DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 30, 2018 | |
DOCUMENT AND ENTITY INFORMATION [ABSTRACT] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
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 | 83,628,651 | ||
Entity Voluntary Filer | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Fixed maturities, available for sale, at fair value (Amortized cost 2018: $11,616,312; 2017: $12,611,219) | $ 11,435,347 | $ 12,622,006 |
Equity securities, at fair value (Cost 2018: $365,905; 2017: $552,867) | 381,633 | 635,511 |
Mortgage loans, held for investment, at amortized cost and fair value | 298,650 | 325,062 |
Other investments, at fair value | 787,787 | 1,009,373 |
Equity method investments | 108,103 | 108,597 |
Short-term investments, at amortized cost and fair value | 144,040 | 83,661 |
Total investments | 13,155,560 | 14,784,210 |
Cash and cash equivalents | 1,232,814 | 948,626 |
Restricted cash and cash equivalents | 597,206 | 415,160 |
Accrued interest receivable | 80,335 | 81,223 |
Insurance and reinsurance premium balances receivable | 3,007,296 | 3,012,419 |
Reinsurance recoverable on unpaid losses | 3,501,669 | 3,159,514 |
Reinsurance recoverable on paid losses | 280,233 | 179,326 |
Deferred acquisition costs | 566,622 | 474,061 |
Prepaid reinsurance premiums | 1,013,573 | 809,274 |
Receivable for investments sold | 32,627 | 11,621 |
Goodwill | 102,003 | 102,003 |
Intangible assets | 241,568 | 257,987 |
Value of business acquired | 35,714 | 206,838 |
Other assets | 285,346 | 317,915 |
Total assets | 24,132,566 | 24,760,177 |
Liabilities | ||
Reserve for losses and loss expenses | 12,280,769 | 12,997,553 |
Unearned premiums | 3,635,758 | 3,641,399 |
Insurance and reinsurance balances payable | 1,338,991 | 899,064 |
Senior notes and notes payable | 1,341,961 | 1,376,529 |
Payable for investments purchased | 111,838 | 100,589 |
Other liabilities | 393,178 | 403,779 |
Total liabilities | 19,102,495 | 19,418,913 |
Commitments and Contingencies | ||
Shareholders' equity | ||
Preferred shares | 775,000 | 775,000 |
Common shares (shares issued 2018: 176,580; 2017: 176,580 shares outstanding 2018: 83,586; 2017: 83,161) | 2,206 | 2,206 |
Additional paid-in capital | 2,308,583 | 2,299,166 |
Accumulated other comprehensive income (loss) | (177,110) | 92,382 |
Retained earnings | 5,912,812 | 5,979,666 |
Treasury shares, at cost (2018: 92,994; 2017: 93,419) | (3,791,420) | (3,807,156) |
Total shareholders’ equity | 5,030,071 | 5,341,264 |
Total liabilities and shareholders’ equity | $ 24,132,566 | $ 24,760,177 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 11,616,312 | $ 12,611,219 |
Cost | 365,905 | 552,867 |
Commitments and Contingencies | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,586 | 83,161 |
Treasury shares (in shares) | 92,994 | 93,419 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||
Net premiums earned | $ 4,791,495 | $ 4,148,760 | $ 3,705,625 |
Net investment income | 438,507 | 400,805 | 353,335 |
Other insurance related income (losses) | 10,622 | (1,240) | 7,222 |
Bargain purchase gain | 0 | 15,044 | 0 |
Net investment gains (losses): | |||
Other-than-temporary impairment (OTTI) losses | (9,733) | (14,493) | (26,210) |
Other realized and unrealized investment gains (losses) | (140,485) | 42,719 | (34,315) |
Total net investment gains (losses) | (150,218) | 28,226 | (60,525) |
Total revenues | 5,090,406 | 4,591,595 | 4,005,657 |
Expenses | |||
Net losses and loss expenses | 3,190,287 | 3,287,772 | 2,204,197 |
Acquisition costs | 968,835 | 823,591 | 746,876 |
General and administrative expenses | 627,389 | 579,428 | 602,717 |
Foreign exchange losses (gains) | (29,165) | 134,737 | (121,295) |
Interest expense and financing costs | 67,432 | 54,811 | 51,360 |
Transaction and reorganization expenses | 66,940 | 26,718 | 0 |
Amortization of value of business acquired | 172,332 | 50,104 | 0 |
Amortization of intangible assets | 13,814 | 2,543 | 0 |
Total expenses | 5,077,864 | 4,959,704 | 3,483,855 |
Income (loss) before income taxes and interest in income (loss) of equity method investments | 12,542 | (368,109) | 521,802 |
Income tax (expense) benefit | 29,486 | 7,542 | (6,340) |
Interest in income (loss) of equity method investments | 993 | (8,402) | (2,094) |
Net income (loss) | 43,021 | (368,969) | 513,368 |
Preferred share dividends | 42,625 | 46,810 | 46,597 |
Loss on repurchase of preferred shares | 0 | 0 | 1,309 |
Net income (loss) available (attributable) to common shareholders | $ 396 | $ (415,779) | $ 465,462 |
Earnings (loss) per common share: | |||
Earnings (loss) per common share (in dollars per share) | $ 0 | $ (4.94) | $ 5.13 |
Earnings (loss) per diluted common share (in dollars per share) | $ 0 | $ (4.94) | $ 5.08 |
Weighted average common shares outstanding (in shares) | 83,501 | 84,108 | 90,772 |
Weighted average diluted common shares outstanding (in shares) | 84,007 | 84,108 | 91,547 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ 43,021 | $ (368,969) | $ 513,368 |
Other comprehensive income (loss), net of tax: | |||
Unrealized investment gains (losses) arising during the year | (291,731) | 205,419 | 5,072 |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income (loss) | 100,902 | (33,134) | 62,190 |
Unrealized investment gains (losses) arising during the year, net of reclassification adjustment | (190,829) | 172,285 | 67,262 |
Foreign currency translation adjustment | (11,165) | 41,938 | (638) |
Total other comprehensive income (loss), net of tax | (201,994) | 214,223 | 66,624 |
Comprehensive income (loss) | $ (158,973) | $ (154,746) | $ 579,992 |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2018-02 | $ 0 | $ 0 | |||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2016-01 | 0 | 0 | |||||||
Balance at beginning of year at Dec. 31, 2015 | $ 627,843 | $ 2,202 | $ 2,241,388 | $ (188,465) | (149,585) | $ (38,880) | 6,194,353 | $ (3,010,439) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares issued | 550,000 | 4 | 220 | ||||||
Shares reissued | (19,303) | 20,691 | |||||||
Shares repurchased | 60,000 | (571,805) | |||||||
Costs associated with issuance of preferred shares | (18,055) | ||||||||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2018-02 | 0 | 0 | |||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2016-01 | 0 | 0 | |||||||
Shares issued | 0 | 0 | 0 | ||||||
Shares reissued | (39,368) | 40,255 | |||||||
Shares repurchased | 0 | (285,858) | |||||||
Costs associated with issuance of preferred shares | 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2018-02 | 2,106 | (2,106) | |||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2016-01 | (69,604) | 69,604 | |||||||
Shares issued | 0 | 0 | 0 | ||||||
Shares reissued | (24,088) | 25,816 | |||||||
Shares repurchased | 0 | (10,080) | |||||||
Costs associated with issuance of preferred shares | 0 | ||||||||
Share-based compensation expense | 33,505 | ||||||||
Unrealized gains (losses) arising during the year, net of reclassification adjustment | (190,829) | (190,829) | |||||||
Foreign currency translation adjustment | (11,165) | (11,165) | |||||||
Net income (loss) | 43,021 | 43,021 | |||||||
Preferred share dividends | (42,625) | ||||||||
Loss on repurchase of preferred shares | 0 | 0 | |||||||
Common share dividends | (134,748) | ||||||||
Balance at end of year at Dec. 31, 2018 | $ 5,030,071 | $ 775,000 | $ 2,206 | $ 2,308,583 | $ (177,110) | $ (168,365) | $ (8,745) | $ 5,912,812 | $ (3,791,420) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 43,021 | $ (368,969) | $ 513,368 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Net investment (gains) losses | 144,297 | (28,226) | 60,525 |
Net realized and unrealized gains on other investments | (45,153) | (72,763) | (38,669) |
Amortization of fixed maturities | 24,663 | 43,292 | 65,921 |
Interest in income (loss) of equity method investments | 495 | 8,402 | 2,094 |
Amortization of value of business acquired | 172,332 | 50,104 | 0 |
Other amortization and depreciation | 9,795 | 31,367 | 24,573 |
Share-based compensation expense, net of cash payments | 34,346 | 12,667 | 52,211 |
Non-cash foreign exchange losses | 0 | 24,149 | 0 |
Bargain purchase gain | 0 | (15,044) | 0 |
Changes in: | |||
Accrued interest receivable | (3,184) | (4,353) | (885) |
Reinsurance recoverable balances on unpaid and paid losses | (766,690) | (131,160) | (176,532) |
Deferred acquisition costs | (98,329) | (35,076) | 33,212 |
Prepaid reinsurance premiums | (212,654) | (56,377) | (158,809) |
Reserve for loss and loss expenses | 442,839 | 1,004,578 | 54,476 |
Unearned premiums | 29,760 | (56,603) | 198,938 |
Insurance and reinsurance balances, net | 208,783 | (81,831) | (209,895) |
Other items | 26,452 | (64,928) | (13,804) |
Net cash provided by operating activities | 10,773 | 259,229 | 406,724 |
Purchases of: | |||
Fixed maturities | (8,464,140) | (8,714,990) | (9,176,728) |
Equity securities | (73,107) | (106,136) | (302,554) |
Mortgage loans | (106,171) | (31,077) | (148,450) |
Other investments | (180,126) | (153,150) | (190,370) |
Equity method investments | 0 | (1,000) | (107,913) |
Short-term investments | (305,670) | (41,609) | (190,747) |
Proceeds from the sale of: | |||
Fixed maturities | 7,586,536 | 7,004,973 | 7,905,316 |
Equity securities | 246,196 | 448,058 | 305,642 |
Other investments | 361,030 | 260,943 | 215,578 |
Short-term investments | 178,983 | 49,280 | 54,165 |
Proceeds from redemption of fixed maturities | 1,241,214 | 2,009,982 | 1,492,588 |
Proceeds from redemption of short-term investments | 45,831 | 119,427 | 36,546 |
Proceeds from the repayment of mortgage loans | 133,081 | 56,435 | 5,040 |
Purchase of other assets | (25,103) | (42,685) | (27,149) |
Purchase of subsidiaries, net | 0 | (466,941) | 0 |
Net cash provided by (used in) investing activities | 638,554 | 391,510 | (129,036) |
Cash flows from financing activities: | |||
Net proceeds from issuance of debt | 0 | 346,362 | 0 |
Repayment of notes payable | 0 | (67,242) | 0 |
Net proceeds from issuance of preferred shares | 0 | 0 | 531,945 |
Repurchase of common shares - open market | 0 | (261,180) | (495,426) |
Taxes paid on withholding shares | (10,080) | (24,678) | (14,329) |
Dividends paid - common shares | (133,502) | (135,032) | (132,323) |
Repurchase of preferred shares | 0 | (351,074) | (51,769) |
Dividends paid - preferred shares | (42,625) | (52,844) | (39,909) |
Proceeds from issuance of common shares | 0 | 0 | 224 |
Net cash used in financing activities | (186,207) | (545,688) | (201,587) |
Effect of exchange rate changes on foreign currency cash, cash equivalents and restricted cash | 3,114 | 17,228 | (9,345) |
Increase in cash, cash equivalents and restricted cash | 466,234 | 122,279 | 66,756 |
Cash, cash equivalents and restricted cash - beginning of year | 1,363,786 | 1,241,507 | 1,174,751 |
Cash, cash equivalents and restricted cash - end of year | 1,830,020 | 1,363,786 | 1,241,507 |
Supplemental disclosures of cash flow information: | |||
Income taxes paid | 15,698 | 0 | 12,041 |
Interest paid | $ 64,822 | $ 49,945 | $ 48,875 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2016 | |
Consideration transferred reinsurance | $ 170 | |
Transfer from investments | $ 92 | |
Syndicate 2,007 | ||
Consideration transferred reinsurance | $ 819 | |
Transfer from investments | $ 600 |
HISTORY
HISTORY | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
HISTORY | AXIS Capital Holdings Limited ("AXIS Capital" and together with its wholly owned subsidiaries the "Company"), was incorporated on December 9, 2002, under the laws of Bermuda. The Company provides a broad range of (re)insurance products on a worldwide basis. The Company's principal operating subsidiaries, located in Bermuda, the United States (U.S.), Europe, Singapore and Canada are described below: • AXIS Specialty Limited ("AXIS Specialty Bermuda"), a Bermuda domiciled company is licensed to provide specialty insurance and treaty reinsurance products on a worldwide basis. In addition, AXIS Specialty Bermuda conducts (re)insurance business through its branch in Singapore, AXIS Specialty Limited (Singapore Branch). • AXIS Insurance Company, domiciled in Illinois and AXIS Reinsurance Company, domiciled in New York, together with AXIS Reinsurance Company (Canadian branch) are licensed to offer a range of specialty insurance and treaty reinsurance products to a variety of niche markets on a worldwide basis. AXIS Surplus Insurance Company, domiciled in the state of Illinois is eligible to write insurance on a surplus lines basis. • AXIS Specialty Europe SE ("AXIS Specialty Europe") is a European public limited liability company, incorporated as a non-life insurer under the laws of Ireland. It is a Societas Europaea (SE), or European society company, and has been registered in accordance with company law of the E.U. AXIS Specialty Europe also conducts insurance business through its branch in the United Kingdom, AXIS Specialty Europe SE ("UK Branch"). Effective January 1, 2019, AXIS Specialty Europe will also conduct insurance business through new branches in Belgium and in the Netherlands. • AXIS Re SE ("AXIS Re") is a European public limited liability company, incorporated as a reinsurer under the laws of Ireland. AXIS Re SE is also a Societas Europaea (SE). AXIS Re also conducts reinsurance business through its branch in Switzerland, AXIS Re SE, Dublin (Zurich Branch). • The Company operates in the Lloyd's of London ("Lloyd's") market through AXIS Corporate Capital UK Limited which is the sole corporate member of AXIS Syndicate 1686 ("Syndicate 1686"). Effective August 4, 2017, AXIS Managing Agency Ltd. ("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. Effective January 1, 2019, AXIS Corporate Capital UK Limited and Novae Corporate Underwriting Limited ("NCUL") will provide 70% and 30% , respectively, of Syndicate 1686's capital support. • On October 2, 2017, AXIS Specialty UK Holdings Limited, a wholly owned subsidiary of the Company, acquired a 100% ownership interest in Novae Group plc ("Novae"). Novae operates in the Lloyd's market through NCUL, the sole corporate member of Novae Syndicate 2007 ("Syndicate 2007") and owns Lloyd’s managing agency, Novae Syndicates Limited ("NSL") which operated in the Lloyd’s insurance market and managed Syndicate 2007 until January 1, 2018, when the Company received authorization from Lloyd’s for AXIS Managing Agency to commence management and oversight of Syndicate 2007. • AXIS Ventures Limited ("AXIS Ventures"), regulated by the BMA as an insurance manager, generates fee income from services provided to strategic capital partners. AXIS Ventures Reinsurance Limited ("Ventures Re") is a Bermuda domiciled insurer and is a registered segregated accounts company under the Bermuda Segregated Accounts Companies Act 2000, as amended. Ventures Re manages capital for investors interested in deploying funds directly into the property-catastrophe and other short-tail business. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
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 United States of America ("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. During the three months ended March 31, 2018, the Company realigned its accident and health business by integrating this business and its operations into the Company's insurance and reinsurance segments. Through this realignment, the Company's accident and health business benefited from the greater scale and market presence of the Company's property and casualty insurance and reinsurance businesses and operations. Financial results relating to the Company's accident and health lines of business were previously included in the Company's insurance segment. Effective January 1, 2018, accident and health results are included in the results of both the insurance and reinsurance segments of the Company. As a result of the realignment, gross premiums written for the year ended December 31, 2017 of $313 million (2016: $288 million ) and underwriting income for the year ended December 31, 2017 of $14 million (2016: $15 million ) were reclassified from the Company's insurance segment to the Company's reinsurance segment. At December 31, 2018 the Company represented reinsurance recoverable on unpaid losses separately from reinsurance recoverable on paid losses in the consolidated balance sheets. This presentation was adopted to facilitate comparison to the reconciliation of beginning and ending net reserves for unpaid losses and loss expenses (refer to Note 9 'Reserve for Losses and Loss Expenses') . 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; • fair value measurements of financial assets and liabilities; and • other-than-temporary impairments ("OTTI") in the carrying value of available-for-sale securities. The Company's significant accounting policies are as follows: a) Investments Fixed Maturities, Available-for-sale, at Fair Value Fixed maturities classified as available-for-sale are reported at fair value (refer to Note 7 ' Fair Value Measurements '). The change in fair values (net unrealized investment gains (losses)) of fixed maturities, net of tax is recognized in accumulated other comprehensive income (loss) ("AOCI") in the consolidated statement of change shareholders’ equity. Net investment income includes interest 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 fixed maturities are recorded on a trade-date basis and realized investment gains (losses) on sales of fixed maturities are determined based on the specific identification method. Realized investment gains (losses) on fixed maturities are included in net investments gains (losses) in the consolidated statements of operations. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if applicable. The effective yield used to determine the amortization of fixed maturities subject to prepayment risk (e.g. asset-backed, mortgage-backed and other structured securities) is recalculated and adjusted periodically based upon historical and/or projected future cash flows. Adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. Adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. A fixed maturity is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company assesses whether unrealized investment losses on fixed maturities represent impairments that are other-than-temporary. The Company's impairment review process begins with a quantitative analysis to identify securities to be evaluated for potential OTTI. For identified securities, fundamental analysis is performed that considers the following quantitative and qualitative factors: (i) the duration and the extent of the decline; (ii) the financial condition, near-term and long-term prospects of the issuer of the security; (iii) 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; and (v) the collateral structure and credit support of the security, if applicable. If a fixed maturity is impaired and 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. In these instances, the full amount of the impairment is charged to net income and is included in net investment gains (losses). In instances where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss on the security and recognizes this component of the impairment in net income with a corresponding adjustment to amortized cost (new cost basis) of the security. The new cost basis is adjusted for subsequent increases in fair value where 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. The Company recognizes the non-credit component of the impairment (i.e. related to interest rates, market conditions, etc.) in other comprehensive income. Equity Securities, at Fair Value Following the adoption of Accounting Standards Update ("ASU") 2016-01 "Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities , " (refer to ' New Accounting Standards Adopted in 2018' below) Equity securities are reported at fair value (refer to Note 7 ' Fair Value Measurements '). Effective January 1, 2018, following the adoption of ASU 2016-01, the change in the fair values (net unrealized investment gains (losses)) of equity securities, net of tax is recognized in net investments gains (losses) in the consolidated statements of operations. Net investment income includes dividend income and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of equity securities are recorded on a trade-date basis and realized investment gains (losses) on sales of equity securities are determined based on the specific identification method. Realized investment gains (losses) on equity securities are included in net investments gains (losses) in the consolidated statements of operations. Prior to the Adoption of ASU 2016-01 Equity securities are reported at fair value. Prior to the adoption of ASU 2016-01, the change in the fair values (net unrealized investment gains (losses)) of equity securities, net of tax was recognized in AOCI in the consolidated statement of changes in shareholders’ equity. An equity security is impaired if the fair value of the investment is below cost. On a quarterly basis, the Company assessed whether unrealized investment losses on equity securities represented impairments that are other-than-temporary and recognized impairments on equity securities in an unrealized loss position when the Company did 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 was charged to net income and was included in net realized investment gains (losses) in the consolidated statements of operations. Upon recognition of an other-than-temporary impairment ("OTTI") charge, the new cost basis for the equity security was the cost for an equity security less the OTTI charge recognized in net income. The new cost basis was not adjusted for subsequent increases in fair value. Mortgage Loans Held-for-investment Mortgage loans held-for-investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives 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 in the consolidated statements of operations. 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 these 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 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 to support of obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of Syndicate 1686 and Syndicate 2007 at 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 on 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 adjustments to insurance and reinsurance premium estimates are recognized in the period in which 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 relates 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. 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. Insurance and reinsurance premiums balance receivable is presented net of acquisition costs when contract terms provide for the right of offset. 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. These amounts reflect both claims that have been reported ("case reserves") and claims that have been incurred but not yet reported ("IBNR") and 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, Chain Ladder and Bornhuetter Ferguson methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and line of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to reserve for losses and loss expenses estimates are recognized in the period in which 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. ceded premiums written) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded which relate to the unexpired term of the contracts in force. Reinstatement premiums ceded 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. Reinsurance recoverable related to case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance cover to individual case reserve estimates. Reinsurance recoverable related to IBNR is generally developed as part of our loss reserving process, therefore, its estimation is subject to similar risks and uncertainties as the estimation of IBNR. Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes ultimately will not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. The Company applies case-specific provisions against reinsurance recoverable on unpaid and paid losses 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 reinsurance recoverable balance. The estimates of reinsurance recoverable and the associated provision for uncollectible amounts require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to the provision for uncollectible amounts are recognized in the period in which they are determined. 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 net income 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 functional currency of the Company and the majority of its subsidiaries is the U.S. dollar. All foreign currency transactions are initially measured and recorded in the Company’s functional currency using the rates of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currency are remeasured to functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign currency gains (losses) generally being recognized in the consolidated statements of operations. Foreign currency gains (losses) related to available-for-sale investments denominated in foreign currency represent an unrealized appreciation (depreciation) in the market value of the securities and are included in the relevant component of AOCI. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. The Company’s reporting currency is the U.S. dollar. Assets and liabilities of the Company's subsidiaries and branches where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the rates of exchange in effect at the balance sheet date, and revenue and expenses are translated using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in the consolidated statement of change shareholders’ equity. g) Share-based Compensation The Company is authorized to issue restricted shares, restricted stock units, performance units, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes both share-settled and cash-settled service and performance based awards. The fair value of share-settled service and performance based awards is based on the market value of the Company's common share measured at the grant date and is expensed over the requisite service period. The fair value cash-settled service and performance based awards is also based on the fair market value of Company's common shares at the grant date and is expensed over the requisite service period. In addition, the fair value of the cash-settled service and performance based awards is recognized as a liability in the consolidated balance sheet and is remeasured at the end of each reporting 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 (refer to 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 a quantitative goodwill impairment test. If determined to be necessary, the quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. Subsequent to the adoption of ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment " (refer to ' New Accounting Standards Adopted in 2018' below) if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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. l) New Accounting Standards Adopted in 2018 Recognition and Measurement of Financial Assets and Financial Liabilities Fixed maturities and equity securities are reported at fair value at the balance sheet date (refer to Note 7 ' Fair Value Measurements '). Effective January 1, 2018, the Company adopted 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. Upon adoption of this guidance, net unrealized investment gains on equity securities of $70 million , net of deferred income taxes of $13 million , were reclassified from accumulated other comprehensive income to retained earnings. Revenue from Contracts with Customers Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)," using the modified retrospective transition approach. 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, such as accounting for insurance contracts. 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. The Company generated fee income of $32 million for the year ended December 31, 2018 which is within the scope of this ASU. These fees represent service fees earned by the Company's reinsurance segment related to services provided to strategic capital partners and are recognized when the related services have been performed. Given that the timing and measurement of revenue associated with impacted contracts did not change, the adoption of this guidance did not have a material impact on the Company's results of operations, financial condition and liquidity. Classification of Certain Cash Receipts and Cash Payments Effective January 1, 2018, the Company adopted 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. The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. Restricted Cash Effective January 1, 2018, the Company adopted 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 requires 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. To facilitate comparison of the Company's consolidated statements of cash flows, the Company adopted this guidance utilizing the full retrospective approach for all periods presented in the Company's consolidated financial statements. As a result, the Company's consolidated statements of cash flows now explains the change during the period in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash is now included with cash and cash equivalents in the reconciliation of the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. Stock Compensation - Scope of Modification Accounting Effective January 1, 2018, the Company adopted ASU 2017-09 "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting, " which provides clarity and reduces 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 provide |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2018 | |
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. 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 was based on information included in Novae's audited financial statements at October 2, 2017. In addition, 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 . The Company also identified indefinite lived intangible assets related to Lloyd's syndicate capacity of $95 million (refer to Note 5 'Goodwill and Intangible Assets' for further information). 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 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 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 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 . Transaction and Integration Expenses In connection with the acquisition of Novae, the Company incurred transaction and integration related expenses of $26 million ( 2017 : $27 million ). 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
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 - Novae, which represents lines of business that Novae exited or placed into run-off in the three month periods ended December 31, 2016 and March 31, 2017. Reinsurance The Company's reinsurance segment provides 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, marine and other, accident and health, together with discontinued lines - Novae, which represents lines of business that Novae exited or placed into run-off in the three month periods ended December 31, 2016 and 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 present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: At and year ended December 31, 2018 Insurance Reinsurance Total Gross premiums written $ 3,797,592 $ 3,112,473 $ 6,910,065 Net premiums written 2,324,747 2,334,215 4,658,962 Net premiums earned 2,362,606 2,428,889 4,791,495 Other insurance related income 3,460 7,162 10,622 Net losses and loss expenses (1,494,323 ) (1,695,964 ) (3,190,287 ) Acquisition costs (399,193 ) (569,642 ) (968,835 ) General and administrative expenses (395,252 ) (123,916 ) (519,168 ) Underwriting income $ 77,298 $ 46,529 123,827 Corporate expenses (108,221 ) Net investment income 438,507 Net investment losses (150,218 ) Foreign exchange gains 29,165 Interest expense and financing costs (67,432 ) Transaction and reorganization expenses (66,940 ) Amortization of value of business acquired (172,332 ) Amortization of intangible assets (13,814 ) Income before income taxes and interest in income (loss) of equity method investments $ 12,542 Net loss and loss expense ratio 63.2 % 69.8 % 66.6 % Acquisition cost ratio 16.9 % 23.5 % 20.2 % General and administrative expense ratio 16.8 % 5.1 % 13.1 % Combined ratio 96.9 % 98.4 % 99.9 % Total intangible assets $ 379,285 $ — $ 379,285 At and year ended December 31, 2017 Insurance Reinsurance Total Gross premiums written $ 2,814,918 $ 2,741,355 $ 5,556,273 Net premiums written 1,775,825 2,251,318 4,027,143 Net premiums earned 1,816,438 2,332,322 4,148,760 Other insurance related income (loss) 2,944 (4,184 ) (1,240 ) Net losses and loss expenses (1,465,427 ) (1,822,345 ) (3,287,772 ) Acquisition costs (270,229 ) (553,362 ) (823,591 ) General and administrative expenses (325,368 ) (124,115 ) (449,483 ) Underwriting loss $ (241,642 ) $ (171,684 ) (413,326 ) Corporate expenses (129,945 ) Net investment income 400,805 Net investment gains 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 intangible assets (2,543 ) Loss before income taxes and interest in income (loss) of equity method investments $ (368,109 ) Net loss and loss expense ratio 80.7 % 78.1 % 79.2 % Acquisition cost ratio 14.9 % 23.7 % 19.9 % General and administrative expense ratio 17.9 % 5.3 % 14.0 % Combined ratio 113.5 % 107.1 % 113.1 % Total intangible assets $ 566,828 $ — $ 566,828 At and year ended December 31, 2016 Insurance Reinsurance Total Gross premiums written $ 2,432,475 $ 2,537,733 $ 4,970,208 Net premiums written 1,519,559 2,233,415 3,752,974 Net premiums earned 1,534,282 2,171,343 3,705,625 Other insurance related income 89 7,133 7,222 Net losses and loss expenses (977,771 ) (1,226,426 ) (2,204,197 ) Acquisition costs (206,619 ) (540,257 ) (746,876 ) General and administrative expenses (327,351 ) (155,350 ) (482,701 ) Underwriting income $ 22,630 $ 256,443 279,073 Corporate expenses (120,016 ) Net investment income 353,335 Net investment losses (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 63.7 % 56.5 % 59.5 % Acquisition cost ratio 13.5 % 24.9 % 20.2 % General and administrative expense ratio 21.3 % 7.1 % 16.2 % Combined ratio 98.5 % 88.5 % 95.9 % Total intangible assets $ 85,049 $ — $ 85,049 The following table presents gross premiums written by the geographical location of the Company's subsidiaries: Year ended December 31, 2018 2017 2016 Bermuda $ 606,452 $ 529,425 $ 465,980 Ireland 1,805,882 1,569,956 1,650,229 U.S. 2,811,537 2,814,933 2,562,789 Lloyd's of London 1,686,194 641,959 291,210 Total gross premium written $ 6,910,065 $ 5,556,273 $ 4,970,208 The following table presents net premiums earned by segment and line of business: Year ended December 31, 2018 2017 2016 Insurance Property $ 796,945 $ 543,342 $ 426,918 Marine 300,944 181,533 150,046 Terrorism 49,150 36,084 33,279 Aviation 74,203 75,107 44,980 Credit and political risk 102,825 56,432 57,964 Professional lines 570,241 519,759 510,806 Liability 229,373 188,770 169,182 Accident and health 207,777 199,121 141,107 Discontinued lines - Novae 31,148 16,290 — Total Insurance 2,362,606 1,816,438 1,534,282 Reinsurance Catastrophe 250,016 209,470 199,825 Property 317,038 304,376 272,403 Professional lines 220,687 226,622 289,868 Credit and surety 250,276 244,186 252,210 Motor 438,693 371,501 318,863 Liability 363,292 351,940 332,479 Agriculture 176,435 195,391 142,501 Engineering 67,932 66,291 62,833 Marine and other 35,570 64,449 57,322 Accident and health 299,813 289,925 243,039 Discontinued lines - Novae 9,137 8,171 — Total Reinsurance 2,428,889 2,332,322 2,171,343 Total $ 4,791,495 $ 4,148,760 $ 3,705,625 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | The table below provides details of goodwill and intangible assets related to the Company's insurance segment: Goodwill Intangible assets with an indefinite life Intangible assets with a finite life Total Balance at December 31, 2016 Gross amount $ 42,237 $ 26,036 $ 23,030 $ 91,303 Accumulated amortization 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 (1) 42,237 26,036 23,030 91,303 Accumulated amortization (1) 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 ) Balance at December 31, 2018 Gross amount $ 97,092 $ 120,784 $ 410,575 $ 628,451 Accumulated amortization n/a n/a (66,534 ) (66,534 ) Accumulated translation adjustment 4,911 — — 4,911 102,003 120,784 344,041 566,828 Amortization n/a n/a (184,043 ) (184,043 ) Impairment charge — — (3,500 ) (3,500 ) $ 102,003 $ 120,784 $ 156,498 $ 379,285 n/a – not applicable Acquisitions in 2017 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 . 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 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. Impairment Review The Company's impairment review of goodwill and indefinite lived intangibles resulted in the recognition of an impairment loss of $4 million for the year ended December 31, 2018 , related to the termination of the MGA contract intangible asset identified in connection with the acquisition of Novae. 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 . The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2018 Gross amount Accumulated amortization and impairment Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,598 ) 102 Customer relationships and customers lists - Ternian 13,330 (4,999 ) 8,331 VOBA - Aviabel 2,140 (2,140 ) — VOBA - Novae 256,942 (221,228 ) 35,714 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (6,622 ) 56,943 Large brokers 46,641 (3,888 ) 42,753 SME brokers 14,126 (1,471 ) 12,655 MGA contract (1) 4,131 (4,131 ) — $ 531,359 $ (254,077 ) $ 277,282 (1) During the year ended December 31, 2018, an impairment charge of $3,500 was recognized related to the termination of the MGA contract intangible asset identified in connection with the acquisition of Novae. 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 VOBA - 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 The table below provides details of estimated amortization expense of VOBA and intangible assets with a finite life: VOBA Intangible assets Total 2019 26,722 11,017 37,739 2020 5,139 10,916 16,055 2021 3,853 10,916 14,769 2022 — 10,916 10,916 2023 — 10,916 10,916 2024 and thereafter — 66,103 66,103 Total remaining amortization expense 35,714 120,784 156,498 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 35,714 $ 241,568 $ 277,282 The estimated remaining useful lives of finite lived intangible assets range from 1 to 14 years. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | a) Fixed Maturities and Equity Securities Fixed Maturities The amortized cost and fair values of the Company's fixed maturities classified as available for sale were as follows: Amortized Gross Gross Fair Non-credit (5) At December 31, 2018 Fixed maturities U.S. government and agency $ 1,520,142 $ 4,232 $ (8,677 ) $ 1,515,697 $ — Non-U.S. government 507,550 1,586 (16,120 ) 493,016 — Corporate debt 4,990,279 15,086 (128,444 ) 4,876,921 — Agency RMBS (1) 1,666,684 6,508 (29,884 ) 1,643,308 — CMBS (2) 1,103,507 2,818 (13,795 ) 1,092,530 — Non-Agency RMBS 40,732 1,237 (1,282 ) 40,687 (857 ) ABS (3) 1,651,350 1,493 (15,240 ) 1,637,603 — Municipals (4) 136,068 914 (1,397 ) 135,585 — Total fixed maturities $ 11,616,312 $ 33,874 $ (214,839 ) $ 11,435,347 $ (857 ) 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 ) (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 card receivables, collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs"). (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. Equity Securities The cost and fair values of the Company's equity securities were as follows: Cost Gross Gross Fair At December 31, 2018 Equity securities Common stocks $ 790 $ 112 $ (375 ) $ 527 Exchange-traded funds 213,420 33,498 (10,079 ) 236,839 Bond mutual funds 151,695 — (7,428 ) 144,267 Total equity securities $ 365,905 $ 33,610 $ (17,882 ) $ 381,633 At December 31, 2017 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 In the normal course of investing activities, the Company actively manages allocations to non-controlling tranches of structured securities which are variable interests issued by Variable Interest Entities ("VIEs"). These structured securities include RMBS, CMBS and ABS. The Company also invests in limited partnerships including hedge funds, direct lending funds, private equity funds and real estate funds as well as CLO equity tranched securities, which are all variable interests issued by VIEs (refer to Note 6(c) ' Other Investments '). 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 made 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 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. The contractual maturities of fixed maturities are shown below: Amortized cost Fair value % of Total fair value At December 31, 2018 Maturity Due in one year or less $ 430,390 $ 426,142 3.7 % Due after one year through five years 4,751,064 4,691,263 41.0 % Due after five years through ten years 1,762,452 1,697,737 14.8 % Due after ten years 210,133 206,077 1.8 % 7,154,039 7,021,219 61.3 % Agency RMBS 1,666,684 1,643,308 14.4 % CMBS 1,103,507 1,092,530 9.6 % Non-Agency RMBS 40,732 40,687 0.4 % ABS 1,651,350 1,637,603 14.3 % Total $ 11,616,312 $ 11,435,347 100.0 % 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 % Gross Unrealized Losses The following table summarizes fixed maturities and equity securities 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, 2018 (1) Fixed maturities U.S. government and agency $ 374,030 $ (7,659 ) $ 424,439 $ (1,018 ) $ 798,469 $ (8,677 ) Non-U.S. government 44,339 (2,004 ) 303,376 (14,116 ) 347,715 (16,120 ) Corporate debt 1,439,378 (58,915 ) 2,547,135 (69,529 ) 3,986,513 (128,444 ) Agency RMBS 940,645 (29,255 ) 117,181 (629 ) 1,057,826 (29,884 ) CMBS 455,582 (11,430 ) 353,802 (2,365 ) 809,384 (13,795 ) Non-Agency RMBS 9,494 (1,170 ) 11,432 (112 ) 20,926 (1,282 ) ABS 237,237 (2,755 ) 1,150,692 (12,485 ) 1,387,929 (15,240 ) Municipals 68,814 (1,373 ) 9,894 (24 ) 78,708 (1,397 ) Total fixed maturities $ 3,569,519 $ (114,561 ) $ 4,917,951 $ (100,278 ) $ 8,487,470 $ (214,839 ) 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 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01, which requires equity securities to be measured at fair value with changes in fair value recognized in net income therefore equity securities at fair value are excluded from the table above at December 31, 2018. Fixed Maturities At December 31, 2018 , 3,599 fixed maturities ( 2017 : 2,424 ) were in an unrealized loss position of $215 million ( 2017 : $91 million ) of which $49 million ( 2017 : $7 million ) was related to securities below investment grade or not rated. At December 31, 2018 , 1,656 fixed maturities ( 2017 : 627 ) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $3,570 million ( 2017 : $1,533 million ). Following a credit impairment review, it was concluded that these securities as well as the remaining securities in an unrealized loss position were temporarily impaired at December 31, 2018 , and were expected to recover in value as the securities approach maturity. At December 31, 2018 , the Company did not intend to sell the 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. b) Mortgage Loans The following table provides details of the Company's mortgage loans held-for-investment: December 31, 2018 December 31, 2017 Carrying value % of Total Carrying value % of Total Mortgage Loans held-for-investment: Commercial $ 298,650 100 % $ 325,062 100 % Total Mortgage Loans held-for-investment $ 298,650 100 % $ 325,062 100 % The primary credit quality indicator for commercial mortgage loans 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 which compares 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 2.2 x and weighted average loan-to-value ratios of less than 60% . At December 31, 2018 and 2017 , there were no credit losses or past due amounts associated with the commercial mortgage loans held by the Company. c) Other Investments The following tables provide a summary 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, 2018 Long/short equity funds $ 26,779 3 % Annually 60 days Multi-strategy funds 153,883 20 % Quarterly, Semi-annually 60-95 days Event-driven funds 13,936 2 % Annually 45 days Direct lending funds 274,478 35 % n/a n/a Private equity funds 64,566 8 % n/a n/a Real estate funds 84,202 11 % n/a n/a CLO-Equities 21,271 2 % n/a n/a Other privately held investments 44,518 6 % n/a n/a Overseas deposits 104,154 13 % n/a n/a Total other investments $ 787,787 100 % 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 % 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 long and short investments in publicly-traded equity securities. • 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 2018 and 2017 , neither of these restrictions impacted the Company's redemption requests. At December 31, 2018 , $27 million ( 2017 : $38 million ), representing 14% ( 2017 : 11% ) 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 2019 to March 2021. At December 31, 2018 , the Company had $210 million ( 2017 : $137 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 five to ten years and the General Partners of certain funds have the option to extend the term by up to three years. At December 31, 2018 , the Company had $84 million ( 2017 : $16 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 two years to the dissolution of the underlying fund. At December 31, 2018 , the Company had $147 million ( 2017 : $115 million ) of unfunded commitments as a limited partner in funds which invest in real estate and real estate securities and businesses. These funds include an open-ended fund and funds with investment terms ranging from seven years to the dissolution of the underlying fund. At December 31, 2018 , the Company had $16 million ( 2017 : $21 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 ten years . During 2015, the Company made a $50 million commitment as a limited partner of a bank revolver opportunity fund. The fund has an investment term of seven years and the General Partners have the option to extend the term by up to two years . At December 31, 2018 , this commitment remains unfunded. It is not anticipated that the full amount of this fund will be drawn. Syndicate 2007 holds overseas deposits which include investments in private funds where the underlying investments are primarily U.S. government, Non-U.S. government and corporate debt securities. 