DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 31, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-31721 | |
Entity Registrant Name | AXIS CAPITAL HOLDINGS LTD | |
Entity Incorporation, State or Country Code | D0 | |
Entity Tax Identification Number | 98-0395986 | |
Entity Address, Address Line One | 92 Pitts Bay Road | |
Entity Address, City or Town | Pembroke | |
Entity Address, Country | BM | |
Entity Address, Postal Zip Code | HM 08 | |
City Area Code | 441 | |
Local Phone Number | 496-2600 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 83,946,833 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001214816 | |
NEW YORK STOCK EXCHANGE, INC. | Common stocks | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common shares, par value $0.0125 per share | |
Trading Symbol | AXS | |
Security Exchange Name | NYSE | |
NEW YORK STOCK EXCHANGE, INC. | Series D Preferred Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 5.50% Series D preferred shares | |
Trading Symbol | AXS PRD | |
Security Exchange Name | NYSE | |
NEW YORK STOCK EXCHANGE, INC. | Series E Preferred Shares | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares, each representing a 1/100th interest in a 5.50% Series E preferred share | |
Trading Symbol | AXS PRE | |
Security Exchange Name | NYSE |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investments: | ||
Fixed maturities, available for sale, at fair value (Amortized cost 2019: $12,343,774; 2018: $11,616,312) | $ 12,522,955 | $ 11,435,347 |
Equity securities, at fair value (Cost 2019: $377,895; 2018: $365,905) | 433,407 | 381,633 |
Mortgage loans, held for investment, at fair value | 394,179 | 298,650 |
Other investments, at fair value | 802,064 | 787,787 |
Equity method investments | 112,956 | 108,103 |
Short-term investments, at fair value | 32,421 | 144,040 |
Total investments | 14,297,982 | 13,155,560 |
Cash and cash equivalents | 712,463 | 1,232,814 |
Restricted cash and cash equivalents | 382,251 | 597,206 |
Accrued interest receivable | 82,567 | 80,335 |
Insurance and reinsurance premium balances receivable | 3,732,529 | 3,007,296 |
Reinsurance recoverable on unpaid losses and loss expenses | 3,564,812 | 3,501,669 |
Reinsurance recoverable on paid losses and loss expenses | 364,536 | 280,233 |
Deferred acquisition costs | 657,275 | 566,622 |
Prepaid reinsurance premiums | 1,291,979 | 1,013,573 |
Receivable for investments sold | 25,850 | 32,627 |
Goodwill | 102,003 | 102,003 |
Intangible assets | 236,009 | 241,568 |
Value of business acquired | 15,416 | 35,714 |
Operating lease right-of-use assets | 132,940 | 0 |
Other assets | 271,562 | 285,346 |
Total assets | 25,870,174 | 24,132,566 |
Liabilities | ||
Reserve for losses and loss expenses | 12,254,711 | 12,280,769 |
Unearned premiums | 4,503,132 | 3,635,758 |
Insurance and reinsurance balances payable | 1,484,285 | 1,338,991 |
Senior notes | 1,387,748 | 1,341,961 |
Payable for investments purchased | 181,274 | 111,838 |
Operating lease liabilities | 133,257 | 0 |
Other liabilities | 359,290 | 393,178 |
Total liabilities | 20,303,697 | 19,102,495 |
Shareholders’ equity | ||
Preferred shares | 775,000 | 775,000 |
Common shares (shares issued 2019: 176,580; 2018: 176,580 shares outstanding 2019: 83,947; 2018: 83,586) | 2,206 | 2,206 |
Additional paid-in capital | 2,303,592 | 2,308,583 |
Accumulated other comprehensive income (loss) | 156,145 | (177,110) |
Retained earnings | 6,108,577 | 5,912,812 |
Treasury shares, at cost (2019: 92,633; 2018: 92,994 shares) | (3,779,043) | (3,791,420) |
Total shareholders’ equity | 5,566,477 | 5,030,071 |
Total liabilities and shareholders’ equity | $ 25,870,174 | $ 24,132,566 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Fixed maturities, available for sale, amortized cost | $ 12,343,774 | $ 11,616,312 |
Equity securities, cost | $ 377,895 | $ 365,905 |
Common shares, shares issued (in shares) | 176,580 | 176,580 |
Common shares, shares outstanding (in shares) | 83,947 | 83,586 |
Treasury shares, shares (in shares) | 92,633 | 92,994 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues | ||||
Net premiums earned | $ 1,123,607 | $ 1,185,548 | $ 2,257,819 | $ 2,352,950 |
Net investment income | 137,949 | 109,960 | 245,254 | 210,961 |
Other insurance related income | 2,925 | 3,730 | 9,852 | 10,335 |
Net investment gains (losses): | ||||
Other-than-temporary impairment (OTTI) losses | (834) | (1,674) | (4,870) | (2,088) |
Other realized and unrealized investment gains (losses) | 22,059 | (43,419) | 38,866 | (57,835) |
Total net investment gains (losses) | 21,225 | (45,093) | 33,996 | (59,923) |
Total revenues | 1,285,706 | 1,254,145 | 2,546,921 | 2,514,323 |
Expenses | ||||
Net losses and loss expenses | 672,463 | 706,641 | 1,336,491 | 1,367,986 |
Acquisition costs | 242,363 | 231,952 | 502,781 | 461,212 |
General and administrative expenses | 165,395 | 165,213 | 340,486 | 335,049 |
Foreign exchange gains | (12,381) | (44,099) | (5,325) | (6,239) |
Interest expense and financing costs | 15,607 | 17,098 | 31,502 | 33,861 |
Transaction and reorganization expenses | 3,276 | 18,772 | 18,096 | 31,825 |
Amortization of value of business acquired | 7,194 | 53,407 | 20,298 | 110,517 |
Amortization of intangible assets | 2,912 | 4,029 | 5,914 | 6,811 |
Total expenses | 1,096,829 | 1,153,013 | 2,250,243 | 2,341,022 |
Income before income taxes and interest in income of equity method investments | 188,877 | 101,132 | 296,678 | 173,301 |
Income tax (expense) benefit | (14,469) | (996) | (15,703) | 40 |
Interest in income of equity method investments | 2,635 | 3,378 | 4,853 | 3,378 |
Net income | 177,043 | 103,514 | 285,828 | 176,719 |
Preferred share dividends | 10,656 | 10,656 | 21,313 | 21,313 |
Net income available to common shareholders | $ 166,387 | $ 92,858 | $ 264,515 | $ 155,406 |
Earnings per common share: | ||||
Earnings per common share (in usd per share) | $ 1.98 | $ 1.11 | $ 3.16 | $ 1.86 |
Earnings per diluted common share (in usd per share) | $ 1.97 | $ 1.11 | $ 3.14 | $ 1.85 |
Weighted average number of common shares outstanding - basic (in shares) | 83,941 | 83,539 | 83,834 | 83,431 |
Weighted average number of common shares outstanding - diluted (in shares) | 84,401 | 83,984 | 84,338 | 83,853 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 177,043 | $ 103,514 | $ 285,828 | $ 176,719 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized investment gains (losses) arising during the period | 131,442 | (105,280) | 321,651 | (217,434) |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (6,949) | 36,456 | 6,385 | 37,240 |
Unrealized investment gains (losses) arising during the period, net of reclassification adjustment | 124,493 | (68,824) | 328,036 | (180,194) |
Foreign currency translation adjustment | 2,556 | (9,129) | 5,219 | (7,858) |
Total other comprehensive income (loss), net of tax | 127,049 | (77,953) | 333,255 | (188,052) |
Comprehensive income (loss) | $ 304,092 | $ 25,561 | $ 619,083 | $ (11,333) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Total | Preferred shares | Common shares (par value) | 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 | $ 2,106 | $ (2,106) | |||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2016-01 | (69,604) | 69,604 | |||||||
Balance at beginning of period at Dec. 31, 2017 | $ 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] | |||||||||
Shares repurchased | (8,676) | ||||||||
Shares reissued | (21,879) | 23,541 | |||||||
Share-based compensation expense | 18,346 | ||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustment | $ (180,194) | (180,194) | |||||||
Foreign currency translation adjustment | (7,858) | (7,858) | |||||||
Net income | 176,719 | 176,719 | |||||||
Preferred share dividends | (21,313) | ||||||||
Common share dividends | (66,945) | ||||||||
Balance at end of period at Jun. 30, 2018 | 5,253,005 | 775,000 | 2,206 | 2,295,633 | (163,168) | (157,730) | (5,438) | 6,135,625 | (3,792,291) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2018-02 | (36) | 36 | |||||||
Cumulative effect of adoption of ASU | Accounting Standards Update 2016-01 | 0 | 0 | |||||||
Balance at beginning of period at Mar. 31, 2018 | 775,000 | 2,206 | 2,289,497 | (85,216) | (88,906) | 3,690 | 6,076,294 | (3,793,386) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased | (1,512) | ||||||||
Shares reissued | (2,607) | 2,607 | |||||||
Share-based compensation expense | 8,743 | ||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustment | (68,824) | (68,788) | |||||||
Foreign currency translation adjustment | (9,129) | (9,128) | |||||||
Net income | 103,514 | 103,514 | |||||||
Preferred share dividends | (10,656) | ||||||||
Common share dividends | (33,563) | ||||||||
Balance at end of period at Jun. 30, 2018 | 5,253,005 | 775,000 | 2,206 | 2,295,633 | (163,168) | (157,730) | (5,438) | 6,135,625 | (3,792,291) |
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 period 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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased | (9,414) | ||||||||
Shares reissued | (20,058) | 21,791 | |||||||
Share-based compensation expense | 15,067 | ||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustment | 328,036 | 328,036 | |||||||
Foreign currency translation adjustment | 5,219 | 5,219 | |||||||
Net income | 285,828 | 285,828 | |||||||
Preferred share dividends | (21,313) | ||||||||
Common share dividends | (68,750) | ||||||||
Balance at end of period at Jun. 30, 2019 | 5,566,477 | 775,000 | 2,206 | 2,303,592 | 156,145 | 159,671 | (3,526) | 6,108,577 | (3,779,043) |
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 period at Mar. 31, 2019 | 775,000 | 2,206 | 2,296,639 | 29,096 | 35,178 | (6,082) | 5,976,603 | (3,779,388) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Shares repurchased | (411) | ||||||||
Shares reissued | (756) | 756 | |||||||
Share-based compensation expense | 7,709 | ||||||||
Unrealized gains (losses) arising during the period, net of reclassification adjustment | 124,493 | 124,493 | |||||||
Foreign currency translation adjustment | 2,556 | ||||||||
Net income | 177,043 | 177,043 | |||||||
Preferred share dividends | (10,656) | ||||||||
Common share dividends | (34,413) | ||||||||
Balance at end of period at Jun. 30, 2019 | $ 5,566,477 | $ 775,000 | $ 2,206 | $ 2,303,592 | $ 156,145 | $ 159,671 | $ (3,526) | $ 6,108,577 | $ (3,779,043) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 285,828 | $ 176,719 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Net investment (gains) losses | (33,996) | 54,002 |
Net realized and unrealized gains on other investments | (38,128) | (26,876) |
Amortization of fixed maturities | 8,592 | 15,642 |
Interest in income of equity method investments | (4,853) | (1,891) |
Amortization of value of business acquired | 20,298 | 110,517 |
Other amortization and depreciation | 41,444 | 22,680 |
Share-based compensation expense, net of cash payments | 9,100 | 11,707 |
Changes in: | ||
Accrued interest receivable | (2,244) | (1,839) |
Reinsurance recoverable balances on unpaid and paid losses | (146,353) | (283,733) |
Deferred acquisition costs | (91,193) | (240,320) |
Prepaid reinsurance premiums | (279,659) | (361,482) |
Reserve for losses and loss expenses | (21,446) | 118,803 |
Unearned premiums | 869,640 | 991,992 |
Insurance and reinsurance balances, net | (580,450) | (654,090) |
Other items | (53,163) | 25,718 |
Net cash used in operating activities | (16,583) | (42,451) |
Cash flows from investing activities: | ||
Fixed maturities | (5,014,725) | (4,910,021) |
Equity securities | (26,971) | (49,498) |
Mortgage loans | (95,906) | (60,195) |
Other investments | (141,525) | (57,477) |
Short-term investments | (100,936) | (239,313) |
Proceeds from the sale of: | ||
Fixed maturities | 3,796,747 | 4,452,631 |
Equity securities | 2,456 | 219,916 |
Other investments | 163,773 | 91,946 |
Short-term investments | 205,607 | 101,510 |
Proceeds from redemption of fixed maturities | 569,922 | 706,487 |
Proceeds from redemption of short-term investments | 7,571 | 30,572 |
Proceeds from the repayment of mortgage loans | 486 | 40,741 |
Purchase of other assets | (32,747) | (13,043) |
Net cash provided by (used in) investing activities | (666,248) | 314,256 |
Cash flows from financing activities: | ||
Taxes paid on withholding shares | (9,414) | (8,676) |
Dividends paid - common shares | (69,948) | (68,172) |
Dividends paid - preferred shares | (21,313) | (21,313) |
Net proceeds from issuance of senior notes | 296,334 | 0 |
Redemption of senior notes | (250,000) | 0 |
Net cash used in financing activities | (54,341) | (98,161) |
Effect of exchange rate changes on foreign currency cash, cash equivalents, and restricted cash | 1,866 | (10,737) |
Increase (decrease) in cash, cash equivalents, and restricted cash | (735,306) | 162,907 |
Cash, cash equivalents, and restricted cash - beginning of period | 1,830,020 | 1,363,786 |
Cash, cash equivalents, and restricted cash - end of period | 1,094,714 | 1,526,693 |
Supplemental disclosures of cash flow information: | ||
Income taxes paid | 13,405 | 7,350 |
Interest paid | $ 31,438 | $ 32,550 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) - Syndicate 2007 $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Consideration for RITC | $ 819 |
Transfer of securities | $ 600 |
BASIS OF PRESENTATION AND SIGNI
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES | Basis of Presentation These unaudited Consolidated Financial Statements (the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the U.S. Securities and Exchange Commission's ("SEC") instructions to Form 10-Q and Article 10 of Regulation S-X and include AXIS Capital Holdings Limited ("AXIS Capital") and its subsidiaries (the "Company"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and related notes included in AXIS Capital's Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity. Tabular dollar and share amounts are in thousands, except per share amounts. All amounts are reported in U.S. dollars. Significant Accounting Policies There was no notable change to the Company's significant accounting policies subsequent to its Annual Report on Form 10-K for the year ended December 31, 2018 . New Accounting Standards Adopted in 2019 Leases Effective January 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic 842)", which provides a new comprehensive model for lease accounting. Topic 842 requires 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. The adoption of this standard resulted in the recognition of lease liabilities and right-of-use assets of $144 million in the Company's consolidated balance sheet at March 31, 2019 , related to office property and equipment leases. In addition, the Company adopted ASU 2018-11, "Leases (Topic 842) - Targeted Improvements ", which provides an additional (and optional) transition method to adopt the new lease guidance. Under the alternative transition method, the Company's reporting for the comparative periods presented in its financial statements will be in accordance with the pre-effective date lease accounting requirements (Topic 840). The Company also elected the package of practical expedients permitted under the transition guidance of Topic 842, which were elected as a package and applied consistently to all leases. At the adoption date, the package of practical expedients permitted 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 made an accounting policy election to account for non-lease components separately from lease components. As a result, the non-lease components associated with the Company's leases are not included in the lease liabilities and right-of-use assets in the Company's consolidated balance at June 30, 2019 . Further, the Company made an accounting policy election not to record office property and equipment leases with an initial term of 12 months or less (short-term) in the Company's consolidated balance sheets. For the six months ended June 30, 2019 , the Company recognized expense for short-term leases of $0.8 million in the Company's consolidated statements of operations. The adoption of this guidance did not impact the Company's retained earnings or liquidity and did not have a material impact on its results of operations. Premium Amortization on Purchased Callable Debt Securities Effective January 1, 2019, the Company adopted 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 adoption of this guidance did not impact the Company's results of operations, financial condition or liquidity. Changes to Disclosures on Fair Value Measurement Effective January 1, 2019, the Company adopted ASU 2018-13 "Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement " which aims to improve the effectiveness of fair value measurement disclosures. The adoption of this guidance did not impact the Company's results of operations, financial condition or liquidity. Recently Issued Accounting Standards Not Yet Adopted 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 Company's insurance and reinsurance premium balances receivable and its reinsurance recoverable on unpaid and paid losses and loss expenses are its most significant financial assets within the scope of ASU 2016-13. The guidance requires financial assets 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 cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The Company will also be impacted by the targeted changes to the impairment model for available for sale securities introduced in ASU 2016-13. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. This guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its results of operations, financial condition and liquidity. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2019 | |
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, and discontinued lines - Novae. 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, and discontinued lines - Novae. The following tables present the underwriting results of the Company's reportable segments, as well as the carrying values of allocated goodwill and intangible assets: 2019 2018 Three months ended and at June 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 968,325 $ 679,435 $ 1,647,760 $ 1,026,644 $ 624,181 $ 1,650,825 Net premiums written 591,909 478,412 1,070,321 598,179 402,276 1,000,455 Net premiums earned 537,260 586,347 1,123,607 577,271 608,277 1,185,548 Other insurance related income (losses) (695 ) 3,620 2,925 1,214 2,516 3,730 Net losses and loss expenses (308,703 ) (363,760 ) (672,463 ) (328,773 ) (377,868 ) (706,641 ) Acquisition costs (111,655 ) (130,708 ) (242,363 ) (90,864 ) (141,088 ) (231,952 ) General and administrative expenses (104,898 ) (28,149 ) (133,047 ) (102,369 ) (32,590 ) (134,959 ) Underwriting income $ 11,309 $ 67,350 78,659 $ 56,479 $ 59,247 115,726 Net investment income 137,949 109,960 Net investment gains (losses) 21,225 (45,093 ) Corporate expenses (32,348 ) (30,254 ) Foreign exchange gains 12,381 44,099 Interest expense and financing costs (15,607 ) (17,098 ) Transaction and reorganization expenses (3,276 ) (18,772 ) Amortization of value of business acquired (7,194 ) (53,407 ) Amortization of intangible assets (2,912 ) (4,029 ) Income before income taxes and interest in income of equity method investments $ 188,877 $ 101,132 Net losses and loss expenses ratio 57.5 % 62.0 % 59.8 % 57.0 % 62.1 % 59.6 % Acquisition cost ratio 20.8 % 22.3 % 21.6 % 15.7 % 23.2 % 19.6 % General and administrative expense ratio 19.5 % 4.8 % 14.7 % 17.7 % 5.4 % 13.9 % Combined ratio 97.8 % 89.1 % 96.1 % 90.4 % 90.7 % 93.1 % Total intangible assets $ 353,428 $ — $ 353,428 $ 450,073 $ — $ 450,073 2019 2018 Six months ended and at June 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 1,819,421 $ 2,411,565 $ 4,230,986 $ 1,907,492 $ 2,406,128 $ 4,313,620 Net premiums written 1,121,149 1,726,232 2,847,381 1,146,071 1,840,255 2,986,326 Net premiums earned 1,094,022 1,163,797 2,257,819 1,157,330 1,195,620 2,352,950 Other insurance related income 1,046 8,806 9,852 1,833 8,502 10,335 Net losses and loss expenses (622,479 ) (714,012 ) (1,336,491 ) (650,312 ) (717,674 ) (1,367,986 ) Acquisition costs (229,430 ) (273,351 ) (502,781 ) (178,193 ) (283,019 ) (461,212 ) General and administrative expenses (210,932 ) (60,988 ) (271,920 ) (204,738 ) (69,886 ) (274,624 ) Underwriting income $ 32,227 $ 124,252 156,479 $ 125,920 $ 133,543 259,463 Net investment income 245,254 210,961 Net investment gains (losses) 33,996 (59,923 ) Corporate expenses (68,566 ) (60,425 ) Foreign exchange gains 5,325 6,239 Interest expense and financing costs (31,502 ) (33,861 ) Transaction and reorganization expenses (18,096 ) (31,825 ) Amortization of value of business acquired (20,298 ) (110,517 ) Amortization of intangible assets (5,914 ) (6,811 ) Income before income taxes and interest in income of equity method investments $ 296,678 $ 173,301 Net losses and loss expenses ratio 56.9 % 61.4 % 59.2 % 56.2 % 60.0 % 58.1 % Acquisition cost ratio 21.0 % 23.5 % 22.3 % 15.4 % 23.7 % 19.6 % General and administrative expense ratio 19.2 % 5.2 % 15.0 % 17.7 % 5.8 % 14.3 % Combined ratio 97.1 % 90.1 % 96.5 % 89.3 % 89.5 % 92.0 % Total intangible assets $ 353,428 $ — $ 353,428 $ 450,073 $ — $ 450,073 |
