259 129,225 90,482 3,811 2017 141,644 129,373 2,519 Total $ 1,085,670 Insurance Liability Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Accident Year 2008 Unaudited 2009 Unaudited 2010 Unaudited 2011 Unaudited 2012 Unaudited 2013 Unaudited 2014 Unaudited 2015 Unaudited 2016 2017 2008 $ 1,906 $ 8,796 $ 18,507 $ 27,861 $ 37,408 $ 47,447 $ 51,776 $ 55,314 $ 61,618 $ 87,159 2009 726 4,646 13,305 26,754 31,865 41,323 44,105 83,991 84,427 2010 1,029 15,986 30,809 53,604 61,055 66,140 71,814 86,471 2011 2,761 10,540 20,190 38,377 46,074 54,996 60,263 2012 1,631 5,515 15,412 30,146 37,140 42,745 2013 2,363 23,285 33,324 42,055 60,021 2014 1,419 18,662 49,858 71,630 2015 5,439 22,474 39,767 2016 6,332 23,335 2017 4,243 Total 560,061 All outstanding liabilities before 2008, net of reinsurance 44,150 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 569,759 |
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE | Reinsurance Motor Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 16.8% 13.2% 7.6% 5.0% 4.1% 4.8% 3.6% 2.7% 3.2% 0.7% Reinsurance Credit and Surety Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 27.3% 32.2% 10.9% 6.0% 3.5% 2.0% 1.7% 0.7% 0.3% 0.2% Insurance Professional Lines Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 3.7% 10.9% 14.7% 14.5% 12.5% 8.9% 8.9% 10.5% 5.6% 0.3% Reinsurance Property and Other Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 20.6% 36.6% 20.8% 7.4% 4.2% 3.0% 1.8% 0.9% (0.9)% (0.3)% Reinsurance Liability Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2.9% 8.9% 13.0% 11.3% 10.6% 11.6% 8.5% 3.8% 4.0% 6.8% Insurance Aviation Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 18.7% 24.4% 19.4% 15.5% 9.5% 3.0% 2.8% 2.6% 1.5% (0.1)% Insurance Marine Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 22.6% 28.6% 18.8% 8.3% 3.1% 2.3% 3.3% (2.3)% 0.4% —% Reinsurance Professional Lines Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0.8% 5.3% 11.1% 13.9% 12.4% 12.5% 9.6% 6.2% 4.0% 3.7% Insurance Liability Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2.5% 11.3% 13.2% 16.2% 10.1% 8.7% 4.8% 19.4% 3.6% 27.1% Insurance Property and Other Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 34.4% 40.6% 12.2% 5.4% 3.6% 0.8% 0.9% 0.1% 0.2% (0.2)% Insurance Credit and Political Risk Average annual percentage payout of incurred claims by age, net of reinsurance Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 18.8% 54.1% (4.3)% 3.3% 20.3% 1.1% (0.5)% —% (0.7)% (0.6)% |
RECONCILIATION OF DEVELOPMENT TABLES TO CONSOLIDATED BALANCE SHEET | The following table reconciles the reserves for loss and loss expenses as of December 31, 2017 as reported in the Consolidated Balance Sheet to the reserves for loss and loss expenses included in the development tables: Reconciliation of the Disclosure of Incurred and Paid Claims Development to the Liability for Unpaid Claims and Claim Adjustment Expenses At December 31, 2017 Net outstanding liabilities Reinsurance recoverable on unpaid claims Gross outstanding liabilities Insurance Segment Property and Other $ 880,954 $ 181,101 $ 1,062,055 Marine 213,390 106,466 319,856 Aviation 56,400 8,945 65,345 Credit and Political Risk 51,469 1,384 52,853 Professional Lines 1,559,564 853,130 2,412,694 Liability 569,759 896,266 1,466,025 Total Insurance Segment 3,331,536 2,047,292 5,378,828 Reinsurance Segment Property and Other 1,220,069 214,394 1,434,463 Credit and Surety 375,762 13,061 388,823 Professional Lines 1,119,534 37,822 1,157,356 Motor 1,082,423 3,666 1,086,089 Liability 1,147,625 66,692 1,214,317 Total Reinsurance Segment 4,945,413 335,635 5,281,048 Aviabel 77,405 5,329 82,734 Novae 1,300,361 771,258 2,071,619 Total $ 9,654,715 $ 3,159,514 12,814,229 Unallocated claims adjustment expenses 170,168 Foreign exchange and other (1) (45,262 ) Assumed reserves related to retroactive transactions 58,418 Total liability for unpaid claims and claims adjustment expense $ 12,997,553 (1) Non-U.S. dollar denominated loss data is converted to U.S dollar at the rates of exchange in effect at the balance sheet date for material underlying currencies. Fluctuations in currency exchange rates cause material shifts in loss development. Reserves for losses and loss expenses, disclosed in the Consolidated Balance Sheets, are also revalued using the exchange rate at the balance sheet date. |
REINSURANCE (Tables)
REINSURANCE (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Reinsurance Disclosures [Abstract] | |
BREAKDOWN OF GROSS AND NET PREMIUMS WRITTEN AND EARNED | Gross and net premiums written and earned were as follows: Year ended December 31, 2017 2016 2015 Premiums written Premiums earned Premiums written Premiums earned Premiums written Premiums earned Gross $ 5,556,273 $ 5,616,234 $ 4,970,208 $ 4,762,394 $ 4,603,730 $ 4,567,953 Ceded (1,529,130 ) (1,467,474 ) (1,217,234 ) (1,056,769 ) (929,064 ) (881,536 ) Net $ 4,027,143 $ 4,148,760 $ 3,752,974 $ 3,705,625 $ 3,674,666 $ 3,686,417 |
DEBT AND FINANCING ARRANGEMEN45
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Scheduled debt maturity | The scheduled maturity of the Company's aggregate amount of its debt obligation on its consolidated balance sheet at December 31, 2017 is shown in the following table : Year ended December 31, 2018 $ — 2019 250,000 2020 500,000 2021 — 2022 — After 2022 636,060 Unamortized discount and debt issuance expenses (9,531 ) Total senior notes and notes payable $ 1,376,529 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
FUTURE MINIMUM LEASE PAYMENTS UNDER OPERATING LEASES | Future minimum lease payments are expected to be as follows: Year ended December 31, 2018 $ 27,777 2019 26,514 2020 22,661 2021 23,817 2022 22,745 Later years 84,606 Total future minimum lease payments $ 208,120 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 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: At and year ended December 31, 2017 2016 2015 Basic earnings (loss) per common share Net income (loss) $ (368,969 ) $ 513,368 $ 641,631 Less: Preferred share dividends 46,810 46,597 40,069 Less: Loss on repurchase of preferred shares — 1,309 — Net income (loss) available to common shareholders $ (415,779 ) $ 465,462 $ 601,562 Weighted average common shares outstanding - basic (1) 84,108 90,772 98,609 Basic earnings (loss) per common share $ (4.94 ) $ 5.13 $ 6.10 Diluted basic earnings (loss) per common share Net income (loss) available to common shareholders $ (415,779 ) $ 465,462 $ 601,562 Weighted average common shares outstanding - basic (1) 84,108 90,772 98,609 Share-based compensation plans (2) — 775 1,020 Weighted average common shares outstanding - diluted (1) 84,108 91,547 99,629 Diluted earnings (loss) per common share $ (4.94 ) $ 5.08 $ 6.04 Weighted average anti-dilutive shares excluded from the dilutive computation 702 170 165 (1) On August 17, 2015 , the Company entered into an Accelerated Share Repurchase ("ASR") agreement (see Note 14 'Shareholders' Equity' ). 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 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 year ended December 31, 2017, all the share equivalents were anti-dilutive. |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES ISSUED AND OUTSTANDING | The following table presents changes in common shares issued and outstanding, excluding restricted shares related to the Company's share-based compensation plans (see Note 16 ' Share-Based Compensation' ): Year ended December 31, 2017 2016 2015 Shares issued, balance at beginning of year 176,580 176,240 175,478 Shares issued — 340 762 Total shares issued at end of year 176,580 176,580 176,240 Treasury shares, balance at beginning of year (90,139 ) (80,174 ) (76,052 ) Shares repurchased (4,288 ) (10,508 ) (4,616 ) Shares reissued 1,008 543 494 Total treasury shares at end of year (93,419 ) (90,139 ) (80,174 ) Total shares outstanding 83,161 86,441 96,066 |
SHARE REPURCHASES | The following table presents common share repurchased, from shares held in treasury: Year ended December 31, 2017 2016 2015 In the open market: Total shares (1) 3,932 10,241 4,264 Total cost $ 261,180 $ 557,476 $ 246,490 Average price per share (2) $ 66.43 $ 54.44 $ 57.80 From employees: (3) Total shares 356 267 352 Total cost $ 24,678 $ 14,329 $ 18,048 Average price per share (2) $ 69.36 $ 53.74 $ 51.34 Total shares repurchased: Total shares 4,288 10,508 4,616 Total cost $ 285,858 $ 571,805 $ 264,538 Average price per share (2) $ 66.67 $ 54.42 $ 57.32 (1) Amounts in 2016 and 2015 include common shares acquired under the accelerated share repurchase program of 1,358,380 and 4,149,378 , respectively (see below for more detail). (2) Calculated using whole numbers. (3) Shares are repurchased from employees to satisfy withholding tax liabilities upon the vesting of restricted stock awards, restricted stock units, and the exercise of stock options. Share repurchases from employees are excluded from the authorized share repurchase plan noted above. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
RECONCILIATION OF BEGINNING AND ENDING BALANCE OF NONVESTED RESTRICTED STOCK (INCLUDING RSUS) TO BE SETTLED IN SHARES AND CASH | b) Cash Settled Awards The following table provides a summary of nonvested cash settled RSUs: Cash Settled PSUs Service-based Cash Settled RSUs Number of Restricted Stock Units Number of Restricted Stock Units Nonvested restricted stock units - December 31, 2015 70 1,433 Granted 18 497 Performance Adjustment 12 n/a Vested (32 ) (377 ) Forfeited — (161 ) Nonvested restricted stock units - December 31, 2016 68 1,392 Granted 15 432 Vested (1) (38 ) (763 ) Forfeited (3 ) (73 ) Nonvested restricted stock units - December 31, 2017 42 988 n/a – not applicable (1) Cash-settled restricted stock units that vested during the year ended December 31, 2017 included 307,556 service-based restricted stock units attributable to a grant made in 2014 which was subject to a three year cliff vesting period. a) Share Settled Awards The following table provides a summary of nonvested RSAs and share settled RSUs: Share Settled PSUs Share Settled - Service Based Restricted Stock Number of Restricted Stock Weighted Average Grant Date Fair Value (1) Number of Restricted Stock Weighted Average Grant Date Fair Value (1) Nonvested restricted stock - December 31, 2015 201 $ 49.24 1,954 $ 43.34 Granted 104 53.80 589 53.87 Performance Adjustment 26 45.95 n/a n/a Vested (48 ) 45.38 (789 ) 39.29 Forfeited — — (161 ) 47.33 Nonvested restricted stock - December 31, 2016 283 51.27 1,593 48.88 Granted 87 64.58 733 61.94 Vested (2) (119 ) 49.14 (889 ) 47.48 Forfeited (21 ) 55.00 (82 ) 54.89 Nonvested restricted stock - December 31, 2017 230 $ 57.08 1,355 $ 57.09 n/a – not applicable (1) Fair value is based on the closing price of our common shares on the grant approval date. (2) Share-settled restricted stock units that vested during the year ended December 31, 2017 included 313,391 service-based restricted stock units attributable to a grant made in 2014 which was subject to a three year cliff vesting period. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
SCHEDULE OF INCOME TAX EXPENSE AND NET TAX ASSETS | An analysis of income tax expense and net tax assets is shown in the following table: Year ended December 31, 2017 2016 2015 Current income tax expense (benefit) U.S. $ (6,207 ) $ 606 $ 4,927 Europe 10,249 7,451 144 Other — — 5 Deferred income tax expense (benefit) U.S. 18,495 (1,829 ) (267 ) Europe (30,079 ) 112 (1,781 ) Total income tax expense (benefit) $ (7,542 ) $ 6,340 $ 3,028 Net current tax receivables (payables) $ (639 ) $ 3,540 $ (69 ) Net deferred tax assets 4,438 103,313 104,762 Net tax assets $ 3,799 $ 106,853 $ 104,693 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The significant components of deferred tax assets and liabilities were as follows: At December 31, 2017 2016 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 27,804 $ 47,258 Unearned premiums 25,188 41,797 Operating and capital loss carryforwards 53,095 43,687 Accruals not currently deductible 31,560 59,098 Other investment adjustments and impairments — 84 Tax credits 29,929 10,139 Other deferred tax assets 15,047 3,684 Deferred tax assets before valuation allowance 182,623 205,747 Valuation allowance (16,157 ) (41,100 ) Deferred tax assets net of valuation allowance 166,466 164,647 Deferred tax liabilities: Deferred acquisition costs (24,249 ) (45,788 ) Net unrealized investments gains (8,033 ) (1,168 ) Amortization of VOBA, intangible assets and goodwill (85,296 ) (13,096 ) Equalization reserves (23,274 ) — Other deferred tax liabilities (21,176 ) (1,282 ) Deferred tax liabilities (162,028 ) (61,334 ) Net deferred tax assets $ 4,438 $ 103,313 |
SUMMARY OF TAX CREDITS | Total operating and capital loss carryforwards and tax credits are summarized in the following table: At December 31, 2017 2016 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 77,467 $ 83,532 Australia (branch) operating loss carryforward (2) — 147,193 Australia (branch) capital loss carryforward (2) — 4,207 U. K. operating loss carryforward (3) 126,839 19,306 Ireland capital loss carryforward 716 716 U.S. operating loss carryforward 115,236 14,221 Tax Credits (1) Ireland foreign tax credit $ 3,566 $ 3,298 U.S. alternative minimum tax credit 12,052 6,840 U.K. tax credit (3) 14,310 — (1) All operating and capital loss carryforwards and tax credits can be carried forward indefinitely with the exception of the U.S. net operating loss which will expire in 2037. (2) As a result of ceasing the Company's Australian operations, operating loss and capital loss carryforwards were written off. (3) As a result of the Company's acquisition of Novae, these amounts include $23.0 million and $14.8 million of acquired operating loss and tax credit carryforwards, respectively. |
SUMMARY OF OPERATING AND CAPITAL LOSS CARRYFORWARDS | Total operating and capital loss carryforwards and tax credits are summarized in the following table: At December 31, 2017 2016 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 77,467 $ 83,532 Australia (branch) operating loss carryforward (2) — 147,193 Australia (branch) capital loss carryforward (2) — 4,207 U. K. operating loss carryforward (3) 126,839 19,306 Ireland capital loss carryforward 716 716 U.S. operating loss carryforward 115,236 14,221 Tax Credits (1) Ireland foreign tax credit $ 3,566 $ 3,298 U.S. alternative minimum tax credit 12,052 6,840 U.K. tax credit (3) 14,310 — (1) All operating and capital loss carryforwards and tax credits can be carried forward indefinitely with the exception of the U.S. net operating loss which will expire in 2037. (2) As a result of ceasing the Company's Australian operations, operating loss and capital loss carryforwards were written off. (3) As a result of the Company's acquisition of Novae, these amounts include $23.0 million and $14.8 million of acquired operating loss and tax credit carryforwards, respectively. |
VALUATION ALLOWANCE ROLL FORWARD | An analysis of the movement in the Company's valuation allowance is shown in the following table: At December 31, 2017 2016 Income tax expense: Valuation allowance - beginning of year $ 41,100 $ 40,331 Operating loss carryforwards (27,116 ) 3,857 Foreign tax credit 267 (2,775 ) Australian CTA and accruals and other foreign rate differentials 1,006 (313 ) Change in investment-related items 900 — Valuation allowance - end of year $ 16,157 $ 41,100 |
EFFECTIVE TAX RATE RECONCILIATION | The following table presents the distribution of income before income taxes between domestic and foreign jurisdictions as well as a reconciliation of the actual income tax rate to the amount computed by applying the effective tax rate of 0% under Bermuda law to income before income taxes: Year ended December 31, 2017 2016 2015 Income (loss) before income taxes Bermuda (domestic) $ (188,420 ) $ 469,306 $ 652,235 Foreign (188,091 ) 50,402 (7,576 ) Total income before income taxes $ (376,511 ) $ 519,708 $ 644,659 Reconciliation of effective tax rate (% of income before income taxes) Expected tax rate 0.0 % 0.0 % 0.0 % Foreign taxes at local expected rates: U.S. 6.6 % (0.6 )% 0.8 % Europe 5.8 % 1.5 % (0.2 )% Other 0.3 % 0.0 % (0.3 )% Valuation allowance 0.0 % 0.2 % 1.2 % Net tax exempt income 0.1 % (0.2 )% (0.1 )% Change in U.S. enacted tax rate (11.1 )% 0.0 % 0.0 % Other 0.3 % 0.3 % (0.9 )% Actual tax rate 2.0 % 1.2 % 0.5 % |
OTHER COMPREHENSIVE INCOME (L51
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME (LOSS) | The tax effects allocated to each component of other comprehensive income (loss) are shown in the following table: Before Tax Amount Tax (Expense) Benefit Net of Tax Amount Year ended December 31, 2017 Available for sale investments: Unrealized investment gains arising during the year $ 211,151 $ (5,732 ) $ 205,419 Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income (33,892 ) 758 (33,134 ) Unrealized investment gains arising during the year, net of reclassification adjustment 177,259 (4,974 ) 172,285 Non-credit portion of OTTI losses — — — Foreign currency translation adjustment 41,938 — 41,938 Total other comprehensive income, net of tax $ 219,197 $ (4,974 ) $ 214,223 Year ended December 31, 2016 Available for sale investments: Unrealized investment gains arising during the year $ 10,165 $ (5,093 ) $ 5,072 Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 60,423 1,767 62,190 Unrealized investment gains arising during the year, net of reclassification adjustment 70,588 (3,326 ) 67,262 Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (638 ) — (638 ) Total other comprehensive income, net of tax $ 69,950 $ (3,326 ) $ 66,624 Year ended December 31, 2015 Available for sale investments: Unrealized investment losses arising during the year $ (280,512 ) $ 14,128 $ (266,384 ) Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 145,766 (775 ) 144,991 Unrealized investment losses arising during the year, net of reclassification adjustment (134,746 ) 13,353 (121,393 ) Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (21,498 ) — (21,498 ) Total other comprehensive loss, net of tax $ (156,244 ) $ 13,353 $ (142,891 ) |
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | Reclassifications from AOCI into net income (loss) available to common shareholders are shown in the following table: Amount Reclassified from AOCI (1) Details About AOCI Components Consolidated Statement of Operations Line Item That Includes Reclassification Year ended December 31, 2017 2016 2015 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ 48,385 $ (34,213 ) $ (73,046 ) OTTI losses (14,493 ) (26,210 ) (72,720 ) Total before tax 33,892 (60,423 ) (145,766 ) Income tax (expense) benefit (758 ) (1,767 ) 775 Net of tax $ 33,134 $ (62,190 ) $ (144,991 ) Foreign currency translation adjustments Foreign exchange loss $ (24,149 ) $ — $ — Income tax (expense) benefit — — — Net of tax $ (24,149 ) $ — $ — (1) Amounts in parentheses are debits to net income (loss) available to common shareholders |
STATUTORY FINANCIAL INFORMATI52
STATUTORY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY CAPITAL AND SURPLUS BY JURISDICTION | At December 31, 2017 and 2016 , the statutory capital and surplus in each of the Company's most significant regulatory jurisdictions are shown in the following table: Bermuda Ireland U.S. At December 31, 2017 2016 2017 2016 2017 2016 Required statutory capital and surplus $ 1,800,064 $ 1,835,279 $ 613,923 $ 552,678 $ 488,560 $ 430,145 Available statutory capital and surplus $ 3,641,279 $ 4,055,252 $ 906,512 $ 925,164 $ 1,511,480 $ 1,470,772 |
UNAUDITED CONDENSED QUARTERLY53
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
UNAUDITED SUMMARY OF QUARTERLY FINANCIAL RESULTS | An unaudited summary of quarterly financial results is shown in the following table: Quarters ended Mar 31 Jun 30 Sep 30 Dec 31 2017 Net premiums earned $ 938,703 $ 981,431 $ 1,017,131 $ 1,211,495 Net investment income 98,664 106,063 95,169 100,908 Net realized investment gains (losses) (25,050 ) (4,392 ) 14,632 43,038 Underwriting income (loss) 16,385 57,012 (512,853 ) 26,130 Net income (loss) available to common shareholders 5,014 85,030 (467,740 ) (38,081 ) Earnings (loss) per common share - basic $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) Earnings (loss) per common share - diluted $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) 2016 Net premiums earned $ 902,340 $ 946,990 $ 934,415 $ 921,879 Net investment income 49,164 91,730 116,923 95,517 Net realized investment gains (losses) (66,508 ) 21,010 5,205 (20,229 ) Underwriting income 98,951 9,860 103,998 66,265 Net income available to common shareholders 38,417 119,491 176,644 130,912 Earnings per common share - basic $ 0.41 $ 1.30 $ 1.97 $ 1.50 Earnings per common share - diluted $ 0.41 $ 1.29 $ 1.96 $ 1.48 (1) During the three months ended September 30, and December 31, 2017, the Company recognized transaction and reorganization expenses of $6 million and $21 million , respectively, related to the acquisition and integration of Novae. Refer to Item 8, Note 18 of the Consolidated Financial Statements ' Transaction and Reorganization Expenses ' for further details. (2) During the three months ended December 31, 2017, the Company recognized a tax expense of $42 million due to the revaluation of net deferred tax assets pursuant to the U.S. Tax Reform. Refer to Item 8, Note 19 of the Consolidated Financial Statements 'Income Taxes' for further details. (3) During the three months ended December 31, 2017, the Company recognized amortization of value of business acquired of $50 million related to the acquisition of Novae. Refer to Item 8, Note 3 and Note 5 of the Consolidated Financial Statements ' Business Combinations ' and ' Goodwill and Intangible Assets ' for further details. |
SIGNIFICANT ACCOUNTING POLICES
SIGNIFICANT ACCOUNTING POLICES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Accounting Policies [Abstract] | |
Unrealized gains on equity securities, net of tax, in AOCI | $ 70 |
Change in tax rate, deferred tax liability, provisional income tax benefit | $ 2 |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) | Oct. 02, 2017 | Apr. 01, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Sep. 06, 2017 |
Business Acquisition [Line Items] | ||||||||
Transaction and reorganization expenses | $ 21,000,000 | $ 6,000,000 | $ 27,000,000 | $ 0 | $ 0 | |||
Goodwill | 102,003,000 | 102,003,000 | 47,148,000 | |||||
Bargain purchase gain | 15,044,000 | $ 0 | $ 0 | |||||
Novae | ||||||||
Business Acquisition [Line Items] | ||||||||
Interests acquired | 100.00% | |||||||
Total purchase price paid | $ 616,926,000 | |||||||
Transaction and reorganization expenses | 27,000,000 | |||||||
Goodwill | 54,047,000 | |||||||
Finite lived other intangible assets | 385,405,000 | |||||||
Value of business acquired | $ 257,000,000 | |||||||
Weighted average useful life | 7 years | |||||||
Indefinite lived intangible assets | $ 94,748,000 | |||||||
Total liabilities assumed | 3,342,912,000 | |||||||
Novae | Distribution networks | ||||||||
Business Acquisition [Line Items] | ||||||||
Finite lived other intangible assets | $ 128,463,000 | |||||||
Aviabel | ||||||||
Business Acquisition [Line Items] | ||||||||
Interests acquired | 100.00% | |||||||
Assets | $ 182,000,000 | |||||||
Total liabilities assumed | 79,000,000 | |||||||
Bargain purchase gain | $ 15,000,000 | |||||||
Contessa Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Interests acquired | 100.00% | |||||||
Goodwill | $ 1,000,000 | $ 1,000,000 |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets acquired and liabilities assumed assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Fair value of identifiable intangible assets: | |||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ 102,003 | $ 47,148 | |
Novae | |||
Business Acquisition [Line Items] | |||
Total purchase price paid | $ 616,926 | ||
Assets | |||
Investments | 1,733,611 | ||
Cash and cash equivalents | 191,337 | ||
Insurance and reinsurance premium balances receivable | 472,180 | ||
Reinsurance recoverable on unpaid and paid losses | 787,907 | ||
Prepaid reinsurance premiums | 197,907 | ||
Other assets | 42,696 | ||
Total assets acquired | 3,425,638 | ||
Liabilities | |||
Reserve for losses and loss expenses | 2,125,634 | ||
Unearned premiums | 717,442 | ||
Insurance and reinsurance balances payable | 273,405 | ||
Notes payable | 101,846 | ||
Other liabilities | 124,585 | ||
Total liabilities assumed | 3,342,912 | ||
Fair value of identifiable intangible assets: | |||
Value of business acquired - definite lived intangible asset | 256,942 | ||
Finite lived other intangible assets | 128,463 | ||
Indefinite lived intangible assets | 94,748 | ||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ 54,047 |
BUSINESS COMBINATIONS - Intangi
BUSINESS COMBINATIONS - Intangible assets (Details) - Novae $ in Thousands | Oct. 02, 2017USD ($) |
Business Acquisition [Line Items] | |
Indefinite lived intangible assets | $ 94,748 |