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 VIE. Given that the Company exercises significant influence over the operating and financial policies of this investee, the Company accounts for its ownership interest 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 was included in interest in income (loss) of equity method investments in the consolidated statement of operations. e) Net Investment Income Net investment income was derived from the following sources: Year ended December 31, 2018 2017 2016 Fixed maturities $ 356,273 $ 312,662 $ 305,459 Other investments 48,959 76,858 42,514 Equity securities 10,077 14,919 16,306 Mortgage loans 13,566 10,780 7,996 Cash and cash equivalents 27,566 10,057 9,209 Short-term investments 9,365 2,718 2,060 Gross investment income 465,806 427,994 383,544 Investment expenses (27,299 ) (27,189 ) (30,209 ) Net investment income $ 438,507 $ 400,805 $ 353,335 f) Net Investment Gains (Losses) The following table provides an analysis of net investment gains (losses): Year ended December 31, 2018 2017 2016 Gross realized investment gains Fixed maturities and short-term investments $ 46,067 $ 72,046 $ 86,267 Equity securities 20,435 78,343 19,104 Gross realized investment gains 66,502 150,389 105,371 Gross realized investment losses Fixed maturities and short-term investments (142,153 ) (98,442 ) (134,460 ) Equity securities (3,389 ) (959 ) (16,155 ) Gross realized investment losses (145,542 ) (99,401 ) (150,615 ) Net OTTI charge recognized in net income (9,733 ) (14,493 ) (26,210 ) Change in fair value of investment derivatives (1) 5,445 (8,269 ) 10,929 Change in fair value of equity securities (2) (66,890 ) — — Net investment gains (losses) $ (150,218 ) $ 28,226 $ (60,525 ) (1) Refer to Note 8 'Derivative Instruments' (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. The change in fair value of equity securities is now recognized in net income. The following table summarizes the OTTI charge recognized in net income by asset class: Year ended December 31, 2018 2017 2016 Fixed maturities: Non-U.S. government $ 4,697 $ 8,187 $ 3,557 Corporate debt 4,995 6,306 20,093 Non-Agency CMBS 41 — — 9,733 14,493 23,650 Equity Securities Exchange-traded funds — — 2,560 — — 2,560 Total OTTI recognized in net income $ 9,733 $ 14,493 $ 26,210 Fixed Maturities The following table provides a roll forward of credit losses ("credit loss table") before income taxes, for which a component of the OTTI charge was recognized in AOCI: Year ended December 31, 2018 2017 Balance at beginning of period $ 1,494 $ 1,493 Credit impairments recognized on securities not previously impaired — — Additional credit impairments recognized on securities previously impaired 8 13 Change in timing of future cash flows on securities previously impaired — — Intent to sell of securities previously impaired — — Securities sold/redeemed/matured (992 ) (12 ) Balance at end of period $ 510 $ 1,494 The credit loss component of an OTTI charge recognized in net income is 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. A summary of credit loss activities by asset class as well as the significant inputs and the methodology used to estimate these credit losses are described below. 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 has concluded that the possibility of a credit losses on these securities is highly unlikely due to the explicit U.S. government guarantee on certain securities (e.g. GNMA issuances) and the implicit guarantee on other securities that has been validated by past actions (e.g. U.S. government bailout of FNMA and FHLMC during the 2008 credit crisis). Although these securities are not analyzed for credit losses, they are still evaluated for intention to sell and likely requirement to sell. Non-U.S. Government: Non-U.S. government securities are evaluated for credit losses primarily through qualitative assessment of the likelihood of credit losses using information such as duration and severity of unrealized losses, as well as credit ratings and price volatility. At December 31, 2018 , the Company's holdings in sovereign debt, including $29 million ( 2017 : $185 million ) relating to the eurozone countries, were substantially all investment-grade securities. At December 31, 2018 , the gross unrealized investment losses of $16 million 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, 2018 . In 2018 , the OTTI charge 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 2018 , the OTTI charge on corporate debt securities 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. At December 31, 2018 , CMBS had a weighted average estimated subordination percentage of 31% ( 2017 : 29% ). Based on discounted cash flows at December 31, 2018 , 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 default, delinquency, loss severity and prepayment rates. The assumptions used to calculate the credit losses in 2018 have not changed significantly since December 31, 2017 . At December 31, 2018 , the fair value of the Company's non-agency RMBS was $41 million ( 2017 : $47 million ), consisting primarily of $31 million ( 2017 : $34 million ) of Prime and $5 million ( 2017 : $8 million ) of Alt-A MBS. At December 31, 2018 , the Company concluded that there are no credit losses anticipated for any of its non-agency RMBS other than those already recorded. ABS: The Company's investments in ABS at December 31, 2018 consist mainly of CLO debt tranched securities ("CLO Debt") purchased primarily as new issues during 2017 through 2018. Substantially all of these new issues had credit ratings of AA or better. The Company utilizes a scenario-based approach to reviewing its CLO Debt portfolio based on the current asset market price. The Company also reviews subordination levels of these securities to determine their ability to absorb credit losses of underlying collateral. If losses are forecast to be below the subordination level for a tranche held by the Company, the security is determined not to be impaired. At December 31, 2018 , the Company concluded that there are no credit losses anticipated for any of its CLO Debt. 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 (refer to Note 11(c) ' 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 (refer to Note 12 'Commitments and Contingencies' and Note 20 ' Statutory Financial Information' ). At December 31, 2018 collateral in trust for third party agreements included $403 million ( 2017 : $1,120 million ) of fixed maturities and equity securities, and cash of $39 million ( 2017 : $55 million ) held on deposit to support the underwriting activities of Syndicate 2007. At December 31, 2018 collateral in trust for third party agreements included cash of $154 million ( 2017 : $140 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, 2018 2017 Collateral in Trust for inter-company agreements $ 2,121,522 $ 3,310,180 Collateral for secured letter of credit facility 470,051 386,451 Funds at Lloyd's 1,307,945 1,192,717 Collateral in Trust for third party agreements 1,510,416 2,085,443 Securities on deposit with regulatory authorities 64,360 53,925 Total restricted investments $ 5,474,294 $ 7,028,716 h) Reverse Repurchase Agreements At December 31, 2018 , the Company held $189 million ( 2017 : $37 million ) of reverse repurchase agreements. These loans are fully collateralized, are generally outstanding for a short period of time and are presented on a gross basis as part of cash and cash equivalents in the Company's consolidated balance sheets. 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, 2018 | |
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 financial instruments categorized in Level 3. In periods of market dislocation, the observability of prices and inputs may be reduced for many financial 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 its 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 its 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 and assumptions 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 generally 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 generally 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 generally 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. ABS ABS include mostly investment-grade bonds backed by pools of loans with a variety of underlying collateral, including auto loans, student loans, credit card receivables, CDOs 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 generally 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, the fair value of 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 income approach valuation technique, specifically an internally developed discounted cash flow model. As the significant inputs used to price these securities are unobservable, the fair values of other investments are classified as Level 3. The fair value of the indirect investment in CLO-Equities is classified as Level 3 as the fair value of this security is estimated using an income approach valuation technique, specifically an externally developed discounted cash flow model due to the lack of observable and relevant trades in secondary markets. Overseas deposits include investments in private funds held by Syndicate 2007 where the underlying investments are primarily U.S. government, non-U.S. government and corporate debt securities. 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. The fair values of 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 exchange forward contracts and exchange traded interest rate swaps 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 a 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. As the significant inputs used to price these securities are observable market inputs, the fair values of these derivatives are classified as Level 2. Other underwriting-related derivatives include insurance and reinsurance contracts that are 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 an income approach valuation technique, specifically internally developed discounted cash flow models. As the significant inputs used to price these derivatives are unobservable, the fair values 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 value of this security. Pricing is generally unavailable when there is a low volume of trading activity and current transactions are not orderly therefore the fair value of this security is 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. As the significant inputs used to price these securities are observable market inputs, 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, 2018 Assets Fixed maturities U.S. government and agency $ 1,480,466 $ 35,231 $ — $ — $ 1,515,697 Non-U.S. government — 493,016 — — 493,016 Corporate debt — 4,827,909 49,012 — 4,876,921 Agency RMBS — 1,643,308 — — 1,643,308 CMBS — 1,073,396 19,134 — 1,092,530 Non-Agency RMBS — 40,687 — — 40,687 ABS — 1,619,070 18,533 — 1,637,603 Municipals — 135,585 — — 135,585 1,480,466 9,868,202 86,679 — 11,435,347 Equity securities Common stocks 527 — — — 527 Exchange-traded funds 236,839 — — — 236,839 Bond mutual funds — 144,267 — — 144,267 237,366 144,267 — — 381,633 Other investments Hedge funds (1) — — — 194,598 194,598 Direct lending funds — — — 274,478 274,478 Private equity funds — — — 64,566 64,566 Real estate funds — — — 84,202 84,202 Other privately held investments — — 44,518 — 44,518 CLO-Equities — — 21,271 — 21,271 Overseas deposits — 104,154 — — 104,154 — 104,154 65,789 617,844 787,787 Short-term investments — 144,040 — — 144,040 Other assets Derivative instruments (refer to Note 8) — 8,237 — — 8,237 Total Assets $ 1,717,832 $ 10,268,900 $ 152,468 $ 617,844 $ 12,757,044 Liabilities Derivative instruments (refer to Note 8) $ — $ 4,223 $ 10,299 $ — $ 14,522 Cash settled awards (refer to Note 16) — 20,648 — — 20,648 Total Liabilities $ — $ 24,871 $ 10,299 $ — $ 35,170 (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, 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 (refer to 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 (refer to Note 8) $ — $ 2,876 $ 11,510 $ — $ 14,386 Cash settled awards (refer to 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. During 2018 and 2017 , the Company had no transfers between Levels 1 and 2. The following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 2018 of investments classified as Level 3 in the fair value hierarchy. Fair value Valuation technique Unobservable input Range Weighted average Other investments - CLO-Equities $ 21,271 Discounted cash flow Default rates 3.0% 3.0% Loss severity rate 35% 35% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years Other investments - Other privately held investments $ 44,518 Discounted cash flow Discount rate 3.0% - 8.0% 7.1% Derivatives - Other underwriting-related derivatives $ (10,299 ) Discounted cash flow Discount rate 2.6% 2.6% Note: Fixed maturities and insurance-linked securities that are classified as Level 3 are excluded from the above table as these securities are priced using broker-dealer quotes. Other Investments - CLO-Equities 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, the fair value of the Company's indirect investment in CLO-Equities is determined using a discounted cash flow model prepared by an external investment manager. The default and loss severity rates are the most judgmental unobservable market inputs to the discounted cash flow model to which the valuation of the Company's indirect investment in CLO-Equities is most sensitive. A significant increase (decrease) in either of these significant inputs in isolation would result in a lower (higher) fair value estimate for the investment 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 a higher (lower) fair value estimate for the investment 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 its indirect investment in CLO-Equities includes 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 Investments - Other Privately Held Securities 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 the Company uses 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. Derivatives - Other Underwriting-related Derivatives 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 gains/losses (3) Year ended December 31, 2018 Fixed maturities Corporate debt $ 52,897 $ 2,935 $ (4,279 ) $ (591 ) $ 6,343 $ 10,267 $ (7,446 ) $ (11,114 ) $ 49,012 $ — CMBS — 5,096 — — (145 ) 17,200 — (3,017 ) 19,134 — ABS — 1,979 — — (446 ) 17,000 — — 18,533 — 52,897 10,010 (4,279 ) (591 ) 5,752 44,467 (7,446 ) (14,131 ) 86,679 — Other investments Other privately held investments 46,430 — — (913 ) — 3,110 (4,109 ) — 44,518 (913 ) CLO-Equities 31,413 — — 6,627 — — — (16,769 ) 21,271 6,627 77,843 — — 5,714 — 3,110 (4,109 ) (16,769 ) 65,789 5,714 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 10,010 $ (4,279 ) $ 5,033 $ 5,752 $ 47,577 $ (11,555 ) $ (55,900 ) $ 152,468 $ 5,714 Other liabilities Derivative instruments 11,510 — — (1,211 ) — — — — 10,299 (1,211 ) Total liabilities $ 11,510 $ — $ — $ (1,211 ) $ — $ — $ — $ — $ 10,299 $ (1,211 ) 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 ) (1) Realized investment gains (losses) on fixed maturities, and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized investment gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). (3) Change in unrealized investment gains (losses) 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 2018 and 2017 were primarily due to the lack of observable market inputs and multiple quotes from pricing vendors and broker-dealers for certain fixed maturities. Transfers out of Level 3 into Level 2 The transfers out of Level 3 into Level 2 made during 2018 and 2017 were primarily due to the availability of observable market inputs and multiple quotes from pricing vendors for 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 therefore 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 reporting lag therefore the Company estimates the fair value of these funds by starting with the most recent fund valuations and adjusting for capital calls, redemptions, drawdowns and distributions. Return estimates are not available from the relevant fund managers for these funds therefore the Company typically has a reporting lag in its fair value measurements of these funds. In 2018, funds reported on a lag represented 61% ( 2017 : 44% ) 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. At December 31, 2018 , 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 due to their respective short maturities. As these financial instruments are not actively traded, their fair values are classified as Level 2. At December 31, 2018 , the carrying value of mortgage loans held-for-investment approximated their fair value. 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, 2018 , senior notes are recorded at amortized cost with a carrying value of $1,342 million ( 2017 : $1,341 million ) and a fair value of $1,334 million ( 2017 : $1,412 million ). The fair values of these 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 the yields for the risk-free yield curve and the spreads are observable market inputs, the fair values of senior notes are classified as Level 2. During the year ended December 31, 2018 , the Company redeemed its notes payable at par. At December 31, 2017 , notes payable were 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 were 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 were not actively traded their fair values were classified as Level 3. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS | The balance sheet classifications of derivatives recorded at fair value are shown in the following table. At December 31, 2018 At December 31, 2017 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 $ 79,336 $ 262 $ 531 $ 137,422 $ 10 $ 619 Interest rate swaps 150,000 — 1,116 191,000 448 1,556 Relating to underwriting portfolio: Foreign exchange forward contracts 737,419 7,975 2,576 698,959 4,667 701 Other underwriting-related contracts 85,000 — 10,299 85,000 — 11,510 Total derivatives $ 8,237 $ 14,522 $ 5,125 $ 14,386 (1) Asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. The notional amounts of derivative contracts which represent the basis upon which pay or receive amounts are calculated and are presented in the above 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. 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, 2018 December 31, 2017 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 11,967 $ (3,730 ) $ 8,237 $ 8,178 $ (3,053 ) $ 5,125 Derivative liabilities $ 18,252 $ (3,730 ) $ 14,522 $ 17,439 $ (3,053 ) $ 14,386 (1) Net asset and liability derivatives are classified within other assets and other liabilities on the consolidated balance sheets. Refer to Note 6 'Investments' for information on reverse repurchase agreements. a) Relating to Investment Portfolio Foreign Currency Risk The Company's investment portfolio is exposed to foreign currency risk therefore the fair values of its investments are partially influenced by the change in foreign exchange rates. The Company may enter into foreign exchange forward contracts to manage the effect of this foreign currency risk. These foreign currency hedging activities are not designated as specific hedges for financial reporting purposes. Interest Rate Risk The Company's investment portfolio contains a large percentage of fixed maturities which exposes 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 countries. 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 the same currencies. The Company uses derivative instruments, specifically, forward contracts 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 consisted 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 wished to minimize the upfront payment, these transactions were structured as swaps or collars. In general, the Company's portfolio of such derivative contracts was of short duration, with contracts being predominantly seasonal in nature. In order to economically hedge a portion of this portfolio, the Company also purchased 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 2018 2017 2016 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ 3,446 $ (6,935 ) $ 10,929 Interest rate swaps Net investment gains (losses) 1,999 (1,334 ) — Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) (3,509 ) 25,383 (8,179 ) Weather-related contracts Other insurance related income (losses) — (9,629 ) 4,910 Commodity contracts Other insurance related income (losses) — — (2,382 ) Other underwriting-related contracts Other insurance related income (losses) 2,384 1,476 — Total $ 4,320 $ 8,961 $ 5,278 |
RESERVE FOR LOSSES AND LOSS EXP
RESERVE FOR LOSSES AND LOSS EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserving Methodology Sources of Information The Company's 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 reserve class and further disaggregated by underwriting year and accident year. Underwriting year information is used to analyze the Company's 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. The Company's reserve classes are reviewed on a regular basis and adjusted over time as the Company's business evolves. The paid and incurred claim 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 the Company's own historical loss data versus industry data vary according to the length of the development profile for the reserve class being evaluated ( refer to 'Net Incurred and Paid Claims Development Tables By Accident Year' below for further details by reserve class). The tables below map the Company's lines of business to reserve classes and the expected claim tails: Insurance segment Reserve class and tail Property and other Marine Aviation Credit and political risk Professional lines Liability Short Short Short/Medium Medium Medium Long Reported lines of business Property X Marine X Terrorism X Aviation X Credit and political risk X Professional lines X Liability X Accident and health X Discontinued lines - Novae X X X Reinsurance segment Reserve class and tail Property and other Credit and surety Professional lines Motor Liability Short Medium Medium Long Long Reported lines of business Catastrophe X Property X Credit and surety X Professional lines X Motor X Liability X Engineering X Agriculture X Marine and other X Accident and health X Discontinued lines - Novae X X X Actuarial Analysis 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 including a discussion of their particular strengths and weaknesses: • 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, among 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, 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. Key Actuarial 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 selecting loss development patterns. Over time, more reliance has been placed on historical loss experience in establishing these ratios and selecting these patterns where the Company believes the weight of its own actual experience has become sufficiently credible for consideration. The weight given to the Company's experience differs for each of the three claim tail classes. 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. Claim Tail Analysis Short-tail Business 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 key actuarial assumptions for short-tail business in early accident years were primarily developed with reference to industry benchmarks for 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 recent and more mature accident years. The majority of development for an accident year or underwriting year is expected to be recognized in the subsequent one to three years. Medium-tail Business 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. Long-tail Business In contrast to short and medium-tail business, the claim tail for long-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's 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 Method or ELR Method and the consideration of qualitative factors. Reserving for Significant Catastrophic Events The Company cannot estimate losses from widespread catastrophic events, such as hurricanes and earthquakes, using the traditional actuarial methods described above. Loss reserves for such events are estimated by management after a catastrophe occurs by completing an in-depth analysis of individual contracts which may potentially have been 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. Selection of Reported Reserves – Management’s Best Estimate 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. 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 the RITC transaction 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. Reserve for Losses and Loss Expenses Reserve for losses and loss expenses comprise the following: As of December 31, 2018 2017 Reserve for reported losses and loss expenses $ 4,626,204 $ 5,137,659 Reserve for losses incurred but not reported 7,654,565 7,859,894 Reserve for losses and loss expenses $ 12,280,769 $ 12,997,553 Reserve Roll-forward The table below provides a reconciliation of beginning and ending net reserves for unpaid losses and loss expenses for the years indicated: Year ended December 31, 2018 2017 2016 Gross reserve for losses and loss expenses, beginning of year $ 12,997,553 $ 9,697,827 $ 9,646,285 Less reinsurance recoverable on unpaid losses, beginning of year (3,159,514 ) (2,276,109 ) (2,031,309 ) Net reserve for unpaid losses and loss expenses, beginning of year 9,838,039 7,421,718 7,614,976 Net incurred losses and loss expenses related to: Current year 3,389,949 3,487,826 2,496,574 Prior years (199,662 ) (200,054 ) (292,377 ) 3,190,287 3,287,772 2,204,197 Net paid losses and loss expenses related to: Current year (724,199 ) (703,796 ) (428,153 ) Prior years (2,368,615 ) (1,880,882 ) (1,763,696 ) (3,092,814 ) (2,584,678 ) (2,191,849 ) Foreign exchange and other (1,156,412 ) 1,713,227 (205,606 ) Net reserve for unpaid losses and loss expenses, end of year 8,779,100 9,838,039 7,421,718 Reinsurance recoverable on unpaid losses, end of year 3,501,669 3,159,514 2,276,109 Gross reserve for losses and loss expenses, end of year $ 12,280,769 $ 12,997,553 $ 9,697,827 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 2018 , 2017 and 2016 , the Company recognized net losses and loss expenses, net of reinstatement premiums, of $430 million , $835 million and $204 million , respectively, attributable to catastrophe and weather-related events. On April 16, 2018, the Company entered into a quota share retrocessional agreement with Harrington Re, a related party, which was deemed to have met the established criteria for retroactive reinsurance accounting. The Company recognized reinsurance recoverable on unpaid losses of $108 million related to this reinsurance agreement. This transaction was conducted at market rates consistent with negotiated arms-length contracts. On January 1, 2018, AXIS Managing Agency Ltd., 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 agreement was accounted for as a novation reinsurance contract. At December 31, 2018 , foreign exchange and other included a reduction in reserves for losses and loss expenses of $819 million related to this transaction. 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. 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. 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 . 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 Reserve Development Prior year reserve development arises from changes to loss and loss expense estimates related to loss events that occurred in previous calendar years. The following table presents prior year reserve development by segment: Insurance Reinsurance Total Year ended December 31, 2018 $ 92,806 $ 106,856 $ 199,662 Year ended December 31, 2017 60,459 139,595 200,054 Year ended December 31, 2016 48,978 243,399 292,377 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. These reserve classes contributed $86 million of net favorable prior year reserve development in 2018 reflecting the recognition of overall better than expected loss emergence related to the 2017 catastrophe events. These reserve classes contributed $60 million and $148 million of net favorable prior year reserve development in 2017 and 2016 , respectively, reflecting the recognition of better than expected loss emergence. Medium-tail Business Medium-tail business consists primarily of the insurance and reinsurance professional reserve classes, the insurance credit and political risk reserve class and the reinsurance credit and surety reserve class. For the year ended December 31, 2018 , the reinsurance professional reserve class recognized net favorable prior year development of $21 million ( 2017 : $44 million , 2016 : $30 million ). For the year ended December 31, 2018 , the insurance professional reserve class recognized net favorable prior year development of $32 million ( 2017 : $26 million , 2016 : $14 million ). The net favorable prior year loss development on these reserve classes continued to reflect the generally favorable experience on older accident years as the Company continued to transition to more experienced based methods. For the year ended December 31, 2018 , the reinsurance credit and surety reserve class recorded net favorable prior year reserve development of $33 million ( 2017 : $33 million , 2016 : $10 million ). The net favorable prior year reserve development was due to the recognition of generally better than expected loss emergence. Long-tail Business Long-tail business consists primarily of the insurance and reinsurance liability reserve classes and the reinsurance motor reserve class. For the year ended December 31, 2018 , the reinsurance liability reserve classes contributed net favorable prior year development of $23 million ( 2017 : $43 million , 2016 : $44 million ). For the year ended December 31, 2018 , the net favorable prior year development was due to progressively increased weight given by management to experience based indications on older accident years. For the years ended December 31, 2017 and 2016 , the net favorable prior year development was primarily due to progressively increased weight given by management to experience based indications on older accident years, which have generally been favorable. For the year ended December 31, 2018 , the insurance liability reserve class recorded net adverse prior year development of $22 million ( 2017 : $8 million , 2016 : $8 million ). The net adverse prior year reserve development on the insurance liability reserve class in 2018 was primarily related to reserve strengthening within the Company's U.S. excess casualty book of business. The net adverse prior year reserve development in 2017 and 2016 was primarily attributable to reserve strengthening within the Company's run-off Bermuda excess casualty book of business. For the year ended December 31, 2018 , the reinsurance motor reserve class contributed net favorable prior year reserve development of $23 million ( 2017 : $1 million 2016 : $55 million ). The net favorable prior year reserve development on the motor reserve class in 2018 was primarily attributable to U.K. non proportional treaty business on older accident years. The net favorable prior year development in 2017 was adversely impacted by the decrease in the discount rate used to calculate lump sum awards in U.K. bodily injury cases, known as the Ogden Rate, which changed from plus 2.5% to minus 0.75% effective March 20, 2017. The net favorable prior year reserve development on the motor reserve class in 2016 related to favorable loss emergence trends on several classes of business spanning multiple accident years. At December 31, 2018 , net reserve for losses and loss expenses includes estimated amounts for numerous catastrophe events. The magnitude and/or complexity of losses arising from these events, in particular the California Wildfires and Hurricanes Michael and Florence which occurred in 2018 as well as Hurricanes Harvey, Irma and Maria, and the two earthquakes in Mexico which occurred in 2017, inherently increase 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 loss development tables are presented on an accident year basis for 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 foreign 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. At December 31, 2018, the Company included Novae and Aviabel business in the relevant loss development tables retrospectively from the date of acquisition. With regard to Novae, the Company entered into an agreement for the RITC of the 2015 and prior years of account of Syndicate 2007 on January 1, 2018. This agreement was accounted for as a novation reinsurance contract which resulted in a reduction in reserves for losses and loss expenses of $819 million . Consequently, the retrospective treatment for the acquisition of Novae was adopted at December 31, 2018 as the data necessary to produce the loss development tables by accident year was available. With regard to Aviabel, the retrospective treatment for the acquisition was also adopted at December 31, 2018 as the data necessary to produce the loss development tables by accident year was available. 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 reserve class. 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, accident and health, and discontinued lines - Novae. 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 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 and 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. The accident and health line of business contributed net premiums earned of $208 million to this reserve class for the year ended December 31, 2018. A large increase in reported claims related to this line of business was 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. The discontinued lines - Novae includes the international direct and facultative property line of business that Novae exited or placed into run-off in the fourth quarter of 2016. 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, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 117,309 $ 99,079 $ 89,768 $ 82,460 $ 80,461 $ 78,269 $ 78,490 $ 78,150 $ 78,395 $ 77,338 $ 83 3,201 2010 175,012 155,032 147,426 122,111 116,562 115,635 115,316 114,866 113,767 867 4,422 2011 359,132 338,220 306,114 285,745 282,755 281,405 281,866 279,996 979 6,348 2012 391,646 399,473 381,746 361,476 357,267 351,673 350,827 8,992 29,931 2013 308,359 297,713 271,157 267,022 266,727 276,940 6,687 53,172 2014 360,130 354,219 343,333 327,389 326,100 5,917 62,444 2015 277,332 268,897 257,927 253,729 5,642 47,052 2016 349,152 376,458 367,362 12,290 92,867 2017 882,968 825,176 42,188 663,914 2018 712,082 187,391 730,832 Total $ 3,583,317 Insurance property and other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 31,360 $ 60,085 $ 68,653 $ 72,499 $ 73,387 $ 74,453 $ 76,673 $ 76,980 $ 77,248 $ 77,252 2010 48,575 86,886 94,912 105,719 109,933 110,008 109,794 109,837 110,171 2011 84,811 192,892 249,162 271,451 270,309 269,994 270,666 270,946 2012 77,088 213,138 277,230 300,129 307,639 312,818 312,894 2013 75,214 197,898 236,405 247,393 258,435 261,266 2014 131,991 258,098 304,609 311,730 315,797 2015 98,366 201,166 225,593 239,989 2016 122,407 287,049 327,706 2017 251,358 625,027 2018 276,472 Total 2,817,520 All outstanding liabilities before 2009, net of reinsurance 5,862 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 771,659 Insurance property and other Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 34.5% 40.2% 13.2% 5.8% 2.0% 0.8% 0.7% 0.2% 0.3% —% 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, and hull and war. Offshore energy coverage 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, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected developm |
REINSURANCE
REINSURANCE | 12 Months Ended |
Dec. 31, 2018 | |
Reinsurance Disclosures [Abstract] | |
REINSURANCE | In the normal course of business, the Company purchases treaty and facultative reinsurance protection to limit its ultimate losses from catastrophic events and reduce its loss aggregation risk. 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 the Company 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 internationally recognized rating agencies. Gross and net premiums written and earned were as follows: Year ended December 31, 2018 2017 2016 Premiums written Premiums earned Premiums written Premiums earned Premiums written Premiums earned Gross $ 6,910,065 $ 6,882,217 $ 5,556,273 $ 5,616,234 $ 4,970,208 $ 4,762,394 Ceded (2,251,103 ) (2,090,722 ) (1,529,130 ) (1,467,474 ) (1,217,234 ) (1,056,769 ) Net $ 4,658,962 $ 4,791,495 $ 4,027,143 $ 4,148,760 $ 3,752,974 $ 3,705,625 For the year ended December 31, 2018 , the Company recognized ceded losses and loss expenses of $1,565 million ( 2017 : $1,010 million ; 2016 : $556 million ). At December 31, 2018 , the Company's provision for uncollectible amounts was $21 million ( 2017 : $17 million ; 2016 : $20 million ). |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 . 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, 2018 , the Company incurred interest expense of $64 million ( 2017 : $51 million , 2016 : $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 was payable quarterly in arrears on February 15, May 15, August 15 and November 15 of each year. On November 15, 2018, the Company fully redeemed the Dekania Notes at par. Interest expense recognized in relation to the Dekania Notes included interest payable, amortization of the offering discounts and amortization of debt offering expenses. The offering discounts and debt offering expenses were amortized over the period of time during which the Dekania Notes were outstanding. For the year ended December 31, 2018 , the Company incurred interest expense of $2 million (2017: $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, 2018 is shown in the following table: Year ended December 31, 2019 $ 250,000 2020 500,000 2021 — 2022 — 2023 — After 2023 600,000 Unamortized discount and debt issuance expenses (8,039 ) Total senior notes and notes payable $ 1,341,961 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 expired 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 could be increased by up to $150 million . Under the terms of the Credit Facility, loans were available for general corporate purposes and letters of credit could have been 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 was payable based on underlying market rates at the time of loan issuance. While loans under the Credit Facility were unsecured, the Company had 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 were principally 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 guaranteed the obligations of the other parties to the Credit Facility. The Credit Facility was 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 required 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 had to maintain a minimum A.M. Best financial strength rating. In the event of default, including a breach of these covenants, the lenders had the right to 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. On March 28, 2018, the Participating Subsidiaries amended their existing $250 million secured letter of credit facility with Citibank Europe plc (the " $250 Million Facility") under their aggregate $750 million secured letter of credit facility with Citibank Europe plc (the " $750 million Facility") to extend the expiration date to March 31, 2019. The terms and conditions of the $500 million secured letter of credit facility under the $750 million Facility remain unchanged. The $500 million secured letter of credit facility expires December 31, 2019. Letters of credit issued under the $750 million Facility will principally be used to support the reinsurance obligations of the Participating Subsidiaries. The Participating Subsidiaries are subject to certain covenants, including the requirement to maintain sufficient collateral to cover the obligations outstanding under the $750 million Facility. 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 $750 million Facility to any or all of the Participating Subsidiaries. At December 31, 2018 , letters of credit outstanding under the LOC Facility totaled $395 million . At December 31, 2018 , the Company was in compliance with all LOC Facility covenants. Novae Syndicated Bank Facility On August 2, 2016, Novae entered into a syndicated bank financing facility, which provided 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 were 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, 2018 | |
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 on unpaid and paid claims and insurance and reinsurance premiums balances receivable, 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 credit risk through diversification, issuer exposure limits 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, 2018 , the Company was in compliance with these limits. (ii) Reinsurance Recoverable on Unpaid and Paid Losses The Company is exposed to the credit risk associated with reinsurance recoverable on unpaid and paid losses to the extent that any of its reinsurers fail to meet their obligations under reinsurance contracts. To help mitigate this risk, the Company's purchase of reinsurance 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, 2018 , the three largest balances by reinsurer accounted for 13% , 10% and 10% ( 2017 : 12% , 11% and 7% ) of reinsurance recoverable on unpaid and paid losses. At December 31, 2018 , 89.5% (December 31, 2017: 88.8% ) of the Company's reinsurance recoverable on unpaid and paid losses were collectible from reinsurers rated the equivalent of A- or better by internationally recognized rating agencies. (iii) Insurance and Reinsurance Premium Balances Receivable The diversity of the Company's client base limits the credit risk associated with its insurance and reinsurance 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 against corresponding payments for losses and loss expenses. Brokers and other intermediaries collect premiums from customers on behalf of the Company. The Company has procedures 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, together with the 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, 2018 , the Company recorded an allowance for estimated uncollectible premium balances receivable of $4 million ( 2017 : $6 million ). For the year ended December 31, 2018 , bad debt expense was $ nil ( 2017 : $ 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, 2018 , three brokers accounted for 43% ( 2017 : 49% ; 2016 : 52% ) of gross premiums written. Marsh & McLennan Companies Inc. accounted for 17% ( 2017 : 20% ; 2016 : 21% ), Aon plc accounted for 17% ( 2017 : 17% ; 2016 : 19% ), and Willis Tower Watson PLC accounted for 9% ( 2017 : 12% ; 2016 : 12% ). 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, 2018 , operating lease expense was $33 million ( 2017 : $29 million ; 2016 : $25 million ). Future minimum lease payments are expected to be as follows: Year ended December 31, 2019 $ 28,240 2020 25,331 2021 27,025 2022 28,012 2023 23,801 Later years 118,497 Total future minimum lease payments $ 250,906 d) Reinsurance Purchase Commitment In the normal course of business, the Company purchases reinsurance and retrocessional (collectively referred to as "reinsurance") protection for its insurance and reinsurance lines of business. Minimum reinsurance premiums are contractually due in advance on a quarterly basis. At December 31, 2018 , the Company had outstanding reinsurance purchase commitments of $39 million , all of which is due before March 31, 2022. Actual payments under the reinsurance contracts will depend on the underlying subject premium and may exceed the minimum premium. e) Legal Proceedings From time to time, 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 related to these proceedings are included in the reserve for losses and loss expenses in the Company's consolidated balance sheets. The Company is not party to any material legal proceedings arising outside the ordinary course of business. f) Investments At December 31, 2018 the Company has $ 507 million ( 2017 : $414 million ) of unfunded investment commitments related to its other investment portfolio, which are callable by investment managers (refer to Note 6(c) ' Investments '). At December 31, 2018 the Company has $4 million ( 2017 : $16 million ) of unfunded investment commitments to purchase commercial mortgage loans. g) 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, 2018 , investments and cash of $1.3 billion ( 2017 : $1.2 billion ) were restricted to satisfy the Company's FAL requirements (refer to Note 6 'Investments' and Note 20 ' Statutory Financial Information' ). |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | The following table presents a comparison of earnings (loss) per common share and earnings (loss) per diluted common share: At and year ended December 31, 2018 2017 2016 Earnings (loss) per common share Net income (loss) $ 43,021 $ (368,969 ) $ 513,368 Less: Preferred share dividends 42,625 46,810 46,597 Less: Loss on repurchase of preferred shares — — 1,309 Net income (loss) available (attributable) to common shareholders $ 396 $ (415,779 ) $ 465,462 Weighted average common shares outstanding 83,501 84,108 90,772 Earnings (loss) per common share $ — $ (4.94 ) $ 5.13 Earnings (loss) per diluted common share Net income (loss) available (attributable) to common shareholders $ 396 $ (415,779 ) $ 465,462 Weighted average common shares outstanding 83,501 84,108 90,772 Share-based compensation plans (1) 506 — 775 Weighted average diluted common shares outstanding (1) 84,007 84,108 91,547 Earnings (loss) per diluted common share $ — $ (4.94 ) $ 5.08 Weighted average anti-dilutive shares excluded from the dilutive computation 245 702 170 (1) 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, 2018 | |