INVESTMENTS
INVESTMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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 cost Gross unrealized gains Gross unrealized losses Fair value Non-credit OTTI in AOCI (5) At June 30, 2019 Fixed maturities U.S. government and agency $ 2,288,204 $ 30,488 $ (1,265 ) $ 2,317,427 $ — Non-U.S. government 539,588 6,959 (8,723 ) 537,824 — Corporate debt 4,850,141 114,591 (19,147 ) 4,945,585 — Agency RMBS (1) 1,669,160 24,127 (6,375 ) 1,686,912 — CMBS (2) 1,150,370 34,613 (715 ) 1,184,268 — Non-Agency RMBS 55,985 1,308 (1,313 ) 55,980 (740 ) ABS (3) 1,600,846 5,871 (5,946 ) 1,600,771 — Municipals (4) 189,480 4,828 (120 ) 194,188 — Total fixed maturities $ 12,343,774 $ 222,785 $ (43,604 ) $ 12,522,955 $ (740 ) 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 ) (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 unrealized gains Gross unrealized losses Fair value At June 30, 2019 Equity securities Common stocks $ 695 $ 21 $ (459 ) $ 257 Exchange-traded funds 213,909 61,531 (2,171 ) 273,269 Bond mutual funds 163,291 — (3,410 ) 159,881 Total equity securities $ 377,895 $ 61,552 $ (6,040 ) $ 433,407 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 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 3(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 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 June 30, 2019 Maturity Due in one year or less $ 388,837 $ 388,997 3.1 % Due after one year through five years 5,169,170 5,237,935 41.8 % Due after five years through ten years 1,921,131 1,967,360 15.7 % Due after ten years 388,275 400,732 3.2 % 7,867,413 7,995,024 63.8 % Agency RMBS 1,669,160 1,686,912 13.5 % CMBS 1,150,370 1,184,268 9.5 % Non-Agency RMBS 55,985 55,980 0.4 % ABS 1,600,846 1,600,771 12.8 % Total $ 12,343,774 $ 12,522,955 100.0 % 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 % 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 June 30, 2019 Fixed maturities U.S. government and agency $ 111,237 $ (1,085 ) $ 174,271 $ (180 ) $ 285,508 $ (1,265 ) Non-U.S. government 130,187 (6,343 ) 111,035 (2,380 ) 241,222 (8,723 ) Corporate debt 479,376 (10,405 ) 484,354 (8,742 ) 963,730 (19,147 ) Agency RMBS 557,096 (6,256 ) 66,210 (119 ) 623,306 (6,375 ) CMBS 18,034 (27 ) 136,832 (688 ) 154,866 (715 ) Non-Agency RMBS 5,845 (973 ) 15,760 (340 ) 21,605 (1,313 ) ABS 400,246 (3,609 ) 487,791 (2,337 ) 888,037 (5,946 ) Municipals 9,980 (120 ) — — 9,980 (120 ) Total fixed maturities $ 1,712,001 $ (28,818 ) $ 1,476,253 $ (14,786 ) $ 3,188,254 $ (43,604 ) At December 31, 2018 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 ) Fixed Maturities At June 30, 2019 , 1,614 fixed maturities ( 2018 : 3,599 ) were in an unrealized loss position of $44 million ( 2018 : $215 million ), of which $12 million ( 2018 : $49 million ) was related to securities below investment grade or not rated. At June 30, 2019 , 958 fixed maturities ( 2018 : 1,656 ) had been in a continuous unrealized loss position for twelve months or greater and had a fair value of $1,712 million ( 2018 : $3,570 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 June 30, 2019 , and were expected to recover in value as the securities approach maturity. At June 30, 2019 , 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: June 30, 2019 December 31, 2018 Carrying value % of Total Carrying value % of Total Mortgage Loans held-for-investment: Commercial $ 394,179 100 % $ 298,650 100 % Total Mortgage Loans held-for-investment $ 394,179 100 % $ 298,650 100 % 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 2.1 x and weighted average loan-to-value ratios of less than 57% . At June 30, 2019 , there are 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 June 30, 2019 Long/short equity funds $ 30,526 4 % Annually 60 days Multi-strategy funds 165,123 21 % Quarterly, Semi-annually 60-90 days Direct lending funds 273,864 34 % n/a n/a Private equity funds 60,285 8 % n/a n/a Real estate funds 134,763 17 % n/a n/a CLO-Equities 17,798 1 % n/a n/a Other privately held investments 28,452 4 % n/a n/a Overseas deposits 91,253 11 % n/a n/a Total other investments $ 802,064 100 % At December 31, 2018 Long/short equity funds $ 26,779 3 % Annually 60 days Multi-strategy funds 167,819 22 % Quarterly, Semi-annually, Annually 45-95 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 % 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 primarily includes funds of hedge funds which invest in a large pool of hedge funds across a diversified range of hedge fund strategies. • 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 the six months ended June 30, 2019 and 2018 , neither of these restrictions impacted the Company's redemption requests. At June 30, 2019 , $63 million ( 2018 : $27 million ), representing 32% ( 2018 : 14% ) of total hedge funds, relate to holdings where the Company is still within the lockup period. The expiration of these lockup periods range from October 2020 to March 2022. At June 30, 2019 , the Company had $193 million ( 2018 : $210 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 June 30, 2019 , the Company had $39 million ( 2018 : $84 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 June 30, 2019 , the Company had $100 million ( 2018 : $147 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 June 30, 2019 , the Company had $15 million ( 2018 : $16 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 June 30, 2019 , 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 and 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 that is required to be included in the Company's consolidated financial statements. 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. e) Net Investment Income Net investment income was derived from the following sources: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Fixed maturities $ 97,370 $ 88,320 $ 188,752 $ 172,279 Other investments 31,232 14,541 38,128 28,246 Equity securities 3,197 3,158 5,525 4,916 Mortgage loans 3,689 3,357 6,752 6,483 Cash and cash equivalents 8,138 5,627 13,940 9,779 Short-term investments 1,108 1,645 5,002 2,520 Gross investment income 144,734 116,648 258,099 224,223 Investment expenses (6,785 ) (6,688 ) (12,845 ) (13,262 ) Net investment income $ 137,949 $ 109,960 $ 245,254 $ 210,961 f) Net Investment Gains (Losses) The following table provides an analysis of net investment gains (losses): Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Gross realized investment gains Fixed maturities and short-term investments $ 18,971 $ 5,761 $ 29,409 $ 37,389 Equity securities 154 1,147 1,598 18,662 Gross realized investment gains 19,125 6,908 31,007 56,051 Gross realized investment losses Fixed maturities and short-term investments (9,978 ) (44,442 ) (30,257 ) (87,977 ) Equity securities (29 ) — (122 ) (1,234 ) Gross realized investment losses (10,007 ) (44,442 ) (30,379 ) (89,211 ) Net OTTI recognized in net income (834 ) (1,674 ) (4,870 ) (2,088 ) Change in fair value of investment derivatives (1) (204 ) 5,134 (2,305 ) 7,157 Net unrealized gains (losses) on equity securities 13,145 (11,019 ) 40,543 (31,832 ) Net investment gains (losses) $ 21,225 $ (45,093 ) $ 33,996 $ (59,923 ) (1) Refer to Note 5 ' Derivative Instruments'. The following table summarizes the OTTI recognized in net income by asset class: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Fixed maturities: Non-U.S. government $ — $ 22 $ 60 $ 22 Corporate debt 834 1,652 4,810 2,066 Total OTTI recognized in net income $ 834 $ 1,674 $ 4,870 $ 2,088 The following table provides a roll forward of the credit losses ("credit loss table") before income taxes, for which a component of the OTTI charge was recognized in AOCI: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Balance at beginning of period $ 472 $ 1,484 $ 510 $ 1,494 Credit impairments recognized on securities not previously impaired — — — — Additional credit impairments recognized on securities previously impaired — — — — Change in timing of future cash flows on securities previously impaired — — — — Intent to sell of securities previously impaired — — — — Securities sold/redeemed/matured (79 ) (12 ) (117 ) (22 ) Balance at end of period $ 393 $ 1,472 $ 393 $ 1,472 g) Reverse Repurchase Agreements At June 30, 2019 , the Company held no ( 2018 : $ 189 million ) 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% |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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 as 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. The 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, the fair values of 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. I n 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 CLOs, 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. I n this event, the fair values of these securities are classified as Level 3. Municipals Municipals comprise revenue and general obligation bonds issued by U.S. domiciled state and municipal entities. The fair values of these securities are determined using spreads obtained from the new issue market, trade prices and broker-dealers quotes. As the significant inputs used to price these securities are observable market inputs, the fair values of municipals are classified as Level 2. Equity Securities Equity securities include common stocks, exchange-traded funds and bond mutual funds. As the fair values of common stocks and exchange-traded funds are based on unadjusted quoted market prices in active markets, the fair value of these securities are classified as Level 1. As bond mutual funds have daily liquidity, 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 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. As the significant inputs used to price this security are unobservable, the fair value of the indirect investment in CLO-Equities is classified as Level 3. 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 for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At June 30, 2019 Assets Fixed maturities U.S. government and agency $ 2,281,604 $ 35,823 $ — $ — $ 2,317,427 Non-U.S. government — 537,824 — — 537,824 Corporate debt — 4,906,448 39,137 — 4,945,585 Agency RMBS — 1,686,912 — — 1,686,912 CMBS — 1,174,376 9,892 — 1,184,268 Non-Agency RMBS — 55,980 — — 55,980 ABS — 1,600,280 491 — 1,600,771 Municipals — 194,188 — — 194,188 2,281,604 10,191,831 49,520 — 12,522,955 Equity securities Common stocks 257 — — — 257 Exchange-traded funds 273,269 — — — 273,269 Bond mutual funds — 159,881 — — 159,881 273,526 159,881 — — 433,407 Other investments Hedge funds (1) — — — 195,649 195,649 Direct lending funds — — — 273,864 273,864 Private equity funds — — — 60,285 60,285 Real estate funds — — — 134,763 134,763 Other privately held investments — — 28,452 — 28,452 CLO-Equities — — 17,798 — 17,798 Overseas deposits — 91,253 — — 91,253 — 91,253 46,250 664,561 802,064 Short-term investments — 32,421 — — 32,421 Other assets Derivative instruments (refer to Note 5) — 863 — — 863 Total Assets $ 2,555,130 $ 10,476,249 $ 95,770 $ 664,561 $ 13,791,710 Liabilities Derivative instruments (refer to Note 5) $ — $ 2,686 $ 10,262 $ — $ 12,948 Cash settled awards (refer to Note 8) — 12,946 — — 12,946 Total Liabilities $ — $ 15,632 $ 10,262 $ — $ 25,894 (1) Includes Long/short equity and Multi-strategy funds. Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 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 5) — 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 5) $ — $ 4,223 $ 10,299 $ — $ 14,522 Cash settled awards (refer to Note 8) — 20,648 — — 20,648 Total Liabilities $ — $ 24,871 $ 10,299 $ — $ 35,170 (1) Includes Long/short equity and Multi-strategy funds. The following table quantifies the significant unobservable inputs used in estimating fair values at June 30, 2019 of investments classified as Level 3 in the fair value hierarchy. Fair value Valuation technique Unobservable input Range Weighted average Other investments - CLO-Equities $ 17,798 Discounted cash flow Default rates 3.0% 3.0% Loss severity rate 35.0% 35.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years Other investments - Other privately held investments $ 28,452 Discounted cash flow Discount rate 3.0% 3.0% Derivatives - Other underwriting-related derivatives $ (10,262 ) Discounted cash flow Discount rate 1.9% 1.9% 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-Equities 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. 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 use 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 tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening balance Transfers into Level 3 Transfers out of Level 3 Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ distributions Closing balance Change in unrealized investment gains/(losses) (3) Three months ended June 30, 2019 Fixed maturities Corporate debt $ 41,125 $ — $ — $ (763 ) $ 309 $ — $ (31 ) $ (1,503 ) $ 39,137 $ — CMBS 11,145 — — — 21 — — (1,274 ) 9,892 — ABS 12,043 — (11,564 ) — 12 — — — 491 — 64,313 — (11,564 ) (763 ) 342 — (31 ) (2,777 ) 49,520 — Other investments Other privately held investments 47,685 — — 14,194 — — (33,427 ) — 28,452 767 CLO - Equities 18,022 — — 833 — — — (1,057 ) 17,798 833 65,707 — — 15,027 — — (33,427 ) (1,057 ) 46,250 1,600 Total assets $ 130,020 $ — $ (11,564 ) $ 14,264 $ 342 $ — $ (33,458 ) $ (3,834 ) $ 95,770 $ 1,600 Other liabilities Derivative instruments $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Total liabilities $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Six months ended June 30, 2019 Fixed maturities Corporate debt $ 49,012 $ — $ — $ (1,459 ) $ 933 $ — $ (5,578 ) $ (3,771 ) $ 39,137 $ — CMBS 19,134 — (4,767 ) — 164 — — (4,639 ) 9,892 — ABS 18,533 — (27,966 ) — 174 9,750 — — 491 — 86,679 — (32,733 ) (1,459 ) 1,271 9,750 (5,578 ) (8,410 ) 49,520 — Other investments Other privately held investments 44,518 — — 14,861 — 2,500 (33,427 ) — 28,452 1,434 CLO - Equities 21,271 — — 1,248 — — — (4,721 ) 17,798 1,248 65,789 — — 16,109 — 2,500 (33,427 ) (4,721 ) 46,250 2,682 Total assets $ 152,468 $ — $ (32,733 ) $ 14,650 $ 1,271 $ 12,250 $ (39,005 ) $ (13,131 ) $ 95,770 $ 2,682 Other liabilities Derivative instruments $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) Total liabilities $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) (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. 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) Three months ended June 30, 2018 Fixed maturities Corporate debt $ 43,471 $ 1,589 $ — $ (1 ) $ (388 ) $ 3,185 $ (3,218 ) $ (2,085 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 43,471 3,525 — (1 ) (387 ) 20,300 (3,218 ) (2,085 ) 61,605 — Other investments Other privately held investments 48,787 — — (1,174 ) — — — — 47,613 (1,174 ) CLO - Equities 28,556 — — 3,068 — — — (5,471 ) 26,153 3,068 77,343 — — 1,894 — — — (5,471 ) 73,766 1,894 Other assets Insurance-linked securities 25,000 — — — — — — (25,000 ) — — 25,000 — — — — — — (25,000 ) — — Total assets $ 145,814 $ 3,525 $ — $ 1,893 $ (387 ) $ 20,300 $ (3,218 ) $ (32,556 ) $ 135,371 $ 1,894 Other liabilities Derivative instruments $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Total liabilities $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Six months ended June 30, 2018 Fixed maturities Corporate debt $ 52,897 $ 1,589 $ (4,279 ) $ (119 ) $ 1,015 $ 3,185 $ (5,754 ) $ (5,981 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 52,897 3,525 (4,279 ) (119 ) 1,016 20,300 (5,754 ) (5,981 ) 61,605 — Other investments Other privately held investments 46,430 — — (428 ) — 3,111 (1,500 ) — 47,613 (428 ) CLO - Equities 31,413 — — 4,684 — — — (9,944 ) 26,153 4,684 77,843 — — 4,256 — 3,111 (1,500 ) (9,944 ) 73,766 4,256 Other assets Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 3,525 $ (4,279 ) $ 4,047 $ 1,016 $ 23,411 $ (7,254 ) $ (40,925 ) $ 135,371 $ 4,256 Other liabilities Derivative instruments $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) Total liabilities $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) Transfers into Level 3 from Level 2 There were no transfers into Level 3 from Level 2 made during the three and six months ended June 30, 2019 . The transfers into Level 3 from Level 2 made during the three and six months ended June 30, 2018 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 the three and six months ended June 30, 2019 and 2018 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 ("NAVs") 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. For the six months ended June 30, 2019 , funds reported on a lag represented 64% (2018: 61% ) 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 June 30, 2019 , 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 June 30, 2019 , 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 June 30, 2019 , senior notes are recorded at amortized cost with a carrying value of $1,388 million ( 2018 : $1,342 million ) and a fair value of $1,443 million ( 2018 : $1,334 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. |
DERIVATIVE INSTRUMENTS
DERIVATIVE INSTRUMENTS | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 December 31, 2018 Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 189,811 $ 147 $ 1,074 $ 79,336 $ 262 $ 531 Interest rate swaps — — — 150,000 — 1,116 Relating to underwriting portfolio: Foreign exchange forward contracts 534,811 716 1,612 737,419 7,975 2,576 Other underwriting-related contracts 85,000 — 10,262 85,000 — 10,299 Total derivatives $ 863 $ 12,948 $ 8,237 $ 14,522 (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 amounts paid or received 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: June 30, 2019 December 31, 2018 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 2,577 $ (1,714 ) $ 863 $ 11,967 $ (3,730 ) $ 8,237 Derivative liabilities $ 14,662 $ (1,714 ) $ 12,948 $ 18,252 $ (3,730 ) $ 14,522 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. Refer to Note 3 '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 insurance and reinsurance 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 insurance and reinsurance 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. 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 net income Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ 620 $ 2,515 $ 1,372 $ 1,323 Interest rate swaps Net investment gains (losses) (824 ) 2,619 (3,677 ) 5,833 Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 802 (7,809 ) (9,715 ) (138 ) Other underwriting-related contracts Other insurance related income (losses) 271 647 618 1,548 Total $ 869 $ (2,028 ) $ (11,402 ) $ 8,566 |
RESERVE FOR LOSSES AND LOSS EXP
RESERVE FOR LOSSES AND LOSS EXPENSES | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
