Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 12, 2016 | Jun. 30, 2015 | |
Document Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | AHL | ||
Entity Registrant Name | ASPEN INSURANCE HOLDINGS LTD | ||
Entity Central Index Key | 1,267,395 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 60,983,997 | ||
Entity Public Float | $ 2.9 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Revenues | ||||
Net earned premium | $ 2,473.3 | $ 2,405.3 | $ 2,171.8 | |
Net investment income | 185.5 | 190.3 | 186.4 | |
Realized and unrealized investment gains | 94.5 | 46.3 | [1] | 56.9 |
Other income | 0.1 | 4.5 | 8.2 | |
Total Revenues | 2,753.4 | 2,646.4 | 2,423.3 | |
Expenses | ||||
Losses and loss adjustment expenses | 1,366.2 | 1,307.5 | 1,223.7 | |
Amortization of deferred policy acquisition costs | 483.6 | 451.2 | 422 | |
General, administrative and corporate expenses | 424 | 445.7 | 368.1 | |
Interest on long-term debt | 29.5 | 29.5 | 32.7 | |
Change in fair value of derivatives | (6.8) | 15.2 | (1.3) | |
Change in fair value of loan notes issued by variable interest entities | 19.8 | 18.6 | 0 | |
Realized and unrealized investment losses | 77.5 | 14.7 | [1] | 20.5 |
Net realized and unrealized foreign exchange gains/(losses) | 21.4 | (5.6) | [1] | 13.2 |
Other expenses | 0.7 | 1.7 | 1.7 | |
Total expenses | 2,415.9 | 2,278.5 | 2,080.6 | |
Income from operations before income tax | 337.5 | 367.9 | 342.7 | |
Income tax expense | (14.4) | (12.1) | (13.4) | |
Net income | 323.1 | 355.8 | 329.3 | |
Amount attributable to non-controlling interest | (0.8) | (0.8) | 0.5 | |
Net income attributable to Aspen Insurance Holdings Limited ordinary shareholders | 322.3 | 355 | 329.8 | |
Available for sale investments: | ||||
Reclassification adjustment for net realized gains on investments included in net income | (37.9) | (7.7) | (24.1) | |
Change in net unrealized gains on available for sale securities held | (71.7) | 45.4 | (174.3) | |
Amortization of loss on derivative contract | 0 | 0 | 0.5 | |
Net change from current period hedged transactions | 2.6 | (3.8) | 0 | |
Change in foreign currency translation adjustment | (83) | (23.8) | (24.1) | |
Other comprehensive (loss)/income, gross of tax | (190) | 10.1 | (222) | |
Tax thereon: | ||||
Reclassification adjustment for net realized losses on investments included in net income | 1.2 | 0.2 | 0.7 | |
Change in net unrealized gains on available for sale securities held | 3.2 | (3) | 13 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 0 | 0 | 0 | |
Change in foreign currency translation adjustment | 10.9 | 7.9 | 0 | |
Total tax on other comprehensive income | 15.3 | 5.1 | 13.7 | |
Other comprehensive (loss)/income, net of tax | (174.7) | 15.2 | (208.3) | |
Total comprehensive income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ 147.6 | $ 370.2 | $ 121.5 | |
Weighted average number of ordinary share and share equivalents | ||||
Basic, in Shares | 61,287,884 | 64,536,491 | 66,872,048 | |
Diluted, in Shares | 62,687,503 | 65,872,949 | 69,417,903 | |
Basic earnings per ordinary share adjusted for preference share dividends | $ 4.64 | $ 4.92 | $ 4.29 | |
Diluted earnings per ordinary share adjusted for preference share dividends | $ 4.54 | $ 4.82 | $ 4.14 | |
[1] | (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments: | ||
Fixed income securities, available for sale at fair value (amortized cost — $5,867.5 and $5,462.9) | $ 5,951.1 | $ 5,630 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 788 | 771 |
Equity securities, available for sale at fair value (cost — $Nil and $82.6) | 0 | 109.9 |
Equity securities, trading at fair value (cost — $722.5 and $585.2) | 736.4 | 616 |
Short-term investments, available for sale at fair value (amortized cost — $162.9 and $258.2) | 162.9 | 258.3 |
Short-term investments, trading at fair value (amortized cost — $9.5 and $0.2) | 9.5 | 0.2 |
Catastrophe bonds, trading at fair value (cost — $55.2 and $34.4) | 55.4 | 34.8 |
Other investments, equity method | 8.9 | 8.7 |
Total investments | 7,712.2 | 7,428.9 |
Cash and cash equivalents (including cash within consolidated variable interest entities of ($243.3 and $176.7) | 1,099.5 | 1,178.5 |
Reinsurance recoverables: | ||
Unpaid losses | 354.8 | 350 |
Ceded unearned premiums | 168.9 | 206.8 |
Receivables: | ||
Underwriting premiums | 1,115.6 | 1,011.7 |
Other | 94.3 | 90.2 |
Funds withheld | 36 | 46.9 |
Deferred policy acquisition costs | 361.1 | 299 |
Derivatives at fair value | 9.2 | 8 |
Receivables for securities sold | 0.6 | 2.3 |
Office properties and equipment | 70.6 | 62.2 |
Deferred taxation | 3.7 | 0 |
Other assets | 4.1 | 13.6 |
Intangible assets | 18.2 | 18.2 |
Total assets | 11,048.8 | 10,716.3 |
Insurance reserves | ||
Losses and loss adjustment expenses | 4,938.2 | 4,750.8 |
Unearned premiums | 1,587.2 | 1,441.8 |
Total insurance reserves | 6,525.4 | 6,192.6 |
Payables | ||
Reinsurance premiums | 92.7 | 92 |
Current taxation | 10.8 | 18.3 |
Deferred taxation | 0 | 3.1 |
Accrued expenses and other payables | 343.8 | 356.9 |
Liabilities under derivative contracts | 4 | 14.3 |
Total payables | 451.3 | 484.6 |
Loan notes issued by variable interest entities, at fair value | 103 | 70.7 |
Long-term debt | 549.2 | 549.1 |
Total liabilities | 7,628.9 | 7,297 |
Commitments and contingent liabilities (see Note 20) | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
60,918,373 shares of par value 0.15144558¢ each (December 31, 2014 — 62,017,368) | 0.1 | 0.1 |
Preference shares: | ||
Non-controlling interest | 1.3 | 0.5 |
Additional paid-in capital | 1,075.3 | 1,134.3 |
Retained earnings | 2,283.6 | 2,050.1 |
Accumulated other comprehensive income, net of taxes | 59.6 | 234.3 |
Total shareholders’ equity | 3,419.9 | 3,419.3 |
Total liabilities and shareholders’ equity | 11,048.8 | 10,716.3 |
5.950% Preference Shares | ||
Preference shares: | ||
Preference shares, value | 0 | 0 |
7.401% Preference Shares | ||
Preference shares: | ||
Preference shares, value | 0 | 0 |
7.250% Preference Shares | ||
Preference shares: | ||
Preference shares, value | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS Con
CONSOLIDATED BALANCE SHEETS Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fixed income securities, available for sale at fair value (amortized cost — $5,867.5 and $5,462.9) | $ 5,867.5 | $ 5,462.9 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 794.2 | 760.9 |
Equity securities, available for sale at fair value (cost — $Nil and $82.6) | 0 | 82.6 |
Equity securities, trading at fair value (cost — $722.5 and $585.2) | 722.5 | 585.2 |
Short-term investments, available for sale at fair value (amortized cost — $162.9 and $258.2) | 162.9 | 258.2 |
Short-term investments, trading at fair value (amortized cost — $9.5 and $0.2) | 9.5 | 0.2 |
Cash and cash equivalents (including cash within consolidated variable interest entities of ($243.3 and $176.7) | 1,099.5 | 1,178.5 |
Catastrophe bonds, trading at fair value (cost — $55.2 and $34.4) | $ 55.2 | $ 34.4 |
Ordinary shares, par value | $ 0.15144558 | $ 0.15144558 |
Ordinary shares, issued | 60,918,373 | 62,017,368 |
Preference shares, par value | $ 0.15144558 | $ 0.15144558 |
5.950% Preference Shares | ||
Preference shares, issued | 11,000,000 | 11,000,000 |
Preference shares, rate | 5.95% | 5.95% |
Preference shares, par value | $ 0.15144558 | $ 0.15144558 |
7.401% Preference Shares | ||
Preference shares, issued | 5,327,500 | 5,327,500 |
Preference shares, rate | 7.401% | 7.401% |
Preference shares, par value | $ 0.15144558 | $ 0.15144558 |
7.250% Preference Shares | ||
Preference shares, issued | 6,400,000 | 6,400,000 |
Preference shares, rate | 7.25% | 7.25% |
Preference shares, par value | $ 0.15144558 | $ 0.15144558 |
Consolidated Variable Interest Entities | ||
Cash and cash equivalents (including cash within consolidated variable interest entities of ($243.3 and $176.7) | $ 243.3 | $ 176.7 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary Shares | Preference Shares | Series A Preferred Stock | Non-controlling interest | Additional paid-in capital | Additional paid-in capitalOrdinary Shares | Additional paid-in capitalPreference Shares | Retained earnings | Retained earningsOrdinary Shares | Retained earningsPreference Shares | Cumulative foreign currency translation adjustments, net of taxes: | Loss on derivatives, net of taxes: | Unrealized appreciation on available for sale investments, net of taxes: | ||||
Shareholder's equity beginning balance at Dec. 31, 2012 | $ 0.1 | $ 0 | $ 0.2 | $ 1,516.7 | $ 1,544 | $ 112.7 | $ (0.5) | $ 315.2 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change attributable to non-controlling interest for the year | $ 0.5 | (0.5) | 0.5 | |||||||||||||||
Shares issued | $ 21.2 | $ 270.6 | ||||||||||||||||
Ordinary shares repurchased and cancelled | (309.6) | |||||||||||||||||
PIERS redeemed and cancelled | (230) | (230) | ||||||||||||||||
Change in Redemption Value | (7.1) | [1] | 7.1 | [2] | $ (7.1) | [2] | ||||||||||||
Share-based compensation | 21.4 | |||||||||||||||||
Net income | 329.3 | 329.3 | ||||||||||||||||
Dividends | $ (47.8) | (35.5) | ||||||||||||||||
Dividends due to non-controlling interest | (0.1) | |||||||||||||||||
Change for the year, net of income tax | (24.1) | (184.7) | ||||||||||||||||
Reclassification to interest on long-term debt | 0.5 | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2013 | 3,299.6 | 0.1 | 0 | (0.3) | 1,297.4 | 1,783.3 | [2] | 88.6 | 0 | 130.5 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change from current period hedged transactions | 0 | |||||||||||||||||
Total accumulated other comprehensive income, net of taxes | 219.1 | |||||||||||||||||
Preference shares, rate | 5.625% | |||||||||||||||||
Net change attributable to non-controlling interest for the year | (0.8) | 0.8 | (0.8) | |||||||||||||||
Shares issued | 2.7 | 0 | ||||||||||||||||
Ordinary shares repurchased and cancelled | (180.9) | |||||||||||||||||
PIERS redeemed and cancelled | (230) | 0 | ||||||||||||||||
Change in Redemption Value | 0 | [1] | 0 | [2] | 0 | [2] | ||||||||||||
Share-based compensation | 15.1 | |||||||||||||||||
Net income | 355.8 | 355.8 | ||||||||||||||||
Dividends | (50.3) | (37.8) | ||||||||||||||||
Dividends due to non-controlling interest | (0.1) | |||||||||||||||||
Change for the year, net of income tax | (15.9) | 34.9 | ||||||||||||||||
Reclassification to interest on long-term debt | 0 | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2014 | 3,419.3 | 0.1 | 0 | 0.5 | 1,134.3 | 2,050.1 | [2] | 72.7 | (3.8) | 165.4 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change from current period hedged transactions | (3.8) | |||||||||||||||||
Total accumulated other comprehensive income, net of taxes | 234.3 | |||||||||||||||||
Net change attributable to non-controlling interest for the year | (0.8) | 0.8 | (0.8) | |||||||||||||||
Shares issued | 6.8 | 0 | ||||||||||||||||
Ordinary shares repurchased and cancelled | $ (83.7) | |||||||||||||||||
PIERS redeemed and cancelled | (230) | 0 | ||||||||||||||||
Change in Redemption Value | 0 | [1] | $ 0 | [2] | 0 | [2] | ||||||||||||
Share-based compensation | 17.9 | |||||||||||||||||
Net income | 323.1 | |||||||||||||||||
Dividends | $ (50.9) | $ (37.8) | ||||||||||||||||
Dividends due to non-controlling interest | (0.1) | |||||||||||||||||
Change for the year, net of income tax | (72.1) | (105.2) | ||||||||||||||||
Reclassification to interest on long-term debt | 0 | |||||||||||||||||
Shareholder's equity ending balance at Dec. 31, 2015 | 3,419.9 | $ 0.1 | $ 0 | $ 1.3 | $ 1,075.3 | $ 2,283.6 | [2] | $ 0.6 | (1.2) | $ 60.2 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change from current period hedged transactions | $ 2.6 | |||||||||||||||||
Total accumulated other comprehensive income, net of taxes | $ 59.6 | |||||||||||||||||
[1] | The $7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. | |||||||||||||||||
[2] | The $7.1 million reclassification from additional paid-in capital to retained earnings is the difference between the capital raised upon issuance of the 5.625% Perpetual Preferred Income Equity Replacement Securities (“PIERS”), net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash flows from operating activities: | ||||
Net income | $ 323.1 | $ 355.8 | $ 329.3 | |
Proportion due to non-controlling interest | (0.8) | (0.8) | 0.5 | |
Adjustments to reconcile net income to net cash flows from operating activities: | ||||
Depreciation and amortization | 28.5 | 29.6 | 41.1 | |
Share-based compensation | 17.9 | 15.1 | 21.4 | |
Realized and unrealized investment (gains) | (94.5) | (46.3) | (56.9) | |
Realized and unrealized investment losses | 77.5 | 14.7 | [1] | 20.5 |
Change in fair value of loan notes issued by variable interest entities | 19.8 | 18.6 | 0 | |
Other investments gains | 0 | 0 | 2.3 | |
Net realized and unrealized investment foreign exchange losses | 5.5 | 0.8 | 3.7 | |
Loss on derivative contracts | 2.6 | 0 | 0.5 | |
Insurance reserves: | ||||
Losses and loss adjustment expenses | (244.5) | (159.3) | 82.9 | |
Unearned premiums | 120.4 | 152.6 | 158.5 | |
Reinsurance recoverables: | ||||
Unpaid losses | (8.6) | (19.3) | 164.1 | |
Ceded unearned premiums | 37.8 | (51.8) | (29.4) | |
Other receivables | 0.6 | (4.5) | 12.4 | |
Deferred policy acquisition costs | (61.9) | (41.5) | (39.1) | |
Reinsurance premiums payable | 2.7 | 4.5 | (32.8) | |
Funds withheld | 10.9 | (0.4) | 37.8 | |
Premiums receivable | (123.7) | (28.5) | 52.1 | |
Deferred taxes | (6.8) | 4.7 | (19.5) | |
Income tax payable | (7.4) | (10.8) | 21.3 | |
Accrued expenses and other payable | (11.9) | 51.6 | (9.6) | |
Fair value of derivatives and settlement of liabilities under derivatives | (11.4) | 10.4 | (9.2) | |
Long-term debt | 0.1 | 0.1 | 0.2 | |
Intangible assets | 0 | (0.2) | (0.1) | |
Other assets | 9.3 | (6.3) | (19.8) | |
Net cash generated by operating activities | 574.2 | 607.4 | 566.4 | |
Cash flows (used in)/from investing activities: | ||||
(Purchases) of fixed income securities — Available for sale | (2,131.9) | (2,005) | (2,129.8) | |
(Purchases) of fixed income securities — Trading | (556.9) | (653.4) | (763.4) | |
Proceeds from sales and maturities of fixed income securities — Available for sale | 1,656.3 | 1,909.5 | 1,872.3 | |
Proceeds from sales and maturities of fixed income securities — Trading | 519.9 | 615.9 | 486 | |
(Purchases) of equity securities — Available for sale | 0 | 0 | (2.5) | |
(Purchases) of equity securities — Trading | (392.2) | (361) | (304.4) | |
Net proceeds/(purchases) of catastrophe bonds — Trading | (20.9) | (28.7) | (5.8) | |
Proceeds from sales of equity securities — Available for sale | 108.6 | 40 | 82.2 | |
Proceeds from sales of equity securities — Trading | 270.8 | 62.2 | 24.1 | |
(Purchases) of short-term investments — Available for sale | 212.1 | 580.6 | 382.3 | |
Proceeds from sale of short-term investments — Available for sale | 282.6 | 470.3 | 640.5 | |
(Purchases) of short-term investments — Trading | (45.6) | (114.2) | (80.3) | |
Proceeds from sale of short-term investments — Trading | 36.3 | 114 | 82.7 | |
Net change in (payable)/receivable for securities sold | (2.1) | 2.8 | (0.9) | |
Net proceeds from other investments | 0 | 39.3 | 0 | |
Purchase of equipment | (13.9) | (26.1) | (16.3) | |
Investment in Micro-insurance venture | (0.8) | 0 | 0 | |
Net cash (used in) investing activities | (501.9) | (515) | (497.9) | |
Cash flows (used in)/from financing activities: | ||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 6.8 | 2.7 | 21.2 | |
Proceeds from the issuance of preference shares, net of issuance costs | 0 | 0 | 270.6 | |
PIERS repurchased and cancelled | 0 | 0 | (230) | |
Ordinary shares repurchased | (83.7) | (180.9) | (309.6) | |
Proceeds from loan notes issued by Silverton | 100 | 70 | 50 | |
Repayment of loan notes issued by Silverton | (67.8) | 0 | 0 | |
Dividends paid on ordinary shares | (50.9) | (50.3) | (47.8) | |
Dividends paid on preference shares | (37.8) | (37.8) | (35.5) | |
Dividends paid to non-controlling interest | (0.1) | (0.1) | (0.1) | |
Proceeds from note issuances by Aspen Holdings | 0 | 0 | 299.7 | |
Long-term debt redeemed | 0 | 0 | (250) | |
Make whole payment | 0 | 0 | (9.3) | |
Net cash (used in) financing activities | (133.5) | (196.4) | (240.8) | |
Effect of exchange rate movements on cash and cash equivalents | (17.8) | (11.1) | 2.3 | |
Increase/(decrease) in cash and cash equivalents | (79) | (115.1) | (170) | |
Cash and cash equivalents at beginning of period | 1,178.5 | 1,293.6 | 1,463.6 | |
Cash and cash equivalents at end of period | 1,099.5 | 1,178.5 | 1,293.6 | |
Supplemental disclosure of cash flow information: | ||||
Net cash paid/(received) during the period for income tax | 8.8 | 1.8 | (6.3) | |
Cash paid during the period for interest | $ 29 | $ 29 | $ 35 | |
[1] | (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and |
History and Organization
History and Organization | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
History and Organization | History and Organization Aspen Insurance Holdings Limited (“Aspen Holdings”) was incorporated on May 23, 2002 and holds subsidiaries that provide insurance and reinsurance on a worldwide basis. Its principal operating subsidiaries are Aspen Insurance UK Limited (“Aspen U.K.”), Aspen Bermuda Limited (“Aspen Bermuda”), Aspen Specialty Insurance Company (“Aspen Specialty”), Aspen American Insurance Company (“AAIC”) and Aspen Underwriting Limited (corporate member of Lloyd’s Syndicate 4711, “AUL”) (collectively, the “Operating Subsidiaries”). We also established Aspen Capital Management, Ltd and other related entities (collectively, “ACM”) to leverage our existing underwriting franchise, increase our operational flexibility in the capital markets and provide investors direct access to our underwriting expertise. In such regard, Silverton Re Ltd. (“Silverton”), a sidecar, was established in 2013 to attract third-party capital and to provide additional collateralized capacity to support Aspen Re’s global reinsurance business. References to the “Company,” “we,” “us” or “our” refer to Aspen Holdings or Aspen Holdings and its subsidiaries. |
Basis of Preparation and Signif
Basis of Preparation and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Basis of Preparation and Significant Accounting Policies | Basis of Presentation and Significant Accounting Policies The consolidated financial statements of Aspen Holdings are prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are presented on a consolidated basis including the transactions of all operating subsidiaries. Transactions between Aspen Holdings and its subsidiaries are eliminated within the consolidated financial statements. (a) Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to the losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, the fair value of derivatives and the fair value of other investments. All material assumptions and estimates are regularly reviewed and adjustments made as necessary, but actual results could turn out significantly different from those expected when the assumptions or estimates were made. (b) Accounting for Insurance and Reinsurance Operations Premiums Earned. Premiums are recognized as revenues proportionately over the coverage period. Premiums earned are recorded in the statements of operations, net of the cost of purchased reinsurance. Premiums written which are not yet recognized as earned premium are recorded in the consolidated balance sheet as unearned premiums, gross of any ceded unearned premiums. Written and earned premiums, and the related costs, include estimates for premiums which have not yet been finally determined. These relate mainly to contractual provisions for the payment of adjustment or additional premiums, premiums payable under proportional treaties and delegated underwriting authorities, and reinstatement premiums. Adjustment and additional premiums are premiums charged which relate to experience during the policy term. The proportion of adjustable premiums included in the premium estimates varies between business lines with the largest adjustment premiums being in property and casualty reinsurance, marine, aviation and energy insurance and the smallest in property and casualty insurance. Premiums payable under proportional treaty contracts and delegated underwriting authorities are generally not reported to the Company until after the reinsurance coverage is in force. As a result, an estimate of these “pipeline” premiums is recorded. The Company estimates pipeline premiums based on projections of ultimate premium taking into account reported premiums and expected development patterns. Reinstatement premiums on assumed excess of loss reinsurance contracts are provided for based on experience under such contracts. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence and are recognized as revenue in full at the date of loss, triggering the payment of the reinstatement premiums. The payment of reinstatement premiums provides future insurance cover for the remainder of the initial policy term. An allowance for uncollectible premiums is established for possible non-payment of premium receivables, as deemed necessary. Outward reinsurance premiums, for when the Company purchases reinsurance or retrocessional coverage, are accounted for using the same accounting methodology as we use for inwards premiums. Premiums payable under reinsurance contracts that operate on a “losses occurring during” basis are accounted for in full over the period of coverage while those arising from “risks attaching during” policies are expensed over the earnings period of the premiums receivable from the reinsured business. Losses and Loss Adjustment Expenses. Losses represent the amount paid or expected to be paid to claimants in respect of events that have occurred on or before the balance sheet date. The costs of investigating, resolving and processing these claims are known as loss adjustment expenses (“LAE”). The statement of operations records these losses net of reinsurance, meaning that gross losses and loss adjustment expenses incurred are reduced by the amounts recovered or expected to be recovered under reinsurance contracts. Reinsurance. Written premiums, earned premiums, incurred claims, LAE and the amortization of deferred policy acquisition costs all reflect the net effect of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance arises from contracts under which other insurance companies agree to share certain risks with the Company. Reinsurance accounting is followed when there is significant timing risk, significant underwriting risk and a reasonable possibility of significant loss. Reinsurance and retrocession does not isolate the ceding company from its obligations to policyholders. In the event that a reinsurer or retrocessionaire fails to meet its obligations, the ceding company’s obligations remain. The Company regularly evaluates the financial condition of its reinsurers and retrocessionaires and monitors the concentration of credit risk to minimize its exposure to financial loss from reinsurers’ and retrocessionaires’ insolvency. Where it is considered required, appropriate provision is made for balances deemed irrecoverable from reinsurers. Reserves. Insurance reserves are established for the total unpaid cost of claims and LAE in respect of events that have occurred by the balance sheet date, including the Company’s estimates of the total cost of claims incurred but not yet reported (“IBNR”). Claim reserves are reduced for estimated amounts of salvage and subrogation recoveries. Estimated amounts recoverable from reinsurers on unpaid losses and LAE are reflected as assets. For reported claims, reserves are established on a case-by-case basis within the parameters of coverage provided in the insurance policy or reinsurance agreement. For IBNR claims, reserves are estimated using a number of established actuarial methods to establish a range of estimates from which a management best estimate is selected. Both case and IBNR reserve estimates consider variables such as past loss experience, changes in legislative conditions, changes in judicial interpretation of legal liability, policy coverages and inflation. As many of the coverages underwritten involve claims that may not be ultimately settled for many years after they are incurred, subjective judgments as to the ultimate exposure to losses are an integral and necessary component of the loss reserving process. The Company regularly reviews its reserves, using a variety of statistical and actuarial techniques to analyze current claims costs, frequency and severity data, and prevailing economic, social and legal factors. Reserves established in prior periods are adjusted as claim experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the financial results of the period in which the adjustments are made. The process of estimating required reserves does, by its very nature, involve considerable uncertainty. The level of uncertainty can be influenced by factors such as the existence of coverage with long duration payment patterns and changes in claims handling practices, as well as the factors noted above. Ultimate actual payments for claims and LAE could turn out to be significantly different from the Company’s estimates. Amortization of Deferred Policy Acquisition Costs. The costs directly related to writing an insurance policy are referred to as policy acquisition expenses and include commissions, premium taxes and profit commissions. With the exception of profit commissions, these expenses are incurred when a policy is issued, and only the costs directly related to the successful acquisition of new and renewal insurance and reinsurance contracts are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. Profit commissions are estimated based on the related performance criteria evaluated at the balance sheet date, with subsequent changes to those estimates recognized when they occur. On a regular basis a recoverability analysis is performed of the deferred policy acquisition costs in relation to the expected recognition of revenues, including anticipated investment income, and adjustments, if any, are reflected as period costs. Should the analysis indicate that the acquisition costs are unrecoverable, further analyses are performed to determine if a reserve is required to provide for losses which may exceed the related unearned premium. General, Administrative and Corporate Expenses. These costs represent the expenses incurred in running the business and include, but are not limited to compensation costs for employees, rental costs, IT development and operating costs and professional and consultancy fees. General, policy and administrative costs directly attributable to the successful acquisition of business are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. When reporting the results for its operating segments, the Company includes expenses which are directly attributable to the segment plus an allocation of central administrative costs. Corporate expenses are not allocated to the Company’s operating segments as they typically do not fluctuate with the levels of premium written and are related to the Company’s operations which include group executive costs, group finance costs, group legal and actuarial costs and certain strategic and non-recurring costs. (c) Accounting for Investments, Cash and Cash Equivalents Fixed Income Securities. The fixed income securities portfolio comprises securities issued by governments and government agencies, corporate bonds, mortgage and other asset-backed securities and bank loans. Investments in fixed income securities are classified as available for sale or trading and are reported at estimated fair value in the consolidated balance sheet. Investment transactions are recorded on the trade date with balances pending settlement reflected in the consolidated balance sheet under receivables for securities sold and accrued expenses and other payables for securities purchased, respectively. Fair values are based on quoted market prices and other data provided by third-party pricing services and index providers. Equity Securities. The Company’s equity securities comprise U.S. and foreign equity securities. They are classified as either trading or available for sale and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on quoted market prices in active markets from independent pricing sources. Short-term Investments. Short-term investments primarily comprise highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase and are held as part of the investment portfolio of the Company. Short-term investments are classified as either trading or available for sale and carried at estimated fair value. Gains and Losses. Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method and, for fixed income maturity available for sale securities, include adjustments to the cost basis of investments for declines in value that are considered to be other-than-temporary. Unrealized gains and losses represent the difference between the cost, or the cost as adjusted by amortization of any difference between its cost and its redemption value (“amortized cost”), of the security and its fair value at the reporting date and are included within other comprehensive income for securities classified as available for sale and in realized and unrealized investment gains or losses in the consolidated statement of operations for securities classified as trading. Other Investments. Other investments represent the Company’s investments that are recorded using the equity method of accounting. Adjustments to the fair value of these investments are made based on the net asset value of the investment. Catastrophe Bonds. Investments in catastrophe bonds are classified as trading and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on independent broker-dealer quotes. Cash and Cash Equivalents. Cash and cash equivalents are carried at fair value. Cash and cash equivalents comprise cash on hand, deposits held on call with banks and other short-term highly liquid investments due to mature within three months from the date of purchase and which are subject to insignificant risk of change in fair value. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviews its investment portfolio each quarter on an individual security basis for potential other-than-temporary impairment (“OTTI”) based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. OTTI is deemed to occur when there is no objective evidence to support recovery in value of a security and a) the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its cost or adjusted amortized cost basis or b) it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the individual security. In the first case, the entire unrealized loss position is taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss is separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss is recognized in realized losses in earnings and the amount related to all other factors is recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Equity securities do not have a maturity date and therefore the Company’s review of these securities utilizes a higher degree of judgment. In its review, the Company considers its ability and intent to hold an impaired equity security for a reasonable period of time to allow for a full recovery. Where an equity security is considered to be other-than-temporarily impaired, the entire charge is recognized in realized losses in earnings. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Although the Company reviews each security on a case by case basis, it has also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which are other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considers securities which have been in an unrealized loss position for 12 months or more which currently have a market value of more than 20% below cost should be other-than-temporarily impaired. For equities in the available for sale portfolio, the Company considers declines in value to a level of 20% or more below cost for 12 consecutive months to indicate the security should be other-than-temporarily impaired. Investment Income. Investment income includes amounts received and accrued in respect of periodic interest (“coupons”) payable to the Company by the issuer of fixed income securities, equity dividends and interest credited on cash and cash equivalents. It also includes amortization of premium and accretion of discount in respect of fixed income securities. Investment management and custody fees are charged against net investment income reported in the consolidated statement of operations. (d) Accounting for Derivative Financial Instruments The Company enters into derivative instruments such as interest rate swaps and forward exchange contracts in order to manage certain market and credit risks. The Company records derivative instruments at fair value on the Company’s balance sheet as either assets or liabilities, depending on their rights and obligations. The accounting for the gain or loss due to the changes in the fair value of these instruments is dependent on whether the derivative qualifies as a hedge. If the derivative does not qualify as a hedge, the gains or losses are reported in earnings when they occur. If the derivative does qualify as a hedge, the accounting treatment varies based on the type of risk being hedged. (e) Accounting for Intangible Assets Intangible assets are held in the consolidated balance sheet at cost less amortization and impairment. Amortization applies on a straight-line basis in respect of assets having a finite estimated useful economic life. The Company performs a qualitative assessment annually to determine whether it is more likely than not that an intangible asset considered to have an indefinite life, other than goodwill, is impaired. (f) Accounting for Office Properties and Equipment Office properties and equipment are carried at cost less accumulated depreciation. These assets are depreciated on a straight-line basis over the estimated useful lives of the assets. Computer equipment and software is depreciated between three and five years with depreciation for software commencing on the date the software is brought into use. Furniture and fittings are depreciated over four years and leasehold improvements are depreciated over the lesser of 15 years or the lease term. (g) Accounting for Foreign Currencies Translation The reporting currency of the Company is the U.S. Dollar. The functional currencies of the Company’s foreign operations and branches are the currencies in which the majority of their business is transacted. Transactions in currencies other than the functional currency are measured in the functional currency of that operation at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in non-functional currencies are remeasured at the exchange rate prevailing at the balance sheet date and any resulting foreign exchange gains or losses are reflected in the statement of operations. Monetary and non-monetary assets and liabilities of the Company’s functional currency operations are translated into U.S. Dollars at the exchange rate prevailing at the balance sheet date. Income and expenses of these operations are translated at the exchange rate prevailing at the date of the transaction. Unrealized gains or losses arising from the translation of functional currencies are recorded net of tax as a component of other comprehensive income. (h) Earnings per Ordinary Share Basic earnings per ordinary share is determined by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income after tax for the period. Diluted earnings per share reflect the effect on earnings of the average number of ordinary shares outstanding associated with dilutive securities. The dilutive effect of potentially dilutive securities is calculated using the treasury stock method. (i) Accounting for Income Tax Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that the deferred tax asset will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce assets to the recoverable amount. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Furthermore, a tax benefit from an uncertain position may be recognized in the financial statements only if it is more-likely-than-not that the position is sustainable, based solely on its technical merits and consideration of the relevant tax authority’s widely understood administrative practices and precedents. The tax benefit recognized, when the likelihood of realization is more likely-than-not (i.e. greater than 50 percent), is measured at the largest amount which is likely to be sustained. Any portion of the tax benefit where the likelihood of realization is 50 percent or less, upon settlement with a taxing authority, is treated as an unrecognized tax benefit. (j) Accounting for Preference Shares The Company has in issue three classes of perpetual preference shares. The Company has no obligation to pay interest on these securities but they do carry entitlements to dividends payable at the discretion of the Board of Directors. In the event of non-payment of dividends for six consecutive periods, holders of preference shares have director appointment rights. They are therefore accounted for as equity instruments and included within total shareholders’ equity. (k) Accounting for Long-term Incentive Plans The Company operates an employee incentive plan, a director plan and employee share purchase plans, the terms and conditions of which are described in Note 18. The Company applies a fair-value based measurement method including estimates for future forfeitures in the calculation of the compensation costs of stock options, performance shares, phantom shares and restricted share units. (l) Accounting for Long-term Debt Issued by Variable Interest Entities The consolidated variable interest entity, Silverton, has issued debt instruments due to mature on September 16, 2016, September 18, 2017 and September 17, 2018 which are further described in Note 7, “Variable Interest Entities” of these consolidated financial statements. This debt is separately identified on the Company’s balance sheet and the Company has elected to record the debt at fair value. The fair value option was elected due to the potential variability over the ultimate settlement value of the debt instruments. (m) New Accounting Pronouncements New Accounting Pronouncements Adopted in 2015 On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) ” which improves the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. The amendments in this ASU require expanded disclosures for discontinued operations. ASU 2014-08 is effective for fiscal years beginning after December 15, 2014 and interim periods therein. Early application is permitted, but only for disposals that have not been reported in financial statements previously issued or available for issuance. The ASU has no impact on its consolidated financial statements as no disposals were made by the Company for the twelve months ended December 31, 2014. On June 12, 2014, the FASB issued ASU 2014-11, “ Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ” which provides guidance on accounting and disclosures for repurchase agreements and similar transactions. ASU 2014-11 is effective for fiscal years beginning after December 15, 2014 and interim periods beginning after December 15, 2015. Early application for a public business entity is prohibited. The ASU did not have a material impact on the Company's consolidated financial statements. On August 8, 2014, the FASB issued ASU 2014-14, “Receivables - Troubled debt restructuring by creditors (Subtopic 310-40)” which reduces diversity in practice by addressing the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs. ASU 2014-14 is effective for fiscal years beginning after December 15, 2014 and interim periods beginning after December 15, 2014. Early application for a public business entity is permitted. The ASU did not have a material impact on the Company's consolidated financial statements. Accounting Pronouncements Not Yet Adopted On August 27, 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 204-40)” which provides U.S. GAAP guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years beginning after December 15, 2016 and interim periods beginning after December 15, 2016. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815)” which provides guidance on reducing existing diversity under U.S. GAAP in the accounting for hybrid financial instruments issued in the form of a share. ASU 2014-16 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “ Business Combinations ( Topic 810) ” which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On April 15, 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal Use Software (Topic 350-40) ” which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On April 17, 2015, the FASB issued ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30) ” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The ASU simplifies the presentation of debt issuance costs as part of FASB’s initiative to reduce complexity in accounting standards. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On May 8, 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) Pushdown Accounting ” which conforms the FASB’s guidance on pushdown accounting with the SEC’s guidance. ASU 2015-08 is effective for annual periods beginning after December 15, 2015. The Company will apply the provisions of this standard in respect of its acquisition of AG Logic Holdings, LLC (“AgriLogic”). On May 21, 2015, the FASB issued ASU 2015-09, “Financial Services - Insurance (Topic 944) Disclosures About Short-Duration Contracts ” which requires insurance entities to disclose additional information about the liability for unpaid claims and claim adjustment expenses, disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses and disclose a rollforward of the liability for unpaid claims and claims adjustment expenses. ASU 2015-09 is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. The Company does not expect this ASU to have a material impact on its consolidated financial results but it will have an impact on the disclosures in the Company’s Quarterly reports on Form 10-Q and Annual report on Form 10-K. On July 31, 2015, the FASB issued ASU 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient” which simplifies the benefit plan disclosures and reporting requirements. ASU 2015-12 is effective for annual periods beginning after December 15, 2015. The ASU will not impact the Company’s financial statements as it does not classify any of its investment contracts as fully benefit-responsive investment contracts. On August 12, 2015, the FASB issued ASU 2015-14, “Revenue From Contracts With Customers (Topic 606)” which delays the effective date of ASU 2014-09 by one year. ASU 2015-14 is effective for annual periods beginning after December 15, 2015. The ASU will not impact the Company’s financial statements as insurance contracts accounted for within the scope of Topic 944, Financial-Services are exempt from this ASU. On September 25, 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805)” which requires an acquirer to adjust retrospectively to provisional amounts recognized in a business combination. ASU 2015-16 is effective for annual periods beginning after December 15, 2016 and is not expected to have a material impact on the Company’s financial statements. On November 20, 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740)” which eliminates the requirement to split deferred tax liabilities between current and non-current and classify all deferred tax liabilities as non-current in the balance sheet. ASU 2015-17 is effective for annual periods beginning after December 15, 2016 and interim periods within those periods. The Company does not expect this ASU to have a material impact on its consolidated financial results but it may have an impact on the disclosures in the Company’s Quarterly reports on Form 10-Q and Annual report on Form 10-K. Other accounting pronouncements were issued during the year ended December 31, 2015 which were not relevant to the Company. |
Earnings per Ordinary Share
Earnings per Ordinary Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Ordinary Share | Earnings per Ordinary Share Basic earnings per ordinary share are calculated by dividing net income available to holders of Aspen Holdings’ ordinary shares by the weighted average number of ordinary shares outstanding. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income/(loss) after tax for the period. Diluted earnings per ordinary share are based on the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period of calculation using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share for the twelve months ended December 31, 2015 , 2014 , and 2013 , respectively: Twelve Months Ended December 31, 2015 2014 2013 Net income $ 323.1 $ 355.8 $ 329.3 Preference share dividends (37.8 ) (37.8 ) (35.5 ) Change in redemption value (1) — — (7.1 ) Net profit attributable to non-controlling interest (0.8 ) (0.8 ) 0.5 Basic and diluted net income available to ordinary shareholders $ 284.5 $ 317.2 $ 287.2 Ordinary shares: Basic weighted average ordinary shares 61,287,884 64,536,491 66,872,048 Weighted average effect of dilutive securities (2) 1,399,619 1,336,458 2,545,855 Total diluted weighted average ordinary shares 62,687,503 65,872,949 69,417,903 Earnings per ordinary share: Basic $ 4.64 $ 4.92 $ 4.29 Diluted $ 4.54 $ 4.82 $ 4.14 _______________ (1) The $ 7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $ 230.0 million . For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. (2) Dilutive securities comprise: employee options, restricted share units and performance shares associated with the Company’s long term incentive plan, employee share purchase plans and director restricted stock units and options as described in Note 18. Dividends. On February 4, 2016, the Company’s Board of Directors declared the following quarterly dividends: Dividend Payable on: Record Date: Ordinary shares $ 0.21 March 9, 2016 February 20, 2016 7.401% Preference Shares $ 0.462563 April 1, 2016 March 15, 2016 7.250% Preference Shares $ 0.4531 April 1, 2016 March 15, 2016 5.95% Preference Shares $ 0.3719 April 1, 2016 March 15, 2016 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions There were no related party transactions for the twelve months ended December 31, 2015 or December 31, 2014 . |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has two reporting business segments: Insurance and Reinsurance. In addition to the way the Company manages its business, the Company has considered similarities in economic characteristics, products, customers, distribution, the regulatory environment of the Company’s operating segments and quantitative thresholds to determine the Company’s reportable segments. Segment profit or loss for each of the Company’s operating segments is measured by underwriting profit or loss. Underwriting profit is the excess of net earned premiums over the sum of losses and loss expenses, amortization of deferred policy acquisition costs and general and administrative expenses. Underwriting profit or loss provides a basis for management to evaluate the segment’s underwriting performance. Reinsurance Segment. The reinsurance segment consists of property catastrophe reinsurance, other property reinsurance (risk excess, pro rata, facultative), casualty reinsurance (U.S. treaty, international treaty and global facultative) and specialty reinsurance (credit and surety, agriculture, marine, aviation, terrorism, engineering and other specialty). ACM forms part of property catastrophe reinsurance line of business as it currently focuses on property catastrophe business through the use of alternative capital. For a more detailed description of this segment, see Part I, Item 1, “Business — Business Segments — Reinsurance” above. Insurance Segment. The insurance segment consists of property and casualty insurance, marine, aviation and energy insurance and financial and professional lines insurance. For a more detailed description of this segment, see Part I, Item 1 “Business — Business Segments — Insurance” above. Non-underwriting Disclosures. The Company has provided additional disclosures for corporate and other (non-underwriting) income and expenses. Corporate and other income and expenses include net investment income, net realized and unrealized investment gains or losses, expenses associated with managing the group, certain strategic and non-recurring costs, changes in fair value of derivatives and changes in fair value of the loan notes issued by variable interest entities, interest expenses, net realized and unrealized foreign exchange gains or losses and income taxes, which are not allocated to the business segments. Corporate expenses are not allocated to the Company’s operating segments as they typically do not fluctuate with the levels of premiums written and are not directly related to the Company’s segment operations. The Company does not allocate its assets by segment as it evaluates underwriting results of each segment separately from the results of the Company’s investment portfolio. The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2015 , 2014 and 2013 : Twelve Months Ended December 31, 2015 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,248.9 $ 1,748.4 $ 2,997.3 Net written premiums 1,153.5 1,492.7 2,646.2 Gross earned premiums 1,153.5 1,703.3 2,856.8 Net earned premiums 1,072.6 1,400.7 2,473.3 Underwriting Expenses Losses and loss adjustment expenses 491.6 874.6 1,366.2 Amortization of deferred policy acquisition costs 224.7 258.9 483.6 General and administrative expenses 146.5 213.6 360.1 Underwriting income 209.8 53.6 263.4 Corporate expenses (63.9 ) Net investment income 185.5 Realized and unrealized investment gains 94.5 Realized and unrealized investment losses (77.5 ) Change in fair value of loan notes issued by variable interest entities (19.8 ) Change in fair value of derivatives 6.8 Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange (losses) (21.4 ) Other income 0.1 Other expenses (0.7 ) Income before tax 337.5 Income tax expense (14.4 ) Net income $ 323.1 Net reserves for loss and loss adjustment expenses $ 2,409.5 $ 2,173.9 $ 4,583.4 Ratios Loss ratio 45.8 % 62.4 % 55.2 % Policy acquisition expense ratio 20.9 18.5 19.6 General and administrative expense ratio (1) 13.7 15.2 17.1 Expense ratio 34.6 33.7 36.7 Combined ratio 80.4 % 96.1 % 91.9 % _______________ (1) The general and administrative expense ratio in the total column includes corporate expenses. Twelve Months Ended December 31, 2014 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,172.8 $ 1,729.9 $ 2,902.7 Net written premiums 1,124.0 1,391.2 2,515.2 Gross earned premiums 1,137.6 1,599.0 2,736.6 Net earned premiums 1,088.2 1,317.1 2,405.3 Underwriting Expenses Losses and loss adjustment expenses 497.8 809.7 1,307.5 Amortization of deferred policy acquisition costs 200.0 251.2 451.2 General and administrative expenses 146.4 205.5 351.9 Underwriting income 244.0 50.7 294.7 Corporate expenses (93.8 ) Net investment income 190.3 Realized and unrealized investment gains 46.3 Realized and unrealized investment losses (14.7 ) Change in fair value of loan notes issued by variable interest entities (18.6 ) Change in fair value of derivatives (15.2 ) Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange gains 5.6 Other income 4.5 Other expenses (1.7 ) Income before tax 367.9 Income tax expense (12.1 ) Net income $ 355.8 Net reserves for loss and loss adjustment expenses $ 2,493.3 $ 1,907.5 $ 4,400.8 Ratios Loss ratio 45.7 % 61.5 % 54.4 % Policy acquisition expense ratio 18.4 19.1 18.8 General and administrative expense ratio (1) 13.5 15.6 18.5 Expense ratio 31.9 34.7 37.3 Combined ratio 77.6 % 96.2 % 91.7 % ________________ (1) The general and administrative expense ratio in the total column includes corporate expenses. Twelve Months Ended December 31, 2013 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,133.9 $ 1,512.8 $ 2,646.7 Net written premiums 1,082.0 1,217.7 2,299.7 Gross earned premiums 1,126.6 1,366.8 2,493.4 Net earned premiums 1,073.0 1,098.8 2,171.8 Underwriting Expenses Losses and loss adjustment expenses 481.7 742.0 1,223.7 Amortization of deferred policy acquisition costs 207.2 214.8 422.0 General and administrative expenses 131.0 185.9 316.9 Underwriting income/(loss) 253.1 (43.9 ) 209.2 Corporate expenses (51.2 ) Net investment income 186.4 Realized and unrealized investment gains 56.9 Realized and unrealized investment losses (20.5 ) Change in fair value of derivatives 1.3 Interest expense on long term debt (32.7 ) Net realized and unrealized foreign exchange (losses) (13.2 ) Other income 8.2 Other expenses (1.7 ) Income before tax 342.7 Income tax expense (13.4 ) Net income $ 329.3 Net reserves for loss and loss adjustment expenses $ 2,646.8 $ 1,699.4 $ 4,346.2 Ratios Loss ratio 44.9 % 67.5 % 56.3 % Policy acquisition expense ratio 19.3 19.5 19.4 General and administrative expense ratio (1) 12.2 16.9 16.9 Expense ratio 31.5 36.4 36.3 Combined ratio 76.4 % 103.9 % 92.6 % _______________ (1) The general and administrative expense ratio in the total column includes corporate expenses. Geographical Areas — The following summary presents the Company’s gross written premiums based on the location of the insured risk. For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Australia/Asia $ 140.0 $ 130.1 $ 108.4 Caribbean 20.3 19.7 14.4 Europe 113.6 113.9 112.2 United Kingdom 223.6 209.3 166.4 United States & Canada (1) 1,479.5 1,357.3 1,179.6 Worldwide excluding United States (2) 107.2 116.2 145.7 Worldwide including United States (3) 793.6 851.8 827.4 Others 119.5 104.4 92.6 Total $ 2,997.3 $ 2,902.7 $ 2,646.7 ______________ (1) “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere. (2) “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States. (3) “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Income Statement Investment Income. The following table summarizes investment income for the twelve months ended December 31, 2015 , 2014 and 2013 : For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Fixed income securities — Available for sale $ 143.4 $ 151.1 $ 155.6 Fixed income securities — Trading 27.8 26.7 20.3 Short-term investments — Available for sale 1.1 1.4 2.1 Fixed term deposits (included in cash and cash equivalents) 3.0 3.3 5.3 Equity securities — Available for sale 0.1 4.1 5.6 Equity securities — Trading 20.0 13.0 7.0 Catastrophe bonds — Trading 1.9 1.3 — Total 197.3 200.9 195.9 Investment expenses (11.8 ) (10.6 ) (9.5 ) Net investment income $ 185.5 $ 190.3 $ 186.4 The following table summarizes the net realized and unrealized investment gains and losses recorded in the statement of operations and the change in unrealized gains and losses on investments recorded in other comprehensive income: For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 11.7 $ 10.3 $ 18.2 Fixed income securities — gross realized (losses) (2.7 ) (5.9 ) (7.4 ) Equity securities — gross realized gains 31.9 12.9 18.0 Equity securities — gross realized (losses) (3.0 ) (0.8 ) (0.3 ) Other-than-temporary impairments — (2.4 ) — Trading: Fixed income securities — gross realized gains 4.9 7.3 9.5 Fixed income securities — gross realized (losses) (6.1 ) (2.5 ) (2.9 ) Equity securities — gross realized gains 46.0 7.8 2.1 Equity securities — gross realized (losses) (31.7 ) (3.1 ) (0.6 ) Catastrophe bonds (0.3 ) 0.4 — Net change in gross unrealized (losses) gains (33.1 ) 7.6 6.1 Other investments: Gross realized and unrealized gains in Cartesian — — 3.0 Gross unrealized loss in Chaspark (0.6 ) — — Other realized losses — — (9.3 ) Total net realized and unrealized investment gains recorded in the statement of operations $ 17.0 $ 31.6 $ 36.4 Change in available for sale net unrealized gains: Fixed income securities (82.2 ) 47.7 (209.6 ) Short-term investments (0.1 ) — — Equity securities (27.3 ) (10.0 ) 11.2 Total change in pre-tax available for sale unrealized gains (109.6 ) 37.7 (198.4 ) Change in taxes 4.4 (2.8 ) 13.7 Total change in net unrealized gains, net of taxes recorded in other comprehensive income $ (105.2 ) $ 34.9 $ (184.7 ) Other-than-temporary Impairments. A security is potentially impaired when its fair value is below its cost or amortized cost. The Company reviews its available for sale fixed income and equity portfolios on an individual security basis for potential OTTI each quarter based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. The total OTTI charge for the twelve months ended December 31, 2015 was $ Nil ( 2014 — $2.4 million ). For a more detailed description of accounting policies for OTTI, please refer to Note 2 (c), “Basis of Preparation and Significant Accounting Policies — Accounting for Investments, Cash and Cash Equivalents” of these consolidated financial statements. Other realized losses. On December 16, 2013, the Company redeemed its $250.0 million 6.00% Senior Notes due to mature August 16, 2014. This early redemption resulted in a realized loss of $9.3 million , which is reflected in realized and unrealized investment losses recorded in the statement of operations. Balance Sheet Fixed Income Securities, Short-Term Investments and Equities — Available For Sale. The following tables present the cost or amortized cost, gross unrealized gains and losses and estimated fair market value of available for sale investments in fixed income securities, short-term investments and equity securities as at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,113.9 $ 13.0 $ (3.8 ) $ 1,123.1 U.S. agency 154.5 4.3 (0.1 ) 158.7 Municipal 25.0 1.6 — 26.6 Corporate 2,626.2 49.5 (15.1 ) 2,660.6 Non-U.S. government-backed corporate 81.6 0.6 (0.1 ) 82.1 Foreign government 634.6 10.5 (0.9 ) 644.2 Asset-backed 75.4 0.9 (0.3 ) 76.0 Non-agency commercial mortgage-backed 25.5 1.2 — 26.7 Agency mortgage-backed 1,130.8 27.6 (5.3 ) 1,153.1 Total fixed income securities — Available for sale 5,867.5 109.2 (25.6 ) 5,951.1 Total short-term investments — Available for sale 162.9 — — 162.9 Total $ 6,030.4 $ 109.2 $ (25.6 ) $ 6,114.0 The Company no longer holds equity investments in its available for sale portfolio. All equities are held in the trading portfolio. As at December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,074.2 $ 21.5 $ (1.3 ) $ 1,094.4 U.S. agency 190.0 7.5 (0.1 ) 197.4 Municipal 29.1 2.4 — 31.5 Corporate 2,244.7 79.9 (5.2 ) 2,319.4 Non-U.S. government-backed corporate 76.8 1.2 — 78.0 Foreign government 648.6 17.3 (0.2 ) 665.7 Asset-backed 141.3 2.4 (0.2 ) 143.5 Non-agency commercial mortgage-backed 41.5 3.3 — 44.8 Agency mortgage-backed 1,016.7 40.8 (2.2 ) 1,055.3 Total fixed income securities — Available for sale 5,462.9 176.3 (9.2 ) 5,630.0 Total short-term investments — Available for sale 258.2 0.1 — 258.3 Total equity securities — Available for sale 82.6 27.3 — 109.9 Total $ 5,803.7 $ 203.7 $ (9.2 ) $ 5,998.2 Fixed Income Securities, Short Term Investments, Equities and Catastrophe Bonds — Trading . The following tables present the cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of trading investments in fixed income securities, short-term investments, equity securities and catastrophe bonds as at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 27.4 $ — $ (0.1 ) $ 27.3 Municipal 0.5 — — 0.5 Corporate 561.9 5.9 (9.6 ) 558.2 Foreign government 181.5 1.7 (3.7 ) 179.5 Asset-backed 20.7 — (0.2 ) 20.5 Bank loans 2.2 — (0.2 ) 2.0 Total fixed income securities — Trading 794.2 7.6 (13.8 ) 788.0 Total short-term investments — Trading 9.5 — — 9.5 Total equity securities — Trading 722.5 57.3 (43.4 ) 736.4 Total catastrophe bonds — Trading 55.2 0.3 (0.1 ) 55.4 Total $ 1,581.4 $ 65.2 $ (57.3 ) $ 1,589.3 As at December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. agency 0.2 — — 0.2 Municipal 1.1 — — 1.1 Corporate 520.9 11.7 (2.8 ) 529.8 Foreign government 137.3 4.3 (1.5 ) 140.1 Asset-backed 14.6 0.1 — 14.7 Bank loans 86.8 — (1.7 ) 85.1 Total fixed income securities — Trading 760.9 16.1 (6.0 ) 771.0 Total short-term investments — Trading 0.2 — — 0.2 Total equity securities — Trading 585.2 55.5 (24.7 ) 616.0 Total catastrophe bonds — Trading 34.4 0.4 — 34.8 Total $ 1,380.7 $ 72.0 $ (30.7 ) $ 1,422.0 The Company classifies these financial instruments as held for trading as this most closely reflects the facts and circumstances of the investments held. In August 2013, the Company invested in a $200.0 million BBB Emerging Market Debt portfolio, which is reported above in corporate and foreign government securities and in 2014 we adjusted our asset allocation by increasing our equity exposures by $240.0 million , of which $80.0 million was invested in our global equity strategy and $160.0 million was invested in a minimum volatility equity portfolio. In May 2014, the Company sold its BB High Yield Bonds portfolio for net proceeds of $25.1 million . In 2014, the Company maintained an 8.5% position in equities, a 1.0% position in BB Bank Loans, a 2.5% position in BBB Emerging Market Debt and a 0.5% in risk asset portfolio cash. In the fourth quarter of 2015, the Company liquidated the majority of its BB Bank Loans portfolio and received net proceeds of $82.5 million . Proceeds from the sales were reinvested into the BBB Emerging Market Debt portfolio. As at December 31, 2015 , we had an 8.7% position in equities, a 3.5% position in BBB Emerging Market Debt and a 0.4% in risk asset portfolio cash. As a result, our investments in equities, BBB Emerging Market Debt and risk portfolio cash consisted of approximately 12.6% of our Managed Portfolio ( December 31, 2014 — 12.5% ). Catastrophe bonds. The Company has invested in catastrophe bonds with a total value of $55.4 million , as of December 31, 2015 . The bonds receive quarterly interest payments based on variable interest rates with scheduled maturities ranging from 2016 to 2021. The redemption value of the bonds will adjust based on the occurrence of a covered event, such as windstorms and earthquakes which occur in the geographic regions of the United States, Canada, the North Atlantic, Japan or Australia. Other Investments. In January 2015, the Company established, along with seven other insurance companies, a micro-insurance venture consortium and micro-insurance incubator (“MVI”), domiciled in Bermuda. The MVI is a social impact organization that will provide micro-insurance products to assist global emerging consumers. The Company’s initial investment in the MVI was $0.8 million . The Company previously had an investment in Cartesian Iris Offshore Fund L.P (“Cartesian”), which provided capital to Iris Re, a Class 3 Bermuda reinsurer (“Iris Re”). The Company determined that Cartesian had the characteristics of a variable interest entity that are addressed by the guidance in ASC 810, Consolidation and was equity accounted rather than being consolidated by the Company. On June 29, 2013, the Company notified Cartesian Capital Group of its intention to withdraw the Company’s investment in Cartesian and to terminate the services provided to Iris Re. The termination took effect on January 1, 2014 and the Company received a final