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 stock units related to the Company's share-based compensation plans (refer to Note 16 ' Share-Based Compensation' ): Year ended December 31, 2018 2017 2016 Shares issued, balance at beginning of year 176,580 176,580 176,240 Shares issued — — 340 Total shares issued at end of year 176,580 176,580 176,580 Treasury shares, balance at beginning of year (93,419 ) (90,139 ) (80,174 ) Shares repurchased (200 ) (4,288 ) (10,508 ) Shares reissued 625 1,008 543 Total treasury shares at end of year (92,994 ) (93,419 ) (90,139 ) Total shares outstanding 83,586 83,161 86,441 During 2018 , the total cash dividends declared per common share were $1.57 ( 2017 : $1.53 ; 2016 : $1.43 ). 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 or 2019. The following table presents common shares repurchased from shares held in treasury: Year ended December 31, 2018 2017 2016 In the open market: Total shares (1) — 3,932 10,241 Total cost $ — $ 261,180 $ 557,476 Average price per share (2) $ — $ 66.43 $ 54.44 From employees: (3) Total shares 200 356 267 Total cost $ 10,080 $ 24,678 $ 14,329 Average price per share (2) $ 50.40 $ 69.36 $ 53.74 Total shares repurchased: Total shares 200 4,288 10,508 Total cost $ 10,080 $ 285,858 $ 571,805 Average price per share (2) $ 50.40 $ 66.67 $ 54.42 (1) Amounts in 2016 include common shares acquired under the accelerated share repurchase program of 1,358,380 (see below for more detail). (2) Calculated using whole numbers. (3) Shares are repurchased from employees to satisfy withholding tax liabilities that arise upon the vesting of restricted stock awards and restricted stock units. 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 the activation of the program. The ASR program was accounted for as an equity transaction. 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 could 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 were non-cumulative. Holders of Series B preferred shares were 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 accumulated, 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 was recognized in determining net income available to common shareholders. 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 could 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 were non-cumulative. Holders of the Series C preferred shares were 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 accumulated, 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 , was recognized in determining net income available to common shareholders. On April 17, 2017, the Company redeemed the remaining 14,042,955 Series C preferred shares, for an aggregate liquidation preference of $351 million . In 2017 , the total dividends declared and paid on Series C preferred shares were $0.4297 per share. In 2016 , the total dividends declared and paid on Series C preferred shares were $1.7188 per share. 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. At December 31, 2018 , the Company had not redeemed any of the $225 million of 5.50% Series D preferred shares. In 2018 , total dividends declared on Series D preferred shares were $1.375 per share, of which $1.0313 was paid in 2018 and the remaining $0.34375 is payable in 2019. In 2017 , total dividends declared on Series D preferred shares were $1.3750 per share, of which $1.0313 was paid in 2017 and $0.3438 was paid in 2018. In 2016 , total dividends declared and paid on Series D preferred shares were $1.375 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 2018 , total dividends declared on Series E preferred shares were $137.5 per share of which, $103.13 was paid in 2018 and the remaining $34.375 was paid in 2019. In 2017 , total dividends declared and paid on Series E preferred shares were $137.5 per share of which, $103.13 was paid in 2017 and $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, 2018 | |
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. In addition, employees are permitted to make additional contributions from any bonus received and to benefit from discretionary employer contribution to the Plan. During 2018 , total pension expenses were $27 million ( 2017 : $24 million and 2016 : $23 million ) for the above retirement benefits. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2018 | |
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 shares, restricted stock units (share-settled awards and cash-settled awards), performance units (share-settled awards and cash-settled awards), stock options, stock appreciation rights and other equity-based awards to the Company's employees and directors. The 2017 Plan authorizes the issuance of a total of 3,400,000 common 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, 2018 , 2,824,592 equity-based awards remained available for grant pursuant to the 2017 Plan. The grant date fair value of each award is established at the fair market value of the Company's common shares at the date of grant. Restricted Stock Awards Restricted stock awards ("RSAs") granted pursuant to the 2007 Plan generally vest in accordance with a four year graded vesting schedule in four annual installments beginning on the grant date. Share-Settled Restricted Stock Units Restricted stock units ("RSUs") granted pursuant to the 2017 Plan or the 2007 Plan either cliff vest at the end of a three year period, vest in accordance with a three year graded vesting schedule, or vest in accordance with a four year graded vesting schedule in four annual installments beginning on 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 accordance with a four year graded vesting schedule in four annual installments beginning on the grant date. 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. Compensation expense is recognized on a straight-line basis over the applicable requisite service period and is subject to periodic adjustment based upon the achievement of established performance criteria during the applicable performance 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 an activity summary of the Company's share-settled RSUs: Share-Settled PSUs Share-Settled Service Based RSUs Number of restricted stock units Weighted average grant date fair value (1) Number of restricted stock units Weighted average grant date fair value (1) Nonvested restricted stock - 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 Granted 104 48.89 737 49.36 Vested (87 ) 54.71 (539 ) 54.51 Forfeited (15 ) 53.80 (142 ) 55.36 Nonvested restricted stock - December 31, 2018 232 $ 54.54 1,411 $ 54.12 (1) Fair value is based on the closing price of the Company's common shares on the grant date. (2) Share-settled restricted stock units that vested during the year ended December 31, 2017 included 313,391 service based restricted stock units which were granted in 2014 and were subject to a three year cliff vesting period. b) Cash-Settled Awards The following table provides an activity summary of the Company's cash-settled RSUs: Cash-Settled PSUs Cash-Settled Service based RSUs Number of restricted stock units Number of restricted stock units 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 Granted — 473 Vested (12 ) (390 ) Forfeited (3 ) (139 ) Nonvested restricted stock units - December 31, 2018 27 932 (1) Cash-settled restricted stock units that vested during the year ended December 31, 2017 included 307,556 service based restricted stock units which were granted in 2014 and were subject to a three year cliff vesting period. At December 31, 2018 , the liability for cash-settled restricted stock units, included in other liabilities in the consolidated balance sheets, was $21 million ( 2017 : $22 million ). During the year ended December 31, 2018 , the fair value of share-settled restricted stock units and cash-settled restricted stock units that vested was $51 million ( 2017 : $125 million , including $44 million attributable to service based restricted stock units which were granted in 2014 and were subject to a three year cliff vesting period; 2016 : $67 million ). At December 31, 2018 , there was $87 million ( 2017 : $94 million ) of unrecognized share-based compensation costs which are expected to be recognized over the weighted average period of 2.4 years ( 2017 : 2.5 years ). For the year ended December 31, 2018 the Company incurred share-based compensation costs of $54 million ( 2017 : $68 million ; 2016 : $74 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 $8 million ( 2017 : $15 million ; 2016 : $16 million ). |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , total fees paid to SKY Harbor Capital Management, LLC, were $2 million ( 2017 : $2 million ; 2016 : $3 million ). The Company has invested $18 million in NXT Capital Senior Loan Fund II and $20 million in NXT Capital Senior Loan Fund III. The manager of these funds is an indirect subsidiary of NXT Capital Inc. ("NXT Capital"). Investment funds managed by Stone Point indirectly owned approximately 43% of NXT Capital until this ownership interest was sold in August 2018. For the year ended December 31, 2018 , fees paid to NXT Capital were $1 million ( 2017 : $1 million ; 2016: $1 million ). In addition, the Company has invested $50 million in 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, 2018 , fees paid to Freedom were $2 million ( 2017 : $1 million ). The Company's Chairman, Mr. Butt received consulting fees for the year ended December 31, 2018 of $0.5 million ( 2017 : $0.5 million ; 2016: $0.6 million ) pursuant to the terms of a consulting agreement by and between Mr. Butt and the Company dated May 3, 2012, as amended. The consulting agreement was further amended on December 5, 2018 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 operating and financial policies of the investee. 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, 2018, the Company has $450 million ( 2017 : $451 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 (refer to 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, 2018 , the Company ceded reinsurance premiums of $194 million ( 2017 : $213 million ) and ceded losses of $142 million ( 2017 : $119 million ) to Harrington Re. In addition, Harrington Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2018 , the amount of reinsurance recoverable on unpaid and paid losses was $363 million ( 2017 : $152 million ) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $115 million ( 2017 : $142 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, 2018 , the Company ceded premiums of $182 million ( 2017 : $107 million ) and ceded losses of $138 million ( 2017 : $126 million ) to Ventures Re. In addition, Ventures Re paid certain acquisition costs and administrative fees to the Company. At December 31, 2018 , the amount of reinsurance recoverable on unpaid and paid losses was $186 million ( 2017 : $131 million ) and the amount of ceded reinsurance payable included in insurance and reinsurance balances payable was $67 million ( 2017 : $17 million ) in the consolidated balance sheets. All transactions were conducted at market rates consistent with negotiated arms-length contracts. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
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 2015 through 2018. 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 2015 through 2018. 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 2014 through 2018. 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 2014 through 2018. 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, 2018 2017 2016 Current income tax expense (benefit) U.S. $ (5,401 ) $ (6,207 ) $ 606 Europe 10,409 10,249 7,451 Other 51 — — Deferred income tax expense (benefit) U.S. 15,288 18,495 (1,829 ) Europe (49,833 ) (30,079 ) 112 Total income tax expense (benefit) $ (29,486 ) $ (7,542 ) $ 6,340 Net current tax receivables (payables) $ 9,683 $ (639 ) $ 3,540 Net deferred tax assets 39,775 4,438 103,313 Net tax assets $ 49,458 $ 3,799 $ 106,853 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, 2018 2017 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 37,440 $ 27,804 Unearned premiums 40,447 25,188 Net unrealized investments losses 11,438 — Operating and capital loss carryforwards (1) 83,850 53,095 Accruals not currently deductible 32,589 31,560 Tax credits 8,672 29,929 Other deferred tax assets 9,195 15,047 Deferred tax assets before valuation allowance 223,631 182,623 Valuation allowance (18,955 ) (16,157 ) Deferred tax assets net of valuation allowance 204,676 166,466 Deferred tax liabilities: Deferred acquisition costs (39,745 ) (24,249 ) Net unrealized investments gains — (8,033 ) Amortization of VOBA, intangible assets and goodwill (49,097 ) (85,296 ) Equalization reserves (22,069 ) (23,274 ) Other deferred tax liabilities (53,990 ) (21,176 ) Deferred tax liabilities (164,901 ) (162,028 ) Net deferred tax assets $ 39,775 $ 4,438 (1) At December 31, 2018 and 2017, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $68 million and $19 million , respectively. 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 at December 31, 2017 by $41.6 million . 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 dates. Total operating and capital loss carryforwards and tax credits are summarized in the following table: At December 31, 2018 2017 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 79,445 $ 77,467 U.K. operating loss carryforward (2) 413,504 126,839 Ireland operating loss carryforward 12,756 — U.S. operating loss carryforward 15,062 115,236 Ireland capital loss carryforward 716 716 Tax Credits (1) Ireland foreign tax credit $ 2,248 $ 3,566 U.S. alternative minimum tax credit (3) 6,026 12,052 U.K. tax credit 398 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) At December 31, 2018 and 2017, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $403 million and $113 million , respectively. (3) As a result of U.S. tax reform, all alternative minimum tax credits will be refunded by tax year 2021. An analysis of the movement in the Company's valuation allowance is shown in the following table: At December 31, 2018 2017 Income tax expense: Valuation allowance - beginning of year $ 16,157 $ 41,100 Operating loss carryforwards 198 (27,116 ) Foreign tax credit (1,359 ) 267 U.K. branch assets and other foreign rate differentials (205 ) 1,006 U.S. alternative minimum tax credits (900 ) 900 Valuation allowance - end of year $ 13,891 $ 16,157 Accumulated other comprehensive income: Valuation allowance - beginning of year — — Change in investment - related items 5,064 — Valuation allowance - end of year 5,064 — Total valuation allowance - end of year $ 18,955 $ 16,157 At December 31, 2018 and 2017 , the Company established a full valuation allowance on: (1) operating and capital loss carryforwards relating to operations in Singapore; (2) un-utilized foreign tax credits available in Ireland and (3) certain other deferred tax assets related to branch operations. At December 31, 2018 , the Company established a valuation allowance on certain unrealized investment losses. 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. At December 31, 2018 and 2017 , 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, 2018 2017 2016 Income (loss) before income taxes Bermuda (domestic) $ 181,597 $ (188,420 ) $ 469,306 Foreign (168,062 ) (188,091 ) 50,402 Total income before income taxes $ 13,535 $ (376,511 ) $ 519,708 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. 65.7 % 6.6 % (0.6 )% Europe (289.7 )% 5.8 % 1.5 % Other — % 0.3 % — % Valuation allowance (13.4 )% — % 0.2 % Net tax exempt income (3.3 )% 0.1 % (0.2 )% Change in U.S. enacted tax rate — % (11.1 )% — % Change in European enacted tax rate 16.9 % — % — % Other 5.9 % 0.3 % 0.3 % Actual tax rate (217.9 )% 2.0 % 1.2 % |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): Before tax amount Tax (expense) benefit Net of tax amount Year ended December 31, 2018 Available for sale investments: Unrealized investment gains (losses) arising during the year $ (297,259 ) $ 5,528 $ (291,731 ) Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income 105,730 (4,828 ) 100,902 Unrealized investment gains (losses) arising during the year, net of reclassification adjustment (1) (191,529 ) 700 (190,829 ) Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (11,165 ) — (11,165 ) Total other comprehensive income (loss), net of tax $ (202,694 ) $ 700 $ (201,994 ) Year ended December 31, 2017 Available for sale investments: Unrealized investment gains (losses) arising during the year $ 211,151 $ (5,732 ) $ 205,419 Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income (33,892 ) 758 (33,134 ) Unrealized investment gains (losses) 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 (loss), net of tax $ 219,197 $ (4,974 ) $ 214,223 Year ended December 31, 2016 Available for sale investments: Unrealized investment gains (losses) arising during the year $ 10,165 $ (5,093 ) $ 5,072 Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income 60,423 1,767 62,190 Unrealized investment gains (losses) 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 (loss), net of tax $ 69,950 $ (3,326 ) $ 66,624 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. The adoption of this guidance resulted in a cumulative adjustment to reclassify unrealized investment gains on equity securities from accumulated other comprehensive income to retained earnings. Refer to Item 8, Note 2 ' Basis of Presentation and Significant Accounting Policies ' to the consolidated financial statements for additional information. The following table presents reclassification amounts from accumulated other comprehensive income ("AOCI") to net income (loss) available (attributable) to common shareholders: Amount reclassified from AOCI (1) Details about AOCI components Consolidated statement of operations line item that includes reclassification Year ended December 31, 2018 2017 2016 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ (95,997 ) $ 48,385 $ (34,213 ) OTTI losses (9,733 ) (14,493 ) (26,210 ) Total before tax (105,730 ) 33,892 (60,423 ) Income tax (expense) benefit 4,828 (758 ) (1,767 ) Net of tax $ (100,902 ) $ 33,134 $ (62,190 ) Foreign currency translation adjustments Foreign exchange loss $ — $ (24,149 ) $ — Income tax (expense) benefit — — — Net of tax $ — $ (24,149 ) $ — (1) Amounts in parentheses are charges to net income (loss) available (attributable) 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 Company released the cumulative translation adjustment related to AXIS Specialty Australia of $24 million from AOCI in the consolidation balance sheet to foreign exchange losses (gains) in the consolidated statement of operations. |
STATUTORY FINANCIAL INFORMATION
STATUTORY FINANCIAL INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY FINANCIAL INFORMATION | The Company's insurance and reinsurance 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. In addition, the Company is regulated by 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, 2018 and 2017 , 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, 2018 2017 2018 2017 2018 2017 Required statutory capital and surplus $ 1,470,375 $ 1,800,064 $ 637,226 $ 613,923 $ 489,560 $ 488,560 Available statutory capital and surplus $ 3,513,342 $ 3,641,279 $ 896,868 $ 906,512 $ 1,668,847 $ 1,511,480 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 and 25% of the ECR. The Company's ECR is calculated based on 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, 2018 and 2017 , 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, 2018 , 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 ( 2017 : $0.9 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 2018 and 2017 , 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, 2018 , the maximum dividend the Company's Irish subsidiaries could pay, having met their solvency and capital requirements was approximately $37 million ( 2017 : $52 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, 2018 , the maximum dividend that the Company's U.S. insurance operations could pay without regulatory approval was approximately $130 million ( 2017 : $115 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 Ltd. ("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. The Company owned Lloyd’s managing agency, Novae Syndicates Limited ("NSL"), which operated in the Lloyd’s insurance market and managed Syndicate 2007 and SPA 6129, until it was deregistered in 2018. 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. SPA 6129 commenced trading on January 1, 2016, as a collaboration between Novae and Securis Investment Partners LLP, an insurance linked securities fund manager. For the three months ended December 31, 2017, NSL received a managing agency fee from SPA 6129. For the year ended December 31, 2018, AXIS Managing Agency received a managing agency fee from SPA 6129. The Company ended its collaboration with SPA 6129 in 2018. 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 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 Solvency II. FAL may be satisfied by cash, certain investments and letters of credit provided by approved banks. At December 31, 2018 , fixed maturities and short term investments with a fair value of $715 million ( 2017 : $557 million ) and cash of $8 million ( 2017 : $12 million ), respectively, were restricted to satisfy AXIS Corporate Capital UK Limited FAL requirements. At December 31, 2018 , fixed maturities and short term investments with a fair value of $528 million ( 2017 : $564 million ), equity securities with a fair value of $40 million ( 2017 : $59 million ), and cash of $16 million ( 2017 : $ nil ) were restricted to satisfy Novae Corporate Underwriting Limited FAL requirements (refer to Note 6 ' Investments '). Each year, corporate members can 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, 2018 and 2017 , actual capital and assets exceeded the FAL requirements for Syndicates 1686 and 2007. During 2018 , Syndicate 1686 and 2007 did not apply to release funds for the year ended December 31, 2017 . During 2017 , the release of funds for Syndicate 1686 for the year ended December 31, 2016 was $1.6 million and the release of funds for Syndicate 2007 for the year ended December 31, 2016 was $41 million . 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, 2018 and 2017 , 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 $268 million , $(94) million , $598 million for 2018 , 2017 and 2016 , 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 investment gains (losses) on fixed maturities or certain unauthorized reinsurance recoverable balances. |
UNAUDITED CONDENSED QUARTERLY F
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Net premiums earned $ 1,167,402 $ 1,185,548 $ 1,224,075 $ 1,214,469 Net investment income 100,999 109,960 114,421 113,128 Net investment losses (14,830 ) (45,093 ) (17,628 ) (72,667 ) Underwriting income (loss) 143,737 115,726 59,026 (194,664 ) Net income (loss) available (attributable) to common shareholders 62,546 92,858 43,439 (198,448 ) Earnings (loss) per common share $ 0.75 $ 1.11 $ 0.52 $ (2.37 ) Earnings (loss) per diluted common share $ 0.75 $ 1.11 $ 0.52 $ (2.37 ) 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 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 (attributable) to common shareholders 5,014 85,030 (467,740 ) (38,081 ) Earnings (loss) per common share $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) Earnings (loss) per diluted common share $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) (1) During the three months ended March 31, June 30, September 30 and December 31, 2018, the Company recognized transaction and reorganization expenses of $13 million , $19 million , $16 million and $19 million , respectively, related to its transformation program which was launched in 2017. This program encompasses the integration of Novae which commenced in the fourth quarter of 2017, the realignment of the accident and health business, together with other initiatives designed to increase the Company's efficiency and enhance the Company's profitability while delivering a customer-centric operating model. 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. (2) During the three months ended March 31, June 30, September 30 and December 31, 2018, the Company recognized amortization of VOBA of $57 million , $53 million , $39 million , $23 million , respectively, related to the acquisition of Novae. During the three months ended December 31, 2017, the Company recognized amortization of VOBA of $50 million . Refer to Item 8, Note 3 and Note 5 to the Consolidated Financial Statements ' Business Combinations ' and ' Goodwill and Intangible Assets ' for further details. (3) During the three months ended December 31, 2017, the Company recognized tax expense of $42 million due to the revaluation of net deferred tax asset pursuant to the U.S. Tax Reform. Refer to Item 8, Note 18 to the Consolidated Financial Statements 'Income Taxes' for further details. |
SCHEDULE I - SUMMARY OF INVESTM
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-15, Insurance Companies, 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, 2018 Amortized cost Fair value Amount shown on the balance sheet (in thousands) Type of investment: Fixed maturities U.S. government and agency $ 1,520,142 $ 1,515,697 $ 1,515,697 Non-U.S. government 507,550 493,016 493,016 Corporate debt 4,990,279 4,876,921 4,876,921 Agency RMBS 1,666,684 1,643,308 1,643,308 CMBS 1,103,507 1,092,530 1,092,530 Non-Agency RMBS 40,732 40,687 40,687 ABS 1,651,350 1,637,603 1,637,603 Municipals 136,068 135,585 135,585 Total fixed maturities $ 11,616,312 11,435,347 11,435,347 Mortgage loans, at amortized cost and fair value 298,650 298,650 Short-term investments, at amortized cost and fair value 144,040 144,040 Equity securities 381,633 381,633 Other investments (1) 445,792 787,787 Equity method investments (2) — 108,103 Total investments $ 12,705,462 $ 13,155,560 (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, 2018 | |
Condensed Financial Information Disclosure [Abstract] | |
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY | AXIS CAPITAL HOLDINGS LIMITED CONDENSED BALANCE SHEETS – PARENT COMPANY DECEMBER 31, 2018 AND 2017 2018 2017 (in thousands) Assets Investments in subsidiaries $ 5,320,828 $ 5,532,396 Cash and cash equivalents 3,099 10,541 Other assets 9,647 9,480 Total assets $ 5,333,574 $ 5,552,417 Liabilities Intercompany payable $ 247,992 $ 160,950 Dividends payable 51,157 49,907 Other liabilities 4,354 296 Total liabilities 303,503 211,153 Shareholders’ equity Preferred shares 775,000 775,000 Common shares (shares issued 2018: 176,580; 2017: 176,580 2,206 2,206 Additional paid-in capital 2,308,583 2,299,166 Accumulated other comprehensive (income) loss (177,110 ) 92,382 Retained earnings 5,912,812 5,979,666 Treasury shares, at cost (2018: 92,994; 2017: 93,419) (3,791,420 ) (3,807,156 ) Total shareholders’ equity 5,030,071 5,341,264 Total liabilities and shareholders’ equity $ 5,333,574 $ 5,552,417 (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 senior obligations 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 senior obligations 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 senior obligations and rank equally with all other senior obligations of AXIS Capital. (4) On February 15, 2018, AXIS Capital contributed $105 million to AXIS Specialty Global Holdings to support the capital requirements of its U.S. subsidiaries. SCHEDULE II AXIS CAPITAL HOLDINGS LIMITED CONDENSED STATEMENTS OF OPERATIONS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 2018 2017 2016 (in thousands) Revenues Net investment income (1) $ 900 $ 2,116 $ 656 Total revenues 900 2,116 656 Expenses General and administrative expenses 29,250 34,933 39,909 Total expenses 29,250 34,933 39,909 Income (loss) before equity in net income (loss) of subsidiaries (28,350 ) (32,817 ) (39,253 ) Equity in net income (loss) of subsidiaries 71,371 (336,152 ) 552,621 Net income (loss) 43,021 (368,969 ) 513,368 Preferred share dividends 42,625 46,810 46,597 Loss on repurchase of preferred shares — — 1,309 Net income (loss) available (attributable) to common shareholders $ 396 $ (415,779 ) $ 465,462 Comprehensive income (loss) $ (158,973 ) $ (154,746 ) $ 579,992 (1) On April 15, 2017 a 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 CASH FLOWS – PARENT COMPANY YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 2018 2017 2016 (in thousands) Cash flows from operating activities: Net income (loss) $ 43,021 $ (368,969 ) $ 513,368 Adjustments to reconcile net income (loss) to net cash provided by operating activities: Equity in net income (loss) of subsidiaries (71,371 ) 336,152 (552,621 ) Change in intercompany payable 87,042 94,827 33,286 Dividends received from subsidiaries 200,000 400,000 550,000 Other items (79,927 ) 4,988 17,807 Net cash provided by operating activities 178,765 466,998 561,840 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 ) Taxes paid on withholding shares (10,080 ) (24,678 ) (14,329 ) Dividends paid - common shares (133,502 ) (135,032 ) (132,323 ) Repurchase of preferred shares — (351,074 ) (51,769 ) Dividends paid - preferred shares (42,625 ) (52,844 ) (39,909 ) Proceeds from issuance of common shares — — 224 Net cash used in financing activities (186,207 ) (824,808 ) (201,587 ) Increase (decrease) in cash, cash equivalents and restricted cash (7,442 ) 10,442 (7,999 ) Cash, cash equivalents and restricted cash - beginning of year 10,541 99 8,098 Cash, cash equivalents and restricted cash - end of year $ 3,099 $ 10,541 $ 99 |
SCHEDULE III - SUPPLEMENTARY IN
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-16, Insurance Companies, Supplementary Insurance Information [Abstract] | |
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY INSURANCE INFORMATION At and year ended December 31, 2018 (in thousands) Deferred acquisition costs Reserve for losses and loss expenses Unearned premiums Net premiums earned Net investment income (1) Net losses and loss expenses Acquisition costs Other operating expenses (2) Net premiums written Insurance $ 209,622 $ 6,426,309 $ 2,061,123 $ 2,362,606 $ — $ 1,494,323 $ 399,193 $ 395,252 $ 2,324,747 Reinsurance 357,000 5,854,460 1,574,635 2,428,889 — 1,695,964 569,642 123,916 2,334,215 Corporate — — — — 438,507 — — 108,221 — Total $ 566,622 $ 12,280,769 $ 3,635,758 $ 4,791,495 $ 438,507 $ 3,190,287 $ 968,835 $ 627,389 $ 4,658,962 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) Net losses and loss expenses Acquisition costs Other operating expenses (2) Net premiums written Insurance $ 115,332 $ 7,011,805 $ 2,053,422 $ 1,816,438 $ — $ 1,465,427 $ 270,229 $ 325,368 $ 1,775,825 Reinsurance 358,729 5,985,748 1,587,977 2,332,322 — 1,822,345 553,362 124,115 2,251,318 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) Net losses and loss expenses Acquisition costs Other operating expenses (2) Net premiums written Insurance $ 100,149 $ 5,198,070 $ 1,423,891 $ 1,534,282 $ — $ 977,771 $ 206,619 $ 327,351 $ 1,519,559 Reinsurance 338,487 4,499,757 1,545,607 2,171,343 — 1,226,426 540,257 155,350 2,233,415 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 (1) We evaluate the underwriting results of each of our reportable segments separately from the performance of our investment portfolio therefore, 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, these expenses are excluded 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, 2018 | |
SEC Schedule, 12-17, Insurance Companies, Reinsurance [Abstract] | |
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION | AXIS CAPITAL HOLDINGS LIMITED SUPPLEMENTARY REINSURANCE INFORMATION YEARS ENDED DECEMBER 31, 2018 , 2017 AND 2016 (in thousands) DIRECT GROSS PREMIUM CEDED TO OTHER COMPANIES ASSUMED FROM OTHER COMPANIES NET AMOUNT PERCENTAGE OF AMOUNT ASSUMED TO NET 2018 Property and Casualty $ 3,258,999 $ 2,163,417 $ 3,074,906 $ 4,170,488 73.7 % Accident and Health 209,041 87,686 367,119 488,474 75.2 % Total $ 3,468,040 $ 2,251,103 $ 3,442,025 $ 4,658,962 73.9 % 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 % |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of presentation | Tabular dollar and share amounts are in thousands, with the exception of per share amounts. All amounts are reported in U.S. dollars. These consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("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. |
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. |
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; • fair value measurements of financial assets and liabilities; and • other-than-temporary impairments ("OTTI") in the carrying value of available-for-sale securities. |
Investments | Fixed Maturities, Available-for-sale, at Fair Value Fixed maturities classified as available-for-sale are reported at fair value (refer to Note 7 ' Fair Value Measurements '). The change in fair values (net unrealized investment gains (losses)) of fixed maturities, net of tax is recognized in accumulated other comprehensive income (loss) ("AOCI") in the consolidated statement of change shareholders’ equity. Net investment income includes interest 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 fixed maturities are recorded on a trade-date basis and realized investment gains (losses) on sales of fixed maturities are determined based on the specific identification method. Realized investment gains (losses) on fixed maturities are included in net investments gains (losses) in the consolidated statements of operations. The Company recognizes investment income from fixed maturities based on the constant effective yield method, which includes an adjustment for estimated principal repayments, if applicable. The effective yield used to determine the amortization of fixed maturities subject to prepayment risk (e.g. asset-backed, mortgage-backed and other structured securities) is recalculated and adjusted periodically based upon historical and/or projected future cash flows. Adjustments to the yield for highly-rated prepayable fixed maturities are accounted for using the retrospective method. Adjustments to the yield for other prepayable fixed maturities are accounted for using the prospective method. A fixed maturity is impaired if the fair value of the investment is below amortized cost. On a quarterly basis, the Company assesses whether unrealized investment losses on fixed maturities represent impairments that are other-than-temporary. The Company's impairment review process begins with a quantitative analysis to identify securities to be evaluated for potential OTTI. For identified securities, fundamental analysis is performed that considers the following quantitative and qualitative factors: (i) the duration and the extent of the decline; (ii) the financial condition, near-term and long-term prospects of the issuer of the security; (iii) 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; and (v) the collateral structure and credit support of the security, if applicable. If a fixed maturity is impaired and 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. In these instances, the full amount of the impairment is charged to net income and is included in net investment gains (losses). In instances where the Company intends to hold the impaired fixed maturity, the Company estimates the anticipated credit loss on the security and recognizes this component of the impairment in net income with a corresponding adjustment to amortized cost (new cost basis) of the security. The new cost basis is adjusted for subsequent increases in fair value where 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. The Company recognizes the non-credit component of the impairment (i.e. related to interest rates, market conditions, etc.) in other comprehensive income. Equity Securities, at Fair Value Following the adoption of Accounting Standards Update ("ASU") 2016-01 "Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities , " (refer to ' New Accounting Standards Adopted in 2018' below) Equity securities are reported at fair value (refer to Note 7 ' Fair Value Measurements '). Effective January 1, 2018, following the adoption of ASU 2016-01, the change in the fair values (net unrealized investment gains (losses)) of equity securities, net of tax is recognized in net investments gains (losses) in the consolidated statements of operations. Net investment income includes dividend income and is presented net of investment expenses. Investment income is recognized when earned. Purchases and sales of equity securities are recorded on a trade-date basis and realized investment gains (losses) on sales of equity securities are determined based on the specific identification method. Realized investment gains (losses) on equity securities are included in net investments gains (losses) in the consolidated statements of operations. Prior to the Adoption of ASU 2016-01 Equity securities are reported at fair value. Prior to the adoption of ASU 2016-01, the change in the fair values (net unrealized investment gains (losses)) of equity securities, net of tax was recognized in AOCI in the consolidated statement of changes in shareholders’ equity. An equity security is impaired if the fair value of the investment is below cost. On a quarterly basis, the Company assessed whether unrealized investment losses on equity securities represented impairments that are other-than-temporary and recognized impairments on equity securities in an unrealized loss position when the Company did 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 was charged to net income and was included in net realized investment gains (losses) in the consolidated statements of operations. Upon recognition of an other-than-temporary impairment ("OTTI") charge, the new cost basis for the equity security was the cost for an equity security less the OTTI charge recognized in net income. The new cost basis was not adjusted for subsequent increases in fair value. Mortgage Loans Held-for-investment Mortgage loans held-for-investment are reported at amortized cost which is calculated as the unpaid principal balance, adjusted for any unamortized premium or discount, deferred fees or expenses, and is net of valuation allowances. Interest income and prepayment fees are recognized when earned. Interest income is recognized based on an effective yield method which gives 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 in the consolidated statements of operations. 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 these 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 equivalents include money-market funds, fixed interest deposits and reverse repurchase agreements 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 to support of obligations in regulatory jurisdictions where the Company operates as a non-admitted carrier and to support the underwriting activities of Syndicate 1686 and Syndicate 2007 at 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 on 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 adjustments to insurance and reinsurance premium estimates are recognized in the period in which 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 relates 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 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. 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. Insurance and reinsurance premiums balance receivable is presented net of acquisition costs when contract terms provide for the right of offset. 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 | 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. These amounts reflect both claims that have been reported ("case reserves") and claims that have been incurred but not yet reported ("IBNR") and 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, Chain Ladder and Bornhuetter Ferguson methods. The estimate is highly dependent on management’s judgment as to which method(s) are most appropriate for a particular accident year and line of business. Historical claims data is often supplemented with industry benchmarks when applying these methodologies. Any adjustments to reserve for losses and loss expenses estimates are recognized in the period in which 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 | 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. ceded premiums written) are expensed over the coverage period. Prepaid reinsurance premiums represent the portion of premiums ceded which relate to the unexpired term of the contracts in force. Reinstatement premiums ceded 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. Reinsurance recoverable related to case reserves is estimated on a case-by-case basis by applying the terms of any applicable reinsurance cover to individual case reserve estimates. Reinsurance recoverable related to IBNR is generally developed as part of our loss reserving process, therefore, its estimation is subject to similar risks and uncertainties as the estimation of IBNR. Reinsurance recoverable is presented net of a provision for uncollectible amounts, reflecting the amount the Company believes ultimately will not be recovered due to reinsurer insolvency, contractual disputes and/or some other reason. The Company applies case-specific provisions against reinsurance recoverable on unpaid and paid losses 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 reinsurance recoverable balance. The estimates of reinsurance recoverable and the associated provision for uncollectible amounts require management’s judgment and are reviewed in detail on a quarterly basis. Any adjustments to the provision for uncollectible amounts are recognized in the period in which they are determined. 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 net income 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 | The functional currency of the Company and the majority of its subsidiaries is the U.S. dollar. All foreign currency transactions are initially measured and recorded in the Company’s functional currency using the rates of exchange prevailing at the transaction date. Monetary assets and liabilities denominated in foreign currency are remeasured to functional currency at the rates of exchange in effect at the balance sheet date with the resulting foreign currency gains (losses) generally being recognized in the consolidated statements of operations. Foreign currency gains (losses) related to available-for-sale investments denominated in foreign currency represent an unrealized appreciation (depreciation) in the market value of the securities and are included in the relevant component of AOCI. Non-monetary assets and liabilities denominated in foreign currency are not subsequently remeasured. The Company’s reporting currency is the U.S. dollar. Assets and liabilities of the Company's subsidiaries and branches where the functional currency is not the U.S. dollar, are translated into U.S. dollars using the rates of exchange in effect at the balance sheet date, and revenue and expenses are translated using the weighted average foreign exchange rates for the period. The effect of translation adjustments is reported as a separate component of AOCI in the consolidated statement of change shareholders’ equity. |