RESERVE FOR LOSSES AND LOSS EXPENSES | Reserve Roll-Forward The following table presents a reconciliation of the Company's beginning and ending net reserve for unpaid losses and loss expenses: Six months ended June 30, 2019 2018 Gross reserve for losses and loss expenses, beginning of period $ 12,280,769 $ 12,997,553 Less reinsurance recoverable on unpaid losses, beginning of period (3,501,669 ) (3,159,514 ) Net reserve for unpaid losses and loss expenses, beginning of period 8,779,100 9,838,039 Net incurred losses and loss expenses related to: Current year 1,374,784 1,482,409 Prior years (38,293 ) (114,423 ) 1,336,491 1,367,986 Net paid losses and loss expenses related to: Current year (132,111 ) (186,576 ) Prior years (1,304,413 ) (1,233,793 ) (1,436,524 ) (1,420,369 ) Foreign exchange and other 10,832 (985,628 ) Net reserve for unpaid losses and loss expenses, end of period 8,689,899 8,800,028 Reinsurance recoverable on unpaid losses, end of period 3,564,812 3,152,706 Gross reserve for losses and loss expenses, end of period $ 12,254,711 $ 11,952,734 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 the six months ended June 30, 2019 , the Company recognized net losses and loss expenses of $36 million ( 2018 : $73 million ) 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 Limited, 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 June 30, 2018 , foreign exchange and other included a reduction in reserves for losses and loss expenses of $819 million related to this transaction. Prior Year Development The Company's net favorable 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 net prior year reserve development by segment: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Insurance $ 21,326 $ 24,294 $ 28,240 $ 47,068 Reinsurance 2,295 35,822 10,053 67,355 Total $ 23,621 $ 60,116 $ 38,293 $ 114,423 The following tables 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 Short-tail business Short-tail business includes the underlying exposures in property and other, marine and aviation reserve classes in the insurance segment, and the property and other reserve class in the reinsurance segment. For the three months ended June 30, 2019 , these reserve classes recognized net adverse prior year reserve development of $19 million including $30 million of net adverse prior year reserve development recognized by the reinsurance property and other reserve class, partially offset by net favorable prior year reserve development of $6 million contributed by the insurance property and other reserve class and net favorable prior year reserve development of $5 million contributed by the insurance marine reserve class. For the six months ended June 30, 2019 , these reserve classes recognized net adverse prior year reserve development of $52 million including $59 million of net adverse prior year reserve development recognized by the reinsurance property and other reserve class and $16 million of net adverse prior year reserve development recognized by the insurance property and other reserve class, partially offset by net favorable prior year reserve development of $22 million contributed by the insurance marine reserve class. For the three and six months ended June 30, 2018 , these reserve classes contributed net favorable prior year reserve development of $43 million and $81 million , respectively, reflecting the recognition of better than expected loss emergence. Medium-tail business Medium-tail business consists primarily of insurance and reinsurance professional lines reserve classes, insurance credit and political risk reserve class and reinsurance credit and surety reserve class. For the three and six months ended June 30, 2019 , the reinsurance credit and surety reserve class recorded net favorable prior year reserve development of $17 million ( 2018 : $9 million ) and $27 million ( 2018 : $14 million ), respectively, reflecting the recognition of better than expected loss emergence. For the three and six months ended June 30, 2019 , insurance credit and political risk reserve class recorded net favorable prior year reserve development of $7 million and $9 million , respectively, reflecting the recognition of better than expected loss emergence. For the three and six months ended June 30, 2019 , the insurance professional lines reserve class recorded net favorable prior year reserve development of $4 million and $10 million , respectively. For the three and six months ended June 30, 2019 , the reinsurance professional lines reserve class recorded net favorable prior year reserve development of $6 million and $8 million (2018: $8 million ). The net favorable prior year reserve development on these reserve classes continued to reflect generally favorable experience on older accident years as the Company continued to transition to more experience based actuarial methods. Long-tail business Long-tail business consists primarily of insurance and reinsurance liability reserve classes and reinsurance motor reserve classes. For the three and six months ended June 30, 2019 , the reinsurance liability reserve class contributed net favorable prior year reserve development of $11 million ( 2018 : $6 million ) and $23 million ( 2018 : $8 million ), respectively. The net favorable prior year reserve development was due to increased weight given by management to experience based indications on older accident years. For the six months ended June 30, 2018 , the insurance liability reserve class recorded net adverse prior year reserve development of $7 million primarily related to reserve strengthening in the Company's U.S. excess casualty book of business. For the six months ended June 30, 2019 , the reinsurance motor reserve class contributed net favorable prior year reserve development of $11 million ( 2018 : $9 million ). For the three months ended June 30, 2018 , the reinsurance motor reserve class contributed net favorable prior year reserve development of $5 million . The net favorable prior year reserve development was primarily attributable to non proportional treaty business on older accident years. At June 30, 2019 , net reserves for losses and loss expenses included estimated amounts for numerous catastrophe events. The magnitude and/or complexity of losses arising from certain of these events, in particular California Wildfires, Hurricanes Michael and Florence, and Typhoons Jebi and Trami which occurred in 2018 as well as Hurricanes Harvey, Irma and Maria and the California Wildfires which occurred in 2017 inherently increase the level of uncertainty and, therefore, the level of management judgment involved in arriving at the estimated net reserves for losses and loss expenses. As a result, actual losses for these events may ultimately differ materially from the Company's current estimates. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | The following table presents earnings per common share and earnings per diluted common share: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Earnings per common share Net income $ 177,043 $ 103,514 $ 285,828 $ 176,719 Less: Preferred share dividends 10,656 10,656 21,313 21,313 Net income available to common shareholders 166,387 92,858 264,515 155,406 Weighted average common shares outstanding 83,941 83,539 83,834 83,431 Earnings per common share $ 1.98 $ 1.11 $ 3.16 $ 1.86 Earnings per diluted common share Net income available to common shareholders $ 166,387 $ 92,858 $ 264,515 $ 155,406 Weighted average common shares outstanding 83,941 83,539 83,834 83,431 Share-based compensation plans 460 445 504 422 Weighted average diluted common shares outstanding 84,401 83,984 84,338 83,853 Earnings per diluted common share $ 1.97 $ 1.11 $ 3.14 $ 1.85 Weighted average anti-dilutive shares excluded from the dilutive computation 3 158 302 484 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | For the three months ended June 30, 2019 , the Company incurred share-based compensation costs of $13 million ( 2018 : $14 million ) related to share-settled restricted stock units and cash-settled restricted stock units. In addition, the Company recorded associated tax benefits of $2 million ( 2018 : $3 million ). For the six months ended June 30, 2019 , the Company incurred share-based compensation costs of $29 million (2018: $29 million ) and recorded associated tax benefits of $4 million (2018: $4 million ). During the six months ended June 30, 2019 , the fair value of share-settled restricted stock units and cash-settled restricted stock units that vested was $49 million ( 2018 : $47 million ). At June 30, 2019 , there was $105 million of unrecognized share-based compensation costs ( 2018 : $121 million ) which are expected to be recognized over the weighted average period of 2.7 years ( 2018 : 2.8 years ). Share-Settled Awards The following table provides an activity summary of the Company's share-settled restricted stock units for the six months ended June 30, 2019 : Share-Settled Performance Vesting Restricted Stock Units Share-Settled Service Based Restricted Stock Units 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 units - beginning of period 232 $ 54.54 1,411 $ 54.12 Granted 127 54.70 512 54.70 Vested (61 ) 53.82 (463 ) 54.20 Forfeited — — (126 ) 54.57 Nonvested restricted stock units - end of period 298 $ 54.76 1,334 $ 54.27 (1) Fair value is based on the closing price of the Company's common shares on the grant date. Cash-Settled awards The following table provides an activity summary of the Company's cash-settled restricted stock units for the six months ended June 30, 2019 : Cash-Settled Performance Vesting Restricted Stock Units Cash-Settled Service Based Restricted Stock Units Number of restricted stock units Number of restricted stock units Nonvested restricted stock units - beginning of period 27 932 Granted — 354 Vested (12 ) (327 ) Forfeited — (62 ) Nonvested restricted stock units - end of period 15 897 At June 30, 2019 , the liability for cash-settled restricted stock units, included in other liabilities in the consolidated balance sheets, was $13 million (2018: $13 million ). |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | The following table presents changes in common shares issued and outstanding: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Shares issued, balance at beginning of period 176,580 176,580 176,580 176,580 Shares issued — — — — Total shares issued at end of period 176,580 176,580 176,580 176,580 Treasury shares, balance at beginning of period (92,646 ) (93,062 ) (92,994 ) (93,419 ) Shares repurchased (7 ) (26 ) (164 ) (175 ) Shares reissued 20 64 525 570 Total treasury shares at end of period (92,633 ) (93,024 ) (92,633 ) (93,024 ) Total shares outstanding 83,947 83,556 83,947 83,556 Dividends In the three months ended June 30, 2019 , the total dividends declared per common share were $0.40 , paid in July 2019 ( 2018 : $0.39 , paid in July 2018). In the six months ended June 30, 2019 , the total cash dividends declared per common share were $0.80 per share, paid in April 2019 and July 2019 ( 2018 : $0.78 paid in April 2018 and July 2018). In the three months ended June 30, 2019 , the total dividends declared on Series D preferred shares were $0.34375 per share, payable in September 2019 ( 2018 : $0.34375 , paid in September 2018). In the six months ended June 30, 2019 , the total dividends declared on Series D preferred shares were $0.68750 per share, paid in June 2019 and payable in September 2019 ( 2018 : $0.68750 , paid in June 2018 and September 2018). In the three months ended June 30, 2019 , the total dividends declared on Series E preferred shares were $34.375 per share, paid in July 2019 ( 2018 : $34.375 , paid in July 2018). In the six months ended June 30, 2019 , the total dividends declared on Series E preferred shares were $68.75 per share, paid in April 2019 and July 2019 ( 2018 : $68.75 , paid in April 2018 and July 2018). Treasury Shares The following table presents common share repurchased from shares held in Treasury: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 In the open market: Total shares — — — — Total cost $ — $ — $ — $ — Average price per share (1) $ — $ — $ — $ — From employees: (2) Total shares 7 26 164 175 Total cost $ 411 $ 1,512 $ 9,414 $ 8,676 Average price per share (1) $ 58.34 $ 57.97 $ 57.22 $ 49.56 Total shares repurchased: Total shares 7 26 164 175 Total cost $ 411 $ 1,512 $ 9,414 $ 8,676 Average price per share (1) $ 58.34 $ 57.97 $ 57.22 $ 49.56 (1) Calculated using whole numbers. (2) |
DEBT AND FINANCING ARRANGEMENTS
DEBT AND FINANCING ARRANGEMENTS | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
DEBT AND FINANCING ARRANGEMENTS | a) Senior Notes On April 1, 2019, AXIS Specialty Finance PLC, a 100% owned finance subsidiary, repaid $250 million aggregate principal amount of 2.65% Senior Notes at their stated maturity. On April 3, 2019, AXIS Capital and AXIS Specialty Finance PLC ("AXIS Finance") entered into a first supplemental indenture (the "First Supplemental Indenture") among AXIS Finance, as issuer, AXIS Capital, as guarantor, and The Bank of New York Mellon Trust Company, N.A., as trustee (the "Trustee"), to the senior indenture dated March 13, 2014 (the "Indenture") relating to $250 million aggregate principal amount of 5.15% Senior Notes due 2045 (the " 5.15% Senior Notes") issued by AXIS Finance and fully and unconditionally guaranteed by AXIS Capital. The changes described below were made to permit the 5.15% Senior Notes to qualify as Tier 3 ancillary capital under eligible capital requirements of the Bermuda Monetary Authority. Because this amendment does not materially adversely affect the interests of the holders of the 5.15% Senior Notes, the First Supplemental Indenture was entered into without consent of any holders of the 5.15% Senior Notes. The First Supplemental Indenture relates to the 5.15% Senior Notes only and does not affect any other series of securities issued under the Indenture. Under the terms of the senior indenture, the 5.15% Senior Notes are redeemable at any time at the option of AXIS Finance at a redemption price equal to a make-whole premium or, in the event that, as a result of certain tax law changes, AXIS Finance or AXIS Capital becomes obligated to pay additional amounts with respect to the 5.15% Senior Notes, at par, plus in each case, accrued and unpaid interest. The First Supplemental Indenture limits this optional redemption right to provide that the 5.15% Senior Notes are not redeemable at the option of AXIS Finance on or before March 13, 2017, except in the limited circumstances set forth in the First Supplemental Indenture and prior to maturity unless certain conditions are satisfied. The First Supplemental Indenture also clarifies, for the avoidance of doubt, that the 5.15% Senior Notes are free of encumbrances and that neither the Indenture nor the 5.15% Senior Notes contain any terms or conditions designed to accelerate or induce AXIS Capital or any of its subsidiary’s insolvency or effect similar proceedings. The holders of the 5.15% Senior Notes should note that the 5.15% Senior Notes do not in any way give rise to any rights of set-off against any claims and obligations of AXIS Capital, AXIS Finance or any of AXIS Capital’s regulated operating subsidiaries to any holder or creditor. On June 19, 2019 AXIS Specialty Finance LLC, a 100% owned finance subsidiary, issued $300 million aggregate principal amount of 3.90% senior unsecured notes (the " 3.90% Senior Notes") at an issue price of 99.36% . The net proceeds of the issuance, after consideration of the offering discount and underwriting expenses and commissions, totaled approximately $296 million . Interest on the 3.90% Senior Notes is payable semi-annually in arrears on January 15 and July 15 of each year, beginning on January 15, 2020. Unless previously redeemed, the 3.90% Senior Notes will mature on July 15, 2029. The 3.90% 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 3.90% Senior Notes. AXIS Capital's obligations under this guarantee are unsecured senior obligations and rank equally with all other senior obligations of AXIS Capital. b) Credit Facilities On March 28, 2019, certain of AXIS Capital’s operating subsidiaries (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, 2020.The terms and conditions of the additional $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 obligations outstanding under the $750 Million Facility. In the event of default, Citibank Europe plc 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. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | Legal Proceedings From time to time, the Company is subject to routine legal proceedings, including arbitrations, arising in the ordinary course of business. These legal proceedings generally relate to claims asserted by or against the Company in the ordinary course of insurance or reinsurance operations. Estimated amounts payable under such proceedings are included in the reserve for losses and loss expenses in the consolidated balance sheets. The Company is not party to any material legal proceedings arising outside the ordinary course of business. Investments Refer to Note 3 - 'Investments' for information on the Company's unfunded investment commitments related to the Company's other investment portfolio. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
LEASES | In the ordinary course of business, the Company renews and enters into new leases for office property and equipment, which expire at various dates. At the lease inception date, the Company assesses whether a contract is or contains a lease. At the commencement date, the Company determines the classification of each separate lease component as either a finance lease or an operating lease. The Company's leases are all currently classified as operating leases. For operating leases that have a lease term of more than 12 months, the Company recognizes a lease liability and a right-of-use asset in the Company's consolidated balance sheets at the present value of the lease payments at the lease commencement date. At the commencement date, the Company determines lease terms by assuming the exercise of those renewal options that are deemed to be reasonably certain. The exercise of lease renewal options is at the sole discretion of the Company. As the lease contracts generally do not provide an implicit discount rate, the Company uses its incremental borrowing rate based on the information available at commencement date to determine the present value of lease payments. The incremental borrowing rate is based on a borrowing with a term that is similar to the term of the associated lease. The Company has made an accounting policy election not to include renewal, termination, or purchase options that are not reasonably certain of exercise when determining the term of the borrowing. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Operating lease rentals are expensed on a straight-line basis over the life of the lease beginning on the commencement date. For the three and six months ended June 30, 2019 , the total lease expense was $4 million and $11 million , respectively. The following table summarizes the amounts related to the Company’s total lease expense and the cash flows arising from lease transactions. Three months ended Six months ended June 30, 2019 June 30, 2019 Lease cost: Operating lease expense $ 4,134 $ 11,064 Short-term lease expense (1) 119 765 Sublease income (2) (192 ) (734 ) Total lease expense $ 4,061 $ 11,095 Other information: Operating cash outflows from operating leases $ 6,384 $ 12,920 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Weighted-average remaining lease term - operating leases (3) 8.7 years 8.7 years Weighted-average discount rate - operating lease (4) 4.7 % 4.7 % (1) Short-term lease expense is recognized on a straight-line basis over the lease term. (2) Sublease income largely relates to office property in London, England. (3) Weighted-average remaining lease term was calculated on the basis of the remaining lease term and the lease liability balance for each lease at the reporting date. (4) Weighted-average discount was calculated on the basis of the discount rate for the lease that was used to calculate the lease liability balance for each lease at the reporting date and the remaining balance of the lease payments for each lease at the reporting date. At June 30, 2019 , the scheduled maturity of the Company's operating lease liabilities are expected to be as follows: Expected Cash Flows Remainder of 2019 $ 12,709 2020 21,558 2021 21,366 2022 21,989 2023 17,877 Later years 70,056 Discount (32,298 ) Total discounted operating lease liabilities $ 133,257 The Company's lease for its current office property in Alpharetta, Georgia, expires on December 31, 2019. As a result, the Company executed a 15 year lease for a new office property in Alpharetta, Georgia. The Company is not involved in the construction or design of this office property and will not move into this property until January 1, 2020, the commencement date of the lease. Given that the commencement date is after the balance sheet date, the Company has not reflected this lease in the maturity table above or in the Company's consolidated balance sheets at June 30, 2019 . The total contractual lease costs over the 15 year lease is $40 million . At December 31, 2018, the Company's future minimum lease payments were 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 For the three and six months ended June 30, 2018 , the total lease expense was $8 million and $14 million , respectively. |