settlement of $39.3 million . On October 2, 2012, the Company established a subsidiary, Aspen Recoveries Limited, to take ownership of a 58.5% shareholding in Chaspark Maritime Holdings Ltd., a Singaporean registered company (“Chaspark”), with the remaining shareholding owned by other insurers. The shareholding in Chaspark was received as a settlement for subrogation rights associated with a contract frustration claim settlement. The Company has determined that Chaspark has the characteristics of a variable interest entity as addressed by the guidance in ASC 810-10, Consolidation . However, having considered the provisions of ASC 810-10, the Company’s investment in Chaspark does not permit the Company to direct the activities which most significantly impact Chaspark’s economic performance and the Company is not acting as principal or agent for a related party group of investors. Under these circumstances, the Company is not required to consolidate Chaspark. The investment is therefore accounted for under the equity method and adjustments to the carrying value of this investment are made based on the Company’s share of capital including share of income and expenses, which is provided in the quarterly management accounts. The adjusted carrying value approximates fair value. In the twelve months ended December 31, 2015 , the change in the value of the Company’s investment in Chaspark was an unrealized loss of $0.6 million ( December 31, 2014 — $ Nil ). Changes in the value were recognized in realized and unrealized investment gains and losses in the consolidated statement of operations. The table below shows the Company’s investments in MVI, Cartesian and Chaspark for the twelve months ended December 31, 2015 and 2014 : MVI Cartesian Chaspark Total ($ in millions) Opening undistributed value of investment as at January 1, 2015 $ — $ — $ 8.7 $ 8.7 Initial investment for the twelve months to December 31, 2015 0.8 — — 0.8 Gross realized and unrealized loss — — (0.6 ) (0.6 ) Closing value of investment as at December 31, 2015 $ 0.8 $ — $ 8.1 $ 8.9 Opening undistributed value of investment as at January 1, 2014 $ — $ 39.3 $ 8.7 $ 48.0 Distribution for the twelve months to December 31, 2014 — (39.3 ) — (39.3 ) Closing value of investment as at December 31, 2014 $ — $ — $ 8.7 $ 8.7 Fixed Income Securities. The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2015 and December 31, 2014 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2015 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 661.8 $ 664.4 AA Due after one year through five years 2,765.2 2,806.6 AA- Due after five years through ten years 1,122.5 1,132.0 A+ Due after ten years 86.3 92.3 A+ Subtotal 4,635.8 4,695.3 Non-agency commercial mortgage-backed 25.5 26.7 AA+ Agency mortgage-backed 1,130.8 1,153.1 AA+ Asset-backed 75.4 76.0 AAA Total fixed income securities — Available for sale $ 5,867.5 $ 5,951.1 At December 31, 2014 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 590.2 $ 594.7 AA Due after one year through five years 2,552.0 2,620.8 AA- Due after five years through ten years 1,023.5 1,059.9 A+ Due after ten years 97.7 111.0 A+ Subtotal 4,263.4 4,386.4 Non-agency commercial mortgage-backed 41.5 44.8 AA+ Agency mortgage-backed 1,016.7 1,055.3 AA+ Asset-backed 141.3 143.5 AAA Total fixed income securities — Available for sale $ 5,462.9 $ 5,630.0 Guaranteed Investments. As at December 31, 2015 , the Company held no ( December 31, 2014 — $2.5 million ) investments which are guaranteed by mono-line insurers, excluding those with explicit government guarantees, and the Company’s holding was limited to one municipal security with fair value less than $0.1 million rated CC or higher ( December 31, 2014 — two municipal securities, both rated BBB- or higher). The standalone rating (rating without guarantee) is determined as the senior unsecured debt rating of the issuer. Where the credit ratings were split between the two main rating agencies, Standard & Poor’s Financial Services LLC (“S&P”) and Moody’s Investors Service Inc. (“Moody’s”), the lowest rating was used. The Company’s exposure to other third-party guaranteed debt is primarily to investments backed by non-U.S. government guaranteed issuers. Gross Unrealized Losses. The following tables summarize as at December 31, 2015 and December 31, 2014 , by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available for sale portfolio: December 31, 2015 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 583.2 $ (3.7 ) $ 4.6 $ (0.1 ) $ 587.8 $ (3.8 ) 72 U.S. agency 17.6 (0.1 ) — — 17.6 (0.1 ) 12 Municipal 1.7 — — — 1.7 — 3 Corporate 1,179.7 (13.3 ) 81.1 (1.8 ) 1,260.8 (15.1 ) 510 Non-U.S. government-backed corporate 40.9 (0.1 ) — — 40.9 (0.1 ) 9 Foreign government 174.6 (0.8 ) 2.8 (0.1 ) 177.4 (0.9 ) 43 Asset-backed 51.4 (0.3 ) 4.2 — 55.6 (0.3 ) 39 Agency mortgage-backed 348.1 (3.6 ) 72.2 (1.7 ) 420.3 (5.3 ) 105 Total fixed income securities — Available for sale 2,397.2 (21.9 ) 164.9 (3.7 ) 2,562.1 (25.6 ) 793 Total short-term investments — Available for sale 56.7 — — — 56.7 — 12 Total $ 2,453.9 $ (21.9 ) $ 164.9 $ (3.7 ) $ 2,618.8 $ (25.6 ) 805 December 31, 2014 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 166.1 $ (0.5 ) $ 79.4 $ (0.8 ) $ 245.5 $ (1.3 ) 39 U.S. agency 25.1 — 4.9 (0.1 ) 30.0 (0.1 ) 7 Corporate 459.4 (2.1 ) 171.3 (3.1 ) 630.7 (5.2 ) 274 Non-U.S. government-backed corporate 0.7 — — — 0.7 — 1 Foreign government 30.4 — 44.2 (0.2 ) 74.6 (0.2 ) 16 Asset-backed 43.7 (0.1 ) 11.7 (0.1 ) 55.4 (0.2 ) 43 Agency mortgage-backed 64.7 (0.3 ) 111.7 (1.9 ) 176.4 (2.2 ) 48 Total fixed income securities — Available for sale 790.1 (3.0 ) 423.2 (6.2 ) 1,213.3 (9.2 ) 428 Total short-term investments — Available for sale 4.6 — — — 4.6 — 3 Total $ 794.7 $ (3.0 ) $ 423.2 $ (6.2 ) $ 1,217.9 $ (9.2 ) 431 Investment Purchases and Sales. The following table summarizes investment purchases, sales and maturities for the twelve months ended December 31, 2015 , 2014 and 2013 : For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) (Purchases) of fixed income securities — Available for sale $ (2,131.9 ) $ (2,005.0 ) $ (2,129.8 ) (Purchases) of fixed income securities — Trading (556.9 ) (653.4 ) (763.4 ) (Purchases) of equity securities — Available for sale — — (2.5 ) (Purchases) of equity securities — Trading (392.2 ) (361.0 ) (304.4 ) Proceeds from sales and maturities of fixed income securities — Available for sale 1,656.3 1,909.5 1,872.3 Proceeds from sales and maturities of fixed income securities — Trading 519.9 615.9 486.0 Proceeds from sales of equity securities — Available for sale 108.6 40.0 82.2 Proceeds from sales of equity securities — Trading 270.8 62.2 24.1 Net change in (payable)/receivable for securities (purchased)/sold (2.1 ) 2.8 (0.9 ) (Purchases) of short-term investments — Available for sale (212.1 ) (580.6 ) (382.3 ) Proceeds from short-term investments — Available for sale 282.6 470.3 640.5 (Purchases) of short-term investments — Trading (45.6 ) (114.2 ) (80.3 ) Proceeds from short-term investments — Trading 36.3 114.0 82.7 Investment in Micro-insurance Venture (0.8 ) — — Net proceeds/(purchases) of catastrophe bonds — Trading (20.9 ) (28.7 ) (5.8 ) Proceeds from other investments — 39.3 — Net (purchases) for the year $ (488.0 ) $ (488.9 ) $ (481.6 ) |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at December 31, 2015 , the Company had two investments in two variable interest entities (“VIE”), Chaspark and Silverton. Chaspark. On October 2, 2012, the Company established a subsidiary, Aspen Recoveries Limited, to take ownership of a 58.5% shareholding in Chaspark, with the remaining shareholding owned by other insurers. The shareholding in Chaspark was received as a settlement for subrogation rights associated with a contract frustration claim settlement. The Company has determined that Chaspark has the characteristics of a VIE as addressed by the guidance in ASC 810, Consolidation . As discussed further in Note 6, “Investments” in these consolidated financial statements, the investment in Chaspark is accounted for under the equity method. In the twelve months ended December 31, 2015 , there was an unrealized loss of $0.6 million to the value of the Company’s investment in Chaspark ( December 31, 2014 — $ Nil ). The adjusted carrying value approximates fair value. Silverton. On September 10, 2013, the Company established Silverton, a Bermuda domiciled special purpose insurer , formed to provide additional collateralized capacity to support Aspen Re’s reinsurance business through retrocession agreements which will be collateralized and funded by Silverton through the issuance of one or more series of loan notes. Silverton is a non-rated insurer and the risks are fully collateralized by way of funds held in trust for the benefit of Aspen Bermuda and/or Aspen U.K., as the case may be. The proceeds of $65.0 million (of which $50.0 million was issued to third parties) from the issuance of Silverton’s Series 2014-1 Participating Notes on December 27, 2013 (“2014 Loan Notes”) were deposited into a collateral account to fund Silverton’s obligations under a retrocession property quota share agreement entered into with Aspen Bermuda effective January 1, 2014. The holders of the 2014 Loan Notes participate in any profit or loss generated by Silverton attributable to the operations of Silverton’s Series 2014-1 Segregated Account. Any existing value of the 2014 Loan Notes will be returned to the noteholders in installments after the expiration of the risk period of the retrocession agreement issued by Silverton for the related series with the final payment being contractually due on the September 16, 2016 maturity date. The fair value of the 2014 Loan Notes at December 31, 2015 was $0.8 million (of which $0.6 million is held by external investors). During the twelve months ended December 31, 2015 , Silverton distributed $88.1 million (of which $67.8 million was distributed to external investors) to its noteholders. Of the remaining $0.6 million due to external investors, $0.6 million has been classified as a current liability in the Company’s consolidated financial statements. The total aggregate unpaid balance of the 2014 Loan Notes held by third parties and those held by Aspen Holdings is $0.8 million . The Company’s maximum loss exposure to the 2014 Loan Notes is $0.2 million which is the fair value of its holdings as at December 31, 2015 . The proceeds of $85.0 million (of which $70.0 million was issued to third parties) from the issuance of Silverton’s Series 2015-1 Participating Notes on December 23, 2014 (“2015 Loan Notes”) were deposited into a collateral account to fund Silverton’s obligations under a retrocession property quota share agreement entered into with Aspen Bermuda effective January 1, 2015. The holders of the 2015 Loan Notes participate in any profit or loss generated by Silverton attributable to the operations of Silverton’s Series 2015-1 Segregated Account. Any existing value of the 2015 Loan Notes will be returned to the noteholders after the expiration of the risk period of the retrocession agreement issued by Silverton for the related series with the final payment being contractually due on the September 18, 2017 maturity date. The fair value of the 2015 Loan Notes at December 31, 2015 was $109.0 million (of which $89.8 million is held by external investors). Using current loss estimates Silverton will distribute $106.4 million (of which $87.6 million is held by external investors) to its noteholders during 2016. Of the $89.8 million of 2015 Loan Notes held by external investors, $86.8 million has been classified as a current liability in the Company’s consolidated financial statements with a balance of $3.0 million as long term debt. The total aggregate unpaid balance of the 2015 Loan Notes held by third parties and those held by Aspen Holdings is $109.0 million . The Company’s maximum loss exposure to the 2015 Loan Notes is $19.2 million which is the fair value of its holdings as at December 31, 2015 . The proceeds of $125.0 million (of which $100.0 million was issued to third parties) from the issuance of Silverton’s Series 2016-1 Participating Notes on December 22, 2015 (“2016 Loan Notes”) were deposited into a collateral account to fund Silverton’s obligations under a retrocession property quota share agreement entered into with Aspen Bermuda and Aspen U.K. effective January 1, 2016. The holders of the 2016 Loan Notes participate in any profit or loss generated by Silverton attributable to the operations of Silverton’s Series 2016-1 Segregated Account. Any existing value of the 2016 Loan Notes will be returned to the noteholders after the expiration of the risk period of the retrocession agreement issued by Silverton for the related series with the final payment being contractually due on the September 17, 2018 maturity date. The fair value of the 2016 Loan Notes at December 31, 2015 was $125.0 million (of which $100.0 million is held by external investors). The $100.0 million of the 2016 Loan Notes held by external investors is classified as long term debt in the Company’s consolidated financial statements. The total aggregate unpaid balance of the 2016 Loan Notes held by third parties and those held by Aspen Holdings is $125.0 million . The Company’s maximum loss exposure to the 2016 Loan Notes is $25.0 million which is the fair value of its holdings as at December 31, 2015 . The Company has determined that Silverton has the characteristics of a VIE that are addressed by the guidance in ASC 810, Consolidation . The Company concluded that it is the primary beneficiary and has consolidated the subsidiary upon its formation as it owns 100% of the voting shares, 100% of the issued share capital and has a significant financial interest and the power to control Silverton. The Company has no other obligation to provide financial support to Silverton. Neither the creditors nor beneficial interest holders of Silverton have recourse to the Company’s general credit. In the event of either an extreme catastrophic property reinsurance event or severe credit related event there is a risk that Aspen Bermuda and/or Aspen U.K., as the case may be, would be unable to recover losses from Silverton. These two risks are mitigated as follows: i. Silverton has collateralized the aggregate limit provided to Aspen Bermuda and/or Aspen U.K. by way of a trust in favor of Aspen Bermuda as the beneficiary; ii. the trustee is a large, well-established regulated entity; and iii. all funds within the trust account are bound by investment guidelines restricting investments to one of the institutional class money market funds run by large international investment managers. For further information regarding the loan notes attributable to the third-party investments in Silverton, refer to Note 8, “Fair Value Measurements” of these consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The Company’s estimates of fair value for financial assets and liabilities are based on the framework established in the fair value accounting guidance included in ASC Topic 820, “ Fair Value Measurements and Disclosures .” The framework prioritizes the inputs, which refer broadly to assumptions market participants would use in pricing an asset or liability, into three levels. The Company considers prices for actively traded securities to be derived based on quoted prices in an active market for identical assets, which are Level 1 inputs in the fair value hierarchy. The majority of these securities are valued using prices supplied by index providers. The Company considers prices for other securities that may not be as actively traded which are priced via pricing services, index providers, vendors and broker-dealers, or with reference to interest rates and yield curves, to be derived based on inputs that are observable for the asset, either directly or indirectly, which are Level 2 inputs in the fair value hierarchy. The majority of these securities are also valued using prices supplied by index providers. The Company considers securities, other financial instruments and derivative insurance contracts subject to fair value measurement whose valuation is derived by internal valuation models to be based largely on unobservable inputs, which are Level 3 inputs in the fair value hierarchy. The following tables present the level within the fair value hierarchy at which the Company’s financial assets and liabilities are measured on a recurring basis at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,123.1 $ — $ — $ 1,123.1 U.S. agency — 158.7 — 158.7 Municipal — 26.6 — 26.6 Corporate — 2,660.6 — 2,660.6 Non-U.S. government-backed corporate — 82.1 — 82.1 Foreign government 449.5 194.7 — 644.2 Asset-backed — 76.0 — 76.0 Non-agency commercial mortgage-backed — 26.7 — 26.7 Agency mortgage-backed — 1,153.1 — 1,153.1 Total fixed income securities available for sale, at fair value 1,572.6 4,378.5 — 5,951.1 Short-term investments available for sale, at fair value 130.5 32.4 — 162.9 Equity investments available for sale, at fair value — — — — Held for trading financial assets, at fair value U.S. government 27.3 — — 27.3 U.S. agency — — — — Municipal — 0.5 — 0.5 Corporate — 558.2 — 558.2 Foreign government 73.8 105.7 — 179.5 Asset-backed — 20.5 — 20.5 Bank loans — 2.0 — 2.0 Total fixed income securities trading, at fair value 101.1 686.9 — 788.0 Short-term investments trading, at fair value 7.4 2.1 — 9.5 Equity investments trading, at fair value 736.4 — — 736.4 Catastrophe bonds trading, at fair value — 55.4 — 55.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 8.8 — 8.8 Derivatives at fair value — interest rate swaps — 0.4 — 0.4 Liabilities under derivative contracts — foreign exchange contracts — (4.0 ) — (4.0 ) Loan notes issued by variable interest entities, at fair value — — (103.0 ) (103.0 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (87.6 ) (87.6 ) Total $ 2,548.0 $ 5,160.5 $ (190.6 ) $ 7,517.9 There were no maturities or transfers between Level 1, Level 2 and Level 3 during the twelve months ended December 31, 2015 . The Company settled $67.8 million Level 3 liabilities in respect to the loan notes issued by the VIEs for the twelve months ended December 31, 2015 . As at December 31, 2015 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted of the loan notes issued by the VIEs. At December 31, 2014 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,094.4 $ — $ — $ 1,094.4 U.S. agency — 197.4 — 197.4 Municipal — 31.5 — 31.5 Corporate — 2,319.4 — 2,319.4 Non-U.S. government-backed corporate — 78.0 — 78.0 Foreign government 456.5 209.2 — 665.7 Asset-backed — 143.5 — 143.5 Non-agency commercial mortgage-backed — 44.8 — 44.8 Agency mortgage-backed — 1,055.3 — 1,055.3 Total fixed income securities available for sale, at fair value 1,550.9 4,079.1 — 5,630.0 Short-term investments available for sale, at fair value 229.3 29.0 — 258.3 Equity investments available for sale, at fair value 109.9 — — 109.9 Held for trading financial assets, at fair value U.S. government — — — — U.S. agency — 0.2 — 0.2 Municipal — 1.1 — 1.1 Corporate — 529.8 — 529.8 Foreign government 36.1 104.0 — 140.1 Asset-backed — 14.7 — 14.7 Bank loans — 85.1 — 85.1 Total fixed income securities trading, at fair value 36.1 734.9 — 771.0 Short-term investments trading, at fair value 0.1 0.1 — 0.2 Equity investments trading, at fair value 616.0 — — 616.0 Catastrophe bonds trading, at fair value — 34.8 — 34.8 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 7.9 — 7.9 Derivatives at fair value — interest rate swaps — 0.1 — 0.1 Liabilities under derivative contracts — foreign exchange contracts — (14.3 ) — (14.3 ) Loan notes issued by variable interest entities, at fair value — — (70.7 ) (70.7 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (67.9 ) (67.9 ) Total $ 2,542.3 $ 4,871.6 $ (138.6 ) $ 7,275.3 There were no maturities, settlements or transfers between Level 1, Level 2 and Level 3 during the twelve months ended December 31, 2014 . As at December 31, 2014 there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted of the loan notes issued by the VIEs. The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the twelve months ended December 31, 2015 : Reconciliation of Liabilities Using Level 3 Inputs Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 ($ in millions) Balance at the beginning of the period (1) $ 138.6 $ 50.0 Distributed to third party (67.8 ) — Loan notes issued during the period 100.0 70.0 Total change in fair value included in the statement of operations 19.8 18.6 Balance at the end of the period (1) $ 190.6 $ 138.6 (1) The amount classified as other payables was $87.6 million and $67.9 million as at December 31, 2015 and December 31, 2014 , respectively. Valuation of Fixed Income Securities . The Company’s fixed income securities are classified as either available for sale or trading and are carried at fair value. At December 31, 2015 and December 31, 2014 , the Company’s fixed income securities were valued by pricing services, index providers or broker-dealers using standard market conventions. The market conventions utilize market quotations, market transactions in comparable instruments and various relationships between instruments including, but not limited to, yield to maturity, dollar prices and spread prices in determining value. Independent Pricing Services and Index Providers. The underlying methodology used to determine the fair value of securities in the Company’s available for sale and trading portfolios by the pricing services and index providers the Company uses is very similar. Pricing services will gather observable pricing inputs from multiple external sources, including buy and sell-side contacts and broker-dealers, in order to develop their internal prices. Index providers are those firms which provide prices for a range of securities within one or more asset classes, typically using their own in-house market makers (traders) as the primary pricing source for the indices, although ultimate valuations may also rely on other observable data inputs to derive a dollar price for all index-eligible securities. Index providers without in-house trading desks will function similarly to a pricing service in that they will gather their observable pricing inputs from multiple external sources. All prices for the Company’s securities attributed to index providers are for an individual security within the respective indices. Pricing services and index providers provide pricing for less complex, liquid securities based on market quotations in active markets. Pricing services and index providers supply prices for a broad range of securities including those for actively traded securities, such as Treasury and other Government securities, in addition to those that trade less frequently or where valuation includes reference to credit spreads, pay down and pre-pay features and other observable inputs. These securities include Government Agency, Municipals, Corporate and Asset-Backed Securities. For securities that may trade less frequently or do not trade on a listed exchange, these pricing services and index providers may use matrix pricing consisting of observable market inputs to estimate the fair value of a security. These observable market inputs include: reported trades, benchmark yields, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, reference data, and industry and economic factors. Additionally, pricing services and index providers may use a valuation model such as an option adjusted spread model commonly used for estimating fair values of mortgage-backed and asset-backed securities. Neither the Company, nor its index providers, derives dollar prices using an index as a pricing input for any individual security. Broker-Dealers. The Company obtains quotes from broker-dealers who are active in the corresponding markets when prices are unavailable from independent pricing services or index providers. Generally, broker-dealers value securities through their trading desks based on observable market inputs. Their pricing methodologies include mapping securities based on trade data, bids or offers, observed spreads and performance of newly issued securities. They may also establish pricing through observing secondary trading of similar securities. Quotes from broker-dealers are non-binding. The Company obtains prices for all of its fixed income investment securities via its third-party accounting service provider, and in the majority of cases receiving a number of quotes so as to obtain the most comprehensive information available to determine a security’s fair value. A single valuation is applied to each security based on the vendor hierarchy maintained by the Company’s third-party accounting service provider. At December 31, 2015 , the Company obtained an average of 2.0 quotes per fixed income investment, compared to 2.0 quotes at December 31, 2014 . Pricing sources used in pricing fixed income investments at December 31, 2015 and December 31, 2014 were as follows: As at December 31, 2015 At December 31, 2014 Index providers 85 % 84 % Pricing services 10 11 Broker-dealers 5 5 Total 100 % 100 % Summary Pricing Information Table. A summary of securities priced using pricing information from index providers at December 31, 2015 and December 31, 2014 is provided below: As at December 31, 2015 At December 31, 2014 Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type ($ in millions, except for percentages) U.S. government $ 1,095.4 95% $ 1,044.4 95% U.S. agency 148.5 94% 186.9 95% Municipal 10.5 39% 13.7 42% Corporate 3,083.5 96% 2,731.1 96% Non-U.S. government-backed corporate 41.7 51% 48.7 62% Foreign government 517.6 63% 504.4 63% Asset-backed 55.3 57% 140.5 89% Non-agency commercial mortgage-backed 22.7 85% 44.8 100% Agency mortgage-backed 742.9 64% 680.6 64% Total fixed income securities $ 5,718.1 85% $ 5,395.1 84% Equities $ 736.4 100% $ 725.9 100% Total fixed income securities and equity investments $ 6,454.5 86% $ 6,121.0 86% The Company, in conjunction with its third-party accounting service provider, obtains an understanding of the methods, models and inputs used by the third-party pricing service and index providers to assess the ongoing appropriateness of vendors’ prices. The Company and its third-party accounting service provider also have controls in place to validate that amounts provided represent fair values. Processes to validate and review pricing include, but are not limited to: • quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated); • comparison of market values obtained from pricing services, index providers and broker-dealers against alternative price sources for each security where further investigation is completed when significant differences exist for pricing of individual securities between pricing sources; • initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; and • comparison of the fair value estimates to the Company’s knowledge of the current market. Prices obtained from pricing services, index providers and broker-dealers are not adjusted by us; however, prices provided by a pricing service, index provider or broker-dealer in certain instances may be challenged based on market or information available from internal sources, including those available to the Company’s third-party investment accounting service provider. Subsequent to any challenge, revisions made by the pricing service, index provider or broker-dealer to the quotes are supplied to the Company’s investment accounting service provider. Management reviews the vendor hierarchy maintained by the Company’s third-party accounting service provider in order to determine which price source provides the most appropriate fair value (i.e., a price obtained from a pricing service with more seniority in the hierarchy will be used over a less senior one in all cases). The hierarchy level assigned to each security in the Company’s available for sale and trading portfolios is based upon its assessment of the transparency and reliability of the inputs used in the valuation as of the measurement date. The hierarchy of index providers and pricing services is determined using various qualitative and quantitative points arising from reviews of the vendors conducted by the Company’s third-party accounting service provider. Vendor reviews include annual onsite due diligence meetings with index providers and pricing services vendors covering valuation methodology, operational walkthroughs and legal and compliance updates. Index providers are assigned the highest priority in the pricing hierarchy due primarily to availability and reliability of pricing information. Fixed Income Securities . Fixed income securities are traded on the over-the-counter (“OTC”) market based on prices provided by one or more market makers in each security. Securities such as U.S. Government, U.S. Agency, Foreign Government and investment grade corporate bonds have multiple market makers in addition to readily observable market value indicators such as expected credit spread, except for Treasury securities, over the yield curve. The Company uses a variety of pricing sources to value fixed income securities including those securities that have pay down/prepay features such as mortgage-backed securities and asset-backed securities in order to ensure fair and accurate pricing. The fair value estimates for the investment grade securities in the Company’s portfolio do not use significant unobservable inputs or modeling techniques. U.S. Government and Agency. U.S. government and agency securities consist primarily of bonds issued by the U.S. Treasury and corporate debt issued by agencies such as the Federal National Mortgage Association (“FNMA”), the Federal Home Loan Mortgage Corporation (“FHLMC”) and the Federal Home Loan Bank. As the fair values of U.S. Treasury securities are based on unadjusted market prices in active markets, they are classified within Level 1. The fair values of U.S. government agency securities are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of U.S. government agency securities are classified within Level 2. Municipals. The Company’s municipal portfolio comprises bonds issued by U.S. domiciled state and municipality entities. The fair value of these securities is determined using spreads obtained from broker-dealers, trade prices and the new issue market which are Level 2 inputs in the fair value hierarchy. Consequently, these securities are classified within Level 2. Foreign Government. The issuers for securities in this category are non-U.S. governments and their agencies. The fair values of non-U.S. government bonds, primarily sourced from international indices, are based on unadjusted market prices in active markets and are therefore classified within Level 1. The fair values of the non-U.S. agency securities, again primarily sourced from international indices, are priced using the spread above the risk-free yield curve. As the yields for the risk-free yield curve and the spreads for these securities are observable market inputs, the fair values of non-U.S. agency securities are classified within Level 2. In addition, foreign government securities include a portion of the Emerging Market Debt (“EMD”) portfolio which is also classified within Level 2. Corporate. Corporate securities consist primarily of U.S. and foreign corporations covering a variety of industries and are for the most part priced by index providers and pricing vendors. Some issuers may participate in government programs which guarantee timely payment of principal and interest in the event of a default. The fair values of these securities are generally determined using the