Share-based compensation | The Company is authorized to issue restricted shares, restricted stock units, performance units, stock options, stock appreciation rights and other equity-based awards to its employees and directors. The Company's plan includes both share-settled and cash-settled service and performance based awards. The fair value of share-settled service and performance based awards is based on the market value of the Company's common share measured at the grant date and is expensed over the requisite service period. The fair value cash-settled service and performance based awards is also based on the fair market value of Company's common shares at the grant date and is expensed over the requisite service period. In addition, the fair value of the cash-settled service and performance based awards is recognized as a liability in the consolidated balance sheet and is remeasured at the end of each reporting period. Effective, January 1, 2017, the Company made an accounting policy election to account for forfeitures when they occur. |
Derivatives 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 (refer to 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 | 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 a quantitative goodwill impairment test. If determined to be necessary, the quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. Subsequent to the adoption of ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment " (refer to ' New Accounting Standards Adopted in 2018' below) if the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not impaired. If the carrying amount of the reporting unit exceeds the fair value, an impairment loss is recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 | 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 | 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. |
New Accounting Standards Adopted, Recently Issued Accounting Standards Not Yet Adopted | New Accounting Standards Adopted in 2018 Recognition and Measurement of Financial Assets and Financial Liabilities Fixed maturities and equity securities are reported at fair value at the balance sheet date (refer to Note 7 ' Fair Value Measurements '). Effective January 1, 2018, the Company adopted 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. Upon adoption of this guidance, net unrealized investment gains on equity securities of $70 million , net of deferred income taxes of $13 million , were reclassified from accumulated other comprehensive income to retained earnings. Revenue from Contracts with Customers Effective January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 "Revenue from Contracts with Customers (Topic 606)," using the modified retrospective transition approach. 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, such as accounting for insurance contracts. 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. The Company generated fee income of $32 million for the year ended December 31, 2018 which is within the scope of this ASU. These fees represent service fees earned by the Company's reinsurance segment related to services provided to strategic capital partners and are recognized when the related services have been performed. Given that the timing and measurement of revenue associated with impacted contracts did not change, the adoption of this guidance did not have a material impact on the Company's results of operations, financial condition and liquidity. Classification of Certain Cash Receipts and Cash Payments Effective January 1, 2018, the Company adopted 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. The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. Restricted Cash Effective January 1, 2018, the Company adopted 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 requires 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. To facilitate comparison of the Company's consolidated statements of cash flows, the Company adopted this guidance utilizing the full retrospective approach for all periods presented in the Company's consolidated financial statements. As a result, the Company's consolidated statements of cash flows now explains the change during the period in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash is now included with cash and cash equivalents in the reconciliation of the beginning of period and end of period total amounts shown on the statement of cash flows. The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. Stock Compensation - Scope of Modification Accounting Effective January 1, 2018, the Company adopted ASU 2017-09 "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting, " which provides clarity and reduces 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 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. The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income Effective January 1, 2018, the Company adopted ASU 2018-02 "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income " which was a 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. 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 investments held by the Company's U.S. domiciled entities. Upon adoption of this guidance, the tax benefit of $2 million was reclassified from accumulated other comprehensive income into retained earnings. Simplifying the Test for Goodwill Impairment Effective October 1, 2018, the Company adopted 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). The adoption of this guidance did not impact the Company's results of operations, financial condition and liquidity. m) Recently Issued Accounting Standards Not Yet Adopted Leases In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)" which provided a new comprehensive model for lease accounting. Topic 842 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. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842) - Targeted Improvements " which provides an additional (and optional) transition method to adopt the new lease guidance. A company electing this additional (and optional) transition method must provide the required Topic 840 disclosures for all periods that continue to be in accordance with Topic 840. However, these amendments do not change the existing disclosure requirements in Topic 840, in particular these amendments do not create interim disclosure requirements. This guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company will adopt Topic 842 effective January 1, 2019, by electing the additional transition method provided in ASU 2018-11. The Company will also elect the package of practical expedients permitted under the transition guidance of Topic 842, which must be elected as a package and applied consistently to all leases. The package of practical expedients permits the Company not to reassess the following: 1. whether any expired or existing contracts are or contain leases; 2. the lease classification for any expired or existing leases; and 3. initial direct costs for any existing leases. In addition to electing the package of practical expedients, the Company will make an accounting policy election not to record leases with an initial term of 12 months or less (short-term) in the Company's consolidated balance sheets. The Company will recognize expense for short-term lease payments on a straight-line basis over the lease term in the Company's consolidated statements of operations. At December 31, 2018, the Company expects the adoption of this guidance will result in the recognition of lease assets and lease liabilities of approximately $149 million in the Company's consolidated balance sheets at January 1, 2019, related to existing office property and equipment leases. The adoption of this guidance will not impact the Company's results of operations 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. 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. The Company plans to adopt this guidance effective January 1, 2019. The adoption of this guidance will not impact the Company's results of operations, financial condition and liquidity. Changes to Disclosures on Fair Value Measurement In August 2018, the FASB issued ASU 2018-13 "Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement " to improve the effectiveness of fair value measurement disclosures. This guidance is effective for interim and annual reporting periods, beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt this guidance effective January 1, 2019. 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. |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 | |
Segment Reporting [Abstract] | |
UNDERWRITING RESULTS OF REPORTABLE SEGMENTS | The following tables present the underwriting results of the Company's reportable segments, as well as the carrying amounts of allocated goodwill and intangible assets: At and year ended December 31, 2018 Insurance Reinsurance Total Gross premiums written $ 3,797,592 $ 3,112,473 $ 6,910,065 Net premiums written 2,324,747 2,334,215 4,658,962 Net premiums earned 2,362,606 2,428,889 4,791,495 Other insurance related income 3,460 7,162 10,622 Net losses and loss expenses (1,494,323 ) (1,695,964 ) (3,190,287 ) Acquisition costs (399,193 ) (569,642 ) (968,835 ) General and administrative expenses (395,252 ) (123,916 ) (519,168 ) Underwriting income $ 77,298 $ 46,529 123,827 Corporate expenses (108,221 ) Net investment income 438,507 Net investment losses (150,218 ) Foreign exchange gains 29,165 Interest expense and financing costs (67,432 ) Transaction and reorganization expenses (66,940 ) Amortization of value of business acquired (172,332 ) Amortization of intangible assets (13,814 ) Income before income taxes and interest in income (loss) of equity method investments $ 12,542 Net loss and loss expense ratio 63.2 % 69.8 % 66.6 % Acquisition cost ratio 16.9 % 23.5 % 20.2 % General and administrative expense ratio 16.8 % 5.1 % 13.1 % Combined ratio 96.9 % 98.4 % 99.9 % Total intangible assets $ 379,285 $ — $ 379,285 At and year ended December 31, 2017 Insurance Reinsurance Total Gross premiums written $ 2,814,918 $ 2,741,355 $ 5,556,273 Net premiums written 1,775,825 2,251,318 4,027,143 Net premiums earned 1,816,438 2,332,322 4,148,760 Other insurance related income (loss) 2,944 (4,184 ) (1,240 ) Net losses and loss expenses (1,465,427 ) (1,822,345 ) (3,287,772 ) Acquisition costs (270,229 ) (553,362 ) (823,591 ) General and administrative expenses (325,368 ) (124,115 ) (449,483 ) Underwriting loss $ (241,642 ) $ (171,684 ) (413,326 ) Corporate expenses (129,945 ) Net investment income 400,805 Net investment gains 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 intangible assets (2,543 ) Loss before income taxes and interest in income (loss) of equity method investments $ (368,109 ) Net loss and loss expense ratio 80.7 % 78.1 % 79.2 % Acquisition cost ratio 14.9 % 23.7 % 19.9 % General and administrative expense ratio 17.9 % 5.3 % 14.0 % Combined ratio 113.5 % 107.1 % 113.1 % Total intangible assets $ 566,828 $ — $ 566,828 At and year ended December 31, 2016 Insurance Reinsurance Total Gross premiums written $ 2,432,475 $ 2,537,733 $ 4,970,208 Net premiums written 1,519,559 2,233,415 3,752,974 Net premiums earned 1,534,282 2,171,343 3,705,625 Other insurance related income 89 7,133 7,222 Net losses and loss expenses (977,771 ) (1,226,426 ) (2,204,197 ) Acquisition costs (206,619 ) (540,257 ) (746,876 ) General and administrative expenses (327,351 ) (155,350 ) (482,701 ) Underwriting income $ 22,630 $ 256,443 279,073 Corporate expenses (120,016 ) Net investment income 353,335 Net investment losses (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 63.7 % 56.5 % 59.5 % Acquisition cost ratio 13.5 % 24.9 % 20.2 % General and administrative expense ratio 21.3 % 7.1 % 16.2 % Combined ratio 98.5 % 88.5 % 95.9 % Total intangible assets $ 85,049 $ — $ 85,049 |
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, 2018 2017 2016 Bermuda $ 606,452 $ 529,425 $ 465,980 Ireland 1,805,882 1,569,956 1,650,229 U.S. 2,811,537 2,814,933 2,562,789 Lloyd's of London 1,686,194 641,959 291,210 Total gross premium written $ 6,910,065 $ 5,556,273 $ 4,970,208 |
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, 2018 2017 2016 Insurance Property $ 796,945 $ 543,342 $ 426,918 Marine 300,944 181,533 150,046 Terrorism 49,150 36,084 33,279 Aviation 74,203 75,107 44,980 Credit and political risk 102,825 56,432 57,964 Professional lines 570,241 519,759 510,806 Liability 229,373 188,770 169,182 Accident and health 207,777 199,121 141,107 Discontinued lines - Novae 31,148 16,290 — Total Insurance 2,362,606 1,816,438 1,534,282 Reinsurance Catastrophe 250,016 209,470 199,825 Property 317,038 304,376 272,403 Professional lines 220,687 226,622 289,868 Credit and surety 250,276 244,186 252,210 Motor 438,693 371,501 318,863 Liability 363,292 351,940 332,479 Agriculture 176,435 195,391 142,501 Engineering 67,932 66,291 62,833 Marine and other 35,570 64,449 57,322 Accident and health 299,813 289,925 243,039 Discontinued lines - Novae 9,137 8,171 — Total Reinsurance 2,428,889 2,332,322 2,171,343 Total $ 4,791,495 $ 4,148,760 $ 3,705,625 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF GOODWILL AND INTANGIBLE ASSETS | The table below provides details of goodwill and intangible assets related to the Company's insurance segment: Goodwill Intangible assets with an indefinite life Intangible assets with a finite life Total Balance at December 31, 2016 Gross amount $ 42,237 $ 26,036 $ 23,030 $ 91,303 Accumulated amortization 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 (1) 42,237 26,036 23,030 91,303 Accumulated amortization (1) 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 ) Balance at December 31, 2018 Gross amount $ 97,092 $ 120,784 $ 410,575 $ 628,451 Accumulated amortization n/a n/a (66,534 ) (66,534 ) Accumulated translation adjustment 4,911 — — 4,911 102,003 120,784 344,041 566,828 Amortization n/a n/a (184,043 ) (184,043 ) Impairment charge — — (3,500 ) (3,500 ) $ 102,003 $ 120,784 $ 156,498 $ 379,285 n/a – not applicable |
SCHEDULE OF FINITE-LIVED INTANGIBLE ASSETS | The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2018 Gross amount Accumulated amortization and impairment Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,598 ) 102 Customer relationships and customers lists - Ternian 13,330 (4,999 ) 8,331 VOBA - Aviabel 2,140 (2,140 ) — VOBA - Novae 256,942 (221,228 ) 35,714 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (6,622 ) 56,943 Large brokers 46,641 (3,888 ) 42,753 SME brokers 14,126 (1,471 ) 12,655 MGA contract (1) 4,131 (4,131 ) — $ 531,359 $ (254,077 ) $ 277,282 (1) During the year ended December 31, 2018, an impairment charge of $3,500 was recognized related to the termination of the MGA contract intangible asset identified in connection with the acquisition of Novae. 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 VOBA - 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 |
SCHEDULE OF INDEFINITE-LIVED INTANGIBLE ASSETS | The tables below provide details of the gross amount and accumulated amortization by category of VOBA and intangible assets: VOBA and intangible assets Balance At December 31, 2018 Gross amount Accumulated amortization and impairment Total U.S. state licenses $ 26,036 n/a $ 26,036 Customer lists, trademark and non-compete - Media Pro 9,700 (9,598 ) 102 Customer relationships and customers lists - Ternian 13,330 (4,999 ) 8,331 VOBA - Aviabel 2,140 (2,140 ) — VOBA - Novae 256,942 (221,228 ) 35,714 Syndicate capacity 94,748 n/a 94,748 Coverholders 63,565 (6,622 ) 56,943 Large brokers 46,641 (3,888 ) 42,753 SME brokers 14,126 (1,471 ) 12,655 MGA contract (1) 4,131 (4,131 ) — $ 531,359 $ (254,077 ) $ 277,282 (1) During the year ended December 31, 2018, an impairment charge of $3,500 was recognized related to the termination of the MGA contract intangible asset identified in connection with the acquisition of Novae. 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 VOBA - 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 |
FUTURE AMORTIZATION EXPENSE | The table below provides details of estimated amortization expense of VOBA and intangible assets with a finite life: VOBA Intangible assets Total 2019 26,722 11,017 37,739 2020 5,139 10,916 16,055 2021 3,853 10,916 14,769 2022 — 10,916 10,916 2023 — 10,916 10,916 2024 and thereafter — 66,103 66,103 Total remaining amortization expense 35,714 120,784 156,498 Indefinite lived intangible assets — 120,784 120,784 Total intangible assets $ 35,714 $ 241,568 $ 277,282 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
AMORTIZED COST/COST AND FAIR VALUES OF FIXED MATURITIES AND EQUITIES | The amortized cost and fair values of the Company's fixed maturities classified as available for sale were as follows: Amortized Gross Gross Fair Non-credit (5) At December 31, 2018 Fixed maturities U.S. government and agency $ 1,520,142 $ 4,232 $ (8,677 ) $ 1,515,697 $ — Non-U.S. government 507,550 1,586 (16,120 ) 493,016 — Corporate debt 4,990,279 15,086 (128,444 ) 4,876,921 — Agency RMBS (1) 1,666,684 6,508 (29,884 ) 1,643,308 — CMBS (2) 1,103,507 2,818 (13,795 ) 1,092,530 — Non-Agency RMBS 40,732 1,237 (1,282 ) 40,687 (857 ) ABS (3) 1,651,350 1,493 (15,240 ) 1,637,603 — Municipals (4) 136,068 914 (1,397 ) 135,585 — Total fixed maturities $ 11,616,312 $ 33,874 $ (214,839 ) $ 11,435,347 $ (857 ) 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 ) (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 card receivables, collateralized debt obligations ("CDOs") and collateralized loan obligations ("CLOs"). (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. |
EQUITY SECURITIES | The cost and fair values of the Company's equity securities were as follows: Cost Gross Gross Fair At December 31, 2018 Equity securities Common stocks $ 790 $ 112 $ (375 ) $ 527 Exchange-traded funds 213,420 33,498 (10,079 ) 236,839 Bond mutual funds 151,695 — (7,428 ) 144,267 Total equity securities $ 365,905 $ 33,610 $ (17,882 ) $ 381,633 At December 31, 2017 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 |
CONTRACTUAL MATURITIES OF FIXED MATURITIES | 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. The contractual maturities of fixed maturities are shown below: Amortized cost Fair value % of Total fair value At December 31, 2018 Maturity Due in one year or less $ 430,390 $ 426,142 3.7 % Due after one year through five years 4,751,064 4,691,263 41.0 % Due after five years through ten years 1,762,452 1,697,737 14.8 % Due after ten years 210,133 206,077 1.8 % 7,154,039 7,021,219 61.3 % Agency RMBS 1,666,684 1,643,308 14.4 % CMBS 1,103,507 1,092,530 9.6 % Non-Agency RMBS 40,732 40,687 0.4 % ABS 1,651,350 1,637,603 14.3 % Total $ 11,616,312 $ 11,435,347 100.0 % 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 % |
FIXED MATURITIES AND EQUITIES IN AN UNREALIZED LOSS POSITION | The following table summarizes fixed maturities and equity securities 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, 2018 (1) Fixed maturities U.S. government and agency $ 374,030 $ (7,659 ) $ 424,439 $ (1,018 ) $ 798,469 $ (8,677 ) Non-U.S. government 44,339 (2,004 ) 303,376 (14,116 ) 347,715 (16,120 ) Corporate debt 1,439,378 (58,915 ) 2,547,135 (69,529 ) 3,986,513 (128,444 ) Agency RMBS 940,645 (29,255 ) 117,181 (629 ) 1,057,826 (29,884 ) CMBS 455,582 (11,430 ) 353,802 (2,365 ) 809,384 (13,795 ) Non-Agency RMBS 9,494 (1,170 ) 11,432 (112 ) 20,926 (1,282 ) ABS 237,237 (2,755 ) 1,150,692 (12,485 ) 1,387,929 (15,240 ) Municipals 68,814 (1,373 ) 9,894 (24 ) 78,708 (1,397 ) Total fixed maturities $ 3,569,519 $ (114,561 ) $ 4,917,951 $ (100,278 ) $ 8,487,470 $ (214,839 ) 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 ) (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01, which requires equity securities to be measured at fair value with changes in fair value recognized in net income therefore equity securities at fair value are excluded from the table above at December 31, 2018. |
MORTGAGE LOANS NET OF VALUATION ALLOWANCE | The following table provides details of the Company's mortgage loans held-for-investment: December 31, 2018 December 31, 2017 Carrying value % of Total Carrying value % of Total Mortgage Loans held-for-investment: Commercial $ 298,650 100 % $ 325,062 100 % Total Mortgage Loans held-for-investment $ 298,650 100 % $ 325,062 100 % |
PORTFOLIO OF OTHER INVESTMENTS | The following tables provide a summary 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, 2018 Long/short equity funds $ 26,779 3 % Annually 60 days Multi-strategy funds 153,883 20 % Quarterly, Semi-annually 60-95 days Event-driven funds 13,936 2 % Annually 45 days Direct lending funds 274,478 35 % n/a n/a Private equity funds 64,566 8 % n/a n/a Real estate funds 84,202 11 % n/a n/a CLO-Equities 21,271 2 % n/a n/a Other privately held investments 44,518 6 % n/a n/a Overseas deposits 104,154 13 % n/a n/a Total other investments $ 787,787 100 % 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 % n/a – not applicable |
NET INVESTMENT INCOME | Net investment income was derived from the following sources: Year ended December 31, 2018 2017 2016 Fixed maturities $ 356,273 $ 312,662 $ 305,459 Other investments 48,959 76,858 42,514 Equity securities 10,077 14,919 16,306 Mortgage loans 13,566 10,780 7,996 Cash and cash equivalents 27,566 10,057 9,209 Short-term investments 9,365 2,718 2,060 Gross investment income 465,806 427,994 383,544 Investment expenses (27,299 ) (27,189 ) (30,209 ) Net investment income $ 438,507 $ 400,805 $ 353,335 |
NET REALIZED INVESTMENT GAINS (LOSSES) | The following table provides an analysis of net investment gains (losses): Year ended December 31, 2018 2017 2016 Gross realized investment gains Fixed maturities and short-term investments $ 46,067 $ 72,046 $ 86,267 Equity securities 20,435 78,343 19,104 Gross realized investment gains 66,502 150,389 105,371 Gross realized investment losses Fixed maturities and short-term investments (142,153 ) (98,442 ) (134,460 ) Equity securities (3,389 ) (959 ) (16,155 ) Gross realized investment losses (145,542 ) (99,401 ) (150,615 ) Net OTTI charge recognized in net income (9,733 ) (14,493 ) (26,210 ) Change in fair value of investment derivatives (1) 5,445 (8,269 ) 10,929 Change in fair value of equity securities (2) (66,890 ) — — Net investment gains (losses) $ (150,218 ) $ 28,226 $ (60,525 ) (1) Refer to Note 8 'Derivative Instruments' (2) Effective January 1, 2018, the Company adopted ASU No. 2016-01. The change in fair value of equity securities is now recognized in net income. |
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS | The following table summarizes the OTTI charge recognized in net income by asset class: Year ended December 31, 2018 2017 2016 Fixed maturities: Non-U.S. government $ 4,697 $ 8,187 $ 3,557 Corporate debt 4,995 6,306 20,093 Non-Agency CMBS 41 — — 9,733 14,493 23,650 Equity Securities Exchange-traded funds — — 2,560 — — 2,560 Total OTTI recognized in net income $ 9,733 $ 14,493 $ 26,210 |
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 component of the OTTI charge was recognized in AOCI: Year ended December 31, 2018 2017 Balance at beginning of period $ 1,494 $ 1,493 Credit impairments recognized on securities not previously impaired — — Additional credit impairments recognized on securities previously impaired 8 13 Change in timing of future cash flows on securities previously impaired — — Intent to sell of securities previously impaired — — Securities sold/redeemed/matured (992 ) (12 ) Balance at end of period $ 510 $ 1,494 |
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, 2018 2017 Collateral in Trust for inter-company agreements $ 2,121,522 $ 3,310,180 Collateral for secured letter of credit facility 470,051 386,451 Funds at Lloyd's 1,307,945 1,192,717 Collateral in Trust for third party agreements 1,510,416 2,085,443 Securities on deposit with regulatory authorities 64,360 53,925 Total restricted investments $ 5,474,294 $ 7,028,716 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 Assets Fixed maturities U.S. government and agency $ 1,480,466 $ 35,231 $ — $ — $ 1,515,697 Non-U.S. government — 493,016 — — 493,016 Corporate debt — 4,827,909 49,012 — 4,876,921 Agency RMBS — 1,643,308 — — 1,643,308 CMBS — 1,073,396 19,134 — 1,092,530 Non-Agency RMBS — 40,687 — — 40,687 ABS — 1,619,070 18,533 — 1,637,603 Municipals — 135,585 — — 135,585 1,480,466 9,868,202 86,679 — 11,435,347 Equity securities Common stocks 527 — — — 527 Exchange-traded funds 236,839 — — — 236,839 Bond mutual funds — 144,267 — — 144,267 237,366 144,267 — — 381,633 Other investments Hedge funds (1) — — — 194,598 194,598 Direct lending funds — — — 274,478 274,478 Private equity funds — — — 64,566 64,566 Real estate funds — — — 84,202 84,202 Other privately held investments — — 44,518 — 44,518 CLO-Equities — — 21,271 — 21,271 Overseas deposits — 104,154 — — 104,154 — 104,154 65,789 617,844 787,787 Short-term investments — 144,040 — — 144,040 Other assets Derivative instruments (refer to Note 8) — 8,237 — — 8,237 Total Assets $ 1,717,832 $ 10,268,900 $ 152,468 $ 617,844 $ 12,757,044 Liabilities Derivative instruments (refer to Note 8) $ — $ 4,223 $ 10,299 $ — $ 14,522 Cash settled awards (refer to Note 16) — 20,648 — — 20,648 Total Liabilities $ — $ 24,871 $ 10,299 $ — $ 35,170 (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, 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 (refer to 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 (refer to Note 8) $ — $ 2,876 $ 11,510 $ — $ 14,386 Cash settled awards (refer to 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. |
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS | The following table quantifies the significant unobservable inputs used in estimating fair values at December 31, 2018 of investments classified as Level 3 in the fair value hierarchy. Fair value Valuation technique Unobservable input Range Weighted average Other investments - CLO-Equities $ 21,271 Discounted cash flow Default rates 3.0% 3.0% Loss severity rate 35% 35% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years Other investments - Other privately held investments $ 44,518 Discounted cash flow Discount rate 3.0% - 8.0% 7.1% Derivatives - Other underwriting-related derivatives $ (10,299 ) Discounted cash flow Discount rate 2.6% 2.6% Note: Fixed maturities and insurance-linked securities that are classified as Level 3 are excluded from the above table as these securities are priced using broker-dealer quotes. |
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 gains/losses (3) Year ended December 31, 2018 Fixed maturities Corporate debt $ 52,897 $ 2,935 $ (4,279 ) $ (591 ) $ 6,343 $ 10,267 $ (7,446 ) $ (11,114 ) $ 49,012 $ — CMBS — 5,096 — — (145 ) 17,200 — (3,017 ) 19,134 — ABS — 1,979 — — (446 ) 17,000 — — 18,533 — 52,897 10,010 (4,279 ) (591 ) 5,752 44,467 (7,446 ) (14,131 ) 86,679 — Other investments Other privately held investments 46,430 — — (913 ) — 3,110 (4,109 ) — 44,518 (913 ) CLO-Equities 31,413 — — 6,627 — — — (16,769 ) 21,271 6,627 77,843 — — 5,714 — 3,110 (4,109 ) (16,769 ) 65,789 5,714 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 10,010 $ (4,279 ) $ 5,033 $ 5,752 $ 47,577 $ (11,555 ) $ (55,900 ) $ 152,468 $ 5,714 Other liabilities Derivative instruments 11,510 — — (1,211 ) — — — — 10,299 (1,211 ) Total liabilities $ 11,510 $ — $ — $ (1,211 ) $ — $ — $ — $ — $ 10,299 $ (1,211 ) 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 ) (1) Realized investment gains (losses) on fixed maturities, and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized investment gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). (3) Change in unrealized investment gains (losses) 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 gains/losses (3) Year ended December 31, 2018 Fixed maturities Corporate debt $ 52,897 $ 2,935 $ (4,279 ) $ (591 ) $ 6,343 $ 10,267 $ (7,446 ) $ (11,114 ) $ 49,012 $ — CMBS — 5,096 — — (145 ) 17,200 — (3,017 ) 19,134 — ABS — 1,979 — — (446 ) 17,000 — — 18,533 — 52,897 10,010 (4,279 ) (591 ) 5,752 44,467 (7,446 ) (14,131 ) 86,679 — Other investments Other privately held investments 46,430 — — (913 ) — 3,110 (4,109 ) — 44,518 (913 ) CLO-Equities 31,413 — — 6,627 — — — (16,769 ) 21,271 6,627 77,843 — — 5,714 — 3,110 (4,109 ) (16,769 ) 65,789 5,714 Other assets Derivative instruments — — — — — — — — — — Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 10,010 $ (4,279 ) $ 5,033 $ 5,752 $ 47,577 $ (11,555 ) $ (55,900 ) $ 152,468 $ 5,714 Other liabilities Derivative instruments 11,510 — — (1,211 ) — — — — 10,299 (1,211 ) Total liabilities $ 11,510 $ — $ — $ (1,211 ) $ — $ — $ — $ — $ 10,299 $ (1,211 ) 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 ) (1) Realized investment gains (losses) on fixed maturities, and realized and unrealized gains (losses) on other assets and other liabilities included in net income are included in net investment gains (losses). Realized and unrealized gains (losses) on other investments included in net income are included in net investment income. (2) Unrealized investment gains (losses) on fixed maturities are included in other comprehensive income ("OCI"). (3) Change in unrealized investment gains (losses) relating to assets held at the reporting date. |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
LOCATION AND AMOUNTS OF DERIVATIVE FAIR VALUES ON THE CONSOLIDATED BALANCE SHEET | The balance sheet classifications of derivatives recorded at fair value are shown in the following table. At December 31, 2018 At December 31, 2017 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 $ 79,336 $ 262 $ 531 $ 137,422 $ 10 $ 619 Interest rate swaps 150,000 — 1,116 191,000 448 1,556 Relating to underwriting portfolio: Foreign exchange forward contracts 737,419 7,975 2,576 698,959 4,667 701 Other underwriting-related contracts 85,000 — 10,299 85,000 — 11,510 Total derivatives $ 8,237 $ 14,522 $ 5,125 $ 14,386 (1) Asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
RECONCILIATION OF GROSS DERIVATIVE ASSETS TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | 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, 2018 December 31, 2017 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 11,967 $ (3,730 ) $ 8,237 $ 8,178 $ (3,053 ) $ 5,125 Derivative liabilities $ 18,252 $ (3,730 ) $ 14,522 $ 17,439 $ (3,053 ) $ 14,386 (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, 2018 December 31, 2017 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 11,967 $ (3,730 ) $ 8,237 $ 8,178 $ (3,053 ) $ 5,125 Derivative liabilities $ 18,252 $ (3,730 ) $ 14,522 $ 17,439 $ (3,053 ) $ 14,386 (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 2018 2017 2016 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ 3,446 $ (6,935 ) $ 10,929 Interest rate swaps Net investment gains (losses) 1,999 (1,334 ) — Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) (3,509 ) 25,383 (8,179 ) Weather-related contracts Other insurance related income (losses) — (9,629 ) 4,910 Commodity contracts Other insurance related income (losses) — — (2,382 ) Other underwriting-related contracts Other insurance related income (losses) 2,384 1,476 — Total $ 4,320 $ 8,961 $ 5,278 |
RESERVE FOR LOSSES AND LOSS E_2
RESERVE FOR LOSSES AND LOSS EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance Loss Reserves [Abstract] | |
SCHEDULE OF THE LINES OF BUSINESS CATEGORIES AND THE EXPECTED CLAIM TAILS | The tables below map the Company's lines of business to reserve classes and the expected claim tails: Insurance segment Reserve class and tail Property and other Marine Aviation Credit and political risk Professional lines Liability Short Short Short/Medium Medium Medium Long Reported lines of business Property X Marine X Terrorism X Aviation X Credit and political risk X Professional lines X Liability X Accident and health X Discontinued lines - Novae X X X Reinsurance segment Reserve class and tail Property and other Credit and surety Professional lines Motor Liability Short Medium Medium Long Long Reported lines of business Catastrophe X Property X Credit and surety X Professional lines X Motor X Liability X Engineering X Agriculture X Marine and other X Accident and health X Discontinued lines - Novae X X X Actuarial Analysis |
COMPONENTS OF RESERVE FOR LOSSES AND LOSS EXPENSES | Reserve for losses and loss expenses comprise the following: As of December 31, 2018 2017 Reserve for reported losses and loss expenses $ 4,626,204 $ 5,137,659 Reserve for losses incurred but not reported 7,654,565 7,859,894 Reserve for losses and loss expenses $ 12,280,769 $ 12,997,553 |
RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES | The table below provides a reconciliation of beginning and ending net reserves for unpaid losses and loss expenses for the years indicated: Year ended December 31, 2018 2017 2016 Gross reserve for losses and loss expenses, beginning of year $ 12,997,553 $ 9,697,827 $ 9,646,285 Less reinsurance recoverable on unpaid losses, beginning of year (3,159,514 ) (2,276,109 ) (2,031,309 ) Net reserve for unpaid losses and loss expenses, beginning of year 9,838,039 7,421,718 7,614,976 Net incurred losses and loss expenses related to: Current year 3,389,949 3,487,826 2,496,574 Prior years (199,662 ) (200,054 ) (292,377 ) 3,190,287 3,287,772 2,204,197 Net paid losses and loss expenses related to: Current year (724,199 ) (703,796 ) (428,153 ) Prior years (2,368,615 ) (1,880,882 ) (1,763,696 ) (3,092,814 ) (2,584,678 ) (2,191,849 ) Foreign exchange and other (1,156,412 ) 1,713,227 (205,606 ) Net reserve for unpaid losses and loss expenses, end of year 8,779,100 9,838,039 7,421,718 Reinsurance recoverable on unpaid losses, end of year 3,501,669 3,159,514 2,276,109 Gross reserve for losses and loss expenses, end of year $ 12,280,769 $ 12,997,553 $ 9,697,827 |
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT | The following table presents prior year reserve development by segment: Insurance Reinsurance Total Year ended December 31, 2018 $ 92,806 $ 106,856 $ 199,662 Year ended December 31, 2017 60,459 139,595 200,054 Year ended December 31, 2016 48,978 243,399 292,377 |
NET INCURRED AND PAID CLAIMS DEVELOPMENT TABLES BY ACCIDENT YEAR | Insurance property and other Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 117,309 $ 99,079 $ 89,768 $ 82,460 $ 80,461 $ 78,269 $ 78,490 $ 78,150 $ 78,395 $ 77,338 $ 83 3,201 2010 175,012 155,032 147,426 122,111 116,562 115,635 115,316 114,866 113,767 867 4,422 2011 359,132 338,220 306,114 285,745 282,755 281,405 281,866 279,996 979 6,348 2012 391,646 399,473 381,746 361,476 357,267 351,673 350,827 8,992 29,931 2013 308,359 297,713 271,157 267,022 266,727 276,940 6,687 53,172 2014 360,130 354,219 343,333 327,389 326,100 5,917 62,444 2015 277,332 268,897 257,927 253,729 5,642 47,052 2016 349,152 376,458 367,362 12,290 92,867 2017 882,968 825,176 42,188 663,914 2018 712,082 187,391 730,832 Total $ 3,583,317 Insurance property and other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 31,360 $ 60,085 $ 68,653 $ 72,499 $ 73,387 $ 74,453 $ 76,673 $ 76,980 $ 77,248 $ 77,252 2010 48,575 86,886 94,912 105,719 109,933 110,008 109,794 109,837 110,171 2011 84,811 192,892 249,162 271,451 270,309 269,994 270,666 270,946 2012 77,088 213,138 277,230 300,129 307,639 312,818 312,894 2013 75,214 197,898 236,405 247,393 258,435 261,266 2014 131,991 258,098 304,609 311,730 315,797 2015 98,366 201,166 225,593 239,989 2016 122,407 287,049 327,706 2017 251,358 625,027 2018 276,472 Total 2,817,520 All outstanding liabilities before 2009, net of reinsurance 5,862 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 771,659 Reinsurance professional lines Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 211,420 $ 211,191 $ 215,827 $ 218,469 $ 208,338 $ 208,693 $ 193,803 $ 189,991 $ 180,862 $ 179,945 $ 4,495 2010 210,016 210,238 211,409 214,439 214,161 196,770 189,263 179,604 165,864 10,034 2011 201,457 201,735 202,815 211,459 208,828 207,946 200,168 177,163 22,132 2012 209,889 216,415 221,808 223,813 222,499 212,485 213,850 33,873 2013 209,538 214,624 215,544 213,765 213,142 205,586 67,043 2014 219,378 219,332 219,286 219,109 233,427 48,605 2015 212,030 212,150 214,310 225,003 84,299 2016 195,061 196,246 199,879 84,621 2017 155,211 155,892 109,070 2018 146,558 142,282 Total $ 1,903,167 Reinsurance professional lines Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 914 $ 8,588 $ 32,306 $ 63,066 $ 83,703 $ 108,373 $ 128,071 $ 138,247 $ 143,732 $ 150,811 2010 1,758 12,029 31,245 52,129 76,763 107,270 123,889 130,487 137,917 2011 1,510 11,825 30,273 57,182 84,776 102,938 119,643 129,920 2012 779 10,400 29,616 53,587 85,921 107,173 131,770 2013 1,062 12,070 30,495 64,966 81,641 104,883 2014 2,019 13,066 48,814 74,542 109,129 2015 3,134 13,505 41,524 79,270 2016 1,772 20,516 52,588 2017 2,814 14,918 2018 273 Total 911,479 All outstanding liabilities before 2009, net of reinsurance 47,397 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,039,085 Insurance marine Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 80,615 $ 74,181 $ 69,862 $ 64,477 $ 57,106 $ 54,906 $ 53,514 $ 52,400 $ 52,283 $ 50,735 $ 359 3,220 2010 68,528 70,394 66,389 53,388 51,483 48,650 47,249 45,543 45,125 643 3,196 2011 90,717 78,700 72,530 65,766 65,769 65,983 68,140 68,829 1,005 3,830 2012 89,639 82,648 68,715 70,855 71,823 74,445 72,585 12,055 4,134 2013 79,610 100,767 96,210 97,265 82,547 82,136 2,729 2,351 2014 59,558 44,463 48,481 44,392 45,980 5,454 2,157 2015 158,755 140,050 136,827 129,627 8,498 2,219 2016 86,264 78,779 76,743 12,819 2,795 2017 171,936 170,085 49,990 3,863 2018 178,709 113,414 3,250 Total $ 920,554 Insurance marine Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 17,394 $ 30,297 $ 39,674 $ 43,147 $ 45,159 $ 45,775 $ 48,321 $ 48,587 $ 48,920 $ 50,244 2010 18,029 28,631 33,298 42,364 45,194 45,976 46,940 43,346 43,433 2011 26,435 44,218 54,930 58,025 59,862 60,572 64,868 66,913 2012 10,711 38,545 44,800 49,523 50,331 52,724 54,721 2013 18,982 44,087 54,898 63,128 65,822 76,856 2014 6,349 15,172 26,838 26,924 35,987 2015 21,426 54,869 108,152 111,027 2016 12,486 31,981 57,745 2017 14,472 68,563 2018 23,016 Total 588,505 All outstanding liabilities before 2009, net of reinsurance 8,619 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 340,668 Insurance credit and political risk Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 248,083 $ 305,282 $ 326,024 $ 335,536 $ 334,965 $ 335,271 $ 335,291 $ 339,570 $ 339,534 $ 340,648 $ 3,600 24 2010 62,415 63,179 63,259 65,596 64,977 65,011 72,101 90,880 99,416 1,316 6 2011 58,154 48,665 47,706 48,361 48,333 45,036 33,604 27,899 268 4 2012 32,602 15,672 12,435 12,447 10,320 44 197 155 4 2013 26,439 25,684 9,759 9,880 14,941 14,065 5,759 1 2014 38,825 70,712 67,109 68,320 69,586 1,136 6 2015 30,329 30,368 27,513 26,001 2,703 2 2016 45,907 44,639 42,184 17,704 1 2017 36,563 34,631 28,083 3 2018 46,172 33,079 1 Total $ 700,799 Insurance credit and political risk Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 92,842 $ 344,652 $ 346,254 $ 346,221 $ 341,577 $ 345,521 $ 345,520 $ 345,567 $ 341,231 $ 340,785 2010 50,000 85,418 90,729 106,767 101,786 101,948 102,154 102,196 102,514 2011 32,788 37,205 27,636 27,636 27,636 27,636 27,631 27,631 2012 — — — — 38 39 42 2013 745 2,235 3,726 5,216 11,768 13,826 2014 1,924 39,952 61,108 57,855 57,855 2015 — 23,309 23,298 23,298 2016 — 24,445 24,479 2017 1,504 5,589 2018 4,294 Total 600,313 All outstanding liabilities before 2009, net of reinsurance (1,475 ) Liabilities for claims and claim adjustment expenses, net of reinsurance $ 99,011 Insurance aviation Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 17,468 $ 14,560 $ 18,752 $ 18,090 $ 16,743 $ 16,618 $ 15,437 $ 14,604 $ 14,330 $ 13,821 $ 41 1,659 2010 12,922 11,699 11,422 9,749 8,769 8,699 8,744 8,548 8,900 78 1,950 2011 17,723 15,390 12,779 9,552 8,422 7,275 7,242 7,203 205 2,145 2012 12,789 10,668 10,791 8,708 7,758 7,804 7,695 200 2,242 2013 15,651 16,327 15,199 15,243 15,618 15,502 292 2,320 2014 20,432 23,028 24,339 22,104 22,183 425 2,717 2015 29,761 28,479 30,363 30,135 1,480 3,484 2016 29,154 34,328 34,513 2,845 3,456 2017 56,565 63,295 7,676 3,452 2018 57,955 12,452 2,280 Total $ 261,202 Insurance aviation Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 2,081 $ 3,583 $ 7,026 $ 12,780 $ 13,902 $ 14,266 $ 14,203 $ 13,700 $ 13,665 $ 13,616 2010 1,037 4,131 6,312 6,886 7,551 7,670 8,113 8,221 8,423 2011 638 2,822 4,512 5,028 5,562 5,811 6,042 6,188 2012 953 2,858 4,147 5,941 6,822 7,146 7,263 2013 4,399 7,326 9,746 11,444 13,594 14,200 2014 3,987 8,019 11,687 14,167 14,824 2015 8,084 16,155 21,507 23,797 2016 10,407 20,113 27,120 2017 22,512 41,671 2018 21,058 Total 178,160 All outstanding liabilities before 2009, net of reinsurance 8,362 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 91,404 Reinsurance motor Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 81,369 $ 79,515 $ 87,140 $ 89,057 $ 90,860 $ 92,158 $ 83,517 $ 77,943 $ 80,204 $ 77,829 $ 17,628 2010 98,704 105,669 106,092 104,993 99,061 93,919 84,535 81,228 78,575 19,993 2011 156,069 158,750 162,586 168,436 164,559 155,948 145,482 140,191 24,417 2012 178,052 167,788 156,460 149,100 144,164 134,768 131,690 22,562 2013 162,681 158,632 147,139 137,695 134,200 131,081 21,880 2014 182,625 182,555 177,575 174,457 169,776 9,307 2015 222,768 216,808 220,527 221,982 29,755 2016 245,899 261,369 263,168 43,569 2017 363,651 371,089 84,007 2018 357,187 172,384 Total $ 1,942,568 Reinsurance motor Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 2,709 $ 6,830 $ 8,012 $ 9,523 $ 12,933 $ 19,066 $ 21,368 $ 25,910 $ 29,144 $ 31,650 2010 7,075 11,951 17,066 20,387 23,554 27,766 30,977 32,015 33,083 2011 23,788 46,979 61,309 71,664 78,202 84,067 88,630 89,619 2012 29,162 52,736 67,254 76,875 83,232 87,244 89,492 2013 33,807 52,639 66,119 75,865 81,388 86,832 2014 43,325 73,572 92,721 100,607 110,562 2015 57,809 92,778 112,584 129,661 2016 60,829 104,342 127,970 2017 72,226 133,842 2018 83,854 Total 916,565 All outstanding liabilities before 2009, net of reinsurance 146,464 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,172,467 Insurance professional lines Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 240,092 $ 243,522 $ 243,978 $ 244,466 $ 253,979 $ 236,657 $ 236,751 $ 212,994 $ 220,524 $ 224,778 $ 13,640 5,889 2010 230,353 235,610 233,407 204,744 181,917 157,921 179,517 167,038 186,340 18,897 5,690 2011 312,805 314,466 331,800 324,739 329,318 342,598 351,247 351,747 33,877 7,215 2012 327,590 372,782 374,315 373,306 360,596 362,606 351,498 50,067 8,300 2013 382,270 394,548 394,461 361,785 351,330 353,112 70,914 9,409 2014 408,103 407,688 418,164 389,610 369,129 111,975 9,766 2015 374,209 373,747 380,265 355,300 127,537 10,379 2016 346,289 349,223 355,601 152,080 11,632 2017 375,397 393,443 256,260 12,903 2018 357,398 304,926 12,392 Total $ 3,298,346 Insurance professional lines Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 1,657 $ 20,619 $ 44,065 $ 68,690 $ 96,631 $ 106,985 $ 126,542 $ 165,088 $ 177,492 $ 184,577 2010 7,850 27,815 53,458 72,554 88,585 99,082 109,668 114,710 136,252 2011 7,399 32,812 73,940 107,980 165,206 237,804 282,907 294,043 2012 7,801 41,021 99,486 183,295 229,932 252,937 272,298 2013 17,633 72,784 128,858 174,759 211,931 241,074 2014 23,450 70,266 129,160 191,437 222,692 2015 19,976 67,313 137,145 168,627 2016 15,846 70,947 146,342 2017 20,812 71,495 2018 19,098 Total 1,756,498 All outstanding liabilities before 2009, net of reinsurance 45,848 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,587,696 Reinsurance credit and surety Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 143,398 $ 122,111 $ 105,827 $ 105,062 $ 104,236 $ 98,958 $ 95,726 $ 95,321 $ 93,688 $ 92,519 $ 1,304 2010 119,152 100,047 93,548 90,657 86,528 79,047 77,732 75,716 74,430 4,092 2011 121,471 107,811 105,955 112,964 111,019 102,529 100,718 100,146 5,770 2012 160,109 148,566 151,141 148,363 140,000 131,963 128,323 8,830 2013 165,413 153,616 144,472 140,589 136,402 125,112 8,083 2014 135,732 136,346 143,515 139,857 128,404 11,280 2015 160,837 166,951 161,789 157,612 26,891 2016 142,245 141,780 149,054 38,746 2017 135,750 134,063 38,299 2018 111,969 53,762 Total $ 1,201,632 Reinsurance credit and surety Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 32,479 $ 76,440 $ 78,378 $ 80,574 $ 84,401 $ 87,047 $ 87,180 $ 87,089 $ 87,594 $ 87,238 2010 28,218 48,715 59,776 60,452 62,144 63,279 64,710 65,724 66,023 2011 22,449 54,012 70,850 78,477 83,036 85,242 87,571 89,004 2012 49,631 85,701 99,705 105,551 109,073 110,844 112,118 2013 32,447 77,059 91,902 98,517 106,202 108,062 2014 35,570 61,440 86,539 95,675 103,272 2015 32,935 82,174 100,464 117,594 2016 42,069 73,603 92,788 2017 37,311 74,341 2018 38,975 Total 889,415 All outstanding liabilities before 2009, net of reinsurance 13,274 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 325,491 Reinsurance liability Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 172,680 $ 174,121 $ 180,945 $ 178,149 $ 184,811 $ 204,531 $ 192,287 $ 178,260 $ 168,917 $ 175,770 $ 13,563 2010 171,634 170,784 182,515 183,056 201,329 190,959 181,938 165,990 159,156 14,137 2011 172,431 172,399 174,124 191,761 197,871 194,715 193,830 191,962 24,450 2012 167,290 163,625 167,887 172,491 173,645 171,121 164,357 27,789 2013 172,784 176,465 182,428 184,467 184,147 177,273 53,822 2014 200,203 203,136 204,871 200,819 199,583 75,626 2015 214,942 215,273 216,201 215,997 97,353 2016 240,411 246,024 251,087 131,475 2017 277,034 270,564 176,854 2018 264,450 209,612 Total $ 2,070,199 Reinsurance liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 1,704 $ 17,102 $ 44,473 $ 56,623 $ 73,229 $ 103,662 $ 122,704 $ 127,009 $ 132,996 $ 136,539 2010 2,481 17,654 46,201 62,291 83,826 97,457 108,770 119,693 128,399 2011 5,189 21,273 39,981 70,102 92,466 112,328 123,387 135,625 2012 3,541 12,798 28,388 58,735 78,190 101,115 115,571 2013 5,969 22,236 52,327 69,052 88,264 102,588 2014 7,083 28,663 48,415 70,143 89,436 2015 7,271 27,457 54,524 80,865 2016 11,861 37,688 69,526 2017 12,424 42,092 2018 19,305 Total 919,946 All outstanding liabilities before 2009, net of reinsurance 54,315 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,204,568 Reinsurance property and other Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 For the years ended December 31, Total of incurred-but-not-reported liabilities plus expected development on reported claims Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 340,527 $ 284,210 $ 246,047 $ 232,639 $ 223,245 $ 204,560 $ 198,498 $ 200,422 $ 197,779 $ 198,189 $ 1,722 2010 612,614 600,219 569,357 582,855 585,247 579,065 571,120 569,043 568,179 5,532 2011 1,109,682 1,116,708 1,124,792 1,083,492 1,066,384 1,040,470 1,038,726 1,040,130 10,579 2012 555,241 523,310 507,750 477,145 461,255 456,334 457,703 8,446 2013 578,645 560,227 529,463 509,179 503,203 502,642 5,140 2014 540,406 560,478 534,229 521,797 519,967 43,358 2015 477,608 463,996 459,017 453,628 14,117 2016 614,940 633,597 620,702 30,481 2017 1,076,458 1,080,319 123,562 2018 880,269 492,589 Total $ 6,321,728 Reinsurance property and other Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 56,420 $ 129,397 $ 160,284 $ 178,388 $ 188,919 $ 188,240 $ 191,046 $ 192,728 $ 191,900 $ 190,174 2010 116,143 310,268 403,566 435,155 481,009 510,061 534,893 540,616 542,909 2011 251,538 587,390 793,972 893,041 922,456 995,795 1,010,611 1,013,191 2012 122,688 294,436 367,055 389,461 404,019 413,789 415,831 2013 107,085 324,443 440,804 470,990 480,712 482,114 2014 101,937 352,361 434,354 451,890 458,032 2015 71,244 265,569 368,360 400,615 2016 126,404 375,374 519,223 2017 252,008 722,835 2018 194,154 Total 4,939,078 All outstanding liabilities before 2009, net of reinsurance 11,126 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 1,393,776 Insurance liability Incurred claims and allocated claim adjustment expenses, net of reinsurance At December 31, 2018 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 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 61,469 $ 64,017 $ 67,410 $ 67,869 $ 75,883 $ 83,281 $ 101,179 $ 98,384 $ 98,999 $ 97,964 $ 9,450 4,093 2010 79,407 94,220 98,635 98,112 99,570 98,061 105,119 104,258 103,906 11,742 3,670 2011 72,586 75,329 83,118 87,059 85,242 83,730 82,127 82,625 17,357 3,222 2012 70,861 70,631 73,281 70,770 68,180 75,341 72,514 23,236 2,837 2013 92,150 94,178 94,253 87,498 93,216 95,632 21,345 3,520 2014 106,148 122,643 128,524 130,021 131,539 31,126 4,614 2015 127,319 125,819 136,305 164,036 52,818 5,975 2016 123,243 129,139 128,172 73,747 6,628 2017 161,211 165,061 107,070 5,842 2018 166,659 141,099 3,725 Total $ 1,208,108 Insurance liability Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance For the years ended December 31, Accident year 2009 unaudited 2010 unaudited 2011 unaudited 2012 unaudited 2013 unaudited 2014 unaudited 2015 unaudited 2016 unaudited 2017 unaudited 2018 2009 $ 726 $ 4,646 $ 13,305 $ 26,754 $ 31,865 $ 41,322 $ 44,105 $ 83,991 $ 84,975 $ 86,231 2010 1,030 15,966 30,788 53,581 61,029 66,114 71,788 86,433 87,981 2011 2,761 10,540 20,190 38,376 46,074 54,996 60,263 62,152 2012 1,630 5,514 15,411 30,145 37,139 42,745 46,545 2013 2,360 23,281 33,320 42,051 60,017 66,976 2014 1,415 18,645 49,840 71,617 84,397 2015 5,438 22,308 39,557 92,557 2016 6,318 23,286 36,406 2017 5,404 29,529 2018 8,704 Total 601,478 All outstanding liabilities before 2009, net of reinsurance 43,840 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 650,470 |