TRANSACTION AND REORGANIZATION
TRANSACTION AND REORGANIZATION EXPENSES | 6 Months Ended |
Jun. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
TRANSACTION AND REORGANIZATION EXPENSES | For the three and six months ended months ended June 30, 2019 , transaction and reorganization expenses were $3 million (2018: $19 million ) and $18 million (2018: $32 million ), respectively, related to the Company's 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 Company's accident and health business, together with other initiatives designed to increase efficiency and enhance profitability while delivering a customer-centric operating model. |
OTHER COMPREHENSIVE INCOME (LOS
OTHER COMPREHENSIVE INCOME (LOSS) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | The following table presents the tax effects allocated to each component of other comprehensive income (loss): 2019 2018 Before tax amount Tax (expense) benefit Net of tax amount Before tax amount Tax (expense) benefit Net of Tax Amount Three months ended June 30, Available for sale investments: Unrealized investment gains (losses) arising during the period $ 146,907 $ (15,465 ) $ 131,442 $ (114,842 ) $ 9,562 $ (105,280 ) Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income (8,141 ) 1,192 (6,949 ) 39,100 (2,644 ) 36,456 Unrealized investment gains (losses) arising during the period, net of reclassification adjustment 138,766 (14,273 ) 124,493 (75,742 ) 6,918 (68,824 ) Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 2,556 — 2,556 (9,129 ) — (9,129 ) Total other comprehensive income (loss), net of tax $ 141,322 $ (14,273 ) $ 127,049 $ (84,871 ) $ 6,918 $ (77,953 ) Six months ended June 30, Available for sale investments: Unrealized investment gains (losses) arising during the period $ 353,712 $ (32,061 ) $ 321,651 $ (220,480 ) $ 3,046 $ (217,434 ) Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 5,733 652 6,385 34,987 2,253 37,240 Unrealized investment gains (losses) arising during the period, net of reclassification adjustment 359,445 (31,409 ) 328,036 (185,493 ) 5,299 (180,194 ) Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 5,219 — 5,219 (7,858 ) — (7,858 ) Total other comprehensive income (loss), net of tax $ 364,664 $ (31,409 ) $ 333,255 $ (193,351 ) $ 5,299 $ (188,052 ) The following table presents reclassifications from accumulated other comprehensive income ("AOCI") to net income (loss): Amount reclassified from AOCI (1) Details about AOCI Components Consolidated statement of operations line item that includes reclassification Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ 8,975 $ (37,426 ) $ (863 ) $ (32,899 ) OTTI losses (834 ) (1,674 ) (4,870 ) (2,088 ) Total before tax 8,141 (39,100 ) (5,733 ) (34,987 ) Income tax (expense) benefit (1,192 ) 2,644 (652 ) (2,253 ) Net of tax $ 6,949 $ (36,456 ) $ (6,385 ) $ (37,240 ) (1) Amounts in parentheses are decreases to net income (loss). |
BASIS OF PRESENTATION AND SIG_2
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These unaudited Consolidated Financial Statements (the "financial statements") have been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information and with the U.S. Securities and Exchange Commission's ("SEC") instructions to Form 10-Q and Article 10 of Regulation S-X and include AXIS Capital Holdings Limited ("AXIS Capital") and its subsidiaries (the "Company"). Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. This Quarterly Report on Form 10-Q should be read in conjunction with the financial statements and related notes included in AXIS Capital's Annual Report on Form 10-K for the year ended December 31, 2018 , as filed with the SEC. In the opinion of management, these financial statements reflect all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation of the Company's financial position and results of operations for the periods presented. The results of operations for any interim period are not necessarily indicative of the results for a full year. All inter-company accounts and transactions have been eliminated. To facilitate comparison of information across periods, certain reclassifications have been made to prior year amounts to conform to the current year's presentation. These reclassifications did not impact results of operations, financial condition or liquidity. Tabular dollar and share amounts are in thousands, except per share amounts. All amounts are reported in U.S. dollars. |
New Accounting Standards | Significant Accounting Policies There was no notable change to the Company's significant accounting policies subsequent to its Annual Report on Form 10-K for the year ended December 31, 2018 . New Accounting Standards Adopted in 2019 Leases Effective January 1, 2019, the Company adopted ASU 2016-02, "Leases (Topic 842)", which provides a new comprehensive model for lease accounting. Topic 842 requires 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. The adoption of this standard resulted in the recognition of lease liabilities and right-of-use assets of $144 million in the Company's consolidated balance sheet at March 31, 2019 , related to office property and equipment leases. In addition, the Company adopted ASU 2018-11, "Leases (Topic 842) - Targeted Improvements ", which provides an additional (and optional) transition method to adopt the new lease guidance. Under the alternative transition method, the Company's reporting for the comparative periods presented in its financial statements will be in accordance with the pre-effective date lease accounting requirements (Topic 840). The Company also elected the package of practical expedients permitted under the transition guidance of Topic 842, which were elected as a package and applied consistently to all leases. At the adoption date, the package of practical expedients permitted 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 made an accounting policy election to account for non-lease components separately from lease components. As a result, the non-lease components associated with the Company's leases are not included in the lease liabilities and right-of-use assets in the Company's consolidated balance at June 30, 2019 . Further, the Company made an accounting policy election not to record office property and equipment leases with an initial term of 12 months or less (short-term) in the Company's consolidated balance sheets. For the six months ended June 30, 2019 , the Company recognized expense for short-term leases of $0.8 million in the Company's consolidated statements of operations. The adoption of this guidance did not impact the Company's retained earnings or liquidity and did not have a material impact on its results of operations. Premium Amortization on Purchased Callable Debt Securities Effective January 1, 2019, the Company adopted 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 adoption of this guidance did not impact the Company's results of operations, financial condition or liquidity. Changes to Disclosures on Fair Value Measurement Effective January 1, 2019, the Company adopted ASU 2018-13 "Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement " which aims to improve the effectiveness of fair value measurement disclosures. The adoption of this guidance did not impact the Company's results of operations, financial condition or liquidity. Recently Issued Accounting Standards Not Yet Adopted 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 Company's insurance and reinsurance premium balances receivable and its reinsurance recoverable on unpaid and paid losses and loss expenses are its most significant financial assets within the scope of ASU 2016-13. The guidance requires financial assets 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 cost of the financial asset to present the net carrying value at the amount expected to be collected on the financial asset. The Company will also be impacted by the targeted changes to the impairment model for available for sale securities introduced in ASU 2016-13. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. This guidance is effective for interim and annual periods beginning after December 15, 2019. The Company is currently evaluating the impact of this guidance on its results of operations, financial condition and liquidity. |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 values of allocated goodwill and intangible assets: 2019 2018 Three months ended and at June 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 968,325 $ 679,435 $ 1,647,760 $ 1,026,644 $ 624,181 $ 1,650,825 Net premiums written 591,909 478,412 1,070,321 598,179 402,276 1,000,455 Net premiums earned 537,260 586,347 1,123,607 577,271 608,277 1,185,548 Other insurance related income (losses) (695 ) 3,620 2,925 1,214 2,516 3,730 Net losses and loss expenses (308,703 ) (363,760 ) (672,463 ) (328,773 ) (377,868 ) (706,641 ) Acquisition costs (111,655 ) (130,708 ) (242,363 ) (90,864 ) (141,088 ) (231,952 ) General and administrative expenses (104,898 ) (28,149 ) (133,047 ) (102,369 ) (32,590 ) (134,959 ) Underwriting income $ 11,309 $ 67,350 78,659 $ 56,479 $ 59,247 115,726 Net investment income 137,949 109,960 Net investment gains (losses) 21,225 (45,093 ) Corporate expenses (32,348 ) (30,254 ) Foreign exchange gains 12,381 44,099 Interest expense and financing costs (15,607 ) (17,098 ) Transaction and reorganization expenses (3,276 ) (18,772 ) Amortization of value of business acquired (7,194 ) (53,407 ) Amortization of intangible assets (2,912 ) (4,029 ) Income before income taxes and interest in income of equity method investments $ 188,877 $ 101,132 Net losses and loss expenses ratio 57.5 % 62.0 % 59.8 % 57.0 % 62.1 % 59.6 % Acquisition cost ratio 20.8 % 22.3 % 21.6 % 15.7 % 23.2 % 19.6 % General and administrative expense ratio 19.5 % 4.8 % 14.7 % 17.7 % 5.4 % 13.9 % Combined ratio 97.8 % 89.1 % 96.1 % 90.4 % 90.7 % 93.1 % Total intangible assets $ 353,428 $ — $ 353,428 $ 450,073 $ — $ 450,073 2019 2018 Six months ended and at June 30, Insurance Reinsurance Total Insurance Reinsurance Total Gross premiums written $ 1,819,421 $ 2,411,565 $ 4,230,986 $ 1,907,492 $ 2,406,128 $ 4,313,620 Net premiums written 1,121,149 1,726,232 2,847,381 1,146,071 1,840,255 2,986,326 Net premiums earned 1,094,022 1,163,797 2,257,819 1,157,330 1,195,620 2,352,950 Other insurance related income 1,046 8,806 9,852 1,833 8,502 10,335 Net losses and loss expenses (622,479 ) (714,012 ) (1,336,491 ) (650,312 ) (717,674 ) (1,367,986 ) Acquisition costs (229,430 ) (273,351 ) (502,781 ) (178,193 ) (283,019 ) (461,212 ) General and administrative expenses (210,932 ) (60,988 ) (271,920 ) (204,738 ) (69,886 ) (274,624 ) Underwriting income $ 32,227 $ 124,252 156,479 $ 125,920 $ 133,543 259,463 Net investment income 245,254 210,961 Net investment gains (losses) 33,996 (59,923 ) Corporate expenses (68,566 ) (60,425 ) Foreign exchange gains 5,325 6,239 Interest expense and financing costs (31,502 ) (33,861 ) Transaction and reorganization expenses (18,096 ) (31,825 ) Amortization of value of business acquired (20,298 ) (110,517 ) Amortization of intangible assets (5,914 ) (6,811 ) Income before income taxes and interest in income of equity method investments $ 296,678 $ 173,301 Net losses and loss expenses ratio 56.9 % 61.4 % 59.2 % 56.2 % 60.0 % 58.1 % Acquisition cost ratio 21.0 % 23.5 % 22.3 % 15.4 % 23.7 % 19.6 % General and administrative expense ratio 19.2 % 5.2 % 15.0 % 17.7 % 5.8 % 14.3 % Combined ratio 97.1 % 90.1 % 96.5 % 89.3 % 89.5 % 92.0 % Total intangible assets $ 353,428 $ — $ 353,428 $ 450,073 $ — $ 450,073 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 cost Gross unrealized gains Gross unrealized losses Fair value Non-credit OTTI in AOCI (5) At June 30, 2019 Fixed maturities U.S. government and agency $ 2,288,204 $ 30,488 $ (1,265 ) $ 2,317,427 $ — Non-U.S. government 539,588 6,959 (8,723 ) 537,824 — Corporate debt 4,850,141 114,591 (19,147 ) 4,945,585 — Agency RMBS (1) 1,669,160 24,127 (6,375 ) 1,686,912 — CMBS (2) 1,150,370 34,613 (715 ) 1,184,268 — Non-Agency RMBS 55,985 1,308 (1,313 ) 55,980 (740 ) ABS (3) 1,600,846 5,871 (5,946 ) 1,600,771 — Municipals (4) 189,480 4,828 (120 ) 194,188 — Total fixed maturities $ 12,343,774 $ 222,785 $ (43,604 ) $ 12,522,955 $ (740 ) 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 ) (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 unrealized gains Gross unrealized losses Fair value At June 30, 2019 Equity securities Common stocks $ 695 $ 21 $ (459 ) $ 257 Exchange-traded funds 213,909 61,531 (2,171 ) 273,269 Bond mutual funds 163,291 — (3,410 ) 159,881 Total equity securities $ 377,895 $ 61,552 $ (6,040 ) $ 433,407 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 |
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 June 30, 2019 Maturity Due in one year or less $ 388,837 $ 388,997 3.1 % Due after one year through five years 5,169,170 5,237,935 41.8 % Due after five years through ten years 1,921,131 1,967,360 15.7 % Due after ten years 388,275 400,732 3.2 % 7,867,413 7,995,024 63.8 % Agency RMBS 1,669,160 1,686,912 13.5 % CMBS 1,150,370 1,184,268 9.5 % Non-Agency RMBS 55,985 55,980 0.4 % ABS 1,600,846 1,600,771 12.8 % Total $ 12,343,774 $ 12,522,955 100.0 % 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 % |
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 June 30, 2019 Fixed maturities U.S. government and agency $ 111,237 $ (1,085 ) $ 174,271 $ (180 ) $ 285,508 $ (1,265 ) Non-U.S. government 130,187 (6,343 ) 111,035 (2,380 ) 241,222 (8,723 ) Corporate debt 479,376 (10,405 ) 484,354 (8,742 ) 963,730 (19,147 ) Agency RMBS 557,096 (6,256 ) 66,210 (119 ) 623,306 (6,375 ) CMBS 18,034 (27 ) 136,832 (688 ) 154,866 (715 ) Non-Agency RMBS 5,845 (973 ) 15,760 (340 ) 21,605 (1,313 ) ABS 400,246 (3,609 ) 487,791 (2,337 ) 888,037 (5,946 ) Municipals 9,980 (120 ) — — 9,980 (120 ) Total fixed maturities $ 1,712,001 $ (28,818 ) $ 1,476,253 $ (14,786 ) $ 3,188,254 $ (43,604 ) At December 31, 2018 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 ) |
MORTGAGE LOANS NET OF VALUATION ALLOWANCE | The following table provides details of the Company's mortgage loans held-for-investment: June 30, 2019 December 31, 2018 Carrying value % of Total Carrying value % of Total Mortgage Loans held-for-investment: Commercial $ 394,179 100 % $ 298,650 100 % Total Mortgage Loans held-for-investment $ 394,179 100 % $ 298,650 100 % |
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 June 30, 2019 Long/short equity funds $ 30,526 4 % Annually 60 days Multi-strategy funds 165,123 21 % Quarterly, Semi-annually 60-90 days Direct lending funds 273,864 34 % n/a n/a Private equity funds 60,285 8 % n/a n/a Real estate funds 134,763 17 % n/a n/a CLO-Equities 17,798 1 % n/a n/a Other privately held investments 28,452 4 % n/a n/a Overseas deposits 91,253 11 % n/a n/a Total other investments $ 802,064 100 % At December 31, 2018 Long/short equity funds $ 26,779 3 % Annually 60 days Multi-strategy funds 167,819 22 % Quarterly, Semi-annually, Annually 45-95 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 % n/a - not applicable |
NET INVESTMENT INCOME | Net investment income was derived from the following sources: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Fixed maturities $ 97,370 $ 88,320 $ 188,752 $ 172,279 Other investments 31,232 14,541 38,128 28,246 Equity securities 3,197 3,158 5,525 4,916 Mortgage loans 3,689 3,357 6,752 6,483 Cash and cash equivalents 8,138 5,627 13,940 9,779 Short-term investments 1,108 1,645 5,002 2,520 Gross investment income 144,734 116,648 258,099 224,223 Investment expenses (6,785 ) (6,688 ) (12,845 ) (13,262 ) Net investment income $ 137,949 $ 109,960 $ 245,254 $ 210,961 |
NET REALIZED INVESTMENT GAINS (LOSSES) | The following table provides an analysis of net investment gains (losses): Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Gross realized investment gains Fixed maturities and short-term investments $ 18,971 $ 5,761 $ 29,409 $ 37,389 Equity securities 154 1,147 1,598 18,662 Gross realized investment gains 19,125 6,908 31,007 56,051 Gross realized investment losses Fixed maturities and short-term investments (9,978 ) (44,442 ) (30,257 ) (87,977 ) Equity securities (29 ) — (122 ) (1,234 ) Gross realized investment losses (10,007 ) (44,442 ) (30,379 ) (89,211 ) Net OTTI recognized in net income (834 ) (1,674 ) (4,870 ) (2,088 ) Change in fair value of investment derivatives (1) (204 ) 5,134 (2,305 ) 7,157 Net unrealized gains (losses) on equity securities 13,145 (11,019 ) 40,543 (31,832 ) Net investment gains (losses) $ 21,225 $ (45,093 ) $ 33,996 $ (59,923 ) (1) Refer to Note 5 ' Derivative Instruments'. |
OTTI RECOGNIZED IN EARNINGS BY ASSET CLASS | The following table summarizes the OTTI recognized in net income by asset class: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Fixed maturities: Non-U.S. government $ — $ 22 $ 60 $ 22 Corporate debt 834 1,652 4,810 2,066 Total OTTI recognized in net income $ 834 $ 1,674 $ 4,870 $ 2,088 |
ROLL FORWARD OF CREDIT LOSSES FOR WHICH A PORTION OF OTTI RECOGNIZED IN AOCI | The following table provides a roll forward of the credit losses ("credit loss table") before income taxes, for which a component of the OTTI charge was recognized in AOCI: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Balance at beginning of period $ 472 $ 1,484 $ 510 $ 1,494 Credit impairments recognized on securities not previously impaired — — — — Additional credit impairments recognized on securities previously impaired — — — — Change in timing of future cash flows on securities previously impaired — — — — Intent to sell of securities previously impaired — — — — Securities sold/redeemed/matured (79 ) (12 ) (117 ) (22 ) Balance at end of period $ 393 $ 1,472 $ 393 $ 1,472 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS | The tables below present the financial instruments measured at fair value on a recurring basis for the periods indicated: Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At June 30, 2019 Assets Fixed maturities U.S. government and agency $ 2,281,604 $ 35,823 $ — $ — $ 2,317,427 Non-U.S. government — 537,824 — — 537,824 Corporate debt — 4,906,448 39,137 — 4,945,585 Agency RMBS — 1,686,912 — — 1,686,912 CMBS — 1,174,376 9,892 — 1,184,268 Non-Agency RMBS — 55,980 — — 55,980 ABS — 1,600,280 491 — 1,600,771 Municipals — 194,188 — — 194,188 2,281,604 10,191,831 49,520 — 12,522,955 Equity securities Common stocks 257 — — — 257 Exchange-traded funds 273,269 — — — 273,269 Bond mutual funds — 159,881 — — 159,881 273,526 159,881 — — 433,407 Other investments Hedge funds (1) — — — 195,649 195,649 Direct lending funds — — — 273,864 273,864 Private equity funds — — — 60,285 60,285 Real estate funds — — — 134,763 134,763 Other privately held investments — — 28,452 — 28,452 CLO-Equities — — 17,798 — 17,798 Overseas deposits — 91,253 — — 91,253 — 91,253 46,250 664,561 802,064 Short-term investments — 32,421 — — 32,421 Other assets Derivative instruments (refer to Note 5) — 863 — — 863 Total Assets $ 2,555,130 $ 10,476,249 $ 95,770 $ 664,561 $ 13,791,710 Liabilities Derivative instruments (refer to Note 5) $ — $ 2,686 $ 10,262 $ — $ 12,948 Cash settled awards (refer to Note 8) — 12,946 — — 12,946 Total Liabilities $ — $ 15,632 $ 10,262 $ — $ 25,894 (1) Includes Long/short equity and Multi-strategy funds. Quoted prices in active markets for identical assets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) Fair value based on NAV practical expedient Total fair value At December 31, 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 5) — 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 5) $ — $ 4,223 $ 10,299 $ — $ 14,522 Cash settled awards (refer to Note 8) — 20,648 — — 20,648 Total Liabilities $ — $ 24,871 $ 10,299 $ — $ 35,170 (1) Includes Long/short equity and Multi-strategy funds. |