Finite lived other intangible assets | 385,405 |
Identifiable intangible assets at October 2, 2017 | 223,211 |
Coverholders | |
Business Acquisition [Line Items] | |
Finite lived other intangible assets | $ 63,565 |
Economic Useful Life | 12 years |
Large brokers | |
Business Acquisition [Line Items] | |
Finite lived other intangible assets | $ 46,641 |
Economic Useful Life | 15 years |
Small & Mid-sized Enterprise (SME) brokers | |
Business Acquisition [Line Items] | |
Finite lived other intangible assets | $ 14,126 |
Economic Useful Life | 12 years |
Managing General Agent (MGA) Contract | |
Business Acquisition [Line Items] | |
Finite lived other intangible assets | $ 4,131 |
Economic Useful Life | 7 years |
Distribution networks | |
Business Acquisition [Line Items] | |
Finite lived other intangible assets | $ 128,463 |
BUSINESS COMBINATIONS - Financi
BUSINESS COMBINATIONS - Financial results (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||||||||
Net premiums earned | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 921,879 | $ 934,415 | $ 946,990 | $ 902,340 | $ 4,148,760 | $ 3,705,625 | $ 3,686,417 | |
Novae | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Net premiums earned | $ 140,635 | |||||||||||
Total revenue | 191,929 | |||||||||||
Total expenses | (197,895) | |||||||||||
Net income | $ (5,966) |
BUSINESS COMBINATIONS - Pro for
BUSINESS COMBINATIONS - Pro forma (Details) - Novae - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Net premiums earned | $ 4,728,700 | $ 4,560,800 |
Net income | $ (468,400) | $ 532,500 |
SEGMENT INFORMATION - Segment
SEGMENT INFORMATION - Segment results (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2017USD ($)reportable_segment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Segment Information [Line Items] | ||||||||||||
Number of reportable segments | reportable_segment | 2 | |||||||||||
Gross premiums written | $ 5,556,273 | $ 4,970,208 | $ 4,603,730 | |||||||||
Net premiums written | 4,027,143 | 3,752,974 | 3,674,666 | |||||||||
Net premiums earned | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 921,879 | $ 934,415 | $ 946,990 | $ 902,340 | 4,148,760 | 3,705,625 | 3,686,417 | |
Other insurance related income (losses) | (1,240) | 7,222 | (2,953) | |||||||||
Net losses and loss expenses | (3,287,772) | (2,204,197) | (2,176,199) | |||||||||
Acquisition costs | (823,591) | (746,876) | (718,112) | |||||||||
General and administrative expenses | (579,428) | (602,717) | (596,821) | |||||||||
Underwriting income (loss) | 26,130 | (512,853) | 57,012 | 16,385 | 66,265 | 103,998 | 9,860 | 98,951 | ||||
Net investment income | 100,908 | 95,169 | 106,063 | 98,664 | 95,517 | 116,923 | 91,730 | 49,164 | 400,805 | 353,335 | 305,336 | |
Net realized investment losses | 43,038 | $ 14,632 | $ (4,392) | $ (25,050) | (20,229) | $ 5,205 | $ 21,010 | $ (66,508) | 28,226 | (60,525) | (138,491) | |
Foreign exchange losses | (134,737) | 121,295 | 102,312 | |||||||||
Interest expense and financing costs | (54,811) | (51,360) | (50,963) | |||||||||
Termination fee received | 0 | 0 | 280,000 | |||||||||
Bargain purchase gain | 15,044 | 0 | 0 | |||||||||
Transaction and reorganization expenses | (26,718) | 0 | (45,867) | |||||||||
Amortization of value of business acquired | (50,000) | (50,104) | 0 | 0 | ||||||||
Amortization of intangibles | (2,543) | 0 | 0 | |||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | $ (368,109) | $ 521,802 | $ 644,659 | |||||||||
Net loss and loss expense ratio | 79.20% | 59.50% | 59.00% | |||||||||
Acquisition cost ratio | 19.90% | 20.20% | 19.50% | |||||||||
General and administrative expense ratio | 14.00% | 16.20% | 16.20% | |||||||||
Combined ratio | 113.10% | 95.90% | 94.70% | |||||||||
Goodwill and intangible assets | 566,828 | 85,049 | $ 566,828 | $ 85,049 | $ 86,858 | $ 88,960 | ||||||
Insurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Net premiums earned | $ 2,106,363 | $ 1,777,321 | $ 1,798,191 | |||||||||
Net loss and loss expense ratio | 78.90% | 64.30% | 64.20% | |||||||||
Acquisition cost ratio | 15.80% | 14.10% | 14.50% | |||||||||
General and administrative expense ratio | 16.30% | 19.50% | 19.10% | |||||||||
Combined ratio | 111.00% | 97.90% | 97.80% | |||||||||
Goodwill and intangible assets | 566,828 | 85,049 | $ 566,828 | $ 85,049 | $ 86,858 | |||||||
Reinsurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Net premiums earned | $ 2,042,397 | $ 1,928,304 | $ 1,888,226 | |||||||||
Net loss and loss expense ratio | 79.60% | 55.10% | 54.10% | |||||||||
Acquisition cost ratio | 24.00% | 25.70% | 24.20% | |||||||||
General and administrative expense ratio | 5.20% | 7.00% | 7.70% | |||||||||
Combined ratio | 108.80% | 87.80% | 86.00% | |||||||||
Goodwill and intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Operating Segments | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 5,556,273 | 4,970,208 | 4,603,730 | |||||||||
Net premiums written | 4,027,143 | 3,752,974 | 3,674,666 | |||||||||
Net premiums earned | 4,148,760 | 3,705,625 | 3,686,417 | |||||||||
Other insurance related income (losses) | (1,240) | 7,222 | (2,953) | |||||||||
Net losses and loss expenses | (3,287,772) | (2,204,197) | (2,176,199) | |||||||||
Acquisition costs | (823,591) | (746,876) | (718,112) | |||||||||
General and administrative expenses | (449,483) | (482,701) | (486,911) | |||||||||
Underwriting income (loss) | (413,326) | 279,073 | 302,242 | |||||||||
Operating Segments | Insurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 3,127,837 | 2,720,242 | 2,583,081 | |||||||||
Net premiums written | 2,087,734 | 1,807,125 | 1,759,359 | |||||||||
Net premiums earned | 2,106,363 | 1,777,321 | 1,798,191 | |||||||||
Other insurance related income (losses) | 3,458 | 89 | 1,036 | |||||||||
Net losses and loss expenses | (1,661,032) | (1,141,933) | (1,154,928) | |||||||||
Acquisition costs | (332,749) | (251,120) | (261,208) | |||||||||
General and administrative expenses | (344,012) | (346,857) | (341,658) | |||||||||
Underwriting income (loss) | (227,972) | 37,500 | 41,433 | |||||||||
Operating Segments | Reinsurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 2,428,436 | 2,249,966 | 2,020,649 | |||||||||
Net premiums written | 1,939,409 | 1,945,849 | 1,915,307 | |||||||||
Net premiums earned | 2,042,397 | 1,928,304 | 1,888,226 | |||||||||
Other insurance related income (losses) | (4,698) | 7,133 | (3,989) | |||||||||
Net losses and loss expenses | (1,626,740) | (1,062,264) | (1,021,271) | |||||||||
Acquisition costs | (490,842) | (495,756) | (456,904) | |||||||||
General and administrative expenses | (105,471) | (135,844) | (145,253) | |||||||||
Underwriting income (loss) | (185,354) | 241,573 | 260,809 | |||||||||
Corporate | ||||||||||||
Segment Information [Line Items] | ||||||||||||
General and administrative expenses | (129,945) | (120,016) | (109,910) | |||||||||
Significant Reconciling Items | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Net investment income | 400,805 | 353,335 | 305,336 | |||||||||
Net realized investment losses | 28,226 | (60,525) | (138,491) | |||||||||
Foreign exchange losses | (134,737) | 121,295 | 102,312 | |||||||||
Interest expense and financing costs | (54,811) | $ (51,360) | (50,963) | |||||||||
Termination fee received | 280,000 | |||||||||||
Bargain purchase gain | 15,044 | |||||||||||
Transaction and reorganization expenses | (26,718) | $ (45,867) | ||||||||||
Amortization of value of business acquired | (50,104) | |||||||||||
Amortization of intangibles | $ (2,543) |
SEGMENT INFORMATION - Gross pr
SEGMENT INFORMATION - Gross premiums written (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 5,556,273 | $ 4,970,208 | $ 4,603,730 |
Bermuda | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 529,425 | 465,980 | 525,226 |
Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 1,569,956 | 1,650,229 | 1,532,753 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 2,814,933 | 2,562,789 | 2,364,099 |
Lloyd's of London | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 641,959 | $ 291,210 | $ 181,652 |
SEGMENT INFORMATION - Net prem
SEGMENT INFORMATION - Net premiums earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 921,879 | $ 934,415 | $ 946,990 | $ 902,340 | $ 4,148,760 | $ 3,705,625 | $ 3,686,417 |
Insurance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 2,106,363 | 1,777,321 | 1,798,191 | ||||||||
Insurance | Property | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 543,342 | 426,918 | 432,587 | ||||||||
Insurance | Marine | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 181,533 | 150,046 | 183,696 | ||||||||
Insurance | Terrorism | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 36,084 | 33,279 | 36,818 | ||||||||
Insurance | Aviation | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 75,107 | 44,980 | 45,659 | ||||||||
Insurance | Credit and Political Risk | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 56,432 | 57,964 | 63,583 | ||||||||
Insurance | Professional Lines | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 519,759 | 510,806 | 596,430 | ||||||||
Insurance | Liability | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 188,770 | 169,182 | 161,614 | ||||||||
Insurance | Accident and Health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 489,046 | 384,146 | 277,804 | ||||||||
Insurance | Discontinued lines - Novae | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 16,290 | 0 | 0 | ||||||||
Reinsurance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 2,042,397 | 1,928,304 | 1,888,226 | ||||||||
Reinsurance | Property | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 304,376 | 272,403 | 306,083 | ||||||||
Reinsurance | Catastrophe | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 209,470 | 199,825 | 216,020 | ||||||||
Reinsurance | Professional Lines | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 226,622 | 289,868 | 310,915 | ||||||||
Reinsurance | Credit and Surety | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 244,186 | 252,210 | 250,208 | ||||||||
Reinsurance | Motor | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 371,501 | 318,863 | 299,883 | ||||||||
Reinsurance | Liability | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 351,940 | 332,479 | 297,000 | ||||||||
Reinsurance | Agriculture | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 195,391 | 142,501 | 129,346 | ||||||||
Reinsurance | Discontinued lines - Novae | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 8,171 | 0 | 0 | ||||||||
Reinsurance | Engineering | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 66,291 | 62,833 | 61,043 | ||||||||
Reinsurance | Marine and Other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 64,449 | $ 57,322 | $ 17,728 |
GOODWILL AND INTANGIBLE ASSET63
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Dec. 31, 2017 | Dec. 31, 2015 | Dec. 31, 2009 | Dec. 31, 2016 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Intangible Assets Including Goodwill Acquired | $ 537,148 | $ 13,330 | ||||
Gross amount | 23,030 | $ 23,030 | $ 29,166 | |||
Impairment charges | 12,939 | |||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ 102,003 | $ 47,148 | ||||
Minimum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Economic Useful Life | 1 year | |||||
Maximum | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Economic Useful Life | 15 years | |||||
Australian Acquiree | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Economic Useful Life | 30 years | |||||
Impairment charges | $ 12,939 | |||||
Novae | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite lived other intangible assets | $ 385,405 | |||||
Value of business acquired | $ 257,000 | |||||
Weighted average useful life | 7 years | |||||
Indefinite lived intangible assets | $ 94,748 | |||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | 54,047 | |||||
Contessa Limited | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ 1,000 | |||||
Distribution networks | Novae | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite lived other intangible assets | $ 128,463 | |||||
VOBA - Novae | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross amount | 256,942 | |||||
VOBA - Novae | Novae | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted average useful life | 4 years | |||||
Other Intangible Assets | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Gross amount | $ 2,140 | |||||
Other Intangible Assets | Novae | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted average useful life | 13 years |
GOODWILL AND INTANGIBLE ASSET64
GOODWILL AND INTANGIBLE ASSETS - Analysis of goodwill and intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill | ||||
Goodwill, gross | $ 42,237 | $ 42,237 | $ 42,237 | |
Accumulated translation adjustment | 4,911 | 4,911 | 4,911 | |
Goodwill, net of accumulated translation adjustment | $ 102,003 | 47,148 | 47,148 | 47,148 |
Impairment charges | 0 | |||
Acquired during the year | 54,855 | 0 | ||
Intangible assets with an indefinite life | ||||
Gross amount | 26,036 | 26,036 | 26,036 | |
Accumulated amortization | 0 | 0 | 0 | |
Intangible assets with an indefinite life, net | 120,784 | 26,036 | 26,036 | |
Impairment charges, indefinite lived | 0 | |||
Acquired during the year | 94,748 | 0 | ||
Intangible assets with a finite life | ||||
Gross amount | 23,030 | 23,030 | 29,166 | |
Accumulated amortization | (66,534) | (11,165) | (9,356) | (13,390) |
Accumulated translation adjustment | 0 | 0 | 0 | |
Intangible assets with a finite life, net | 344,041 | 11,865 | 13,674 | 15,776 |
Acquired during the year | 387,545 | 13,330 | ||
Amortization | (55,369) | (1,809) | (2,493) | |
Impairment charges | (12,939) | |||
Total | ||||
Gross amount | 91,303 | 91,303 | 97,439 | |
Accumulated amortization | (66,534) | (11,165) | (9,356) | (13,390) |
Accumulated translation adjustment | 4,911 | 4,911 | 4,911 | |
Goodwill and intangible assets net balance | 566,828 | 85,049 | 86,858 | $ 88,960 |
Acquired during the year | 537,148 | 13,330 | ||
Amortization | (55,369) | $ (1,809) | (2,493) | |
Impairment charges | $ (12,939) | |||
Intangibles, wind-down of operations | 6,136 | |||
Accumulated amortization wind-down of operations | $ 7,945 |
GOODWILL AND INTANGIBLE ASSET65
GOODWILL AND INTANGIBLE ASSETS - Gross amount and accumulated amortization by category (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | $ 120,784 | $ 26,036 | $ 26,036 | $ 26,036 |
Gross amount | 23,030 | 23,030 | 29,166 | |
Accumulated amortization | (66,534) | (11,165) | $ (9,356) | $ (13,390) |
Total | 137,203 | |||
Gross amount | 531,359 | 49,066 | ||
Total | 464,825 | 37,901 | ||
Customer lists, trademark and non-compete - Media Pro | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 9,700 | 9,700 | ||
Accumulated amortization | (9,244) | (8,832) | ||
Total | 456 | 868 | ||
Customer relationships and customers lists - Ternian | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 13,330 | 13,330 | ||
Accumulated amortization | (3,666) | (2,333) | ||
Total | 9,664 | 10,997 | ||
Other intangibles - Aviabel | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 2,140 | |||
Accumulated amortization | (977) | |||
Total | 1,163 | |||
VOBA - Novae | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 256,942 | |||
Accumulated amortization | (50,104) | |||
Total | 206,838 | |||
Coverholders | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 63,565 | |||
Accumulated amortization | (1,324) | |||
Total | 62,241 | |||
Large brokers | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 46,641 | |||
Accumulated amortization | (777) | |||
Total | 45,864 | |||
SME brokers | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 14,126 | |||
Accumulated amortization | (294) | |||
Total | 13,832 | |||
MGA contract | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 4,131 | |||
Accumulated amortization | (148) | |||
Total | 3,983 | |||
U.S. state licenses | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | 26,036 | $ 26,036 | ||
Syndicate capacity | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Gross amount | $ 94,748 |
GOODWILL AND INTANGIBLE ASSET66
GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
VOBA | ||||
2,018 | $ 171,124 | |||
2,019 | 26,722 | |||
2,020 | 5,139 | |||
2,021 | 3,853 | |||
2,022 | 0 | |||
2023 and thereafter | 0 | |||
Value of business acquired | 206,838 | $ 0 | ||
Intangible assets | ||||
2,018 | 13,025 | |||
2,019 | 11,606 | |||
2,020 | 11,506 | |||
2,021 | 11,506 | |||
2,022 | 11,506 | |||
2023 and thereafter | 78,054 | |||
Total | 137,203 | |||
Indefinite lived intangible assets | 120,784 | 26,036 | $ 26,036 | $ 26,036 |
Intangible assets | 257,987 | $ 37,901 | ||
Total | ||||
2,018 | 184,149 | |||
2,019 | 38,328 | |||
2,020 | 16,645 | |||
2,021 | 15,359 | |||
2,020 | 11,506 | |||
2023 and thereafter | 78,054 | |||
Total remaining amortization expense | 344,041 | |||
Total intangible assets | $ 464,825 |
INVESTMENTS - Amortized cost or
INVESTMENTS - Amortized cost or cost and fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fixed maturities | ||
Amortized Cost or Cost | $ 12,611,219 | $ 11,523,316 |
Gross Unrealized Gains | 101,660 | 70,993 |
Gross Unrealized Losses | (90,873) | (197,195) |
Fair Value | 12,622,006 | 11,397,114 |
Non-credit OTTI in AOCI | (853) | (823) |
Equity securities | ||
Amortized Cost or Cost | 552,867 | 597,366 |
Gross Unrealized Gains | 84,527 | 53,446 |
Gross Unrealized Losses | (1,883) | (12,068) |
Fair Value | 635,511 | 638,744 |
U.S. government and agency | ||
Fixed maturities | ||
Amortized Cost or Cost | 1,727,643 | 1,681,425 |
Gross Unrealized Gains | 1,735 | 1,648 |
Gross Unrealized Losses | (16,909) | (27,004) |
Fair Value | 1,712,469 | 1,656,069 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-U.S. government | ||
Fixed maturities | ||
Amortized Cost or Cost | 798,582 | 613,282 |
Gross Unrealized Gains | 17,240 | 2,206 |
Gross Unrealized Losses | (9,523) | (49,654) |
Fair Value | 806,299 | 565,834 |
Non-credit OTTI in AOCI | 0 | 0 |
Corporate debt | ||
Fixed maturities | ||
Amortized Cost or Cost | 5,265,795 | 4,633,834 |
Gross Unrealized Gains | 61,922 | 42,049 |
Gross Unrealized Losses | (29,851) | (75,140) |
Fair Value | 5,297,866 | 4,600,743 |
Non-credit OTTI in AOCI | 0 | 0 |
Agency RMBS | ||
Fixed maturities | ||
Amortized Cost or Cost | 2,414,720 | 2,487,837 |
Gross Unrealized Gains | 8,132 | 13,275 |
Gross Unrealized Losses | (27,700) | (35,977) |
Fair Value | 2,395,152 | 2,465,135 |
Non-credit OTTI in AOCI | 0 | 0 |
CMBS | ||
Fixed maturities | ||
Amortized Cost or Cost | 776,715 | 664,368 |
Gross Unrealized Gains | 4,138 | 5,433 |
Gross Unrealized Losses | (3,125) | (3,564) |
Fair Value | 777,728 | 666,237 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-Agency RMBS | ||
Fixed maturities | ||
Amortized Cost or Cost | 45,713 | 57,316 |
Gross Unrealized Gains | 1,917 | 1,628 |
Gross Unrealized Losses | (799) | (2,023) |
Fair Value | 46,831 | 56,921 |
Non-credit OTTI in AOCI | (853) | (823) |
ABS | ||
Fixed maturities | ||
Amortized Cost or Cost | 1,432,884 | 1,221,813 |
Gross Unrealized Gains | 5,391 | 3,244 |
Gross Unrealized Losses | (1,994) | (2,843) |
Fair Value | 1,436,281 | 1,222,214 |
Non-credit OTTI in AOCI | 0 | 0 |
Municipals | ||
Fixed maturities | ||
Amortized Cost or Cost | 149,167 | 163,441 |
Gross Unrealized Gains | 1,185 | 1,510 |
Gross Unrealized Losses | (972) | (990) |
Fair Value | 149,380 | 163,961 |
Non-credit OTTI in AOCI | 0 | 0 |
Common stocks | ||
Equity securities | ||
Amortized Cost or Cost | 22,836 | 379 |
Gross Unrealized Gains | 3,412 | 41 |
Gross Unrealized Losses | (590) | (342) |
Fair Value | 25,658 | 78 |
Exchange-traded funds | ||
Equity securities | ||
Amortized Cost or Cost | 356,252 | 463,936 |
Gross Unrealized Gains | 71,675 | 53,405 |
Gross Unrealized Losses | (294) | (2,634) |
Fair Value | 427,633 | 514,707 |
Bond mutual funds | ||
Equity securities | ||
Amortized Cost or Cost | 173,779 | 133,051 |
Gross Unrealized Gains | 9,440 | 0 |
Gross Unrealized Losses | (999) | (9,092) |
Fair Value | $ 182,220 | $ 123,959 |
INVESTMENTS - Contractual matur
INVESTMENTS - Contractual maturities of fixed maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 486,659 | $ 313,287 |
Due after one year through five years | 4,906,207 | 3,906,190 |
Due after five years through ten years | 2,338,964 | 2,546,299 |
Due after ten years | 209,357 | 326,206 |
Total fixed maturities with a single maturity date (amortized cost) | 7,941,187 | 7,091,982 |
Total | 12,611,219 | 11,523,316 |
Fair Value | ||
Due in one year or less | 484,663 | 305,972 |
Due after one year through five years | 4,912,189 | 3,850,149 |
Due after five years through ten years | 2,350,433 | 2,510,975 |
Due after ten years | 218,729 | 319,511 |
Total fixed maturities with a single maturity date (fair value) | 7,966,014 | 6,986,607 |
Fair Value | $ 12,622,006 | $ 11,397,114 |
% of Total Fair Value | ||
Due in one year or less | 3.80% | 2.80% |
Due after one year through five years | 38.90% | 33.80% |
Due after five years through ten years | 18.60% | 22.00% |
Due after ten years | 1.70% | 2.80% |
Fixed maturities with a single maturity date (% of total fair value) | 63.00% | 61.40% |
Total | 100.00% | 100.00% |
Agency RMBS | ||
Amortized Cost | ||
Fixed maturities without a single maturity date | $ 2,414,720 | $ 2,487,837 |
Total | 2,414,720 | 2,487,837 |
Fair Value | ||
Fixed maturities without a single maturity date (fair value) | 2,395,152 | 2,465,135 |
Fair Value | $ 2,395,152 | $ 2,465,135 |
% of Total Fair Value | ||
Fixed maturities without a single maturity date (% of total fair value) | 19.00% | 21.60% |
CMBS | ||
Amortized Cost | ||
Fixed maturities without a single maturity date | $ 776,715 | $ 664,368 |
Total | 776,715 | 664,368 |
Fair Value | ||
Fixed maturities without a single maturity date (fair value) | 777,728 | 666,237 |
Fair Value | $ 777,728 | $ 666,237 |
% of Total Fair Value | ||
Fixed maturities without a single maturity date (% of total fair value) | 6.20% | 5.80% |
Non-Agency RMBS | ||
Amortized Cost | ||
Fixed maturities without a single maturity date | $ 45,713 | $ 57,316 |
Total | 45,713 | 57,316 |
Fair Value | ||
Fixed maturities without a single maturity date (fair value) | 46,831 | 56,921 |
Fair Value | $ 46,831 | $ 56,921 |
% of Total Fair Value | ||
Fixed maturities without a single maturity date (% of total fair value) | 0.40% | 0.50% |
ABS | ||
Amortized Cost | ||
Fixed maturities without a single maturity date | $ 1,432,884 | $ 1,221,813 |
Total | 1,432,884 | 1,221,813 |
Fair Value | ||
Fixed maturities without a single maturity date (fair value) | 1,436,281 | 1,222,214 |
Fair Value | $ 1,436,281 | $ 1,222,214 |
% of Total Fair Value | ||
Fixed maturities without a single maturity date (% of total fair value) | 11.40% | 10.70% |
INVESTMENTS - Gross unrealized
INVESTMENTS - Gross unrealized losses (Details) $ in Thousands | Dec. 31, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Schedule Of Available For Sale Securities [Line Items] | ||
Total Unrealized Losses | $ (91,000) | $ (197,000) |
Fixed maturities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 1,532,513 | 971,489 |
Unrealized Losses - 12 months or greater | (44,352) | (77,645) |
Fair Value - Less than 12 months | 5,619,002 | 5,833,715 |
Unrealized Losses - Less than 12 months | (46,521) | (119,550) |
Total Fair Value of Securities in Unrealized Loss Position | 7,151,515 | 6,805,204 |
Total Unrealized Losses | $ (90,873) | $ (197,195) |
Number of available for sale securities in unrealized loss positions | security | 2,424 | 1,881 |
Number of available for sale securities in unrealized loss positions for 12 months or greater | security | 627 | 330 |
Fixed maturities | Below Investment Grade or Not Rated | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Total Unrealized Losses | $ (7,000) | $ (15,000) |
U.S. government and agency | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 194,916 | 54,051 |
Unrealized Losses - 12 months or greater | (5,963) | (2,729) |
Fair Value - Less than 12 months | 1,389,792 | 1,340,719 |
Unrealized Losses - Less than 12 months | (10,946) | (24,275) |
Total Fair Value of Securities in Unrealized Loss Position | 1,584,708 | 1,394,770 |
Total Unrealized Losses | (16,909) | (27,004) |
Non-U.S. government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 62,878 | 149,360 |
Unrealized Losses - 12 months or greater | (6,806) | (38,683) |
Fair Value - Less than 12 months | 204,110 | 283,796 |
Unrealized Losses - Less than 12 months | (2,717) | (10,971) |
Total Fair Value of Securities in Unrealized Loss Position | 266,988 | 433,156 |
Total Unrealized Losses | (9,523) | (49,654) |
Corporate debt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 407,300 | 230,218 |
Unrealized Losses - 12 months or greater | (11,800) | (30,652) |
Fair Value - Less than 12 months | 2,041,845 | 1,948,976 |
Unrealized Losses - Less than 12 months | (18,051) | (44,488) |