AVERAGE ANNUAL PERCENTAGE PAYOUT OF INCURRED CLAIMS BY AGE, NET OF REINSURANCE | Insurance property and other Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 34.5% 40.2% 13.2% 5.8% 2.0% 0.8% 0.7% 0.2% 0.3% —% Reinsurance professional lines Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 0.9% 5.9% 12.1% 14.4% 13.3% 12.7% 10.5% 5.2% 3.8% 3.9% Reinsurance credit and surety Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 29.9% 30.0% 12.6% 5.5% 4.3% 1.9% 1.3% 0.9% 0.5% (0.4)% Insurance credit and political risk Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 21.7% 38.9% 1.6% 3.1% 9.9% 3.3% 0.4% —% (0.5)% (0.1)% Reinsurance liability Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 3.4% 9.2% 13.1% 12.0% 11.2% 11.6% 8.1% 5.2% 4.5% 2.0% Insurance professional lines Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 4.1% 11.8% 15.7% 13.4% 11.6% 9.1% 8.2% 7.7% 8.6% 3.2% Reinsurance property and other Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 22.2% 39.9% 19.1% 6.5% 3.8% 2.9% 1.9% 0.7% —% (0.9)% Insurance aviation Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 22.3% 24.8% 20.0% 15.5% 8.6% 3.1% 2.3% (0.1)% 1.0% (0.4)% Insurance marine Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 21.9% 27.3% 20.8% 7.2% 6.2% 4.1% 4.0% (1.5)% 0.5% 2.6% Insurance liability Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2.8% 11.8% 12.9% 19.4% 10.0% 8.1% 5.0% 19.0% 1.3% 1.3% Reinsurance motor Average annual percentage payout of incurred claims by age, net of reinsurance (unaudited) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 19.5% 14.1% 8.6% 5.8% 4.7% 4.9% 3.0% 2.6% 2.8% 3.2% |
RECONCILIATION OF DEVELOPMENT TABLES TO CONSOLIDATED BALANCE SHEET | The following table reconciles the reserves for loss and loss expenses at December 31, 2018 included in the loss development tables to the reserves for loss and loss expenses reported in the consolidated balance sheet: Reconciliation of the disclosure of incurred and paid claims development to the liability for unpaid claims and claim adjustment expenses At December 31, 2018 Net outstanding liabilities Reinsurance recoverable on unpaid claims Gross outstanding liabilities Insurance segment Property and other $ 771,659 $ 482,207 $ 1,253,866 Marine 340,668 187,164 527,832 Aviation 91,404 14,310 105,714 Credit and political risk 99,011 24,536 123,547 Professional Lines 1,587,696 1,005,316 2,593,012 Liability 650,470 978,719 1,629,189 Total insurance segment 3,540,908 2,692,252 6,233,160 Reinsurance segment Property and other 1,393,776 435,671 1,829,447 Credit and surety 325,491 36,180 361,671 Professional lines 1,039,085 81,608 1,120,693 Motor 1,172,467 128,575 1,301,042 Liability 1,204,568 127,383 1,331,951 Total reinsurance segment 5,135,387 809,417 5,944,804 Total $ 8,676,295 $ 3,501,669 12,177,964 Unallocated claims adjustment expenses 145,768 Foreign exchange and other (1) 53,695 (Ceded)/assumed reserves related to retroactive transactions (96,658 ) Total liability for unpaid claims and claims adjustment expense $ 12,280,769 (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, 2018 | |
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, 2018 2017 2016 Premiums written Premiums earned Premiums written Premiums earned Premiums written Premiums earned Gross $ 6,910,065 $ 6,882,217 $ 5,556,273 $ 5,616,234 $ 4,970,208 $ 4,762,394 Ceded (2,251,103 ) (2,090,722 ) (1,529,130 ) (1,467,474 ) (1,217,234 ) (1,056,769 ) Net $ 4,658,962 $ 4,791,495 $ 4,027,143 $ 4,148,760 $ 3,752,974 $ 3,705,625 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 is shown in the following table: Year ended December 31, 2019 $ 250,000 2020 500,000 2021 — 2022 — 2023 — After 2023 600,000 Unamortized discount and debt issuance expenses (8,039 ) Total senior notes and notes payable $ 1,341,961 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2019 $ 28,240 2020 25,331 2021 27,025 2022 28,012 2023 23,801 Later years 118,497 Total future minimum lease payments $ 250,906 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | The following table presents a comparison of earnings (loss) per common share and earnings (loss) per diluted common share: At and year ended December 31, 2018 2017 2016 Earnings (loss) per common share Net income (loss) $ 43,021 $ (368,969 ) $ 513,368 Less: Preferred share dividends 42,625 46,810 46,597 Less: Loss on repurchase of preferred shares — — 1,309 Net income (loss) available (attributable) to common shareholders $ 396 $ (415,779 ) $ 465,462 Weighted average common shares outstanding 83,501 84,108 90,772 Earnings (loss) per common share $ — $ (4.94 ) $ 5.13 Earnings (loss) per diluted common share Net income (loss) available (attributable) to common shareholders $ 396 $ (415,779 ) $ 465,462 Weighted average common shares outstanding 83,501 84,108 90,772 Share-based compensation plans (1) 506 — 775 Weighted average diluted common shares outstanding (1) 84,007 84,108 91,547 Earnings (loss) per diluted common share $ — $ (4.94 ) $ 5.08 Weighted average anti-dilutive shares excluded from the dilutive computation 245 702 170 (1) 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, 2018 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES ISSUED AND OUTSTANDING | The following table presents changes in common shares issued and outstanding, excluding restricted stock units related to the Company's share-based compensation plans (refer to Note 16 ' Share-Based Compensation' ): Year ended December 31, 2018 2017 2016 Shares issued, balance at beginning of year 176,580 176,580 176,240 Shares issued — — 340 Total shares issued at end of year 176,580 176,580 176,580 Treasury shares, balance at beginning of year (93,419 ) (90,139 ) (80,174 ) Shares repurchased (200 ) (4,288 ) (10,508 ) Shares reissued 625 1,008 543 Total treasury shares at end of year (92,994 ) (93,419 ) (90,139 ) Total shares outstanding 83,586 83,161 86,441 |
SHARE REPURCHASES | The following table presents common shares repurchased from shares held in treasury: Year ended December 31, 2018 2017 2016 In the open market: Total shares (1) — 3,932 10,241 Total cost $ — $ 261,180 $ 557,476 Average price per share (2) $ — $ 66.43 $ 54.44 From employees: (3) Total shares 200 356 267 Total cost $ 10,080 $ 24,678 $ 14,329 Average price per share (2) $ 50.40 $ 69.36 $ 53.74 Total shares repurchased: Total shares 200 4,288 10,508 Total cost $ 10,080 $ 285,858 $ 571,805 Average price per share (2) $ 50.40 $ 66.67 $ 54.42 (1) Amounts in 2016 include common shares acquired under the accelerated share repurchase program of 1,358,380 (see below for more detail). (2) Calculated using whole numbers. (3) Shares are repurchased from employees to satisfy withholding tax liabilities that arise upon the vesting of restricted stock awards and restricted stock units. 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, 2018 | |
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 | a) Share-Settled Awards The following table provides an activity summary of the Company's share-settled RSUs: Share-Settled PSUs Share-Settled Service Based RSUs Number of restricted stock units Weighted average grant date fair value (1) Number of restricted stock units Weighted average grant date fair value (1) Nonvested restricted stock - 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 Granted 104 48.89 737 49.36 Vested (87 ) 54.71 (539 ) 54.51 Forfeited (15 ) 53.80 (142 ) 55.36 Nonvested restricted stock - December 31, 2018 232 $ 54.54 1,411 $ 54.12 (1) Fair value is based on the closing price of the Company's common shares on the grant date. (2) Share-settled restricted stock units that vested during the year ended December 31, 2017 included 313,391 service based restricted stock units which were granted in 2014 and were subject to a three year cliff vesting period. b) Cash-Settled Awards The following table provides an activity summary of the Company's cash-settled RSUs: Cash-Settled PSUs Cash-Settled Service based RSUs Number of restricted stock units Number of restricted stock units 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 Granted — 473 Vested (12 ) (390 ) Forfeited (3 ) (139 ) Nonvested restricted stock units - December 31, 2018 27 932 (1) Cash-settled restricted stock units that vested during the year ended December 31, 2017 included 307,556 service based restricted stock units which were granted in 2014 and were subject to a three year cliff vesting period. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 2017 2016 Current income tax expense (benefit) U.S. $ (5,401 ) $ (6,207 ) $ 606 Europe 10,409 10,249 7,451 Other 51 — — Deferred income tax expense (benefit) U.S. 15,288 18,495 (1,829 ) Europe (49,833 ) (30,079 ) 112 Total income tax expense (benefit) $ (29,486 ) $ (7,542 ) $ 6,340 Net current tax receivables (payables) $ 9,683 $ (639 ) $ 3,540 Net deferred tax assets 39,775 4,438 103,313 Net tax assets $ 49,458 $ 3,799 $ 106,853 |
SCHEDULE OF DEFERRED TAX ASSETS AND LIABILITIES | The significant components of deferred tax assets and liabilities were as follows: At December 31, 2018 2017 Deferred tax assets: Discounting of net reserves for losses and loss expenses $ 37,440 $ 27,804 Unearned premiums 40,447 25,188 Net unrealized investments losses 11,438 — Operating and capital loss carryforwards (1) 83,850 53,095 Accruals not currently deductible 32,589 31,560 Tax credits 8,672 29,929 Other deferred tax assets 9,195 15,047 Deferred tax assets before valuation allowance 223,631 182,623 Valuation allowance (18,955 ) (16,157 ) Deferred tax assets net of valuation allowance 204,676 166,466 Deferred tax liabilities: Deferred acquisition costs (39,745 ) (24,249 ) Net unrealized investments gains — (8,033 ) Amortization of VOBA, intangible assets and goodwill (49,097 ) (85,296 ) Equalization reserves (22,069 ) (23,274 ) Other deferred tax liabilities (53,990 ) (21,176 ) Deferred tax liabilities (164,901 ) (162,028 ) Net deferred tax assets $ 39,775 $ 4,438 (1) At December 31, 2018 and 2017, the total operating loss carryforwards includes Lloyd's deferred year of account losses of $68 million and $19 million , respectively. |
SUMMARY OF TAX CREDITS | Total operating and capital loss carryforwards and tax credits are summarized in the following table: At December 31, 2018 2017 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 79,445 $ 77,467 U.K. operating loss carryforward (2) 413,504 126,839 Ireland operating loss carryforward 12,756 — U.S. operating loss carryforward 15,062 115,236 Ireland capital loss carryforward 716 716 Tax Credits (1) Ireland foreign tax credit $ 2,248 $ 3,566 U.S. alternative minimum tax credit (3) 6,026 12,052 U.K. tax credit 398 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) At December 31, 2018 and 2017, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $403 million and $113 million , respectively. (3) As a result of U.S. tax reform, all alternative minimum tax credits will be refunded by tax year 2021. |
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, 2018 2017 Operating and Capital Loss Carryforwards (1) Singapore (branch) operating loss carryforward $ 79,445 $ 77,467 U.K. operating loss carryforward (2) 413,504 126,839 Ireland operating loss carryforward 12,756 — U.S. operating loss carryforward 15,062 115,236 Ireland capital loss carryforward 716 716 Tax Credits (1) Ireland foreign tax credit $ 2,248 $ 3,566 U.S. alternative minimum tax credit (3) 6,026 12,052 U.K. tax credit 398 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) At December 31, 2018 and 2017, the U.K. operating loss carryforward includes Lloyd's deferred year of account losses of $403 million and $113 million , respectively. (3) As a result of U.S. tax reform, all alternative minimum tax credits will be refunded by tax year 2021. |
VALUATION ALLOWANCE ROLL FORWARD | An analysis of the movement in the Company's valuation allowance is shown in the following table: At December 31, 2018 2017 Income tax expense: Valuation allowance - beginning of year $ 16,157 $ 41,100 Operating loss carryforwards 198 (27,116 ) Foreign tax credit (1,359 ) 267 U.K. branch assets and other foreign rate differentials (205 ) 1,006 U.S. alternative minimum tax credits (900 ) 900 Valuation allowance - end of year $ 13,891 $ 16,157 Accumulated other comprehensive income: Valuation allowance - beginning of year — — Change in investment - related items 5,064 — Valuation allowance - end of year 5,064 — Total valuation allowance - end of year $ 18,955 $ 16,157 |
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, 2018 2017 2016 Income (loss) before income taxes Bermuda (domestic) $ 181,597 $ (188,420 ) $ 469,306 Foreign (168,062 ) (188,091 ) 50,402 Total income before income taxes $ 13,535 $ (376,511 ) $ 519,708 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. 65.7 % 6.6 % (0.6 )% Europe (289.7 )% 5.8 % 1.5 % Other — % 0.3 % — % Valuation allowance (13.4 )% — % 0.2 % Net tax exempt income (3.3 )% 0.1 % (0.2 )% Change in U.S. enacted tax rate — % (11.1 )% — % Change in European enacted tax rate 16.9 % — % — % Other 5.9 % 0.3 % 0.3 % Actual tax rate (217.9 )% 2.0 % 1.2 % |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): Before tax amount Tax (expense) benefit Net of tax amount Year ended December 31, 2018 Available for sale investments: Unrealized investment gains (losses) arising during the year $ (297,259 ) $ 5,528 $ (291,731 ) Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income 105,730 (4,828 ) 100,902 Unrealized investment gains (losses) arising during the year, net of reclassification adjustment (1) (191,529 ) 700 (190,829 ) Non-credit portion of OTTI losses — — — Foreign currency translation adjustment (11,165 ) — (11,165 ) Total other comprehensive income (loss), net of tax $ (202,694 ) $ 700 $ (201,994 ) Year ended December 31, 2017 Available for sale investments: Unrealized investment gains (losses) arising during the year $ 211,151 $ (5,732 ) $ 205,419 Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income (33,892 ) 758 (33,134 ) Unrealized investment gains (losses) 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 (loss), net of tax $ 219,197 $ (4,974 ) $ 214,223 Year ended December 31, 2016 Available for sale investments: Unrealized investment gains (losses) arising during the year $ 10,165 $ (5,093 ) $ 5,072 Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income 60,423 1,767 62,190 Unrealized investment gains (losses) 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 (loss), net of tax $ 69,950 $ (3,326 ) $ 66,624 (1) Effective January 1, 2018, the Company adopted ASU No. 2016-01. The adoption of this guidance resulted in a cumulative adjustment to reclassify unrealized investment gains on equity securities from accumulated other comprehensive income to retained earnings. Refer to Item 8, Note 2 ' Basis of Presentation and Significant Accounting Policies ' to the consolidated financial statements for additional information. |
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | The following table presents reclassification amounts from accumulated other comprehensive income ("AOCI") to net income (loss) available (attributable) to common shareholders: Amount reclassified from AOCI (1) Details about AOCI components Consolidated statement of operations line item that includes reclassification Year ended December 31, 2018 2017 2016 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ (95,997 ) $ 48,385 $ (34,213 ) OTTI losses (9,733 ) (14,493 ) (26,210 ) Total before tax (105,730 ) 33,892 (60,423 ) Income tax (expense) benefit 4,828 (758 ) (1,767 ) Net of tax $ (100,902 ) $ 33,134 $ (62,190 ) Foreign currency translation adjustments Foreign exchange loss $ — $ (24,149 ) $ — Income tax (expense) benefit — — — Net of tax $ — $ (24,149 ) $ — (1) Amounts in parentheses are charges to net income (loss) available (attributable) to common shareholders |
STATUTORY FINANCIAL INFORMATI_2
STATUTORY FINANCIAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
STATUTORY FINANCIAL INFORMATION [Abstract] | |
STATUTORY CAPITAL AND SURPLUS BY JURISDICTION | At December 31, 2018 and 2017 , 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, 2018 2017 2018 2017 2018 2017 Required statutory capital and surplus $ 1,470,375 $ 1,800,064 $ 637,226 $ 613,923 $ 489,560 $ 488,560 Available statutory capital and surplus $ 3,513,342 $ 3,641,279 $ 896,868 $ 906,512 $ 1,668,847 $ 1,511,480 |
UNAUDITED CONDENSED QUARTERLY_2
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 Net premiums earned $ 1,167,402 $ 1,185,548 $ 1,224,075 $ 1,214,469 Net investment income 100,999 109,960 114,421 113,128 Net investment losses (14,830 ) (45,093 ) (17,628 ) (72,667 ) Underwriting income (loss) 143,737 115,726 59,026 (194,664 ) Net income (loss) available (attributable) to common shareholders 62,546 92,858 43,439 (198,448 ) Earnings (loss) per common share $ 0.75 $ 1.11 $ 0.52 $ (2.37 ) Earnings (loss) per diluted common share $ 0.75 $ 1.11 $ 0.52 $ (2.37 ) 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 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 (attributable) to common shareholders 5,014 85,030 (467,740 ) (38,081 ) Earnings (loss) per common share $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) Earnings (loss) per diluted common share $ 0.06 $ 1.01 $ (5.61 ) $ (0.46 ) (1) During the three months ended March 31, June 30, September 30 and December 31, 2018, the Company recognized transaction and reorganization expenses of $13 million , $19 million , $16 million and $19 million , respectively, related to its transformation program which was launched in 2017. This program encompasses the integration of Novae which commenced in the fourth quarter of 2017, the realignment of the accident and health business, together with other initiatives designed to increase the Company's efficiency and enhance the Company's profitability while delivering a customer-centric operating model. 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. (2) During the three months ended March 31, June 30, September 30 and December 31, 2018, the Company recognized amortization of VOBA of $57 million , $53 million , $39 million , $23 million , respectively, related to the acquisition of Novae. During the three months ended December 31, 2017, the Company recognized amortization of VOBA of $50 million . Refer to Item 8, Note 3 and Note 5 to the Consolidated Financial Statements ' Business Combinations ' and ' Goodwill and Intangible Assets ' for further details. (3) During the three months ended December 31, 2017, the Company recognized tax expense of $42 million due to the revaluation of net deferred tax asset pursuant to the U.S. Tax Reform. Refer to Item 8, Note 18 to the Consolidated Financial Statements 'Income Taxes' for further details. |
HISTORY (Details)
HISTORY (Details) | 2 Months Ended | |
Feb. 28, 2019 | Oct. 02, 2017 | |
Novae | ||
Business Acquisition [Line Items] | ||
Interests acquired | 100.00% | |
Subsequent Event | Axis Corporate Capital UK Limited | ||
Business Acquisition [Line Items] | ||
Capital support, percentage | 70.00% | |
Subsequent Event | Novae Corporate Underwriting Limited | ||
Business Acquisition [Line Items] | ||
Capital support, percentage | 30.00% |
SIGNIFICANT ACCOUNTING POLICES
SIGNIFICANT ACCOUNTING POLICES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 01, 2019 | Dec. 31, 2015 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | $ (6,910,065) | $ (5,556,273) | $ (4,970,208) | ||||||||||
Underwriting income (loss) | $ 194,664 | $ (59,026) | $ (115,726) | $ (143,737) | $ (26,130) | $ 512,853 | $ (57,012) | $ (16,385) | |||||
Revenue | 32,000 | ||||||||||||
Accounting Standards Update 2016-01 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Deferred income tax expense (benefit) | 13,000 | ||||||||||||
Unrealized gains on equity securities, net of tax, in AOCI | 70,000 | 70,000 | |||||||||||
Accounting Standards Update 2018-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Change in tax rate, deferred tax liability, provisional income tax benefit | 2,000 | ||||||||||||
Retained earnings | Accounting Standards Update 2016-01 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cumulative effect of adoption of ASU | (69,604) | (69,604) | 0 | $ 0 | |||||||||
Retained earnings | Accounting Standards Update 2018-02 | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Cumulative effect of adoption of ASU | $ 2,106 | 2,106 | 0 | $ 0 | |||||||||
Accounting Standards Update 2018-11 | Scenario, Forecast | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Operating lease, liability | $ 149,000 | ||||||||||||
Operating Segments | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | (6,910,065) | (5,556,273) | (4,970,208) | ||||||||||
Underwriting income (loss) | (123,827) | 413,326 | (279,073) | ||||||||||
Operating Segments | Insurance | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | (3,797,592) | (2,814,918) | (2,432,475) | ||||||||||
Underwriting income (loss) | (77,298) | 241,642 | (22,630) | ||||||||||
Operating Segments | Insurance | Restatement Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | 313,000 | 288,000 | |||||||||||
Underwriting income (loss) | 14,000 | 15,000 | |||||||||||
Operating Segments | Reinsurance | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | (3,112,473) | (2,741,355) | (2,537,733) | ||||||||||
Underwriting income (loss) | $ (46,529) | 171,684 | (256,443) | ||||||||||
Operating Segments | Reinsurance | Restatement Adjustment | |||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||||||||||
Gross premiums written | (313,000) | (288,000) | |||||||||||
Underwriting income (loss) | $ (14,000) | $ (15,000) |
BUSINESS COMBINATIONS - Narrati
BUSINESS COMBINATIONS - Narrative (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Apr. 01, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Sep. 06, 2017 |
Business Acquisition [Line Items] | ||||||||||||
Transaction and reorganization expenses | $ 19,000 | $ 16,000 | $ 19,000 | $ 13,000 | $ 21,000 | $ 6,000 | ||||||
Goodwill | $ 102,003 | $ 102,003 | $ 102,003 | $ 102,003 | ||||||||
Bargain purchase gain | 0 | 15,044 | $ 0 | |||||||||
Novae | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interests acquired | 100.00% | |||||||||||
Total purchase price paid | $ 616,926 | |||||||||||
Transaction and reorganization expenses | $ 26,000 | $ 27,000 | ||||||||||
Goodwill | 54,047 | |||||||||||
Finite lived other intangible assets | 385,000 | |||||||||||
Value of business acquired - definite lived intangible asset | 256,942 | |||||||||||
Indefinite lived intangible assets | 94,748 | |||||||||||
Total liabilities assumed | 3,342,912 | |||||||||||
Novae | Distribution networks | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite lived other intangible assets | $ 128,463 | |||||||||||
Aviabel | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interests acquired | 100.00% | |||||||||||
Assets | $ 182,000 | |||||||||||
Total liabilities assumed | 79,000 | |||||||||||
Bargain purchase gain | $ 15,000 | |||||||||||
Contessa Limited | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Interests acquired | 100.00% | |||||||||||
Goodwill | $ 1,000 |
BUSINESS COMBINATIONS - Assets
BUSINESS COMBINATIONS - Assets acquired and liabilities assumed assets acquired and liabilities assumed (Details) - USD ($) $ in Thousands | Oct. 02, 2017 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair value of identifiable intangible assets: | |||
Goodwill | $ 102,003 | $ 102,003 | |
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 | ||
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 | 385,000 |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||||||||||||
Net premiums earned | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 4,791,495 | $ 4,148,760 | $ 3,705,625 | |
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 r
SEGMENT INFORMATION - Segment results (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2018USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2018USD ($)reportable_segment | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Segment Information [Line Items] | ||||||||||||
Number of reportable segments | reportable_segment | 2 | |||||||||||
Gross premiums written | $ 6,910,065 | $ 5,556,273 | $ 4,970,208 | |||||||||
Net premiums written | 4,658,962 | 4,027,143 | 3,752,974 | |||||||||
Net premiums earned | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | 4,791,495 | 4,148,760 | 3,705,625 | |
Other insurance related income (losses) | 10,622 | (1,240) | 7,222 | |||||||||
Net losses and loss expenses | (3,190,287) | (3,287,772) | (2,204,197) | |||||||||
Acquisition costs | (968,835) | (823,591) | (746,876) | |||||||||
General and administrative expenses | (627,389) | (579,428) | (602,717) | |||||||||
Underwriting income (loss) | (194,664) | 59,026 | 115,726 | 143,737 | 26,130 | (512,853) | 57,012 | 16,385 | ||||
Net investment income | 113,128 | 114,421 | 109,960 | 100,999 | 100,908 | 95,169 | 106,063 | 98,664 | 438,507 | 400,805 | 353,335 | |
Net investment losses | (72,667) | (17,628) | (45,093) | (14,830) | 43,038 | $ 14,632 | $ (4,392) | $ (25,050) | (150,218) | 28,226 | (60,525) | |
Foreign exchange gains | 29,165 | (134,737) | 121,295 | |||||||||
Interest expense and financing costs | (67,432) | (54,811) | (51,360) | |||||||||
Bargain purchase gain | 0 | 15,044 | 0 | |||||||||
Transaction and reorganization expenses | (66,940) | (26,718) | 0 | |||||||||
Amortization of value of business acquired | (23,000) | $ (39,000) | $ (53,000) | $ (57,000) | (50,000) | (172,332) | (50,104) | 0 | ||||
Amortization of intangible assets | (13,814) | (2,543) | 0 | |||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | 12,542 | (368,109) | 521,802 | |||||||||
Total intangible assets | 379,285 | 566,828 | 379,285 | 566,828 | 85,049 | $ 86,858 | ||||||
Operating Segments | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 6,910,065 | 5,556,273 | 4,970,208 | |||||||||
Net premiums written | 4,658,962 | 4,027,143 | 3,752,974 | |||||||||
Net premiums earned | 4,791,495 | 4,148,760 | 3,705,625 | |||||||||
Other insurance related income (losses) | 10,622 | (1,240) | 7,222 | |||||||||
Net losses and loss expenses | (3,190,287) | (3,287,772) | (2,204,197) | |||||||||
Acquisition costs | (968,835) | (823,591) | (746,876) | |||||||||
General and administrative expenses | (519,168) | (449,483) | (482,701) | |||||||||
Underwriting income (loss) | $ 123,827 | $ (413,326) | $ 279,073 | |||||||||
Net loss and loss expense ratio | 66.60% | 79.20% | 59.50% | |||||||||
Acquisition cost ratio | 20.20% | 19.90% | 20.20% | |||||||||
General and administrative expense ratio | 13.10% | 14.00% | 16.20% | |||||||||
Combined ratio | 99.90% | 113.10% | 95.90% | |||||||||
Total intangible assets | 379,285 | 566,828 | $ 379,285 | $ 566,828 | $ 85,049 | |||||||
Operating Segments | Insurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 3,797,592 | 2,814,918 | 2,432,475 | |||||||||
Net premiums written | 2,324,747 | 1,775,825 | 1,519,559 | |||||||||
Net premiums earned | 2,362,606 | 1,816,438 | 1,534,282 | |||||||||
Other insurance related income (losses) | 3,460 | 2,944 | 89 | |||||||||
Net losses and loss expenses | (1,494,323) | (1,465,427) | (977,771) | |||||||||
Acquisition costs | (399,193) | (270,229) | (206,619) | |||||||||
General and administrative expenses | (395,252) | (325,368) | (327,351) | |||||||||
Underwriting income (loss) | $ 77,298 | $ (241,642) | $ 22,630 | |||||||||
Net loss and loss expense ratio | 63.20% | 80.70% | 63.70% | |||||||||
Acquisition cost ratio | 16.90% | 14.90% | 13.50% | |||||||||
General and administrative expense ratio | 16.80% | 17.90% | 21.30% | |||||||||
Combined ratio | 96.90% | 113.50% | 98.50% | |||||||||
Total intangible assets | 379,285 | 566,828 | $ 379,285 | $ 566,828 | $ 85,049 | |||||||
Operating Segments | Reinsurance | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Gross premiums written | 3,112,473 | 2,741,355 | 2,537,733 | |||||||||
Net premiums written | 2,334,215 | 2,251,318 | 2,233,415 | |||||||||
Net premiums earned | 2,428,889 | 2,332,322 | 2,171,343 | |||||||||
Other insurance related income (losses) | 7,162 | (4,184) | 7,133 | |||||||||
Net losses and loss expenses | (1,695,964) | (1,822,345) | (1,226,426) | |||||||||
Acquisition costs | (569,642) | (553,362) | (540,257) | |||||||||
General and administrative expenses | (123,916) | (124,115) | (155,350) | |||||||||
Underwriting income (loss) | $ 46,529 | $ (171,684) | $ 256,443 | |||||||||
Net loss and loss expense ratio | 69.80% | 78.10% | 56.50% | |||||||||
Acquisition cost ratio | 23.50% | 23.70% | 24.90% | |||||||||
General and administrative expense ratio | 5.10% | 5.30% | 7.10% | |||||||||
Combined ratio | 98.40% | 107.10% | 88.50% | |||||||||
Total intangible assets | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | |||||||
Corporate | ||||||||||||
Segment Information [Line Items] | ||||||||||||
General and administrative expenses | (108,221) | (129,945) | (120,016) | |||||||||
Significant Reconciling Items | ||||||||||||
Segment Information [Line Items] | ||||||||||||
Net investment income | 438,507 | 400,805 | 353,335 | |||||||||
Net investment losses | (150,218) | 28,226 | (60,525) | |||||||||
Foreign exchange gains | 29,165 | (134,737) | 121,295 | |||||||||
Interest expense and financing costs | (67,432) | (54,811) | $ (51,360) | |||||||||
Bargain purchase gain | 15,044 | |||||||||||
Transaction and reorganization expenses | (66,940) | (26,718) | ||||||||||
Amortization of value of business acquired | (172,332) | (50,104) | ||||||||||
Amortization of intangible assets | $ (13,814) | $ (2,543) |
SEGMENT INFORMATION - Gross pre
SEGMENT INFORMATION - Gross premiums written (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 6,910,065 | $ 5,556,273 | $ 4,970,208 |
Bermuda | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 606,452 | 529,425 | 465,980 |
Ireland | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 1,805,882 | 1,569,956 | 1,650,229 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | 2,811,537 | 2,814,933 | 2,562,789 |
Lloyd's of London | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Gross premiums written | $ 1,686,194 | $ 641,959 | $ 291,210 |
SEGMENT INFORMATION - Net premi
SEGMENT INFORMATION - Net premiums earned (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 4,791,495 | $ 4,148,760 | $ 3,705,625 |
Operating Segments | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 4,791,495 | 4,148,760 | 3,705,625 | ||||||||
Operating Segments | Insurance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 2,362,606 | 1,816,438 | 1,534,282 | ||||||||
Operating Segments | Insurance | Property | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 796,945 | 543,342 | 426,918 | ||||||||
Operating Segments | Insurance | Marine | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 300,944 | 181,533 | 150,046 | ||||||||
Operating Segments | Insurance | Terrorism | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 49,150 | 36,084 | 33,279 | ||||||||
Operating Segments | Insurance | Aviation | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 74,203 | 75,107 | 44,980 | ||||||||
Operating Segments | Insurance | Credit and political risk | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 102,825 | 56,432 | 57,964 | ||||||||
Operating Segments | Insurance | Professional lines | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 570,241 | 519,759 | 510,806 | ||||||||
Operating Segments | Insurance | Liability | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 229,373 | 188,770 | 169,182 | ||||||||
Operating Segments | Insurance | Accident and health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 207,777 | 199,121 | 141,107 | ||||||||
Operating Segments | Insurance | Discontinued lines - Novae | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 31,148 | 16,290 | 0 | ||||||||
Operating Segments | Reinsurance | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 2,428,889 | 2,332,322 | 2,171,343 | ||||||||
Operating Segments | Reinsurance | Catastrophe | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 250,016 | 209,470 | 199,825 | ||||||||
Operating Segments | Reinsurance | Property | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 317,038 | 304,376 | 272,403 | ||||||||
Operating Segments | Reinsurance | Professional lines | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 220,687 | 226,622 | 289,868 | ||||||||
Operating Segments | Reinsurance | Credit and surety | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 250,276 | 244,186 | 252,210 | ||||||||
Operating Segments | Reinsurance | Motor | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 438,693 | 371,501 | 318,863 | ||||||||
Operating Segments | Reinsurance | Liability | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 363,292 | 351,940 | 332,479 | ||||||||
Operating Segments | Reinsurance | Agriculture | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 176,435 | 195,391 | 142,501 | ||||||||
Operating Segments | Reinsurance | Engineering | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 67,932 | 66,291 | 62,833 | ||||||||
Operating Segments | Reinsurance | Marine and other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 35,570 | 64,449 | 57,322 | ||||||||
Operating Segments | Reinsurance | Accident and health | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | 299,813 | 289,925 | 243,039 | ||||||||
Operating Segments | Reinsurance | Discontinued lines - Novae | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net premiums earned | $ 9,137 | $ 8,171 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Oct. 02, 2017 | Sep. 06, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charges | $ 3,500,000 | ||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | 102,003,000 | $ 102,003,000 | |||
Goodwill and Intangible Asset Impairment | $ 3,500,000 | $ 0 | $ 0 | ||
Minimum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Economic useful life | 1 year | ||||
Maximum | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Economic useful life | 14 years | ||||
Novae | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite lived other intangible assets | $ 385,000,000 | ||||
Value of business acquired - definite lived intangible asset | 256,942,000 | ||||
Indefinite lived intangible assets | 94,748,000 | ||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | 54,047,000 | ||||
Contessa Limited | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Excess purchase price over fair value of net assets acquired assigned to goodwill | $ 1,000,000 | ||||
Distribution networks | Novae | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite lived other intangible assets | $ 128,463,000 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Analysis of goodwill and intangible assets (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | ||||
Goodwill, gross | $ 97,092,000 | $ 42,237,000 | $ 42,237,000 | |
Accumulated translation adjustment | 4,911,000 | 4,911,000 | 4,911,000 | |
Goodwill, net of accumulated translation adjustment | $ 102,003,000 | 102,003,000 | 47,148,000 | 47,148,000 |
Acquired during the year | 54,855,000 | |||
Intangible assets with an indefinite life | ||||
Gross amount | 120,784,000 | 26,036,000 | 26,036,000 | |
Accumulated translation adjustment | 0 | 0 | 0 | |
Intangible assets with an indefinite life, net | 120,784,000 | 120,784,000 | 26,036,000 | |
Acquired during the year | 94,748,000 | |||
Intangible assets with a finite life | ||||
Gross amount | 410,575,000 | 23,030,000 | 23,030,000 | |
Accumulated amortization | (66,534,000) | (11,165,000) | (9,356,000) | |
Accumulated translation adjustment | 0 | 0 | 0 | |
Intangible assets with a finite life, net | 156,498,000 | 344,041,000 | 11,865,000 | 13,674,000 |
Acquired during the year | 387,545,000 | |||
Amortization | (184,043,000) | (55,369,000) | (1,809,000) | |
Impairment charge | (3,500,000) | |||
Total | ||||
Gross amount | 628,451,000 | 91,303,000 | 91,303,000 | |
Accumulated amortization | (66,534,000) | (11,165,000) | (9,356,000) | |
Accumulated translation adjustment | 4,911,000 | 4,911,000 | 4,911,000 | |
Goodwill and intangible assets net balance | 379,285,000 | 566,828,000 | 85,049,000 | $ 86,858,000 |
Acquired during the year | 537,148,000 | |||
Amortization | (184,043,000) | (55,369,000) | (1,809,000) | |
Impairment charge | $ (3,500,000) | $ 0 | $ 0 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Gross amount and accumulated amortization by category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | $ 531,359 | $ 531,359 |
Accumulated amortization and impairment | (254,077) | (66,534) |
Total intangible assets | 277,282 | 464,825 |
Impairment charges | 3,500 | |
Customer lists, trademark and non-compete - Media Pro | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 9,700 | 9,700 |
Accumulated amortization and impairment | (9,598) | (9,244) |
Total intangible assets | 102 | 456 |
Customer relationships and customers lists - Ternian | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 13,330 | 13,330 |
Accumulated amortization and impairment | (4,999) | (3,666) |
Total intangible assets | 8,331 | 9,664 |
Coverholders | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 63,565 | 63,565 |
Accumulated amortization and impairment | (6,622) | (1,324) |
Total intangible assets | 56,943 | 62,241 |
Large brokers | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 46,641 | 46,641 |
Accumulated amortization and impairment | (3,888) | (777) |
Total intangible assets | 42,753 | 45,864 |
SME brokers | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 14,126 | 14,126 |
Accumulated amortization and impairment | (1,471) | (294) |
Total intangible assets | 12,655 | 13,832 |
MGA contract(1) | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 4,131 | 4,131 |
Accumulated amortization and impairment | (4,131) | (148) |
Total intangible assets | 0 | 3,983 |
Impairment charges | 3,500 | |
U.S. state licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 26,036 | 26,036 |
Total intangible assets | 26,036 | 26,036 |
Syndicate capacity | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 94,748 | 94,748 |
Total intangible assets | 94,748 | 94,748 |
Avaibel | VOBA - Novae | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 2,140 | 2,140 |
Accumulated amortization and impairment | (2,140) | (977) |
Total intangible assets | 0 | 1,163 |
Novae | VOBA - Novae | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross amount | 256,942 | 256,942 |
Accumulated amortization and impairment | (221,228) | (50,104) |
Total intangible assets | $ 35,714 | $ 206,838 |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS - Estimated amortization expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
VOBA | ||||
2,019 | $ 26,722 | |||
2,020 | 5,139 | |||
2,021 | 3,853 | |||
2,022 | 0 | |||
2,023 | 0 | |||
2024 and thereafter | 0 | |||
Value of business acquired | 35,714 | $ 206,838 | ||
Intangible assets | ||||
2,019 | 11,017 | |||
2,020 | 10,916 | |||
2,021 | 10,916 | |||
2,022 | 10,916 | |||
2,023 | 10,916 | |||
2024 and thereafter | 66,103 | |||
Total | 120,784 | |||
Indefinite lived intangible assets | 120,784 | 120,784 | $ 26,036 | $ 26,036 |
Intangible assets, net | 241,568 | 257,987 | ||
Total | ||||
2,019 | 37,739 | |||
2,020 | 16,055 | |||
2,021 | 14,769 | |||
2,022 | 10,916 | |||
2,023 | 10,916 | |||
2024 and thereafter | 66,103 | |||
Total remaining amortization expense | 156,498 | |||
Total intangible assets | $ 277,282 | $ 464,825 |
INVESTMENTS - Amortized cost or
INVESTMENTS - Amortized cost or cost and fair values (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fixed maturities | ||
Amortized cost | $ 11,616,312 | $ 12,611,219 |
Gross unrealized gains | 33,874 | 101,660 |
Gross unrealized losses | (214,839) | (90,873) |
Fair value | 11,435,347 | 12,622,006 |
Non-credit OTTI in AOCI | (857) | (853) |
U.S. government and agency | ||
Fixed maturities | ||
Amortized cost | 1,520,142 | 1,727,643 |
Gross unrealized gains | 4,232 | 1,735 |
Gross unrealized losses | (8,677) | (16,909) |
Fair value | 1,515,697 | 1,712,469 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-U.S. government | ||
Fixed maturities | ||
Amortized cost | 507,550 | 798,582 |
Gross unrealized gains | 1,586 | 17,240 |
Gross unrealized losses | (16,120) | (9,523) |
Fair value | 493,016 | 806,299 |
Non-credit OTTI in AOCI | 0 | 0 |
Corporate debt | ||
Fixed maturities | ||
Amortized cost | 4,990,279 | 5,265,795 |
Gross unrealized gains | 15,086 | 61,922 |
Gross unrealized losses | (128,444) | (29,851) |
Fair value | 4,876,921 | 5,297,866 |
Non-credit OTTI in AOCI | 0 | 0 |
Agency RMBS | ||
Fixed maturities | ||
Amortized cost | 1,666,684 | 2,414,720 |
Gross unrealized gains | 6,508 | 8,132 |