spread above the risk-free yield curve. Inputs used in the evaluation of these securities include credit data, interest rate data, market observations and sector news, broker-dealer quotes and trade volumes. In addition, corporate securities include a portion of the EMD portfolio. The Company classifies all of these securities within Level 2. Mortgage-backed Securities. Residential and commercial mortgage-backed securities consist of bonds issued by the Government National Mortgage Association, the FNMA and the FHLMC as well as private non-agency issuers. The fair values of these securities are determined through the use of a pricing model (including Option Adjusted Spread) which uses prepayment speeds and spreads to determine the appropriate average life of the mortgage-backed security. These spreads are generally obtained from broker-dealers, trade prices and the new issue market. As the significant inputs used to price mortgage-backed securities are observable market inputs, these securities are classified within Level 2. Asset-backed Securities. The underlying collateral for the Company’s asset-backed securities consists mainly of student loans, automobile loans and credit card receivables. These securities are primarily priced by index providers and pricing vendors. Inputs to the valuation process include broker-dealer quotes and other available trade information, prepayment speeds, interest rate data and credit spreads. The Company classifies these securities within Level 2. Bank Loans. These are variable rate, senior secured debt instruments issued by non-investment grade companies that are not publicly registered but are the most senior debt in a capital structure and are generally secured by company assets. Although these assets do not trade in as liquid a market as traditional fixed income instruments, they are valued in similar fashion to other fixed maturities, using similar inputs such as yield curves, interest rates and credit spreads. These securities are primarily priced by a third party pricing vendor. Bank loans are therefore classified within Level 2. Short-term Investments. Short-term investments comprise highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase. Short-term investments are valued in a manner similar to the Company’s fixed maturity investments and are classified within Levels 1 and 2. Equity Securities. Equity securities include U.S. and foreign common stocks and are classified either as trading or available for sale and carried at fair value. As at December 31, 2015, all equity securities are classified as trading. These securities are classified within Level 1 as their fair values are based on quoted market prices in active markets from independent pricing sources. At December 31, 2015 , the Company obtained an average of 4.0 quotes per equity investment, compared to 4.0 quotes as at December 31, 2014 . Pricing sources used in pricing equities at December 31, 2015 and December 31, 2014 were all provided by index providers. Catastrophe Bonds. Catastrophe bonds held by the Company are variable rate fixed income instruments with redemption values adjusted based on the occurrence of a covered event, usually windstorms and earthquakes. These bonds have been classified as trading and carried at fair value. Bonds are priced using an average of multiple broker-dealer quotes and as such, are considered Level 2. Foreign Exchange Contracts. The foreign exchange contracts which the Company uses to mitigate currency risk are characterized as OTC due to their customized nature and the fact that they do not trade on a major exchange. These instruments trade in a very deep liquid market, providing substantial price transparency and accordingly are classified as Level 2. Interest Rate Swaps. The interest rate swaps which the Company uses to mitigate interest rate risk are also characterized as OTC and are valued by the counterparty using quantitative models with multiple market inputs. The market inputs, such as interest rates and yield curves, are observable and the valuation can be compared for reasonableness with third party pricing services. Consequently, these instruments are classified as Level 2. Loan Notes Issued by Variable Interest Entities . Silverton, a licensed special purpose insurer, is consolidated into the Company’s group accounts as a VIE. In the fourth quarter of 2013, Silverton issued $65.0 million ( $50.0 million third-party funded) loan notes with a maturity date of September 16, 2016. During the fourth quarter of 2014, Silverton issued an additional $85.0 million ( $70.0 million third-party funded) loan notes with a maturity date of September 18, 2017. During the fourth quarter of 2015, Silverton issued an additional $125.0 million ( $100.0 million third-party funded) loan notes with a maturity date of September 18, 2018. The Company has elected to account for the loan notes at fair value using the guidance as prescribed under ASC 825, Financial Instruments as the Company believes it represents the most meaningful measurement basis for these liabilities. The loan notes are recorded at fair value at each reporting period and, as they are not quoted on an active market and contain significant unobservable inputs, they have been classified as a Level 3 instrument in the fair value hierarchy. The loan notes are unique because their valuation is linked to the specific risks of the Company’s property catastrophe reinsurance contracts. To determine the fair value of the loan notes, the Company runs an internal model which considers the seasonality of the risk assumed under the retrocessional agreements. The seasonality used in the model is determined by applying the percentage of property catastrophe losses planned by the Company’s actuaries to the estimated written premium to determine earned premium for each quarter. The inputs to the internal valuation model are based on Company specific data due to the lack of availability of observable market inputs. Reserves for losses is the most significant unobservable input. An increase in reserves for losses would normally result in a decrease in the fair value of the loan notes while a decrease in reserves would normally result in an increase in the fair value of the loan notes. The observable and unobservable inputs used to determine the fair value of the 2015 Loan Notes and 2014 Loan Notes as at December 31, 2015 and 2014 are presented in the tables below: At December 31, 2015 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 190.6 Internal Valuation Model Gross premiums written (O) $ — $ 38.9 Reserve for losses (U) $ — $ 4.2 Contract period (O) N/A 365 days Initial value of issuance (O) $ 220.0 $ 220.0 At December 31, 2014 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 138.6 Internal Valuation Model Gross premiums written (O) $ — $ 40.0 Reserve for losses (U) $ — $ 4.6 Contract period (O) N/A 365 days Initial value of issuance (O) $ 120.0 $ 120.0 The observable and unobservable inputs represent the potential variation around the inputs used in the valuation model. The 2016 Loan Notes were not on risk as at December 31, 2015 and as no gross premiums were written at that date the minimum value of gross premiums written value was $ Nil . The high premium value represents the actual premiums assumed by Silverton for the 2015 Loan Notes. Reserves for losses for the 2016 Loan Notes were $ Nil as no contracts were written as at December 31, 2015, the high value is the estimate of losses assumed by the 2015 Loan Notes. The contract period is defined in the Silverton loan agreements and the initial value represents the funds received from third parties. |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance The Company purchases retrocession and reinsurance to limit and diversify the Company’s risk exposure and to increase its own insurance and reinsurance underwriting capacity. These agreements provide for recovery of a portion of losses and loss adjustment expenses from reinsurers. As is the case with most reinsurance contracts, the Company remains liable to the extent that reinsurers do not meet their obligations under these agreements, and therefore, in line with its risk management objectives, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. Balances pertaining to reinsurance transactions are reported “gross” on the consolidated balance sheet, meaning that reinsurance recoverable on unpaid losses and ceded unearned premiums are not deducted from insurance reserves but are recorded as assets. For more information on reinsurance recoverables, please refer to Note 21, “Concentrations of Credit Risk — Reinsurance recoverables” of these consolidated financial statements. The effect of assumed and ceded reinsurance on premiums written, premiums earned and insurance losses and loss adjustment expenses is as follows: Twelve Months Ended December 31, 2015 2014 2013 ($ in millions) Premiums written : Direct $ 1,748.4 $ 1,729.9 $ 1,512.8 Assumed 1,248.9 1,172.8 1,133.9 Ceded (351.1 ) (387.5 ) (347.0 ) Net premiums written $ 2,646.2 $ 2,515.2 $ 2,299.7 Premiums earned: Direct $ 1,703.3 $ 1,599.0 $ 1,366.8 Assumed 1,153.5 1,137.6 1,126.6 Ceded (383.5 ) (331.3 ) (321.6 ) Net premiums earned $ 2,473.3 $ 2,405.3 $ 2,171.8 Insurance losses and loss adjustment expenses: Direct $ 980.6 $ 908.2 $ 829.4 Assumed 493.0 496.9 459.4 Ceded (107.4 ) (97.6 ) (65.1 ) Net insurance losses and loss adjustment expenses $ 1,366.2 $ 1,307.5 $ 1,223.7 |
Derivative Contracts
Derivative Contracts | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Interest Rate Swaps Derivatives at Fair Value $ 756.3 $ 0.4 (1) $ 951.3 $ 0.1 (1) Foreign Exchange Contracts Derivatives at Fair Value $ 217.7 $ 8.8 $ 165.8 $ 7.9 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 162.2 $ (2.8 ) $ 237.6 $ (10.5 ) (1) Net of $10.1 million of cash collateral provided to counterparties, Goldman Sachs International ( $256.3 million notional) and Crédit Agricole CIB ( $500.0 million notional) under respective International Swap Dealers Association agreements, as security for the Company’s net liability position ( December 31, 2014 — $22.3 million ). As at December 31, 2015 At December 31, 2014 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 113.6 $ (1.2 ) $ 135.8 $ (3.8 ) (1) (1) Net of $ Nil cash collateral ( December 31, 2014 — $ Nil ). The following tables provide the unrealized and realized gains/(losses) recorded in the statement of operations for the twelve months ended December 31, 2015 and 2014 : Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income Twelve Months Ended Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income December 31, 2015 December 31, 2014 ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives $ 11.6 $ (7.7 ) Interest Rate Swaps Change in Fair Value of Derivatives $ (4.8 ) $ (7.2 ) Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income Twelve Months Ended Derivatives Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income December 31, 2015 December 31, 2014 ($ in millions) Foreign Exchange Contracts General, administrative and corporate expenses / Change in Fair Value of Derivatives $ (4.9 ) $ (0.3 ) Foreign Exchange Contracts Net change from current period hedged transactions $ 2.6 $ (3.8 ) Foreign Exchange Contracts. The Company uses foreign exchange contracts to manage foreign currency risk. A foreign exchange contract involves an obligation to purchase or sell a specified currency at a future date at a price set at the time of the contract. Foreign exchange contracts will not eliminate fluctuations in the value of the Company’s assets and liabilities denominated in foreign currencies but rather allow it to establish a rate of exchange for a future point in time. As at December 31, 2015 , the Company held foreign exchange contracts that were not designated as hedging under ASC 815 with an aggregate value of $379.9 million ( 2014 — $403.4 million ). The foreign exchange contracts are recorded as derivatives at fair value in the balance sheet with changes recorded as a change in fair value of derivatives in the statement of operations. For the twelve months ended December 31, 2015 , the impact of foreign exchange contracts on net income was a gain of $11.6 million ( December 31, 2014 — loss of $7.7 million ). As at December 31, 2015 , the Company held foreign exchange contracts that were designated as hedging under ASC 815 with an aggregate value of $113.6 million ( 2014 — $135.8 million ). The foreign exchange contracts are recorded as derivatives at fair value in the balance sheet with the effective portion recorded in other comprehensive income and the ineffective portion recorded as a change in fair value of derivatives in the statement of operations. The contracts are considered to be effective and therefore, for the twelve months ended December 31, 2015 , the movement in other comprehensive income representing the effective portion was an increase of $2.6 million ( December 31, 2014 — reduction of $3.8 million ). As the foreign exchange contracts settle, the realized gain or loss is reclassified from other comprehensive income into general, administration and corporate expenses of the statement of operations and other comprehensive income. For the twelve months ended December 31, 2015 , the amount recognized within general, administration and corporate expenses for settled foreign exchange contracts was a realized loss of $4.9 million ( December 31, 2014 — loss of $0.3 million recognized within change in fair value of derivatives). Interest Rate Swaps. As at December 31, 2015 , the Company held fixed for floating interest rate swaps with a total notional amount of $756.3 million ( December 31, 2014 — $951.3 million ) that are due to mature between January 20, 2016 and November 9, 2020 . The interest rate swaps are used in the ordinary course of the Company’s investment activities to partially mitigate the negative impact of rises in interest rates on the market value of the Company’s fixed income portfolio. For the twelve months ended December 31, 2015 , there was a loss of $4.8 million ( December 31, 2014 — loss of $7.2 million ). During 2015 , $195.0 million in notional amount of our interest rate swaps rolled off. As at December 31, 2015 , cash collateral with a fair value of $10.1 million was held by the Company’s counterparties to support the current valuation of the interest rate swaps ( December 31, 2014 — $22.3 million ). As at December 31, 2015 , no non-cash collateral was transferred to the Company by its counterparties ( December 31, 2014 — $ Nil ). Transfers of cash collateral are recorded on the consolidated balance sheet within Derivatives at Fair Value, while transfers in respect of non-cash collateral are disclosed but not recorded. As at December 31, 2015 , no amount was recorded in the consolidated balance sheet for the pledged assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2015 and 2014 : Twelve Months Ended Twelve Months Ended December 31, 2014 ($ in millions) Balance at the beginning of the period $ 299.0 $ 262.2 Acquisition costs deferred 545.7 488.0 Amortization of deferred policy acquisition costs (483.6 ) (451.2 ) Balance at the end of the period $ 361.1 $ 299.0 |
Reserves for Losses and Adjustm
Reserves for Losses and Adjustment Expenses | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reserves for Losses and Adjustment Expenses | Reserves for Losses and Loss Adjustment Expenses The following table represents a reconciliation of beginning and ending consolidated loss and LAE reserves for the twelve months ended December 31, 2015 , 2014 and 2013 : As at December 31, 2015 2014 2013 ($ in millions) Provision for losses and LAE at the start of the year $ 4,750.8 $ 4,678.9 $ 4,779.7 Less reinsurance recoverable (350.0 ) (332.7 ) (499.0 ) Net loss and LAE at the start of the year 4,400.8 4,346.2 4,280.7 Net loss and LAE expenses (disposed) — (24.2 ) (34.6 ) Provision for losses and LAE for claims incurred: Current year 1,522.7 1,411.6 1,331.4 Prior years (156.5 ) (104.1 ) (107.7 ) Total incurred 1,366.2 1,307.5 1,223.7 Losses and LAE payments for claims incurred: Current year (141.9 ) (112.1 ) (172.8 ) Prior years (966.6 ) (995.6 ) (912.3 ) Total paid (1,108.5 ) (1,107.7 ) (1,085.1 ) Foreign exchange (gains)/losses (75.1 ) (121.0 ) (38.5 ) Net losses and LAE reserves at the end of the year 4,583.4 4,400.8 4,346.2 Plus reinsurance recoverable on unpaid losses at the end of the year 354.8 350.0 332.7 Provision for losses and LAE at the end of the year $ 4,938.2 $ 4,750.8 $ 4,678.9 For the twelve months ended December 31, 2015 , there was a reduction of $156.5 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to $104.1 million for the twelve months ended December 31, 2014 . The Company has not assumed any loss reserves as part of any transaction and therefore there have been no proposals of transfers of reserves relating to commutations during the twelve months ended December 31, 2015 ( December 31, 2014 — $24.2 million , December 31, 2013 — $34.6 million ). For additional information on the reserve releases, please refer to Part II, Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Reserves for Losses and Loss Adjustment Expenses” above. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Aspen Holdings and Aspen Bermuda are incorporated under the laws of Bermuda. Under current Bermudian law, they are not taxed on any Bermudian income or capital gains and they have received an undertaking from the Bermudian Minister of Finance that, in the event of any Bermudian income or capital gains taxes being imposed, they will be exempt from those taxes until March 31, 2035. The Company’s U.S. operating companies are subject to United States corporate tax at a rate of 34% . Under current tax law, Aspen U.K., AUL and Aspen Managing Agency Limited (“AMAL”) are taxed at the U.K. corporate tax rate which has reduced from 21% to 20% effective as at April 1, 2015. This rate reduction was enacted on July 17, 2013 and has been reflected in current year income tax disclosures. Further reductions of the U.K. corporate tax rate to 19% from April 1, 2017 and 18% from April 1, 2020 were enacted on November 18, 2015. These reductions have been reflected in measuring the deferred taxes. Total income tax expense for the twelve months ended December 31, 2015 , 2014 and 2013 is allocated as follows: Twelve Months Ended December 31, 2015 2014 2013 ($ in millions) Income tax expense on continuing operations $ 14.4 $ 12.1 $ 13.4 Income tax (benefit) on other comprehensive income (15.3 ) (5.1 ) (13.7 ) Income tax (benefit) charged directly to shareholders’ equity (1.9 ) (1.2 ) (1.5 ) Total income tax expense/(benefit) $ (2.8 ) $ 5.8 $ (1.8 ) Income/(loss) from operations before income tax on continuing operations and income tax expense/(benefit) attributable to that income/(loss) consists of: Twelve Months Ended December 31, 2015 (Loss)/income before tax Current income tax expense Deferred income tax (benefit) Total income tax expense ($ in millions) Bermuda $ 283.9 $ — $ — $ — U.S. (32.7 ) (0.2 ) — (0.2 ) U.K. 86.3 23.5 (8.9 ) 14.6 Total $ 337.5 $ 23.3 $ (8.9 ) $ 14.4 Twelve Months Ended December 31, 2014 (Loss)/income before tax Current income tax expense Deferred income tax expense Total income tax expense ($ in millions) Bermuda $ 376.2 $ — $ — $ — U.S. (44.1 ) (1.5 ) — (1.5 ) U.K. 35.8 24.9 (11.3 ) 13.6 Total $ 367.9 $ 23.4 $ (11.3 ) $ 12.1 Twelve Months Ended December 31, 2013 (Loss)/income Current Deferred Total ($ in millions) Bermuda $ 353.9 $ — $ — $ — U.S. (45.7 ) — — — U.K. 34.5 9.7 3.7 13.4 Total $ 342.7 $ 9.7 $ 3.7 $ 13.4 In the above tables, branches of Aspen U.K. have been included under the U.K. category on the basis that foreign taxes of the branches are not material and their income is also subject to taxation in the U.K. The tax rate in Bermuda, the Company’s country of domicile, is zero. Application of the statutory tax rate for operations in other jurisdictions produces a differential to the expected tax (benefit)/expense as shown in the table below. In accordance with Rule 4-08(h) of Regulation S-X, the reconciliation between the income tax expense and the expected tax expense at the statutory rate for the Company is provided below: Twelve Months Ended December 31, 2015 2014 2013 Income Tax Reconciliation ($ in millions) Expected tax (benefit)/expense $ — $ — $ — Overseas statutory tax rates differential 6.4 (7.3 ) (7.5 ) Prior year adjustments (1) (4.5 ) (0.6 ) (4.2 ) Valuation allowance on U.S. deferred tax assets 11.8 12.7 15.1 Unrecognized tax benefits — 5.3 8.5 Valuation allowance on foreign tax credits 0.6 — 2.6 Nondeductible expenses 1.3 1.8 1.6 Non-taxable items (1.3 ) — (0.2 ) Impact of changes in statutory tax rates 0.1 0.2 (2.5 ) Total income tax expense $ 14.4 $ 12.1 $ 13.4 ________________ (1) The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of the Company’s Annual Report on Form 10-K. The final tax liabilities may differ from the estimated tax expense included in the Annual Report on Form 10-K and may result in prior year adjustments being reported. For 2015, the prior period adjustment of $4.5 million includes a $1.7 million revision to the U.S. Net Operating Losses position against which a valuation allowance is held. On the basis that both the estimated and actual net tax position for the U.S. operations was $ Nil due to the recognition of a full valuation allowance against losses, the estimate is still considered to be materially accurate. The remaining $2.8 million relates to the determination of results under U.K. GAAP, upon which the U.K. tax returns are based. These items can only be reasonably determined on an accurate basis after the Company’s Annual Report on Form 10-K has been filed. For 2014, the prior period adjustment of $0.6 million relates to the determination of results under U.K. GAAP, upon which the U.K. tax returns are based. These items can only be reasonably determined on an accurate basis after the Company’s Annual Report on Form 10-K has been filed. For 2013 , the prior period adjustment of $4.2 million includes a $2.0 million credit in respect of a change of accounting policy related to deferred acquisition costs under U.K. GAAP and a $2.0 million credit relating to the final determination of the equalization reserves required under U.K. GAAP, which can only be reasonably calculated on an accurate basis once the Prudential Regulation Authority Return has been finalized. Finalization of this return takes place after the Company’s Annual Report on Form 10-K has been filed. Unrecognized tax benefits . Unrecognized tax benefits relate to prior period tax positions for the years 2010 to 2013. As at December 31, 2014 , they totaled $29.2 million , representing $15.3 million in relation to tax deductions for certain interest payments, $13.5 million relating to the adjustment to equity reserves and $0.4 million relating to tax deductions for certain expenses. During the year ended December 31, 2015 , there has been no change in unrecognized benefits and the balance remains at $29.2 million . All of the unrecognized tax benefits would reduce the effective tax rate if recognized. It is possible that the entire balance of unrecognized tax benefits, totaling $29.2 million , could be eliminated following completion of tax examinations into these matters. During the twelve months ended December 31, 2015 , the Company did not recognize or accrue any costs in respect of interest or penalties relating to underpayments of income taxes ( December 31, 2014 — $ Nil ). Twelve Months Ended December 31, 2015 2014 ($ in millions) Unrecognized tax benefits balance at January 1 $ 29.2 $ 23.9 Gross increases/(decreases) for tax positions of prior years — 5.3 Gross increases/(decreases) for tax positions of current year — — Unrecognized tax benefits balance at December 31 $ 29.2 $ 29.2 The Company accrues interest and penalties related to an underpayment of income taxes, if applicable, as income tax expenses. The Company does not believe it will be subject to any penalties in any open tax years and has not accrued any such amounts during the twelve months ended December 31, 2015 ( December 31, 2014 — $ Nil ). Income tax returns that have been filed by the U.S. operating subsidiaries are subject to examination for 2011 and later tax years. The U.K. operating subsidiaries’ income tax returns are subject to examination for 2014. This is in addition to the tax returns against which tax benefits have not been recognized. |
Deferred Taxation
Deferred Taxation | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Income Taxes and Other Assets [Abstract] | |
Deferred Taxation | Deferred Taxation The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities are presented in the following table: As at December 31, 2015 2014 ($ in millions) Deferred tax assets: Share based payments $ 4.0 $ 2.8 Operating loss carryforwards (1) 108.3 101.1 Loss reserves 0.5 1.8 Accrued expenses 7.9 11.2 Foreign tax credit carryforwards 16.3 13.0 Unearned premiums 6.0 4.9 Deferred policy acquisition costs 3.2 — Office properties and equipment 7.1 8.7 Other temporary differences 9.8 6.7 Total gross deferred tax assets 163.1 150.2 Less valuation allowance (1) (124.4 ) (113.2 ) Net deferred tax assets $ 38.7 $ 37.0 Deferred tax liabilities: Equalization provision reserves $ (30.9 ) $ (32.1 ) Unrealized (gains) on investments (0.2 ) (2.2 ) Intangible assets (other) (2.5 ) (1.5 ) Deferred policy acquisition costs — (2.0 ) Other temporary differences (1.4 ) (2.3 ) Total gross deferred tax (liabilities) (35.0 ) (40.1 ) Net deferred tax asset/(liability) $ 3.7 $ (3.1 ) (1 ) The comparative balances have been re-presented to disclose a $6.7 million valuation allowance established against U.K. deferred tax assets previously disclosed within operating loss carryforwards. Deferred tax liabilities and assets represent the tax effect of temporary differences between the value of assets and liabilities for financial statement purposes and such values as measured by U.K. and U.S. tax laws and regulations. Deferred tax assets and liabilities from the same tax jurisdiction have been netted off resulting in assets and liabilities being recorded under the deferred taxation captions on the consolidated balance sheet. In assessing the realizability of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences and carryforwards become deductible or creditable. Management considers the scheduled reversal of existing taxable temporary differences, projected future taxable income, and tax-planning strategies in making this assessment. Substantially all of our deferred tax assets not reduced by a valuation allowance are supported by the scheduled reversal of existing taxable temporary differences. At December 31, 2015 , the Company had net operating losses carried forward for U.S. federal income tax purposes of $291.4 million ( 2014 — $267.4 million ) which are available to offset future U.S. federal taxable income, if any, with expiry periods between 2026 and 2035 . For U.S. federal income tax purposes, the Company also has capital loss carryforwards of $0.3 million ( 2014 — $1.3 million ), with expiry periods between 2016 and 2020, and charitable contribution carryforwards of $0.5 million ( 2014 — $0.6 million ), with expiry periods between 2016 and 2020. A full valuation allowance on U.S. deferred tax assets (which includes these loss carryforwards) has been recognized at December 31, 2015 as management believes that it is more likely than not that a tax benefit will not be realized. A valuation allowance of $118.5 million has been established against net U.S. deferred tax assets ( 2014 — $106.5 million ). The increase in valuation allowance totals $12.0 million ( 2014 — $12.7 million ) with $11.8 million ( 2014 — $12.7 million ) recorded in the consolidated income statement and $0.2 million ( 2014 —$ Nil ) recorded in other comprehensive income. At December 31, 2015 , the Company had net operating losses carried forward for U.K. corporate tax purposes of $46.0 million ( 2014 — $50.3 million ) which are available to offset future U.K. corporate income. A valuation allowance of $5.9 million ( 2014 — $6.7 million ) has been established against U.K. deferred tax assets in this regard. The decrease in valuation allowance totals $0.8 million ( 2014 — $6.7 million increase) with $0.8 million ( 2014 — $6.7 million ) recorded in the consolidated income statement and $ Nil ( 2014 — $ Nil ) recorded in other comprehensive income. The U.K. and U.S. valuation allowance combined total is $124.4 million ( 2014 — $113.2 million ). AIUK’s business includes effectively connected income in the U.S. and therefore AIUK has a U.S. branch for U.S. tax purposes (“U.S. Branch”). The U.S. Branch has cumulative earnings and profits of $46.6 million as at December 31, 2015 , which could become subject to an additional ‘branch profits tax’, estimated to be $2.3 million , on such income remaining after any U.S. corporate income tax liability. However, based on the plans currently in place, the U.S. Branch profits are being, and AIUK intends they will continue to be, indefinitely reinvested in the U.S. Branch such that there is no branch profits tax liability arising in the current period or in the foreseeable future. Accordingly, Aspen has determined that as permitted by ASC 740, no provision for branch profits tax is required as the liability is expected to be indefinitely postponed. |
Capital Structure