Total Fair Value of Securities in Unrealized Loss Position | 2,449,145 | 2,179,194 |
Total Unrealized Losses | (29,851) | (75,140) |
Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 759,255 | 76,694 |
Unrealized Losses - 12 months or greater | (17,453) | (1,101) |
Fair Value - Less than 12 months | 1,172,313 | 1,724,170 |
Unrealized Losses - Less than 12 months | (10,247) | (34,876) |
Total Fair Value of Securities in Unrealized Loss Position | 1,931,568 | 1,800,864 |
Total Unrealized Losses | (27,700) | (35,977) |
CMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 31,607 | 84,640 |
Unrealized Losses - 12 months or greater | (703) | (749) |
Fair Value - Less than 12 months | 348,943 | 193,499 |
Unrealized Losses - Less than 12 months | (2,422) | (2,815) |
Total Fair Value of Securities in Unrealized Loss Position | 380,550 | 278,139 |
Total Unrealized Losses | (3,125) | (3,564) |
Non-Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 8,029 | 13,642 |
Unrealized Losses - 12 months or greater | (788) | (1,752) |
Fair Value - Less than 12 months | 4,197 | 7,194 |
Unrealized Losses - Less than 12 months | (11) | (271) |
Total Fair Value of Securities in Unrealized Loss Position | 12,226 | 20,836 |
Total Unrealized Losses | (799) | (2,023) |
ABS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 57,298 | 362,110 |
Unrealized Losses - 12 months or greater | (570) | (1,950) |
Fair Value - Less than 12 months | 392,170 | 266,763 |
Unrealized Losses - Less than 12 months | (1,424) | (893) |
Total Fair Value of Securities in Unrealized Loss Position | 449,468 | 628,873 |
Total Unrealized Losses | (1,994) | (2,843) |
Municipals | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value - 12 months or greater | 11,230 | 774 |
Unrealized Losses - 12 months or greater | (269) | (29) |
Fair Value - Less than 12 months | 65,632 | 68,598 |
Unrealized Losses - Less than 12 months | (703) | (961) |
Total Fair Value of Securities in Unrealized Loss Position | 76,862 | 69,372 |
Total Unrealized Losses | (972) | (990) |
Equity securities | ||
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 | 27,709 | 211,751 |
Unrealized Losses - Less than 12 months | (1,883) | (11,607) |
Total Fair Value of Securities in Unrealized Loss Position | 27,709 | 216,710 |
Total Unrealized Losses | $ (1,883) | $ (12,068) |
Number of available for sale securities in unrealized loss positions | security | 29 | 23 |
Number of available for sale securities in unrealized loss positions for 12 months or greater | security | 0 | 3 |
Common stocks | ||
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 | 3,202 | 37 |
Unrealized Losses - Less than 12 months | (590) | (342) |
Total Fair Value of Securities in Unrealized Loss Position | 3,202 | 37 |
Total Unrealized Losses | (590) | (342) |
Exchange-traded funds | ||
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 | 12,323 | 87,760 |
Unrealized Losses - Less than 12 months | (294) | (2,173) |
Total Fair Value of Securities in Unrealized Loss Position | 12,323 | 92,719 |
Total Unrealized Losses | (294) | (2,634) |
Bond mutual funds | ||
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 | 12,184 | 123,954 |
Unrealized Losses - Less than 12 months | (999) | (9,092) |
Total Fair Value of Securities in Unrealized Loss Position | 12,184 | 123,954 |
Total Unrealized Losses | $ (999) | $ (9,092) |
INVESTMENTS - Mortgage loans (D
INVESTMENTS - Mortgage loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Mortgage Loans held-for-investment: | ||
Commercial | $ 325,062 | $ 349,969 |
Valuation allowances | 0 | 0 |
Total Mortgage Loans held-for-investment | $ 325,062 | $ 349,969 |
% of Total | ||
Commercial | 100.00% | 100.00% |
Valuation allowances | 0.00% | 0.00% |
Total Mortgage Loans held-for-investment | 100.00% | 100.00% |
Debt service coverage ratio, in excess of | 3 | |
Loan-to-value ratio, percent (less than) | 60.00% | |
Credit losses on commercial mortgage loans | $ 0 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Investments [Line Items] | |||
Other investments | $ 1,009,373 | $ 830,219 | |
Percentage of total fair value | 100.00% | 100.00% | |
Unfunded commitments related to other investments | $ 414,000 | $ 401,000 | |
Hedge funds | Lockup Redemption Restriction | |||
Other Investments [Line Items] | |||
Fair value of other investments subject to redemption restrictions | $ 38,000 | $ 60,000 | |
Percentage of fair value of other investments subject to redemption restrictions | 11.00% | 12.00% | |
Long/short equity funds | |||
Other Investments [Line Items] | |||
Other investments | $ 38,470 | $ 118,619 | |
Percentage of total fair value | 4.00% | 14.00% | |
Redemption notice period | 60 days | ||
Long/short equity funds | Minimum | |||
Other Investments [Line Items] | |||
Redemption notice period | 45 days | ||
Long/short equity funds | Maximum | |||
Other Investments [Line Items] | |||
Redemption notice period | 60 days | ||
Multi-strategy funds | |||
Other Investments [Line Items] | |||
Other investments | $ 286,164 | $ 285,992 | |
Percentage of total fair value | 28.00% | 34.00% | |
Multi-strategy funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 16,000 | $ 12,000 | |
Investment term | 2 years | ||
Multi-strategy funds | Minimum | |||
Other Investments [Line Items] | |||
Redemption notice period | 60 days | 60 days | |
Multi-strategy funds | Maximum | |||
Other Investments [Line Items] | |||
Redemption notice period | 95 days | 95 days | |
Event-driven funds | |||
Other Investments [Line Items] | |||
Other investments | $ 39,177 | $ 93,539 | |
Percentage of total fair value | 4.00% | 11.00% | |
Redemption notice period | 45 days | 45 days | |
Direct lending funds | |||
Other Investments [Line Items] | |||
Other investments | $ 250,681 | $ 134,650 | |
Percentage of total fair value | 25.00% | 16.00% | |
Direct lending funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 137,000 | $ 176,000 | |
Optional extension of investment term | 3 years | ||
Direct lending funds | Minimum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 5 years | ||
Direct lending funds | Maximum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 10 years | ||
Private equity funds | |||
Other Investments [Line Items] | |||
Other investments | $ 68,812 | $ 81,223 | |
Percentage of total fair value | 7.00% | 10.00% | |
Unfunded commitments related to other investments | $ 21,000 | $ 24,000 | |
Investment term | 10 years | ||
Real estate funds | |||
Other Investments [Line Items] | |||
Other investments | $ 50,009 | $ 13,354 | |
Percentage of total fair value | 5.00% | 2.00% | |
Real estate funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 115,000 | $ 140,000 | |
Real estate funds | Minimum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 7 years | ||
CLO-Equities | |||
Other Investments [Line Items] | |||
Other investments | $ 31,413 | $ 60,700 | |
Percentage of total fair value | 2.00% | 8.00% | |
Other privately held investments | |||
Other Investments [Line Items] | |||
Other investments | $ 46,430 | $ 42,142 | |
Percentage of total fair value | 5.00% | 5.00% | |
Overseas deposits | |||
Other Investments [Line Items] | |||
Other investments | $ 198,217 | $ 0 | |
Percentage of total fair value | 20.00% | 0.00% | |
Bank Revolver Opportunity Funds | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 50,000 | ||
Investment term | 7 years | ||
Optional extension of investment term | 2 years | ||
Open-ended commercial mortgage income fund | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 75,000 |
INVESTMENTS - Equity method inv
INVESTMENTS - Equity method investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | $ 1,000,000 | $ 107,913,000 | $ 0 |
Equity method investments | 108,597,000 | 116,000,000 | |
Harrington Reinsurance Holdings Limited | |||
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 | ||
U.S. | Other Equity Method Investments | |||
Schedule of Equity Method Investments [Line Items] | |||
Equity method investment, other than temporary impairment | 9,000,000 | ||
Equity method investments | $ 0 |
INVESTMENTS - Net Investment In
INVESTMENTS - Net Investment Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 427,994 | $ 383,544 | $ 337,034 | ||||||||
Investment expenses | (27,189) | (30,209) | (31,698) | ||||||||
Net investment income | $ 100,908 | $ 95,169 | $ 106,063 | $ 98,664 | $ 95,517 | $ 116,923 | $ 91,730 | $ 49,164 | 400,805 | 353,335 | 305,336 |
Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 312,662 | 305,459 | 294,725 | ||||||||
Other investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 76,858 | 42,514 | 20,148 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 14,919 | 16,306 | 11,289 | ||||||||
Mortgage loans | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 10,780 | 7,996 | 1,861 | ||||||||
Cash and cash equivalents | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 10,057 | 9,209 | 8,572 | ||||||||
Short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 2,718 | $ 2,060 | $ 439 |
INVESTMENTS - Net Realized Inve
INVESTMENTS - Net Realized Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule Of Available For Sale Securities [Line Items] | |||||||||||
Gross realized gains | $ 150,389 | $ 105,371 | $ 79,215 | ||||||||
Gross realized losses | (99,401) | (150,615) | (152,245) | ||||||||
Net OTTI recognized in net income | (14,493) | (26,210) | (72,720) | ||||||||
Change in fair value of investment derivatives | (8,269) | 10,929 | 7,259 | ||||||||
Total net realized investment gains (losses) | $ 43,038 | $ 14,632 | $ (4,392) | $ (25,050) | $ (20,229) | $ 5,205 | $ 21,010 | $ (66,508) | 28,226 | (60,525) | (138,491) |
Fixed maturities and short-term investments | |||||||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||||||
Gross realized gains | 72,046 | 86,267 | 60,102 | ||||||||
Gross realized losses | (98,442) | (134,460) | (143,702) | ||||||||
Equity securities | |||||||||||
Schedule Of Available For Sale Securities [Line Items] | |||||||||||
Gross realized gains | 78,343 | 19,104 | 19,113 | ||||||||
Gross realized losses | $ (959) | $ (16,155) | $ (8,543) |
INVESTMENTS - OTTI recognized i
INVESTMENTS - OTTI recognized in earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 14,493 | $ 26,210 | $ 72,720 |
Non-U.S. government | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 8,187 | 3,557 | 3,538 |
Corporate debt | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 6,306 | 20,093 | 47,029 |
Non-Agency RMBS | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 0 | 111 |
ABS | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 0 | 124 |
Fixed maturities | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 14,493 | 23,650 | 50,802 |
Exchange-traded funds | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 2,560 | 10,732 |
Bond mutual funds | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 0 | 11,186 |
Equity securities | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 0 | $ 2,560 | $ 21,918 |
INVESTMENTS - Credit loss table
INVESTMENTS - Credit loss table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Credit Losses For Which a Portion of OTTI Was Recognized in AOCI [Roll Forward] | ||
Balance at beginning of period | $ 1,493 | $ 1,506 |
Credit impairments recognized on securities not previously impaired | 0 | 0 |
Additional credit impairments recognized on securities previously impaired | 13 | 20 |
Change in timing of future cash flows on securities previously impaired | 0 | 0 |
Intent to sell of securities previously impaired | 0 | 0 |
Securities sold/redeemed/matured | (12) | (33) |
Balance at end of period | $ 1,494 | $ 1,493 |
INVESTMENTS - Securities narrat
INVESTMENTS - Securities narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 12,622,006 | $ 11,397,114 |
Unrealized Losses | (91,000) | (197,000) |
Equity securities | 635,511 | 638,744 |
Non-U.S. government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 806,299 | 565,834 |
Unrealized Losses | (9,523) | (49,654) |
Non-U.S. government | Eurozone | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 185,000 | 28,000 |
CMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 777,728 | 666,237 |
Unrealized Losses | $ (3,125) | $ (3,564) |
CMBS | Weighted Average | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Subordination percentage input for determining credit losses | 29.00% | 36.00% |
Non-Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | $ 46,831 | $ 56,921 |
Unrealized Losses | (799) | (2,023) |
Non-Agency RMBS | Prime | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 34,000 | 40,000 |
Non-Agency RMBS | Alt A | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair Value | 8,000 | 10,000 |
Equity securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Unrealized Losses | $ (1,883) | $ (12,068) |
INVESTMENTS - Restricted assets
INVESTMENTS - Restricted assets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Restricted Investments [Line Items] | ||
Collateral in Trust for third party agreements | $ 2,085,443 | $ 508,262 |
Collateral in Trust for inter-company agreements | 3,310,180 | 2,877,823 |
Collateral for secured letter of credit facility | 386,451 | 448,366 |
Funds at Lloyd's | 1,192,717 | 382,611 |
Collateral in Trust for third party agreements | 2,085,443 | 508,262 |
Securities on deposit with regulatory authorities | 53,925 | 50,290 |
Total restricted investments | 7,028,716 | 4,267,352 |
Lloyd's | ||
Restricted Investments [Line Items] | ||
Collateral in Trust for third party agreements | 1,200,000 | 383,000 |
Collateral in Trust for third party agreements | 1,200,000 | 383,000 |
Syndicate 2,007 | ||
Restricted Investments [Line Items] | ||
Collateral in Trust for third party agreements | 1,120,000 | |
Pledged cash for third party insurance and reinsurance agreements | 55,000 | |
Collateral in Trust for third party agreements | 1,120,000 | |
Syndicate 1,686 | ||
Restricted Investments [Line Items] | ||
Pledged cash for third party insurance and reinsurance agreements | $ 140,000 | $ 84,000 |
INVESTMENTS - Reverse repurchas
INVESTMENTS - Reverse repurchase agreements (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 37 | $ 176 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,622,006 | $ 11,397,114 |
Equity securities | 635,511 | 638,744 |
Other investments | 1,009,373 | 830,219 |
Short-term investments | 83,661 | 127,461 |
Derivative instruments | 5,125 | 16,897 |
Derivative instruments | 14,386 | 15,576 |
U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,712,469 | 1,656,069 |
Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 806,299 | 565,834 |
Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 5,297,866 | 4,600,743 |
Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,395,152 | 2,465,135 |
CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 777,728 | 666,237 |
Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 46,831 | 56,921 |
ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,436,281 | 1,222,214 |
Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 149,380 | 163,961 |
Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 25,658 | 78 |
Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 427,633 | 514,707 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 182,220 | 123,959 |
Fair Value Measurements Recurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 12,622,006 | 11,397,114 |
Equity securities | 635,511 | 638,744 |
Other investments | 1,009,373 | 830,219 |
Short-term investments | 83,661 | 127,461 |
Derivative instruments | 5,125 | 16,897 |
Insurance-linked securities | 25,090 | 25,023 |
Total Assets | 14,380,766 | 13,035,458 |
Derivative instruments | 14,386 | 15,576 |
Cash settled awards | 21,535 | 48,432 |
Total Liabilities | 35,921 | 64,008 |
Fair Value Measurements Recurring | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,712,469 | 1,656,069 |
Fair Value Measurements Recurring | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 806,299 | 565,834 |
Fair Value Measurements Recurring | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 5,297,866 | 4,600,743 |
Fair Value Measurements Recurring | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,395,152 | 2,465,135 |
Fair Value Measurements Recurring | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 777,728 | 666,237 |
Fair Value Measurements Recurring | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 46,831 | 56,921 |
Fair Value Measurements Recurring | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,436,281 | 1,222,214 |
Fair Value Measurements Recurring | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 149,380 | 163,961 |
Fair Value Measurements Recurring | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 25,658 | 78 |
Fair Value Measurements Recurring | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 427,633 | 514,707 |
Fair Value Measurements Recurring | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 182,220 | 123,959 |
Fair Value Measurements Recurring | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 363,811 | 498,150 |
Fair Value Measurements Recurring | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 250,681 | 134,650 |
Fair Value Measurements Recurring | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 68,812 | 81,223 |
Fair Value Measurements Recurring | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 50,009 | 13,354 |
Fair Value Measurements Recurring | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 46,430 | 42,142 |
Fair Value Measurements Recurring | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 31,413 | 60,700 |
Fair Value Measurements Recurring | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 198,217 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,658,622 | 1,583,106 |
Equity securities | 453,291 | 514,785 |
Other investments | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 0 | 0 |
Total Assets | 2,111,913 | 2,097,891 |
Derivative instruments | 0 | 0 |
Cash settled awards | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,658,622 | 1,583,106 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 25,658 | 78 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 427,633 | 514,707 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Quoted Prices in Active Markets for Identical Assets (Level 1) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,910,487 | 9,717,608 |
Equity securities | 182,220 | 123,959 |
Other investments | 198,217 | 0 |
Short-term investments | 83,661 | 127,461 |
Derivative instruments | 5,125 | 14,365 |
Insurance-linked securities | 0 | 0 |
Total Assets | 11,379,710 | 9,983,393 |
Derivative instruments | 2,876 | 9,076 |
Cash settled awards | 21,535 | 48,432 |
Total Liabilities | 24,411 | 57,508 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 53,847 | 72,963 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 806,299 | 565,834 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 5,244,969 | 4,524,868 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,395,152 | 2,465,135 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 777,728 | 663,176 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 46,831 | 56,921 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,436,281 | 1,204,750 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 149,380 | 163,961 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 182,220 | 123,959 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Other Observable Inputs (Level 2) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 198,217 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 52,897 | 96,400 |
Equity securities | 0 | 0 |
Other investments | 77,843 | 102,842 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 2,532 |
Insurance-linked securities | 25,090 | 25,023 |
Total Assets | 155,830 | 226,797 |
Derivative instruments | 11,510 | 6,500 |
Cash settled awards | 0 | 0 |
Total Liabilities | 11,510 | 6,500 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 52,897 | 75,875 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 3,061 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 17,464 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 46,430 | 42,142 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 31,413 | 60,700 |
Fair Value Measurements Recurring | Significant Unobservable Inputs (Level 3) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Equity securities | 0 | 0 |
Other investments | 733,313 | 727,377 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 0 | 0 |
Total Assets | 733,313 | 727,377 |
Derivative instruments | 0 | 0 |
Cash settled awards | 0 | 0 |
Total Liabilities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 363,811 | 498,150 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 250,681 | 134,650 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 68,812 | 81,223 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 50,009 | 13,354 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
Fair Value Measurements Recurring | Fair value based on NAV practical expedient | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Leve
FAIR VALUE MEASUREMENTS - Level 3 fair value inputs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 1,009,373 | $ 830,219 |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 29,604 | |
Default rates | 3.80% | |
Loss severity rate | 35.00% | |
Collateral spreads | 3.00% | |
Estimated maturity dates (years) | 7 years | |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Discounted cash flow | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Default rates | 3.80% | |
Loss severity rate | 35.00% | |
Collateral spreads | 3.00% | |
Estimated maturity dates (years) | 7 years | |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Liquidation value | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 1,809 | |
Fair value of collateral | 100.00% | |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Liquidation value | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount Margin | 0.10% | |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Liquidation value | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount Margin | 16.60% | |
Significant Unobservable Inputs (Level 3) | Other investments - CLO-Equities | Liquidation value | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value of collateral | 100.00% | |
Discount Margin | 2.80% | |
Significant Unobservable Inputs (Level 3) | Other privately held investments | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments | $ 46,430 | |
Significant Unobservable Inputs (Level 3) | Other privately held investments | Discounted cash flow | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 6.00% | |
Significant Unobservable Inputs (Level 3) | Other privately held investments | Discounted cash flow | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 8.50% | |
Significant Unobservable Inputs (Level 3) | Other privately held investments | Discounted cash flow | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 7.50% | |
Significant Unobservable Inputs (Level 3) | Derivatives - Other underwriting-related derivatives | Discounted cash flow | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Net derivative assets | $ (11,510) | |
Discount rate | 2.40% | |
Significant Unobservable Inputs (Level 3) | Derivatives - Other underwriting-related derivatives | Discounted cash flow | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 2.40% |
FAIR VALUE MEASUREMENTS - Le82
FAIR VALUE MEASUREMENTS - Level 3 for financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Total liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | $ 6,500 | $ 10,937 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 9,320 | 1,862 |
Included in OCI | 0 | 0 |
Purchases | 12,472 | 2,723 |
Sales | 0 | 0 |
Settlements/ Distributions | (16,782) | (9,022) |
Closing Balance | 11,510 | 6,500 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | (962) | (654) |
Derivative instruments | Other liabilities | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 6,500 | 10,937 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | 9,320 | 1,862 |
Included in OCI | 0 | 0 |
Purchases | 12,472 | 2,723 |
Sales | 0 | 0 |
Settlements/ Distributions | (16,782) | (9,022) |
Closing Balance | 11,510 | 6,500 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | (962) | (654) |
Fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 96,400 | 49,440 |
Transfers into Level 3 | 2,324 | 5,733 |
Transfers out of Level 3 | (21,670) | (7,471) |
Included in net income | (503) | (1,037) |
Included in OCI | (39) | 187 |
Purchases | 17,062 | 66,679 |
Sales | (22,903) | (4,371) |
Settlements/ Distributions | (17,774) | (12,760) |
Closing Balance | 52,897 | 96,400 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Fixed maturities | Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 75,875 | 38,518 |
Transfers into Level 3 | 2,324 | 5,733 |
Transfers out of Level 3 | (2,721) | (4,955) |
Included in net income | (503) | (1,037) |