Gross unrealized losses | (29,884) | (27,700) |
Fair value | 1,643,308 | 2,395,152 |
Non-credit OTTI in AOCI | 0 | 0 |
CMBS | ||
Fixed maturities | ||
Amortized cost | 1,103,507 | 776,715 |
Gross unrealized gains | 2,818 | 4,138 |
Gross unrealized losses | (13,795) | (3,125) |
Fair value | 1,092,530 | 777,728 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-Agency RMBS | ||
Fixed maturities | ||
Amortized cost | 40,732 | 45,713 |
Gross unrealized gains | 1,237 | 1,917 |
Gross unrealized losses | (1,282) | (799) |
Fair value | 40,687 | 46,831 |
Non-credit OTTI in AOCI | (857) | (853) |
ABS | ||
Fixed maturities | ||
Amortized cost | 1,651,350 | 1,432,884 |
Gross unrealized gains | 1,493 | 5,391 |
Gross unrealized losses | (15,240) | (1,994) |
Fair value | 1,637,603 | 1,436,281 |
Non-credit OTTI in AOCI | 0 | 0 |
Municipals | ||
Fixed maturities | ||
Amortized cost | 136,068 | 149,167 |
Gross unrealized gains | 914 | 1,185 |
Gross unrealized losses | (1,397) | (972) |
Fair value | 135,585 | 149,380 |
Non-credit OTTI in AOCI | $ 0 | $ 0 |
INVESTMENTS - Equity securities
INVESTMENTS - Equity securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | $ 365,905 | $ 552,867 |
Gross unrealized gains | 33,610 | 84,527 |
Gross unrealized losses | (17,882) | (1,883) |
Fair value | 381,633 | 635,511 |
Common stocks | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 790 | 22,836 |
Gross unrealized gains | 112 | 3,412 |
Gross unrealized losses | (375) | (590) |
Fair value | 527 | 25,658 |
Exchange-traded funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 213,420 | 356,252 |
Gross unrealized gains | 33,498 | 71,675 |
Gross unrealized losses | (10,079) | (294) |
Fair value | 236,839 | 427,633 |
Bond mutual funds | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Cost | 151,695 | 173,779 |
Gross unrealized gains | 0 | 9,440 |
Gross unrealized losses | (7,428) | (999) |
Fair value | $ 144,267 | $ 182,220 |
INVESTMENTS - Contractual matur
INVESTMENTS - Contractual maturities of fixed maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized cost | ||
Due in one year or less | $ 430,390 | $ 486,659 |
Due after one year through five years | 4,751,064 | 4,906,207 |
Due after five years through ten years | 1,762,452 | 2,338,964 |
Due after ten years | 210,133 | 209,357 |
Total fixed maturities with a single maturity date (amortized cost) | 7,154,039 | 7,941,187 |
Total | 11,616,312 | 12,611,219 |
Fair value | ||
Due in one year or less | 426,142 | 484,663 |
Due after one year through five years | 4,691,263 | 4,912,189 |
Due after five years through ten years | 1,697,737 | 2,350,433 |
Due after ten years | 206,077 | 218,729 |
Total fixed maturities with a single maturity date (fair value) | 7,021,219 | 7,966,014 |
Fair value | $ 11,435,347 | $ 12,622,006 |
% of Total fair value | ||
Due in one year or less | 3.70% | 3.80% |
Due after one year through five years | 41.00% | 38.90% |
Due after five years through ten years | 14.80% | 18.60% |
Due after ten years | 1.80% | 1.70% |
Fixed maturities with a single maturity date (% of total fair value) | 61.30% | 63.00% |
Total | 100.00% | 100.00% |
Agency RMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,666,684 | $ 2,414,720 |
Total | 1,666,684 | 2,414,720 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,643,308 | 2,395,152 |
Fair value | $ 1,643,308 | $ 2,395,152 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 14.40% | 19.00% |
CMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,103,507 | $ 776,715 |
Total | 1,103,507 | 776,715 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,092,530 | 777,728 |
Fair value | $ 1,092,530 | $ 777,728 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 9.60% | 6.20% |
Non-Agency RMBS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 40,732 | $ 45,713 |
Total | 40,732 | 45,713 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 40,687 | 46,831 |
Fair value | $ 40,687 | $ 46,831 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 0.40% | 0.40% |
ABS | ||
Amortized cost | ||
Fixed maturities without a single maturity date | $ 1,651,350 | $ 1,432,884 |
Total | 1,651,350 | 1,432,884 |
Fair value | ||
Fixed maturities without a single maturity date (fair value) | 1,637,603 | 1,436,281 |
Fair value | $ 1,637,603 | $ 1,436,281 |
% of Total fair value | ||
Fixed maturities without a single maturity date (% of total fair value) | 14.30% | 11.40% |
INVESTMENTS - Gross unrealized
INVESTMENTS - Gross unrealized losses (Details) $ in Thousands | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Fixed maturities | ||
Total Unrealized Losses | $ (215,000) | $ (91,000) |
Fixed maturities | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 3,569,519 | 1,532,513 |
Unrealized Losses - 12 months or greater | (114,561) | (44,352) |
Fair Value - Less than 12 months | 4,917,951 | 5,619,002 |
Unrealized Losses - Less than 12 months | (100,278) | (46,521) |
Total Fair Value | 8,487,470 | 7,151,515 |
Total Unrealized Losses | (214,839) | (90,873) |
Equity securities | ||
Fair Value - 12 months or greater | $ 3,570,000 | $ 1,533,000 |
Unrealized loss position, number of positions | security | 3,599 | 2,424 |
Continuous unrealized loss position, 12 months or longer, number of positions | security | 1,656 | 627 |
Fixed maturities | Below Investment Grade or Not Rated | ||
Fixed maturities | ||
Total Unrealized Losses | $ (49,000) | $ (7,000) |
U.S. government and agency | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 374,030 | 194,916 |
Unrealized Losses - 12 months or greater | (7,659) | (5,963) |
Fair Value - Less than 12 months | 424,439 | 1,389,792 |
Unrealized Losses - Less than 12 months | (1,018) | (10,946) |
Total Fair Value | 798,469 | 1,584,708 |
Total Unrealized Losses | (8,677) | (16,909) |
Non-U.S. government | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 44,339 | 62,878 |
Unrealized Losses - 12 months or greater | (2,004) | (6,806) |
Fair Value - Less than 12 months | 303,376 | 204,110 |
Unrealized Losses - Less than 12 months | (14,116) | (2,717) |
Total Fair Value | 347,715 | 266,988 |
Total Unrealized Losses | (16,120) | (9,523) |
Corporate debt | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 1,439,378 | 407,300 |
Unrealized Losses - 12 months or greater | (58,915) | (11,800) |
Fair Value - Less than 12 months | 2,547,135 | 2,041,845 |
Unrealized Losses - Less than 12 months | (69,529) | (18,051) |
Total Fair Value | 3,986,513 | 2,449,145 |
Total Unrealized Losses | (128,444) | (29,851) |
Agency RMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 940,645 | 759,255 |
Unrealized Losses - 12 months or greater | (29,255) | (17,453) |
Fair Value - Less than 12 months | 117,181 | 1,172,313 |
Unrealized Losses - Less than 12 months | (629) | (10,247) |
Total Fair Value | 1,057,826 | 1,931,568 |
Total Unrealized Losses | (29,884) | (27,700) |
CMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 455,582 | 31,607 |
Unrealized Losses - 12 months or greater | (11,430) | (703) |
Fair Value - Less than 12 months | 353,802 | 348,943 |
Unrealized Losses - Less than 12 months | (2,365) | (2,422) |
Total Fair Value | 809,384 | 380,550 |
Total Unrealized Losses | (13,795) | (3,125) |
Non-Agency RMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 9,494 | 8,029 |
Unrealized Losses - 12 months or greater | (1,170) | (788) |
Fair Value - Less than 12 months | 11,432 | 4,197 |
Unrealized Losses - Less than 12 months | (112) | (11) |
Total Fair Value | 20,926 | 12,226 |
Total Unrealized Losses | (1,282) | (799) |
ABS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 237,237 | 57,298 |
Unrealized Losses - 12 months or greater | (2,755) | (570) |
Fair Value - Less than 12 months | 1,150,692 | 392,170 |
Unrealized Losses - Less than 12 months | (12,485) | (1,424) |
Total Fair Value | 1,387,929 | 449,468 |
Total Unrealized Losses | (15,240) | (1,994) |
Municipals | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 68,814 | 11,230 |
Unrealized Losses - 12 months or greater | (1,373) | (269) |
Fair Value - Less than 12 months | 9,894 | 65,632 |
Unrealized Losses - Less than 12 months | (24) | (703) |
Total Fair Value | 78,708 | 76,862 |
Total Unrealized Losses | $ (1,397) | (972) |
Equity securities | ||
Equity securities | ||
Fair Value - 12 months or greater | 0 | |
Unrealized Losses - 12 months or greater | 0 | |
Fair Value - Less than 12 months | 27,709 | |
Unrealized Losses - less than 12 months | (1,883) | |
Total Fair Value | 27,709 | |
Total Unrealized Losses | (1,883) | |
Common stocks | ||
Equity securities | ||
Fair Value - 12 months or greater | 0 | |
Unrealized Losses - 12 months or greater | 0 | |
Fair Value - Less than 12 months | 3,202 | |
Unrealized Losses - less than 12 months | (590) | |
Total Fair Value | 3,202 | |
Total Unrealized Losses | (590) | |
Exchange-traded funds | ||
Equity securities | ||
Fair Value - 12 months or greater | 0 | |
Unrealized Losses - 12 months or greater | 0 | |
Fair Value - Less than 12 months | 12,323 | |
Unrealized Losses - less than 12 months | (294) | |
Total Fair Value | 12,323 | |
Total Unrealized Losses | (294) | |
Bond mutual funds | ||
Equity securities | ||
Fair Value - 12 months or greater | 0 | |
Unrealized Losses - 12 months or greater | 0 | |
Fair Value - Less than 12 months | 12,184 | |
Unrealized Losses - less than 12 months | (999) | |
Total Fair Value | 12,184 | |
Total Unrealized Losses | $ (999) |
INVESTMENTS - Mortgage loans (D
INVESTMENTS - Mortgage loans (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Mortgage Loans held-for-investment: | ||
Commercial | $ 298,650,000 | $ 325,062,000 |
Total Mortgage Loans held-for-investment | $ 298,650,000 | $ 325,062,000 |
% of Total | ||
Commercial | 100.00% | 100.00% |
Total Mortgage Loans held-for-investment | 100.00% | 100.00% |
Debt service coverage ratio, in excess of | 2.2 | |
Loan-to-value ratio, percent (less than) | 60.00% | |
Credit losses on commercial mortgage loans | $ 0 | $ 0 |
INVESTMENTS - Other Investments
INVESTMENTS - Other Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Investments [Line Items] | |||
Fair value | $ 787,787 | $ 1,009,373 | |
Percentage of total fair value | 100.00% | 100.00% | |
Unfunded commitments related to other investments | $ 507,000 | $ 414,000 | |
Hedge funds | Lockup Redemption Restriction | |||
Other Investments [Line Items] | |||
Fair value of other investments subject to redemption restrictions | $ 27,000 | $ 38,000 | |
Percentage of fair value of other investments subject to redemption restrictions | 14.00% | 11.00% | |
Long/short equity funds | |||
Other Investments [Line Items] | |||
Fair value | $ 26,779 | $ 38,470 | |
Percentage of total fair value | 3.00% | 4.00% | |
Redemption notice period | 60 days | 60 days | |
Multi-strategy funds | |||
Other Investments [Line Items] | |||
Fair value | $ 153,883 | $ 286,164 | |
Percentage of total fair value | 20.00% | 28.00% | |
Multi-strategy funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 84,000 | $ 16,000 | |
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] | |||
Fair value | $ 13,936 | $ 39,177 | |
Percentage of total fair value | 2.00% | 4.00% | |
Redemption notice period | 45 days | 45 days | |
Direct lending funds | |||
Other Investments [Line Items] | |||
Fair value | $ 274,478 | $ 250,681 | |
Percentage of total fair value | 35.00% | 25.00% | |
Direct lending funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 210,000 | $ 137,000 | |
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] | |||
Fair value | $ 64,566 | $ 68,812 | |
Percentage of total fair value | 8.00% | 7.00% | |
Unfunded commitments related to other investments | $ 16,000 | $ 21,000 | |
Investment term | 10 years | ||
Real estate funds | |||
Other Investments [Line Items] | |||
Fair value | $ 84,202 | $ 50,009 | |
Percentage of total fair value | 11.00% | 5.00% | |
Real estate funds | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Unfunded commitments related to other investments | $ 147,000 | $ 115,000 | |
Real estate funds | Minimum | Other Redemption Restriction | |||
Other Investments [Line Items] | |||
Investment term | 7 years | ||
CLO-Equities | |||
Other Investments [Line Items] | |||
Fair value | $ 21,271 | $ 31,413 | |
Percentage of total fair value | 2.00% | 2.00% | |
Other privately held investments | |||
Other Investments [Line Items] | |||
Fair value | $ 44,518 | $ 46,430 | |
Percentage of total fair value | 6.00% | 5.00% | |
Overseas deposits | |||
Other Investments [Line Items] | |||
Fair value | $ 104,154 | $ 198,217 | |
Percentage of total fair value | 13.00% | 20.00% | |
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 |
INVESTMENTS - Equity method inv
INVESTMENTS - Equity method investments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Payments to acquire equity method investments | $ 0 | $ 1,000,000 | $ 107,913,000 |
Equity method investments | $ 108,103,000 | 108,597,000 | |
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, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 465,806 | $ 427,994 | $ 383,544 | ||||||||
Investment expenses | (27,299) | (27,189) | (30,209) | ||||||||
Net investment income | $ 113,128 | $ 114,421 | $ 109,960 | $ 100,999 | $ 100,908 | $ 95,169 | $ 106,063 | $ 98,664 | 438,507 | 400,805 | 353,335 |
Fixed maturities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 356,273 | 312,662 | 305,459 | ||||||||
Other investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 48,959 | 76,858 | 42,514 | ||||||||
Equity securities | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 10,077 | 14,919 | 16,306 | ||||||||
Mortgage loans | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 13,566 | 10,780 | 7,996 | ||||||||
Cash and cash equivalents | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | 27,566 | 10,057 | 9,209 | ||||||||
Short-term investments | |||||||||||
Net Investment Income [Line Items] | |||||||||||
Gross investment income | $ 9,365 | $ 2,718 | $ 2,060 |
INVESTMENTS - Net Investment Ga
INVESTMENTS - Net Investment Gains (Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Gross realized investment gains | |||||||||||
Fixed maturities and short-term investments | $ 46,067 | $ 72,046 | $ 86,267 | ||||||||
Equity securities | 20,435 | 78,343 | 19,104 | ||||||||
Gross realized investment gains | 66,502 | 150,389 | 105,371 | ||||||||
Gross realized investment losses | |||||||||||
Fixed maturities and short-term investments | (142,153) | (98,442) | (134,460) | ||||||||
Equity securities | (3,389) | (959) | (16,155) | ||||||||
Gross realized investment losses | (145,542) | (99,401) | (150,615) | ||||||||
Net OTTI charge recognized in net income | (9,733) | (14,493) | (26,210) | ||||||||
Change in fair value of investment derivatives | 5,445 | (8,269) | 10,929 | ||||||||
Change in fair value of equity securities | (66,890) | 0 | 0 | ||||||||
Total net investment gains (losses) | $ (72,667) | $ (17,628) | $ (45,093) | $ (14,830) | $ 43,038 | $ 14,632 | $ (4,392) | $ (25,050) | $ (150,218) | $ 28,226 | $ (60,525) |
INVESTMENTS - OTTI recognized i
INVESTMENTS - OTTI recognized in earnings (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 9,733 | $ 14,493 | $ 26,210 |
Non-U.S. government | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 4,697 | 8,187 | 3,557 |
Corporate debt | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 4,995 | 6,306 | 20,093 |
Non-Agency CMBS | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 41 | 0 | 0 |
Fixed maturities | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 9,733 | 14,493 | 23,650 |
Exchange-traded funds | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | 0 | 0 | 2,560 |
Equity securities | |||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | |||
Total OTTI recognized in net income | $ 0 | $ 0 | $ 2,560 |
INVESTMENTS - Credit loss table
INVESTMENTS - Credit loss table (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Credit Losses For Which a Portion of OTTI Was Recognized in AOCI [Roll Forward] | ||
Balance at beginning of period | $ 1,494 | $ 1,493 |
Credit impairments recognized on securities not previously impaired | 0 | 0 |
Additional credit impairments recognized on securities previously impaired | 8 | 13 |
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 | (992) | (12) |
Balance at end of period | $ 510 | $ 1,494 |
INVESTMENTS - Securities narrat
INVESTMENTS - Securities narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 11,435,347 | $ 12,622,006 |
Total Unrealized Losses | 215,000 | 91,000 |
Gross unrealized losses | (17,882) | (1,883) |
Fair value | 381,633 | 635,511 |
Non-U.S. government | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 493,016 | 806,299 |
Total Unrealized Losses | 16,120 | 9,523 |
Non-U.S. government | Eurozone | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 29,000 | 185,000 |
CMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 1,092,530 | 777,728 |
Total Unrealized Losses | $ 13,795 | $ 3,125 |
CMBS | Weighted Average | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Subordination percentage input for determining credit losses | 31.00% | 29.00% |
Non-Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 40,687 | $ 46,831 |
Total Unrealized Losses | 1,282 | 799 |
Non-Agency RMBS | Prime | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | 31,000 | 34,000 |
Non-Agency RMBS | Alt A | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value | $ 5,000 | $ 8,000 |
INVESTMENTS - Restricted assets
INVESTMENTS - Restricted assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Restricted Investments [Line Items] | ||
Collateral in Trust for inter-company agreements | $ 2,121,522 | $ 3,310,180 |
Collateral for secured letter of credit facility | 470,051 | 386,451 |
Funds at Lloyd's | 1,307,945 | 1,192,717 |
Collateral in Trust for third party agreements | 1,510,416 | 2,085,443 |
Collateral in Trust for third party agreements | 1,510,416 | 2,085,443 |
Securities on deposit with regulatory authorities | 64,360 | 53,925 |
Total restricted investments | 5,474,294 | 7,028,716 |
Syndicate 2,007 | ||
Restricted Investments [Line Items] | ||
Collateral in Trust for third party agreements | 403,000 | 1,120,000 |
Collateral in Trust for third party agreements | 403,000 | 1,120,000 |
Pledged cash for third party insurance and reinsurance agreements | 39,000 | 55,000 |
Syndicate 1,686 | ||
Restricted Investments [Line Items] | ||
Pledged cash for third party insurance and reinsurance agreements | $ 154,000 | $ 140,000 |
INVESTMENTS - Reverse repurchas
INVESTMENTS - Reverse repurchase agreements (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 189 | $ 37 |
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, 2018 | Dec. 31, 2017 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 11,435,347 | $ 12,622,006 |
Equity securities | 381,633 | 635,511 |
Other investments | 787,787 | 1,009,373 |
Short-term investments | 144,040 | 83,661 |
Derivative instruments | 8,237 | 5,125 |
Insurance-linked securities | 25,090 | |
Total Assets | 12,757,044 | 14,380,766 |
Net derivative assets | 14,522 | 14,386 |
Cash settled awards | 20,648 | 21,535 |
Total Liabilities | 35,170 | 35,921 |
U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,515,697 | 1,712,469 |
Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 493,016 | 806,299 |
Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,876,921 | 5,297,866 |
Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,643,308 | 2,395,152 |
CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,092,530 | 777,728 |
Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 40,687 | 46,831 |
ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,637,603 | 1,436,281 |
Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 135,585 | 149,380 |
Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 527 | 25,658 |
Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 236,839 | 427,633 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 144,267 | 182,220 |
Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 194,598 | 363,811 |
Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 274,478 | 250,681 |
Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 64,566 | 68,812 |
Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 84,202 | 50,009 |
Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 44,518 | 46,430 |
CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 21,271 | 31,413 |
Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 104,154 | 198,217 |
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 | 1,480,466 | 1,658,622 |
Equity securities | 237,366 | 453,291 |
Other investments | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 0 | |
Total Assets | 1,717,832 | 2,111,913 |
Net derivative assets | 0 | 0 |
Cash settled awards | 0 | 0 |
Total Liabilities | 0 | 0 |
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 | 1,480,466 | 1,658,622 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 | 527 | 25,658 |
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 | 236,839 | 427,633 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
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 |
Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 9,868,202 | 10,910,487 |
Equity securities | 144,267 | 182,220 |
Other investments | 104,154 | 198,217 |
Short-term investments | 144,040 | 83,661 |
Derivative instruments | 8,237 | 5,125 |
Insurance-linked securities | 0 | |
Total Assets | 10,268,900 | 11,379,710 |
Net derivative assets | 4,223 | 2,876 |
Cash settled awards | 20,648 | 21,535 |
Total Liabilities | 24,871 | 24,411 |
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 | 35,231 | 53,847 |
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 | 493,016 | 806,299 |
Significant other observable inputs (Level 2) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,827,909 | 5,244,969 |
Significant other observable inputs (Level 2) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,643,308 | 2,395,152 |
Significant other observable inputs (Level 2) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,073,396 | 777,728 |
Significant other observable inputs (Level 2) | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 40,687 | 46,831 |
Significant other observable inputs (Level 2) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,619,070 | 1,436,281 |
Significant other observable inputs (Level 2) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 135,585 | 149,380 |
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 |
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 |
Significant other observable inputs (Level 2) | Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 144,267 | 182,220 |
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 |
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 |
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 |
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 |
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 |
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 |
Significant other observable inputs (Level 2) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 104,154 | 198,217 |
Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 86,679 | 52,897 |
Equity securities | 0 | 0 |
Other investments | 65,789 | 77,843 |
Short-term investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Insurance-linked securities | 25,090 | |
Total Assets | 152,468 | 155,830 |
Net derivative assets | 10,299 | 11,510 |
Cash settled awards | 0 | 0 |
Total Liabilities | 10,299 | 11,510 |
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 |
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 |
Significant unobservable inputs (Level 3) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 49,012 | 52,897 |
Significant unobservable inputs (Level 3) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 19,134 | 0 |
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 |
Significant unobservable inputs (Level 3) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 18,533 | 0 |
Significant unobservable inputs (Level 3) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 0 | 0 |
Significant unobservable inputs (Level 3) | Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 0 | 0 |
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 |
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 |
Significant unobservable inputs (Level 3) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 0 | 0 |
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 |
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 |
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 |
Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 44,518 | 46,430 |
Significant unobservable inputs (Level 3) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 21,271 | 31,413 |
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 based on NAV practical expedient | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 617,844 | 733,313 |
Total Assets | 617,844 | 733,313 |
Fair value based on NAV practical expedient | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments | 194,598 | 363,811 |
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 | 274,478 | 250,681 |
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 | 64,566 | 68,812 |
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 | 84,202 | 50,009 |
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 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 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 - Level
FAIR VALUE MEASUREMENTS - Level 3 fair value inputs (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 787,787 | $ 1,009,373 |
Net derivative liability | (14,522) | (14,386) |
Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | 65,789 | 77,843 |
Net derivative liability | (10,299) | $ (11,510) |
Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 21,271 | |
Estimated maturity dates (years) | 7 years | |
Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated maturity dates (years) | 7 years | |
Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Fair value | $ 44,518 | |
Default rates | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.030 | |
Default rates | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.030 | |
Loss severity rate | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.35 | |
Loss severity rate | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.35 | |
Collateral spreads | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.030 | |
Collateral spreads | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.030 | |
Discount rate | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Derivative liability | 0.026 | |
Discount rate | Significant unobservable inputs (Level 3) | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Derivative liability | 0.026 | |
Discount rate | Significant unobservable inputs (Level 3) | Other privately held investments | Minimum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.030 | |
Discount rate | Significant unobservable inputs (Level 3) | Other privately held investments | Maximum | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.080 | |
Discount rate | Significant unobservable inputs (Level 3) | Other privately held investments | Weighted Average | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.071 |
FAIR VALUE MEASUREMENTS - Lev_2
FAIR VALUE MEASUREMENTS - Level 3 for financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | $ 155,830 | $ 226,797 |
Transfers into Level 3 | 10,010 | 2,324 |
Transfers out of Level 3 | (4,279) | (21,670) |
Included in net income | 5,033 | 4,359 |
Included in OCI | 5,752 | (39) |
Purchases | 47,577 | 19,766 |
Sales | (11,555) | (22,903) |
Settlements/ distributions | (55,900) | (52,804) |
Closing balance | 152,468 | 155,830 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 5,714 | 4,209 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 11,510 | 6,500 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | (1,211) | 9,320 |
Included in OCI | 0 | 0 |
Purchases | 0 | 12,472 |
Sales | 0 | 0 |
Settlements/ distributions | 0 | (16,782) |
Closing balance | 10,299 | 11,510 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | (1,211) | (962) |
Fixed maturities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 52,897 | 96,400 |
Transfers into Level 3 | 10,010 | 2,324 |
Transfers out of Level 3 | (4,279) | (21,670) |
Included in net income | (591) | (503) |
Included in OCI | 5,752 | (39) |
Purchases | 44,467 | 17,062 |
Sales | (7,446) | (22,903) |
Settlements/ distributions | (14,131) | (17,774) |
Closing balance | 86,679 | 52,897 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Corporate debt | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 52,897 | 75,875 |
Transfers into Level 3 | 2,935 | 2,324 |
Transfers out of Level 3 | (4,279) | (2,721) |
Included in net income | (591) | (503) |
Included in OCI | 6,343 | (1,524) |
Purchases | 10,267 | 17,062 |
Sales | (7,446) | (22,903) |
Settlements/ distributions | (11,114) | (14,713) |
Closing balance | 49,012 | 52,897 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
CMBS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 0 | 3,061 |
Transfers into Level 3 | 5,096 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 0 | 0 |
Included in OCI | (145) | 0 |
Purchases | 17,200 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (3,017) | (3,061) |
Closing balance | 19,134 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
ABS | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 0 | 17,464 |
Transfers into Level 3 | 1,979 | 0 |
Transfers out of Level 3 | 0 | (18,949) |
Included in net income | 0 | 0 |
Included in OCI | (446) | 1,485 |
Purchases | 17,000 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | 0 | 0 |
Closing balance | 18,533 | 0 |
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 | 77,843 | 102,842 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 5,714 | 4,142 |
Included in OCI | 0 | 0 |
Purchases | 3,110 | 2,704 |
Sales | (4,109) | 0 |
Settlements/ distributions | (16,769) | (31,845) |
Closing balance | 65,789 | 77,843 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 5,714 | 4,142 |
Other privately held investments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 46,430 | 42,142 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | (913) | 1,584 |
Included in OCI | 0 | 0 |
Purchases | 3,110 | 2,704 |
Sales | (4,109) | 0 |
Settlements/ distributions | 0 | 0 |
Closing balance | 44,518 | 46,430 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | (913) | 1,584 |
CLO-Equities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 31,413 | 60,700 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 6,627 | 2,558 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (16,769) | (31,845) |
Closing balance | 21,271 | 31,413 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 6,627 | 2,558 |
Other assets | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 25,090 | 27,555 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | (90) | 720 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (25,000) | (3,185) |
Closing balance | 0 | 25,090 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 67 |
Derivative instruments | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 0 | 2,532 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | 0 | 653 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | 0 | (3,185) |
Closing balance | 0 | 0 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | 0 | 0 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 11,510 | 6,500 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in earnings | (1,211) | 9,320 |
Included in OCI | 0 | 0 |
Purchases | 0 | 12,472 |
Sales | 0 | 0 |
Settlements/ distributions | 0 | (16,782) |
Closing balance | 10,299 | 11,510 |
Change in unrealized investment gain/(loss) relating to liabilities held at the reporting date | (1,211) | (962) |
Insurance-linked securities | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Opening balance | 25,090 | 25,023 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Included in net income | (90) | 67 |
Included in OCI | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Settlements/ distributions | (25,000) | 0 |
Closing balance | 0 | 25,090 |
Change in unrealized investment gain/(loss) relating to assets held at the reporting date | $ 0 | $ 67 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) $ in Millions | Dec. 31, 2018USD ($)hedge_fund | Dec. 31, 2017USD ($) |
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 | 61.00% | 44.00% |
Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,342 | $ 1,341 |
Other notes payable | 36 | |
Estimate of Fair Value | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Senior notes | $ 1,334 | 1,412 |
Other notes payable | $ 36 |
DERIVATIVE INSTRUMENTS - Balan
DERIVATIVE INSTRUMENTS - Balance sheet classification of derivatives recorded at fair value (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | $ 8,237 | $ 5,125 |
Liability derivative fair value | 14,522 | 14,386 |
Not Designated as Hedging Instruments | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | 8,237 | 5,125 |
Not Designated as Hedging Instruments | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Liability derivative fair value | 14,522 | 14,386 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 79,336 | 137,422 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | 262 | 10 |
Not Designated as Hedging Instruments | Investment Portfolio | Foreign exchange forward contracts | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Liability derivative fair value | 531 | 619 |
Not Designated as Hedging Instruments | Investment Portfolio | Interest rate swaps | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 150,000 | 191,000 |
Not Designated as Hedging Instruments | Investment Portfolio | Interest rate swaps | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | 0 | 448 |
Not Designated as Hedging Instruments | Investment Portfolio | Interest rate swaps | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Liability derivative fair value | 1,116 | 1,556 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 737,419 | 698,959 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | 7,975 | 4,667 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Foreign exchange forward contracts | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Liability derivative fair value | 2,576 | 701 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 85,000 | 85,000 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | Other assets | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Asset derivative fair value | 0 | 0 |
Not Designated as Hedging Instruments | Underwriting Portfolio | Derivatives - Other underwriting-related derivatives | Other liabilities | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Liability derivative fair value | $ 10,299 | $ 11,510 |
DERIVATIVE INSTRUMENTS - Offse
DERIVATIVE INSTRUMENTS - Offsetting assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Derivative assets | ||
Gross amounts | $ 11,967 | $ 8,178 |
Gross amounts offset | (3,730) | (3,053) |
Net Amounts | 8,237 | 5,125 |
Derivative liabilities | ||
Gross amounts | 18,252 | 17,439 |
Gross amounts offset | (3,730) | (3,053) |
Net Amounts | $ 14,522 | $ 14,386 |
DERIVATIVE INSTRUMENTS - Unrea
DERIVATIVE INSTRUMENTS - Unrealized and realized gains (losses) recognized in earnings for derivatives (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Unrealized and Realized Gains (Losses) Recognized in Earnings for Derivatives Not Designated As Hedges [Line Items] | |||
Unrealized and realized gains (losses) recognized in earnings for derivatives not designated as hedges | $ 4,320 | $ 8,961 | $ 5,278 |
Investment Portfolio | Foreign exchange forward contracts | Net 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 | 3,446 | (6,935) | 10,929 |
Investment Portfolio | Interest rate swaps | Net 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 | 1,999 | (1,334) | 0 |
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 | (3,509) | 25,383 | (8,179) |
Underwriting Portfolio | Weather-related contracts | Other insurance related income (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 | 0 | (9,629) | 4,910 |
Underwriting Portfolio | Commodity contracts | Other insurance related income (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 | 0 | 0 | (2,382) |
Derivatives - Other underwriting-related derivatives | Commodity contracts | Other insurance related income (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 | $ 2,384 | $ 1,476 | $ 0 |
RESERVE FOR LOSSES AND LOSS E_3
RESERVE FOR LOSSES AND LOSS EXPENSES - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Minimum | |
Claims Development [Line Items] | |
Development for an accident year or underwriting year, recognition period | 1 year |
Maximum | |
Claims Development [Line Items] | |
Development for an accident year or underwriting year, recognition period | 3 years |
RESERVE FOR LOSSES AND LOSS E_4
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve for losses and loss expenses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance Loss Reserves [Abstract] | ||||
Reserve for reported losses and loss expenses | $ 4,626,204 | $ 5,137,659 | ||
Reserve for losses incurred but not reported | 7,654,565 | 7,859,894 | ||
Reserve for losses and loss expenses | $ 12,280,769 | $ 12,997,553 | $ 9,697,827 | $ 9,646,285 |
RESERVE FOR LOSSES AND LOSS E_5
RESERVE FOR LOSSES AND LOSS EXPENSES - Reserve Roll-Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | |||
Gross reserve for losses and loss expenses, beginning of year | $ 12,997,553 | $ 9,697,827 | $ 9,646,285 |
Less reinsurance recoverable on unpaid losses, beginning of year | (3,159,514) | (2,276,109) | (2,031,309) |
Net reserve for unpaid losses and loss expenses, beginning of year | 9,838,039 | 7,421,718 | 7,614,976 |
Net incurred losses and loss expenses related to: | |||
Current year | 3,389,949 | 3,487,826 | 2,496,574 |
Prior years | (199,662) | (200,054) | (292,377) |
Net incurred losses and loss expenses | 3,190,287 | 3,287,772 | 2,204,197 |
Net paid losses and loss expenses related to: | |||
Current year | (724,199) | (703,796) | (428,153) |
Prior years | (2,368,615) | (1,880,882) | (1,763,696) |
Net paid losses and loss expenses | (3,092,814) | (2,584,678) | (2,191,849) |
Foreign exchange and other | (1,156,412) | 1,713,227 | (205,606) |
Net reserve for unpaid losses and loss expenses, end of year | 8,779,100 | 9,838,039 | 7,421,718 |
Reinsurance recoverable on unpaid losses, end of year | 3,501,669 | 3,159,514 | 2,276,109 |
Gross reserve for losses and loss expenses, end of year | $ 12,280,769 | $ 12,997,553 | $ 9,697,827 |
RESERVE FOR LOSSES AND LOSS E_6
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred losses narrative (Details) - USD ($) $ in Thousands | Feb. 13, 2017 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 16, 2018 | Oct. 02, 2017 | Apr. 01, 2017 | Mar. 20, 2017 | Mar. 19, 2017 | Dec. 31, 2015 |
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net losses and loss expenses, net of reinstatement premiums | $ 3,389,949 | $ 3,487,826 | $ 2,496,574 | ||||||||||||||||
Reinsurance recoverable on unpaid losses | $ 3,501,669 | $ 3,159,514 | $ 3,159,514 | 3,501,669 | 3,159,514 | 2,276,109 | $ 108,000 | $ 2,031,309 | |||||||||||
Reserve for losses and loss expenses | 12,280,769 | 12,997,553 | 12,997,553 | 12,280,769 | 12,997,553 | 9,697,827 | $ 9,646,285 | ||||||||||||
Foreign exchange and other | 1,156,412 | (1,713,227) | 205,606 | ||||||||||||||||
Net favorable (adverse) prior year reserve development | 199,662 | 200,054 | 292,377 | ||||||||||||||||
Net premiums earned | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | 4,791,495 | 4,148,760 | 3,705,625 | ||||||||
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% | ||||||||||||||||||
Reinsurance recoverable on unpaid and paid losses | 5,000 | 5,000 | 5,000 | ||||||||||||||||
Foreign exchange and other | 79,000 | 79,000 | 79,000 | ||||||||||||||||
Novae | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Interests acquired | 100.00% | ||||||||||||||||||
Reserve for losses and loss expenses | 2,126,000 | 2,126,000 | 2,126,000 | ||||||||||||||||
Reinsurance recoverable on unpaid and paid losses | $ 788,000 | 788,000 | 788,000 | ||||||||||||||||
Net premiums earned | $ 140,635 | ||||||||||||||||||
Catastrophe and Weather-related Events | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net losses and loss expenses, net of reinstatement premiums | 430,000 | 835,000 | 204,000 | ||||||||||||||||
Syndicate 2,007 | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Ceded reserves for losses and loss expenses | 819,000 | ||||||||||||||||||
Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 106,856 | 139,595 | 243,399 | ||||||||||||||||
Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 92,806 | 60,459 | 48,978 | ||||||||||||||||
Short Tail Lines Insurance and Reinsurance Business | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 86,000 | 60,000 | 148,000 | ||||||||||||||||
Professional lines | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 21,000 | 44,000 | 30,000 | ||||||||||||||||
Professional lines | Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 32,000 | 26,000 | 14,000 | ||||||||||||||||
Credit and surety | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 33,000 | 33,000 | 10,000 | ||||||||||||||||
Motor Reserve Class | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | 23,000 | 1,000 | 55,000 | ||||||||||||||||
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 | 23,000 | 43,000 | 44,000 | ||||||||||||||||
Liability Insurance Business | Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net favorable (adverse) prior year reserve development | (22,000) | (8,000) | (8,000) | ||||||||||||||||
Operating Segments | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 4,791,495 | 4,148,760 | 3,705,625 | ||||||||||||||||
Operating Segments | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 2,428,889 | 2,332,322 | 2,171,343 | ||||||||||||||||
Operating Segments | Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 2,362,606 | 1,816,438 | 1,534,282 | ||||||||||||||||
Operating Segments | Professional lines | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 220,687 | 226,622 | 289,868 | ||||||||||||||||
Operating Segments | Professional lines | Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 570,241 | 519,759 | 510,806 | ||||||||||||||||
Operating Segments | Accident and health | Reinsurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | 299,813 | 289,925 | 243,039 | ||||||||||||||||
Operating Segments | Accident and health | Insurance | |||||||||||||||||||
Additional Information Related to Net Incurred Losses [Line Items] | |||||||||||||||||||
Net premiums earned | $ 207,777 | $ 199,121 | $ 141,107 |
RESERVE FOR LOSSES AND LOSS E_7
RESERVE FOR LOSSES AND LOSS EXPENSES - Prior year development (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | $ 199,662 | $ 200,054 | $ 292,377 |
Insurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | 92,806 | 60,459 | 48,978 |
Reinsurance | |||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||
Net favorable prior year reserve development | $ 106,856 | $ 139,595 | $ 243,399 |
RESERVE FOR LOSSES AND LOSS E_8
RESERVE FOR LOSSES AND LOSS EXPENSES - Incurred claims and allocated claim adjustment expenses, net of reinsurance (Details) $ in Thousands | Dec. 31, 2018USD ($)claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) |
Insurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 3,583,317 | |||||||||
Insurance | Property and other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 77,338 | $ 78,395 | $ 78,150 | $ 78,490 | $ 78,269 | $ 80,461 | $ 82,460 | $ 89,768 | $ 99,079 | $ 117,309 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 83 | |||||||||
Cumulative number of reported claims | claim | 3,201 | |||||||||
Insurance | Property and other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 113,767 | 114,866 | 115,316 | 115,635 | 116,562 | 122,111 | 147,426 | 155,032 | 175,012 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 867 | |||||||||
Cumulative number of reported claims | claim | 4,422 | |||||||||
Insurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 279,996 | 281,866 | 281,405 | 282,755 | 285,745 | 306,114 | 338,220 | 359,132 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 979 | |||||||||
Cumulative number of reported claims | claim | 6,348 | |||||||||
Insurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 350,827 | 351,673 | 357,267 | 361,476 | 381,746 | 399,473 | 391,646 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 8,992 | |||||||||
Cumulative number of reported claims | claim | 29,931 | |||||||||
Insurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 276,940 | 266,727 | 267,022 | 271,157 | 297,713 | 308,359 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 6,687 | |||||||||
Cumulative number of reported claims | claim | 53,172 | |||||||||
Insurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 326,100 | 327,389 | 343,333 | 354,219 | 360,130 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,917 | |||||||||