LEVEL 3 FAIR VALUE MEASUREMENT INPUTS | The following table quantifies the significant unobservable inputs used in estimating fair values at June 30, 2019 of investments classified as Level 3 in the fair value hierarchy. Fair value Valuation technique Unobservable input Range Weighted average Other investments - CLO-Equities $ 17,798 Discounted cash flow Default rates 3.0% 3.0% Loss severity rate 35.0% 35.0% Collateral spreads 3.0% 3.0% Estimated maturity dates 7 years 7 years Other investments - Other privately held investments $ 28,452 Discounted cash flow Discount rate 3.0% 3.0% Derivatives - Other underwriting-related derivatives $ (10,262 ) Discounted cash flow Discount rate 1.9% 1.9% 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 tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening balance Transfers into Level 3 Transfers out of Level 3 Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ distributions Closing balance Change in unrealized investment gains/(losses) (3) Three months ended June 30, 2019 Fixed maturities Corporate debt $ 41,125 $ — $ — $ (763 ) $ 309 $ — $ (31 ) $ (1,503 ) $ 39,137 $ — CMBS 11,145 — — — 21 — — (1,274 ) 9,892 — ABS 12,043 — (11,564 ) — 12 — — — 491 — 64,313 — (11,564 ) (763 ) 342 — (31 ) (2,777 ) 49,520 — Other investments Other privately held investments 47,685 — — 14,194 — — (33,427 ) — 28,452 767 CLO - Equities 18,022 — — 833 — — — (1,057 ) 17,798 833 65,707 — — 15,027 — — (33,427 ) (1,057 ) 46,250 1,600 Total assets $ 130,020 $ — $ (11,564 ) $ 14,264 $ 342 $ — $ (33,458 ) $ (3,834 ) $ 95,770 $ 1,600 Other liabilities Derivative instruments $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Total liabilities $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Six months ended June 30, 2019 Fixed maturities Corporate debt $ 49,012 $ — $ — $ (1,459 ) $ 933 $ — $ (5,578 ) $ (3,771 ) $ 39,137 $ — CMBS 19,134 — (4,767 ) — 164 — — (4,639 ) 9,892 — ABS 18,533 — (27,966 ) — 174 9,750 — — 491 — 86,679 — (32,733 ) (1,459 ) 1,271 9,750 (5,578 ) (8,410 ) 49,520 — Other investments Other privately held investments 44,518 — — 14,861 — 2,500 (33,427 ) — 28,452 1,434 CLO - Equities 21,271 — — 1,248 — — — (4,721 ) 17,798 1,248 65,789 — — 16,109 — 2,500 (33,427 ) (4,721 ) 46,250 2,682 Total assets $ 152,468 $ — $ (32,733 ) $ 14,650 $ 1,271 $ 12,250 $ (39,005 ) $ (13,131 ) $ 95,770 $ 2,682 Other liabilities Derivative instruments $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) Total liabilities $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) (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. 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) Three months ended June 30, 2018 Fixed maturities Corporate debt $ 43,471 $ 1,589 $ — $ (1 ) $ (388 ) $ 3,185 $ (3,218 ) $ (2,085 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 43,471 3,525 — (1 ) (387 ) 20,300 (3,218 ) (2,085 ) 61,605 — Other investments Other privately held investments 48,787 — — (1,174 ) — — — — 47,613 (1,174 ) CLO - Equities 28,556 — — 3,068 — — — (5,471 ) 26,153 3,068 77,343 — — 1,894 — — — (5,471 ) 73,766 1,894 Other assets Insurance-linked securities 25,000 — — — — — — (25,000 ) — — 25,000 — — — — — — (25,000 ) — — Total assets $ 145,814 $ 3,525 $ — $ 1,893 $ (387 ) $ 20,300 $ (3,218 ) $ (32,556 ) $ 135,371 $ 1,894 Other liabilities Derivative instruments $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Total liabilities $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Six months ended June 30, 2018 Fixed maturities Corporate debt $ 52,897 $ 1,589 $ (4,279 ) $ (119 ) $ 1,015 $ 3,185 $ (5,754 ) $ (5,981 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 52,897 3,525 (4,279 ) (119 ) 1,016 20,300 (5,754 ) (5,981 ) 61,605 — Other investments Other privately held investments 46,430 — — (428 ) — 3,111 (1,500 ) — 47,613 (428 ) CLO - Equities 31,413 — — 4,684 — — — (9,944 ) 26,153 4,684 77,843 — — 4,256 — 3,111 (1,500 ) (9,944 ) 73,766 4,256 Other assets Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 3,525 $ (4,279 ) $ 4,047 $ 1,016 $ 23,411 $ (7,254 ) $ (40,925 ) $ 135,371 $ 4,256 Other liabilities Derivative instruments $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) Total liabilities $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) |
CHANGES IN LEVEL 3 FINANCIAL INSTRUMENTS MEASURED AT FAIR VALUE ON A RECURRING BASIS, LIABILITIES | The following tables present changes in Level 3 for financial instruments measured at fair value on a recurring basis for the periods indicated: Opening balance Transfers into Level 3 Transfers out of Level 3 Included in net income (1) Included in OCI (2) Purchases Sales Settlements/ distributions Closing balance Change in unrealized investment gains/(losses) (3) Three months ended June 30, 2019 Fixed maturities Corporate debt $ 41,125 $ — $ — $ (763 ) $ 309 $ — $ (31 ) $ (1,503 ) $ 39,137 $ — CMBS 11,145 — — — 21 — — (1,274 ) 9,892 — ABS 12,043 — (11,564 ) — 12 — — — 491 — 64,313 — (11,564 ) (763 ) 342 — (31 ) (2,777 ) 49,520 — Other investments Other privately held investments 47,685 — — 14,194 — — (33,427 ) — 28,452 767 CLO - Equities 18,022 — — 833 — — — (1,057 ) 17,798 833 65,707 — — 15,027 — — (33,427 ) (1,057 ) 46,250 1,600 Total assets $ 130,020 $ — $ (11,564 ) $ 14,264 $ 342 $ — $ (33,458 ) $ (3,834 ) $ 95,770 $ 1,600 Other liabilities Derivative instruments $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Total liabilities $ 10,233 $ — $ — $ 29 $ — $ — $ — $ — $ 10,262 $ 29 Six months ended June 30, 2019 Fixed maturities Corporate debt $ 49,012 $ — $ — $ (1,459 ) $ 933 $ — $ (5,578 ) $ (3,771 ) $ 39,137 $ — CMBS 19,134 — (4,767 ) — 164 — — (4,639 ) 9,892 — ABS 18,533 — (27,966 ) — 174 9,750 — — 491 — 86,679 — (32,733 ) (1,459 ) 1,271 9,750 (5,578 ) (8,410 ) 49,520 — Other investments Other privately held investments 44,518 — — 14,861 — 2,500 (33,427 ) — 28,452 1,434 CLO - Equities 21,271 — — 1,248 — — — (4,721 ) 17,798 1,248 65,789 — — 16,109 — 2,500 (33,427 ) (4,721 ) 46,250 2,682 Total assets $ 152,468 $ — $ (32,733 ) $ 14,650 $ 1,271 $ 12,250 $ (39,005 ) $ (13,131 ) $ 95,770 $ 2,682 Other liabilities Derivative instruments $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) Total liabilities $ 10,299 $ — $ — $ (37 ) $ — $ — $ — $ — $ 10,262 $ (37 ) (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. 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) Three months ended June 30, 2018 Fixed maturities Corporate debt $ 43,471 $ 1,589 $ — $ (1 ) $ (388 ) $ 3,185 $ (3,218 ) $ (2,085 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 43,471 3,525 — (1 ) (387 ) 20,300 (3,218 ) (2,085 ) 61,605 — Other investments Other privately held investments 48,787 — — (1,174 ) — — — — 47,613 (1,174 ) CLO - Equities 28,556 — — 3,068 — — — (5,471 ) 26,153 3,068 77,343 — — 1,894 — — — (5,471 ) 73,766 1,894 Other assets Insurance-linked securities 25,000 — — — — — — (25,000 ) — — 25,000 — — — — — — (25,000 ) — — Total assets $ 145,814 $ 3,525 $ — $ 1,893 $ (387 ) $ 20,300 $ (3,218 ) $ (32,556 ) $ 135,371 $ 1,894 Other liabilities Derivative instruments $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Total liabilities $ 10,942 $ — $ — $ (353 ) $ — $ — $ — $ — $ 10,589 $ (353 ) Six months ended June 30, 2018 Fixed maturities Corporate debt $ 52,897 $ 1,589 $ (4,279 ) $ (119 ) $ 1,015 $ 3,185 $ (5,754 ) $ (5,981 ) $ 42,553 $ — Non-Agency RMBS — — — — 3 900 — — 903 — CMBS — 1,936 — — (2 ) 16,215 — — 18,149 — 52,897 3,525 (4,279 ) (119 ) 1,016 20,300 (5,754 ) (5,981 ) 61,605 — Other investments Other privately held investments 46,430 — — (428 ) — 3,111 (1,500 ) — 47,613 (428 ) CLO - Equities 31,413 — — 4,684 — — — (9,944 ) 26,153 4,684 77,843 — — 4,256 — 3,111 (1,500 ) (9,944 ) 73,766 4,256 Other assets Insurance-linked securities 25,090 — — (90 ) — — — (25,000 ) — — 25,090 — — (90 ) — — — (25,000 ) — — Total assets $ 155,830 $ 3,525 $ (4,279 ) $ 4,047 $ 1,016 $ 23,411 $ (7,254 ) $ (40,925 ) $ 135,371 $ 4,256 Other liabilities Derivative instruments $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) Total liabilities $ 11,510 $ — $ — $ (921 ) $ — $ — $ — $ — $ 10,589 $ (921 ) |
DERIVATIVE INSTRUMENTS (Tables)
DERIVATIVE INSTRUMENTS (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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: June 30, 2019 December 31, 2018 Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Derivative notional amount Derivative asset fair value (1) Derivative liability fair value (1) Relating to investment portfolio: Foreign exchange forward contracts $ 189,811 $ 147 $ 1,074 $ 79,336 $ 262 $ 531 Interest rate swaps — — — 150,000 — 1,116 Relating to underwriting portfolio: Foreign exchange forward contracts 534,811 716 1,612 737,419 7,975 2,576 Other underwriting-related contracts 85,000 — 10,262 85,000 — 10,299 Total derivatives $ 863 $ 12,948 $ 8,237 $ 14,522 (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: June 30, 2019 December 31, 2018 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 2,577 $ (1,714 ) $ 863 $ 11,967 $ (3,730 ) $ 8,237 Derivative liabilities $ 14,662 $ (1,714 ) $ 12,948 $ 18,252 $ (3,730 ) $ 14,522 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
RECONCILIATION OF GROSS DERIVATIVE LIABILITIES TO NET AMOUNTS PRESENTED IN BALANCE SHEETS | 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: June 30, 2019 December 31, 2018 Gross amounts Gross amounts offset Net amounts (1) Gross amounts Gross amounts offset Net amounts (1) Derivative assets $ 2,577 $ (1,714 ) $ 863 $ 11,967 $ (3,730 ) $ 8,237 Derivative liabilities $ 14,662 $ (1,714 ) $ 12,948 $ 18,252 $ (3,730 ) $ 14,522 (1) Net asset and liability derivatives are classified within other assets and other liabilities in the consolidated balance sheets. |
TOTAL UNREALIZED AND REALIZED GAINS (LOSSES) ON DERIVATIVES NOT DESIGNATED AS HEDGES RECORDED IN EARNINGS | The total unrealized and realized gains (losses) recognized in net income for derivatives not designated as hedges are shown in the following table: Location of gain (loss) recognized in net income Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Relating to investment portfolio: Foreign exchange forward contracts Net investment gains (losses) $ 620 $ 2,515 $ 1,372 $ 1,323 Interest rate swaps Net investment gains (losses) (824 ) 2,619 (3,677 ) 5,833 Relating to underwriting portfolio: Foreign exchange forward contracts Foreign exchange gains (losses) 802 (7,809 ) (9,715 ) (138 ) Other underwriting-related contracts Other insurance related income (losses) 271 647 618 1,548 Total $ 869 $ (2,028 ) $ (11,402 ) $ 8,566 |
RESERVE FOR LOSSES AND LOSS E_2
RESERVE FOR LOSSES AND LOSS EXPENSES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Insurance Loss Reserves [Abstract] | |
RECONCILIATION OF BEGINNING AND ENDING GROSS RESERVE FOR LOSSES AND LOSS EXPENSES AND NET RESERVE FOR UNPAID LOSSES AND LOSS EXPENSES | The following table presents a reconciliation of the Company's beginning and ending net reserve for unpaid losses and loss expenses: Six months ended June 30, 2019 2018 Gross reserve for losses and loss expenses, beginning of period $ 12,280,769 $ 12,997,553 Less reinsurance recoverable on unpaid losses, beginning of period (3,501,669 ) (3,159,514 ) Net reserve for unpaid losses and loss expenses, beginning of period 8,779,100 9,838,039 Net incurred losses and loss expenses related to: Current year 1,374,784 1,482,409 Prior years (38,293 ) (114,423 ) 1,336,491 1,367,986 Net paid losses and loss expenses related to: Current year (132,111 ) (186,576 ) Prior years (1,304,413 ) (1,233,793 ) (1,436,524 ) (1,420,369 ) Foreign exchange and other 10,832 (985,628 ) Net reserve for unpaid losses and loss expenses, end of period 8,689,899 8,800,028 Reinsurance recoverable on unpaid losses, end of period 3,564,812 3,152,706 Gross reserve for losses and loss expenses, end of period $ 12,254,711 $ 11,952,734 |
NET PRIOR YEAR RESERVE DEVELOPMENT BY SEGMENT | The Company's net favorable 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 net prior year reserve development by segment: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Insurance $ 21,326 $ 24,294 $ 28,240 $ 47,068 Reinsurance 2,295 35,822 10,053 67,355 Total $ 23,621 $ 60,116 $ 38,293 $ 114,423 |
SCHEDULE OF THE LINE OF BUSINESS CATEGORIES AND THE EXPECTED CLAIM TAILS | The following tables 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 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER COMMON SHARE | The following table presents earnings per common share and earnings per diluted common share: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Earnings per common share Net income $ 177,043 $ 103,514 $ 285,828 $ 176,719 Less: Preferred share dividends 10,656 10,656 21,313 21,313 Net income available to common shareholders 166,387 92,858 264,515 155,406 Weighted average common shares outstanding 83,941 83,539 83,834 83,431 Earnings per common share $ 1.98 $ 1.11 $ 3.16 $ 1.86 Earnings per diluted common share Net income available to common shareholders $ 166,387 $ 92,858 $ 264,515 $ 155,406 Weighted average common shares outstanding 83,941 83,539 83,834 83,431 Share-based compensation plans 460 445 504 422 Weighted average diluted common shares outstanding 84,401 83,984 84,338 83,853 Earnings per diluted common share $ 1.97 $ 1.11 $ 3.14 $ 1.85 Weighted average anti-dilutive shares excluded from the dilutive computation 3 158 302 484 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
RECONCILIATIONS OF BEGINNING AND ENDING BALANCE OF NONVESTED RESTRICTED STOCK (INCLUDING RSUS) TO BE SETTLED IN SHARES AND CASH | The following table provides an activity summary of the Company's share-settled restricted stock units for the six months ended June 30, 2019 : Share-Settled Performance Vesting Restricted Stock Units Share-Settled Service Based Restricted Stock Units 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 units - beginning of period 232 $ 54.54 1,411 $ 54.12 Granted 127 54.70 512 54.70 Vested (61 ) 53.82 (463 ) 54.20 Forfeited — — (126 ) 54.57 Nonvested restricted stock units - end of period 298 $ 54.76 1,334 $ 54.27 (1) Fair value is based on the closing price of the Company's common shares on the grant date. The following table provides an activity summary of the Company's cash-settled restricted stock units for the six months ended June 30, 2019 : Cash-Settled Performance Vesting Restricted Stock Units Cash-Settled Service Based Restricted Stock Units Number of restricted stock units Number of restricted stock units Nonvested restricted stock units - beginning of period 27 932 Granted — 354 Vested (12 ) (327 ) Forfeited — (62 ) Nonvested restricted stock units - end of period 15 897 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
COMMON SHARES ISSUED AND OUTSTANDING | The following table presents changes in common shares issued and outstanding: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Shares issued, balance at beginning of period 176,580 176,580 176,580 176,580 Shares issued — — — — Total shares issued at end of period 176,580 176,580 176,580 176,580 Treasury shares, balance at beginning of period (92,646 ) (93,062 ) (92,994 ) (93,419 ) Shares repurchased (7 ) (26 ) (164 ) (175 ) Shares reissued 20 64 525 570 Total treasury shares at end of period (92,633 ) (93,024 ) (92,633 ) (93,024 ) Total shares outstanding 83,947 83,556 83,947 83,556 |
SHARE REPURCHASES | The following table presents common share repurchased from shares held in Treasury: Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 In the open market: Total shares — — — — Total cost $ — $ — $ — $ — Average price per share (1) $ — $ — $ — $ — From employees: (2) Total shares 7 26 164 175 Total cost $ 411 $ 1,512 $ 9,414 $ 8,676 Average price per share (1) $ 58.34 $ 57.97 $ 57.22 $ 49.56 Total shares repurchased: Total shares 7 26 164 175 Total cost $ 411 $ 1,512 $ 9,414 $ 8,676 Average price per share (1) $ 58.34 $ 57.97 $ 57.22 $ 49.56 (1) Calculated using whole numbers. (2) |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Summary of lease expense and related cash flows | The following table summarizes the amounts related to the Company’s total lease expense and the cash flows arising from lease transactions. Three months ended Six months ended June 30, 2019 June 30, 2019 Lease cost: Operating lease expense $ 4,134 $ 11,064 Short-term lease expense (1) 119 765 Sublease income (2) (192 ) (734 ) Total lease expense $ 4,061 $ 11,095 Other information: Operating cash outflows from operating leases $ 6,384 $ 12,920 Right-of-use assets obtained in exchange for new operating lease liabilities $ — $ — Weighted-average remaining lease term - operating leases (3) 8.7 years 8.7 years Weighted-average discount rate - operating lease (4) 4.7 % 4.7 % (1) Short-term lease expense is recognized on a straight-line basis over the lease term. (2) Sublease income largely relates to office property in London, England. (3) Weighted-average remaining lease term was calculated on the basis of the remaining lease term and the lease liability balance for each lease at the reporting date. (4) Weighted-average discount was calculated on the basis of the discount rate for the lease that was used to calculate the lease liability balance for each lease at the reporting date and the remaining balance of the lease payments for each lease at the reporting date. |
Maturity schedule and minimum lease payments | At June 30, 2019 , the scheduled maturity of the Company's operating lease liabilities are expected to be as follows: Expected Cash Flows Remainder of 2019 $ 12,709 2020 21,558 2021 21,366 2022 21,989 2023 17,877 Later years 70,056 Discount (32,298 ) Total discounted operating lease liabilities $ 133,257 |
Schedule of future minimum rental payments for operating leases | At December 31, 2018, the Company's future minimum lease payments were 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 |
OTHER COMPREHENSIVE INCOME (L_2
OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
TAX EFFECTS ALLOCATED TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME | The following table presents the tax effects allocated to each component of other comprehensive income (loss): 2019 2018 Before tax amount Tax (expense) benefit Net of tax amount Before tax amount Tax (expense) benefit Net of Tax Amount Three months ended June 30, Available for sale investments: Unrealized investment gains (losses) arising during the period $ 146,907 $ (15,465 ) $ 131,442 $ (114,842 ) $ 9,562 $ (105,280 ) Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income (8,141 ) 1,192 (6,949 ) 39,100 (2,644 ) 36,456 Unrealized investment gains (losses) arising during the period, net of reclassification adjustment 138,766 (14,273 ) 124,493 (75,742 ) 6,918 (68,824 ) Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 2,556 — 2,556 (9,129 ) — (9,129 ) Total other comprehensive income (loss), net of tax $ 141,322 $ (14,273 ) $ 127,049 $ (84,871 ) $ 6,918 $ (77,953 ) Six months ended June 30, Available for sale investments: Unrealized investment gains (losses) arising during the period $ 353,712 $ (32,061 ) $ 321,651 $ (220,480 ) $ 3,046 $ (217,434 ) Adjustment for reclassification of net realized investment losses and OTTI losses recognized in net income 5,733 652 6,385 34,987 2,253 37,240 Unrealized investment gains (losses) arising during the period, net of reclassification adjustment 359,445 (31,409 ) 328,036 (185,493 ) 5,299 (180,194 ) Non-credit portion of OTTI losses — — — — — — Foreign currency translation adjustment 5,219 — 5,219 (7,858 ) — (7,858 ) Total other comprehensive income (loss), net of tax $ 364,664 $ (31,409 ) $ 333,255 $ (193,351 ) $ 5,299 $ (188,052 ) |