Included in OCI | (1,524) | 1,296 |
Purchases | 17,062 | 48,298 |
Sales | (22,903) | (4,371) |
Settlements/ Distributions | (14,713) | (7,607) |
Closing Balance | 52,897 | 75,875 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Fixed maturities | CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 3,061 | 10,922 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (2,516) |
Included in net income | 0 | 0 |
Included in OCI | 0 | (192) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ Distributions | (3,061) | (5,153) |
Closing Balance | 0 | 3,061 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Fixed maturities | ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 17,464 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (18,949) | 0 |
Included in net income | 0 | 0 |
Included in OCI | 1,485 | (917) |
Purchases | 0 | 18,381 |
Sales | 0 | 0 |
Settlements/ Distributions | 0 | 0 |
Closing Balance | 0 | 17,464 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Other investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 102,842 | 27,257 |
Transfers into Level 3 | 0 | 36,378 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 4,142 | 16,713 |
Included in OCI | 0 | 0 |
Purchases | 2,704 | 44,405 |
Sales | 0 | 0 |
Settlements/ Distributions | (31,845) | (21,911) |
Closing Balance | 77,843 | 102,842 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 4,142 | 16,713 |
Other investments | Other privately held investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 42,142 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 1,584 | (2,263) |
Included in OCI | 0 | 0 |
Purchases | 2,704 | 44,405 |
Sales | 0 | 0 |
Settlements/ Distributions | 0 | 0 |
Closing Balance | 46,430 | 42,142 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 1,584 | (2,263) |
Other investments | CLO-Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 60,700 | 27,257 |
Transfers into Level 3 | 0 | 36,378 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 2,558 | 18,976 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ Distributions | (31,845) | (21,911) |
Closing Balance | 31,413 | 60,700 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 2,558 | 18,976 |
Other assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 27,555 | 29,320 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 720 | 6,870 |
Included in OCI | 0 | 0 |
Purchases | 0 | 1,289 |
Sales | 0 | 0 |
Settlements/ Distributions | (3,185) | (9,924) |
Closing Balance | 25,090 | 27,555 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 67 | 1,298 |
Other assets | Derivative instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 2,532 | 4,395 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 653 | 6,772 |
Included in OCI | 0 | 0 |
Purchases | 0 | 1,289 |
Sales | 0 | 0 |
Settlements/ Distributions | (3,185) | (9,924) |
Closing Balance | 0 | 2,532 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 1,200 |
Other assets | Insurance-linked securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 25,023 | 24,925 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 67 | 98 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ Distributions | 0 | 0 |
Closing Balance | 25,090 | 25,023 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 67 | 98 |
Total assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening Balance | 226,797 | 106,017 |
Transfers into Level 3 | 2,324 | 42,111 |
Transfers out of Level 3 | (21,670) | (7,471) |
Included in net income | 4,359 | 22,546 |
Included in OCI | (39) | 187 |
Purchases | 19,766 | 112,373 |
Sales | (22,903) | (4,371) |
Settlements/ Distributions | (52,804) | (44,595) |
Closing Balance | 155,830 | 226,797 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | $ 4,209 | $ 18,011 |
FAIR VALUE MEASUREMENTS - Narr
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Dec. 31, 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 | |
Percentage of funds reported on a lag | 44.00% | 35.00% |
Senior notes | $ 1,341 | $ 993 |
Notes payable | 36 | |
Estimate of Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | 1,412 | $ 1,050 |
Notes payable | $ 36 |
DERIVATIVE INSTRUMENTS - Balan
DERIVATIVE INSTRUMENTS - Balance sheet classification of derivatives recorded at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | $ 5,125 | $ 16,897 |
Derivative Liability Fair Value | 14,386 | 15,576 |
Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 5,125 | 16,897 |
Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 14,386 | 15,576 |
Investment Portfolio | Foreign exchange forward contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 137,422 | 195,979 |
Investment Portfolio | Foreign exchange forward contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 10 | 12,331 |
Investment Portfolio | Foreign exchange forward contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 619 | 87 |
Investment Portfolio | Interest rate swaps | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 191,000 | 0 |
Investment Portfolio | Interest rate swaps | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 448 | 0 |
Investment Portfolio | Interest rate swaps | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 1,556 | 0 |
Underwriting Portfolio | Foreign exchange forward contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 698,959 | 492,899 |
Underwriting Portfolio | Foreign exchange forward contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 4,667 | 2,034 |
Underwriting Portfolio | Foreign exchange forward contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 701 | 8,989 |
Underwriting Portfolio | Weather-related contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 0 | 67,957 |
Underwriting Portfolio | Weather-related contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 0 | 2,532 |
Underwriting Portfolio | Weather-related contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 0 | 6,500 |
Underwriting Portfolio | Commodity contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 0 | 0 |
Underwriting Portfolio | Commodity contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 0 | 0 |
Underwriting Portfolio | Commodity contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | 0 | 0 |
Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Notional Amount | 85,000 | 0 |
Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Asset Fair Value | 0 | 0 |
Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative Liability Fair Value | $ 11,510 | $ 0 |
DERIVATIVE INSTRUMENTS - Offse
DERIVATIVE INSTRUMENTS - Offsetting assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Derivative assets | ||
Gross Amounts | $ 8,178 | $ 22,270 |
Gross Amounts Offset | (3,053) | (5,373) |
Net Amounts | 5,125 | 16,897 |
Derivative liabilities | ||
Gross Amounts | 17,439 | 20,949 |
Gross Amounts Offset | (3,053) | (5,373) |
Net Amounts | $ 14,386 | $ 15,576 |
DERIVATIVE INSTRUMENTS - Unrea
DERIVATIVE INSTRUMENTS - Unrealized and realized gains (losses) recognized in earnings for derivatives (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
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 | $ 8,961 | $ 5,278 | $ (22,972) |
Investment Portfolio | Foreign exchange forward contracts | Net realized investment gains (losses) | |||
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 | (6,935) | 10,929 | 11,265 |
Investment Portfolio | Interest rate swaps | Net realized investment gains (losses) | |||
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 | (1,334) | 0 | (4,006) |
Underwriting Portfolio | Foreign exchange forward contracts | Foreign exchange gains (losses) | |||
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 | 25,383 | (8,179) | (25,412) |
Underwriting Portfolio | Weather-related contracts | Other insurance related income (loss) | |||
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 | (9,629) | 4,910 | (3,005) |
Underwriting Portfolio | Commodity contracts | Other insurance related income (loss) | |||
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 | (2,382) | (1,814) |
Derivatives - Other underwriting-related derivatives | Commodity contracts | Other insurance related income (loss) | |||
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 | $ 1,476 | $ 0 | $ 0 |
RESERVE FOR LOSSES AND LOSS E87
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve for losses and loss expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Insurance Loss Reserves [Abstract] | ||||
Reserve for reported losses and loss expenses | $ 5,137,659 | $ 3,358,514 | ||
Reserve for losses incurred but not reported | 7,859,894 | 6,339,313 | ||
Reserve for losses and loss expenses | $ 12,997,553 | $ 9,697,827 | $ 9,646,285 | $ 9,596,797 |
RESERVE FOR LOSSES AND LOSS E88
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | |||
Gross reserve for losses and loss expenses, beginning of year | $ 9,697,827 | $ 9,646,285 | $ 9,596,797 |
Less reinsurance recoverable on unpaid losses, beginning of year | (2,276,109) | (2,031,309) | (1,890,280) |
Net reserve for unpaid losses and loss expenses, beginning of year | 7,421,718 | 7,614,976 | 7,706,517 |
Net incurred losses and loss expenses related to: | |||
Current year | 3,487,826 | 2,496,574 | 2,419,247 |
Prior years | (200,054) | (292,377) | (243,048) |
Net incurred losses and loss expenses | 3,287,772 | 2,204,197 | 2,176,199 |
Net paid losses and loss expenses related to: | |||
Current year | (703,796) | (428,153) | (343,063) |
Prior years | (1,880,882) | (1,763,696) | (1,709,659) |
Net paid losses and loss expenses | (2,584,678) | (2,191,849) | (2,052,722) |
Foreign exchange and other | 1,713,227 | (205,606) | (215,018) |
Net reserve for unpaid losses and loss expenses, end of year | 9,838,039 | 7,421,718 | 7,614,976 |
Reinsurance recoverable on unpaid losses, end of year | 3,159,514 | 2,276,109 | 2,031,309 |
Gross reserve for losses and loss expenses, end of year | $ 12,997,553 | $ 9,697,827 | $ 9,646,285 |
RESERVE FOR LOSSES AND LOSS E89
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred losses narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2017 | Feb. 13, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Oct. 02, 2017 | Mar. 20, 2017 | Mar. 19, 2017 | Dec. 31, 2014 |
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Current year net loss and loss expenses | $ 3,487,826 | $ 2,496,574 | $ 2,419,247 | ||||||
Reserve for losses and loss expenses | 12,997,553 | 9,697,827 | 9,646,285 | $ 9,596,797 | |||||
Reinsurance recoverable on unpaid and paid losses | 3,338,840 | 2,334,922 | |||||||
Foreign exchange and other | (1,713,227) | 205,606 | 215,018 | ||||||
Net favorable (adverse) prior year reserve development | 200,054 | 292,377 | 243,048 | ||||||
Retroactive Reinsurance Recoverable | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Foreign exchange and other | 150,000 | ||||||||
Discontinued Operations, Disposed of by Means Other than Sale | |||||||||
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 | ||||||||
Aviabel | |||||||||
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 | ||||||||
Novae | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Interests acquired | 100.00% | ||||||||
Reserve for losses and loss expenses | 2,126,000 | ||||||||
Reinsurance recoverable on unpaid and paid losses | 788,000 | ||||||||
Reinsurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 151,085 | 236,472 | 219,601 | ||||||
Insurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 48,969 | 55,905 | 23,447 | ||||||
Short Tail Lines Insurance and Reinsurance Business | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 60,000 | 148,000 | 152,000 | ||||||
Professional Lines | Reinsurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 44,000 | 30,000 | 38,000 | ||||||
Professional Lines | Insurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 26,000 | 14,000 | (14,000) | ||||||
Credit and Surety | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 33,000 | 10,000 | 27,000 | ||||||
Credit and Political Risk | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | (15,000) | ||||||||
Motor Reserve Class | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 1,000 | 55,000 | 37,000 | ||||||
Short-Duration Contracts, Discounted Liabilities, Discount Rate | (0.75%) | 2.50% | |||||||
Liability Insurance Business | Reinsurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | 43,000 | 44,000 | 46,000 | ||||||
Liability Insurance Business | Insurance | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Net favorable (adverse) prior year reserve development | (8,000) | (8,000) | (27,000) | ||||||
Catastrophe and Weather-related Events | |||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||
Current year net loss and loss expenses | $ 835,000 | $ 204,000 | $ 100,000 |
RESERVE FOR LOSSES AND LOSS E90
RESERVE FOR LOSSES AND LOSS EXPENSES - Prior year development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | $ 200,054 | $ 292,377 | $ 243,048 |
Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | 48,969 | 55,905 | 23,447 |
Reinsurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | $ 151,085 | $ 236,472 | $ 219,601 |
RESERVE FOR LOSSES AND LOSS E91
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred claims and allocated claim adjustment expenses, net of reinsurance (Details) $ in Thousands | Dec. 31, 2017USD ($)claim | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) |
Aviabel | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 68,371 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 25,237 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 93,608 | |||||||||
Aviabel | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 998 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (293) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 705 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 30 | |||||||||
Cumulative Number of Reported Claims | claim | 1,066 | |||||||||
Aviabel | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 842 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 82 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 924 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 25 | |||||||||
Cumulative Number of Reported Claims | claim | 1,347 | |||||||||
Aviabel | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 1,516 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (39) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,477 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 46 | |||||||||
Cumulative Number of Reported Claims | claim | 1,452 | |||||||||
Aviabel | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 1,418 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (423) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 995 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 43 | |||||||||
Cumulative Number of Reported Claims | claim | 1,420 | |||||||||
Aviabel | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 5,248 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (1,066) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,183 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 177 | |||||||||
Cumulative Number of Reported Claims | claim | 1,380 | |||||||||
Aviabel | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 5,702 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 956 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,658 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 200 | |||||||||
Cumulative Number of Reported Claims | claim | 1,286 | |||||||||
Aviabel | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 10,589 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (1,636) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,953 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 804 | |||||||||
Cumulative Number of Reported Claims | claim | 1,373 | |||||||||
Aviabel | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 15,004 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | (1,575) | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,429 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 1,650 | |||||||||
Cumulative Number of Reported Claims | claim | 1,475 | |||||||||
Aviabel | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 19,388 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 2,134 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,522 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 4,278 | |||||||||
Cumulative Number of Reported Claims | claim | 1,535 | |||||||||
Aviabel | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 7,666 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 27,096 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,762 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 7,180 | |||||||||
Cumulative Number of Reported Claims | claim | 1,114 | |||||||||
Novae | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | $ 1,202,130 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 135,493 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,337,624 | |||||||||
Novae | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 20,515 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 20,515 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 3,552 | |||||||||
Novae | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 25,486 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 25,486 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 714 | |||||||||
Novae | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 23,308 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,308 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 2,781 | |||||||||
Novae | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 59,648 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 59,648 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 11,204 | |||||||||
Novae | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 87,292 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 87,292 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 8,695 | |||||||||
Novae | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 76,786 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 76,786 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 12,504 | |||||||||
Novae | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 123,955 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 123,955 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 17,024 | |||||||||
Novae | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 184,606 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 184,606 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 36,619 | |||||||||
Novae | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 307,014 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 0 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 307,014 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 54,356 | |||||||||
Novae | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Net claim and allocated claim adjustment expense reserves at the Acquisition Date | 293,520 | |||||||||
Net incurred claims and allocated claim adjustment expenses from the Acquisition Date to December 31, 2017 | 135,493 | |||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 429,013 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 222,330 | |||||||||
Insurance | Property and Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,807,431 | |||||||||
Insurance | Property and Other | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 216,806 | $ 217,846 | $ 218,851 | $ 220,616 | $ 225,007 | $ 226,472 | $ 242,139 | $ 251,722 | $ 260,206 | $ 312,164 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 982 | |||||||||
Cumulative Number of Reported Claims | claim | 1,573 | |||||||||
Insurance | Property and Other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 78,623 | 78,368 | 78,720 | 78,501 | 80,718 | 82,683 | 89,993 | 99,367 | 117,662 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 971 | |||||||||
Cumulative Number of Reported Claims | claim | 1,483 | |||||||||
Insurance | Property and Other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 115,289 | 115,740 | 116,020 | 116,888 | 122,472 | 147,881 | 155,343 | 175,554 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 687 | |||||||||
Cumulative Number of Reported Claims | claim | 2,310 | |||||||||
Insurance | Property and Other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 309,638 | 309,197 | 310,404 | 313,281 | 333,911 | 356,524 | 380,921 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 2,836 | |||||||||
Cumulative Number of Reported Claims | claim | 3,737 | |||||||||
Insurance | Property and Other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 418,869 | 424,475 | 428,524 | 448,763 | 472,088 | 461,790 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 9,739 | |||||||||
Cumulative Number of Reported Claims | claim | 27,701 | |||||||||
Insurance | Property and Other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 380,800 | 381,550 | 387,093 | 414,394 | 419,392 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 6,117 | |||||||||
Cumulative Number of Reported Claims | claim | 51,238 | |||||||||
Insurance | Property and Other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 417,691 | 436,130 | 459,996 | 463,732 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 6,539 | |||||||||
Cumulative Number of Reported Claims | claim | 60,151 | |||||||||
Insurance | Property and Other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 355,883 | 373,071 | 373,256 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 12,284 | |||||||||
Cumulative Number of Reported Claims | claim | 43,790 | |||||||||
Insurance | Property and Other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 574,267 | 523,086 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 40,961 | |||||||||
Cumulative Number of Reported Claims | claim | 66,488 | |||||||||
Insurance | Property and Other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 939,565 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 333,630 | |||||||||
Cumulative Number of Reported Claims | claim | 237,332 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 741,224 | |||||||||
Insurance | Marine | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 82,848 | 82,789 | 83,051 | 83,432 | 87,201 | 93,587 | 100,793 | 101,872 | 106,731 | 99,618 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 381 | |||||||||
Cumulative Number of Reported Claims | claim | 516 | |||||||||
Insurance | Marine | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 52,428 | 52,523 | 53,622 | 55,027 | 57,213 | 64,601 | 69,932 | 74,298 | 80,665 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 528 | |||||||||
Cumulative Number of Reported Claims | claim | 477 | |||||||||
Insurance | Marine | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 45,785 | 47,397 | 48,823 | 51,663 | 53,574 | 66,639 | 70,685 | 68,603 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 735 | |||||||||
Cumulative Number of Reported Claims | claim | 472 | |||||||||
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 68,008 | 65,919 | 65,707 | 65,697 | 72,463 | 78,611 | 90,659 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 1,549 | |||||||||
Cumulative Number of Reported Claims | claim | 603 | |||||||||
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 74,541 | 71,917 | 70,942 | 68,842 | 82,729 | 89,703 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 12,824 | |||||||||
Cumulative Number of Reported Claims | claim | 700 | |||||||||
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 83,064 | 97,777 | 96,722 | 101,276 | 80,034 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 4,121 | |||||||||
Cumulative Number of Reported Claims | claim | 733 | |||||||||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 44,439 | 48,471 | 44,562 | 59,665 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 7,167 | |||||||||
Cumulative Number of Reported Claims | claim | 799 | |||||||||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 136,608 | 139,931 | 158,697 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 16,023 | |||||||||
Cumulative Number of Reported Claims | claim | 915 | |||||||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 78,864 | 86,324 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 19,460 | |||||||||
Cumulative Number of Reported Claims | claim | 1,372 | |||||||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 74,639 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 48,739 | |||||||||
Cumulative Number of Reported Claims | claim | 1,772 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 169,650 | |||||||||
Insurance | Aviation | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,905 | 5,996 | 5,851 | 5,937 | 7,108 | 8,256 | 8,354 | 8,516 | 12,021 | 14,485 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 42 | |||||||||
Cumulative Number of Reported Claims | claim | 187 | |||||||||