Cumulative number of reported claims | claim | 62,444 | |||||||||
Insurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 253,729 | 257,927 | 268,897 | 277,332 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,642 | |||||||||
Cumulative number of reported claims | claim | 47,052 | |||||||||
Insurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 367,362 | 376,458 | 349,152 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,290 | |||||||||
Cumulative number of reported claims | claim | 92,867 | |||||||||
Insurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 825,176 | 882,968 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 42,188 | |||||||||
Cumulative number of reported claims | claim | 663,914 | |||||||||
Insurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 712,082 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 187,391 | |||||||||
Cumulative number of reported claims | claim | 730,832 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 920,554 | |||||||||
Insurance | Marine | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 50,735 | 52,283 | 52,400 | 53,514 | 54,906 | 57,106 | 64,477 | 69,862 | 74,181 | 80,615 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 359 | |||||||||
Cumulative number of reported claims | claim | 3,220 | |||||||||
Insurance | Marine | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 45,125 | 45,543 | 47,249 | 48,650 | 51,483 | 53,388 | 66,389 | 70,394 | 68,528 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 643 | |||||||||
Cumulative number of reported claims | claim | 3,196 | |||||||||
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 68,829 | 68,140 | 65,983 | 65,769 | 65,766 | 72,530 | 78,700 | 90,717 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,005 | |||||||||
Cumulative number of reported claims | claim | 3,830 | |||||||||
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 72,585 | 74,445 | 71,823 | 70,855 | 68,715 | 82,648 | 89,639 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,055 | |||||||||
Cumulative number of reported claims | claim | 4,134 | |||||||||
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 82,136 | 82,547 | 97,265 | 96,210 | 100,767 | 79,610 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,729 | |||||||||
Cumulative number of reported claims | claim | 2,351 | |||||||||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 45,980 | 44,392 | 48,481 | 44,463 | 59,558 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,454 | |||||||||
Cumulative number of reported claims | claim | 2,157 | |||||||||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 129,627 | 136,827 | 140,050 | 158,755 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 8,498 | |||||||||
Cumulative number of reported claims | claim | 2,219 | |||||||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 76,743 | 78,779 | 86,264 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,819 | |||||||||
Cumulative number of reported claims | claim | 2,795 | |||||||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 170,085 | 171,936 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 49,990 | |||||||||
Cumulative number of reported claims | claim | 3,863 | |||||||||
Insurance | Marine | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 178,709 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 113,414 | |||||||||
Cumulative number of reported claims | claim | 3,250 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 261,202 | |||||||||
Insurance | Aviation | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 13,821 | 14,330 | 14,604 | 15,437 | 16,618 | 16,743 | 18,090 | 18,752 | 14,560 | 17,468 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 41 | |||||||||
Cumulative number of reported claims | claim | 1,659 | |||||||||
Insurance | Aviation | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 8,900 | 8,548 | 8,744 | 8,699 | 8,769 | 9,749 | 11,422 | 11,699 | 12,922 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 78 | |||||||||
Cumulative number of reported claims | claim | 1,950 | |||||||||
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 7,203 | 7,242 | 7,275 | 8,422 | 9,552 | 12,779 | 15,390 | 17,723 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 205 | |||||||||
Cumulative number of reported claims | claim | 2,145 | |||||||||
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 7,695 | 7,804 | 7,758 | 8,708 | 10,791 | 10,668 | 12,789 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 200 | |||||||||
Cumulative number of reported claims | claim | 2,242 | |||||||||
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 15,502 | 15,618 | 15,243 | 15,199 | 16,327 | 15,651 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 292 | |||||||||
Cumulative number of reported claims | claim | 2,320 | |||||||||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 22,183 | 22,104 | 24,339 | 23,028 | 20,432 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 425 | |||||||||
Cumulative number of reported claims | claim | 2,717 | |||||||||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 30,135 | 30,363 | 28,479 | 29,761 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,480 | |||||||||
Cumulative number of reported claims | claim | 3,484 | |||||||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 34,513 | 34,328 | 29,154 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,845 | |||||||||
Cumulative number of reported claims | claim | 3,456 | |||||||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 63,295 | 56,565 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 7,676 | |||||||||
Cumulative number of reported claims | claim | 3,452 | |||||||||
Insurance | Aviation | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 57,955 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 12,452 | |||||||||
Cumulative number of reported claims | claim | 2,280 | |||||||||
Insurance | Credit and political risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 700,799 | |||||||||
Insurance | Credit and political risk | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 340,648 | 339,534 | 339,570 | 335,291 | 335,271 | 334,965 | 335,536 | 326,024 | 305,282 | 248,083 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 3,600 | |||||||||
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 | $ 99,416 | 90,880 | 72,101 | 65,011 | 64,977 | 65,596 | 63,259 | 63,179 | 62,415 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,316 | |||||||||
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 | $ 27,899 | 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 | $ 268 | |||||||||
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 | $ 197 | 44 | 10,320 | 12,447 | 12,435 | 15,672 | 32,602 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 155 | |||||||||
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 | $ 14,065 | 14,941 | 9,880 | 9,759 | 25,684 | 26,439 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 5,759 | |||||||||
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 | $ 69,586 | 68,320 | 67,109 | 70,712 | 38,825 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 1,136 | |||||||||
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 | $ 26,001 | 27,513 | 30,368 | 30,329 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 2,703 | |||||||||
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 | $ 42,184 | 44,639 | 45,907 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 17,704 | |||||||||
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 | $ 34,631 | 36,563 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 28,083 | |||||||||
Cumulative number of reported claims | claim | 3 | |||||||||
Insurance | Credit and political risk | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 46,172 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 33,079 | |||||||||
Cumulative number of reported claims | claim | 1 | |||||||||
Insurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 3,298,346 | |||||||||
Insurance | Professional lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 224,778 | 220,524 | 212,994 | 236,751 | 236,657 | 253,979 | 244,466 | 243,978 | 243,522 | 240,092 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 13,640 | |||||||||
Cumulative number of reported claims | claim | 5,889 | |||||||||
Insurance | Professional lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 186,340 | 167,038 | 179,517 | 157,921 | 181,917 | 204,744 | 233,407 | 235,610 | 230,353 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 18,897 | |||||||||
Cumulative number of reported claims | claim | 5,690 | |||||||||
Insurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 351,747 | 351,247 | 342,598 | 329,318 | 324,739 | 331,800 | 314,466 | 312,805 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 33,877 | |||||||||
Cumulative number of reported claims | claim | 7,215 | |||||||||
Insurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 351,498 | 362,606 | 360,596 | 373,306 | 374,315 | 372,782 | 327,590 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 50,067 | |||||||||
Cumulative number of reported claims | claim | 8,300 | |||||||||
Insurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 353,112 | 351,330 | 361,785 | 394,461 | 394,548 | 382,270 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 70,914 | |||||||||
Cumulative number of reported claims | claim | 9,409 | |||||||||
Insurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 369,129 | 389,610 | 418,164 | 407,688 | 408,103 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 111,975 | |||||||||
Cumulative number of reported claims | claim | 9,766 | |||||||||
Insurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 355,300 | 380,265 | 373,747 | 374,209 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 127,537 | |||||||||
Cumulative number of reported claims | claim | 10,379 | |||||||||
Insurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 355,601 | 349,223 | 346,289 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 152,080 | |||||||||
Cumulative number of reported claims | claim | 11,632 | |||||||||
Insurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 393,443 | 375,397 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 256,260 | |||||||||
Cumulative number of reported claims | claim | 12,903 | |||||||||
Insurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 357,398 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 304,926 | |||||||||
Cumulative number of reported claims | claim | 12,392 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 1,208,108 | |||||||||
Insurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 97,964 | 98,999 | 98,384 | 101,179 | 83,281 | 75,883 | 67,869 | 67,410 | 64,017 | 61,469 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 9,450 | |||||||||
Cumulative number of reported claims | claim | 4,093 | |||||||||
Insurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 103,906 | 104,258 | 105,119 | 98,061 | 99,570 | 98,112 | 98,635 | 94,220 | 79,407 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 11,742 | |||||||||
Cumulative number of reported claims | claim | 3,670 | |||||||||
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 82,625 | 82,127 | 83,730 | 85,242 | 87,059 | 83,118 | 75,329 | 72,586 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 17,357 | |||||||||
Cumulative number of reported claims | claim | 3,222 | |||||||||
Insurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 72,514 | 75,341 | 68,180 | 70,770 | 73,281 | 70,631 | 70,861 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 23,236 | |||||||||
Cumulative number of reported claims | claim | 2,837 | |||||||||
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 95,632 | 93,216 | 87,498 | 94,253 | 94,178 | 92,150 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 21,345 | |||||||||
Cumulative number of reported claims | claim | 3,520 | |||||||||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 131,539 | 130,021 | 128,524 | 122,643 | 106,148 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 31,126 | |||||||||
Cumulative number of reported claims | claim | 4,614 | |||||||||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 164,036 | 136,305 | 125,819 | 127,319 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 52,818 | |||||||||
Cumulative number of reported claims | claim | 5,975 | |||||||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 128,172 | 129,139 | 123,243 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 73,747 | |||||||||
Cumulative number of reported claims | claim | 6,628 | |||||||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 165,061 | 161,211 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 107,070 | |||||||||
Cumulative number of reported claims | claim | 5,842 | |||||||||
Insurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 166,659 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 141,099 | |||||||||
Cumulative number of reported claims | claim | 3,725 | |||||||||
Reinsurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | $ 6,321,728 | |||||||||
Reinsurance | Property and other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 198,189 | 197,779 | 200,422 | 198,498 | 204,560 | 223,245 | 232,639 | 246,047 | 284,210 | 340,527 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 1,722 | |||||||||
Reinsurance | Property and other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 568,179 | 569,043 | 571,120 | 579,065 | 585,247 | 582,855 | 569,357 | 600,219 | 612,614 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 5,532 | |||||||||
Reinsurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,040,130 | 1,038,726 | 1,040,470 | 1,066,384 | 1,083,492 | 1,124,792 | 1,116,708 | 1,109,682 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 10,579 | |||||||||
Reinsurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 457,703 | 456,334 | 461,255 | 477,145 | 507,750 | 523,310 | 555,241 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 8,446 | |||||||||
Reinsurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 502,642 | 503,203 | 509,179 | 529,463 | 560,227 | 578,645 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 5,140 | |||||||||
Reinsurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 519,967 | 521,797 | 534,229 | 560,478 | 540,406 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 43,358 | |||||||||
Reinsurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 453,628 | 459,017 | 463,996 | 477,608 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 14,117 | |||||||||
Reinsurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 620,702 | 633,597 | 614,940 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 30,481 | |||||||||
Reinsurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,080,319 | 1,076,458 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 123,562 | |||||||||
Reinsurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 880,269 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 492,589 | |||||||||
Reinsurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,903,167 | |||||||||
Reinsurance | Professional lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 179,945 | 180,862 | 189,991 | 193,803 | 208,693 | 208,338 | 218,469 | 215,827 | 211,191 | 211,420 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,495 | |||||||||
Reinsurance | Professional lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 165,864 | 179,604 | 189,263 | 196,770 | 214,161 | 214,439 | 211,409 | 210,238 | 210,016 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 10,034 | |||||||||
Reinsurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 177,163 | 200,168 | 207,946 | 208,828 | 211,459 | 202,815 | 201,735 | 201,457 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 22,132 | |||||||||
Reinsurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 213,850 | 212,485 | 222,499 | 223,813 | 221,808 | 216,415 | 209,889 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 33,873 | |||||||||
Reinsurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 205,586 | 213,142 | 213,765 | 215,544 | 214,624 | 209,538 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 67,043 | |||||||||
Reinsurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 233,427 | 219,109 | 219,286 | 219,332 | 219,378 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 48,605 | |||||||||
Reinsurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 225,003 | 214,310 | 212,150 | 212,030 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 84,299 | |||||||||
Reinsurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 199,879 | 196,246 | 195,061 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 84,621 | |||||||||
Reinsurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 155,892 | 155,211 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 109,070 | |||||||||
Reinsurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 146,558 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 142,282 | |||||||||
Reinsurance | Credit and surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,201,632 | |||||||||
Reinsurance | Credit and surety | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 92,519 | 93,688 | 95,321 | 95,726 | 98,958 | 104,236 | 105,062 | 105,827 | 122,111 | 143,398 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 1,304 | |||||||||
Reinsurance | Credit and surety | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 74,430 | 75,716 | 77,732 | 79,047 | 86,528 | 90,657 | 93,548 | 100,047 | 119,152 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 4,092 | |||||||||
Reinsurance | Credit and surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 100,146 | 100,718 | 102,529 | 111,019 | 112,964 | 105,955 | 107,811 | 121,471 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 5,770 | |||||||||
Reinsurance | Credit and surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 128,323 | 131,963 | 140,000 | 148,363 | 151,141 | 148,566 | 160,109 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 8,830 | |||||||||
Reinsurance | Credit and surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 125,112 | 136,402 | 140,589 | 144,472 | 153,616 | 165,413 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 8,083 | |||||||||
Reinsurance | Credit and surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 128,404 | 139,857 | 143,515 | 136,346 | 135,732 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 11,280 | |||||||||
Reinsurance | Credit and surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 157,612 | 161,789 | 166,951 | 160,837 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 26,891 | |||||||||
Reinsurance | Credit and surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 149,054 | 141,780 | 142,245 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 38,746 | |||||||||
Reinsurance | Credit and surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 134,063 | 135,750 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 38,299 | |||||||||
Reinsurance | Credit and surety | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 111,969 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 53,762 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 1,942,568 | |||||||||
Reinsurance | Motor | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 77,829 | 80,204 | 77,943 | 83,517 | 92,158 | 90,860 | 89,057 | 87,140 | 79,515 | 81,369 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 17,628 | |||||||||
Reinsurance | Motor | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 78,575 | 81,228 | 84,535 | 93,919 | 99,061 | 104,993 | 106,092 | 105,669 | 98,704 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 19,993 | |||||||||
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 140,191 | 145,482 | 155,948 | 164,559 | 168,436 | 162,586 | 158,750 | 156,069 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 24,417 | |||||||||
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131,690 | 134,768 | 144,164 | 149,100 | 156,460 | 167,788 | 178,052 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 22,562 | |||||||||
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 131,081 | 134,200 | 137,695 | 147,139 | 158,632 | 162,681 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 21,880 | |||||||||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 169,776 | 174,457 | 177,575 | 182,555 | 182,625 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 9,307 | |||||||||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 221,982 | 220,527 | 216,808 | 222,768 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 29,755 | |||||||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 263,168 | 261,369 | 245,899 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 43,569 | |||||||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 371,089 | 363,651 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 84,007 | |||||||||
Reinsurance | Motor | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 357,187 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 172,384 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 2,070,199 | |||||||||
Reinsurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 175,770 | 168,917 | 178,260 | 192,287 | 204,531 | 184,811 | 178,149 | 180,945 | 174,121 | $ 172,680 |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 13,563 | |||||||||
Reinsurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 159,156 | 165,990 | 181,938 | 190,959 | 201,329 | 183,056 | 182,515 | 170,784 | $ 171,634 | |
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 14,137 | |||||||||
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 191,962 | 193,830 | 194,715 | 197,871 | 191,761 | 174,124 | 172,399 | $ 172,431 | ||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 24,450 | |||||||||
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 164,357 | 171,121 | 173,645 | 172,491 | 167,887 | 163,625 | $ 167,290 | |||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 27,789 | |||||||||
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 177,273 | 184,147 | 184,467 | 182,428 | 176,465 | $ 172,784 | ||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 53,822 | |||||||||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 199,583 | 200,819 | 204,871 | 203,136 | $ 200,203 | |||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 75,626 | |||||||||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 215,997 | 216,201 | 215,273 | $ 214,942 | ||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 97,353 | |||||||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 251,087 | 246,024 | $ 240,411 | |||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 131,475 | |||||||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 270,564 | $ 277,034 | ||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | 176,854 | |||||||||
Reinsurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred claims and allocated claim adjustment expenses, net of reinsurance | 264,450 | |||||||||
Total of incurred-but-not-reported liabilities plus expected development on reported claims | $ 209,612 |
RESERVE FOR LOSSES AND LOSS E_9
RESERVE FOR LOSSES AND LOSS EXPENSES - Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | 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 |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 8,676,295 | |||||||||
Insurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 3,540,908 | |||||||||
Insurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 2,817,520 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 5,862 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 771,659 | |||||||||
Insurance | Property and other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 77,252 | $ 77,248 | $ 76,980 | $ 76,673 | $ 74,453 | $ 73,387 | $ 72,499 | $ 68,653 | $ 60,085 | $ 31,360 |
Insurance | Property and other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 110,171 | 109,837 | 109,794 | 110,008 | 109,933 | 105,719 | 94,912 | 86,886 | 48,575 | |
Insurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 270,946 | 270,666 | 269,994 | 270,309 | 271,451 | 249,162 | 192,892 | 84,811 | ||
Insurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 312,894 | 312,818 | 307,639 | 300,129 | 277,230 | 213,138 | 77,088 | |||
Insurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 261,266 | 258,435 | 247,393 | 236,405 | 197,898 | 75,214 | ||||
Insurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 315,797 | 311,730 | 304,609 | 258,098 | 131,991 | |||||
Insurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 239,989 | 225,593 | 201,166 | 98,366 | ||||||
Insurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 327,706 | 287,049 | 122,407 | |||||||
Insurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 625,027 | 251,358 | ||||||||
Insurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 276,472 | |||||||||
Insurance | Marine | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 588,505 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 8,619 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 340,668 | |||||||||
Insurance | Marine | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 50,244 | 48,920 | 48,587 | 48,321 | 45,775 | 45,159 | 43,147 | 39,674 | 30,297 | 17,394 |
Insurance | Marine | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 43,433 | 43,346 | 46,940 | 45,976 | 45,194 | 42,364 | 33,298 | 28,631 | 18,029 | |
Insurance | Marine | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 66,913 | 64,868 | 60,572 | 59,862 | 58,025 | 54,930 | 44,218 | 26,435 | ||
Insurance | Marine | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 54,721 | 52,724 | 50,331 | 49,523 | 44,800 | 38,545 | 10,711 | |||
Insurance | Marine | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 76,856 | 65,822 | 63,128 | 54,898 | 44,087 | 18,982 | ||||
Insurance | Marine | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 35,987 | 26,924 | 26,838 | 15,172 | 6,349 | |||||
Insurance | Marine | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 111,027 | 108,152 | 54,869 | 21,426 | ||||||
Insurance | Marine | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 57,745 | 31,981 | 12,486 | |||||||
Insurance | Marine | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 68,563 | 14,472 | ||||||||
Insurance | Marine | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 23,016 | |||||||||
Insurance | Aviation | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 178,160 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 8,362 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 91,404 | |||||||||
Insurance | Aviation | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 13,616 | 13,665 | 13,700 | 14,203 | 14,266 | 13,902 | 12,780 | 7,026 | 3,583 | 2,081 |
Insurance | Aviation | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 8,423 | 8,221 | 8,113 | 7,670 | 7,551 | 6,886 | 6,312 | 4,131 | 1,037 | |
Insurance | Aviation | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 6,188 | 6,042 | 5,811 | 5,562 | 5,028 | 4,512 | 2,822 | 638 | ||
Insurance | Aviation | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 7,263 | 7,146 | 6,822 | 5,941 | 4,147 | 2,858 | 953 | |||
Insurance | Aviation | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 14,200 | 13,594 | 11,444 | 9,746 | 7,326 | 4,399 | ||||
Insurance | Aviation | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 14,824 | 14,167 | 11,687 | 8,019 | 3,987 | |||||
Insurance | Aviation | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 23,797 | 21,507 | 16,155 | 8,084 | ||||||
Insurance | Aviation | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 27,120 | 20,113 | 10,407 | |||||||
Insurance | Aviation | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 41,671 | 22,512 | ||||||||
Insurance | Aviation | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 21,058 | |||||||||
Insurance | Credit and political risk | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 600,313 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | (1,475) | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 99,011 | |||||||||
Insurance | Credit and political risk | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 340,785 | 341,231 | 345,567 | 345,520 | 345,521 | 341,577 | 346,221 | 346,254 | 344,652 | 92,842 |
Insurance | Credit and political risk | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 102,514 | 102,196 | 102,154 | 101,948 | 101,786 | 106,767 | 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 | 27,631 | 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 | 39 | 38 | 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 | 13,826 | 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 | 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 | 23,298 | 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 | 24,479 | 24,445 | 0 | |||||||
Insurance | Credit and political risk | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 5,589 | 1,504 | ||||||||
Insurance | Credit and political risk | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,294 | |||||||||
Insurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,756,498 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 45,848 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,587,696 | |||||||||
Insurance | Professional lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 184,577 | 177,492 | 165,088 | 126,542 | 106,985 | 96,631 | 68,690 | 44,065 | 20,619 | 1,657 |
Insurance | Professional lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 136,252 | 114,710 | 109,668 | 99,082 | 88,585 | 72,554 | 53,458 | 27,815 | 7,850 | |
Insurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 294,043 | 282,907 | 237,804 | 165,206 | 107,980 | 73,940 | 32,812 | 7,399 | ||
Insurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 272,298 | 252,937 | 229,932 | 183,295 | 99,486 | 41,021 | 7,801 | |||
Insurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 241,074 | 211,931 | 174,759 | 128,858 | 72,784 | 17,633 | ||||
Insurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 222,692 | 191,437 | 129,160 | 70,266 | 23,450 | |||||
Insurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 168,627 | 137,145 | 67,313 | 19,976 | ||||||
Insurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 146,342 | 70,947 | 15,846 | |||||||
Insurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 71,495 | 20,812 | ||||||||
Insurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 19,098 | |||||||||
Insurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 601,478 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 43,840 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 650,470 | |||||||||
Insurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 86,231 | 84,975 | 83,991 | 44,105 | 41,322 | 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 | 87,981 | 86,433 | 71,788 | 66,114 | 61,029 | 53,581 | 30,788 | 15,966 | 1,030 | |
Insurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 62,152 | 60,263 | 54,996 | 46,074 | 38,376 | 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 | 46,545 | 42,745 | 37,139 | 30,145 | 15,411 | 5,514 | 1,630 | |||
Insurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 66,976 | 60,017 | 42,051 | 33,320 | 23,281 | 2,360 | ||||
Insurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 84,397 | 71,617 | 49,840 | 18,645 | 1,415 | |||||
Insurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 92,557 | 39,557 | 22,308 | 5,438 | ||||||
Insurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 36,406 | 23,286 | 6,318 | |||||||
Insurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 29,529 | 5,404 | ||||||||
Insurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 8,704 | |||||||||
Reinsurance | ||||||||||
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 5,135,387 | |||||||||
Reinsurance | Property and other | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 4,939,078 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 11,126 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,393,776 | |||||||||
Reinsurance | Property and other | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 190,174 | 191,900 | 192,728 | 191,046 | 188,240 | 188,919 | 178,388 | 160,284 | 129,397 | 56,420 |
Reinsurance | Property and other | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 542,909 | 540,616 | 534,893 | 510,061 | 481,009 | 435,155 | 403,566 | 310,268 | 116,143 | |
Reinsurance | Property and other | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 1,013,191 | 1,010,611 | 995,795 | 922,456 | 893,041 | 793,972 | 587,390 | 251,538 | ||
Reinsurance | Property and other | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 415,831 | 413,789 | 404,019 | 389,461 | 367,055 | 294,436 | 122,688 | |||
Reinsurance | Property and other | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 482,114 | 480,712 | 470,990 | 440,804 | 324,443 | 107,085 | ||||
Reinsurance | Property and other | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 458,032 | 451,890 | 434,354 | 352,361 | 101,937 | |||||
Reinsurance | Property and other | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 400,615 | 368,360 | 265,569 | 71,244 | ||||||
Reinsurance | Property and other | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 519,223 | 375,374 | 126,404 | |||||||
Reinsurance | Property and other | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 722,835 | 252,008 | ||||||||
Reinsurance | Property and other | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 194,154 | |||||||||
Reinsurance | Credit and surety | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 889,415 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 13,274 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 325,491 | |||||||||
Reinsurance | Credit and surety | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 87,238 | 87,594 | 87,089 | 87,180 | 87,047 | 84,401 | 80,574 | 78,378 | 76,440 | 32,479 |
Reinsurance | Credit and surety | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 66,023 | 65,724 | 64,710 | 63,279 | 62,144 | 60,452 | 59,776 | 48,715 | 28,218 | |
Reinsurance | Credit and surety | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 89,004 | 87,571 | 85,242 | 83,036 | 78,477 | 70,850 | 54,012 | 22,449 | ||
Reinsurance | Credit and surety | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 112,118 | 110,844 | 109,073 | 105,551 | 99,705 | 85,701 | 49,631 | |||
Reinsurance | Credit and surety | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 108,062 | 106,202 | 98,517 | 91,902 | 77,059 | 32,447 | ||||
Reinsurance | Credit and surety | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 103,272 | 95,675 | 86,539 | 61,440 | 35,570 | |||||
Reinsurance | Credit and surety | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 117,594 | 100,464 | 82,174 | 32,935 | ||||||
Reinsurance | Credit and surety | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 92,788 | 73,603 | 42,069 | |||||||
Reinsurance | Credit and surety | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 74,341 | 37,311 | ||||||||
Reinsurance | Credit and surety | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 38,975 | |||||||||
Reinsurance | Professional lines | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 911,479 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 47,397 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,039,085 | |||||||||
Reinsurance | Professional lines | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 150,811 | 143,732 | 138,247 | 128,071 | 108,373 | 83,703 | 63,066 | 32,306 | 8,588 | 914 |
Reinsurance | Professional lines | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 137,917 | 130,487 | 123,889 | 107,270 | 76,763 | 52,129 | 31,245 | 12,029 | 1,758 | |
Reinsurance | Professional lines | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 129,920 | 119,643 | 102,938 | 84,776 | 57,182 | 30,273 | 11,825 | 1,510 | ||
Reinsurance | Professional lines | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 131,770 | 107,173 | 85,921 | 53,587 | 29,616 | 10,400 | 779 | |||
Reinsurance | Professional lines | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 104,883 | 81,641 | 64,966 | 30,495 | 12,070 | 1,062 | ||||
Reinsurance | Professional lines | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 109,129 | 74,542 | 48,814 | 13,066 | 2,019 | |||||
Reinsurance | Professional lines | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 79,270 | 41,524 | 13,505 | 3,134 | ||||||
Reinsurance | Professional lines | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 52,588 | 20,516 | 1,772 | |||||||
Reinsurance | Professional lines | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 14,918 | 2,814 | ||||||||
Reinsurance | Professional lines | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 273 | |||||||||
Reinsurance | Motor | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 916,565 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 146,464 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,172,467 | |||||||||
Reinsurance | Motor | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 31,650 | 29,144 | 25,910 | 21,368 | 19,066 | 12,933 | 9,523 | 8,012 | 6,830 | 2,709 |
Reinsurance | Motor | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 33,083 | 32,015 | 30,977 | 27,766 | 23,554 | 20,387 | 17,066 | 11,951 | 7,075 | |
Reinsurance | Motor | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 89,619 | 88,630 | 84,067 | 78,202 | 71,664 | 61,309 | 46,979 | 23,788 | ||
Reinsurance | Motor | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 89,492 | 87,244 | 83,232 | 76,875 | 67,254 | 52,736 | 29,162 | |||
Reinsurance | Motor | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 86,832 | 81,388 | 75,865 | 66,119 | 52,639 | 33,807 | ||||
Reinsurance | Motor | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 110,562 | 100,607 | 92,721 | 73,572 | 43,325 | |||||
Reinsurance | Motor | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 129,661 | 112,584 | 92,778 | 57,809 | ||||||
Reinsurance | Motor | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 127,970 | 104,342 | 60,829 | |||||||
Reinsurance | Motor | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 133,842 | 72,226 | ||||||||
Reinsurance | Motor | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 83,854 | |||||||||
Reinsurance | Liability | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 919,946 | |||||||||
All outstanding liabilities before 2009, net of reinsurance | 54,315 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | 1,204,568 | |||||||||
Reinsurance | Liability | Accident Year 2009 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 136,539 | 132,996 | 127,009 | 122,704 | 103,662 | 73,229 | 56,623 | 44,473 | 17,102 | $ 1,704 |
Reinsurance | Liability | Accident Year 2010 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 128,399 | 119,693 | 108,770 | 97,457 | 83,826 | 62,291 | 46,201 | 17,654 | $ 2,481 | |
Reinsurance | Liability | Accident Year 2011 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 135,625 | 123,387 | 112,328 | 92,466 | 70,102 | 39,981 | 21,273 | $ 5,189 | ||
Reinsurance | Liability | Accident Year 2012 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 115,571 | 101,115 | 78,190 | 58,735 | 28,388 | 12,798 | $ 3,541 | |||
Reinsurance | Liability | Accident Year 2013 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 102,588 | 88,264 | 69,052 | 52,327 | 22,236 | $ 5,969 | ||||
Reinsurance | Liability | Accident Year 2014 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 89,436 | 70,143 | 48,415 | 28,663 | $ 7,083 | |||||
Reinsurance | Liability | Accident Year 2015 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 80,865 | 54,524 | 27,457 | $ 7,271 | ||||||
Reinsurance | Liability | Accident Year 2016 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 69,526 | 37,688 | $ 11,861 | |||||||
Reinsurance | Liability | Accident Year 2017 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | 42,092 | $ 12,424 | ||||||||
Reinsurance | Liability | Accident Year 2018 | ||||||||||
Claims Development [Line Items] | ||||||||||
Cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | $ 19,305 |
RESERVE FOR LOSSES AND LOSS _10
RESERVE FOR LOSSES AND LOSS EXPENSES - Average annual percentage payout of incurred claims by age, net of reinsurance (Details) | Dec. 31, 2018 |
Insurance | Property and other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 34.50% |
Year 2 | 40.20% |
Year 3 | 13.20% |
Year 4 | 5.80% |
Year 5 | 2.00% |
Year 6 | 0.80% |
Year 7 | 0.70% |
Year 8 | 0.20% |
Year 9 | 0.30% |
Year 10 | 0.00% |
Insurance | Marine | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 21.90% |
Year 2 | 27.30% |
Year 3 | 20.80% |
Year 4 | 7.20% |
Year 5 | 6.20% |
Year 6 | 4.10% |
Year 7 | 4.00% |
Year 8 | (1.50%) |
Year 9 | 0.50% |
Year 10 | 2.60% |
Insurance | Aviation | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 22.30% |
Year 2 | 24.80% |
Year 3 | 20.00% |
Year 4 | 15.50% |
Year 5 | 8.60% |
Year 6 | 3.10% |
Year 7 | 2.30% |
Year 8 | (0.10%) |
Year 9 | 1.00% |
Year 10 | (0.40%) |
Insurance | Credit and political risk | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 21.70% |
Year 2 | 38.90% |
Year 3 | 1.60% |
Year 4 | 3.10% |
Year 5 | 9.90% |
Year 6 | 3.30% |
Year 7 | 0.40% |
Year 8 | 0.00% |
Year 9 | (0.50%) |
Year 10 | (0.10%) |
Insurance | Professional lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 4.10% |
Year 2 | 11.80% |
Year 3 | 15.70% |
Year 4 | 13.40% |
Year 5 | 11.60% |
Year 6 | 9.10% |
Year 7 | 8.20% |
Year 8 | 7.70% |
Year 9 | 8.60% |
Year 10 | 3.20% |
Insurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 2.80% |
Year 2 | 11.80% |
Year 3 | 12.90% |
Year 4 | 19.40% |
Year 5 | 10.00% |
Year 6 | 8.10% |
Year 7 | 5.00% |
Year 8 | 19.00% |
Year 9 | 1.30% |
Year 10 | 1.30% |
Reinsurance | Property and other | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 22.20% |
Year 2 | 39.90% |
Year 3 | 19.10% |
Year 4 | 6.50% |
Year 5 | 3.80% |
Year 6 | 2.90% |
Year 7 | 1.90% |
Year 8 | 0.70% |
Year 9 | 0.00% |
Year 10 | (0.90%) |
Reinsurance | Credit and surety | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 29.90% |
Year 2 | 30.00% |
Year 3 | 12.60% |
Year 4 | 5.50% |
Year 5 | 4.30% |
Year 6 | 1.90% |
Year 7 | 1.30% |
Year 8 | 0.90% |
Year 9 | 0.50% |
Year 10 | (0.40%) |
Reinsurance | Professional lines | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 0.90% |
Year 2 | 5.90% |
Year 3 | 12.10% |
Year 4 | 14.40% |
Year 5 | 13.30% |
Year 6 | 12.70% |
Year 7 | 10.50% |
Year 8 | 5.20% |
Year 9 | 3.80% |
Year 10 | 3.90% |
Reinsurance | Motor | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 19.50% |
Year 2 | 14.10% |
Year 3 | 8.60% |
Year 4 | 5.80% |
Year 5 | 4.70% |
Year 6 | 4.90% |
Year 7 | 3.00% |
Year 8 | 2.60% |
Year 9 | 2.80% |
Year 10 | 3.20% |
Reinsurance | Liability | |
Short-duration Insurance Contracts, Historical Claims Duration [Line Items] | |
Year 1 | 3.40% |
Year 2 | 9.20% |
Year 3 | 13.10% |
Year 4 | 12.00% |
Year 5 | 11.20% |
Year 6 | 11.60% |
Year 7 | 8.10% |
Year 8 | 5.20% |
Year 9 | 4.50% |
Year 10 | 2.00% |
RESERVE FOR LOSSES AND LOSS _11
RESERVE FOR LOSSES AND LOSS EXPENSES - Reconciliation of development tables to consolidated balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Claims Development [Line Items] | ||||
Net outstanding liabilities | $ 8,676,295 | |||
Reinsurance recoverable on unpaid claims | 3,501,669 | |||
Gross outstanding liabilities | 12,177,964 | |||
Unallocated claims adjustment expenses | 145,768 | |||
Foreign exchange and other | 53,695 | |||
(Ceded)/assumed reserves related to retroactive transactions | (96,658) | |||
Reserve for losses and loss expenses | 12,280,769 | $ 12,997,553 | $ 9,697,827 | $ 9,646,285 |
Insurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 3,540,908 | |||
Reinsurance recoverable on unpaid claims | 2,692,252 | |||
Gross outstanding liabilities | 6,233,160 | |||
Insurance | Property and other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 771,659 | |||
Reinsurance recoverable on unpaid claims | 482,207 | |||
Gross outstanding liabilities | 1,253,866 | |||
Insurance | Marine | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 340,668 | |||
Reinsurance recoverable on unpaid claims | 187,164 | |||
Gross outstanding liabilities | 527,832 | |||
Insurance | Aviation | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 91,404 | |||
Reinsurance recoverable on unpaid claims | 14,310 | |||
Gross outstanding liabilities | 105,714 | |||
Insurance | Credit and political risk | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 99,011 | |||
Reinsurance recoverable on unpaid claims | 24,536 | |||
Gross outstanding liabilities | 123,547 | |||
Insurance | Professional lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,587,696 | |||
Reinsurance recoverable on unpaid claims | 1,005,316 | |||
Gross outstanding liabilities | 2,593,012 | |||
Insurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 650,470 | |||
Reinsurance recoverable on unpaid claims | 978,719 | |||
Gross outstanding liabilities | 1,629,189 | |||
Reinsurance | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 5,135,387 | |||