RECLASSIFICATIONS OUT OF AOCI INTO NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | The following table presents reclassifications from accumulated other comprehensive income ("AOCI") to net income (loss): Amount reclassified from AOCI (1) Details about AOCI Components Consolidated statement of operations line item that includes reclassification Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 Unrealized investment gains (losses) on available for sale investments Other realized investment gains (losses) $ 8,975 $ (37,426 ) $ (863 ) $ (32,899 ) OTTI losses (834 ) (1,674 ) (4,870 ) (2,088 ) Total before tax 8,141 (39,100 ) (5,733 ) (34,987 ) Income tax (expense) benefit (1,192 ) 2,644 (652 ) (2,253 ) Net of tax $ 6,949 $ (36,456 ) $ (6,385 ) $ (37,240 ) (1) Amounts in parentheses are decreases to net income (loss). |
BASIS OF PRESENTATION AND SIG_3
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||||
Operating lease right-of-use assets | $ 132,940 | $ 132,940 | $ 144,000 | $ 0 |
Short-term lease expense | 119 | 765 | ||
Operating lease liabilities | $ 133,257 | $ 133,257 | $ 144,000 | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)reportable_segment | Jun. 30, 2018USD ($) | |
Segment Information [Line Items] | ||||
Number of reportable segments | reportable_segment | 2 | |||
Net premiums earned | $ 1,123,607 | $ 1,185,548 | $ 2,257,819 | $ 2,352,950 |
Other insurance related income (losses) | 2,925 | 3,730 | 9,852 | 10,335 |
Net losses and loss expenses | (672,463) | (706,641) | (1,336,491) | (1,367,986) |
Acquisition costs | (242,363) | (231,952) | (502,781) | (461,212) |
Expenses | (165,395) | (165,213) | (340,486) | (335,049) |
Net investment income | 137,949 | 109,960 | 245,254 | 210,961 |
Net investment gains (losses) | 21,225 | (45,093) | 33,996 | (59,923) |
Operating lease expense | 4,061 | 8,000 | 11,095 | 14,000 |
Foreign exchange gains | 12,381 | 44,099 | 5,325 | 6,239 |
Interest expense and financing costs | (15,607) | (17,098) | (31,502) | (33,861) |
Transaction and reorganization expenses | (3,276) | (18,772) | (18,096) | (31,825) |
Amortization of value of business acquired | (7,194) | (53,407) | (20,298) | (110,517) |
Amortization of intangible assets | (2,912) | (4,029) | (5,914) | (6,811) |
Income before income taxes and interest in income of equity method investments | $ 188,877 | $ 101,132 | $ 296,678 | $ 173,301 |
Net losses and loss expenses ratio | 59.80% | 59.60% | 59.20% | 58.10% |
Acquisition cost ratio | 21.60% | 19.60% | 22.30% | 19.60% |
General and administrative expense ratio | 14.70% | 13.90% | 15.00% | 14.30% |
Combined ratio | 96.10% | 93.10% | 96.50% | 92.00% |
Total intangible assets | $ 353,428 | $ 450,073 | $ 353,428 | $ 450,073 |
Operating Segments | ||||
Segment Information [Line Items] | ||||
Gross premiums written | 1,647,760 | 1,650,825 | 4,230,986 | 4,313,620 |
Net premiums written | 1,070,321 | 1,000,455 | 2,847,381 | 2,986,326 |
Net premiums earned | 1,123,607 | 1,185,548 | 2,257,819 | 2,352,950 |
Other insurance related income (losses) | 2,925 | 3,730 | 9,852 | 10,335 |
Net losses and loss expenses | (672,463) | (706,641) | (1,336,491) | (1,367,986) |
Acquisition costs | (242,363) | (231,952) | (502,781) | (461,212) |
Expenses | (133,047) | (134,959) | (271,920) | (274,624) |
Underwriting income | 78,659 | 115,726 | 156,479 | 259,463 |
Operating Segments | Insurance | ||||
Segment Information [Line Items] | ||||
Gross premiums written | 968,325 | 1,026,644 | 1,819,421 | 1,907,492 |
Net premiums written | 591,909 | 598,179 | 1,121,149 | 1,146,071 |
Net premiums earned | 537,260 | 577,271 | 1,094,022 | 1,157,330 |
Other insurance related income (losses) | (695) | 1,214 | 1,046 | 1,833 |
Net losses and loss expenses | (308,703) | (328,773) | (622,479) | (650,312) |
Acquisition costs | (111,655) | (90,864) | (229,430) | (178,193) |
Expenses | (104,898) | (102,369) | (210,932) | (204,738) |
Underwriting income | $ 11,309 | $ 56,479 | $ 32,227 | $ 125,920 |
Net losses and loss expenses ratio | 57.50% | 57.00% | 56.90% | 56.20% |
Acquisition cost ratio | 20.80% | 15.70% | 21.00% | 15.40% |
General and administrative expense ratio | 19.50% | 17.70% | 19.20% | 17.70% |
Combined ratio | 97.80% | 90.40% | 97.10% | 89.30% |
Total intangible assets | $ 353,428 | $ 450,073 | $ 353,428 | $ 450,073 |
Operating Segments | Reinsurance | ||||
Segment Information [Line Items] | ||||
Gross premiums written | 679,435 | 624,181 | 2,411,565 | 2,406,128 |
Net premiums written | 478,412 | 402,276 | 1,726,232 | 1,840,255 |
Net premiums earned | 586,347 | 608,277 | 1,163,797 | 1,195,620 |
Other insurance related income (losses) | 3,620 | 2,516 | 8,806 | 8,502 |
Net losses and loss expenses | (363,760) | (377,868) | (714,012) | (717,674) |
Acquisition costs | (130,708) | (141,088) | (273,351) | (283,019) |
Expenses | (28,149) | (32,590) | (60,988) | (69,886) |
Underwriting income | $ 67,350 | $ 59,247 | $ 124,252 | $ 133,543 |
Net losses and loss expenses ratio | 62.00% | 62.10% | 61.40% | 60.00% |
Acquisition cost ratio | 22.30% | 23.20% | 23.50% | 23.70% |
General and administrative expense ratio | 4.80% | 5.40% | 5.20% | 5.80% |
Combined ratio | 89.10% | 90.70% | 90.10% | 89.50% |
Total intangible assets | $ 0 | $ 0 | $ 0 | $ 0 |
Corporate, Non-Segment | ||||
Segment Information [Line Items] | ||||
Expenses | (32,348) | (30,254) | (68,566) | (60,425) |
Significant Reconciling Items | ||||
Segment Information [Line Items] | ||||
Net investment income | 137,949 | 109,960 | 245,254 | 210,961 |
Net investment gains (losses) | 21,225 | (45,093) | 33,996 | (59,923) |
Foreign exchange gains | 12,381 | 44,099 | 5,325 | 6,239 |
Interest expense and financing costs | (15,607) | (17,098) | (31,502) | (33,861) |
Transaction and reorganization expenses | (3,276) | (18,772) | (18,096) | (31,825) |
Amortization of value of business acquired | (7,194) | (53,407) | (20,298) | (110,517) |
Amortization of intangible assets | $ (2,912) | $ (4,029) | $ (5,914) | $ (6,811) |
INVESTMENTS (Fixed Maturities)
INVESTMENTS (Fixed Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fixed maturities | ||
Amortized cost | $ 12,343,774 | $ 11,616,312 |
Gross unrealized gains | 222,785 | 33,874 |
Gross unrealized losses | (43,604) | (214,839) |
Fair value | 12,522,955 | 11,435,347 |
Non-credit OTTI in AOCI | (740) | (857) |
U.S. government and agency | ||
Fixed maturities | ||
Amortized cost | 2,288,204 | 1,520,142 |
Gross unrealized gains | 30,488 | 4,232 |
Gross unrealized losses | (1,265) | (8,677) |
Fair value | 2,317,427 | 1,515,697 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-U.S. government | ||
Fixed maturities | ||
Amortized cost | 539,588 | 507,550 |
Gross unrealized gains | 6,959 | 1,586 |
Gross unrealized losses | (8,723) | (16,120) |
Fair value | 537,824 | 493,016 |
Non-credit OTTI in AOCI | 0 | 0 |
Corporate debt | ||
Fixed maturities | ||
Amortized cost | 4,850,141 | 4,990,279 |
Gross unrealized gains | 114,591 | 15,086 |
Gross unrealized losses | (19,147) | (128,444) |
Fair value | 4,945,585 | 4,876,921 |
Non-credit OTTI in AOCI | 0 | 0 |
Agency RMBS | ||
Fixed maturities | ||
Amortized cost | 1,669,160 | 1,666,684 |
Gross unrealized gains | 24,127 | 6,508 |
Gross unrealized losses | (6,375) | (29,884) |
Fair value | 1,686,912 | 1,643,308 |
Non-credit OTTI in AOCI | 0 | 0 |
CMBS | ||
Fixed maturities | ||
Amortized cost | 1,150,370 | 1,103,507 |
Gross unrealized gains | 34,613 | 2,818 |
Gross unrealized losses | (715) | (13,795) |
Fair value | 1,184,268 | 1,092,530 |
Non-credit OTTI in AOCI | 0 | 0 |
Non-Agency RMBS | ||
Fixed maturities | ||
Amortized cost | 55,985 | 40,732 |
Gross unrealized gains | 1,308 | 1,237 |
Gross unrealized losses | (1,313) | (1,282) |
Fair value | 55,980 | 40,687 |
Non-credit OTTI in AOCI | (740) | (857) |
ABS | ||
Fixed maturities | ||
Amortized cost | 1,600,846 | 1,651,350 |
Gross unrealized gains | 5,871 | 1,493 |
Gross unrealized losses | (5,946) | (15,240) |
Fair value | 1,600,771 | 1,637,603 |
Non-credit OTTI in AOCI | 0 | 0 |
Municipals | ||
Fixed maturities | ||
Amortized cost | 189,480 | 136,068 |
Gross unrealized gains | 4,828 | 914 |
Gross unrealized losses | (120) | (1,397) |
Fair value | 194,188 | 135,585 |
Non-credit OTTI in AOCI | $ 0 | $ 0 |
INVESTMENTS (Equity Securities)
INVESTMENTS (Equity Securities) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Investment [Line Items] | ||
Cost | $ 377,895 | $ 365,905 |
Gross unrealized gains | 61,552 | 33,610 |
Gross unrealized losses | (6,040) | (17,882) |
Fair value | 433,407 | 381,633 |
Common stocks | ||
Investment [Line Items] | ||
Cost | 695 | 790 |
Gross unrealized gains | 21 | 112 |
Gross unrealized losses | (459) | (375) |
Fair value | 257 | 527 |
Exchange-traded funds | ||
Investment [Line Items] | ||
Cost | 213,909 | 213,420 |
Gross unrealized gains | 61,531 | 33,498 |
Gross unrealized losses | (2,171) | (10,079) |
Fair value | 273,269 | 236,839 |
Bond mutual funds | ||
Investment [Line Items] | ||
Cost | 163,291 | 151,695 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (3,410) | (7,428) |
Fair value | $ 159,881 | $ 144,267 |
INVESTMENTS (Contractual Maturi
INVESTMENTS (Contractual Maturities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Due in one year or less (amortized cost) | $ 388,837 | $ 430,390 |
Due after one year through five years (amortized cost) | 5,169,170 | 4,751,064 |
Due after five years through ten years (amortized cost) | 1,921,131 | 1,762,452 |
Due after ten years (amortized cost) | 388,275 | 210,133 |
Total fixed maturities with a single maturity date (amortized cost) | 7,867,413 | 7,154,039 |
Amortized cost | 12,343,774 | 11,616,312 |
Due in one year or less (fair value) | 388,997 | 426,142 |
Due after one year through five years (fair value) | 5,237,935 | 4,691,263 |
Due after five years through ten years (fair value) | 1,967,360 | 1,697,737 |
Due after ten years (fair value) | 400,732 | 206,077 |
Total fixed maturities with a single maturity date (fair value) | 7,995,024 | 7,021,219 |
Fair Value | $ 12,522,955 | $ 11,435,347 |
Due in one year or less (% of total fair value) | 3.10% | 3.70% |
Due after one year through five years (% of total fair value) | 41.80% | 41.00% |
Due after five years through ten years (% of total fair value) | 15.70% | 14.80% |
Due after ten years (% of total fair value) | 3.20% | 1.80% |
Fixed maturities with a single maturity date (% of total fair value) | 63.80% | 61.30% |
Total | 100.00% | 100.00% |
Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 1,669,160 | $ 1,666,684 |
Amortized cost | 1,669,160 | 1,666,684 |
Fixed maturities without a single maturity date (fair value) | 1,686,912 | 1,643,308 |
Fair Value | $ 1,686,912 | $ 1,643,308 |
Fixed maturities without a single maturity date (% of total fair value) | 13.50% | 14.40% |
CMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 1,150,370 | $ 1,103,507 |
Amortized cost | 1,150,370 | 1,103,507 |
Fixed maturities without a single maturity date (fair value) | 1,184,268 | 1,092,530 |
Fair Value | $ 1,184,268 | $ 1,092,530 |
Fixed maturities without a single maturity date (% of total fair value) | 9.50% | 9.60% |
Non-Agency RMBS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 55,985 | $ 40,732 |
Amortized cost | 55,985 | 40,732 |
Fixed maturities without a single maturity date (fair value) | 55,980 | 40,687 |
Fair Value | $ 55,980 | $ 40,687 |
Fixed maturities without a single maturity date (% of total fair value) | 0.40% | 0.40% |
ABS | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Fixed maturities without a single maturity date (amortized cost) | $ 1,600,846 | $ 1,651,350 |
Amortized cost | 1,600,846 | 1,651,350 |
Fixed maturities without a single maturity date (fair value) | 1,600,771 | 1,637,603 |
Fair Value | $ 1,600,771 | $ 1,637,603 |
Fixed maturities without a single maturity date (% of total fair value) | 12.80% | 14.30% |
INVESTMENTS (Gross Unrealized L
INVESTMENTS (Gross Unrealized Losses) (Details) $ in Thousands | Jun. 30, 2019USD ($)security | Dec. 31, 2018USD ($)security |
U.S. government and agency | ||
Fixed maturities | ||
Fair Value - 12 months or greater | $ 111,237 | $ 374,030 |
Unrealized Losses - 12 months or greater | (1,085) | (7,659) |
Fair Value - Less than 12 months | 174,271 | 424,439 |
Unrealized Losses - Less than 12 months | (180) | (1,018) |
Total Fair Value of Securities in Unrealized Loss Position | 285,508 | 798,469 |
Total Unrealized Losses | (1,265) | (8,677) |
Non-U.S. government | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 130,187 | 44,339 |
Unrealized Losses - 12 months or greater | (6,343) | (2,004) |
Fair Value - Less than 12 months | 111,035 | 303,376 |
Unrealized Losses - Less than 12 months | (2,380) | (14,116) |
Total Fair Value of Securities in Unrealized Loss Position | 241,222 | 347,715 |
Total Unrealized Losses | (8,723) | (16,120) |
Corporate debt | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 479,376 | 1,439,378 |
Unrealized Losses - 12 months or greater | (10,405) | (58,915) |
Fair Value - Less than 12 months | 484,354 | 2,547,135 |
Unrealized Losses - Less than 12 months | (8,742) | (69,529) |
Total Fair Value of Securities in Unrealized Loss Position | 963,730 | 3,986,513 |
Total Unrealized Losses | (19,147) | (128,444) |
Agency RMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 557,096 | 940,645 |
Unrealized Losses - 12 months or greater | (6,256) | (29,255) |
Fair Value - Less than 12 months | 66,210 | 117,181 |
Unrealized Losses - Less than 12 months | (119) | (629) |
Total Fair Value of Securities in Unrealized Loss Position | 623,306 | 1,057,826 |
Total Unrealized Losses | (6,375) | (29,884) |
CMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 18,034 | 455,582 |
Unrealized Losses - 12 months or greater | (27) | (11,430) |
Fair Value - Less than 12 months | 136,832 | 353,802 |
Unrealized Losses - Less than 12 months | (688) | (2,365) |
Total Fair Value of Securities in Unrealized Loss Position | 154,866 | 809,384 |
Total Unrealized Losses | (715) | (13,795) |
Non-Agency RMBS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 5,845 | 9,494 |
Unrealized Losses - 12 months or greater | (973) | (1,170) |
Fair Value - Less than 12 months | 15,760 | 11,432 |
Unrealized Losses - Less than 12 months | (340) | (112) |
Total Fair Value of Securities in Unrealized Loss Position | 21,605 | 20,926 |
Total Unrealized Losses | (1,313) | (1,282) |
ABS | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 400,246 | 237,237 |
Unrealized Losses - 12 months or greater | (3,609) | (2,755) |
Fair Value - Less than 12 months | 487,791 | 1,150,692 |
Unrealized Losses - Less than 12 months | (2,337) | (12,485) |
Total Fair Value of Securities in Unrealized Loss Position | 888,037 | 1,387,929 |
Total Unrealized Losses | (5,946) | (15,240) |
Municipals | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 9,980 | 68,814 |
Unrealized Losses - 12 months or greater | (120) | (1,373) |
Fair Value - Less than 12 months | 0 | 9,894 |
Unrealized Losses - Less than 12 months | 0 | (24) |
Total Fair Value of Securities in Unrealized Loss Position | 9,980 | 78,708 |
Total Unrealized Losses | (120) | (1,397) |
Fixed maturities | ||
Fixed maturities | ||
Fair Value - 12 months or greater | 1,712,001 | 3,569,519 |
Unrealized Losses - 12 months or greater | (28,818) | (114,561) |
Fair Value - Less than 12 months | 1,476,253 | 4,917,951 |
Unrealized Losses - Less than 12 months | (14,786) | (100,278) |
Total Fair Value of Securities in Unrealized Loss Position | 3,188,254 | 8,487,470 |
Total Unrealized Losses | $ (43,604) | $ (214,839) |
Number of available for sale securities in unrealized loss positions | security | 1,614 | 3,599 |
Number of available for sale securities in unrealized loss positions for 12 months or greater | security | 958 | 1,656 |
Fixed maturities | Below Investment Grade or Not Rated | ||
Fixed maturities | ||
Total Unrealized Losses | $ (12,000) | $ (49,000) |
INVESTMENTS (Mortgage Loans) (D
INVESTMENTS (Mortgage Loans) (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Mortgage Loans held-for-investment, net [Abstract] | ||
Commercial | $ 394,179,000 | $ 298,650,000 |
Commercial, Percent | 100.00% | 100.00% |
Total Mortgage Loans held-for-investment | $ 394,179,000 | $ 298,650,000 |
Total Mortgage Loans held-for investment, Percent | 100.00% | 100.00% |
Weighted average debt service coverage ratios | 2.1 | |
Weighted average loan-to-value ratios (less than) | 57.00% | |
Credit losses associated with commercial mortgage loans | $ 0 |
INVESTMENTS (Other Investments)
INVESTMENTS (Other Investments) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Other Investments [Line Items] | ||
Other investments, at fair value | $ 802,064 | $ 787,787 |
Percentage of total fair value | 100.00% | 100.00% |
Long/short equity funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 30,526 | $ 26,779 |
Percentage of total fair value | 4.00% | 3.00% |
Redemption notice period | 60 days | 60 days |
Multi-strategy funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 165,123 | $ 167,819 |
Percentage of total fair value | 21.00% | 22.00% |
Multi-strategy funds | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Unfunded commitments related to other investments | $ 39,000 | $ 84,000 |
Multi-strategy funds | Minimum | ||
Other Investments [Line Items] | ||
Redemption notice period | 60 days | 60 days |
Multi-strategy funds | Minimum | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Investment term | 2 years | |
Multi-strategy funds | Maximum | ||
Other Investments [Line Items] | ||
Redemption notice period | 90 days | 95 days |
Direct lending funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 273,864 | $ 274,478 |
Percentage of total fair value | 34.00% | 35.00% |
Direct lending funds | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Unfunded commitments related to other investments | $ 193,000 | $ 210,000 |
Optional extension of investment term | 3 years | |
Direct lending funds | Minimum | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Investment term | 5 years | |
Direct lending funds | Maximum | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Investment term | 10 years | |
Private equity funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 60,285 | $ 64,566 |
Percentage of total fair value | 8.00% | 8.00% |
Unfunded commitments related to other investments | $ 15,000 | $ 16,000 |
Investment term | 10 years | |
Real estate funds | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 134,763 | $ 84,202 |
Percentage of total fair value | 17.00% | 11.00% |
Real estate funds | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Unfunded commitments related to other investments | $ 100,000 | $ 147,000 |
Real estate funds | Minimum | Other Redemption Restriction | ||
Other Investments [Line Items] | ||
Investment term | 7 years | |
CLO-Equities | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 17,798 | $ 21,271 |
Percentage of total fair value | 1.00% | 2.00% |
Other privately held investments | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 28,452 | $ 44,518 |
Percentage of total fair value | 4.00% | 6.00% |
Overseas deposits | ||
Other Investments [Line Items] | ||
Other investments, at fair value | $ 91,253 | $ 104,154 |
Percentage of total fair value | 11.00% | 13.00% |
Hedge funds | Lockup Redemption Restriction | ||
Other Investments [Line Items] | ||
Fair value of other investments subject to redemption restrictions | $ 63,000 | $ 27,000 |
Percentage of fair value of other investments subject to redemption restrictions | 32.00% | 14.00% |
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 Inve