Insurance | Aviation | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,388 | 14,661 | 15,494 | 16,674 | 16,974 | 18,146 | 18,800 | 14,608 | 17,505 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 68 | |||||||||
Cumulative Number of Reported Claims | claim | 317 | |||||||||
Insurance | Aviation | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 8,574 | 8,784 | 8,739 | 8,807 | 9,791 | 11,460 | 11,729 | 12,939 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 131 | |||||||||
Cumulative Number of Reported Claims | claim | 521 | |||||||||
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,257 | 7,290 | 8,437 | 9,568 | 12,791 | 15,400 | 17,725 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 218 | |||||||||
Cumulative Number of Reported Claims | claim | 734 | |||||||||
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 7,730 | 7,775 | 8,724 | 10,807 | 10,681 | 12,788 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 320 | |||||||||
Cumulative Number of Reported Claims | claim | 874 | |||||||||
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 15,579 | 15,264 | 15,221 | 16,344 | 15,656 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 542 | |||||||||
Cumulative Number of Reported Claims | claim | 1,027 | |||||||||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21,859 | 24,368 | 23,046 | 20,437 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 982 | |||||||||
Cumulative Number of Reported Claims | claim | 1,324 | |||||||||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 29,965 | 28,512 | 29,772 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 2,646 | |||||||||
Cumulative Number of Reported Claims | claim | 1,917 | |||||||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 33,641 | 29,178 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 5,145 | |||||||||
Cumulative Number of Reported Claims | claim | 1,692 | |||||||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 24,752 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 12,737 | |||||||||
Cumulative Number of Reported Claims | claim | 1,177 | |||||||||
Insurance | Credit and Political Risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 684,497 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 44,408 | 44,410 | 45,200 | 45,600 | 45,551 | 45,551 | 45,554 | 48,715 | 63,552 | 52,993 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 0 | |||||||||
Cumulative Number of Reported Claims | claim | 9 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 339,558 | 339,595 | 335,315 | 335,295 | 335,435 | 335,558 | 326,037 | 305,292 | 248,084 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 2,040 | |||||||||
Cumulative Number of Reported Claims | claim | 24 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 90,885 | 72,105 | 65,015 | 64,981 | 65,598 | 63,259 | 63,179 | 62,415 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 13,200 | |||||||||
Cumulative Number of Reported Claims | claim | 6 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 33,604 | 45,036 | 48,333 | 48,361 | 47,706 | 48,665 | 58,154 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 5,973 | |||||||||
Cumulative Number of Reported Claims | claim | 4 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47 | 10,322 | 12,447 | 12,435 | 15,672 | 32,602 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 5 | |||||||||
Cumulative Number of Reported Claims | claim | 4 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 14,941 | 9,880 | 9,759 | 25,684 | 26,439 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 6,662 | |||||||||
Cumulative Number of Reported Claims | claim | 1 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 68,321 | 67,109 | 70,713 | 38,825 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 10,466 | |||||||||
Cumulative Number of Reported Claims | claim | 6 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 27,513 | 30,368 | 30,329 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 4,215 | |||||||||
Cumulative Number of Reported Claims | claim | 2 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 43,983 | 47,250 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 20,194 | |||||||||
Cumulative Number of Reported Claims | claim | 1 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21,237 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 17,958 | |||||||||
Cumulative Number of Reported Claims | claim | 2 | |||||||||
Insurance | Professional Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 3,270,275 | |||||||||
Insurance | Professional Lines | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 325,573 | 326,192 | 327,240 | 329,458 | 309,642 | 296,499 | 298,905 | 280,842 | 278,691 | 238,550 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 9,175 | |||||||||
Cumulative Number of Reported Claims | claim | 4,558 | |||||||||
Insurance | Professional Lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 223,737 | 215,732 | 239,428 | 238,902 | 256,295 | 245,319 | 244,751 | 244,150 | 240,818 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 13,584 | |||||||||
Cumulative Number of Reported Claims | claim | 5,882 | |||||||||
Insurance | Professional Lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 168,632 | 181,232 | 158,946 | 182,713 | 205,801 | 234,334 | 236,578 | 231,232 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 26,396 | |||||||||
Cumulative Number of Reported Claims | claim | 5,669 | |||||||||
Insurance | Professional Lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 352,406 | 343,782 | 330,562 | 326,255 | 333,321 | 315,654 | 313,858 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 50,239 | |||||||||
Cumulative Number of Reported Claims | claim | 7,211 | |||||||||
Insurance | Professional Lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 366,725 | 364,423 | 376,604 | 377,277 | 375,557 | 329,769 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 70,219 | |||||||||
Cumulative Number of Reported Claims | claim | 8,279 | |||||||||
Insurance | Professional Lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 355,777 | 365,818 | 398,578 | 397,852 | 384,755 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 95,220 | |||||||||
Cumulative Number of Reported Claims | claim | 9,371 | |||||||||
Insurance | Professional Lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 394,470 | 423,087 | 412,288 | 411,690 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 157,747 | |||||||||
Cumulative Number of Reported Claims | claim | 9,650 | |||||||||
Insurance | Professional Lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 383,959 | 377,725 | 377,652 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 186,383 | |||||||||
Cumulative Number of Reported Claims | claim | 9,862 | |||||||||
Insurance | Professional Lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 352,414 | 349,268 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 220,770 | |||||||||
Cumulative Number of Reported Claims | claim | 10,728 | |||||||||
Insurance | Professional Lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 346,582 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 302,135 | |||||||||
Cumulative Number of Reported Claims | claim | 9,984 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,085,670 | |||||||||
Insurance | Liability | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 94,165 | 108,189 | 102,444 | 101,589 | 81,949 | 82,225 | 81,785 | 80,947 | 79,836 | 82,969 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 11,783 | |||||||||
Cumulative Number of Reported Claims | claim | 3,790 | |||||||||
Insurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 98,999 | 98,384 | 101,180 | 83,282 | 76,431 | 67,869 | 67,410 | 64,017 | 61,469 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 10,895 | |||||||||
Cumulative Number of Reported Claims | claim | 2,777 | |||||||||
Insurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 104,296 | 105,145 | 98,086 | 99,596 | 98,134 | 98,648 | 94,231 | 79,401 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 12,681 | |||||||||
Cumulative Number of Reported Claims | claim | 2,206 | |||||||||
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 82,128 | 83,731 | 85,243 | 87,060 | 83,118 | 75,329 | 72,584 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 19,227 | |||||||||
Cumulative Number of Reported Claims | claim | 1,788 | |||||||||
Insurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 75,342 | 68,181 | 70,770 | 73,282 | 70,645 | 70,877 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 27,824 | |||||||||
Cumulative Number of Reported Claims | claim | 1,240 | |||||||||
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 93,221 | 87,502 | 94,258 | 94,182 | 92,153 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 24,296 | |||||||||
Cumulative Number of Reported Claims | claim | 1,562 | |||||||||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 130,035 | 128,568 | 122,686 | 106,166 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 41,151 | |||||||||
Cumulative Number of Reported Claims | claim | 2,440 | |||||||||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 136,615 | 126,047 | 127,321 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 61,944 | |||||||||
Cumulative Number of Reported Claims | claim | 3,317 | |||||||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 129,225 | 123,259 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 90,482 | |||||||||
Cumulative Number of Reported Claims | claim | 3,811 | |||||||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 141,644 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 129,373 | |||||||||
Cumulative Number of Reported Claims | claim | 2,519 | |||||||||
Reinsurance | Property and Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 5,251,457 | |||||||||
Reinsurance | Property and Other | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 523,591 | 523,154 | 524,422 | 529,918 | 546,034 | 557,060 | 571,142 | 593,015 | 577,309 | 677,556 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | (224) | |||||||||
Reinsurance | Property and Other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 202,300 | 205,145 | 203,261 | 209,335 | 230,351 | 237,339 | 250,630 | 288,510 | 344,543 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 1,018 | |||||||||
Reinsurance | Property and Other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 581,616 | 583,563 | 591,331 | 597,427 | 594,238 | 580,601 | 610,563 | 619,241 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 4,587 | |||||||||
Reinsurance | Property and Other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,020,771 | 1,022,452 | 1,047,944 | 1,064,864 | 1,105,415 | 1,105,962 | 1,092,977 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 8,207 | |||||||||
Reinsurance | Property and Other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 394,332 | 399,193 | 415,327 | 445,932 | 456,173 | 488,776 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 6,544 | |||||||||
Reinsurance | Property and Other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 397,673 | 403,217 | 422,160 | 452,433 | 475,162 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 4,083 | |||||||||
Reinsurance | Property and Other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 438,815 | 448,887 | 461,961 | 441,147 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 45,519 | |||||||||
Reinsurance | Property and Other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 369,734 | 368,320 | 386,614 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 27,033 | |||||||||
Reinsurance | Property and Other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 452,169 | 452,342 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 96,090 | |||||||||
Reinsurance | Property and Other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 870,456 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 488,104 | |||||||||
Reinsurance | Professional Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,948,434 | |||||||||
Reinsurance | Professional Lines | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 169,515 | 172,937 | 173,217 | 174,286 | 173,316 | 176,767 | 178,530 | 182,587 | 183,064 | 176,166 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 6,938 | |||||||||
Reinsurance | Professional Lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 181,665 | 190,811 | 194,753 | 209,625 | 210,084 | 219,447 | 216,737 | 212,046 | 212,285 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 11,657 | |||||||||
Reinsurance | Professional Lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 180,219 | 189,880 | 197,548 | 215,043 | 215,298 | 212,359 | 211,397 | 211,273 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 24,929 | |||||||||
Reinsurance | Professional Lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 201,077 | 208,973 | 209,837 | 212,439 | 203,706 | 202,676 | 202,504 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 51,009 | |||||||||
Reinsurance | Professional Lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 213,601 | 223,492 | 224,737 | 222,600 | 217,184 | 210,612 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 75,647 | |||||||||
Reinsurance | Professional Lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 214,477 | 214,855 | 216,528 | 215,425 | 210,196 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 101,607 | |||||||||
Reinsurance | Professional Lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 219,968 | 219,960 | 219,966 | 219,927 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 85,643 | |||||||||
Reinsurance | Professional Lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 215,178 | 212,852 | 212,536 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 124,029 | |||||||||
Reinsurance | Professional Lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 196,852 | 195,527 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 140,194 | |||||||||
Reinsurance | Professional Lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 155,882 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 144,098 | |||||||||
Reinsurance | Credit and Surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,243,697 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 98,714 | 100,277 | 100,674 | 101,903 | 105,698 | 106,950 | 105,765 | 107,787 | 116,362 | 87,400 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 1,231 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 96,783 | 98,469 | 98,845 | 102,079 | 108,149 | 108,442 | 109,211 | 125,656 | 147,192 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 1,874 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 78,645 | 80,680 | 82,003 | 89,657 | 93,648 | 96,821 | 103,332 | 121,893 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 5,222 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 104,997 | 106,804 | 115,523 | 117,586 | 110,294 | 112,031 | 124,030 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 7,464 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 135,845 | 144,084 | 152,678 | 155,634 | 152,873 | 163,535 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 11,848 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,679 | 144,095 | 148,080 | 157,311 | 168,361 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 17,857 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 142,909 | 146,647 | 139,449 | 138,056 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 27,627 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 165,822 | 170,980 | 163,467 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 36,473 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 144,741 | 144,583 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 50,815 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 135,562 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 74,667 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,713,131 | |||||||||
Reinsurance | Motor | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 62,557 | 61,702 | 65,983 | 72,330 | 77,027 | 77,937 | 80,897 | 78,193 | 78,924 | 74,058 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 20,916 | |||||||||
Reinsurance | Motor | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 84,458 | 82,093 | 87,995 | 97,089 | 96,069 | 93,917 | 91,915 | 83,784 | 85,779 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 21,053 | |||||||||
Reinsurance | Motor | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 87,253 | 90,839 | 100,707 | 106,058 | 112,285 | 113,304 | 112,528 | 103,990 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 24,419 | |||||||||
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 150,818 | 161,958 | 171,007 | 175,021 | 168,734 | 164,579 | 160,444 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 33,732 | |||||||||
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 141,923 | 151,820 | 156,957 | 164,734 | 176,870 | 186,033 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 25,982 | |||||||||
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 143,186 | 146,799 | 156,692 | 168,554 | 169,876 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 26,041 | |||||||||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 185,570 | 188,725 | 193,691 | 190,363 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 24,003 | |||||||||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 233,172 | 229,110 | 231,614 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 37,198 | |||||||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 276,126 | 255,354 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 55,173 | |||||||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 348,068 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 170,065 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,912,565 | |||||||||
Reinsurance | Liability | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 86,008 | 95,649 | 106,942 | 111,873 | 133,917 | 139,564 | 141,553 | 141,152 | 140,460 | $ 140,069 |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 10,016 | |||||||||
Reinsurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 171,979 | 181,488 | 195,679 | 208,301 | 188,090 | 180,596 | 182,970 | 176,187 | $ 175,100 | |
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 23,215 | |||||||||
Reinsurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 166,533 | 182,794 | 192,051 | 202,649 | 184,180 | 183,773 | 172,261 | $ 173,358 | ||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 29,101 | |||||||||
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 196,277 | 196,948 | 200,190 | 193,228 | 175,279 | 173,815 | $ 174,125 | |||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 34,097 | |||||||||
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 172,124 | 174,765 | 173,596 | 168,956 | 164,742 | $ 168,641 | ||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 43,129 | |||||||||
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 185,321 | 185,689 | 183,683 | 177,606 | $ 173,966 | |||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 71,652 | |||||||||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 202,130 | 206,100 | 204,323 | $ 201,355 | ||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 91,483 | |||||||||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 217,480 | 216,518 | $ 216,076 | |||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 125,377 | |||||||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 247,768 | $ 241,952 | ||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | 171,869 | |||||||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 266,945 | |||||||||
Total of Incurred-But-Not-Reported Liabilities Plus Expected Development on Reported Claims | $ 226,036 |
RESERVE FOR LOSSES AND LOSS E92
RESERVE FOR LOSSES AND LOSS EXPENSES - Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 | Dec. 31, 2009 | Dec. 31, 2008 |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 9,654,715 | |||||||||
Aviabel | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,830 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 10,626 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 77,405 | |||||||||
Aviabel | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | (33) | |||||||||
Aviabel | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1 | |||||||||
Aviabel | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 97 | |||||||||
Aviabel | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 20 | |||||||||
Aviabel | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 661 | |||||||||
Aviabel | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 425 | |||||||||
Aviabel | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,944 | |||||||||
Aviabel | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,291 | |||||||||
Aviabel | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,453 | |||||||||
Aviabel | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 14,970 | |||||||||
Novae | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,427 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 102,164 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,300,361 | |||||||||
Novae | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,458 | |||||||||
Novae | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,147 | |||||||||
Novae | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 3,197 | |||||||||
Novae | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,332 | |||||||||
Novae | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,352 | |||||||||
Novae | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,878 | |||||||||
Novae | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12,370 | |||||||||
Novae | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,349 | |||||||||
Novae | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51,065 | |||||||||
Novae | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 33,278 | |||||||||
Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 3,331,536 | |||||||||
Insurance | Property and Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,930,352 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 3,875 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 880,954 | |||||||||
Insurance | Property and Other | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 214,663 | $ 215,071 | $ 215,121 | $ 215,628 | $ 213,569 | $ 211,002 | $ 184,038 | $ 172,320 | $ 150,470 | $ 76,558 |
Insurance | Property and Other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 77,466 | 77,187 | 76,865 | 74,636 | 73,538 | 72,622 | 68,768 | 60,166 | 31,379 | |
Insurance | Property and Other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 110,763 | 110,709 | 110,934 | 110,785 | 106,593 | 95,747 | 87,059 | 48,624 | ||
Insurance | Property and Other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 299,248 | 298,559 | 298,766 | 299,567 | 277,260 | 217,578 | 87,525 | |||
Insurance | Property and Other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 379,696 | 374,485 | 366,854 | 343,503 | 278,870 | 107,358 | ||||
Insurance | Property and Other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 372,338 | 361,209 | 347,531 | 304,207 | 129,157 | |||||
Insurance | Property and Other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 401,482 | 393,868 | 341,023 | 169,961 | ||||||
Insurance | Property and Other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 317,850 | 281,377 | 123,126 | |||||||
Insurance | Property and Other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 442,007 | 174,455 | ||||||||
Insurance | Property and Other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 314,839 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 536,047 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 8,213 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 213,390 | |||||||||
Insurance | Marine | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 82,344 | 82,339 | 82,259 | 82,128 | 82,043 | 78,313 | 77,203 | 69,114 | 52,697 | 14,357 |
Insurance | Marine | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 49,060 | 48,712 | 48,430 | 45,896 | 45,286 | 43,243 | 39,699 | 30,364 | 17,431 | |
Insurance | Marine | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 43,587 | 47,088 | 46,150 | 45,373 | 42,554 | 33,392 | 28,771 | 18,062 | ||
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 64,750 | 60,523 | 59,816 | 57,972 | 54,874 | 44,168 | 26,417 | |||
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 52,833 | 50,448 | 49,631 | 44,858 | 38,560 | 10,730 | ||||
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 66,326 | 63,637 | 55,414 | 44,437 | 19,313 | |||||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26,977 | 26,831 | 15,277 | 6,363 | ||||||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 108,071 | 54,845 | 21,467 | |||||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32,038 | 12,497 | ||||||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 10,061 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 114,861 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 1,611 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 56,400 | |||||||||