Reinsurance recoverable on unpaid claims | 809,417 | |||
Gross outstanding liabilities | 5,944,804 | |||
Reinsurance | Property and other | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,393,776 | |||
Reinsurance recoverable on unpaid claims | 435,671 | |||
Gross outstanding liabilities | 1,829,447 | |||
Reinsurance | Credit and surety | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 325,491 | |||
Reinsurance recoverable on unpaid claims | 36,180 | |||
Gross outstanding liabilities | 361,671 | |||
Reinsurance | Professional lines | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,039,085 | |||
Reinsurance recoverable on unpaid claims | 81,608 | |||
Gross outstanding liabilities | 1,120,693 | |||
Reinsurance | Motor | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,172,467 | |||
Reinsurance recoverable on unpaid claims | 128,575 | |||
Gross outstanding liabilities | 1,301,042 | |||
Reinsurance | Liability | ||||
Claims Development [Line Items] | ||||
Net outstanding liabilities | 1,204,568 | |||
Reinsurance recoverable on unpaid claims | 127,383 | |||
Gross outstanding liabilities | $ 1,331,951 |
REINSURANCE (Details)
REINSURANCE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Premiums written | |||||||||||
Gross | $ 6,910,065 | $ 5,556,273 | $ 4,970,208 | ||||||||
Ceded | (2,251,103) | (1,529,130) | (1,217,234) | ||||||||
Net | 4,658,962 | 4,027,143 | 3,752,974 | ||||||||
Premiums earned | |||||||||||
Gross | 6,882,217 | 5,616,234 | 4,762,394 | ||||||||
Ceded | (2,090,722) | (1,467,474) | (1,056,769) | ||||||||
Net | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | 4,791,495 | 4,148,760 | 3,705,625 |
Reinsurance receivables: | |||||||||||
Ceded losses and loss expenses | (1,565,000) | (1,010,000) | (556,000) | ||||||||
Provision for unrecoverable reinsurance | $ 21,000 | $ 17,000 | $ 21,000 | $ 17,000 | $ 20,000 |
DEBT AND FINANCING ARRANGEMEN_3
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Senior notes [Line Items] | ||||||||
Net proceeds from issuance of debt | $ 0 | $ 346,362,000 | $ 0 | |||||
Senior Notes | ||||||||
Senior notes [Line Items] | ||||||||
Interest Expense | 64,000,000 | 51,000,000 | $ 50,000,000 | |||||
Senior Notes | 2010 AXIS Specialty Finance LLC Senior Notes | ||||||||
Senior notes [Line Items] | ||||||||
Face amount | $ 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 | |||||||
Subordinated Debt | ||||||||
Senior notes [Line Items] | ||||||||
Net proceeds from issuance of debt | $ 35,000,000 | |||||||
Interest Expense | $ 2,000,000 | $ 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 ARRANGEMEN_4
DEBT AND FINANCING ARRANGEMENTS - Debt maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Scheduled debt maturity | ||
2,019 | $ 250,000 | |
2,020 | 500,000 | |
2,021 | 0 | |
2,022 | 0 | |
2,023 | 0 | |
After 2,023 | 600,000 | |
Unamortized discount and debt issuance expenses | (8,039) | |
Total senior notes and notes payable | $ 1,341,961 | $ 1,376,529 |
DEBT AND FINANCING ARRANGEMEN_5
DEBT AND FINANCING ARRANGEMENTS - Credit facilities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2018 | Mar. 28, 2018 | 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 | $ 750,000,000 | $ 500,000,000 | $ 750,000,000 | ||||||
LOC Facility term | 4 years | ||||||||
Letters of credit outstanding | $ 395,000,000 | ||||||||
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 | ||||||||
$500 million secured LOC | Letter of Credit Facility | Citibank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 500,000,000 | $ 500,000,000 | |||||||
$250 million secured LOC | Letter of Credit Facility | Citibank | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 250,000,000 | ||||||||
Novae Syndicated Bank Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest Expense | $ 1,000,000 | ||||||||
Novae Syndicated Bank Facility | Letter Of Credit And Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Maximum capacity | $ 229,000,000 | ||||||||
Term Loan | Novae Syndicated Bank Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Face amount | $ 67,000,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES - Cash and investments (Details) | Dec. 31, 2018 |
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 CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Reinsurance and premiums (Details) | 12 Months Ended | ||
Dec. 31, 2018USD ($)broker | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Concentration Risk [Line Items] | |||
Premiums receivable allowance for doubtful accounts | $ 4,000,000 | $ 6,000,000 | |
Premiums receivable, bad debt expense charges | $ 0 | $ 0 | $ 1,000,000 |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 1 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 13.00% | 12.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 2 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 10.00% | 11.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Reinsurer 3 | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 10.00% | 7.00% | |
Reinsurance Recoverable On Unpaid And Paid Losses | Reinsurer Concentration | Top Ten Reinsurers | AM Best, A- Rating | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 89.50% | 88.80% | |
Gross Premiums Written | Customer Concentration | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 43.00% | 49.00% | 52.00% |
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 | 17.00% | 20.00% | 21.00% |
Gross Premiums Written | Customer Concentration | Aon plc | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 17.00% | 17.00% | 19.00% |
Gross Premiums Written | Customer Concentration | Willis Towers Watson PLC | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage of total | 9.00% | 12.00% | 12.00% |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES - Lease commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Rent expense related to operating leases | $ 33,000 | $ 29,000 | $ 25,000 |
Office Space | |||
Future minimum lease payments under operating leases [Line Items] | |||
2,019 | 28,240 | ||
2,020 | 25,331 | ||
2,021 | 27,025 | ||
2,022 | 28,012 | ||
2,023 | 23,801 | ||
Later years | 118,497 | ||
Total future minimum lease payments | $ 250,906 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES - Reinsurance purchase commitment and investments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Unfunded commitments related to other investments | $ 507,000 | $ 414,000 |
Purchase commitment | 39,000 | |
Funds at Lloyd's | 1,307,945 | 1,192,717 |
Collateral in Trust for third party agreements | 1,510,416 | 2,085,443 |
CMBS | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Purchase commitment | 4,000 | 16,000 |
Lloyd's | ||
Unrecorded Unconditional Purchase Obligation [Line Items] | ||
Collateral in Trust for third party agreements | $ 1,300,000 | $ 1,200,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings (loss) per common share | |||||||||||
Net income (loss) | $ 43,021 | $ (368,969) | $ 513,368 | ||||||||
Less: Preferred share dividends | 42,625 | 46,810 | 46,597 | ||||||||
Less: Loss on repurchase of preferred shares | 0 | 0 | 1,309 | ||||||||
Net income (loss) available (attributable) to common shareholders | $ (198,448) | $ 43,439 | $ 92,858 | $ 62,546 | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 396 | $ (415,779) | $ 465,462 |
Weighted average common shares outstanding (in shares) | 83,501 | 84,108 | 90,772 | ||||||||
Earnings (loss) per common share (in dollars per share) | $ (2.37) | $ 0.52 | $ 1.11 | $ 0.75 | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 0 | $ (4.94) | $ 5.13 |
Earnings (loss) per diluted common share | |||||||||||
Net income (loss) available (attributable) to common shareholders | $ (198,448) | $ 43,439 | $ 92,858 | $ 62,546 | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 396 | $ (415,779) | $ 465,462 |
Weighted average common shares outstanding (in shares) | 83,501 | 84,108 | 90,772 | ||||||||
Share-based compensation plans (in shares) | 506 | 0 | 775 | ||||||||
Weighted average diluted common shares outstanding (in shares) | 84,007 | 84,108 | 91,547 | ||||||||
Diluted earnings (loss) per common share (in dollars per share) | $ (2.37) | $ 0.52 | $ 1.11 | $ 0.75 | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 0 | $ (4.94) | $ 5.08 |
Weighted average anti-dilutive shares excluded from the dilutive computation (in shares) | 245 | 702 | 170 |
SHAREHOLDERS' EQUITY - Common
SHAREHOLDERS' EQUITY - Common shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
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) | (93,419,000) | ||
Total treasury shares at end of year (in shares) | (92,994,000) | (93,419,000) | |
Total shares outstanding (in shares) | 83,586,000 | 83,161,000 | |
Cash dividends declared per common share (in usd per share) | $ 1.57 | $ 1.53 | $ 1.43 |
Common stocks | |||
Common Shares Issued and Outstanding [Roll Forward] | |||
Shares issued, balance at beginning of year (in shares) | 176,580,000 | 176,580,000 | 176,240,000 |
Shares issued (in shares) | 0 | 0 | 340,000 |
Total shares issued at end of year (in shares) | 176,580,000 | 176,580,000 | 176,580,000 |
Treasury Shares Issued and Outstanding [Roll Forward] | |||
Treasury shares, balance at beginning of year (in shares) | (93,419,000) | (90,139,000) | (80,174,000) |
Shares repurchased (in shares) | (200,000) | (4,288,000) | (10,508,000) |
Shares reissued from treasury (in shares) | 625,000 | 1,008,000 | 543,000 |
Total treasury shares at end of year (in shares) | (92,994,000) | (93,419,000) | (90,139,000) |
Total shares outstanding (in shares) | 83,586,000 | 83,161,000 | 86,441,000 |
SHAREHOLDERS' EQUITY - Share r
SHAREHOLDERS' EQUITY - Share repurchase activities (Details) - Common stocks - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Treasury Shares [Line Items] | |||
Total shares (in shares) | 200 | 4,288 | 10,508 |
Total cost | $ 10,080 | $ 285,858 | $ 571,805 |
Average price per share (in usd per share) | $ 50.40 | $ 66.67 | $ 54.42 |
In the open market | |||
Treasury Shares [Line Items] | |||
Total shares (in shares) | 0 | 3,932 | 10,241 |
Total cost | $ 0 | $ 261,180 | $ 557,476 |
Average price per share (in usd per share) | $ 0 | $ 66.43 | $ 54.44 |
From employees | |||
Treasury Shares [Line Items] | |||
Total shares (in shares) | 200 | 356 | 267 |
Total cost | $ 10,080 | $ 24,678 | $ 14,329 |
Average price per share (in usd per share) | $ 50.40 | $ 69.36 | $ 53.74 |
SHAREHOLDERS' EQUITY - Acceler
SHAREHOLDERS' EQUITY - Accelerated share repurchase program (Details) - USD ($) $ / shares in Units, $ in Thousands | Jan. 15, 2016 | Aug. 31, 2015 | Jan. 15, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Treasury Stock | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 10,080 | $ 285,858 | $ 571,805 | ||||
Additional paid-in capital | |||||||
Class of Stock [Line Items] | |||||||
Total cost | $ 0 | $ 0 | $ (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 | 5,507,758 | 1,358,380 | |||
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 | Nov. 30, 2016 | May 31, 2013 | Apr. 30, 2012 | Mar. 31, 2012 | Nov. 30, 2005 | Feb. 28, 2019 | Feb. 28, 2018 | Feb. 24, 2017 | Nov. 30, 2016 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Apr. 17, 2017 |
Class of Stock [Line Items] | ||||||||||||||
Aggregate cash payment to acquire preferred shares | $ 0 | $ 351,074 | $ 51,769 | |||||||||||
Loss on repurchase of preferred shares | 0 | 0 | $ 1,309 | |||||||||||
Preferred shares, aggregate liquidation value outstanding | $ 775,000 | $ 775,000 | ||||||||||||
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, 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 | ||||||||||||
Preferred shares, dividends paid per share (in usd per share) | 0.4297 | 1.7188 | ||||||||||||
Preferred shares, number of shares outstanding (in shares) | 14,042,955 | |||||||||||||
Preferred shares, aggregate liquidation value outstanding | $ 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) | $ 0.34375 | $ 1.0313 | 1.0313 | 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 | |||||||||||||
Preferred shares, liquidation preference per share (in usd per share) | 2,500 | |||||||||||||
Preferred shares, redemption price per share (in usd per share) | 2,500 | |||||||||||||
Preferred shares, dividend declared per share (in usd per share) | 137.50 | 137.50 | $ 34.375 | |||||||||||
Preferred shares, dividends paid per share (in usd per share) | $ 34.3750 | $ 34.375 | $ 103.13 | $ 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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | |||
Total pension expenses | $ 27 | $ 24 | $ 23 |
SHARE-BASED COMPENSATION - Long
SHARE-BASED COMPENSATION - Long term equity compensation plan narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)installmentshares | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | May 31, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash settled awards | $ 20,648 | $ 21,535 | ||
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 | 51,000 | 125,000 | $ 67,000 | |
Unrecognized compensation costs | $ 87,000 | $ 94,000 | ||
Weighted average period for recognition of share based compensation | 2 years 4 months 28 days | 2 years 4 months 45 days | ||
Share based compensation expense incurred | $ 54,000 | $ 68,000 | 74,000 | |
Tax benefit related to share-based compensation costs incurred | 8,000 | 15,000 | $ 16,000 | |
Restricted Stock And Restricted Stock Units | Cash Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cash settled awards | $ 21,000 | $ 22,000 | ||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of installments | installment | 4 | |||
Vesting period | 3 years | |||
Restricted Stock Units (RSUs) | Cash Settled | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of installments | installment | 4 | |||
Restricted Stock Units (RSUs) | Cash Settled | Cliff Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance Based Restricted Stock and Restricted Stock Units | Cash Settled | Cliff Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
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 | |||
2007 Long-term Equity Compensation Plan | Service Based Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of installments | installment | 4 | |||
2014 Long Term Equity Compensation Plan | Service Based Restricted Stock And Restricted Stock Units | Share Settled | Cliff Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2014 Long Term Equity Compensation Plan | Service Based Restricted Stock And Restricted Stock Units | Cash Settled | Cliff Vesting | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
2014 Long Term Equity Compensation Plan | Restricted Stock And Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Fair value of restricted stock and cash settled awards vested | $ 44,000 | |||
2017 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) | shares | 3,400,000 | |||
Number of awards available for grant under plan (in shares) | shares | 2,824,592 |
SHARE-BASED COMPENSATION - Shar
SHARE-BASED COMPENSATION - Share and cash settled awards (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Grant Date Fair Value | ||
Liability for cash-settled units | $ 20,648 | $ 21,535 |
Performance Based Restricted Stock and Restricted Stock Units | Share Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 230,000 | 283,000 |
Granted (in shares) | 104,000 | 87,000 |
Vested (in shares) | (87,000) | (119,000) |
Forfeited (in shares) | (15,000) | (21,000) |
Nonvested restricted stock - end of year (in shares) | 232,000 | 230,000 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value - beginning of year (in usd per share) | $ 57.08 | $ 51.27 |
Weighted average grant date fair value - granted (in usd per share) | 48.89 | 64.58 |
Weighted average grant date fair value - vested (in usd per share) | 54.71 | 49.14 |
Weighted average grant date fair value - forfeited (in usd per share) | 53.80 | 55 |
Weighted average grant date fair value - end of year (in usd per share) | $ 54.54 | $ 57.08 |
Performance Based Restricted Stock and Restricted Stock Units | Cash Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 42,000 | 68,000 |
Granted (in shares) | 0 | 15,000 |
Vested (in shares) | (12,000) | (38,000) |
Forfeited (in shares) | (3,000) | (3,000) |
Nonvested restricted stock - end of year (in shares) | 27,000 | 42,000 |
Service Based Restricted Stock And Restricted Stock Units | Share Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 1,355,000 | 1,593,000 |
Granted (in shares) | 737,000 | 733,000 |
Vested (in shares) | (539,000) | (889,000) |
Forfeited (in shares) | (142,000) | (82,000) |
Nonvested restricted stock - end of year (in shares) | 1,411,000 | 1,355,000 |
Weighted Average Grant Date Fair Value | ||
Weighted average grant date fair value - beginning of year (in usd per share) | $ 57.09 | $ 48.88 |
Weighted average grant date fair value - granted (in usd per share) | 49.36 | 61.94 |
Weighted average grant date fair value - vested (in usd per share) | 54.51 | 47.48 |
Weighted average grant date fair value - forfeited (in usd per share) | 55.36 | 54.89 |
Weighted average grant date fair value - end of year (in usd per share) | $ 54.12 | $ 57.09 |
Service Based Restricted Stock And Restricted Stock Units | Cash Settled | ||
Number of restricted stock units | ||
Nonvested restricted stock - beginning of year (in shares) | 988,000 | 1,392,000 |
Granted (in shares) | 473,000 | 432,000 |
Vested (in shares) | (390,000) | (763,000) |
Forfeited (in shares) | (139,000) | (73,000) |
Nonvested restricted stock - end of year (in shares) | 932,000 | 988,000 |
Restricted Stock Units (RSUs) | ||
Weighted Average Grant Date Fair Value | ||
Vesting period | 3 years | |
Cliff Vesting | Performance Based Restricted Stock and Restricted Stock Units | Cash Settled | ||
Weighted Average Grant Date Fair Value | ||
Vesting period | 3 years | |
Cliff Vesting | Restricted Stock Units (RSUs) | Cash Settled | ||
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 | Share Settled | ||
Number of restricted stock units | ||
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 units | ||
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, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||||
Other investments | $ 787,787 | $ 1,009,373 | ||
Ceded premiums | 2,251,103 | 1,529,130 | $ 1,217,234 | |
Ceded losses and loss expenses | 1,565,000 | 1,010,000 | 556,000 | |
Insurance and reinsurance balances payable | 1,338,991 | 899,064 | ||
Stone Point Group | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 2,000 | 2,000 | 3,000 | |
NXT Capital II | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 18,000 | |||
NXT Capital III | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 20,000 | |||
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 | 2,000 | 1,000 | ||
Other investments | 50,000 | |||
Chairman | ||||
Related Party Transaction [Line Items] | ||||
Fees paid to related party | 500 | 500 | $ 600 | |
Significant influence | ||||
Related Party Transaction [Line Items] | ||||
Other investments | 450,000 | 451,000 | ||
Harrington Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 194,000 | 213,000 | ||
Ceded losses and loss expenses | 142,000 | 119,000 | ||
Reinsurance recoverable on unpaid and paid losses | 363,000 | 152,000 | ||
Insurance and reinsurance balances payable | 115,000 | 142,000 | ||
Ventures Re | ||||
Related Party Transaction [Line Items] | ||||
Ceded premiums | 182,000 | 107,000 | ||
Ceded losses and loss expenses | 138,000 | 126,000 | ||
Reinsurance recoverable on unpaid and paid losses | 186,000 | 131,000 | ||
Insurance and reinsurance balances payable | $ 67,000 | $ 17,000 | ||
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 | 43.00% | |||
Stone Point Group | Pantheon | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership by related parties | 14.50% |
INCOME TAXES - Income tax expen
INCOME TAXES - Income tax expense and net tax assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income tax expense [Line Items] | ||||
Total income tax expense (benefit) | $ 42,000 | $ (29,486) | $ (7,542) | $ 6,340 |
Net current tax receivables (payables) | 9,683 | 3,540 | ||
Taxes payable | (639) | (639) | ||
Net deferred tax assets | 4,438 | 39,775 | 4,438 | 103,313 |
Net tax assets | $ 3,799 | 49,458 | 3,799 | 106,853 |
U.S. | ||||
Income tax expense [Line Items] | ||||
Current income tax expense (benefit) | (5,401) | (6,207) | 606 | |
Deferred income tax expense (benefit) | 15,288 | 18,495 | (1,829) | |
Europe | ||||
Income tax expense [Line Items] | ||||
Current income tax expense (benefit) | 10,409 | 10,249 | 7,451 | |
Deferred income tax expense (benefit) | (49,833) | (30,079) | 112 | |
Other | ||||
Income tax expense [Line Items] | ||||
Current income tax expense (benefit) | $ 51 | $ 0 | $ 0 |
INCOME TAXES - Deferred tax ass
INCOME TAXES - Deferred tax assets and liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2016 | |
Deferred tax assets: | |||
Discounting of net reserves for losses and loss expenses | $ 27,804 | $ 37,440 | |
Unearned premiums | 25,188 | 40,447 | |
Net unrealized investments losses | 0 | 11,438 | |
Operating and capital loss carryforwards | 53,095 | 83,850 | |
Accruals not currently deductible | 31,560 | 32,589 | |
Tax credits | 29,929 | 8,672 | |
Other deferred tax assets | 15,047 | 9,195 | |
Deferred tax assets before valuation allowance | 182,623 | 223,631 | |
Valuation allowance | (16,157) | (18,955) | |
Deferred tax assets net of valuation allowance | 166,466 | 204,676 | |
Deferred tax liabilities: | |||
Deferred acquisition costs | (24,249) | (39,745) | |
Net unrealized investments gains | (8,033) | 0 | |
Amortization of VOBA, intangible assets and goodwill | (85,296) | (49,097) | |
Equalization reserves | (23,274) | (22,069) | |
Other deferred tax liabilities | (21,176) | (53,990) | |
Deferred tax liabilities | (162,028) | (164,901) | |
Net deferred tax assets | 4,438 | 39,775 | $ 103,313 |
Deferred tax asset, provisional income tax expense | 41,600 | ||
Deferred tax liabilities, business acquisition | 103,800 | ||
Lloyd's | |||
Deferred tax assets: | |||
Operating and capital loss carryforwards | $ 19,000 | $ 68,000 |
INCOME TAXES - Operating and ca
INCOME TAXES - Operating and capital loss carryforwards and tax credits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Singapore | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 79,445 | $ 77,467 |
United Kingdom | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 413,504 | 126,839 |
Tax credit | 398 | 14,310 |
Ireland | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | 12,756 | 0 |
Tax credit | 2,248 | 3,566 |
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 | 15,062 | 115,236 |
U.S. alternative minimum tax credit | 6,026 | 12,052 |
Lloyd's | United Kingdom | ||
Operating Loss And Tax Credit Carryforwards [Line Items] | ||
Operating loss carryforwards | $ 403,000 | $ 113,000 |
INCOME TAXES - Valuation allowa
INCOME TAXES - Valuation allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | $ 16,157 | |
Valuation allowance - end of year | 18,955 | $ 16,157 |
Operating loss carryforwards | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | 198 | (27,116) |
Foreign tax credit | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | (1,359) | 267 |
U.K. branch assets and other foreign rate differentials | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | (205) | 1,006 |
U.S. alternative minimum tax credits | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | (900) | 900 |
Income tax expense | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | 16,157 | 41,100 |
Valuation allowance - end of year | 13,891 | 16,157 |
Accumulated other comprehensive income | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Valuation allowance - beginning of year | 0 | 0 |
Valuation allowance - end of year | 5,064 | 0 |
Change in investment - related items | ||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Change in valuation allowance | $ 5,064 | $ 0 |
INCOME TAXES - Effective tax ra
INCOME TAXES - Effective tax rate (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | |||
Unrecognized tax benefits | $ 0 | $ 0 | |
Income (loss) before income taxes | |||
Bermuda (domestic) | 181,597,000 | (188,420,000) | $ 469,306,000 |
Foreign | (168,062,000) | (188,091,000) | 50,402,000 |
Total income before income taxes | $ 13,535,000 | $ (376,511,000) | $ 519,708,000 |
Reconciliation of effective tax rate (% of income before income taxes) | |||
Expected tax rate | 0.00% | 0.00% | 0.00% |
Valuation allowance | (13.40%) | 0.00% | 0.20% |
Net tax exempt income | (3.30%) | 0.10% | (0.20%) |
Other | 5.90% | 0.30% | 0.30% |
Actual tax rate | (217.90%) | 2.00% | 1.20% |
U.S. | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | 65.70% | 6.60% | (0.60%) |
Change in enacted tax rate | 0.00% | (11.10%) | 0.00% |
Europe | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | (289.70%) | 5.80% | 1.50% |
Change in enacted tax rate | 16.90% | 0.00% | 0.00% |
Other | |||
Reconciliation of effective tax rate (% of income before income taxes) | |||
Foreign taxes at local expected rates: | 0.00% | 0.30% | 0.00% |
Foreign Tax Credit And Change In Investment Related Items | |||
Reconciliation of effective tax rate (% of income before income taxes) [Line Items] | |||
Change in valuation allowance | $ (1,200,000) |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) - Component of other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Before tax amount | |||
Other comprehensive income (loss), before tax amount | $ (202,694) | $ 219,197 | $ 69,950 |
Tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | 700 | (4,974) | (3,326) |
Net of tax amount | |||
Other comprehensive income (loss), net of tax amount | (201,994) | 214,223 | 66,624 |
Unrealized gains (losses) on available for sale investments, net of tax | |||
Before tax amount | |||
Unrealized investment gains (losses) arising during the year | (297,259) | 211,151 | 10,165 |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | 105,730 | (33,892) | 60,423 |
Other comprehensive income (loss), before tax amount | (191,529) | 177,259 | 70,588 |
Tax (expense) benefit | |||
Unrealized investment gains (losses) arising during the year | 5,528 | (5,732) | (5,093) |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (4,828) | 758 | 1,767 |
Other comprehensive income (loss), tax (expense) benefit | 700 | (4,974) | (3,326) |
Net of tax amount | |||
Unrealized investment gains (losses) arising during the year | (291,731) | 205,419 | 5,072 |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | 100,902 | (33,134) | 62,190 |
Other comprehensive income (loss), net of tax amount | (190,829) | 172,285 | 67,262 |
Non-credit portion of OTTI losses | |||
Before tax amount | |||
Other comprehensive income (loss), before tax amount | 0 | 0 | 0 |
Tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | 0 | 0 | 0 |
Net of tax amount | |||
Other comprehensive income (loss), net of tax amount | 0 | 0 | 0 |
Foreign currency translation adjustment | |||
Before tax amount | |||
Other comprehensive income (loss), before tax amount | (11,165) | 41,938 | (638) |
Tax (expense) benefit | |||
Other comprehensive income (loss), tax (expense) benefit | 0 | 0 | 0 |
Net of tax amount | |||
Other comprehensive income (loss), net of tax amount | $ (11,165) | $ 41,938 | $ (638) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) - Reclassifications out of AOCI into net income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | |||||||||||
OTTI losses | $ (9,733) | $ (14,493) | $ (26,210) | ||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | 12,542 | (368,109) | 521,802 | ||||||||
Foreign exchange gains | 29,165 | (134,737) | 121,295 | ||||||||
Income tax (expense) benefit | $ (42,000) | 29,486 | 7,542 | (6,340) | |||||||
Net income (loss) available to common shareholders | $ (198,448) | $ 43,439 | $ 92,858 | $ 62,546 | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | 396 | (415,779) | 465,462 |
Non-cash foreign exchange losses | 0 | 24,149 | 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) | (95,997) | 48,385 | (34,213) | ||||||||
OTTI losses | (9,733) | (14,493) | (26,210) | ||||||||
Income (loss) before income taxes and interest in income (loss) of equity method investments | (105,730) | 33,892 | (60,423) | ||||||||
Income tax (expense) benefit | 4,828 | (758) | (1,767) | ||||||||
Net income (loss) available to common shareholders | (100,902) | 33,134 | (62,190) | ||||||||
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 gains | 0 | (24,149) | 0 | ||||||||
Income tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income (loss) available to common shareholders | $ 0 | $ (24,149) | $ 0 |
STATUTORY FINANCIAL INFORMATI_3
STATUTORY FINANCIAL INFORMATION (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018USD ($)board_member | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Statutory Financial Information [Line Items] | |||
Statutory net income | $ 268,000 | $ (94,000) | $ 598,000 |
Bermuda | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 1,470,375 | 1,800,064 | |
Available statutory capital and surplus | 3,513,342 | 3,641,279 | |
Minimum solvency margin amount | $ 100,000 | ||
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 | 900,000 | |
Ireland | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 637,226 | 613,923 | |
Available statutory capital and surplus | 896,868 | 906,512 | |
Maximum dividend/distribution payable with regulatory approval | 37,000 | 52,000 | |
U.S. | |||
Statutory Financial Information [Line Items] | |||
Required statutory capital and surplus | 489,560 | 488,560 | |
Available statutory capital and surplus | 1,668,847 | 1,511,480 | |
Maximum dividend/distribution payable without regulatory approval | $ 130,000 | 115,000 | |
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 | $ 715,000 | 557,000 | |
Financial instruments, as collateral, released from restriction | 1,600 | ||
AXIS Syndicate 1686 | Cash | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 8,000 | 12,000 | |
Syndicate 2,007 | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, released from restriction | 41,000 | ||
Syndicate 2007 | Equity securities | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 40,000 | 59,000 | |
Syndicate 2007 | Cash | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | 16,000 | 0 | |
Syndicate 2007 | Fixed maturities and short-term investments | |||
Statutory Financial Information [Line Items] | |||
Financial instruments, as collateral, at fair value | $ 528,000 | $ 564,000 |
UNAUDITED CONDENSED QUARTERLY_3
UNAUDITED CONDENSED QUARTERLY FINANCIAL DATA (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net premiums earned | $ 1,214,469 | $ 1,224,075 | $ 1,185,548 | $ 1,167,402 | $ 1,211,495 | $ 1,017,131 | $ 981,431 | $ 938,703 | $ 4,791,495 | $ 4,148,760 | $ 3,705,625 |
Net investment income | 113,128 | 114,421 | 109,960 | 100,999 | 100,908 | 95,169 | 106,063 | 98,664 | 438,507 | 400,805 | 353,335 |
Net investment losses | (72,667) | (17,628) | (45,093) | (14,830) | 43,038 | 14,632 | (4,392) | (25,050) | (150,218) | 28,226 | (60,525) |
Underwriting income (loss) | (194,664) | 59,026 | 115,726 | 143,737 | 26,130 | (512,853) | 57,012 | 16,385 | |||
Net income (loss) available (attributable) to common shareholders | $ (198,448) | $ 43,439 | $ 92,858 | $ 62,546 | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | $ 396 | $ (415,779) | $ 465,462 |
Basic earnings (loss) per common share (in dollars per share) | $ (2.37) | $ 0.52 | $ 1.11 | $ 0.75 | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 0 | $ (4.94) | $ 5.13 |
Diluted earnings (loss) per common share (in dollars per share) | $ (2.37) | $ 0.52 | $ 1.11 | $ 0.75 | $ (0.46) | $ (5.61) | $ 1.01 | $ 0.06 | $ 0 | $ (4.94) | $ 5.08 |
Transaction and reorganization expenses | $ 19,000 | $ 16,000 | $ 19,000 | $ 13,000 | $ 21,000 | $ 6,000 | |||||
Amortization of value of business acquired | $ 23,000 | $ 39,000 | $ 53,000 | $ 57,000 | 50,000 | $ 172,332 | $ 50,104 | $ 0 | |||
Total income tax expense (benefit) | $ 42,000 | $ (29,486) | $ (7,542) | $ 6,340 |
SCHEDULE I - SUMMARY OF INVES_2
SCHEDULE I - SUMMARY OF INVESTMENTS - OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) $ in Thousands | Dec. 31, 2018USD ($) |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | $ 12,705,462 |
Amount shown on the balance sheet | 13,155,560 |
Fixed maturities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 11,616,312 |
Fair value | 11,435,347 |
Amount shown on the balance sheet | 11,435,347 |
U.S. government and agency | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,520,142 |
Fair value | 1,515,697 |
Amount shown on the balance sheet | 1,515,697 |
Non-U.S. government | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 507,550 |
Fair value | 493,016 |
Amount shown on the balance sheet | 493,016 |
Corporate debt | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 4,990,279 |
Fair value | 4,876,921 |
Amount shown on the balance sheet | 4,876,921 |
Agency RMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,666,684 |
Fair value | 1,643,308 |
Amount shown on the balance sheet | 1,643,308 |
CMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,103,507 |
Fair value | 1,092,530 |
Amount shown on the balance sheet | 1,092,530 |
Non-Agency RMBS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 40,732 |
Fair value | 40,687 |
Amount shown on the balance sheet | 40,687 |
ABS | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 1,651,350 |
Fair value | 1,637,603 |
Amount shown on the balance sheet | 1,637,603 |
Municipals | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Amortized cost | 136,068 |
Fair value | 135,585 |
Amount shown on the balance sheet | 135,585 |
Mortgage loans | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 298,650 |
Amount shown on the balance sheet | 298,650 |
Short-term investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 144,040 |
Amount shown on the balance sheet | 144,040 |
Equity securities | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 381,633 |
Amount shown on the balance sheet | 381,633 |
Other Investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 445,792 |
Amount shown on the balance sheet | 787,787 |
Equity method investments | |
SEC Schedule, 12-15, Insurance Companies, Summary of Investments, Other than Investments in Related Parties [Line Items] | |
Fair value | 0 |
Amount shown on the balance sheet | $ 108,103 |
SCHEDULE II - CONDENSED FINAN_2
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 1,232,814 | $ 948,626 |
Other assets | 285,346 | 317,915 |
Total assets | 24,132,566 | 24,760,177 |
Liabilities | ||
Other liabilities | 393,178 | 403,779 |
Total liabilities | 19,102,495 | 19,418,913 |
Shareholders’ equity | ||
Preferred shares | 775,000 | 775,000 |
Common shares (shares issued 2018: 176,580; 2017: 176,580 shares outstanding 2018: 83,586; 2017: 83,161) | 2,206 | 2,206 |
Additional paid-in capital | 2,308,583 | 2,299,166 |
Accumulated other comprehensive income (loss) | (177,110) | 92,382 |
Retained earnings | 5,912,812 | 5,979,666 |
Treasury shares, at cost (2018: 92,994; 2017: 93,419) | (3,791,420) | (3,807,156) |
Total shareholders’ equity | 5,030,071 | 5,341,264 |
Total liabilities and shareholders’ equity | 24,132,566 | 24,760,177 |
AXIS Capital Holdings Limited | ||
Assets | ||
Investments in subsidiaries | 5,320,828 | 5,532,396 |
Cash and cash equivalents | 3,099 | 10,541 |
Other assets | 9,647 | 9,480 |
Total assets | 5,333,574 | 5,552,417 |
Liabilities | ||
Intercompany payable | 247,992 | 160,950 |
Dividends payable | 51,157 | 49,907 |
Other liabilities | 4,354 | 296 |
Total liabilities | 303,503 | 211,153 |
Shareholders’ equity | ||
Preferred shares | 775,000 | 775,000 |
Common shares (shares issued 2018: 176,580; 2017: 176,580 shares outstanding 2018: 83,586; 2017: 83,161) | 2,206 | 2,206 |
Additional paid-in capital | 2,308,583 | 2,299,166 |
Accumulated other comprehensive income (loss) | (177,110) | 92,382 |
Retained earnings | 5,912,812 | 5,979,666 |
Treasury shares, at cost (2018: 92,994; 2017: 93,419) | (3,791,420) | (3,807,156) |
Total shareholders’ equity | 5,030,071 | 5,341,264 |
Total liabilities and shareholders’ equity | $ 5,333,574 | $ 5,552,417 |
SCHEDULE II - CONDENSED FINAN_3
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS, Additional Information (Details) - shares shares in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Condensed Financial Information of Parent Company [Line Items] | ||
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,586 | 83,161 |
Treasury shares (in shares) | 92,994 | 93,419 |
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) | 83,586 | 83,161 |
Treasury shares (in shares) | 92,994 | 93,419 |
SCHEDULE II - CONDENSED FINAN_4
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - BALANCE SHEETS, Footnotes (Details) - USD ($) $ in Millions | Feb. 15, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 06, 2017 | 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 | 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 | ||||
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 | ||||
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 | ||||
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 | ||||
Interest rate | 4.00% | ||||
AXIS Specialty Global Holdings [Member] | |||||
Condensed Financial Information of Parent Company [Line Items] | |||||
Capital contributions to subsidiary | $ 105 | ||||
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 |
SCHEDULE II - CONDENSED FINAN_5
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - OPERATIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | |||||||||||
Total revenues | $ 5,090,406 | $ 4,591,595 | $ 4,005,657 | ||||||||
Expenses | |||||||||||
Net income (loss) | 43,021 | (368,969) | 513,368 | ||||||||
Preferred share dividends | 42,625 | 46,810 | 46,597 | ||||||||
Loss on repurchase of preferred shares | 0 | 0 | 1,309 | ||||||||
Net income (loss) available to common shareholders | $ (198,448) | $ 43,439 | $ 92,858 | $ 62,546 | $ (38,081) | $ (467,740) | $ 85,030 | $ 5,014 | 396 | (415,779) | 465,462 |
Comprehensive income (loss) | (158,973) | (154,746) | 579,992 | ||||||||
AXIS Capital Holdings Limited | |||||||||||
Revenues | |||||||||||
Net investment income (1) | 900 | 2,116 | 656 | ||||||||
Total revenues | 900 | 2,116 | 656 | ||||||||
Expenses | |||||||||||
General and administrative expenses | 29,250 | 34,933 | 39,909 | ||||||||
Total expenses | 29,250 | 34,933 | 39,909 | ||||||||
Income (loss) before equity in net income (loss) of subsidiaries | (28,350) | (32,817) | (39,253) | ||||||||
Equity in net income (loss) of subsidiaries | 71,371 | (336,152) | 552,621 | ||||||||
Net income (loss) | 43,021 | (368,969) | 513,368 | ||||||||
Preferred share dividends | 42,625 | 46,810 | 46,597 | ||||||||
Loss on repurchase of preferred shares | 0 | 0 | 1,309 | ||||||||
Net income (loss) available to common shareholders | 396 | (415,779) | 465,462 | ||||||||
Comprehensive income (loss) | $ (158,973) | $ (154,746) | $ 579,992 |
SCHEDULE II - CONDENSED FINAN_6
SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF PARENT COMPANY - CASH FLOWS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net income | $ 43,021 | $ (368,969) | $ 513,368 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Other items | 26,452 | (64,928) | (13,804) |
Net cash provided by operating activities | 10,773 | 259,229 | 406,724 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | 638,554 | 391,510 | (129,036) |
Cash flows from financing activities: | |||
Net proceeds from issuance of preferred shares | 0 | 0 | 531,945 |
Repurchase of common shares - open market | 0 | (261,180) | (495,426) |
Taxes paid on withholding shares | (10,080) | (24,678) | (14,329) |
Dividends paid - common shares | (133,502) | (135,032) | (132,323) |
Repurchase of preferred shares | 0 | (351,074) | (51,769) |
Dividends paid - preferred shares | (42,625) | (52,844) | (39,909) |
Proceeds from issuance of common shares | 0 | 0 | 224 |
Net cash used in financing activities | (186,207) | (545,688) | (201,587) |
Increase (decrease) in cash and cash equivalents | 466,234 | 122,279 | 66,756 |
Cash, cash equivalents and restricted cash - beginning of year | 1,363,786 | 1,241,507 | 1,174,751 |
Cash, cash equivalents and restricted cash - end of year | 1,830,020 | 1,363,786 | 1,241,507 |
AXIS Capital Holdings Limited | |||
Cash flows from operating activities: | |||
Net income | 43,021 | (368,969) | 513,368 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Equity in net income (loss) of subsidiaries | (71,371) | 336,152 | (552,621) |
Change in intercompany payable | 87,042 | 94,827 | 33,286 |
Dividends received from subsidiaries | 200,000 | 400,000 | 550,000 |
Other items | (79,927) | 4,988 | 17,807 |
Net cash provided by operating activities | 178,765 | 466,998 | 561,840 |
Cash flows from investing activities: | |||
Promissory note receivable from subsidiary | 0 | 0 | (368,252) |
Capital returned by subsidiary | 0 | 368,252 | 0 |
Net cash provided by (used in) investing activities | 0 | 368,252 | (368,252) |
Cash flows from financing activities: | |||
Net proceeds from issuance of preferred shares | 0 | 0 | 531,945 |
Repurchase of common shares - open market | 0 | (261,180) | (495,426) |
Taxes paid on withholding shares | (10,080) | (24,678) | (14,329) |
Dividends paid - common shares | (133,502) | (135,032) | (132,323) |
Repurchase of preferred shares | 0 | (351,074) | (51,769) |
Dividends paid - preferred shares | (42,625) | (52,844) | (39,909) |
Proceeds from issuance of common shares | 0 | 0 | 224 |
Net cash used in financing activities | (186,207) | (824,808) | (201,587) |
Increase (decrease) in cash and cash equivalents | (7,442) | 10,442 | (7,999) |
Cash, cash equivalents and restricted cash - beginning of year | 10,541 | 99 | 8,098 |
Cash, cash equivalents and restricted cash - end of year | $ 3,099 | $ 10,541 | $ 99 |
SCHEDULE III - SUPPLEMENTARY _2
SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | $ 566,622 | $ 474,061 | $ 438,636 |
Reserve for losses and loss expenses | 12,280,769 | 12,997,553 | 9,697,827 |
Unearned premiums | 3,635,758 | 3,641,399 | 2,969,498 |
Net premiums earned | 4,791,495 | 4,148,760 | 3,705,625 |
Net Investment Income | 438,507 | 400,805 | 353,335 |
Net losses and loss expenses | 3,190,287 | 3,287,772 | 2,204,197 |
Acquisition costs | 968,835 | 823,591 | 746,876 |
Other Operating Expenses | 627,389 | 579,428 | 602,717 |
Net premiums written | 4,658,962 | 4,027,143 | 3,752,974 |
Operating Segments | Insurance | |||
Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | 209,622 | 115,332 | 100,149 |
Reserve for losses and loss expenses | 6,426,309 | 7,011,805 | 5,198,070 |
Unearned premiums | 2,061,123 | 2,053,422 | 1,423,891 |
Net premiums earned | 2,362,606 | 1,816,438 | 1,534,282 |
Net Investment Income | 0 | 0 | 0 |
Net losses and loss expenses | 1,494,323 | 1,465,427 | 977,771 |
Acquisition costs | 399,193 | 270,229 | 206,619 |
Other Operating Expenses | 395,252 | 325,368 | 327,351 |
Net premiums written | 2,324,747 | 1,775,825 | 1,519,559 |
Operating Segments | Reinsurance | |||
Supplementary Insurance Information [Line Items] | |||
Deferred acquisition costs | 357,000 | 358,729 | 338,487 |
Reserve for losses and loss expenses | 5,854,460 | 5,985,748 | 4,499,757 |
Unearned premiums | 1,574,635 | 1,587,977 | 1,545,607 |
Net premiums earned | 2,428,889 | 2,332,322 | 2,171,343 |
Net Investment Income | 0 | 0 | 0 |
Net losses and loss expenses | 1,695,964 | 1,822,345 | 1,226,426 |
Acquisition costs | 569,642 | 553,362 | 540,257 |
Other Operating Expenses | 123,916 | 124,115 | 155,350 |
Net premiums written | 2,334,215 | 2,251,318 | 2,233,415 |
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 | 438,507 | 400,805 | 353,335 |
Net losses and loss expenses | 0 | 0 | 0 |
Acquisition costs | 0 | 0 | 0 |
Other Operating Expenses | 108,221 | 129,945 | 120,016 |
Net premiums written | $ 0 | $ 0 | $ 0 |
SCHEDULE IV - SUPPLEMENTARY R_2
SCHEDULE IV - SUPPLEMENTARY REINSURANCE INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 3,468,040 | $ 2,423,126 | $ 2,112,178 |
CEDED TO OTHER COMPANIES | 2,251,103 | 1,529,130 | 1,217,234 |
ASSUMED FROM OTHER COMPANIES | 3,442,025 | 3,133,147 | 2,858,030 |
NET AMOUNT | $ 4,658,962 | $ 4,027,143 | $ 3,752,974 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 73.90% | 77.80% | 76.20% |
Property and Casualty | |||
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 3,258,999 | $ 2,228,022 | $ 1,975,497 |
CEDED TO OTHER COMPANIES | 2,163,417 | 1,523,662 | 1,215,775 |
ASSUMED FROM OTHER COMPANIES | 3,074,906 | 2,814,173 | 2,564,606 |
NET AMOUNT | $ 4,170,488 | $ 3,518,533 | $ 3,324,328 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 73.70% | 80.00% | 77.10% |
Accident and health | |||
Supplementary Insurance Information [Line Items] | |||
DIRECT GROSS PREMIUM | $ 209,041 | $ 195,104 | $ 136,681 |
CEDED TO OTHER COMPANIES | 87,686 | 5,468 | 1,459 |
ASSUMED FROM OTHER COMPANIES | 367,119 | 318,974 | 293,424 |
NET AMOUNT | $ 488,474 | $ 508,610 | $ 428,646 |
PERCENTAGE OF AMOUNT ASSUMED TO NET | 75.20% | 62.70% | 68.50% |