Capital Structure | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Capital Structure | Capital Structure The following table provides a summary of the Company’s authorized and issued share capital at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 Number $ in Thousands Number $ in Thousands Authorized share capital: Ordinary Shares 0.15144558¢ per share 969,629,030 1,469 969,629,030 1,469 Non-Voting Shares 0.15144558¢ per share 6,787,880 10 6,787,880 10 Preference Shares 0.15144558¢ per share 100,000,000 152 100,000,000 152 Total authorized share capital 1,631 1,631 Issued share capital: Issued ordinary shares of 0.15144558¢ per share 60,918,373 92 62,017,368 94 Issued 7.401% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 5,327,500 8 5,327,500 8 Issued 7.250% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 6,400,000 10 6,400,000 10 Issued 5.95% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 11,000,000 17 11,000,000 17 Total issued share capital 127 129 Additional paid-in capital as at December 31, 2015 was $1,075.3 million ( December 31, 2014 — $1,134.3 million ). Additional paid-in capital includes the aggregate liquidation preferences of the Company’s preference shares of $568.2 million ( December 31, 2014 — $568.2 million ) less issue costs of $12.4 million ( December 31, 2014 — $12.4 million ). (a) Ordinary Shares The following table summarizes transactions in the Company’s ordinary shares during the years ended December 31, 2015 and 2014 : Number of Ordinary Shares 2015 2014 Ordinary shares in issue at the beginning of the year 62,017,368 65,546,976 Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan 649,394 756,676 Ordinary shares issued to non-employee directors 41,944 3,573 Ordinary shares repurchased (1,790,333 ) (4,289,857 ) Ordinary shares in issue at the end of the year 60,918,373 62,017,368 Ordinary Share Repurchases in 2014 . Under open market repurchases, the Company acquired and cancelled a total of 4,289,857 ordinary shares for the twelve months ended December 31, 2014. The total consideration paid for the twelve months ended December 31, 2014 was $ 180.9 million with the average price for the twelve months ended December 31, 2014 being $ 42.16 . The Company had $43.3 million remaining under its current share repurchase authorization as at December 31, 2014. On February 5, 2015, the Company announced a new share repurchase program of $500 million . Ordinary Share Repurchases in 2015. On February 5, 2015 , the Company and the Board of Directors agreed a new share repurchase authorization program of $500.0 million . The total share repurchase authorization, which was effective immediately through February 6, 2017, permits the Company to effect the repurchases from time to time through a combination of transactions, including open market repurchases, privately negotiated transactions and accelerated share repurchase transactions. During 2015, the Company repurchased 1,790,333 ordinary shares for a total consideration of $83.7 million at an average price of $46.74 . As at December 31, 2015, the Company had $416.3 million remaining under its current share repurchase authorization. (b) Preference Shares Preference Shares Redemption. During 2005 and 2006, the Company issued 4.6 million 5.625% Perpetual Preferred Income Equity Replacement Securities (“PIERS”). The PIERS were convertible at the Company’s option if, at any time on or after January 1, 2009, the closing sale price of the Company’s ordinary shares equaled or exceeded 130% of the then prevailing conversion price for 20 trading days during any consecutive 30 -trading day period, as well as the last day of such 30 -day period. The PIERS were dilutive to the Company’s ordinary shares when the Company’s share price exceeded the prevailing conversion price and therefore, as the Company’s share price was generally above the 130% conversion price test, they were included in the Company’s fully diluted share count until the Company announced it would mandatorily redeem the PIERS. On April 25, 2013, the Company announced it would mandatorily redeem all of its PIERS outstanding based on the terms of the PIERS. Each holder of a PIERS unit received $50.00 , equating to a total payment of $230.0 million in cash plus a number of the Company’s ordinary shares based on the conversion rate calculated in accordance with the average trading price of the Company’s ordinary shares over a 20 -trading day settlement period following the Company’s issuance of the press release announcing the mandatory conversion. The conversion rate was 1.7121 shares of the Company’s ordinary shares per $50.00 liquidation preference of the PIERS equating to a total issuance of 1,835,860 ordinary shares. The Company settled the amount on May 30, 2013. In accordance with the terms of the PIERS, no further dividends were paid on the PIERS following the announcement of their mandatory redemption. As a result of the redemption, the difference of $7.1 million between the capital raised upon issuance of the PIERS, net of original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million was reclassified from additional paid-in capital to retained earnings. Preference Shares Issuance. On November 15, 2006, the Company issued 8,000,000 preference shares with a liquidation preference of $25 for an aggregate amount of $200.0 million . Each share will receive dividends on a non-cumulative basis only when declared by our Board of Directors initially at an annual rate of 7.401% (the “ 7.401% Preference Shares”) (NYSE: AHL-PRA). Starting on January 1, 2017, the dividend rate for the 7.401% Preference Shares will be paid at a floating annual rate, reset quarterly, equal to 3-month LIBOR plus 3.28% . The 7.401% Preference Shares have no stated maturity but are callable at the option of the Company on or after the 10th anniversary of the date of issuance. The Company raised proceeds of $196.3 million , net of total costs of $3.7 million , from this issuance. On March 31, 2009, the Company repurchased 2,672,500 of its 7.401% Preference Shares at a price of $12.50 per share. For earnings per share purposes, the repurchase resulted in a $31.5 million gain, net of a non-cash charge of $1.2 million reflecting the write off of the pro-rata portion of the original issuance costs of the 7.401% Preference Shares. On April 11, 2012, the Company issued 6,400,000 shares of 7.250% Perpetual Non-Cumulative Preference Shares (the “ 7.250% Preference Shares”) (NYSE: AHL-PRB). The 7.250% Preference Shares have a liquidation preference of $25 per share. Net proceeds were $154.5 million , comprising $160.0 million of total liquidation preference less $5.5 million of issue expenses. The 7.250% Preference Shares ranked equally with the PIERS and rank equally with the 7.401% Preference Shares and the 5.95% Preference Shares, discussed below, and have no fixed maturity date. The Company may redeem all or a portion of the Preference Shares at a redemption price of $25 per share on or after July 1, 2017. In the event of liquidation of the Company, the holders of outstanding preference shares would have preference over the ordinary shareholders and would receive a distribution equal to the liquidation preference per share, subject to availability of funds. In connection with the issuance of the 7.401% Preference Shares, the Company entered into a Replacement Capital Covenant, initially for the benefit of persons that hold the Company’s Senior Notes, that the Company will not redeem or repurchase the 7.401% Preference Shares on or before November 15, 2046, unless, during the six months prior to the date of that redemption or repurchase, the Company receives a specified amount of proceeds from the sale of ordinary shares. On August 17, 2012, the Company designated the 6.00% Senior Notes due December 15, 2020, as the covered debt in accordance with the terms of the Replacement Capital Covenant. On May 2, 2013, the Company issued 11.0 million shares of 5.95% of Fixed-to-Floating Perpetual Non-Cumulative Preference Shares (the “ 5.95% Preference Shares”). Each preference shareholder will receive dividends on a non-cumulative basis only when declared by the Board of Directors initially at an annual fixed rate of 5.95% until July 1, 2023 at which time a floating rate, reset quarterly, of 3-month LIBOR plus 4.06% will commence per annum. The 5.95% Preference Shares have a liquidation preference of $25.00 per share and net proceeds were $270.6 million (comprising $275.0 million of total liquidation preference less $4.4 million of issue expenses). The Company used $230.0 million of the net proceeds from this offering for settling the cash portion of the mandatory conversion of the PIERS. The 5.95% Preference Shares rank equally with preference shares previously issued by the Company and have no fixed maturity date. The Company may redeem all or a portion of the 5.95% Preference Shares at a redemption price of $25.00 per share on or after July 1, 2023. The Company has listed the 5.95% Preference Shares on the New York Stock Exchange under the symbol “AHLPRC.” Rights Agreement. On April 17, 2014, the Board of Directors of the Company resolved to issue one preferred share purchase right (a “Right”) for each outstanding ordinary share, and adopted a shareholder rights plan, as set forth in the Rights Agreement dated as of April 17, 2014. Each Right will allow its holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preference Shares for $160 , once the Rights become exercisable. The Rights will not be exercisable until 10 business days after the public announcement that a person or group has acquired the beneficial ownership of 10% or more of the outstanding ordinary shares of the Company (or 15% in the case of passive institutional investors). The Rights may be redeemed at any time at the discretion of the Board of Directors of the Company. As of December 31, 2015, no Rights have been exercisable or exercised. The rights agreement expired on April 16, 2015. |
Statutory Requirements and Divi
Statutory Requirements and Dividends Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Statutory Requirements and Dividends Restrictions | Statutory Requirements and Dividends Restrictions As a holding company, Aspen Holdings relies on dividends and other distributions from its Operating Subsidiaries to provide cash flow to meet ongoing cash requirements, including any future debt service payments and other expenses, and to pay dividends, if any, to our preference and ordinary shareholders. Aspen Holdings must comply with the provisions of the Bermuda Companies Act 1981, as amended, (the “Companies Act”) regulating the payment of dividends and distributions. As of December 31, 2015 , there were no restrictions under Bermudian law or the law of any other jurisdiction on the payment of dividends from retained earnings by Aspen Holdings. The ability of the Company’s Operating Subsidiaries to pay the Company dividends or other distributions is subject to the laws and regulations applicable to each jurisdiction, as well as the Operating Subsidiaries’ need to maintain capital requirements adequate to maintain their insurance and reinsurance operations and their financial strength ratings issued by independent rating agencies. The company law of England and Wales prohibits Aspen U.K. or AUL from declaring a dividend to its shareholders unless it has “profits available for distribution.” The determination of whether a company has profits available for distribution is based on its accumulated realized profits and other distributable reserves less its accumulated realized losses. While the U.K. insurance regulatory laws impose no statutory restrictions on a general insurer’s ability to declare a dividend, the PRA’s rules require each insurance company within its jurisdiction to maintain its solvency margin at all times. On October 21, 2013, and in line with emerging common market practice for regulated institutions, the PRA requested that it be afforded with the opportunity to provide a “non-objection” prior to all future dividend payments made by Aspen U.K. As at December 31, 2015 , Aspen U.K. had an accumulated balance of retained losses of approximately $150.0 million and AUL had an accumulated balance of retained income of approximately £0.2 million . In addition, Aspen U.K. held a capital contribution reserve of $470.0 million which under certain circumstances would also be distributable. Aspen Bermuda must comply with the provisions of the Companies Act regulating the payment of dividends and distributions. There were no significant restrictions under company law on the ability of Aspen Bermuda to pay dividends funded from its accumulated balances of retained income as at December 31, 2015 . Aspen Bermuda may not in any financial year pay dividends which would exceed 25% of its total statutory capital and surplus, as shown on its statutory balance sheet in relation to the previous financial year, unless it files with the BMA a solvency affidavit at least seven days in advance. As at December 31, 2015 , 25% of Aspen Bermuda’s statutory capital and surplus amounted to $507.1 million . Further, Aspen Bermuda must obtain the prior approval of the BMA before reducing by 15% or more its total statutory capital as set out in its previous year’s financial statements. Under both North Dakota and Texas law, insurance companies may only pay dividends out of earned surplus as distinguished from contributed surplus. As such, Aspen Specialty and AAIC could not pay a dividend as of December 31, 2015 . Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2015 and December 31, 2014 were: As at December 31, 2015 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 61.1 $ 1,162.6 $ 202.2 Statutory capital and surplus $ 409.9 $ 2,028.3 $ 934.9 As at December 31, 2014 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 56.9 $ 1,097.6 $ 202.2 Statutory capital and surplus $ 394.1 $ 2,052.3 $ 989.8 AUL as the sole corporate member of our Lloyd’s Syndicate is required to maintain Funds at Lloyd’s of $429.1 million . As at December 31, 2015 , AUL had total funds at Lloyd’s of $433.6 million of which $402.0 million was provided by Aspen Bermuda. The Bermuda Monetary Authority is the group supervisor of the Company. The laws and regulations of Bermuda require that the Company maintain a minimum amount of group statutory capital and surplus based on the enhanced capital requirement using the group standardized risk-based capital model of the Bermuda Monetary Authority. As of December 31, 2015 , the Company’s enhanced capital requirement is 60% of the amount calculated. The Company is also subject to an early-warning level based on 120% of the enhanced capital requirement which may trigger additional reporting requirements or other enhanced oversight. As of December 31, 2015 , the amount of group statutory capital and surplus maintained by the Company satisfied these regulatory requirements. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans The Company operates defined contribution retirement plans for the majority of its employees at varying rates of their salaries, up to a maximum of 20.0% . Total contributions by the Company to the retirement plans were $14.9 million in the twelve months ended December 31, 2015 , $13.7 million in the twelve months ended December 31, 2014 and $11.7 million in the twelve months ended December 31, 2013 . |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share Based Payments | Share-Based Payments The Company issued options and other equity incentives under three arrangements: the employee incentive plan, the non-employee director plan and the employee share purchase plans. When options are exercised or other equity awards vest, new shares are issued as the Company does not currently hold treasury shares. (a) Employee Equity Incentives Employee options and other awards were granted under the Aspen 2003 Share Incentive Plan prior to April 24, 2013 and thereafter, under the new 2013 Share Incentive Plan. The total number of ordinary shares that may be issued under the 2013 Share Incentive Plan is 2,845,683 shares, which includes 595,683 shares available to grant under the 2003 Share Incentive Plan as of February 25, 2013. The number of ordinary shares that may be issued under the 2013 Share Incentive Plan is adjusted per the number of awards that may be forfeited under the 2003 Share Incentive Plan. Options. Stock options were granted with an exercise price equivalent to the fair value of the share on the grant date. The weighted average value at grant date was determined using the Black-Scholes option pricing model. Stock options typically vest over a three -year period with a ten -year contract period (except for options granted in 2007 which have a seven -year exercise period) with vesting dependent on time and performance conditions established at the time of grant. In the case of Mr. O’Kane, the Compensation Committee on April 22, 2014, approved the extension of the expiration of the 2007 options by one year to May 4, 2015. No options were granted during the twelve months ended December 31, 2015 ( 2014 — Nil ) and 189,215 options were exercised and shares issued in the twelve months ended December 31, 2015 ( 2014 — 84,018 ). No charges or tax charges against income were made in respect of employee options for the twelve months ended December 31, 2015 ( 2014 — $ Nil ; 2013 — $ Nil ). The following table summarizes information about employee options outstanding to purchase ordinary shares at December 31, 2015 . As at December 31, 2015 Options Granted Options Forfeited Options Exercised Outstanding and Exercisable Exercise Price Weighted Average Fair Value at Grant Date Remaining Contractual Time Option Holder 2003 Option grants 3,884,030 712,906 3,171,124 — $16.20 $5.31 expired 2004 Option grants 500,113 276,082 224,031 — $24.44 $5.74 expired 2006 Option grants February 16 1,072,490 450,567 597,148 24,775 $23.65 $6.99 2 months 2007 Option grants May 4 (1) 607,635 157,980 449,655 — $27.28 $6.14 expired ________________ (1) In the case of Mr. O’Kane, the expiration date for the 2007 options were extended for one year to May 4, 2015. With respect to the 2003 options, 65% of the options were subject to time-based vesting with 20% vesting upon grant and 20% vesting on each December 31 of the calendar years 2003, 2004, 2005 and 2006. The remaining 35% of the initial grant options were subject to performance-based vesting and in any event cliff vested on December 31, 2009. The 2003 options expired on August 20, 2013. The 2004 options vested over a three -year period with vesting subject to the achievement of Company performance targets. The options lapse if the criteria are not met. As at December 31, 2004, not all performance targets were met and 242,643 options for non-performance were cancelled. The 2006 options vested at the end of a three -year period with vesting subject to the achievement of one -year and three -year performance targets. The options lapse if the criteria were not met. A total of 695,643 of 2006 options vested. The 2007 option grants are not subject to performance conditions and 476,250 options vested at the end of the three -year period from the date of grant on May 4, 2010. The options are exercisable for a period of seven years from the date of grant. The intrinsic value of options exercised in the twelve months ended December 31, 2015 was $4.3 million ( 2014 — $1.5 million ; 2013 — $17.2 million ). The following table shows the per share weighted average fair value and the related underlying assumptions using a modified Black-Scholes option pricing model by date of grant: Grant Date October 22, 2007 May 4, 2007 August 4, 2006 February 16, 2006 December 23, 2004 August 20, 2003(1) Per share weighted average fair value $ 5.76 $ 6.14 $ 4.41 $ 6.99 $ 5.74 $ 5.31 Risk free interest rate 4.09 % 4.55 % 5.06 % 4.66 % 3.57 % 4.7 % Dividend yield 2.1 % 2.2 % 2.6 % 2.7 % 0.5 % 0.6 % Expected life 5 years 5 years 5 years 5 years 5 years 7 years Share price volatility 20.28 % 23.76 % 19.33 % 35.12 % 19.68 % — % Foreign currency volatility — — — — — 9.4 % ________________ (1) The 2003 options had a price volatility of zero. The minimum value method was utilized because the Company was unlisted on the date that the options were issued. Foreign currency volatility of 9.4% was applied as the exercise price was initially in British Pounds and the share price of the Company is in U.S. Dollars. The above table does not show the per share weighted average fair value and the related underlying assumptions for the 2005 options as the performance targets were not met and all options were forfeited. Restricted Share Units. Restricted share units (“RSUs”) granted to employees vest over a two or three -year period, subject to the employee’s continued service. Some of the grants vest at year-end, while other grants vest on the anniversary of the date of grant or when the Compensation Committee of the Board of Directors agrees to deliver them. Holders of RSUs will be paid one ordinary share for each RSU that vests as soon as practicable following the vesting date. Holders of RSUs generally will not be entitled to any rights of a holder of ordinary shares, including the right to vote, unless and until their RSUs vest and ordinary shares are issued but they are entitled to receive dividend equivalents. Dividend equivalents are denominated in cash and paid in cash if and when the underlying RSUs vest. The following table summarizes information about RSUs as at December 31, 2015 : As at December 31, 2015 Restricted Share Units RSU Holder Amount Granted Amount Vested Amount Forfeited Amount Outstanding 2004 - 2012 Grants 1,316,810 1,199,592 117,218 — 2013 Grants 307,441 192,173 34,880 80,388 2014 Grants 259,640 81,015 31,842 146,783 2015 Grants 287,852 — 10,789 277,063 Total 2,171,743 1,472,780 194,729 504,234 The fair value of the RSUs is based on the closing price on the date of the grant. The fair value is expensed through the consolidated income statement evenly over the vesting period. Compensation cost in respect of RSUs charged against income was $8.7 million for the twelve months ended December 31, 2015 ( 2014 — $9.3 million ; 2013 — $7.6 million ) with a fair value adjustment for the twelve months ended December 31, 2015 of $0.6 million ( 2014 — $3.1 million ; 2013 — $0.4 million ). The total tax credit recognized by the Company in relation to RSUs in the twelve months ended December 31, 2015 was $1.8 million ( 2014 — $2.2 million ; 2013 — $1.9 million ). Performance Shares . Performance share awards are not entitled to dividends before they vest. Performance shares that vest will only be issued following the assessment of the final performance target in the three-year period, and subject to the participant’s continued employment. The following table summarizes information about performance shares as at December 31, 2015 : As at December 31, 2015 Performance Share Awards Amount Granted Amount Vested Amount Forfeited Amount Outstanding 2004 - 2012 Grants (1) 4,538,769 2,461,809 2,076,960 — 2013 Grants 250,066 203,393 46,673 — 2014 Grants (2) 315,389 215,516 — 99,873 2015 Grants (2) 277,585 77,825 33,209 166,551 Total 5,381,809 2,958,543 2,156,842 266,424 ______________________ (1) The amounts vested and forfeited in respect of the 2004 - 2012 performance share awards have been updated to reflect employees leaving after the financial reporting date but before the final vesting date. (2) These balances could increase depending on future performance. On February 2, 2012, the Compensation Committee approved the grant of 334,125 performance shares with a grant date of February 8, 2012. An additional grant of 10,006 performance shares was made on November 1, 2012. The performance shares were subject to a three -year vesting period with a separate annual diluted book value per share (“BVPS”) growth test for each year, adjusted to add back ordinary dividends to shareholders’ equity at the end of the relevant year. One-third of the grant was eligible for vesting each year based on a formula, and issuable at the end of the three -year period. If the diluted BVPS growth achieved in 2012 was: • less than 5% , then the portion of the performance shares subject to the vesting conditions in such year was forfeited (i.e., 33.33% of the initial grant); • between 5% and 10% , then the percentage of the performance shares eligible for vesting in such year was between 10% and 100% on a straight-line basis; and • between 10% and 20% , then the percentage of the performance shares eligible for vesting in such year was between 100% and 200% on a straight-line basis. The 2013 and 2014 performance tests applicable to the 2012 performance share awards are described below under the 2013 performance share awards and the 2014 performance share awards, respectively. 2012 Performance Shares Year Split Increase in BVPS Banked 2012 33.3 % 8.1 % 21.9 % 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % Total 100.0 % 75.4 % Based on the achievement of a BVPS growth in 2012 of 8.1% , 65.8% of one-third of the 2012 performance share awards was eligible for vesting, resulting in 62,930 performance shares being banked. Based on the achievement of a BVPS growth of 6.2% in 2013, as refined by the Compensation Committee as discussed further below, 31.6% of one-third of the 2012 performance award was eligible for vesting, resulting in 33,012 performance shares being banked. Based on the achievement of a BVPS growth in 2014 of 13.3% , as described further below, 129.0% of one-third of the 2012 performance share award was eligible for vesting, resulting in 145,425 performance shares being banked. All banked 2012 performance share awards were issuable upon the filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2014. On February 6, 2013, the Compensation Committee approved the grant of 250,066 performance shares with a grant date of February 11, 2013. The performance shares were subject to a three -year vesting period with a separate BVPS growth test for each year, adjusted to add back ordinary dividends to shareholders’ equity at the end of the relevant year. One-third of the grant was eligible for vesting each year based on a formula and issuable at the end of the three -year period. If the diluted BVPS growth achieved in 2013 was: • less than 5% , then the portion of the performance shares subject to the vesting conditions in such year was forfeited (i.e., 33.33% of the initial grant); • between 5% and 10% , then the percentage of the performance shares eligible for vesting in such year was between 10% and 100% on a straight-line basis; or • between 10% and 20% , then the percentage of the performance shares eligible for vesting in such year was between 100% and 200% on a straight-line basis. On February 5, 2014, the Compensation Committee approved the testing conditions of the performance share awards that were subject to the Company’s 2013 annual growth in BVPS test. For purposes of the annual growth in the diluted BVPS test for 2013, diluted BVPS was initially defined as the diluted BVPS, after adding back dividends, as described above. The approval by the Compensation Committee revises within the original terms the definition of diluted BVPS for purposes of the annual growth in diluted BVPS test for 2013 to reflect (i) the impact of all of the Company’s PIERS retired during the second quarter of 2013 and (ii) the variance between the Company’s assumptions of the price at which it would execute its share repurchase program in 2013 against the price at which it actually repurchased its ordinary shares. As a result of the 28.8% increase in the Company’s share price in 2013, the Company purchased a smaller quantity of ordinary shares than anticipated which adversely impacted the Company’s BVPS. The Compensation Committee approved the testing conditions to ensure that the Company’s officers would not be penalized as a result of the increase in the Company’s ordinary share price, which benefited the Company and its shareholders, or as result of the impact on the Company’s diluted BVPS as a result of the retirement of the PIERS. Each of these factors were regarded by the Compensation Committee as sufficiently unusual or outside the control of the Company’s management and therefore justified revising (within the original terms) the BVPS test applicable to the 2013 tested performance share awards. As a result, after consideration of all factors involved, including the importance of retaining key talent, the Compensation Committee believed it was appropriate to make the above-described awards. The awards resulted in a vesting of 31.6% of one-third of each of the 2012 and 2013 performance share awards that were subject to the 2013 BVPS test. The 2014 performance test applicable to the 2013 performance share awards is described below under the 2014 performance share awards. 2013 Performance Shares Year Split Increase in BVPS Banked 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % Total 100.0 % 84.7 % Based on the achievement of a BVPS growth of 6.2% in 2013, as refined by the Compensation Committee as discussed above, 31.6% of one-third of the 2012 performance award was eligible for vesting, resulting in 25,001 performance shares being banked. Based on the achievement of a BVPS growth in 2014 of 13.3% , as described below, 129.0% of one-third of the 2013 performance share award was eligible for vesting resulting in 102,152 performance shares being banked. Based on the achievement of a BVPS growth in 2015 of 10.7% as described below, 93.5% of one-third of the 2013 performance share award are eligible for vesting, upon the filing of this report, resulting in 74,818 performance shares being banked. All banked 2013 performance share awards will be issuable upon filing of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015. During the twelve months ended December 31, 2014, the Company granted 315,389 performance shares. The performance shares are subject to a three -year vesting period with a separate BVPS growth test for each year, adjusted to add back ordinary dividends and movements in AOCI to shareholders’ equity at the end of the relevant year. One-third of the grant will be eligible for vesting each year based on a formula, and will only be issuable at the end of the three -year period. If the diluted BVPS growth achieved in 2014 is: • less than 5.2% , then the portion of the performance shares subject to the vesting conditions in such year will be forfeited (i.e., 33.3% of the initial grant); • between 5.2% and 10.4% then the percentage of the performance shares eligible for vesting in such year will be between 10% and 100% on a straight-line basis; or • between 10.4% and 20.8% , then the percentage of the performance shares eligible for vesting in such year will be between 100% and 200% on a straight-line basis. In calculating BVPS for 2014, the entire movement in AOCI will be excluded. Interest rate movements and credit spread movements in AOCI can be fairly significant and adversely impact growth in BVPS which management does not have any control over. The Compensation Committee also agreed that it will review the impact of any capital management actions undertaken during 2014, including share repurchases and special dividends, and consider whether any further adjustments to growth in BVPS should be may be made in the context of such actions. The Compensation Committee also agreed to exclude from the calculation of BVPS for 2014 the costs payable to third-party service providers resulting from the Company’s response to the proposals received from Endurance Specialty Holdings Ltd. (“Endurance”). The Compensation Committee believes it would not be appropriate for employees’ performance-related compensation to be impacted by these costs. 2014 Performance Shares Year Split Increase in BVPS Banked 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA Total 100.0 % 74.2 % Based on the achievement of a BVPS growth in 2014 of 13.3% as described above, 129.0% of one-third of the 2014 performance share award is eligible for vesting, resulting in 122,056 performance shares being banked. Based on the achievement of a BVPS growth in 2015 of 10.7% as described below, 93.5% of one-third of the 2014 performance share award is eligible for vesting, upon the filing of this report, resulting in 93,336 performance shares being banked. During the twelve months ended December 31, 2015, the Company granted 227,585 performance shares. The performance shares are subject to a three -year vesting period with a separate BVPS growth test for each year, adjusted to add back ordinary dividends and movements in AOCI to shareholders’ equity at the end of the relevant year. One-third of the grant will be eligible for vesting each year based on a formula, and will only be issuable at the end of the three -year period. If the diluted BVPS growth achieved in 2015 is: • less than 5.6% , then the portion of the performance shares subject to the vesting conditions in such year will be forfeited (i.e., 33.3% of the initial grant); • between 5.6% and 11.1% then the percentage of the performance shares eligible for vesting in such year will be between 10% and 100% on a straight-line basis; or • between 11.1% and 22.2% , then the percentage of the performance shares eligible for vesting in such year will be between 100% and 200% on a straight-line basis. 