Insurance | Aviation | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 5,519 | 5,526 | 5,269 | 4,663 | 4,487 | 4,216 | 3,666 | 3,084 | 2,063 | 488 |
Insurance | Aviation | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,547 | 13,755 | 14,258 | 14,322 | 13,957 | 12,834 | 7,071 | 3,628 | 2,118 | |
Insurance | Aviation | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 8,247 | 8,152 | 7,708 | 7,586 | 6,920 | 6,341 | 4,156 | 1,053 | ||
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,056 | 5,826 | 5,576 | 5,040 | 4,521 | 2,830 | 639 | |||
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 7,070 | 6,836 | 5,958 | 4,159 | 2,868 | 957 | ||||
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,551 | 11,462 | 9,757 | 7,336 | 4,402 | |||||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 13,914 | 11,706 | 8,033 | 3,989 | ||||||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21,095 | 16,177 | 8,090 | |||||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,403 | 10,421 | ||||||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 6,459 | |||||||||
Insurance | Credit and Political Risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 631,553 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | (1,475) | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 51,469 | |||||||||
Insurance | Credit and Political Risk | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 44,161 | 44,410 | 44,410 | 44,410 | 45,379 | 45,379 | 45,638 | 45,625 | 69,217 | 0 |
Insurance | Credit and Political Risk | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 340,809 | 345,592 | 345,545 | 345,545 | 341,600 | 346,243 | 346,267 | 344,658 | 92,844 | |
Insurance | Credit and Political Risk | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 102,200 | 102,158 | 101,952 | 101,790 | 106,769 | 90,729 | 85,418 | 50,000 | ||
Insurance | Credit and Political Risk | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27,631 | 27,636 | 27,636 | 27,636 | 27,636 | 37,205 | 32,788 | |||
Insurance | Credit and Political Risk | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42 | 40 | 0 | 0 | 0 | 0 | ||||
Insurance | Credit and Political Risk | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 11,768 | 5,216 | 3,726 | 2,235 | 745 | |||||
Insurance | Credit and Political Risk | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 57,855 | 61,108 | 39,952 | 1,924 | ||||||
Insurance | Credit and Political Risk | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,298 | 23,309 | 0 | |||||||
Insurance | Credit and Political Risk | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,789 | 0 | ||||||||
Insurance | Credit and Political Risk | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 0 | |||||||||
Insurance | Professional Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,741,257 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 30,546 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,559,564 | |||||||||
Insurance | Professional Lines | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 268,487 | 267,611 | 249,321 | 214,481 | 189,339 | 167,828 | 124,681 | 68,197 | 22,325 | 4,068 |
Insurance | Professional Lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 179,770 | 167,129 | 127,033 | 107,421 | 97,061 | 69,050 | 44,312 | 20,670 | 1,689 | |
Insurance | Professional Lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 115,204 | 110,156 | 99,554 | 89,051 | 72,840 | 53,738 | 27,880 | 7,857 | ||
Insurance | Professional Lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 283,718 | 238,523 | 165,755 | 108,470 | 74,224 | 32,351 | 6,782 | |||
Insurance | Professional Lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 255,140 | 231,963 | 185,059 | 100,526 | 41,545 | 7,824 | ||||
Insurance | Professional Lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 214,534 | 176,899 | 130,342 | 73,334 | 17,739 | |||||
Insurance | Professional Lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 194,294 | 131,610 | 71,510 | 23,665 | ||||||
Insurance | Professional Lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 138,967 | 68,400 | 20,403 | |||||||
Insurance | Professional Lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71,619 | 16,010 | ||||||||
Insurance | Professional Lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 19,524 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 560,061 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 44,150 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 569,759 | |||||||||
Insurance | Liability | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 87,159 | 61,618 | 55,314 | 51,776 | 47,447 | 37,408 | 27,861 | 18,507 | 8,796 | 1,906 |
Insurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 84,427 | 83,991 | 44,105 | 41,323 | 31,865 | 26,754 | 13,305 | 4,646 | 726 | |
Insurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 86,471 | 71,814 | 66,140 | 61,055 | 53,604 | 30,809 | 15,986 | 1,029 | ||
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60,263 | 54,996 | 46,074 | 38,377 | 20,190 | 10,540 | 2,761 | |||
Insurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42,745 | 37,140 | 30,146 | 15,412 | 5,515 | 1,631 | ||||
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60,021 | 42,055 | 33,324 | 23,285 | 2,363 | |||||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71,630 | 49,858 | 18,662 | 1,419 | ||||||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39,767 | 22,474 | 5,439 | |||||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 23,335 | 6,332 | ||||||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,243 | |||||||||
Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 4,945,413 | |||||||||
Reinsurance | Property and Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4,037,613 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 6,225 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,220,069 | |||||||||
Reinsurance | Property and Other | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 517,657 | 519,391 | 519,711 | 514,765 | 514,696 | 510,305 | 497,078 | 444,047 | 316,280 | 158,206 |
Reinsurance | Property and Other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 193,973 | 197,310 | 195,614 | 192,746 | 193,309 | 182,556 | 164,047 | 132,309 | 57,796 | |
Reinsurance | Property and Other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 551,588 | 546,253 | 521,377 | 491,817 | 444,822 | 412,731 | 318,198 | 119,385 | ||
Reinsurance | Property and Other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 991,307 | 976,120 | 902,188 | 872,086 | 769,142 | 561,377 | 242,494 | |||
Reinsurance | Property and Other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 351,558 | 341,925 | 327,361 | 305,020 | 231,961 | 93,847 | ||||
Reinsurance | Property and Other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 374,944 | 365,089 | 336,940 | 223,666 | 55,047 | |||||
Reinsurance | Property and Other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 369,000 | 351,496 | 274,886 | 65,848 | ||||||
Reinsurance | Property and Other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 282,967 | 190,057 | 48,116 | |||||||
Reinsurance | Property and Other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 231,682 | 78,916 | ||||||||
Reinsurance | Property and Other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 172,937 | |||||||||
Reinsurance | Credit and Surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 878,286 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 10,351 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 375,762 | |||||||||
Reinsurance | Credit and Surety | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 94,601 | 94,446 | 94,040 | 93,282 | 91,014 | 88,604 | 86,796 | 71,501 | 70,349 | 20,891 |
Reinsurance | Credit and Surety | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 89,986 | 89,894 | 89,921 | 89,736 | 87,079 | 83,138 | 80,744 | 78,254 | 32,888 | |
Reinsurance | Credit and Surety | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 68,294 | 67,252 | 65,722 | 64,455 | 62,586 | 61,983 | 50,148 | 28,387 | ||
Reinsurance | Credit and Surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 91,307 | 88,944 | 86,653 | 82,015 | 74,037 | 56,106 | 22,640 | |||
Reinsurance | Credit and Surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 114,251 | 112,423 | 108,858 | 102,976 | 88,092 | 50,516 | ||||
Reinsurance | Credit and Surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 108,839 | 101,104 | 94,347 | 78,976 | 32,708 | |||||
Reinsurance | Credit and Surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 97,957 | 88,668 | 62,900 | 35,839 | ||||||
Reinsurance | Credit and Surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 103,123 | 84,077 | 33,064 | |||||||
Reinsurance | Credit and Surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 75,170 | 42,348 | ||||||||
Reinsurance | Credit and Surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 34,758 | |||||||||
Reinsurance | Professional Lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 863,782 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 34,882 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,119,534 | |||||||||
Reinsurance | Professional Lines | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 139,917 | 133,596 | 124,658 | 109,093 | 92,320 | 70,815 | 49,393 | 21,736 | 6,465 | 373 |
Reinsurance | Professional Lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 143,634 | 138,823 | 128,608 | 108,787 | 83,946 | 63,180 | 32,327 | 8,589 | 914 | |
Reinsurance | Professional Lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 130,837 | 124,158 | 107,534 | 76,931 | 52,187 | 31,269 | 12,037 | 1,759 | ||
Reinsurance | Professional Lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 120,076 | 103,309 | 85,052 | 57,402 | 30,326 | 11,829 | 1,506 | |||
Reinsurance | Professional Lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 107,581 | 86,211 | 53,801 | 29,730 | 10,441 | 780 | ||||
Reinsurance | Professional Lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 81,940 | 65,195 | 30,666 | 12,121 | 1,068 | |||||
Reinsurance | Professional Lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 74,748 | 48,930 | 13,085 | 2,020 | ||||||
Reinsurance | Professional Lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 41,610 | 13,507 | 3,134 | |||||||
Reinsurance | Professional Lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 20,624 | 1,782 | ||||||||
Reinsurance | Professional Lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 2,815 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 760,256 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 129,548 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,082,423 | |||||||||
Reinsurance | Motor | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 17,657 | 17,231 | 15,570 | 14,897 | 12,088 | 9,491 | 7,910 | 6,625 | 6,371 | 3,093 |
Reinsurance | Motor | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 30,378 | 27,248 | 22,446 | 20,029 | 13,627 | 10,020 | 8,428 | 7,134 | 2,819 | |
Reinsurance | Motor | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35,444 | 34,342 | 30,942 | 26,489 | 22,873 | 19,189 | 13,316 | 7,406 | ||
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 90,871 | 85,995 | 79,729 | 72,663 | 61,691 | 46,277 | 21,274 | |||
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 91,896 | 87,658 | 80,891 | 70,634 | 55,282 | 29,727 | ||||
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 87,407 | 81,419 | 70,849 | 56,009 | 34,607 | |||||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 107,090 | 98,483 | 77,736 | 44,225 | ||||||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118,902 | 97,495 | 58,884 | |||||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 109,559 | 61,938 | ||||||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 71,052 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 807,122 | |||||||||
All outstanding liabilities before 2008, net of reinsurance | 42,182 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,147,625 | |||||||||
Reinsurance | Liability | Accident Year 2008 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 63,903 | 58,022 | 53,882 | 51,922 | 43,509 | 36,567 | 30,028 | 21,953 | 9,952 | $ 2,160 |
Reinsurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 135,031 | 129,644 | 125,329 | 105,410 | 73,521 | 56,730 | 44,552 | 17,104 | $ 1,705 | |
Reinsurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 119,872 | 108,938 | 97,617 | 83,976 | 62,300 | 46,207 | 17,659 | $ 2,484 | ||
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 123,719 | 112,581 | 92,696 | 70,283 | 40,021 | 21,297 | $ 5,191 | |||
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 101,343 | 78,368 | 58,855 | 28,418 | 12,809 | $ 3,542 | ||||
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 88,327 | 69,098 | 52,360 | 22,259 | $ 5,978 | |||||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 70,389 | 48,498 | 28,699 | $ 7,117 | ||||||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 54,646 | 27,473 | $ 7,273 | |||||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 37,819 | $ 11,891 | ||||||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12,073 |
RESERVE FOR LOSSES AND LOSS E93
RESERVE FOR LOSSES AND LOSS EXPENSES - Average annual percentage payout of incurred claims by age, net of reinsurance (Details) | Dec. 31, 2017 |
Insurance | Property and Other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 34.40% |
Year 2 | 40.60% |
Year 3 | 12.20% |
Year 4 | 5.40% |
Year 5 | 3.60% |
Year 6 | 0.80% |
Year 7 | 0.90% |
Year 8 | 0.10% |
Year 9 | 0.20% |
Year 10 | (0.20%) |
Insurance | Marine | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 22.60% |
Year 2 | 28.60% |
Year 3 | 18.80% |
Year 4 | 8.30% |
Year 5 | 3.10% |
Year 6 | 2.30% |
Year 7 | 3.30% |
Year 8 | (2.30%) |
Year 9 | 0.40% |
Year 10 | 0.00% |
Insurance | Aviation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 18.70% |
Year 2 | 24.40% |
Year 3 | 19.40% |
Year 4 | 15.50% |
Year 5 | 9.50% |
Year 6 | 3.00% |
Year 7 | 2.80% |
Year 8 | 2.60% |
Year 9 | 1.50% |
Year 10 | (0.10%) |
Insurance | Credit and Political Risk | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 18.80% |
Year 2 | 54.10% |
Year 3 | (4.30%) |
Year 4 | 3.30% |
Year 5 | 20.30% |
Year 6 | 1.10% |
Year 7 | (0.50%) |
Year 8 | 0.00% |
Year 9 | (0.70%) |
Year 10 | (0.60%) |
Insurance | Professional Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 3.70% |
Year 2 | 10.90% |
Year 3 | 14.70% |
Year 4 | 14.50% |
Year 5 | 12.50% |
Year 6 | 8.90% |
Year 7 | 8.90% |
Year 8 | 10.50% |
Year 9 | 5.60% |
Year 10 | 0.30% |
Insurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 2.50% |
Year 2 | 11.30% |
Year 3 | 13.20% |
Year 4 | 16.20% |
Year 5 | 10.10% |
Year 6 | 8.70% |
Year 7 | 4.80% |
Year 8 | 19.40% |
Year 9 | 3.60% |
Year 10 | 27.10% |
Reinsurance | Property and Other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 20.60% |
Year 2 | 36.60% |
Year 3 | 20.80% |
Year 4 | 7.40% |
Year 5 | 4.20% |
Year 6 | 3.00% |
Year 7 | 1.80% |
Year 8 | 0.90% |
Year 9 | (0.90%) |
Year 10 | (0.30%) |
Reinsurance | Credit and Surety | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 27.30% |
Year 2 | 32.20% |
Year 3 | 10.90% |
Year 4 | 6.00% |
Year 5 | 3.50% |
Year 6 | 2.00% |
Year 7 | 1.70% |
Year 8 | 0.70% |
Year 9 | 0.30% |
Year 10 | 0.20% |
Reinsurance | Professional Lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 0.80% |
Year 2 | 5.30% |
Year 3 | 11.10% |
Year 4 | 13.90% |
Year 5 | 12.40% |
Year 6 | 12.50% |
Year 7 | 9.60% |
Year 8 | 6.20% |
Year 9 | 4.00% |
Year 10 | 3.70% |
Reinsurance | Motor | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 16.80% |
Year 2 | 13.20% |
Year 3 | 7.60% |
Year 4 | 5.00% |
Year 5 | 4.10% |
Year 6 | 4.80% |
Year 7 | 3.60% |
Year 8 | 2.70% |
Year 9 | 3.20% |
Year 10 | 0.70% |
Reinsurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 2.90% |
Year 2 | 8.90% |
Year 3 | 13.00% |
Year 4 | 11.30% |
Year 5 | 10.60% |
Year 6 | 11.60% |
Year 7 | 8.50% |
Year 8 | 3.80% |
Year 9 | 4.00% |
Year 10 | 6.80% |
RESERVE FOR LOSSES AND LOSS E94
RESERVE FOR LOSSES AND LOSS EXPENSES - Reconciliation of development tables to consolidated balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 9,654,715 | |||
Reinsurance recoverable on unpaid claims | 3,159,514 | |||
Gross outstanding liabilities | 12,814,229 | |||
Unallocated claims adjustment expenses | 170,168 | |||
Foreign exchange and other | (45,262) | |||
Assumed reserves related to retroactive transactions | 58,418 | |||
Reserve for losses and loss expenses | 12,997,553 | $ 9,697,827 | $ 9,646,285 | $ 9,596,797 |
Aviabel | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 77,405 | |||
Reinsurance recoverable on unpaid claims | 5,329 | |||
Gross outstanding liabilities | 82,734 | |||
Novae | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,300,361 | |||
Reinsurance recoverable on unpaid claims | 771,258 | |||
Gross outstanding liabilities | 2,071,619 | |||
Insurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 3,331,536 | |||
Reinsurance recoverable on unpaid claims | 2,047,292 | |||
Gross outstanding liabilities | 5,378,828 | |||
Insurance | Property and Other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 880,954 | |||
Reinsurance recoverable on unpaid claims | 181,101 | |||
Gross outstanding liabilities | 1,062,055 | |||
Insurance | Marine | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 213,390 | |||
Reinsurance recoverable on unpaid claims | 106,466 | |||
Gross outstanding liabilities | 319,856 | |||
Insurance | Aviation | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 56,400 | |||
Reinsurance recoverable on unpaid claims | 8,945 | |||
Gross outstanding liabilities | 65,345 | |||
Insurance | Credit and Political Risk | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 51,469 | |||
Reinsurance recoverable on unpaid claims | 1,384 | |||
Gross outstanding liabilities | 52,853 | |||
Insurance | Professional Lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,559,564 | |||
Reinsurance recoverable on unpaid claims | 853,130 | |||
Gross outstanding liabilities | 2,412,694 | |||
Insurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 569,759 | |||
Reinsurance recoverable on unpaid claims | 896,266 | |||
Gross outstanding liabilities | 1,466,025 | |||
Reinsurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 4,945,413 | |||
Reinsurance recoverable on unpaid claims | 335,635 | |||
Gross outstanding liabilities | 5,281,048 | |||
Reinsurance | Property and Other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,220,069 | |||
Reinsurance recoverable on unpaid claims | 214,394 | |||
Gross outstanding liabilities | 1,434,463 | |||
Reinsurance | Credit and Surety | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 375,762 | |||
Reinsurance recoverable on unpaid claims | 13,061 | |||
Gross outstanding liabilities | 388,823 | |||
Reinsurance | Professional Lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,119,534 | |||
Reinsurance recoverable on unpaid claims | 37,822 | |||
Gross outstanding liabilities | 1,157,356 | |||
Reinsurance | Motor | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,082,423 | |||
Reinsurance recoverable on unpaid claims | 3,666 | |||
Gross outstanding liabilities | 1,086,089 | |||
Reinsurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,147,625 | |||
Reinsurance recoverable on unpaid claims | 66,692 | |||
Gross outstanding liabilities | $ 1,214,317 |
REINSURANCE (Details)
REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Premiums written | |||||||||||
Gross | $ 5,556,273 | $ 4,970,208 | $ 4,603,730 | ||||||||
Ceded | (1,529,130) | (1,217,234) | (929,064) | ||||||||
Net | 4,027,143 | 3,752,974 | 3,674,666 | ||||||||
Premiums earned | |||||||||||
Gross | 5,616,234 | 4,762,394 | 4,567,953 | ||||||||
Ceded | (1,467,474) | (1,056,769) | (881,536) | ||||||||
Net | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 921,879 | $ 934,415 | $ 946,990 | $ 902,340 | 4,148,760 | 3,705,625 | 3,686,417 |
Reinsurance receivables: | |||||||||||
Ceded losses and loss expenses | (1,010,000) | (556,000) | $ (577,000) | ||||||||
Provision for unrecoverable reinsurance | $ (17,000) | $ (20,000) | $ (17,000) | $ (20,000) | |||||||
AM Best A minus Or Better Rating | Gross Reinsurance Recoverable | |||||||||||
Concentration Risk [Line Items] | |||||||||||
Percentage of gross reinsurance recoverables collectible from reinsurers rated A- or better by A.M. Best | 88.80% | 96.70% |
DEBT AND FINANCING ARRANGEMEN96
DEBT AND FINANCING ARRANGEMENTS - Senior and Notes payable, Dekania Notes (Details) - USD ($) | Dec. 06, 2017 | Mar. 13, 2014 | Mar. 23, 2010 | Sep. 29, 2004 | Jun. 30, 2004 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 27, 2017 |
Senior notes [Line Items] | |||||||||
Net proceeds from issuance of debt | $ 346,362,000 | $ 0 | $ 0 | ||||||
Senior Notes | |||||||||
Senior notes [Line Items] | |||||||||
Interest Expense | 51,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||||||
Interest rate | 5.875% | ||||||||
Issue price (percentage of face amount) | 99.624% | ||||||||
Net proceeds from issuance of debt | $ 495,000,000 | ||||||||
Senior Notes | Senior Notes Due 2019 Axis Specialty Finance PLC 2014 | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 250,000,000 | ||||||||
Interest rate | 2.65% | ||||||||
Issue price (percentage of face amount) | 99.896% | ||||||||
Net proceeds from issuance of debt | $ 248,000,000 | ||||||||
Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 250,000,000 | ||||||||
Interest rate | 5.15% | ||||||||
Issue price (percentage of face amount) | 99.474% | ||||||||
Net proceeds from issuance of debt | $ 246,000,000 | ||||||||
Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 350,000,000 | ||||||||
Interest rate | 4.00% | ||||||||
Issue price (percentage of face amount) | 99.78% | ||||||||
Net proceeds from issuance of debt | $ 347,000,000 | ||||||||
Senior Notes | Senior Notes Due 2027 Axis Specialty Finance PLC 2017 | |||||||||
Senior notes [Line Items] | |||||||||
Interest rate | 4.00% | ||||||||
Subordinated Debt | |||||||||
Senior notes [Line Items] | |||||||||
Net proceeds from issuance of debt | $ 35,000,000 | ||||||||
Interest Expense | $ 2,000,000 | ||||||||
Subordinated Debt | Dekania Notes, 15 Million | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | 15,000,000 | ||||||||
Subordinated Debt | Dekania Notes, 11 Million | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 11,000,000 | ||||||||
Subordinated Debt | Dekania Notes, 10 Million | |||||||||
Senior notes [Line Items] | |||||||||
Face amount | $ 10,000,000 | ||||||||
AXIS Specialty Finance LLC | |||||||||
Senior notes [Line Items] | |||||||||
Percentage ownership in subsidiary | 100.00% | ||||||||
AXIS Specialty Finance PLC | |||||||||
Senior notes [Line Items] | |||||||||
Percentage ownership in subsidiary | 100.00% | ||||||||
London Interbank Offered Rate (LIBOR) | Subordinated Debt | Dekania Notes, 15 Million | |||||||||
Senior notes [Line Items] | |||||||||
Basis spread on variable rate | 3.50% | ||||||||
London Interbank Offered Rate (LIBOR) | Subordinated Debt | Dekania Notes, 11 Million | |||||||||
Senior notes [Line Items] | |||||||||
Basis spread on variable rate | 4.05% | ||||||||
London Interbank Offered Rate (LIBOR) | Subordinated Debt | Dekania Notes, 10 Million | |||||||||
Senior notes [Line Items] | |||||||||
Basis spread on variable rate | 3.50% |
DEBT AND FINANCING ARRANGEMEN97
DEBT AND FINANCING ARRANGEMENTS - Debt maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Scheduled debt maturity | ||
2,018 | $ 0 | |
2,019 | 250,000 | |
2,020 | 500,000 | |
2,021 | 0 | |
2,022 | 0 | |
After 2,022 | 636,060 | |
Unamortized discount and debt issuance expenses | (9,531) | |
Total senior notes and notes payable | $ 1,376,529 | $ 992,950 |
DEBT AND FINANCING ARRANGEMEN98
DEBT AND FINANCING ARRANGEMENTS - Credit facilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Mar. 27, 2017 | Mar. 26, 2017 | Aug. 02, 2016 | Mar. 31, 2015 | Mar. 30, 2015 |
Letter of Credit Facility | Citibank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 500,000,000 | $ 750,000,000 | |||||||
LOC Facility term | 4 years | ||||||||
Letters of credit outstanding | $ 387,000,000 | ||||||||
Revolving Credit Facility | Syndication Of Lenders | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Potential increase in maximum capacity | 150,000,000 | ||||||||
Credit Agreement | Letter of Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 250,000,000 | ||||||||
LOC Facility | Letter of Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 250,000,000 | ||||||||
Novae Syndicated Bank Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest Expense | 1,000,000 | ||||||||