INVESTMENTS (Equity Method Investments) (Details) - Harrington Reinsurance Holdings Limited $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Schedule of Equity Method Investments [Line Items] | |
Payments to acquire equity method investments | $ 108 |
Equity method investment, ownership percentage | 19.00% |
Equity method investment, difference between carrying amount and underlying equity | $ 5 |
INVESTMENTS (Net Investment Inc
INVESTMENTS (Net Investment Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 144,734 | $ 116,648 | $ 258,099 | $ 224,223 |
Investment expenses | (6,785) | (6,688) | (12,845) | (13,262) |
Net investment income | 137,949 | 109,960 | 245,254 | 210,961 |
Fixed maturities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 97,370 | 88,320 | 188,752 | 172,279 |
Other investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 31,232 | 14,541 | 38,128 | 28,246 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3,197 | 3,158 | 5,525 | 4,916 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 3,689 | 3,357 | 6,752 | 6,483 |
Cash and cash equivalents | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 8,138 | 5,627 | 13,940 | 9,779 |
Short-term investments | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | $ 1,108 | $ 1,645 | $ 5,002 | $ 2,520 |
INVESTMENTS (Net Investment Gai
INVESTMENTS (Net Investment Gains (Losses)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Fixed maturities and short-term investments | $ 18,971 | $ 5,761 | $ 29,409 | $ 37,389 |
Equity securities | 154 | 1,147 | 1,598 | 18,662 |
Gross realized investment gains | 19,125 | 6,908 | 31,007 | 56,051 |
Fixed maturities and short-term investments | (9,978) | (44,442) | (30,257) | (87,977) |
Equity securities | (29) | 0 | (122) | (1,234) |
Gross realized investment losses | (10,007) | (44,442) | (30,379) | (89,211) |
Net OTTI recognized in net income | (834) | (1,674) | (4,870) | (2,088) |
Change in fair value of investment derivatives | (204) | 5,134 | (2,305) | 7,157 |
Net unrealized gains (losses) on equities | 13,145 | (11,019) | 40,543 | (31,832) |
Total net investment gains (losses) | $ 21,225 | $ (45,093) | $ 33,996 | $ (59,923) |
INVESTMENTS (OTTI Recognized in
INVESTMENTS (OTTI Recognized in Earnings by Asset Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in net income | $ 834 | $ 1,674 | $ 4,870 | $ 2,088 |
Non-U.S. government | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in net income | 0 | 22 | 60 | 22 |
Corporate debt | ||||
Other Than Temporary Impairment Losses Investments Portion Recognized In Earnings Net [Line Items] | ||||
Total OTTI recognized in net income | $ 834 | $ 1,652 | $ 4,810 | $ 2,066 |
INVESTMENTS (OTTI Recognized _2
INVESTMENTS (OTTI Recognized in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Credit Losses For Which a Portion of OTTI Was Recognized in AOCI [Roll Forward] | ||||
Balance at beginning of period | $ 472 | $ 1,484 | $ 510 | $ 1,494 |
Credit impairments recognized on securities not previously impaired | 0 | 0 | 0 | 0 |
Additional credit impairments recognized on securities previously impaired | 0 | 0 | 0 | 0 |
Change in timing of future cash flows on securities previously impaired | 0 | 0 | 0 | 0 |
Intent to sell of securities previously impaired | 0 | 0 | 0 | 0 |
Securities sold/redeemed/matured | (79) | (12) | (117) | (22) |
Balance at end of period | $ 393 | $ 1,472 | $ 393 | $ 1,472 |
INVESTMENTS (Reverse Repurchase
INVESTMENTS (Reverse Repurchase Agreements) (Details) - USD ($) $ in Millions | Jun. 30, 2019 | Dec. 31, 2018 |
Investments, Debt and Equity Securities [Abstract] | ||
Value of reverse repurchase agreements | $ 0 | $ 189 |
Minimum required collateral for reverse repurchase agreements, expressed as a percentage of loan principal | 102.00% |
FAIR VALUE MEASUREMENTS (Financ
FAIR VALUE MEASUREMENTS (Financial Instruments Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | $ 12,522,955 | $ 11,435,347 |
Equity securities | 433,407 | 381,633 |
Other investments, at fair value | 802,064 | 787,787 |
Short-term investments | 32,421 | 144,040 |
Derivative instruments (refer to Note 5) | 863 | 8,237 |
Total Assets | 13,791,710 | 12,757,044 |
Derivative instruments (refer to Note 5) | 12,948 | 14,522 |
Cash settled awards (refer to Note 8) | 12,946 | 20,648 |
Total Liabilities | 25,894 | 35,170 |
U.S. government and agency | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 2,317,427 | 1,515,697 |
Non-U.S. government | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 537,824 | 493,016 |
Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,945,585 | 4,876,921 |
Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,686,912 | 1,643,308 |
CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,184,268 | 1,092,530 |
Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 55,980 | 40,687 |
ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,600,771 | 1,637,603 |
Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 194,188 | 135,585 |
Common stocks | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 257 | 527 |
Exchange-traded funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 273,269 | 236,839 |
Bond mutual funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Equity securities | 159,881 | 144,267 |
Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 195,649 | 194,598 |
Direct lending funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 273,864 | 274,478 |
Private equity funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 60,285 | 64,566 |
Real estate funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 134,763 | 84,202 |
Other privately held investments | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 28,452 | 44,518 |
CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 17,798 | 21,271 |
Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 91,253 | 104,154 |
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 | 2,281,604 | 1,480,466 |
Equity securities | 273,526 | 237,366 |
Other investments, at fair value | 0 | 0 |
Short-term investments | 0 | 0 |
Derivative instruments (refer to Note 5) | 0 | 0 |
Total Assets | 2,555,130 | 1,717,832 |
Derivative instruments (refer to Note 5) | 0 | 0 |
Cash settled awards (refer to Note 8) | 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 | 2,281,604 | 1,480,466 |
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 | 257 | 527 |
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 | 273,269 | 236,839 |
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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 0 | 0 |
Significant other observable inputs (Level 2) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 10,191,831 | 9,868,202 |
Equity securities | 159,881 | 144,267 |
Other investments, at fair value | 91,253 | 104,154 |
Short-term investments | 32,421 | 144,040 |
Derivative instruments (refer to Note 5) | 863 | 8,237 |
Total Assets | 10,476,249 | 10,268,900 |
Derivative instruments (refer to Note 5) | 2,686 | 4,223 |
Cash settled awards (refer to Note 8) | 12,946 | 20,648 |
Total Liabilities | 15,632 | 24,871 |
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 | 35,823 | 35,231 |
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 | 537,824 | 493,016 |
Significant other observable inputs (Level 2) | Corporate debt | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 4,906,448 | 4,827,909 |
Significant other observable inputs (Level 2) | Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,686,912 | 1,643,308 |
Significant other observable inputs (Level 2) | CMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,174,376 | 1,073,396 |
Significant other observable inputs (Level 2) | Non-Agency RMBS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 55,980 | 40,687 |
Significant other observable inputs (Level 2) | ABS | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 1,600,280 | 1,619,070 |
Significant other observable inputs (Level 2) | Municipals | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 194,188 | 135,585 |
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 | 159,881 | 144,267 |
Significant other observable inputs (Level 2) | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 91,253 | 104,154 |
Significant unobservable inputs (Level 3) | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Fixed maturities | 49,520 | 86,679 |
Equity securities | 0 | 0 |
Other investments, at fair value | 46,250 | 65,789 |
Short-term investments | 0 | 0 |
Derivative instruments (refer to Note 5) | 0 | 0 |
Total Assets | 95,770 | 152,468 |
Derivative instruments (refer to Note 5) | 10,262 | 10,299 |
Cash settled awards (refer to Note 8) | 0 | 0 |
Total Liabilities | 10,262 | 10,299 |
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 | 39,137 | 49,012 |
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 | 9,892 | 19,134 |
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 | 491 | 18,533 |
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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 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, at fair value | 28,452 | 44,518 |
Significant unobservable inputs (Level 3) | CLO-Equities | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 17,798 | 21,271 |
Significant unobservable inputs (Level 3) | Overseas deposits | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 0 | 0 |
Fair value based on NAV practical expedient | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 664,561 | 617,844 |
Fair value based on NAV practical expedient | Hedge funds | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other investments, at fair value | 195,649 | 194,598 |
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, at fair value | 273,864 | 274,478 |
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, at fair value | 60,285 | 64,566 |
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, at fair value | 134,763 | 84,202 |
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, at fair value | 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, at fair value | 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, at fair value | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Signif
FAIR VALUE MEASUREMENTS (Significant Unobservable Inputs) (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments, at fair value | $ 802,064 | $ 787,787 |
Derivatives - Other underwriting-related derivatives | (12,948) | (14,522) |
Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments, at fair value | 46,250 | 65,789 |
Derivatives - Other underwriting-related derivatives | (10,262) | $ (10,299) |
Discounted cash flow | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Derivatives - Other underwriting-related derivatives | (10,262) | |
Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments, at fair value | $ 17,798 | |
Estimated maturity dates | 7 years | |
Discounted cash flow | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Other investments, at fair value | $ 28,452 | |
Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated maturity dates | 7 years | |
Default rates | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 | |
Default rates | Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 | |
Loss severity rate | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.350 | |
Loss severity rate | Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.350 | |
Collateral spreads | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 | |
Collateral spreads | Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | Other investments - CLO-Equities | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 | |
Discount rate | Discounted cash flow | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.019 | |
Discount rate | Discounted cash flow | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 | |
Discount rate | Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Discount rate | 0.019 | |
Discount rate | Weighted average | Discounted cash flow | Significant unobservable inputs (Level 3) | Other privately held investments | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable input | 0.030 |
FAIR VALUE MEASUREMENTS (Change
FAIR VALUE MEASUREMENTS (Changes in Level 3 for Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Total liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | $ 10,233 | $ 10,942 | $ 10,299 | $ 11,510 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Included in net income | 29 | (353) | (37) | (921) |
Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements/ distributions | 0 | 0 | 0 | 0 |
Closing balance | 10,262 | 10,589 | 10,262 | 10,589 |
Change in unrealized investment gains/(losses) | 29 | (353) | (37) | (921) |
Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 64,313 | 43,471 | 86,679 | 52,897 |
Transfers into Level 3 | 0 | 3,525 | 0 | 3,525 |
Transfers out of Level 3 | (11,564) | 0 | (32,733) | (4,279) |
Included in net income | (763) | (1) | (1,459) | (119) |
Included in OCI | 342 | (387) | 1,271 | 1,016 |
Purchases | 0 | 20,300 | 9,750 | 20,300 |
Sales | (31) | (3,218) | (5,578) | (5,754) |
Settlements/ distributions | (2,777) | (2,085) | (8,410) | (5,981) |
Closing balance | 49,520 | 61,605 | 49,520 | 61,605 |
Change in unrealized investment gains/(losses) | 0 | 0 | 0 | 0 |
Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 65,707 | 77,343 | 65,789 | 77,843 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Included in net income | 15,027 | 1,894 | 16,109 | 4,256 |
Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 2,500 | 3,111 |
Sales | (33,427) | 0 | (33,427) | (1,500) |
Settlements/ distributions | (1,057) | (5,471) | (4,721) | (9,944) |
Closing balance | 46,250 | 73,766 | 46,250 | 73,766 |
Change in unrealized investment gains/(losses) | 1,600 | 1,894 | 2,682 | 4,256 |
Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 25,000 | 25,090 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in net income | 0 | (90) | ||
Included in OCI | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements/ distributions | (25,000) | (25,000) | ||
Closing balance | 0 | 0 | ||
Change in unrealized investment gains/(losses) | 0 | 0 | ||
Total assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 130,020 | 145,814 | 152,468 | 155,830 |
Transfers into Level 3 | 0 | 3,525 | 0 | 3,525 |
Transfers out of Level 3 | (11,564) | 0 | (32,733) | (4,279) |
Included in net income | 14,264 | 1,893 | 14,650 | 4,047 |
Included in OCI | 342 | (387) | 1,271 | 1,016 |
Purchases | 0 | 20,300 | 12,250 | 23,411 |
Sales | (33,458) | (3,218) | (39,005) | (7,254) |
Settlements/ distributions | (3,834) | (32,556) | (13,131) | (40,925) |
Closing balance | 95,770 | 135,371 | 95,770 | 135,371 |
Change in unrealized investment gains/(losses) | 1,600 | 1,894 | 2,682 | 4,256 |
Corporate debt | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 41,125 | 43,471 | 49,012 | 52,897 |
Transfers into Level 3 | 0 | 1,589 | 0 | 1,589 |
Transfers out of Level 3 | 0 | 0 | 0 | (4,279) |
Included in net income | (763) | (1) | (1,459) | (119) |
Included in OCI | 309 | (388) | 933 | 1,015 |
Purchases | 0 | 3,185 | 0 | 3,185 |
Sales | (31) | (3,218) | (5,578) | (5,754) |
Settlements/ distributions | (1,503) | (2,085) | (3,771) | (5,981) |
Closing balance | 39,137 | 42,553 | 39,137 | 42,553 |
Change in unrealized investment gains/(losses) | 0 | 0 | 0 | 0 |
Non-Agency RMBS | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 0 | 0 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in net income | 0 | 0 | ||
Included in OCI | 3 | 3 | ||
Purchases | 900 | 900 | ||
Sales | 0 | 0 | ||
Settlements/ distributions | 0 | 0 | ||
Closing balance | 903 | 903 | ||
Change in unrealized investment gains/(losses) | 0 | 0 | ||
CMBS | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 11,145 | 0 | 19,134 | 0 |
Transfers into Level 3 | 0 | 1,936 | 0 | 1,936 |
Transfers out of Level 3 | 0 | 0 | (4,767) | 0 |
Included in net income | 0 | 0 | 0 | 0 |
Included in OCI | 21 | (2) | 164 | (2) |
Purchases | 0 | 16,215 | 0 | 16,215 |
Sales | 0 | 0 | 0 | 0 |
Settlements/ distributions | (1,274) | 0 | (4,639) | 0 |
Closing balance | 9,892 | 18,149 | 9,892 | 18,149 |
Change in unrealized investment gains/(losses) | 0 | 0 | 0 | 0 |
ABS | Fixed maturities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 12,043 | 18,533 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | (11,564) | (27,966) | ||
Included in net income | 0 | 0 | ||
Included in OCI | 12 | 174 | ||
Purchases | 0 | 9,750 | ||
Sales | 0 | 0 | ||
Settlements/ distributions | 0 | 0 | ||
Closing balance | 491 | 491 | ||
Change in unrealized investment gains/(losses) | 0 | 0 | ||
Other privately held investments | Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 47,685 | 48,787 | 44,518 | 46,430 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Included in net income | 14,194 | (1,174) | 14,861 | (428) |
Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 2,500 | 3,111 |
Sales | (33,427) | 0 | (33,427) | (1,500) |
Settlements/ distributions | 0 | 0 | 0 | 0 |
Closing balance | 28,452 | 47,613 | 28,452 | 47,613 |
Change in unrealized investment gains/(losses) | 767 | (1,174) | 1,434 | (428) |
CLO-Equities | Other investments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 18,022 | 28,556 | 21,271 | 31,413 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Included in net income | 833 | 3,068 | 1,248 | 4,684 |
Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements/ distributions | (1,057) | (5,471) | (4,721) | (9,944) |
Closing balance | 17,798 | 26,153 | 17,798 | 26,153 |
Change in unrealized investment gains/(losses) | 833 | 3,068 | 1,248 | 4,684 |
Derivative instruments | Other liabilities | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 10,233 | 10,942 | 10,299 | 11,510 |
Transfers into Level 3 | 0 | 0 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 | 0 | 0 |
Included in net income | 29 | (353) | (37) | (921) |
Included in OCI | 0 | 0 | 0 | 0 |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Settlements/ distributions | 0 | 0 | 0 | 0 |
Closing balance | 10,262 | 10,589 | 10,262 | 10,589 |
Change in unrealized investment gains/(losses) | $ 29 | (353) | $ (37) | (921) |
Insurance-linked securities | Other assets | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Opening balance | 25,000 | 25,090 | ||
Transfers into Level 3 | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Included in net income | 0 | (90) | ||
Included in OCI | 0 | 0 | ||
Purchases | 0 | 0 | ||
Sales | 0 | 0 | ||
Settlements/ distributions | (25,000) | (25,000) | ||
Closing balance | 0 | 0 | ||
Change in unrealized investment gains/(losses) | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Other
FAIR VALUE MEASUREMENTS (Other Fair Value Narrative) (Details) $ in Millions | Jun. 30, 2019USD ($)hedge_fund | Dec. 31, 2018USD ($) |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Number of hedge funds with reporting lag | hedge_fund | 2 | |
Entities that calculate net asset value per share, reporting lag, percent other investments | 64.00% | 61.00% |
Reported Value Measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | $ 1,388 | $ 1,342 |
Estimate of fair value measurement | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Notes payable | $ 1,443 | $ 1,334 |
DERIVATIVE INSTRUMENTS (Schedul
DERIVATIVE INSTRUMENTS (Schedule of Derivative Instruments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | $ 863 | $ 8,237 |
Derivative liability fair value | 12,948 | 14,522 |
Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 863 | 8,237 |
Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 12,948 | 14,522 |
Investment Portfolio | Foreign exchange forward contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 189,811 | 79,336 |
Investment Portfolio | Foreign exchange forward contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 147 | 262 |
Investment Portfolio | Foreign exchange forward contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 1,074 | 531 |
Investment Portfolio | Interest rate swaps | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 0 | 150,000 |