2015 Performance Shares Year Split Increase in BVPS Banked 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA 2017 33.3 % NA NA Total 100.0 % 31.2 % Based on the achievement of a BVPS growth in 2015 of 10.7% as described above, 93.5% of one-third of the 2015 performance share award is eligible for vesting, upon the filing of this report, resulting in 77,825 performance shares being banked. The Compensation Committee will determine the vesting conditions for the 2016 and 2017 portions of the grant in such years taking into consideration the market conditions and the Company’s business plans at the commencement of the years concerned. Notwithstanding the vesting criteria for each given year, if in any given year, the shares eligible for vesting are greater than 100% for the portion of such year’s grant and the average diluted BVPS growth over such year and the preceding year is less than the average of the minimum vesting thresholds for such year and the preceding year (which in the case of the 2013 portion of the grant), the average BVPS is less than 5% , then only 100% (and no more) of the shares that are eligible for vesting in such year shall vest. Notwithstanding the foregoing, if in the judgment of the Compensation Committee the main reason for the BVPS metric in the earlier year falling below the minimum threshold (or below 5% in the case of 2013) is due to the impact of rising interest rates and bond yields, then the Compensation Committee may, in its discretion, disapply this limitation on 100% vesting. The fair value of performance share awards is based on the value of the closing share price on the date of the grant less a deduction for expected dividends which would not accrue during the vesting period. Compensation costs charged against income in the twelve months ended December 31, 2015 in respect of performance shares was a charge of $6.5 million ( 2014 — $8.9 million ; 2013 — $8.1 million ). The total tax credit recognized by the Company in relation to performance share awards in the twelve months ended December 31, 2015 was $1.5 million ( 2014 — $2.4 million ; 2013 — $2.0 million ). A summary of performance share activity under Aspen’s 2003 and 2013 Share Incentive Plans for the twelve months ended December 31, 2015 is presented below: Twelve Months Ended December 31, 2015 Number of Shares Weighted Average Grant Date Fair Value Outstanding performance share awards, beginning of period 268,418 $25.35 Granted 277,585 $38.92 Earned (208,830 ) $38.11 Forfeited (70,749 ) $30.26 Outstanding performance share awards, end of period 266,424 $24.17 Phantom Shares. On February 2, 2012, the Compensation Committee approved the grant of 278,143 phantom shares with a grant date of February 8, 2012 (2011 — Nil ). The phantom shares were subject to a three -year vesting period with a separate annual diluted BVPS growth test for each year, in accordance with the test described above for the 2012 performance shares, with the difference being that any vested amount was paid in cash in lieu of shares. As shares were not issued, these instruments had no dilutive effect. 2012 Phantom Shares Year Split Increase in BVPS Banked 2012 33.3 % 8.1 % 21.9 % 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % Total 100.0 % 75.4 % The total number of 2012 phantom shares that were banked based on the 2012 performance test was 61,006 . The total number of 2012 phantom shares that were banked based on the 2013 performance test was 9,258 . The total number of 2012 phantom shares that were banked based on the 2014 performance test was 88,658 . On February 6, 2013, the Compensation Committee approved the grant of 152,541 phantom shares with a grant date of February 11, 2013. Additional grants of 6,521 and 542 phantom shares were made on April 8, 2013 and June 11, 2013, respectively. The phantom shares were subject to a three -year vesting period with a separate annual diluted BVPS growth test for each year, in accordance with the test described above for the 2013 performance shares, with the difference being that any vested amount is paid in cash in lieu of shares. As shares are not issued, these instruments have no dilutive effect. 2013 Phantom Shares Year Split Increase in BVPS Banked 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % Total 100.0 % 84.7 % The total number of 2013 phantom shares that were banked based on the 2013 performance test was 16,812 . The total number of 2013 phantom shares that were banked based on the 2014 performance test was 64,357 . The total number of 2013 phantom shares that will be banked, upon the filing of this report, based on the 2015 performance test will be 61,266 . Cash equal to the vested amount based on the closing share price on the date of filing of this report will be paid to employees upon the filing of this report. On April 22, 2014, the Compensation Committee approved the grant of 154,512 phantom shares with a grant date of April 25, 2014. The phantom shares are subject to a three -year vesting period with a separate annual diluted BVPS growth test for each year, in accordance with the test described above for the 2014 performance shares, with the difference being that any vested amount would be paid in cash in lieu of shares. As shares are not issued, these instruments have no diluted effect. 2014 Phantom Shares Year Split Increase in BVPS Banked 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA Total 100.0 % 74.2 % The total number of 2014 phantom shares that were banked based on the 2014 performance test was 59,796 . The total number of 2014 phantom shares that will be banked, upon the filing of this report, based on the 2015 performance test will be 45,726 . On March 5, 2015, the Compensation Committee approved the grant of 134,530 phantom shares with a grant date of March 5, 2015. An additional grant of 1,121 phantom shares was made on March 16, 2015. The phantom shares are subject to a three -year vesting period with a separate annual diluted BVPS growth test for each year, in accordance with the test described above for the 2015 performance shares, with the difference being that any vested amount would be paid in cash in lieu of shares. As shares are not issued, these instruments have no diluted effect. 2015 Phantom Shares Year Split Increase in BVPS Banked 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA 2017 33.3 % NA NA Total 100.0 % 31.2 % The total number of 2015 phantom shares that will be banked, upon the filing of this report, based on the 2015 performance test will be 38,032 . The fair value of the phantom shares is based on the closing share price on the date of the grant, less estimated dividends payable over the vesting period. The fair value is expensed through the consolidated income statement evenly over the vesting period, but as the payment to beneficiaries will ultimately be in cash rather than shares, an adjustment is required each quarter to revalue the accumulated liability to the balance sheet date fair value. Compensation costs charged against income in the twelve months ended December 31, 2015 in respect of phantom shares was $4.3 million ( 2014 — $6.1 million ; 2013 — $1.5 million ) with a fair value adjustment for the twelve months ended December 31, 2015 of $3.2 million ( 2014 — $2.9 million ; 2013 — $1.4 million ). The total tax credit recognized by the Company in relation to phantom share awards in the twelve months ended December 31, 2015 was $1.2 million ( 2014 — $2.2 million ; 2013 — $0.4 million ). Employee Share Purchase Plans. On April 30, 2008, the shareholders of the Company approved the Employee Share Purchase Plan , the 2008 Sharesave Scheme, as amended, and the International Employee Share Purchase Plan (collectively, the “ESPP”), which are implemented by a series of consecutive offering periods as determined by the Board of Directors. In respect of the ESPP, employees can save up to $500 per month over a two -year period, at the end of which they will be eligible to purchase Company shares at a discounted price, subject to a further one year holding period. In respect of the 2008 Sharesave Scheme, employees can save up to £250 per month over a three -year period, at the end of which they will be eligible to purchase Company shares at a discounted price. The amount employees can save increased to £500 per month effective April 6, 2014. The purchase price will be eighty-five percent 85% of the fair market value of a share on the offering date which may be adjusted upon changes in capitalization of the Company. Under the ESPP, 54,940 ordinary shares were issued during the twelve months ended December 31, 2015 ( 2014 — 11,821 shares; 2013 — 38,915 ). Compensation costs charged against income in the twelve months ended December 31, 2015 in respect of the ESPP was $0.3 million ( 2014 — $0.3 million ; 2013 — $1.3 million ). The total tax credit recognized by the Company in relation to the ESPP in the twelve months ended December 31, 2015 was $0.1 million ( 2014 — $0.1 million ; 2013 — $0.1 million ). The fair value of the employee options granted under the ESPP was estimated on the date of grant using a modified Black-Scholes option pricing model under the following assumptions: Grant Date Per share weighted average fair value Risk free interest rate Dividend yield Expected life Share price volatility ($) (%) (%) (in years) (%) November 4, 2008 $3.18 0.48 % 2.70 % 3.0 68.0 % December 4, 2008 2.87 (0.41 ) 3.16 2.0 102.0 November 23, 2009 3.76 0.01 2.28 3.0 22.0 December 21, 2009 3.82 0.04 2.34 2.0 18.0 December 22, 2010 4.24 0.13 2.07 3.0 14.0 December 22, 2010 4.46 0.13 2.07 2.0 14.0 December 13, 2011 4.20 0.05 2.80 3.0 26.2 December 13, 2011 3.85 0.05 2.75 2.0 26.2 March 20, 2013 7.79 0.38 1.88 3.0 2.8 March 20, 2013 5.75 0.25 1.88 2.0 3.2 September 26, 2014 6.61 1.06 1.87 3.0 6.2 September 26, 2014 6.43 0.58 1.87 2.0 4.0 March 25, 2015 8.17 0.94 1.78 3.0 16.0 March 25, 2015 7.08 0.60 1.78 2.0 16.0 (b) Non-employee director plan Non-employee director options are granted under the Aspen 2006 Stock Option Plan for Non-Employee Directors (the “Director Stock Option Plan”). Options. The following table summarizes information about non-employee director options outstanding to purchase ordinary shares at December 31, 2015 . Option Holder Options Outstanding Options Exercisable Exercise Price Fair Value at Grant Date Remaining Contractual Time Non-employee directors - 2006 Option grants (May 25) 2,435 2,435 $21.96 $4.24 5 months Non-employee directors - 2007 Option grants (July 30) 2,012 2,012 $24.76 $4.97 1 year, 7 months The options granted in 2006 and 2007 vested at the end of a three -year period from the date of grant subject to continued service as a director. Vested options are exercisable for a period of ten years from the date of grant. No options were granted during the twelve months ended December 31, 2015 ( 2014 — Nil ) and no options were exercised and shares issued in the twelve months ended December 31, 2015 ( 2014 — Nil ). No charges or tax charges against income were made in respect of non-employee directors options for the twelve months ended December 31, 2015 ( 2014 — $ Nil ; 2013 — $ Nil ). The fair value of the non-employee director options granted were estimated on the date of grant using a modified Black-Scholes option pricing model under the following assumptions: Grant Date July 30, 2007 May 25, 2006 Per share weighted average fair value $4.97 $4.24 Risk-free interest rate 4.64 % 4.85 % Dividend yield 2.4 % 2.7 % Expected life 5 years 5 years Share price volatility 19.55 % 20.05 % Restricted Share Units. The following table summarizes information about restricted share units issued to non-employee directors as at December 31, 2015 . As at December 31, 2015 Restricted Share Units Amount Granted Amount Vested Amount Forfeited Amount Outstanding Non-Employee Directors — 2013 and prior 167,596 158,593 9,003 — Non-Employee Directors — 2014 27,180 27,180 — — Non-Employee Directors — 2015 27,620 23,011 — 4,609 Chairman — 2013 and prior 89,987 89,987 — — Chairman — 2014 13,590 13,590 — — Chairman — 2015 12,154 10,127 — 2,027 Total 338,127 322,488 9,003 6,636 One-twelfth of the RSUs vest on each one month anniversary of the date of grant, with 100% of the restricted share units becoming vested and issued on the first anniversary of the grant date, or on the date of departure of a director (for the amount vested through such date). A portion of the shares that is eligible to vest following the final vesting date in the calendar year of the date of grant is delivered as soon as practicable thereafter and the remaining shares under the restricted share units are delivered on the first anniversary of the grant date. If a director leaves the Board for any reason other than “cause” (as defined in the award agreement), then the director would receive the shares under the restricted share units that had vested through the date the director leaves the Board. RSUs entitle the holder to receive one ordinary share unit for each unit that vests. Holders of RSUs are not entitled to any of the rights of a holder of ordinary shares, including the right to vote, unless and until their units vest and ordinary shares are issued but they are entitled to receive dividend equivalents with respect to their units. Dividend equivalents will be denominated in cash and paid in cash if and when the underlying units vest. In respect of the RSUs granted to the Chairman up to December 31, 2009, one-third of the grants vests on the anniversary date of grant over a three -year period. For grants from January 1, 2010, onwards, one-twelfth of the RSUs vest on each one month anniversary of the date of grant, with 100% of the restricted share units becoming vested and issued on the first anniversary of the grant date, or on the date of departure. The fair value of the RSUs is based on the closing price on the date of the grant. Compensation cost charged against income was $1.8 million for the twelve months ended December 31, 2015 ( 2014 — $0.4 million ; 2013 — $1.3 million ). The total tax charge recognized by the Company in relation to non-employee RSUs in the twelve months ended December 31, 2015 was $ Nil ( 2014 — $ Nil ; 2013 — $ Nil ). (c) Summary of investor options, employee and non-employee share options and restricted share units. A summary of option activity and restricted share unit activity discussed above is presented in the tables below: Twelve Months Ended December 31, 2015 Option activity Number of Options Weighted Average Exercise Price Outstand |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2015 and 2014 : Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Trade Mark Insurance Licenses Total Trade Mark Insurance Licenses Other Total ($ in millions) ($ in millions) Intangible Assets Beginning of the period $ 1.6 $ 16.6 $ 18.2 $ 1.6 $ 16.6 $ 0.2 $ 18.4 Amortization — — — — — (0.2 ) (0.2 ) End of the period $ 1.6 $ 16.6 $ 18.2 $ 1.6 $ 16.6 $ — $ 18.2 License to use the “Aspen” Trademark. On April 5, 2005, the Company entered into an agreement with Aspen (Actuaries and Pension Consultants) Plc to acquire the right to use the Aspen trademark in the United Kingdom. The consideration paid was approximately $1.6 million . As at December 31, 2015 , the value of the license to use the Aspen trademark was $1.6 million ( December 31, 2014 — $1.6 million ). The Company performed its annual qualitative assessment and determined that it was not more likely than not that the Aspen trademark was impaired as at December 31, 2015 . Insurance Licenses. The total value of the licenses as at December 31, 2015 was $16.6 million ( December 31, 2014 — $16.6 million ). This includes $10.0 million of acquired licenses held by AAIC, $4.5 million of acquired licenses held by Aspen Specialty and $2.1 million of acquired licenses held by Aspen U.K. The insurance licenses are considered to have an indefinite life and are not being amortized. The Company performed its annual qualitative assessment and determined that it was not more likely than not that the insurance licenses were impaired as at December 31, 2015 . Other. In 2010, the Company purchased APJ for an aggregate consideration of $4.8 million . The directors of Aspen Holdings assessed the fair value of the net tangible and financial assets acquired at $1.2 million . The $3.6 million intangible asset represented the Company’s assessment of the value of renewal rights and distribution channels ( $2.2 million ) and the lock-in period for employees associated with the business ( $1.4 million ). The asset was amortized over a five -year period and the value as at December 31, 2015 was $ Nil ( December 31, 2014 —$ Nil ). |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingent Liabilities (a) Restricted assets The Company’s subsidiaries are obliged by the terms of its contractual obligations to U.S. policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in trust funds for the benefit of policyholders. The following table details the forms and value of Company’s restricted assets as at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,421.0 $ 1,094.3 Third party 2,265.6 2,268.2 Letters of credit / guarantees (1) 708.5 788.9 Total restricted assets $ 4,395.1 $ 4,151.4 Total as percent of investable assets (2) 49.6 % 48.0 % _______________ (1) As of December 31, 2015 , the Company had pledged funds of $697.6 million and £7.1 million ( December 31, 2014 — $774.6 million and £9.2 million ) as collateral for the secured letters of credit. (2) The comparative balance has been re-presented to reflect total restricted investable assets as a percent of investable assets. Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. Our current arrangements with our bankers for the issue of letters of credit require us to provide collateral in the form of cash and investments for the full amount of all secured and undrawn letters of credit that are outstanding. We monitor the proportion of our otherwise liquid assets that are committed to trust funds or to the collateralization of letters of credit. As at December 31, 2015 and 2014 , these funds amounted to approximately 49.6% of the $8.8 billion and approximately 48.0% of the $8.6 billion of investable assets held by the Company, respectively. We do not consider that this unduly restricts our liquidity at this time. Refer to Note 23, “Credit Facility and Long-term Debt” of these consolidated financial statements for further discussion of our credit facilities and long-term debt arrangements. Funds at Lloyd’s. AUL operates at Lloyd’s as the corporate member for Syndicate 4711. Lloyd’s determines Syndicate 4711’s required regulatory capital principally through the syndicate’s annual business plan. Such capital, called Funds at Lloyd’s, comprising of investable assets at December 31, 2015 in the amount of $436.8 million ( 2014 — $414.8 million ). The amounts provided as Funds at Lloyd’s will be drawn upon and become a liability of the Company in the event of Syndicate 4711 declaring a loss at a level that cannot be funded from other resources, or if Syndicate 4711 requires funds to cover a short term liquidity gap. The amount which the Company provides as Funds at Lloyd’s is not available for distribution to the Company for the payment of dividends. AMAL, the managing agent to Syndicate 4711, is also required by Lloyd’s to maintain a minimum level of capital which as at December 31, 2015 was £0.4 million ( December 31, 2014 — £0.4 million ). This is not available for distribution by the Company for the payment of dividends. U.S. Reinsurance Trust Fund. For its U.S. reinsurance activities, Aspen U.K. has established and must retain a multi-beneficiary U.S. trust fund for the benefit of its U.S. cedants so that they are able to take financial statement credit without the need to post cedant-specific security. The minimum trust fund amount is $20.0 million plus an amount equal to 100% of Aspen U.K.’s U.S. reinsurance liabilities, which were $1,105.7 million at December 31, 2015 and $1,071.4 million at December 31, 2014 . At December 31, 2015 , the balance (including applicable letter of credit facilities) held in the trust was $1,334.9 million ( 2014 — $1,322.5 million ). Aspen Bermuda has also established and must retain a multi-beneficiary U.S. trust fund for the benefit of its U.S. cedants so that they are able to take financial statement credit without the need to post cedant-specific security. The minimum trust fund amount is $20.0 million plus an amount equal to 100% of Aspen Bermuda’s liabilities to its U.S. cedants which was $889.3 million and $694.8 million as at December 31, 2015 and 2014 , respectively. At December 31, 2015 , the balance held in the U.S. trust fund and other Aspen Bermuda trusts were $1,211.3 million ( 2014 — $1,027.5 million ). U.S. Surplus Lines Trust Fund. Aspen U.K. and Syndicate 4711 have also established a U.S. surplus lines trust fund with a U.S. bank to secure liabilities under U.S. surplus lines policies. The balance held in trust at December 31, 2015 was $188.5 million ( 2014 — $171.4 million ). U.S. Credit and Surety Lines Trust Fund. Aspen U.K. has also established a U.S. credit and surety lines trust fund with a U.S. bank to secure liabilities under U.S. credit and surety lines policies. The balance held in the trust at December 31, 2015 was $ Nil ( 2014 — $ Nil ). U.S. Regulatory Deposits. As at December 31, 2015 , Aspen Specialty had a total of $6.0 million ( 2014 — $6.2 million ) on deposit with six U.S. states in order to satisfy state regulations for writing business in those states. AAIC had a further $6.2 million ( 2014 — $7.2 million ) on deposit with twelve U.S. states. Canadian Trust Fund. Aspen U.K. has established a Canadian trust fund with a Canadian bank to secure a Canadian insurance license. As at December 31, 2015 , the balance held in trust was CAD $332.9 million ( 2014 — CAD $345.0 million ). Australian Trust Fund. Aspen U.K. has established an Australian trust fund with an Australian bank to secure policyholder liabilities and as a condition for maintaining an Australian insurance license. As at December 31, 2015 , the balance held in trust was AUD $139.2 million ( 2014 — AUD $141.8 million ). Swiss Trust Fund. Aspen U.K. has established a Swiss trust fund with a Swiss bank to secure policyholder liabilities and as a condition for maintaining a Swiss insurance license. As at December 31, 2015 , the balance held in trust was CHF 15.3 million ( 2014 — CHF 12.3 million ). Singapore Fund. Aspen U.K. has established a segregated Singaporean bank account to secure policyholder liabilities and as a condition for maintaining a Singaporean insurance license and meet local solvency requirements. As at December 31, 2015 , the balance in the account was SGD $103.3 million ( 2014 — SGD $72.6 million ). Interest Rate Swaps. As at December 31, 2015 , cash collateral with a fair value of $10.1 million was held by the Company’s counterparties to support the current valuation of the interest rate swaps ( December 31, 2014 — $22.3 million ). For more information, please refer to Note 10, “Derivative Contracts” of these consolidated financial statements. (b) Operating leases Amounts outstanding under operating leases net of subleases as of December 31, 2015 and 2014 were: As at December 31, 2015 2016 2017 2018 2019 2020 Later Total ($ in millions) Operating Lease Obligations (1) $ 10.5 $ 14.4 $ 13.9 $ 12.4 $ 8.7 $ 88.9 $ 148.8 As at December 31, 2014 2015 2016 2017 2018 2019 Later Total ($ in millions) Operating Lease Obligations $ 13.4 $ 9.3 $ 8.5 $ 7.3 $ 6.4 $ 1.5 $ 46.4 (1) In 2015, the Company entered into a new 16 year lease relating to the Company’s premises in New York. Total rental and premises expenses for 2015 was $18.6 million ( 2014 — $16.7 million ). For all leases, all rent incentives, including reduced-rent and rent-free periods, are spread on a straight-line basis over the term of the lease. We believe that our office space is sufficient for us to conduct our operations for the foreseeable future in these locations. The total depreciation for fixed assets was $7.0 million for the twelve months ended December 31, 2015 ( 2014 — $8.2 million ). Accumulated depreciation as at December 31, 2015 was $104.6 million ( 2014 — $97.6 million ). (c) Variable interest entities As at December 31, 2015 , the Company had two investments in variable interest entities, Chaspark Maritime Holdings Ltd and Silverton Re Ltd. Chaspark Maritime Holdings Ltd. See Note 6, “Investments” of these consolidated financial statements for further information regarding the Company’s investment in Chaspark Maritime Holdings Ltd. Silverton Re Ltd. See Note 7, “Variable Interest Entities” of these consolidated financial statements for further information regarding the Company’s investment in Silverton Re Ltd. (d) Contingent liabilities In common with the rest of the insurance and reinsurance industry, the Company is also subject to litigation and arbitration in the ordinary course of business. The Company’s Operating Subsidiaries are regularly engaged in the investigation, conduct and defense of disputes, or potential disputes, resulting from questions of insurance or reinsurance coverage or claims activities. Pursuant to insurance and reinsurance arrangements, many of these disputes are resolved by arbitration or other forms of alternative dispute resolution. Such legal proceedings are considered in connection with estimating the Company’s Insurance Reserves — Loss and Loss Adjustment Expenses, as provided on the Company’s consolidated balance sheet. In some jurisdictions, noticeably the U.S., a failure to deal with such disputes or potential disputes in an appropriate manner could result in an award of “bad faith” punitive damages against the Company’s Operating Subsidiaries. In accordance with ASC 450-20-50-4b, for (a) reasonably possible losses for which no accrual is made because any of the conditions for accrual in ASC 450-20-25-2 are not met and (b) reasonably possible losses in excess of the amounts accrued pursuant to ASC 450-20-30-1, the Company will provide an estimate of the possible loss or range of possible loss or state that such an estimate cannot be made. As of December 31, 2015 , based on available information, it was the opinion of the Company’s management that the probability of the ultimate resolution of pending or threatened litigation or arbitrations having a material effect on the Company’s financial condition, results of operations or liquidity would be remote. |
Concentration of Credit Risk
Concentration of Credit Risk | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk The Company is potentially exposed to concentrations of credit risk in respect of amounts recoverable from reinsurers, investments and cash and cash equivalents, and insurance and reinsurance balances owed by the brokers with whom the Company transacts business. The Company’s Reinsurance Credit Committee defines credit risk tolerances in line with the risk appetite set by our Board and they, together with the group’s risk management function, monitor exposures to individual counterparties. Any exceptions are reported to senior management and our Board’s Risk Committee. Reinsurance recoverables The total amount recoverable by the Company from reinsurers at December 31, 2015 is $354.8 million ( 2014 — $350.0 million ). As at December 31, 2015 , 20.0% of the Company’s reinsurance recoverables are with Lloyd’s of London Syndicates rated A by A.M. Best and A+ by S&P, 20.4% are with Munich Re which is rated A+ by A.M. Best and AA- by S&P and 9.2% are with Axis Re which is rated A+ by A.M. Best and A+ by S&P. These are the Company’s largest exposures to individual reinsurers. The Company has made no provision for doubtful debts from any of its reinsurers as at December 31, 2015 . Underwriting premium receivables The total underwriting premium receivable by the Company at December 31, 2015 was $1,115.6 million ( 2014 — $1,011.7 million ). As at December 31, 2015 , $2.3 million of the total underwriting premium receivable balance has been due for settlement for more than one year . The Company assesses the recoverability of premium receivables through a review of policies and the concentration of receivables by broker. A bad debt provision was included of $2.6 million as at December 31, 2015 ( 2014 — $4.3 million ) for underwriting premiums unlikely to be collected. Investments and cash and cash equivalents The Company’s investment policies include specific provisions that limit the allowable holdings of a single issue and issuer. At December 31, 2015 , there were no investments in any single issuer, other than the U.S. government, U.S. government agencies, U.S. government sponsored enterprises, Canadian government and the U.K. government in excess of 2% of the aggregate investment portfolio. Balances owed by brokers The Company underwrites a significant amount of its business through brokers and a credit risk exists should any of these brokers be unable to fulfill their contractual obligations in respect of insurance or reinsurance balances due to the Company. The following table shows the largest brokers that the Company transacted business with in the three years ended December 31, 2015 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2015 2014 2013 Broker (in percentages) Aon Corporation 18.7 % 17.8 % 16.8 % Marsh & McLennan Companies, Inc. 15.4 15.1 15.0 Willis Group Holdings, Ltd. 14.5 13.7 14.4 Others (1) 51.4 53.4 53.8 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 2,997.3 $ 2,902.7 $ 2,646.7 ________________ (1) No other individual broker accounted for more than 10% of total gross written premiums. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Reclassifications from Accumulated Other Comprehensive Income The following table sets out the components of the Company’s AOCI that are reclassified into the audited condensed consolidated statement of operations for the twelve months ended December 31, 2015 and 2014 : Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Affected Line Item in the Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gain on sale of securities $ 43.6 $ 13.9 Realized and unrealized investment gains Realized (losses) on sale of securities (5.7 ) (6.2 ) Realized and unrealized investment losses 37.9 7.7 Income from operations before income tax Income tax on net realized gains of securities (1.2 ) (0.2 ) Income tax expense $ 36.7 $ 7.5 Net income Realized derivatives: Net realized (losses) on settled derivatives (4.9 ) (0.3 ) General, administrative and corporate expenses / Change in fair value of derivatives $ (4.9 ) $ (0.3 ) Net income Total reclassifications from AOCI to the statement of operations, net of income tax $ 31.8 $ 7.2 Net income |
Credit Facility and Long-term D