Novae Syndicated Bank Facility [Member] | Letter Of Credit And Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 229,350,400 | ||||||||
Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest Expense | 51,000,000 | $ 50,000,000 | $ 50,000,000 | ||||||
Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||||||
Term Loan [Member] | Novae Syndicated Bank Facility [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 67,000,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Cash and investments (Details) | Dec. 31, 2017 |
Commitments and Contingencies Disclosure [Abstract] | |
Fixed maturity portfolio - corporate issuer concentration limit above A- | 2.00% |
Fixed maturity portfolio - corporate issuer concentration limit below A- | 1.00% |
COMMITMENTS AND CONTINGENCIE100
COMMITMENTS AND CONTINGENCIES - Reinsurance and premiums (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)broker | Dec. 31, 2016USD ($) | Dec. 31, 2015 | |
Concentration Risk [Line Items] | |||
Premiums receivable allowance for doubtful accounts | $ 6,000,000 | $ 2,000,000 | |
Premiums receivable, bad debt expense charges | $ 0 | $ 1,000,000 | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 1 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 12.00% | 13.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 2 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 11.00% | 10.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 3 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 7.00% | 9.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Top Ten Reinsurers | AM Best, A plus Rating | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 56.00% | 67.00% | |
Gross Premiums Written | Customer Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 49.00% | 52.00% | 53.00% |
Concentration risk, number of brokers exceeding threshold | broker | 3 | ||
Gross Premiums Written | Customer Concentration | Marsh & McLennan Companies Inc. | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 20.00% | 21.00% | 22.00% |
Gross Premiums Written | Customer Concentration | Aon plc | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 17.00% | 19.00% | 18.00% |
Gross Premiums Written | Customer Concentration | Willis Towers Watson PLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 12.00% | 12.00% | 13.00% |
COMMITMENTS AND CONTINGENCIE101
COMMITMENTS AND CONTINGENCIES - Lease commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense related to operating leases | $ 29,000 | $ 25,000 | $ 28,000 |
Office Space | |||
Future minimum lease payments under operating leases [Line Items] | |||
2,018 | 27,777 | ||
2,019 | 26,514 | ||
2,020 | 22,661 | ||
2,021 | 23,817 | ||
2,022 | 22,745 | ||
Later years | 84,606 | ||
Total future minimum lease payments | $ 208,120 |
COMMITMENTS AND CONTINGENCIE102
COMMITMENTS AND CONTINGENCIES - Reinsurance purchase commitment and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unfunded commitments related to other investments | $ 414,000 | $ 401,000 |
Funds at Lloyd's | 1,192,717 | 382,611 |
Collateral in Trust for third party agreements | 2,085,443 | 508,262 |
CMBS | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Purchase commitment | 16,000 | 2,000 |
Lloyd's | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Collateral in Trust for third party agreements | $ 1,200,000 | $ 383,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 20, 2015 | Aug. 31, 2015 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Jan. 15, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Basic earnings (loss) per common share | |||||||||||||||
Net income (loss) | $ (368,969) | $ 513,368 | $ 641,631 | ||||||||||||
Less: Preferred share dividends | 46,810 | 46,597 | 40,069 | ||||||||||||
Less: Loss on repurchase of preferred shares | 0 | 1,309 | 0 | ||||||||||||
Net income (loss) available to common shareholders | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 130,912 | $ 176,644 | $ 119,491 | $ 38,417 | $ (415,779) | $ 465,462 | $ 601,562 | ||||
Weighted average common shares outstanding - basic (in shares) | 84,108,000 | 90,772,000 | 98,609,000 | ||||||||||||
Basic earnings per common share (in dollars per share) | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 1.50 | $ 1.97 | $ 1.30 | $ 0.41 | $ (4.94) | $ 5.13 | $ 6.10 | ||||
Diluted basic earnings (loss) per common share | |||||||||||||||
Net income (loss) available to common shareholders | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 130,912 | $ 176,644 | $ 119,491 | $ 38,417 | $ (415,779) | $ 465,462 | $ 601,562 | ||||
Weighted average common shares outstanding - basic (in shares) | 84,108,000 | 90,772,000 | 98,609,000 | ||||||||||||
Share-based compensation plans (in shares) | 0 | 775,000 | 1,020,000 | ||||||||||||
Weighted average common shares outstanding - diluted (in shares) | 84,108,000 | 91,547,000 | 99,629,000 | ||||||||||||
Diluted earnings per common share (in dollars per share) | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 1.48 | $ 1.96 | $ 1.29 | $ 0.41 | $ (4.94) | $ 5.08 | $ 6.04 | ||||
Weighted average anti-dilutive shares excluded from the dilutive computation (in shares) | 702,000 | 170,000 | 165,000 | ||||||||||||
Accelerated Share Repurchase Agreement August 17 2015 | |||||||||||||||
Accelerated Share Repurchases [Line Items] | |||||||||||||||
Shares repurchased (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 | 1,358,380 | 4,149,378 |
SHAREHOLDERS' EQUITY - Common
SHAREHOLDERS' EQUITY - Common shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Class of Stock [Line Items] | |||
Authorized share capital, common (in shares) | 800,000,000 | 800,000,000 | |
Par value per share, common (in usd per share) | $ 0.0125 | $ 0.0125 | |
Common Shares Issued and Outstanding [Roll Forward] | |||
Shares issued, balance at beginning of year (in shares) | 176,580,000 | ||
Total shares issued at end of year (in shares) | 176,580,000 | 176,580,000 | |
Treasury Shares Issued and Outstanding [Roll Forward] | |||
Treasury shares, balance at beginning of year (in shares) | (90,139,000) | ||
Total treasury shares at end of year (in shares) | (93,419,000) | (90,139,000) | |
Total shares outstanding (in shares) | 83,161,000 | 86,441,000 | |
Cash dividends declared per common share (in usd per share) | $ 1.53 | $ 1.43 | $ 1.22 |
Common stocks | |||
Common Shares Issued and Outstanding [Roll Forward] | |||
Shares issued, balance at beginning of year (in shares) | 176,580,000 | 176,240,000 | 175,478,000 |
Shares issued (in shares) | 0 | 340,000 | 762,000 |
Total shares issued at end of year (in shares) | 176,580,000 | 176,580,000 | 176,240,000 |
Treasury Shares Issued and Outstanding [Roll Forward] | |||
Treasury shares, balance at beginning of year (in shares) | (90,139,000) | (80,174,000) | (76,052,000) |
Shares repurchased (in shares) | (4,288,000) | (10,508,000) | (4,616,000) |
Shares reissued from treasury (in shares) | 1,008,000 | 543,000 | 494,000 |
Total treasury shares at end of year (in shares) | (93,419,000) | (90,139,000) | (80,174,000) |
Total shares outstanding (in shares) | 83,161,000 | 86,441,000 | 96,066,000 |
SHAREHOLDERS' EQUITY - Share r
SHAREHOLDERS' EQUITY - Share repurchase activities (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 20, 2015 | Aug. 31, 2015 | Jan. 15, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Accelerated Share Repurchase Agreement August 17 2015 | |||||||
Treasury Shares [Line Items] | |||||||
Total shares (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 | 1,358,380 | 4,149,378 | |
Total cost | $ 300,000 | ||||||
Average price per share (in usd per share) | $ 54.47 | ||||||
Common stocks | |||||||
Treasury Shares [Line Items] | |||||||
Total shares (in shares) | 4,288,000 | 10,508,000 | 4,616,000 | ||||
Total cost | $ 285,858 | $ 571,805 | $ 264,538 | ||||
Average price per share (in usd per share) | $ 66.67 | $ 54.42 | $ 57.32 | ||||
Common stocks | In the open market | |||||||
Treasury Shares [Line Items] | |||||||
Total shares (in shares) | 3,932,000 | 10,241,000 | 4,264,000 | ||||
Total cost | $ 261,180 | $ 557,476 | $ 246,490 | ||||
Average price per share (in usd per share) | $ 66.43 | $ 54.44 | $ 57.80 | ||||
Common stocks | From employees | |||||||
Treasury Shares [Line Items] | |||||||
Total shares (in shares) | 356,000 | 267,000 | 352,000 | ||||
Total cost | $ 24,678 | $ 14,329 | $ 18,048 | ||||
Average price per share (in usd per share) | $ 69.36 | $ 53.74 | $ 51.34 |
SHAREHOLDERS' EQUITY - Acceler
SHAREHOLDERS' EQUITY - Accelerated share repurchase program (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 20, 2015 | Aug. 31, 2015 | Jan. 15, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 285,858 | $ 571,805 | $ 264,538 | ||||
Additional paid-in capital | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 0 | $ (60,000) | $ 60,000 | ||||
Accelerated Share Repurchase Agreement August 17 2015 | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 300,000 | ||||||
Total shares (in shares) | 1,358,380 | 4,149,378 | 4,149,378 | 5,507,758 | 1,358,380 | 4,149,378 | |
Accelerated Share Repurchases, initial repurchase percentage | 80.00% | ||||||
Average price per share (in usd per share) | $ 54.47 | ||||||
Accelerated Share Repurchase Agreement August 17 2015 | Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 60,000 | $ 240,000 | |||||
Accelerated Share Repurchase Agreement August 17 2015 | Additional paid-in capital | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 60,000 |
SHAREHOLDERS' EQUITY - Preferr
SHAREHOLDERS' EQUITY - Preferred shares (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 27, 2016 | Jan. 31, 2017 | Nov. 30, 2016 | May 31, 2013 | Apr. 30, 2012 | Mar. 31, 2012 | Nov. 30, 2005 | Feb. 28, 2018 | Nov. 30, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Class of Stock [Line Items] | |||||||||||||
Aggregate cash payment to acquire preferred shares | $ 351,074 | $ 51,769 | $ 0 | ||||||||||
Loss on repurchase of preferred shares | 0 | 1,309 | $ 0 | ||||||||||
Preferred shares, aggregate liquidation value outstanding | $ 775,000 | $ 1,126,074 | |||||||||||
Series B 7.50% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, aggregate liquidation value issued | $ 250,000 | ||||||||||||
Preferred shares, dividend rate | 7.50% | ||||||||||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | ||||||||||||
Preferred shares, liquidation preference per share (in usd per share) | 100 | ||||||||||||
Preferred shares, redemption price per share (in usd per share) | $ 100 | ||||||||||||
Preferred shares, purchase price per share (in usd per share) | $ 102.81 | ||||||||||||
Preferred shares, number of shares redeemed (in shares) | 28,430 | 2,471,570 | |||||||||||
Aggregate cash payment to acquire preferred shares | $ 254,000 | ||||||||||||
Loss on repurchase of preferred shares | $ 9,000 | ||||||||||||
Preferred shares, dividend declared per share (in usd per share) | $ 6.8125 | $ 7.50 | |||||||||||
Preferred shares, dividends paid per share (in usd per share) | 7.50 | $ 7.5 | |||||||||||
Preferred shares, aggregate redemption price | $ 3,000 | ||||||||||||
Series C 6.875% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, aggregate liquidation value issued | $ 400,000 | ||||||||||||
Preferred shares, dividend rate | 6.875% | ||||||||||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | ||||||||||||
Preferred shares, liquidation preference per share (in usd per share) | 25 | ||||||||||||
Preferred shares, redemption price per share (in usd per share) | 25 | ||||||||||||
Preferred shares, purchase price per share (in usd per share) | $ 25.67 | $ 25.67 | |||||||||||
Preferred shares, number of shares redeemed (in shares) | 1,957,045 | ||||||||||||
Aggregate cash payment to acquire preferred shares | $ 50,000 | ||||||||||||
Loss on repurchase of preferred shares | $ 1,000 | ||||||||||||
Preferred shares, dividend declared per share (in usd per share) | 0.4297 | $ 1.7188 | 1.7188 | ||||||||||
Preferred shares, dividends paid per share (in usd per share) | $ 0.4297 | 1.7188 | 1.7188 | ||||||||||
Preferred shares, number of shares outstanding (in shares) | 14,042,955 | 14,042,955 | |||||||||||
Preferred shares, aggregate liquidation value outstanding | $ 351,000 | $ 351,000 | |||||||||||
Series D 5.50% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, aggregate liquidation value issued | $ 225,000 | ||||||||||||
Preferred shares, dividend rate | 5.50% | ||||||||||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | ||||||||||||
Preferred shares, liquidation preference per share (in usd per share) | 25 | ||||||||||||
Preferred shares, redemption price per share (in usd per share) | 25 | ||||||||||||
Preferred shares, dividend declared per share (in usd per share) | 1.3750 | 1.3750 | 1.3750 | ||||||||||
Preferred shares, dividends paid per share (in usd per share) | 1.0313 | 1.3750 | $ 1.3750 | ||||||||||
Series E 5.50% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, aggregate liquidation value issued | $ 550,000 | ||||||||||||
Preferred shares, dividend rate | 5.50% | ||||||||||||
Preferred shares, par value per share (in usd per share) | $ 0.0125 | $ 0.0125 | |||||||||||
Preferred shares, liquidation preference per share (in usd per share) | $ 2,500 | $ 2,500 | |||||||||||
Preferred shares, dividend declared per share (in usd per share) | 137.50 | $ 34.375 | |||||||||||
Preferred shares, dividends paid per share (in usd per share) | $ 34.3750 | $ 103.13 | |||||||||||
Subsequent Event | Series D 5.50% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, dividends paid per share (in usd per share) | $ 0.34375 | ||||||||||||
Subsequent Event | Series E 5.50% Preferred Shares | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Preferred shares, dividend declared per share (in usd per share) | $ 34.375 |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Retirement Benefits [Abstract] | |||
Total pension expenses | $ 24 | $ 23 | $ 21 |
SHARE-BASED COMPENSATION - Long
SHARE-BASED COMPENSATION - Long term equity compensation plan narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 31, 2017 | |
Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of restricted stock and cash settled awards vested | $ 125 | $ 67 | $ 75 | |
Unrecognized compensation costs | $ 94 | $ 85 | ||
Weighted average period for recognition of share based compensation | 2 years 4 months 45 days | 2 years 3 months 27 days | ||
Share based compensation expense incurred | $ 68 | $ 74 | 59 | |
Tax benefit related to share-based compensation costs incurred | 15 | 16 | $ 15 | |
Restricted Stock And Restricted Stock Units | Cash Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash settled awards | 22 | $ 48 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Tax benefit related to share-based compensation costs incurred | $ 7 | |||
2007 Long-term Equity Compensation Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares to be issued under the plan (in shares) | 3,400,000 | |||
Number of awards available for grant under plan (in shares) | 3,274,004 | |||
2007 Long-term Equity Compensation Plan | Share Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period of time subsequent to a change in control during which plan allows for accelerated vesting of awards for certain terminations | 2 years | |||
2014 Long Term Equity Compensation Plan | Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of restricted stock and cash settled awards vested | $ 44 | |||
Vesting period | 3 years |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share and cash settled awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Performance Based Restricted Stock and Restricted Stock Units | Share Settled | ||
Number of Restricted Stock | ||
Nonvested restricted stock - beginning of year (in shares) | 283,000 | 201,000 |
Granted (in shares) | 87,000 | 104,000 |
Performance Adjustment (in shares) | 26,000 | |
Vested (in shares) | (119,000) | (48,000) |
Forfeited (in shares) | (21,000) | 0 |
Nonvested restricted stock - end of year (in shares) | 230,000 | 283,000 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value - beginning of year (in usd per share) | $ 51.27 | $ 49.24 |
Weighted average grant date fair value - granted (in usd per share) | 64.58 | 53.80 |
Weighted average grant date fair value - performance adjusted (in usd per share) | 45.95 | |
Weighted average grant date fair value - vested (in usd per share) | 49.14 | 45.38 |
Weighted average grant date fair value - forfeited (in usd per share) | 55 | 0 |
Weighted average grant date fair value - end of year (in usd per share) | $ 57.08 | $ 51.27 |
Performance Based Restricted Stock and Restricted Stock Units | Cash Settled | ||
Number of Restricted Stock | ||
Nonvested restricted stock - beginning of year (in shares) | 68,000 | 70,000 |
Granted (in shares) | 15,000 | 18,000 |
Performance Adjustment (in shares) | 12,000 | |
Vested (in shares) | (38,000) | (32,000) |
Forfeited (in shares) | (3,000) | 0 |
Nonvested restricted stock - end of year (in shares) | 42,000 | 68,000 |
Service Based Restricted Stock And Restricted Stock Units | Share Settled | ||
Number of Restricted Stock | ||
Nonvested restricted stock - beginning of year (in shares) | 1,593,000 | 1,954,000 |
Granted (in shares) | 733,000 | 589,000 |
Vested (in shares) | (889,000) | (789,000) |
Forfeited (in shares) | (82,000) | (161,000) |
Nonvested restricted stock - end of year (in shares) | 1,355,000 | 1,593,000 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value - beginning of year (in usd per share) | $ 48.88 | $ 43.34 |
Weighted average grant date fair value - granted (in usd per share) | 61.94 | 53.87 |
Weighted average grant date fair value - vested (in usd per share) | 47.48 | 39.29 |
Weighted average grant date fair value - forfeited (in usd per share) | 54.89 | 47.33 |
Weighted average grant date fair value - end of year (in usd per share) | $ 57.09 | $ 48.88 |
Service Based Restricted Stock And Restricted Stock Units | Cash Settled | ||
Number of Restricted Stock | ||
Nonvested restricted stock - beginning of year (in shares) | 1,392,000 | 1,433,000 |
Granted (in shares) | 432,000 | 497,000 |
Vested (in shares) | (763,000) | (377,000) |
Forfeited (in shares) | (73,000) | (161,000) |
Nonvested restricted stock - end of year (in shares) | 988,000 | 1,392,000 |
Restricted Stock Units (RSUs) | ||
Weighted Average Grant Date Fair Value | ||
Tax benefit related to share-based compensation costs incurred | $ 7 | |
2014 Long Term Equity Compensation Plan | Cliff Vesting | Service Based Restricted Stock And Restricted Stock Units | Share Settled | ||
Number of Restricted Stock | ||
Vested (in shares) | (313,391) | |
Weighted Average Grant Date Fair Value | ||
Vesting period | 3 years | |
2014 Long Term Equity Compensation Plan | Cliff Vesting | Service Based Restricted Stock And Restricted Stock Units | Cash Settled | ||
Number of Restricted Stock | ||
Vested (in shares) | (307,556) | |
Weighted Average Grant Date Fair Value | ||
Vesting period | 3 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||||
Unfunded commitments related to other investments | $ 414,000 | $ 401,000 | ||
Ceded premiums | 1,529,130 | 1,217,234 | $ 929,064 | |
Ceded losses and loss expenses | 1,010,000 | 556,000 | 577,000 | |
Reinsurance recoverable on unpaid and paid losses | 3,338,840 | 2,334,922 | ||
Insurance and reinsurance balances payable | 899,064 | 493,183 | ||
Stone Point Group | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 2,000 | 3,000 | 3,000 | |
StoneRiver RegEd | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 500 | |||
NXT Capital II | ||||
Related Party Transaction [Line Items] | ||||
Unfunded commitments related to other investments | 30,000 | |||
NXT Capital III | ||||
Related Party Transaction [Line Items] | ||||
Unfunded commitments related to other investments | 30,000 | |||
NXT Capital | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 1,000 | 1,000 | 1,000 | |
Freedom Consumer Credit Fund, LLC Series B | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 1,100 | |||
Unfunded commitments related to other investments | 50,000 | |||
Chairman | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 500 | 600 | $ 1,000 | |
Significant influence | ||||
Related Party Transaction [Line Items] | ||||
Amounts of transactions with related parties | 451,000 | 411,000 | ||
Harrington Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 213,000 | 128,000 | ||
Ceded losses and loss expenses | 119,000 | 27,000 | ||
Reinsurance recoverable on unpaid and paid losses | 152,000 | 38,000 | ||
Insurance and reinsurance balances payable | 142,000 | 86,000 | ||
Ventures Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 107,000 | 40,000 | ||
Ceded losses and loss expenses | 126,000 | 10,000 | ||
Reinsurance recoverable on unpaid and paid losses | 131,000 | 22,000 | ||
Insurance and reinsurance balances payable | $ 17,000 | $ 15,000 | ||
Scenario, Forecast | Chairman | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | $ 500 | |||
Stone Point Group | NXT Capital | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership by related parties | 42.00% | |||
Stone Point Group | Pantheon | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership by related parties | 14.50% |
TRANSACTION AND REORGANIZATI112
TRANSACTION AND REORGANIZATION EXPENSES (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reorganization and Related Expenses [Line Items] | |||||
Transaction and integration expenses | $ 21,000,000 | $ 6,000,000 | $ 27,000,000 | $ 0 | $ 0 |
Reorganization expenses | 0 | 0 | 46,000,000 | ||
Corporate expenses | |||||
Reorganization and Related Expenses [Line Items] | |||||
Other assets write down | $ 0 | $ 0 | $ 5,000,000 |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense and net tax assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income tax expense [Line Items] | |||
Total income tax expense (benefit) | $ (7,542) | $ 6,340 | $ 3,028 |
Net current tax receivables (payables) | 3,540 | ||
Net current tax receivables (payables) | (639) | (69) | |
Net deferred tax assets | 4,438 | 103,313 | 104,762 |
Net tax assets | 3,799 | 106,853 | 104,693 |
U.S. | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | (6,207) | 606 | 4,927 |
Deferred income tax expense (benefit) | 18,495 | (1,829) | (267) |
Europe | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | 10,249 | 7,451 | 144 |
Deferred income tax expense (benefit) | (30,079) | 112 | (1,781) |
Other | |||
Income tax expense [Line Items] | |||
Current income tax expense (benefit) | $ 0 | $ 0 | $ 5 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Deferred tax assets: | ||||
Discounting of net reserves for losses and loss expenses | $ 27,804 | $ 27,804 | $ 47,258 | |
Unearned premiums | 25,188 | 25,188 | 41,797 | |
Operating and capital loss carryforwards | 53,095 | 53,095 | 43,687 | |
Accruals not currently deductible | 31,560 | 31,560 | 59,098 | |
Other investment adjustments and impairments | 0 | 0 | 84 | |
Tax credits | 29,929 | 29,929 | 10,139 | |
Other deferred tax assets | 15,047 | 15,047 | 3,684 | |
Deferred tax assets before valuation allowance | 182,623 | 182,623 | 205,747 | |
Valuation allowance | (16,157) | (16,157) | (41,100) | $ (40,331) |
Deferred tax assets net of valuation allowance | 166,466 | 166,466 | 164,647 | |
Deferred tax liabilities: | ||||
Deferred acquisition costs | (24,249) | (24,249) | (45,788) | |
Net unrealized investments gains | (8,033) | (8,033) | (1,168) | |
Amortization of VOBA, intangible assets and goodwill | (85,296) | (85,296) | (13,096) | |
Equalization reserves | (23,274) | (23,274) | 0 | |
Other deferred tax liabilities | (21,176) | (21,176) | (1,282) | |
Deferred tax liabilities | (162,028) | (162,028) | (61,334) | |
Net deferred tax assets | 4,438 | 4,438 | $ 103,313 | $ 104,762 |
Deferred tax asset, provisional income tax expense | 42,000 | 41,600 | ||
Deferred tax liabilities, business acquisition | $ 103,800 | $ 103,800 |
INCOME TAXES - Operating and ca
INCOME TAXES - Operating and capital loss carryforwards and tax credits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Singapore | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 77,467 | $ 83,532 |
Australia | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 0 | 147,193 |
Australia | Capital loss carryforward | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Capital loss carryforwards | 0 | 4,207 |
United Kingdom | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 126,839 | 19,306 |
Tax credit | 14,310 | 0 |
United Kingdom | Novae | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 23,000 | |
Tax credit | 14,800 | |
Ireland | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Tax credit | 3,566 | 3,298 |
Ireland | Capital loss carryforward | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Capital loss carryforwards | 716 | 716 |
U.S. | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 115,236 | 14,221 |
U.S. alternative minimum tax credit | $ 12,052 | $ 6,840 |
INCOME TAXES - Valuation allowa