Investment Portfolio | Interest rate swaps | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Investment Portfolio | Interest rate swaps | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 0 | 1,116 |
Underwriting Portfolio | Foreign exchange forward contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 534,811 | 737,419 |
Underwriting Portfolio | Foreign exchange forward contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 716 | 7,975 |
Underwriting Portfolio | Foreign exchange forward contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | 1,612 | 2,576 |
Underwriting Portfolio | Other underwriting-related contracts | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative notional amount | 85,000 | 85,000 |
Underwriting Portfolio | Other underwriting-related contracts | Other assets | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative asset fair value | 0 | 0 |
Underwriting Portfolio | Other underwriting-related contracts | Other liabilities | Not Designated as Hedging Instruments | ||
Derivative Fair Values on Consolidated Balance Sheet [Line Items] | ||
Derivative liability fair value | $ 10,262 | $ 10,299 |
DERIVATIVE INSTRUMENTS (Offsett
DERIVATIVE INSTRUMENTS (Offsetting Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative assets - gross amounts | $ 2,577 | $ 11,967 |
Derivative assets - gross amounts offset | (1,714) | (3,730) |
Derivative assets- net amounts | 863 | 8,237 |
Derivative liabilities - gross amounts | 14,662 | 18,252 |
Derivative liabilities - gross amounts offset | (1,714) | (3,730) |
Derivative liabilities- net amounts | $ 12,948 | $ 14,522 |
DERIVATIVE INSTRUMENTS (Other U
DERIVATIVE INSTRUMENTS (Other Underwriting-related Risks) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ 869 | $ (2,028) | $ (11,402) | $ 8,566 |
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 | 620 | 2,515 | 1,372 | 1,323 |
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 | (824) | 2,619 | (3,677) | 5,833 |
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 | 802 | (7,809) | (9,715) | (138) |
Underwriting Portfolio | Other underwriting-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 | $ 271 | $ 647 | $ 618 | $ 1,548 |
RESERVE FOR LOSSES AND LOSS E_3
RESERVE FOR LOSSES AND LOSS EXPENSES (Reserve Roll-Forward) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Beginning and Ending Gross Unpaid Losses and Loss Expenses | ||||
Gross reserve for losses and loss expenses, beginning of period | $ 12,280,769 | $ 12,997,553 | ||
Less reinsurance recoverable on unpaid losses, beginning of period | (3,501,669) | (3,159,514) | ||
Net reserve for unpaid losses and loss expenses, beginning of period | 8,779,100 | 9,838,039 | ||
Net incurred losses and loss expenses related to: | ||||
Current year | 1,374,784 | 1,482,409 | ||
Prior years | $ (23,621) | $ (60,116) | (38,293) | (114,423) |
Net incurred losses and loss expenses | 1,336,491 | 1,367,986 | ||
Net paid losses and loss expenses related to: | ||||
Current year | (132,111) | (186,576) | ||
Prior years | (1,304,413) | (1,233,793) | ||
Net paid losses and loss expenses | (1,436,524) | (1,420,369) | ||
Foreign exchange and other | 10,832 | (985,628) | ||
Net reserve for unpaid losses and loss expenses, end of period | 8,689,899 | 8,800,028 | 8,689,899 | 8,800,028 |
Reinsurance recoverable on unpaid losses, end of period | 3,564,812 | 3,152,706 | 3,564,812 | 3,152,706 |
Gross reserve for losses and loss expenses, end of period | $ 12,254,711 | $ 11,952,734 | $ 12,254,711 | $ 11,952,734 |
RESERVE FOR LOSSES AND LOSS E_4
RESERVE FOR LOSSES AND LOSS EXPENSES (Prior year development) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Net favorable (adverse) prior year reserve development | $ 23,621 | $ 60,116 | $ 38,293 | $ 114,423 |
Insurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Net favorable (adverse) prior year reserve development | 21,326 | 24,294 | 28,240 | 47,068 |
Reinsurance | ||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||
Net favorable (adverse) prior year reserve development | $ 2,295 | $ 35,822 | $ 10,053 | $ 67,355 |
RESERVE FOR LOSSES AND LOSS E_5
RESERVE FOR LOSSES AND LOSS EXPENSES (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Apr. 16, 2018 | Dec. 31, 2017 |
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Current year | $ 1,374,784 | $ 1,482,409 | ||||||
Reinsurance Recoverable for Unpaid Claims and Claims Adjustments | $ 3,152,706 | $ 3,564,812 | $ 3,152,706 | 3,564,812 | 3,152,706 | $ 3,501,669 | $ 108,000 | $ 3,159,514 |
Net favorable (adverse) prior year reserve development | 23,621 | 60,116 | 38,293 | 114,423 | ||||
Short Tail Reserving Class Insurance And Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | (19,000) | 43,000 | (52,000) | 81,000 | ||||
Liability Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 11,000 | 6,000 | 23,000 | 8,000 | ||||
Motor Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 5,000 | 11,000 | 9,000 | |||||
Catastrophe and Weather-related Events | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Current year | 36,000 | 73,000 | ||||||
Reinsurance | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 2,295 | 35,822 | 10,053 | 67,355 | ||||
Reinsurance | Short Tail Reserving Class Insurance And Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | (30,000) | (59,000) | ||||||
Reinsurance | Credit and Surety | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 17,000 | 9,000 | 27,000 | 14,000 | ||||
Reinsurance | Professional Lines | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 6,000 | 8,000 | 8,000 | |||||
Insurance | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 21,326 | 24,294 | 28,240 | $ 47,068 | ||||
Insurance | Short Tail Reserving Class Insurance And Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 6,000 | (16,000) | ||||||
Insurance | Credit and Surety | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 7,000 | 9,000 | ||||||
Insurance | Marine | Short Tail Reserving Class Insurance And Reinsurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | 5,000 | 22,000 | ||||||
Insurance | Professional Lines | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | $ 4,000 | $ 10,000 | ||||||
Insurance | Liability Insurance Business | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Net favorable (adverse) prior year reserve development | $ (7,000) | |||||||
Syndicate 2007 | ||||||||
Causes of Increase (Decrease) in Liability for Unpaid Claims and Claims Adjustment Expense [Line Items] | ||||||||
Policyholder benefits and claims incurred, assumed and ceded | $ 819,000 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings per common share | ||||
Net income | $ 177,043 | $ 103,514 | $ 285,828 | $ 176,719 |
Less: Preferred share dividends | 10,656 | 10,656 | 21,313 | 21,313 |
Net income available to common shareholders | $ 166,387 | $ 92,858 | $ 264,515 | $ 155,406 |
Weighted average common shares outstanding - basic (in shares) | 83,941 | 83,539 | 83,834 | 83,431 |
Earnings per common share (in usd per share) | $ 1.98 | $ 1.11 | $ 3.16 | $ 1.86 |
Earnings per diluted common share | ||||
Net income available to common shareholders | $ 166,387 | $ 92,858 | $ 264,515 | $ 155,406 |
Weighted average common shares outstanding - basic (in shares) | 83,941 | 83,539 | 83,834 | 83,431 |
Share-based compensation plans (in shares) | 460 | 445 | 504 | 422 |
Weighted average common shares outstanding - diluted (in shares) | 84,401 | 83,984 | 84,338 | 83,853 |
Earnings per diluted common share (in usd per share) | $ 1.97 | $ 1.11 | $ 3.14 | $ 1.85 |
Weighted average anti-dilutive shares excluded from the dilutive computation (in shares) | 3 | 158 | 302 | 484 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | |||||
Liability for cash-settled restricted stock units | $ 12,946 | $ 12,946 | $ 20,648 | ||
Restricted Stock Units (RSUs) | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Line Items] | |||||
Share based compensation costs incurred | 13,000 | $ 14,000 | 29,000 | $ 29,000 | |
Tax benefit related to share-based compensation costs | 2,000 | 3,000 | 4,000 | 4,000 | |
Fair value - vested during period | 49,000 | 47,000 | |||
Unrecognized compensation costs | 105,000 | 121,000 | $ 105,000 | $ 121,000 | |
Unrecognized compensation costs - weighted average period expected to be recognized | 2 years 8 months 12 days | 2 years 9 months 18 days | |||
Restricted Stock Units (RSUs) | Cash Settled | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | |||||
Liability for cash-settled restricted stock units | $ 13,000 | $ 13,000 | $ 13,000 | $ 13,000 | |
Performance Vesting Restricted Stock Units | Share Settled | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | |||||
Nonvested restricted stock units - beginning of period (in shares) | 232 | ||||
Granted (in shares) | 127 | ||||
Vested (in shares) | (61) | ||||
Forfeited (in shares) | 0 | ||||
Nonvested restricted stock units - end of period (in shares) | 298 | 298 | |||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | |||||
Weighted average grant date fair value - beginning of period (in usd per share) | $ 54.54 | ||||
Weighted average grant date fair value - granted (in usd per share) | 54.70 | ||||
Weighted average grant date fair value - vested (in usd per share) | 53.82 | ||||
Weighted average grant date fair value - forfeited (in usd per share) | 0 | ||||
Weighted average grant date fair value - end of period (in usd per share) | $ 54.76 | $ 54.76 | |||
Performance Vesting Restricted Stock Units | Cash Settled | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | |||||
Nonvested restricted stock units - beginning of period (in shares) | 27 | ||||
Granted (in shares) | 0 | ||||
Vested (in shares) | (12) | ||||
Forfeited (in shares) | 0 | ||||
Nonvested restricted stock units - end of period (in shares) | 15 | 15 | |||
Service Based Restricted Stock Units | Share Settled | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | |||||
Nonvested restricted stock units - beginning of period (in shares) | 1,411 | ||||
Granted (in shares) | 512 | ||||
Vested (in shares) | (463) | ||||
Forfeited (in shares) | (126) | ||||
Nonvested restricted stock units - end of period (in shares) | 1,334 | 1,334 | |||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Abstract] | |||||
Weighted average grant date fair value - beginning of period (in usd per share) | $ 54.12 | ||||
Weighted average grant date fair value - granted (in usd per share) | 54.70 | ||||
Weighted average grant date fair value - vested (in usd per share) | 54.20 | ||||
Weighted average grant date fair value - forfeited (in usd per share) | 54.57 | ||||
Weighted average grant date fair value - end of period (in usd per share) | $ 54.27 | $ 54.27 | |||
Service Based Restricted Stock Units | Cash Settled | |||||
Reconcilation of Beginning and Ending Balance of Nonvested Restricted Stock (including RSUs) [Roll Forward] | |||||
Nonvested restricted stock units - beginning of period (in shares) | 932 | ||||
Granted (in shares) | 354 | ||||
Vested (in shares) | (327) | ||||
Forfeited (in shares) | (62) | ||||
Nonvested restricted stock units - end of period (in shares) | 897 | 897 |
SHAREHOLDERS' EQUITY (Common Sh
SHAREHOLDERS' EQUITY (Common Shares Issued and Outstanding) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued, balance at beginning of period (in shares) | 176,580 | ||||
Total shares issued at end of period (in shares) | 176,580 | 176,580 | |||
Treasury shares, balance at beginning of period (in shares) | (92,994) | ||||
Total treasury shares at end of period (in shares) | (92,633) | (92,633) | |||
Total shares outstanding (in shares) | 83,947 | 83,947 | 83,586 | ||
Common stocks | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares issued, balance at beginning of period (in shares) | 176,580 | 176,580 | 176,580 | 176,580 | |
Shares issued (in shares) | 0 | 0 | 0 | 0 | |
Total shares issued at end of period (in shares) | 176,580 | 176,580 | 176,580 | 176,580 | |
Treasury shares, balance at beginning of period (in shares) | (92,646) | (93,062) | (92,994) | (93,419) | |
Shares repurchased (in shares) | (7) | (26) | (164) | (175) | |
Shares reissued (in shares) | 20 | 64 | 525 | 570 | |
Total treasury shares at end of period (in shares) | (92,633) | (93,024) | (92,633) | (93,024) | |
Total shares outstanding (in shares) | 83,947 | 83,556 | 83,947 | 83,556 |
SHAREHOLDERS' EQUITY (Treasury
SHAREHOLDERS' EQUITY (Treasury Shares) (Details) - Common stocks - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Treasury Shares [Line Items] | ||||
Total shares (in shares) | 7 | 26 | 164 | 175 |
Total cost | $ 411 | $ 1,512 | $ 9,414 | $ 8,676 |
Average price per share (in usd per share) | $ 58.34 | $ 57.97 | $ 57.22 | $ 49.56 |
In the Open Market | ||||
Treasury Shares [Line Items] | ||||
Total shares (in shares) | 0 | 0 | 0 | 0 |
Total cost | $ 0 | $ 0 | $ 0 | $ 0 |
Average price per share (in usd per share) | $ 0 | $ 0 | $ 0 | $ 0 |
From Employees | ||||
Treasury Shares [Line Items] | ||||
Total shares (in shares) | 7 | 26 | 164 | 175 |
Total cost | $ 411 | $ 1,512 | $ 9,414 | $ 8,676 |
Average price per share (in usd per share) | $ 58.34 | $ 57.97 | $ 57.22 | $ 49.56 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Class of Stock [Line Items] | ||||
Cash dividends declared per common share (in usd per share) | $ 0.40 | $ 0.39 | $ 0.80 | $ 0.78 |
Series D Preferred Shares | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per preferred share (in usd per share) | 0.34375 | 0.34375 | 0.68750 | 0.68750 |
Series E Preferred Shares | ||||
Class of Stock [Line Items] | ||||
Cash dividends declared per preferred share (in usd per share) | $ 34.375 | $ 34.375 | $ 68.75 | $ 68.75 |
DEBT AND FINANCING ARRANGEMEN_2
DEBT AND FINANCING ARRANGEMENTS (Details) - USD ($) | Jun. 19, 2019 | Apr. 01, 2019 | Apr. 03, 2019 | Mar. 28, 2019 |
LOC Facility Two | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility | $ 250,000,000 | |||
LOC Facility | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility | 750,000,000 | |||
LOC Facility Three | Letter of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Line of credit facility | $ 500,000,000 | |||
AXIS Specialty Finance PLC | ||||
Line of Credit Facility [Line Items] | ||||
Ownership percentage by parent | 100.00% | |||
AXIS Specialty Finance LLC | ||||
Line of Credit Facility [Line Items] | ||||
Ownership percentage by parent | 100.00% | |||
AXIS Specialty Finance PLC | Senior Notes | 2.65% Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Maturities of senior debt | $ 250,000,000 | |||
Debt instrument, interest rate, stated percentage | 2.65% | |||
AXIS Specialty Finance PLC | Senior Notes | 5.15% Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Maturities of senior debt | $ 250,000,000 | |||
Debt instrument, interest rate, stated percentage | 5.15% | |||
AXIS Specialty Finance LLC | Senior Notes | 3.9% Senior Notes | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, interest rate, stated percentage | 3.90% | |||
Debt instrument, face amount | $ 300,000,000 | |||
Debt instrument face amount issue percentage | 99.36% | |||
Proceeds from issuance of senior long-term debt | $ 296,000,000 |
LEASES - Additional Information
LEASES - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||||||
Operating lease expense | $ 4,061 | $ 8,000 | $ 11,095 | $ 14,000 | ||
Operating lease liabilities | 133,257 | 133,257 | $ 144,000 | $ 0 | ||
Alpharetta, Georgia | ||||||
Lessee, Lease, Description [Line Items] | ||||||
Operating lease liabilities | $ 40,000 | $ 40,000 | ||||
Term of contract | 15 years | 15 years |
LEASES - Lease Costs (Details)
LEASES - Lease Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Leases [Abstract] | ||||
Operating lease expense | $ 4,134 | $ 11,064 | ||
Short-term lease expense | 119 | 765 | ||
Sublease income | (192) | (734) | ||
Operating lease expense | 4,061 | $ 8,000 | 11,095 | $ 14,000 |
Operating cash outflows from operating leases | 6,384 | 12,920 | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | $ 0 | $ 0 | ||
Weighted-average remaining lease term - operating leases | 8 years 8 months 12 days | 8 years 8 months 12 days | ||
Weighted-average discount rate - operating lease | 4.70% | 4.70% |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Remainder of 2019 | $ 12,709 | ||
2020 | 21,558 | ||
2021 | 21,366 | ||
2022 | 21,989 | ||
2023 | 17,877 | ||
Later years | 70,056 | ||
Discount | (32,298) | ||
Total discounted operating lease liabilities | $ 133,257 | $ 144,000 | $ 0 |
2019 | 28,240 | ||
2020 | 25,331 | ||
2021 | 27,025 | ||
2022 | 28,012 | ||
2023 | 23,801 | ||
Later years | 118,497 | ||
Total discounted operating lease liabilities | $ 250,906 |
TRANSACTION AND REORGANIZATIO_2
TRANSACTION AND REORGANIZATION EXPENSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | ||||
Transaction and reorganization expenses | $ 3,276 | $ 18,772 | $ 18,096 | $ 31,825 |
OTHER COMPREHENSIVE INCOME (L_3
OTHER COMPREHENSIVE INCOME (LOSS) (Tax Effects of Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Before tax amount | ||||
Total other comprehensive income (loss), net of tax | $ 141,322 | $ (84,871) | $ 364,664 | $ (193,351) |
Tax (expense) benefit | ||||
Total other comprehensive income (loss), net of tax | (14,273) | 6,918 | (31,409) | 5,299 |
Net of tax amount | ||||
Total other comprehensive income (loss), net of tax | 127,049 | (77,953) | 333,255 | (188,052) |
Available for sale investments | ||||
Before tax amount | ||||
Unrealized investment gains (losses) arising during the period | 146,907 | (114,842) | 353,712 | (220,480) |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (8,141) | 39,100 | 5,733 | 34,987 |
Total other comprehensive income (loss), net of tax | 138,766 | (75,742) | 359,445 | (185,493) |
Tax (expense) benefit | ||||
Unrealized investment gains (losses) arising during the period | (15,465) | 9,562 | (32,061) | 3,046 |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | 1,192 | (2,644) | 652 | 2,253 |
Total other comprehensive income (loss), net of tax | (14,273) | 6,918 | (31,409) | 5,299 |
Net of tax amount | ||||
Unrealized investment gains (losses) arising during the period | 131,442 | (105,280) | 321,651 | (217,434) |
Adjustment for reclassification of net realized investment (gains) losses and OTTI losses recognized in net income | (6,949) | 36,456 | 6,385 | 37,240 |
Total other comprehensive income (loss), net of tax | 124,493 | (68,824) | 328,036 | (180,194) |
Non-credit portion of OTTI losses | ||||
Before tax amount | ||||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Tax (expense) benefit | ||||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Net of tax amount | ||||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Foreign currency translation adjustment | ||||
Before tax amount | ||||
Total other comprehensive income (loss), net of tax | 2,556 | (9,129) | 5,219 | (7,858) |
Tax (expense) benefit | ||||
Total other comprehensive income (loss), net of tax | 0 | 0 | 0 | 0 |
Net of tax amount | ||||
Total other comprehensive income (loss), net of tax | $ 2,556 | $ (9,129) | $ 5,219 | $ (7,858) |
OTHER COMPREHENSIVE INCOME (L_4
OTHER COMPREHENSIVE INCOME (LOSS) (Reclassifications Out of AOCI Into Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification out of accumulated comprehensive income into net income available to common shareholders [Line Items] | ||||
Other realized investment gains (losses) | $ 22,059 | $ (43,419) | $ 38,866 | $ (57,835) |
OTTI losses | (834) | (1,674) | (4,870) | (2,088) |
Total before tax | 188,877 | 101,132 | 296,678 | 173,301 |
Income tax (expense) benefit | (14,469) | (996) | (15,703) | 40 |
Net income available to common shareholders | 166,387 | 92,858 | 264,515 | 155,406 |
Unrealized investment 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) | 8,975 | (37,426) | (863) | (32,899) |
OTTI losses | (834) | (1,674) | (4,870) | (2,088) |
Total before tax | 8,141 | (39,100) | (5,733) | (34,987) |
Income tax (expense) benefit | (1,192) | 2,644 | (652) | (2,253) |
Net income available to common shareholders | $ 6,949 | $ (36,456) | $ (6,385) | $ (37,240) |