Credit Facility and Long-term Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Credit Facility and Long-term Debt | Credit Facility and Long-term Debt Credit Facility. On July 30, 2010, the Company and certain of our direct and indirect subsidiaries (collectively, the “Borrowers”) entered into a three -year revolving credit facility with a syndicate of commercial banks under which it may, subject to the terms of the credit agreements, borrow up to $280.0 million or issue letters of credit with an aggregate value of up to $280.0 million . The facility could have been used by any of the Borrowers (as defined in the agreement) to provide funding for the operating subsidiaries of the Company, to finance the working capital needs of the Company and its subsidiaries and for general corporate purposes of the Company and its subsidiaries. The revolving credit facility further provided for the issuance of collateralized letters of credit. Initial availability under the facility was $280.0 million , and the Company had the option (subject to obtaining commitments from acceptable lenders) to increase the facility by up to $75.0 million . The expiry date of this facility was July 30, 2013. On June 12, 2013, the Borrowers entered into an amended and restated credit agreement (the “credit agreement”) with various lenders and Barclays Bank PLC, as administrative agent, which amends and restates the credit agreement dated as of July 30, 2010 among the Company, certain of its subsidiaries, various lenders and Barclays Bank PLC, as administrative agent. The credit facility is used to finance the Company’s working capital needs and those of its subsidiaries, for letters of credit in connection with its insurance and reinsurance businesses and for other general corporate purposes. Initial availability under the credit facility is $200.0 million with the option (subject to obtaining commitments from acceptable lenders) to increase the facility by up to $100.0 million . The facility will expire on June 12, 2017. As of December 31, 2015 , no borrowings were outstanding under the credit facility. The fees and interest rates on the loans and the fees on the letters of credit payable by the Borrowers under the Credit Agreement are based upon the credit ratings for the Company’s long-term unsecured senior debt by S&P and Moody’s. In addition, the fees for a letter of credit vary based upon whether the applicable Borrower has provided collateral (in the form of cash or qualifying debt securities) to secure its reimbursement obligations with respect to such letter of credit. Under the credit facility, the Company must not permit (a) consolidated tangible net worth to be less than approximately $2,428.6 million plus 50% of consolidated net income and 50% of aggregate net cash proceeds from the issuance by the Company of its capital stock, in each case after January 1, 2013, (b) the ratio of its total consolidated debt to the sum of such debt plus our consolidated tangible net worth to exceed 35% or (c) any material insurance subsidiary to have a financial strength rating of less than “B++” from A.M. Best. In addition, the credit facility contains other customary affirmative and negative covenants as well as certain customary events of default, including with respect to a change in control. The various affirmative and negative covenants, include, among others, covenants that, subject to various exceptions, restrict the ability of the Company and its subsidiaries to: incur indebtedness; create or permit liens on assets; engage in mergers or consolidations; dispose of assets; pay dividends or other distributions; purchase or redeem the Company’s equity securities or those of its subsidiaries and make other restricted payments; make certain investments; agree with others to limit the ability of the Company’s subsidiaries to pay dividends or other restricted payments or to make loans or transfer assets to the Company or another of its subsidiaries. In addition, the credit facility has customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control and cross-default to other debt agreements. On December 12, 2014, Aspen Holdings and the Borrowers entered into a first amendment to update and restate the credit agreement with various lenders and Barclays, which amends the Credit Agreement. Aspen Holdings has recently established, and may establish additional, special purpose entities that have issued or will issue insurance-linked securities to third-party investors (each, an “ILS Entity” and collectively, the “ILS Entities”). Accordingly, the Credit Agreement was amended, among other things, to (i) exclude ILS Entities from the definition of “Subsidiary”, (ii) permit the Borrowers to invest in ILS Entities and (iii) permit the Borrowers to engage in transactions with an ILS Entity. Other Credit Facilities. On February 28, 2011, Aspen U.K. and Aspen Bermuda entered into an amendment to the $200.0 million secured letter of credit facility agreement with Barclays Bank PLC dated as of October 6, 2009. The amendment extends the maturity date of the credit facility to December 31, 2013. On February 1, 2013, Aspen U.K. and Aspen Bermuda entered into a further amendment to the secured letter of credit facility to extend the maturity date of the credit facility to January 31, 2015. On August 21, 2013, the commitments were reduced to $100.0 million . All letters of credit issued under the facility are used to support reinsurance obligations of the parties to the agreement and their respective subsidiaries. As at December 31, 2015 , $5.0 million collateralized letters of credit were outstanding under this facility ( December 31, 2014 — $18.9 million ). The Company did not extend the maturity date of this secured letter of credit facility and, as a result, it expired on January 31, 2015 and no new letters of credit can be issued under this facility. On April 29, 2009, Aspen Bermuda replaced its existing letter of credit facility with Citibank Europe plc dated October 29, 2008 in a maximum aggregate amount of up to $450.0 million with a new letter of credit facility in a maximum aggregate amount of up to $550.0 million . On August 12, 2011, the maximum aggregate amount was increased to $1,050.0 million . On July 30, 2012, Aspen Bermuda and Citibank Europe plc replaced the existing letter of credit facility dated August 12, 2011 in a maximum aggregate amount of up to $1,050.0 million with a new letter of credit facility in a maximum aggregate amount of up to $950.0 million (the “LOC Facility”) comprised of two maturity tranches (Tranche I with a limit of $650.0 million and Tranche II with a limit of $300.0 million ) which expired on its own terms on June 30, 2014. On June 30, 2014, Aspen Bermuda and Citibank Europe plc replaced the LOC Facility with a new letter of credit facility in a maximum aggregate amount of up to $575.0 million (the “New LOC Facility”). Under the New LOC Facility, which will expire on June 30, 2016, Aspen Bermuda will pay to Citibank Europe plc (a) a letter of credit fee based on the available amounts of each letter of credit and (b) a commitment fee, which varies based upon usage, on the unutilized portion of the New LOC Facility. Aspen Bermuda will also pay interest on the amount drawn by any beneficiary under a credit provided under the New LOC Facility at a rate per annum of LIBOR plus 1% (plus reserve asset costs, if any) from the date of drawing until the date of reimbursement by Aspen Bermuda. The New LOC Facility is used to secure obligations of Aspen Bermuda to its policyholders. In addition to the New LOC Facility, we also use regulatory trusts to secure our obligations to policyholders. As at December 31, 2015 , we had $463.6 million of outstanding collateralized letters of credit under this facility compared to $463.6 million at December 31, 2014 . The terms of a Pledge Agreement between Aspen Bermuda and Citibank Europe plc (pursuant to an Assignment Agreement dated October 11, 2006) dated January 17, 2006, as amended, were also amended on June 30, 2014 to change the types of securities or other assets that are acceptable as collateral under the New LOC Facility. All other agreements relating to Aspen Bermuda’s LOC Facility, which now apply to the New LOC Facility with Citibank Europe plc, as previously filed with the United States Securities and Exchange Commission, remain in full force and effect. On December 18, 2014, Aspen Bermuda and Citi Europe entered into an amended and restated pledge agreement (“pledge agreement”) to, among other things, (i) change the types of securities or other assets that qualify as collateral pledged under the pledge agreement, (ii) provide Aspen Bermuda the right to give certain directions or entitlement orders to The Bank of New York Mellon (“BNY Mellon”), as securities intermediary, relating to the collateral without the consent of Citi Europe provided certain conditions are satisfied, (iii) provide Citi Europe, subject to the provisions set forth in the amended and restated account control agreement, dated December 18, 2014 (the “control agreement”), among Aspen Bermuda, Citi Europe and BNY Mellon, with the right and power to exercise exclusive control over the accounts set forth in the control agreement and (iv) provide a schedule of currency margins such that if the collateral is denominated in a currency other than the credit currency the collateral shall be reduced by a specified percentage. Long-term Debt. On August 16, 2004, the Company closed its offering of $250.0 million 6.00% coupon Senior Notes due August 15, 2014 (the “2014 Senior Notes”). The net proceeds from the 2014 Senior Notes offering, before offering expenses, were $249.3 million . On December 16, 2013, the Company redeemed the 2014 Senior Notes. The redemption resulted in a realized loss, or make-whole payment, of $9.3 million which is reflected in net realized and unrealized investment gains and losses of the statement of operations and other comprehensive income. On December 15, 2010, the Company closed its offering of $250.0 million 6.00% coupon Senior Notes due December 15, 2020. The net proceeds from this offering, before offering expenses, were $247.5 million . On November 13, 2013, the Company closed its offering of $300.0 million 4.65% Senior Notes due November 15, 2023 (the “2023 Senior Notes”). The net proceeds from the 2023 Senior Notes offering, before offering expenses, were $299.7 million and a portion of the proceeds was used to redeem the outstanding 2014 Senior Notes. Subject to applicable law, the 2023 Senior Notes will be the senior unsecured obligations of Aspen Holdings and will rank equally in right of payment with all of our other senior unsecured indebtedness from time to time outstanding. Subject to certain exceptions, so long as any of the Senior Notes remains outstanding, we have agreed that neither we nor any of our subsidiaries will (i) create a lien on any shares of capital stock of any designated subsidiary (currently Aspen U.K. and Aspen Bermuda, as defined in the Indenture), or (ii) issue, sell, assign, transfer or otherwise dispose of any shares of capital stock of any designated subsidiary. Certain events will constitute an event of default under the Indenture, including default in payment at maturity of any of our other indebtedness in excess of $50.0 million . Silverton, our Bermuda-domiciled special purpose insurer, was established in December 2013 to provide additional collateralized capacity to support Aspen Re’s global reinsurance business. The operations of Silverton commenced on January 1, 2014. On December 27, 2013, Silverton issued $65.0 million of loan notes (of which $50.0 million was issued to third parties), which will provide quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. The Company’s maximum loss exposure to Silverton in relation to the 2014 Loan Notes is its $0.2 million note holdings as December 31, 2015 due to mature on September 16, 2016. On December 23, 2014, Silverton issued $85.0 million of participating notes (of which $70.0 million was issued to third parties), which will provide quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. The Company’s maximum loss exposure to Silverton in relation to the 2015 Loan Notes is its $19.2 million note holdings as at December 31, 2015 due to mature on September 18, 2017. On December 22, 2015 , Silverton issued $125.0 million of participating notes (of which $100.0 million was issued to third parties), which will provide quota share support for Aspen Re’s global property catastrophe excess of loss reinsurance business. The Company’s maximum loss exposure to Silverton in relation to the 2016 Loan Notes is its $25.0 million note holdings as at December 31, 2015 due to mature on September 17, 2018 . The following table summarizes our contractual obligations under the long-term debts as of December 31, 2015 . Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ — $ 250.0 $ 300.0 $ 550.0 The Senior Notes obligation disclosed above does not include the $29.0 million annual interest payable associated with the Senior Notes or the loan notes issued by Silverton. For more information on Silverton, please refer to Note 7, “Variable Interest Entities” of these consolidated financial statements. |
Unaudited Quarterly Financial D
Unaudited Quarterly Financial Data | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Unaudited Quarterly Financial Data | Unaudited Quarterly Financial Data The following is a summary of the quarterly financial data for the twelve months ended December 31, 2015 , 2014 and 2013 . 2015 Quarter Ended March 31 Quarter Ended June 30 Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 593.6 $ 609.4 $ 640.6 $ 629.7 $ 2,473.3 Net investment income 47.4 46.7 45.0 46.4 185.5 Realized and unrealized investment gains 57.4 13.5 10.7 12.9 94.5 Other income 3.9 (1.2 ) (2.3 ) (0.3 ) 0.1 Total revenues 702.3 668.4 694.0 688.7 2,753.4 Expenses Losses and loss adjustment expenses 306.1 360.5 365.6 334.0 1,366.2 Amortization of deferred policy acquisition costs 119.3 114.1 132.0 118.2 483.6 General, administrative and corporate expenses 102.2 95.4 100.5 125.9 424.0 Interest on long-term debt 7.4 7.3 7.4 7.4 29.5 Change in fair value of derivatives 7.8 (2.0 ) (10.1 ) (2.5 ) (6.8 ) Change in fair value of loan notes issued by variable interest entities 2.9 3.3 8.3 5.3 19.8 Realized and unrealized investment losses/(gains) 14.5 28.8 51.9 (17.7 ) 77.5 Net realized and unrealized foreign exchange losses/(gains) 6.4 11.6 8.4 (5.0 ) 21.4 Other expenses 2.6 (1.8 ) — (0.1 ) 0.7 Total expenses 569.2 617.2 664.0 565.5 2,415.9 Income from operations before income tax 133.1 51.2 30.0 123.2 337.5 Income tax (expense) (5.1 ) (2.2 ) (1.8 ) (5.3 ) (14.4 ) Net income $ 128.0 $ 49.0 $ 28.2 $ 117.9 $ 323.1 Per Share Data Weighted average number of ordinary share and share equivalents Basic 62,159,303 61,408,633 60,779,295 60,784,832 61,287,884 Diluted 63,532,662 62,896,907 62,155,125 62,176,505 62,687,503 Basic earnings per ordinary share adjusted for preference share dividends $ 1.91 $ 0.64 $ 0.30 $ 1.78 $ 4.64 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.87 $ 0.62 $ 0.30 $ 1.75 $ 4.54 2014 Quarter Ended Quarter Ended Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 566.5 $ 616.2 $ 610.4 $ 612.2 $ 2,405.3 Net investment income 49.5 46.1 48.0 46.7 190.3 Realized and unrealized investment gains/(losses) (1) 17.9 34.6 1.1 (7.3 ) 46.3 Other income 0.6 3.2 1.0 (0.3 ) 4.5 Total revenues 634.5 700.1 660.5 651.3 2,646.4 Expenses Losses and loss adjustment expenses 288.1 337.1 342.7 339.6 1,307.5 Amortization of deferred policy acquisition costs 112.0 108.9 115.5 114.8 451.2 General, administrative and corporate expenses 95.6 108.8 119.8 121.5 445.7 Interest on long-term debt 7.4 7.3 7.4 7.4 29.5 Change in fair value of derivatives (1.1 ) 4.6 5.1 6.6 15.2 Change in fair value of loan notes issued by variable interest entities 3.4 2.6 8.5 4.1 18.6 Realized and unrealized investment losses/(gains) (1) 4.3 3.3 21.2 (14.1 ) 14.7 Net realized and unrealized foreign exchange (gains)/losses (1) (0.1 ) (10.7 ) 1.3 3.9 (5.6 ) Other expenses 0.7 1.2 0.3 (0.5 ) 1.7 Total expenses 510.3 563.1 621.8 583.3 2,278.5 Income from operations before income tax 124.2 137.0 38.7 68.0 367.9 Income tax (expense) (3.8 ) (6.2 ) (1.3 ) (0.8 ) (12.1 ) Net income $ 120.4 $ 130.8 $ 37.4 $ 67.2 $ 355.8 Per Share Data Weighted average number of ordinary share and share equivalents Basic 65,289,351 65,447,128 65,116,463 62,206,260 64,536,491 Diluted 66,565,890 66,700,368 66,513,009 63,605,298 65,872,949 Basic earnings per ordinary share adjusted for preference share dividends $ 1.70 $ 1.85 $ 0.43 $ 0.92 $ 4.92 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.66 $ 1.82 $ 0.42 $ 0.90 $ 4.82 ____________________ (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and unrealized investment gains/(losses). 2013 Quarter Ended Quarter Ended Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 510.9 $ 544.0 $ 544.3 $ 572.6 $ 2,171.8 Net investment income 48.3 45.9 45.0 47.2 186.4 Realized and unrealized investment gains 16.3 14.4 23.6 2.6 56.9 Other income 1.1 0.9 1.6 4.6 8.2 Total revenues 576.6 605.2 614.5 627.0 2,423.3 Expenses Losses and loss adjustment expenses 268.7 333.4 290.2 331.4 1,223.7 Amortization of deferred policy acquisition costs 104.6 107.2 110.5 99.7 422.0 General, administrative and corporate expenses 86.6 87.7 98.9 94.9 368.1 Interest on long-term debt 7.7 7.8 7.7 9.5 32.7 Change in fair value of derivatives 4.2 2.9 (6.6 ) (1.8 ) (1.3 ) Realized and unrealized investment losses/(gains) 1.1 21.0 5.9 (7.5 ) 20.5 Net realized and unrealized foreign exchange losses/(gains) 5.4 4.1 (2.4 ) 6.1 13.2 Other expenses 0.6 — — 1.1 1.7 Total expenses 478.9 564.1 504.2 533.4 2,080.6 Income from operations before income tax 97.7 41.1 110.3 93.6 342.7 Income tax (expense) (5.9 ) (1.0 ) (2.9 ) (3.6 ) (13.4 ) Net income $ 91.8 $ 40.1 $ 107.4 $ 90.0 $ 329.3 Per Share Data Weighted average number of ordinary share and share equivalents Basic 68,854,286 66,191,426 66,716,202 65,593,669 66,872,048 Diluted 72,452,705 69,291,324 68,561,515 67,051,993 69,417,903 Basic earnings per ordinary share adjusted for preference share dividends $ 1.21 $ 0.38 $ 1.47 $ 1.23 $ 4.29 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.15 $ 0.36 $ 1.43 $ 1.21 $ 4.14 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 19, 2016, Aspen U.S. Holdings acquired 100% of the equity and voting interest of AG Logic Holdings, LLC(“AgriLogic”), a specialist U.S. crop managing general agency business with an integrated agricultural consultancy, for an initial purchase price of $53.0 million and additional contingent consideration subject to the future performance of the business. A significant proportion of the acquired business will be represented by intangible assets and goodwill with all other assets being immaterial. The acquisition further diversifies our portfolio of specialty insurance business and complements our strategy of building businesses which are founded on deep technical expertise. During 2015, AgriLogic as a managing general agent generated approximately $185.0 million in gross written premium for its insurance carriers. AgriLogic provides us with renewal rights on its existing book of business which we would initially access through a reinsurance arrangement, and will be written in subsequent periods on a direct basis. |
Schedule I - Investments
Schedule I - Investments | 12 Months Ended |
Dec. 31, 2015 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
Schedule I - Investments | SCHEDULE I - INVESTMENTS For the Twelve Months Ended December 31, 2015 , 2014 and 2013 The Company’s investments comprise investments in subsidiaries. |
Schedule II - Condensed Financi
Schedule II - Condensed Financial Information of Registrant | 12 Months Ended |
Dec. 31, 2015 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule II - Condensed Financial Information of Registrant | SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT BALANCE SHEETS As at December 31, 2015 and 2014 As at December 31, 2015 As at December 31, 2014 ($ in millions, except per share amounts) ASSETS Short-term investments (available for sale) $ 25.0 $ — Cash and cash equivalents 110.5 86.8 Investments in subsidiaries 3,439.4 3,368.5 Other investments 0.8 8.7 Eurobond issued by subsidiary 480.0 573.8 Long-term debt issued by Silverton 44.5 35.6 Intercompany funds due from affiliates 5.3 43.6 Other assets 9.0 — Total assets $ 4,114.5 $ 4,117.0 LIABILITIES Accrued expenses and other payables 15.7 52.5 Intercompany funds due to affiliates 129.7 96.1 Long-term debt 549.2 549.1 Total liabilities $ 694.6 $ 697.7 SHAREHOLDERS’ EQUITY Ordinary Shares: 60,918,373 shares of par value 0.15144558¢ each $ 0.1 $ 0.1 Preference Shares: 11,000,000 5.950% shares of par value 0.15144558¢ each (December 31, 2014 — 11,000,000) — — 5,327,500 7.401% shares of par value 0.15144558¢ each — — 6,400,000 7.250% shares of par value 0.15144558¢ each — — Additional paid in capital 1,075.3 1,134.3 Retained earnings 2,283.6 2,050.1 Non-controlling interest 1.3 0.5 Accumulated other comprehensive income, net of taxes: Unrealized gains on investments 60.2 165.4 Loss on derivatives (1.2 ) (3.8 ) Gains on foreign currency translation 0.6 72.7 Total accumulated other comprehensive income 59.6 234.3 Total shareholders’ equity 3,419.9 3,419.3 Total liabilities and shareholders’ equity $ 4,114.5 $ 4,117.0 ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME For the Twelve Months Ended December 31, 2015 , 2014 and 2013 Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 ($ in millions) Operating Activities: Equity in net earnings of subsidiaries and other investments $ 59.0 $ 146.9 $ 40.6 Dividend income 292.3 258.5 301.8 Interest income on Eurobond 29.5 29.5 44.6 Net realized and unrealized investment gains/(losses) 4.3 5.6 (6.3 ) Other income 1.9 1.9 1.9 Total revenues 387.0 442.4 382.6 Expenses: General, administrative and corporate expenses (34.4 ) (57.1 ) (20.6 ) Interest expense (29.5 ) (29.5 ) (32.7 ) Income from operations before income tax 323.1 355.8 329.3 Income tax — — — Net income 323.1 355.8 329.3 Amount attributable to non-controlling interest (0.8 ) (0.8 ) 0.5 Net income attributable to Aspen Insurance Holdings Limited ordinary shareholders 322.3 355.0 329.8 Other comprehensive income/(loss), net of taxes: Change in unrealized gains on investments (105.2 ) 34.9 (184.7 ) Loss on derivatives reclassified to interest expense — — 0.5 Net change from current period hedged transactions 2.6 (3.8 ) — Change in foreign currency translation adjustment (72.1 ) (15.9 ) (24.1 ) Other comprehensive (loss)/income, net of tax (174.7 ) 15.2 (208.3 ) Comprehensive income $ 147.6 $ 370.2 $ 121.5 ASPEN INSURANCE HOLDINGS LIMITED SCHEDULE II - CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Continued STATEMENTS OF CASH FLOWS For the Twelve Months Ended December 31, 2015 , 2014 and 2013 Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 ($ in millions) Cash Flows From/(Used In) Operating Activities: Net income (excluding equity in net earnings of subsidiaries) $ 256.4 $ 209.8 $ 288.8 Adjustments: Share-based compensation expenses 17.9 15.1 21.4 Realized and unrealized losses/(gains) (4.3 ) (5.6 ) 6.3 Loss on derivative contracts 1.2 — — Loss on derivative reclassified to interest expense — — 0.5 Change in other receivables — 1.1 — Change in other assets (9.0 ) 0.6 (2.8 ) Change in accrued expenses and other payables (36.8 ) 37.9 (5.5 ) Change in intercompany activities 71.9 32.3 104.3 Net cash generated by operating activities 297.3 291.2 413.0 Cash Flows From/(Used in) Investing Activities: Purchase of short term investments (25.0 ) — — Investment in subsidiaries (171.5 ) (56.6 ) (605.4 ) Investment in long-term debt issued by Silverton (25.0 ) (15.0 ) (15.0 ) Repayment of loan notes issued by Silverton 20.5 — — Investment in Micro-insurance (0.8 ) — — Net proceeds from other investments — 39.3 — Net cash (used in) investing activities (201.8 ) (32.3 ) (620.4 ) Cash Flows From/(Used in) Financing Activities: Proceeds from issuance of ordinary shares, net of issuance costs 6.8 2.7 21.2 Proceeds from issuance of preference shares, net of issuance costs — — 270.6 PIERS redeemed and cancelled — — (230.0 ) Ordinary share repurchase (83.7 ) (180.9 ) (309.6 ) Make-whole payment — — (9.3 ) Proceeds from long term debt — — 299.7 Debt redemption — — (250.0 ) Ordinary and preference share dividends paid (88.7 ) (88.1 ) (83.3 ) Proceeds from maturity of Eurobond 573.8 — 400.0 Eurobond purchased from subsidiary (480.0 ) — — Net cash (used in)/from financing activities (71.8 ) (266.3 ) 109.3 Increase/(decrease) in cash and cash equivalents 23.7 (7.4 ) (98.1 ) Cash and cash equivalents — beginning of period 86.8 94.2 192.3 Cash and cash equivalents — end of period $ 110.5 $ 86.8 $ 94.2 |
Schedule III - Supplementary In
Schedule III - Supplementary Insurance Information | 12 Months Ended |
Dec. 31, 2015 | |
Supplementary Insurance Information [Abstract] | |
Schedule III - Supplementary Insurance Information | SCHEDULE III - SUPPLEMENTARY INSURANCE INFORMATION For the Twelve Months Ended December 31, 2015 , 2014 and 2013 Supplementary Information ($ in millions) Year Ended December 31, 2015 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Premiums Earned Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 235.2 $ 2,409.5 $ 484.2 $ 1,072.6 $ 491.6 $ 224.7 $ 1,153.5 $ 146.5 Insurance 125.9 2,173.9 934.1 1,400.7 874.6 258.9 1,492.7 213.6 Total $ 361.1 $ 4,583.4 $ 1,418.3 $ 2,473.3 $ 185.5 $ 1,366.2 $ 483.6 $ 2,646.2 $ 360.1 Year to date December 31, 2014 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 156.4 $ 2,493.3 $ 680.1 $ 1,088.2 $ 497.8 $ 200.0 $ 1,124.0 $ 146.4 Insurance 142.6 1,907.5 554.9 1,317.1 809.7 251.2 1,391.2 205.5 Total $ 299.0 $ 4,400.8 $ 1,235.0 $ 2,405.3 $ 190.3 $ 1,307.5 $ 451.2 $ 2,515.2 $ 351.9 Year to date December 31, 2013 Deferred Policy Acquisition Costs Net Reserves for Losses and LAE Net Reserves for Unearned Premiums Net Premiums Earned Net Investment Income Losses and LAE Expenses Policy Acquisition Expenses Net Premium Written General and Administrative Expenses Reinsurance $ 131.9 $ 2,646.8 $ 529.9 $ 1,073.0 $ 481.7 $ 207.2 $ 1,082.0 $ 131.0 Insurance 130.3 1,699.4 598.8 1,098.8 742.0 214.8 1,217.7 185.9 Total $ 262.2 $ 4,346.2 $ 1,128.7 $ 2,171.8 $ 186.4 $ 1,223.7 $ 422.0 $ 2,299.7 $ 316.9 |
Schedule IV - Reinsurance
Schedule IV - Reinsurance | 12 Months Ended |
Dec. 31, 2015 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
Schedule IV - Reinsurance | SCHEDULE IV - REINSURANCE For the Twelve Months Ended December 31, 2015 , 2014 and 2013 Premiums Written Direct Assumed Ceded Net Amount ($ in millions) 2015 $ 1,748.4 $ 1,248.9 $ (351.1 ) $ 2,646.2 2014 $ 1,729.9 $ 1,172.8 $ (387.5 ) $ 2,515.2 2013 $ 1,512.8 $ 1,133.9 $ (347.0 ) $ 2,299.7 Premiums Earned Gross Amount Ceded to Other Companies Assumed From Other Companies Net Amount Percentage of Amount Assumed to Net ($ in millions, except for percentages) 2015 $ 1,703.3 $ (383.5 ) $ 1,153.5 $ 2,473.3 46.6 % 2014 $ 1,599.0 $ (331.3 ) $ 1,137.6 $ 2,405.3 47.3 % 2013 $ 1,366.8 $ (321.6 ) $ 1,126.6 $ 2,171.8 51.9 % |
Schedule V - Valuation and Qual
Schedule V - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule V - Valuation and Qualifying Accounts | SCHEDULE V - VALUATION AND QUALIFYING ACCOUNTS For the Twelve Months Ended December 31, 2015 , 2014 and 2013 Balance at Beginning of Year Charged to Costs and Expenses Charged to Other Accounts Deductions Balance at End of Year ($ in millions) 2015 Premiums receivable from underwriting activities $ 4.3 $ — $ (1.7 ) $ — $ 2.6 Reinsurance $ — $ — $ — $ — $ — 2014 Premiums receivable from underwriting activities $ 1.1 $ 3.2 $ — $ — $ 4.3 Reinsurance $ — $ — $ — $ — $ — 2013 Premiums receivable from underwriting activities $ 0.1 $ 1.0 $ — $ — $ 1.1 Reinsurance $ 0.2 $ (0.2 ) $ — $ — $ — |
Basis of Preparation and Sign37
Basis of Preparation and Significant Accounting Policies Basis of Preparation and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Use of Estimates | Use of Estimates Assumptions and estimates made by management have a significant effect on the amounts reported within the consolidated financial statements. The most significant of these relate to the losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, the fair value of derivatives and the fair value of other investments. All material assumptions and estimates are regularly reviewed and adjustments made as necessary, but actual results could turn out significantly different from those expected when the assumptions or estimates were made. |