INCOME TAXES - Valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | $ 41,100 | $ 40,331 |
Valuation allowance - end of year | 16,157 | 41,100 |
Operating loss carryforwards | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | (27,116) | 3,857 |
Foreign tax credit | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 267 | (2,775) |
Australian CTA and accruals and other foreign rate differentials | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 1,006 | (313) |
Change in investment-related items | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 900 | $ 0 |
Items unrelated to Australian operations | ||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | $ (1,200) |
INCOME TAXES - Effective tax ra
INCOME TAXES - Effective tax rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Income (loss) before income taxes | |||
Bermuda (domestic) | (188,420,000) | 469,306,000 | $ 652,235,000 |
Foreign | (188,091,000) | 50,402,000 | (7,576,000) |
Total income before income taxes | $ (376,511,000) | $ 519,708,000 | $ 644,659,000 |
Reconciliation of effective tax rate (% of income before income taxes) | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance | 0.00% | 0.20% | 1.20% |
Net tax exempt income | 0.10% | (0.20%) | (0.10%) |
Change in U.S. enacted tax rate | (11.10%) | 0.00% | 0.00% |
Other | 0.30% | 0.30% | (0.90%) |
Actual tax rate | 2.00% | 1.20% | 0.50% |
U.S. | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | 6.60% | (0.60%) | 0.80% |
Europe | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | 5.80% | 1.50% | (0.20%) |
Other | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | 0.30% | 0.00% | (0.30%) |
OTHER COMPREHENSIVE INCOME (118
OTHER COMPREHENSIVE INCOME (LOSS) - Component of other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Before Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | $ 219,197 | $ 69,950 | $ (156,244) |
Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | (4,974) | (3,326) | 13,353 |
Net of Tax Amount | |||
Other Comprehensive Income (Loss), Net of Tax | 214,223 | 66,624 | (142,891) |
Unrealized gains (losses) on available for sale investments, net of tax | |||
Before Tax Amount | |||
Unrealized investment gains arising during the year | 211,151 | 10,165 | (280,512) |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (33,892) | 60,423 | 145,766 |
Other Comprehensive Income (Loss), before Tax | 177,259 | 70,588 | (134,746) |
Tax (Expense) Benefit | |||
Unrealized investment gains arising during the year | (5,732) | (5,093) | 14,128 |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | 758 | 1,767 | (775) |
Other Comprehensive Income (Loss), Tax | (4,974) | (3,326) | 13,353 |
Net of Tax Amount | |||
Unrealized investment gains arising during the year | 205,419 | 5,072 | (266,384) |
Adjustment for reclassification of net realized investment gains and OTTI losses recognized in net income | (33,134) | 62,190 | 144,991 |
Other Comprehensive Income (Loss), Net of Tax | 172,285 | 67,262 | (121,393) |
Accumulated Other-than-Temporary Impairment, net of tax | |||
Before Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | 0 | 0 | 0 |
Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 |
Net of Tax Amount | |||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | 0 |
Cumulative foreign currency translation adjustments, net of tax | |||
Before Tax Amount | |||
Other Comprehensive Income (Loss), before Tax | 41,938 | (638) | (21,498) |
Tax (Expense) Benefit | |||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 |
Net of Tax Amount | |||
Other Comprehensive Income (Loss), Net of Tax | $ 41,938 | $ (638) | $ (21,498) |
OTHER COMPREHENSIVE INCOME (119
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of AOCI into net income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||||||||||
Other realized investment gains (losses) | $ 42,719 | $ (34,315) | $ (65,771) | ||||||||
OTTI losses | (14,493) | (26,210) | (72,720) | ||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (368,109) | 521,802 | 644,659 | ||||||||
Foreign exchange losses | (134,737) | 121,295 | 102,312 | ||||||||
Income tax (expense) benefit | 7,542 | (6,340) | (3,028) | ||||||||
Net income (loss) available to common shareholders | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 130,912 | $ 176,644 | $ 119,491 | $ 38,417 | (415,779) | 465,462 | 601,562 |
Non-cash foreign exchange losses | 24,149 | 0 | 0 | ||||||||
Unrealized gains (losses) on available for sale investments | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||||||||||
Other realized investment gains (losses) | 48,385 | (34,213) | (73,046) | ||||||||
OTTI losses | (14,493) | (26,210) | (72,720) | ||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | 33,892 | (60,423) | (145,766) | ||||||||
Income tax (expense) benefit | (758) | (1,767) | 775 | ||||||||
Net income (loss) available to common shareholders | 33,134 | (62,190) | (144,991) | ||||||||
Cumulative foreign currency translation adjustments, net of tax | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||||||||||
Foreign exchange losses | (24,149) | 0 | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income (loss) available to common shareholders | $ (24,149) | $ 0 | $ 0 |
STATUTORY FINANCIAL INFORMAT120
STATUTORY FINANCIAL INFORMATION (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)board_member | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Statutory Financial Information [Line Items] | |||
Statutory net income | $ (94,000,000) | $ 598,000,000 | $ 457,000,000 |
Bermuda | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 1,800,064,000 | 1,835,279,000 | |
Available statutory capital and surplus | 3,641,279,000 | 4,055,252,000 | |
Minimum solvency margin amount | $ 100,000,000 | ||
Minimum solvency margin percentage of net written premiums | 50.00% | ||
Minimum solvency margin percentage of net reserves | 15.00% | ||
Minimum solvency margin percentage of ECR | 25.00% | ||
Limit - prior year's total statutory capital surplus (Bermuda) | 25.00% | ||
Number of directors required to sign affidavits in order to pay dividend/distribution greater than 25% of prior year statutory capital and surplus | board_member | 2 | ||
Maximum dividend/distribution payable without regulatory approval | $ 900,000,000 | 1,000,000,000 | |
Ireland | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 613,923,000 | 552,678,000 | |
Available statutory capital and surplus | 906,512,000 | 925,164,000 | |
Maximum dividend/distribution payable with regulatory approval | 52,000,000 | 372,000,000 | |
U.S. | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 488,560,000 | 430,145,000 | |
Available statutory capital and surplus | 1,511,480,000 | 1,470,772,000 | |
Maximum dividend/distribution payable without regulatory approval | $ 115,000,000 | 147,000,000 | |
Maximum dividend limit - percentage of total statutory capital and surplus | 10.00% | ||
AXIS Syndicate 1686 | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | $ 557,000,000 | 293,000,000 | |
Financial instruments, as collateral, released from restriction | 1,600,000 | ||
AXIS Syndicate 1686 | Equity securities | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 0 | 83,000,000 | |
AXIS Syndicate 1686 | Cash | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 12,000,000 | $ 7,000,000 | |
Novae Syndicate 2007 | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, released from restriction | 41,000,000 | ||
Novae Syndicate 2007 | Equity securities | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 59,000,000 | ||
Novae Syndicate 2007 | Fixed maturities and short-term investments | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | $ 564,000,000 |
UNAUDITED CONDENSED QUARTERL121
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net premiums earned | $ 1,211,495,000 | $ 1,017,131,000 | $ 981,431,000 | $ 938,703,000 | $ 921,879,000 | $ 934,415,000 | $ 946,990,000 | $ 902,340,000 | $ 4,148,760,000 | $ 3,705,625,000 | $ 3,686,417,000 |
Net investment income | 100,908,000 | 95,169,000 | 106,063,000 | 98,664,000 | 95,517,000 | 116,923,000 | 91,730,000 | 49,164,000 | 400,805,000 | 353,335,000 | 305,336,000 |
Net realized investment gains (losses) | 43,038,000 | 14,632,000 | (4,392,000) | (25,050,000) | (20,229,000) | 5,205,000 | 21,010,000 | (66,508,000) | 28,226,000 | (60,525,000) | (138,491,000) |
Underwriting income (loss) | 26,130,000 | (512,853,000) | 57,012,000 | 16,385,000 | 66,265,000 | 103,998,000 | 9,860,000 | 98,951,000 | |||
Net income (loss) available to common shareholders | $ (38,081,000) | $ (467,740,000) | $ 85,030,000 | $ 5,014,000 | $ 130,912,000 | $ 176,644,000 | $ 119,491,000 | $ 38,417,000 | $ (415,779,000) | $ 465,462,000 | $ 601,562,000 |
Basic earnings per common share (in dollars per share) | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 1.50 | $ 1.97 | $ 1.30 | $ 0.41 | $ (4.94) | $ 5.13 | $ 6.10 |
Diluted earnings per common share (in dollars per share) | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 1.48 | $ 1.96 | $ 1.29 | $ 0.41 | $ (4.94) | $ 5.08 | $ 6.04 |
Transaction and reorganization expenses | $ 21,000,000 | $ 6,000,000 | $ 27,000,000 | $ 0 | $ 0 | ||||||
Deferred tax asset, provisional income tax expense | 42,000,000 | 41,600,000 | |||||||||
Amortization of value of business acquired | $ 50,000,000 | $ 50,104,000 | $ 0 | $ 0 |
SUBSEQUENT EVENTS - (Details)
SUBSEQUENT EVENTS - (Details) $ in Millions | Jan. 01, 2018USD ($) |
Subsequent Event | Novae Syndicate 2007 | |
Subsequent Event [Line Items] | |
Ceded reserves for losses and loss expenses | $ 819 |
SCHEDULE I - SUMMARY OF INVE123
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | $ 14,333,672 |
Amount shown on the Balance Sheet | 14,784,210 |
U.S. government and agency | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 1,727,643 |
Fair Value | 1,712,469 |
Amount shown on the Balance Sheet | 1,712,469 |
Non-U.S. government | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 798,582 |
Fair Value | 806,299 |
Amount shown on the Balance Sheet | 806,299 |
Corporate debt | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 5,265,795 |
Fair Value | 5,297,866 |
Amount shown on the Balance Sheet | 5,297,866 |
Agency RMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 2,414,720 |
Fair Value | 2,395,152 |
Amount shown on the Balance Sheet | 2,395,152 |
CMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 776,715 |
Fair Value | 777,728 |
Amount shown on the Balance Sheet | 777,728 |
Non-Agency RMBS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 45,713 |
Fair Value | 46,831 |
Amount shown on the Balance Sheet | 46,831 |
ABS | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 1,432,884 |
Fair Value | 1,436,281 |
Amount shown on the Balance Sheet | 1,436,281 |
Municipals | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 149,167 |
Fair Value | 149,380 |
Amount shown on the Balance Sheet | 149,380 |
Fixed maturities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Amortized Cost | 12,611,219 |
Fair Value | 12,622,006 |
Amount shown on the Balance Sheet | 12,622,006 |
Mortgage loans | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | 325,062 |
Amount shown on the Balance Sheet | 325,062 |
Short-term investments | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | 83,661 |
Amount shown on the Balance Sheet | 83,661 |
Equity securities | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | 635,511 |
Amount shown on the Balance Sheet | 635,511 |
Other Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | 667,432 |
Amount shown on the Balance Sheet | 1,009,373 |
Equity Method Investments [Member] | |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | |
Fair Value | 0 |
Amount shown on the Balance Sheet | $ 108,597 |
SCHEDULE II - CONDENSED FINA124
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||||
Cash and cash equivalents | $ 948,626 | $ 1,039,494 | $ 988,133 | $ 921,830 |
Other assets | 317,915 | 295,120 | ||
Total assets | 24,760,177 | 20,813,691 | ||
Liabilities | ||||
Other liabilities | 403,779 | 325,313 | ||
Total liabilities | 19,418,913 | 14,541,321 | ||
Shareholders’ equity | ||||
Preferred shares | 775,000 | 1,126,074 | ||
Common shares (shares issued 2017: 176,580; 2016: 176,580 shares outstanding 2017: 83,161; 2016: 86,441) | 2,206 | 2,206 | ||
Additional paid-in capital | 2,299,166 | 2,299,857 | ||
Accumulated other comprehensive income (loss) | 92,382 | (121,841) | ||
Retained earnings | 5,979,666 | 6,527,627 | ||
Treasury shares, at cost (2017: 93,419; 2016: 90,139) | (3,807,156) | (3,561,553) | ||
Total shareholders’ equity | 5,341,264 | 6,272,370 | ||
Total liabilities and shareholders’ equity | 24,760,177 | 20,813,691 | ||
AXIS Capital Holdings Limited | ||||
Assets | ||||
Investments in subsidiaries | 5,532,396 | 6,033,564 | ||
Promissory note receivable from subsidiary | 0 | 368,252 | ||
Cash and cash equivalents | 10,541 | 99 | $ 8,098 | $ 7,041 |
Other assets | 9,480 | 9,913 | ||
Total assets | 5,552,417 | 6,411,828 | ||
Liabilities | ||||
Intercompany payable | 160,950 | 66,123 | ||
Dividends payable | 49,907 | 58,791 | ||
Other liabilities | 296 | 14,544 | ||
Total liabilities | 211,153 | 139,458 | ||
Shareholders’ equity | ||||
Preferred shares | 775,000 | 1,126,074 | ||
Common shares (shares issued 2017: 176,580; 2016: 176,580 shares outstanding 2017: 83,161; 2016: 86,441) | 2,206 | 2,206 | ||
Additional paid-in capital | 2,299,166 | 2,299,857 | ||
Accumulated other comprehensive income (loss) | 92,382 | (121,841) | ||
Retained earnings | 5,979,666 | 6,527,627 | ||
Treasury shares, at cost (2017: 93,419; 2016: 90,139) | (3,807,156) | (3,561,553) | ||
Total shareholders’ equity | 5,341,264 | 6,272,370 | ||
Total liabilities and shareholders’ equity | $ 5,552,417 | $ 6,411,828 |
SCHEDULE II - CONDENSED FINA125
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS, Additional Information (Details) - shares shares in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Condensed Financial Information of Parent Company [Line Items] | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,161 | 86,441 |
Treasury shares (in shares) | 93,419 | 90,139 |
AXIS Capital Holdings Limited | ||
Condensed Financial Information of Parent Company [Line Items] | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,161 | 86,441 |
Treasury shares (in shares) | 93,419 | 90,139 |
SCHEDULE II - CONDENSED FINA126
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS, Footnotes (Details) - USD ($) | Dec. 31, 2017 | Dec. 06, 2017 | Dec. 31, 2016 | Nov. 07, 2016 |
Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Interest rate | 5.875% | |||
Senior Notes | Senior Notes Due 2019 Axis Specialty Finance PLC 2014 | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Interest rate | 2.65% | |||
Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Interest rate | 5.15% | |||
Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Interest rate | 4.00% | |||
AXIS Capital Holdings Limited | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Promissory note receivable from subsidiary | $ 0 | $ 368,252,000 | ||
AXIS Capital Holdings Limited | Weather-related contracts | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Guarantor obligations, current carrying value | 0 | 64,000,000 | ||
AXIS Capital Holdings Limited | Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Principal amount guaranteed | $ 500,000,000 | |||
Interest rate | 5.875% | |||
AXIS Capital Holdings Limited | Senior Notes | Senior Notes Due 2019 Axis Specialty Finance PLC 2014 | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Principal amount guaranteed | $ 250,000,000 | |||
Interest rate | 2.65% | |||
AXIS Capital Holdings Limited | Senior Notes | Senior Notes Due 2045 Axis Specialty Finance PLC 2014 | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Principal amount guaranteed | $ 250,000,000 | |||
Interest rate | 5.15% | |||
AXIS Capital Holdings Limited | Senior Notes | Senior Notes Axis Specialty Finance PLC 2017 | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Principal amount guaranteed | $ 350,000,000 | |||
Interest rate | 4.00% | |||
AXIS Capital Holdings Limited | Revolving Credit Facility | Syndication Of Lenders | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Guarantor obligations, current carrying value | $ 0 | |||
Subsidiaries [Member] | Weather-related contracts | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Percentage ownership in subsidiary | 100.00% | |||
AXIS Specialty Finance LLC | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Percentage ownership in subsidiary | 100.00% | |||
AXIS Specialty Finance LLC | Senior Notes | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Percentage ownership in subsidiary | 100.00% | |||
AXIS Specialty Finance PLC | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Percentage ownership in subsidiary | 100.00% | |||
AXIS Specialty Finance PLC | Senior Notes | Full and Unconditional Guarantee of Debt | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Percentage ownership in subsidiary | 100.00% | |||
Promissory Note | AXIS Capital Holdings Limited | ||||
Condensed Financial Information of Parent Company [Line Items] | ||||
Interest rate | 1.132% | |||
Promissory note receivable from subsidiary | $ 368,000,000 |
SCHEDULE II - CONDENSED FINA127
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Revenues | |||||||||||
Termination fee received | $ 0 | $ 0 | $ 280,000 | ||||||||
Total revenues | 4,591,595 | 4,005,657 | 4,130,309 | ||||||||
Expenses | |||||||||||
Net income (loss) | (368,969) | 513,368 | 641,631 | ||||||||
Preferred share dividends | 46,810 | 46,597 | 40,069 | ||||||||
Loss on repurchase of preferred shares | 0 | 1,309 | 0 | ||||||||
Net income (loss) available to common shareholders | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 130,912 | $ 176,644 | $ 119,491 | $ 38,417 | (415,779) | 465,462 | 601,562 |
Comprehensive income (loss) | (154,746) | 579,992 | 498,740 | ||||||||
AXIS Capital Holdings Limited | |||||||||||
Revenues | |||||||||||
Net investment income | 2,116 | 656 | 1 | ||||||||
Termination fee received | 0 | 0 | 280,000 | ||||||||
Total revenues | 2,116 | 656 | 280,001 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 34,933 | 39,909 | 8,012 | ||||||||
Total expenses | 34,933 | 39,909 | 8,012 | ||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (32,817) | (39,253) | 271,989 | ||||||||
Equity in net income (loss) of subsidiaries | (336,152) | 552,621 | 369,642 | ||||||||
Net income (loss) | (368,969) | 513,368 | 641,631 | ||||||||
Preferred share dividends | 46,810 | 46,597 | 40,069 | ||||||||
Loss on repurchase of preferred shares | 0 | 1,309 | 0 | ||||||||
Net income (loss) available to common shareholders | (415,779) | 465,462 | 601,562 | ||||||||
Comprehensive income (loss) | $ (154,746) | $ 579,992 | $ 498,740 |
SCHEDULE II - CONDENSED FINA128
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities: | |||
Net income | $ (368,969) | $ 513,368 | $ 641,631 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Other items | (64,928) | (13,804) | 16,119 |
Net cash provided by operating activities | 259,229 | 406,724 | 791,200 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | 178,363 | (144,431) | (225,697) |
Cash flows from financing activities: | |||
Net proceeds from issuance of preferred shares | 0 | 531,945 | 0 |
Repurchase of common shares - open market | (261,180) | (495,426) | (314,204) |
Taxes paid on withholding shares | (24,678) | (14,329) | (18,048) |
Dividends paid - common shares | (135,032) | (132,323) | (118,652) |
Repurchase of preferred shares | (351,074) | (51,769) | 0 |
Dividends paid - preferred shares | (52,844) | (39,909) | (40,088) |
Proceeds from issuance of common shares | 0 | 224 | 3,986 |
Net cash used in financing activities | (545,688) | (201,587) | (487,006) |
Increase (decrease) in cash and cash equivalents | (90,868) | 51,361 | 66,303 |
Cash and cash equivalents - beginning of year | 1,039,494 | 988,133 | 921,830 |
Cash and cash equivalents - end of year | 948,626 | 1,039,494 | 988,133 |
AXIS Capital Holdings Limited | |||
Cash flows from operating activities: | |||
Net income | (368,969) | 513,368 | 641,631 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in net income (loss) of subsidiaries | 336,152 | (552,621) | (369,642) |
Change in intercompany payable | 94,827 | 33,286 | (180,312) |
Dividends received from subsidiaries | 400,000 | 550,000 | 420,000 |
Other items | 4,988 | 17,807 | (23,614) |
Net cash provided by operating activities | 466,998 | 561,840 | 488,063 |
Cash flows from investing activities: | |||
Promissory note receivable from subsidiary | 0 | (368,252) | 0 |
Capital returned by subsidiary | 368,252 | 0 | 0 |
Net cash provided by (used in) investing activities | 368,252 | (368,252) | 0 |
Cash flows from financing activities: | |||
Net proceeds from issuance of preferred shares | 0 | 531,945 | 0 |
Repurchase of common shares - open market | (261,180) | (495,426) | (314,204) |
Taxes paid on withholding shares | (24,678) | (14,329) | (18,048) |
Dividends paid - common shares | (135,032) | (132,323) | (118,652) |
Repurchase of preferred shares | (351,074) | (51,769) | 0 |
Dividends paid - preferred shares | (52,844) | (39,909) | (40,088) |
Proceeds from issuance of common shares | 0 | 224 | 3,986 |
Net cash used in financing activities | (824,808) | (201,587) | (487,006) |
Increase (decrease) in cash and cash equivalents | 10,442 | (7,999) | 1,057 |
Cash and cash equivalents - beginning of year | 99 | 8,098 | 7,041 |
Cash and cash equivalents - end of year | $ 10,541 | $ 99 | $ 8,098 |
SCHEDULE III - SUPPLEMENTARY129
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | $ 474,061 | $ 438,636 | $ 471,782 |
Reserve for Losses and Loss Expenses | 12,997,553 | 9,697,827 | 9,646,285 |
Unearned Premiums | 3,641,399 | 2,969,498 | 2,760,889 |
Net Premiums Earned | 4,148,760 | 3,705,625 | 3,686,417 |
Net Investment Income | 400,805 | 353,335 | 305,336 |
Losses And Loss Expenses | 3,287,772 | 2,204,197 | 2,176,199 |
Amortization of Deferred Acquisition Costs | 823,591 | 746,876 | 718,112 |
Other Operating Expenses | 579,428 | 602,717 | 596,821 |
Net Premiums Written | 4,027,143 | 3,752,974 | 3,674,666 |
Insurance | |||
Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | 152,070 | 128,880 | 119,186 |
Reserve for Losses and Loss Expenses | 7,164,364 | 5,345,655 | 5,291,218 |
Unearned Premiums | 2,225,647 | 1,574,164 | 1,494,068 |
Net Premiums Earned | 2,106,363 | 1,777,321 | 1,798,191 |
Net Investment Income | 0 | 0 | 0 |
Losses And Loss Expenses | 1,661,032 | 1,141,933 | 1,154,928 |
Amortization of Deferred Acquisition Costs | 332,749 | 251,120 | 261,208 |
Other Operating Expenses | 344,012 | 346,857 | 341,658 |
Net Premiums Written | 2,087,734 | 1,807,125 | 1,759,359 |
Reinsurance | |||
Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | 321,991 | 309,756 | 352,596 |
Reserve for Losses and Loss Expenses | 5,833,189 | 4,352,172 | 4,355,067 |
Unearned Premiums | 1,415,752 | 1,395,334 | 1,266,821 |
Net Premiums Earned | 2,042,397 | 1,928,304 | 1,888,226 |
Net Investment Income | 0 | 0 | 0 |
Losses And Loss Expenses | 1,626,740 | 1,062,264 | 1,021,271 |
Amortization of Deferred Acquisition Costs | 490,842 | 495,756 | 456,904 |
Other Operating Expenses | 105,471 | 135,844 | 145,253 |
Net Premiums Written | 1,939,409 | 1,945,849 | 1,915,307 |
Corporate | |||
Supplementary Insurance Information [Line Items] | |||
Deferred Acquisition Costs | 0 | 0 | 0 |
Reserve for Losses and Loss Expenses | 0 | 0 | 0 |
Unearned Premiums | 0 | 0 | 0 |
Net Premiums Earned | 0 | 0 | 0 |
Net Investment Income | 400,805 | 353,335 | 305,336 |
Losses And Loss Expenses | 0 | 0 | 0 |
Amortization of Deferred Acquisition Costs | 0 | 0 | 0 |
Other Operating Expenses | 129,945 | 120,016 | 109,910 |
Net Premiums Written | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - SUPPLEMENTARY 130
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 2,423,126 | $ 2,112,178 | $ 2,031,565 |
CEDED TO OTHER COMPANIES | 1,529,130 | 1,217,234 | 929,064 |
ASSUMED FROM OTHER COMPANIES | 3,133,147 | 2,858,030 | 2,572,165 |
NET AMOUNT | $ 4,027,143 | $ 3,752,974 | $ 3,674,666 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 77.80% | 76.20% | 70.00% |
Property and Casualty | |||
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 2,228,022 | $ 1,975,497 | $ 1,901,757 |
CEDED TO OTHER COMPANIES | 1,523,662 | 1,215,775 | 910,917 |
ASSUMED FROM OTHER COMPANIES | 2,814,173 | 2,564,606 | 2,350,680 |
NET AMOUNT | $ 3,518,533 | $ 3,324,328 | $ 3,341,520 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 80.00% | 77.10% | 70.30% |
Accident and Health | |||
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 195,104 | $ 136,681 | $ 129,808 |
CEDED TO OTHER COMPANIES | 5,468 | 1,459 | 18,147 |
ASSUMED FROM OTHER COMPANIES | 318,974 | 293,424 | 221,485 |
NET AMOUNT | $ 508,610 | $ 428,646 | $ 333,146 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 62.70% | 68.50% | 66.50% |