Accounting for Insurance and Reinsurance Operations | Accounting for Insurance and Reinsurance Operations Premiums Earned. Premiums are recognized as revenues proportionately over the coverage period. Premiums earned are recorded in the statements of operations, net of the cost of purchased reinsurance. Premiums written which are not yet recognized as earned premium are recorded in the consolidated balance sheet as unearned premiums, gross of any ceded unearned premiums. Written and earned premiums, and the related costs, include estimates for premiums which have not yet been finally determined. These relate mainly to contractual provisions for the payment of adjustment or additional premiums, premiums payable under proportional treaties and delegated underwriting authorities, and reinstatement premiums. Adjustment and additional premiums are premiums charged which relate to experience during the policy term. The proportion of adjustable premiums included in the premium estimates varies between business lines with the largest adjustment premiums being in property and casualty reinsurance, marine, aviation and energy insurance and the smallest in property and casualty insurance. Premiums payable under proportional treaty contracts and delegated underwriting authorities are generally not reported to the Company until after the reinsurance coverage is in force. As a result, an estimate of these “pipeline” premiums is recorded. The Company estimates pipeline premiums based on projections of ultimate premium taking into account reported premiums and expected development patterns. Reinstatement premiums on assumed excess of loss reinsurance contracts are provided for based on experience under such contracts. Reinstatement premiums are the premiums charged for the restoration of the reinsurance limit of an excess of loss contract to its full amount after payment by the reinsurer of losses as a result of an occurrence and are recognized as revenue in full at the date of loss, triggering the payment of the reinstatement premiums. The payment of reinstatement premiums provides future insurance cover for the remainder of the initial policy term. An allowance for uncollectible premiums is established for possible non-payment of premium receivables, as deemed necessary. Outward reinsurance premiums, for when the Company purchases reinsurance or retrocessional coverage, are accounted for using the same accounting methodology as we use for inwards premiums. Premiums payable under reinsurance contracts that operate on a “losses occurring during” basis are accounted for in full over the period of coverage while those arising from “risks attaching during” policies are expensed over the earnings period of the premiums receivable from the reinsured business. Losses and Loss Adjustment Expenses. Losses represent the amount paid or expected to be paid to claimants in respect of events that have occurred on or before the balance sheet date. The costs of investigating, resolving and processing these claims are known as loss adjustment expenses (“LAE”). The statement of operations records these losses net of reinsurance, meaning that gross losses and loss adjustment expenses incurred are reduced by the amounts recovered or expected to be recovered under reinsurance contracts. Reinsurance. Written premiums, earned premiums, incurred claims, LAE and the amortization of deferred policy acquisition costs all reflect the net effect of assumed and ceded reinsurance transactions. Assumed reinsurance refers to the Company’s acceptance of certain insurance risks that other insurance companies have underwritten. Ceded reinsurance arises from contracts under which other insurance companies agree to share certain risks with the Company. Reinsurance accounting is followed when there is significant timing risk, significant underwriting risk and a reasonable possibility of significant loss. Reinsurance and retrocession does not isolate the ceding company from its obligations to policyholders. In the event that a reinsurer or retrocessionaire fails to meet its obligations, the ceding company’s obligations remain. The Company regularly evaluates the financial condition of its reinsurers and retrocessionaires and monitors the concentration of credit risk to minimize its exposure to financial loss from reinsurers’ and retrocessionaires’ insolvency. Where it is considered required, appropriate provision is made for balances deemed irrecoverable from reinsurers. Reserves. Insurance reserves are established for the total unpaid cost of claims and LAE in respect of events that have occurred by the balance sheet date, including the Company’s estimates of the total cost of claims incurred but not yet reported (“IBNR”). Claim reserves are reduced for estimated amounts of salvage and subrogation recoveries. Estimated amounts recoverable from reinsurers on unpaid losses and LAE are reflected as assets. For reported claims, reserves are established on a case-by-case basis within the parameters of coverage provided in the insurance policy or reinsurance agreement. For IBNR claims, reserves are estimated using a number of established actuarial methods to establish a range of estimates from which a management best estimate is selected. Both case and IBNR reserve estimates consider variables such as past loss experience, changes in legislative conditions, changes in judicial interpretation of legal liability, policy coverages and inflation. As many of the coverages underwritten involve claims that may not be ultimately settled for many years after they are incurred, subjective judgments as to the ultimate exposure to losses are an integral and necessary component of the loss reserving process. The Company regularly reviews its reserves, using a variety of statistical and actuarial techniques to analyze current claims costs, frequency and severity data, and prevailing economic, social and legal factors. Reserves established in prior periods are adjusted as claim experience develops and new information becomes available. Adjustments to previously estimated reserves are reflected in the financial results of the period in which the adjustments are made. The process of estimating required reserves does, by its very nature, involve considerable uncertainty. The level of uncertainty can be influenced by factors such as the existence of coverage with long duration payment patterns and changes in claims handling practices, as well as the factors noted above. Ultimate actual payments for claims and LAE could turn out to be significantly different from the Company’s estimates. Amortization of Deferred Policy Acquisition Costs. The costs directly related to writing an insurance policy are referred to as policy acquisition expenses and include commissions, premium taxes and profit commissions. With the exception of profit commissions, these expenses are incurred when a policy is issued, and only the costs directly related to the successful acquisition of new and renewal insurance and reinsurance contracts are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. Profit commissions are estimated based on the related performance criteria evaluated at the balance sheet date, with subsequent changes to those estimates recognized when they occur. On a regular basis a recoverability analysis is performed of the deferred policy acquisition costs in relation to the expected recognition of revenues, including anticipated investment income, and adjustments, if any, are reflected as period costs. Should the analysis indicate that the acquisition costs are unrecoverable, further analyses are performed to determine if a reserve is required to provide for losses which may exceed the related unearned premium. General, Administrative and Corporate Expenses. These costs represent the expenses incurred in running the business and include, but are not limited to compensation costs for employees, rental costs, IT development and operating costs and professional and consultancy fees. General, policy and administrative costs directly attributable to the successful acquisition of business are deferred and amortized over the same period as the corresponding premiums are recorded as revenues. When reporting the results for its operating segments, the Company includes expenses which are directly attributable to the segment plus an allocation of central administrative costs. Corporate expenses are not allocated to the Company’s operating segments as they typically do not fluctuate with the levels of premium written and are related to the Company’s operations which include group executive costs, group finance costs, group legal and actuarial costs and certain strategic and non-recurring costs. |
Accounting for Investments, Cash and Cash Equivalents | Accounting for Investments, Cash and Cash Equivalents Fixed Income Securities. The fixed income securities portfolio comprises securities issued by governments and government agencies, corporate bonds, mortgage and other asset-backed securities and bank loans. Investments in fixed income securities are classified as available for sale or trading and are reported at estimated fair value in the consolidated balance sheet. Investment transactions are recorded on the trade date with balances pending settlement reflected in the consolidated balance sheet under receivables for securities sold and accrued expenses and other payables for securities purchased, respectively. Fair values are based on quoted market prices and other data provided by third-party pricing services and index providers. Equity Securities. The Company’s equity securities comprise U.S. and foreign equity securities. They are classified as either trading or available for sale and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on quoted market prices in active markets from independent pricing sources. Short-term Investments. Short-term investments primarily comprise highly liquid debt securities with a maturity greater than three months but less than one year from the date of purchase and are held as part of the investment portfolio of the Company. Short-term investments are classified as either trading or available for sale and carried at estimated fair value. Gains and Losses. Realized gains or losses on the sale of investments are determined on the basis of the first in first out cost method and, for fixed income maturity available for sale securities, include adjustments to the cost basis of investments for declines in value that are considered to be other-than-temporary. Unrealized gains and losses represent the difference between the cost, or the cost as adjusted by amortization of any difference between its cost and its redemption value (“amortized cost”), of the security and its fair value at the reporting date and are included within other comprehensive income for securities classified as available for sale and in realized and unrealized investment gains or losses in the consolidated statement of operations for securities classified as trading. Other Investments. Other investments represent the Company’s investments that are recorded using the equity method of accounting. Adjustments to the fair value of these investments are made based on the net asset value of the investment. Catastrophe Bonds. Investments in catastrophe bonds are classified as trading and are carried on the consolidated balance sheet at estimated fair value. The fair values are based on independent broker-dealer quotes. Cash and Cash Equivalents. Cash and cash equivalents are carried at fair value. Cash and cash equivalents comprise cash on hand, deposits held on call with banks and other short-term highly liquid investments due to mature within three months from the date of purchase and which are subject to insignificant risk of change in fair value. Other-than-temporary Impairment of Investments. A security is impaired when its fair value is below its cost or amortized cost. The Company reviews its investment portfolio each quarter on an individual security basis for potential other-than-temporary impairment (“OTTI”) based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. OTTI is deemed to occur when there is no objective evidence to support recovery in value of a security and a) the Company intends to sell the security or more likely than not will be required to sell the security before recovery of its cost or adjusted amortized cost basis or b) it is deemed probable that the Company will be unable to collect all amounts due according to the contractual terms of the individual security. In the first case, the entire unrealized loss position is taken as an OTTI charge to realized losses in earnings. In the second case, the unrealized loss is separated into the amount related to credit loss and the amount related to all other factors. The OTTI charge related to credit loss is recognized in realized losses in earnings and the amount related to all other factors is recognized in other comprehensive income. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Equity securities do not have a maturity date and therefore the Company’s review of these securities utilizes a higher degree of judgment. In its review, the Company considers its ability and intent to hold an impaired equity security for a reasonable period of time to allow for a full recovery. Where an equity security is considered to be other-than-temporarily impaired, the entire charge is recognized in realized losses in earnings. The cost basis of the investment is reduced accordingly and no adjustments to the cost basis are made for subsequent recoveries in value. Although the Company reviews each security on a case by case basis, it has also established parameters focusing on the extent and duration of impairment to help identify securities in an unrealized loss position which are other-than-temporarily impaired. For fixed income securities in the available for sale portfolio, the Company considers securities which have been in an unrealized loss position for 12 months or more which currently have a market value of more than 20% below cost should be other-than-temporarily impaired. For equities in the available for sale portfolio, the Company considers declines in value to a level of 20% or more below cost for 12 consecutive months to indicate the security should be other-than-temporarily impaired. Investment Income. Investment income includes amounts received and accrued in respect of periodic interest (“coupons”) payable to the Company by the issuer of fixed income securities, equity dividends and interest credited on cash and cash equivalents. It also includes amortization of premium and accretion of discount in respect of fixed income securities. Investment management and custody fees are charged against net investment income reported in the consolidated statement of operations. |
Accounting for Derivative Financial Instruments | Accounting for Derivative Financial Instruments The Company enters into derivative instruments such as interest rate swaps and forward exchange contracts in order to manage certain market and credit risks. The Company records derivative instruments at fair value on the Company’s balance sheet as either assets or liabilities, depending on their rights and obligations. The accounting for the gain or loss due to the changes in the fair value of these instruments is dependent on whether the derivative qualifies as a hedge. If the derivative does not qualify as a hedge, the gains or losses are reported in earnings when they occur. If the derivative does qualify as a hedge, the accounting treatment varies based on the type of risk being hedged. |
Intangible Assets | Accounting for Intangible Assets Intangible assets are held in the consolidated balance sheet at cost less amortization and impairment. Amortization applies on a straight-line basis in respect of assets having a finite estimated useful economic life. The Company performs a qualitative assessment annually to determine whether it is more likely than not that an intangible asset considered to have an indefinite life, other than goodwill, is impaired. |
Office Properties and Equipment | Accounting for Office Properties and Equipment Office properties and equipment are carried at cost less accumulated depreciation. These assets are depreciated on a straight-line basis over the estimated useful lives of the assets. Computer equipment and software is depreciated between three and five years with depreciation for software commencing on the date the software is brought into use. Furniture and fittings are depreciated over four years and leasehold improvements are depreciated over the lesser of 15 years or the lease term. |
Foreign Currencies Translation | Accounting for Foreign Currencies Translation The reporting currency of the Company is the U.S. Dollar. The functional currencies of the Company’s foreign operations and branches are the currencies in which the majority of their business is transacted. Transactions in currencies other than the functional currency are measured in the functional currency of that operation at the exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in non-functional currencies are remeasured at the exchange rate prevailing at the balance sheet date and any resulting foreign exchange gains or losses are reflected in the statement of operations. Monetary and non-monetary assets and liabilities of the Company’s functional currency operations are translated into U.S. Dollars at the exchange rate prevailing at the balance sheet date. Income and expenses of these operations are translated at the exchange rate prevailing at the date of the transaction. Unrealized gains or losses arising from the translation of functional currencies are recorded net of tax as a component of other comprehensive income. |
Earnings per Ordinary Share | Earnings per Ordinary Share Basic earnings per ordinary share is determined by dividing net income available to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income after tax for the period. Diluted earnings per share reflect the effect on earnings of the average number of ordinary shares outstanding associated with dilutive securities. The dilutive effect of potentially dilutive securities is calculated using the treasury stock method. |
Accounting for Income Tax | Accounting for Income Tax Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. When the Company does not believe that, on the basis of available information, it is more likely than not that the deferred tax asset will be fully recovered, it recognizes a valuation allowance against its deferred tax assets to reduce assets to the recoverable amount. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Preference Shares | Accounting for Preference Shares The Company has in issue three classes of perpetual preference shares. The Company has no obligation to pay interest on these securities but they do carry entitlements to dividends payable at the discretion of the Board of Directors. In the event of non-payment of dividends for six consecutive periods, holders of preference shares have director appointment rights. They are therefore accounted for as equity instruments and included within total shareholders’ equity. |
Share-Based Employee Compensation | Accounting for Long-term Incentive Plans The Company operates an employee incentive plan, a director plan and employee share purchase plans, the terms and conditions of which are described in Note 18. The Company applies a fair-value based measurement method including estimates for future forfeitures in the calculation of the compensation costs of stock options, performance shares, phantom shares and restricted share units. |
Long-term debt issued by Silverton | Accounting for Long-term Debt Issued by Variable Interest Entities The consolidated variable interest entity, Silverton, has issued debt instruments due to mature on September 16, 2016, September 18, 2017 and September 17, 2018 which are further described in Note 7, “Variable Interest Entities” of these consolidated financial statements. This debt is separately identified on the Company’s balance sheet and the Company has elected to record the debt at fair value. The fair value option was elected due to the potential variability over the ultimate settlement value of the debt instruments. |
New Accounting Policies | New Accounting Pronouncements New Accounting Pronouncements Adopted in 2015 On April 10, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-08, “ Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360) ” which improves the definition of discontinued operations by limiting discontinued operations reporting to disposals of components of an entity that represent strategic shifts that have a major effect on an entity’s operations and financial results. The amendments in this ASU require expanded disclosures for discontinued operations. ASU 2014-08 is effective for fiscal years beginning after December 15, 2014 and interim periods therein. Early application is permitted, but only for disposals that have not been reported in financial statements previously issued or available for issuance. The ASU has no impact on its consolidated financial statements as no disposals were made by the Company for the twelve months ended December 31, 2014. On June 12, 2014, the FASB issued ASU 2014-11, “ Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures ” which provides guidance on accounting and disclosures for repurchase agreements and similar transactions. ASU 2014-11 is effective for fiscal years beginning after December 15, 2014 and interim periods beginning after December 15, 2015. Early application for a public business entity is prohibited. The ASU did not have a material impact on the Company's consolidated financial statements. On August 8, 2014, the FASB issued ASU 2014-14, “Receivables - Troubled debt restructuring by creditors (Subtopic 310-40)” which reduces diversity in practice by addressing the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs. ASU 2014-14 is effective for fiscal years beginning after December 15, 2014 and interim periods beginning after December 15, 2014. Early application for a public business entity is permitted. The ASU did not have a material impact on the Company's consolidated financial statements. |
Accounting Pronouncements Not Yet Adopted | Accounting Pronouncements Not Yet Adopted On August 27, 2014, the FASB issued ASU 2014-15, “Presentation of Financial Statements - Going Concern (Subtopic 204-40)” which provides U.S. GAAP guidance on management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern or to provide related footnote disclosures. ASU 2014-15 is effective for fiscal years beginning after December 15, 2016 and interim periods beginning after December 15, 2016. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. In November 2014, the FASB issued ASU 2014-16, “Derivatives and Hedging (Topic 815)” which provides guidance on reducing existing diversity under U.S. GAAP in the accounting for hybrid financial instruments issued in the form of a share. ASU 2014-16 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. In February 2015, the FASB issued ASU 2015-02, “ Business Combinations ( Topic 810) ” which provides guidance for reporting entities that are required to evaluate whether they should consolidate certain legal entities. ASU 2015-02 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2016. Early application for a public business entity is permitted. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On April 15, 2015, the FASB issued ASU 2015-05, “Intangibles - Goodwill and Other - Internal Use Software (Topic 350-40) ” which will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU 2015-05 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On April 17, 2015, the FASB issued ASU 2015-03, “ Interest - Imputation of Interest (Subtopic 835-30) ” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability. The ASU simplifies the presentation of debt issuance costs as part of FASB’s initiative to reduce complexity in accounting standards. ASU 2015-03 is effective for fiscal years beginning after December 15, 2015. The Company does not expect this ASU to have a material impact on its consolidated financial statements. On May 8, 2015, the FASB issued ASU 2015-08, “Business Combinations (Topic 805) Pushdown Accounting ” which conforms the FASB’s guidance on pushdown accounting with the SEC’s guidance. ASU 2015-08 is effective for annual periods beginning after December 15, 2015. The Company will apply the provisions of this standard in respect of its acquisition of AG Logic Holdings, LLC (“AgriLogic”). On May 21, 2015, the FASB issued ASU 2015-09, “Financial Services - Insurance (Topic 944) Disclosures About Short-Duration Contracts ” which requires insurance entities to disclose additional information about the liability for unpaid claims and claim adjustment expenses, disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses and disclose a rollforward of the liability for unpaid claims and claims adjustment expenses. ASU 2015-09 is effective for annual periods beginning after December 15, 2015 and interim periods within annual periods beginning after December 15, 2016. The Company does not expect this ASU to have a material impact on its consolidated financial results but it will have an impact on the disclosures in the Company’s Quarterly reports on Form 10-Q and Annual report on Form 10-K. On July 31, 2015, the FASB issued ASU 2015-12, “Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient” which simplifies the benefit plan disclosures and reporting requirements. ASU 2015-12 is effective for annual periods beginning after December 15, 2015. The ASU will not impact the Company’s financial statements as it does not classify any of its investment contracts as fully benefit-responsive investment contracts. On August 12, 2015, the FASB issued ASU 2015-14, “Revenue From Contracts With Customers (Topic 606)” which delays the effective date of ASU 2014-09 by one year. ASU 2015-14 is effective for annual periods beginning after December 15, 2015. The ASU will not impact the Company’s financial statements as insurance contracts accounted for within the scope of Topic 944, Financial-Services are exempt from this ASU. On September 25, 2015, the FASB issued ASU 2015-16, “Business Combinations (Topic 805)” which requires an acquirer to adjust retrospectively to provisional amounts recognized in a business combination. ASU 2015-16 is effective for annual periods beginning after December 15, 2016 and is not expected to have a material impact on the Company’s financial statements. On November 20, 2015, the FASB issued ASU 2015-17, “Income Taxes (Topic 740)” which eliminates the requirement to split deferred tax liabilities between current and non-current and classify all deferred tax liabilities as non-current in the balance sheet. ASU 2015-17 is effective for annual periods beginning after December 15, 2016 and interim periods within those periods. The Company does not expect this ASU to have a material impact on its consolidated financial results but it may have an impact on the disclosures in the Company’s Quarterly reports on Form 10-Q and Annual report on Form 10-K. Other accounting pronouncements were issued during the year ended December 31, 2015 which were not relevant to the Company. |
Earnings per Ordinary Share (Ta
Earnings per Ordinary Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings per Share | The following table sets forth the computation of basic and diluted earnings per share for the twelve months ended December 31, 2015 , 2014 , and 2013 , respectively: Twelve Months Ended December 31, 2015 2014 2013 Net income $ 323.1 $ 355.8 $ 329.3 Preference share dividends (37.8 ) (37.8 ) (35.5 ) Change in redemption value (1) — — (7.1 ) Net profit attributable to non-controlling interest (0.8 ) (0.8 ) 0.5 Basic and diluted net income available to ordinary shareholders $ 284.5 $ 317.2 $ 287.2 Ordinary shares: Basic weighted average ordinary shares 61,287,884 64,536,491 66,872,048 Weighted average effect of dilutive securities (2) 1,399,619 1,336,458 2,545,855 Total diluted weighted average ordinary shares 62,687,503 65,872,949 69,417,903 Earnings per ordinary share: Basic $ 4.64 $ 4.92 $ 4.29 Diluted $ 4.54 $ 4.82 $ 4.14 _______________ (1) The $ 7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $ 230.0 million . For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. (2) Dilutive securities comprise: employee options, restricted share units and performance shares associated with the Company’s long term incentive plan, employee share purchase plans and director restricted stock units and options as described in Note 18. |
Summary of Declared Dividends | Dividends. On February 4, 2016, the Company’s Board of Directors declared the following quarterly dividends: Dividend Payable on: Record Date: Ordinary shares $ 0.21 March 9, 2016 February 20, 2016 7.401% Preference Shares $ 0.462563 April 1, 2016 March 15, 2016 7.250% Preference Shares $ 0.4531 April 1, 2016 March 15, 2016 5.95% Preference Shares $ 0.3719 April 1, 2016 March 15, 2016 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of Company's business segments | The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the twelve months ended December 31, 2015 , 2014 and 2013 : Twelve Months Ended December 31, 2015 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,248.9 $ 1,748.4 $ 2,997.3 Net written premiums 1,153.5 1,492.7 2,646.2 Gross earned premiums 1,153.5 1,703.3 2,856.8 Net earned premiums 1,072.6 1,400.7 2,473.3 Underwriting Expenses Losses and loss adjustment expenses 491.6 874.6 1,366.2 Amortization of deferred policy acquisition costs 224.7 258.9 483.6 General and administrative expenses 146.5 213.6 360.1 Underwriting income 209.8 53.6 263.4 Corporate expenses (63.9 ) Net investment income 185.5 Realized and unrealized investment gains 94.5 Realized and unrealized investment losses (77.5 ) Change in fair value of loan notes issued by variable interest entities (19.8 ) Change in fair value of derivatives 6.8 Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange (losses) (21.4 ) Other income 0.1 Other expenses (0.7 ) Income before tax 337.5 Income tax expense (14.4 ) Net income $ 323.1 Net reserves for loss and loss adjustment expenses $ 2,409.5 $ 2,173.9 $ 4,583.4 Ratios Loss ratio 45.8 % 62.4 % 55.2 % Policy acquisition expense ratio 20.9 18.5 19.6 General and administrative expense ratio (1) 13.7 15.2 17.1 Expense ratio 34.6 33.7 36.7 Combined ratio 80.4 % 96.1 % 91.9 % _______________ (1) The general and administrative expense ratio in the total column includes corporate expenses. Twelve Months Ended December 31, 2014 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,172.8 $ 1,729.9 $ 2,902.7 Net written premiums 1,124.0 1,391.2 2,515.2 Gross earned premiums 1,137.6 1,599.0 2,736.6 Net earned premiums 1,088.2 1,317.1 2,405.3 Underwriting Expenses Losses and loss adjustment expenses 497.8 809.7 1,307.5 Amortization of deferred policy acquisition costs 200.0 251.2 451.2 General and administrative expenses 146.4 205.5 351.9 Underwriting income 244.0 50.7 294.7 Corporate expenses (93.8 ) Net investment income 190.3 Realized and unrealized investment gains 46.3 Realized and unrealized investment losses (14.7 ) Change in fair value of loan notes issued by variable interest entities (18.6 ) Change in fair value of derivatives (15.2 ) Interest expense on long term debt (29.5 ) Net realized and unrealized foreign exchange gains 5.6 Other income 4.5 Other expenses (1.7 ) Income before tax 367.9 Income tax expense (12.1 ) Net income $ 355.8 Net reserves for loss and loss adjustment expenses $ 2,493.3 $ 1,907.5 $ 4,400.8 Ratios Loss ratio 45.7 % 61.5 % 54.4 % Policy acquisition expense ratio 18.4 19.1 18.8 General and administrative expense ratio (1) 13.5 15.6 18.5 Expense ratio 31.9 34.7 37.3 Combined ratio 77.6 % 96.2 % 91.7 % ________________ (1) The general and administrative expense ratio in the total column includes corporate expenses. Twelve Months Ended December 31, 2013 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,133.9 $ 1,512.8 $ 2,646.7 Net written premiums 1,082.0 1,217.7 2,299.7 Gross earned premiums 1,126.6 1,366.8 2,493.4 Net earned premiums 1,073.0 1,098.8 2,171.8 Underwriting Expenses Losses and loss adjustment expenses 481.7 742.0 1,223.7 Amortization of deferred policy acquisition costs 207.2 214.8 422.0 General and administrative expenses 131.0 185.9 316.9 Underwriting income/(loss) 253.1 (43.9 ) 209.2 Corporate expenses (51.2 ) Net investment income 186.4 Realized and unrealized investment gains 56.9 Realized and unrealized investment losses (20.5 ) Change in fair value of derivatives 1.3 Interest expense on long term debt (32.7 ) Net realized and unrealized foreign exchange (losses) (13.2 ) Other income 8.2 Other expenses (1.7 ) Income before tax 342.7 Income tax expense (13.4 ) Net income $ 329.3 Net reserves for loss and loss adjustment expenses $ 2,646.8 $ 1,699.4 $ 4,346.2 Ratios Loss ratio 44.9 % 67.5 % 56.3 % Policy acquisition expense ratio 19.3 19.5 19.4 General and administrative expense ratio (1) 12.2 16.9 16.9 Expense ratio 31.5 36.4 36.3 Combined ratio 76.4 % 103.9 % 92.6 % _______________ (1) The general and administrative expense ratio in the total column includes corporate expenses. |
Schedule of the Company's gross written premiums based on the location of the insured risk | Geographical Areas — The following summary presents the Company’s gross written premiums based on the location of the insured risk. For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Australia/Asia $ 140.0 $ 130.1 $ 108.4 Caribbean 20.3 19.7 14.4 Europe 113.6 113.9 112.2 United Kingdom 223.6 209.3 166.4 United States & Canada (1) 1,479.5 1,357.3 1,179.6 Worldwide excluding United States (2) 107.2 116.2 145.7 Worldwide including United States (3) 793.6 851.8 827.4 Others 119.5 104.4 92.6 Total $ 2,997.3 $ 2,902.7 $ 2,646.7 ______________ (1) “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere. (2) “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States. (3) “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | Investment Income. The following table summarizes investment income for the twelve months ended December 31, 2015 , 2014 and 2013 : For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Fixed income securities — Available for sale $ 143.4 $ 151.1 $ 155.6 Fixed income securities — Trading 27.8 26.7 20.3 Short-term investments — Available for sale 1.1 1.4 2.1 Fixed term deposits (included in cash and cash equivalents) 3.0 3.3 5.3 Equity securities — Available for sale 0.1 4.1 5.6 Equity securities — Trading 20.0 13.0 7.0 Catastrophe bonds — Trading 1.9 1.3 — Total 197.3 200.9 195.9 Investment expenses (11.8 ) (10.6 ) (9.5 ) Net investment income $ 185.5 $ 190.3 $ 186.4 |
Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments | The following table summarizes the net realized and unrealized investment gains and losses recorded in the statement of operations and the change in unrealized gains and losses on investments recorded in other comprehensive income: For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 11.7 $ 10.3 $ 18.2 Fixed income securities — gross realized (losses) (2.7 ) (5.9 ) (7.4 ) Equity securities — gross realized gains 31.9 12.9 18.0 Equity securities — gross realized (losses) (3.0 ) (0.8 ) (0.3 ) Other-than-temporary impairments — (2.4 ) — Trading: Fixed income securities — gross realized gains 4.9 7.3 9.5 Fixed income securities — gross realized (losses) (6.1 ) (2.5 ) (2.9 ) Equity securities — gross realized gains 46.0 7.8 2.1 Equity securities — gross realized (losses) (31.7 ) (3.1 ) (0.6 ) Catastrophe bonds (0.3 ) 0.4 — Net change in gross unrealized (losses) gains (33.1 ) 7.6 6.1 Other investments: Gross realized and unrealized gains in Cartesian — — 3.0 Gross unrealized loss in Chaspark (0.6 ) — — Other realized losses — — (9.3 ) Total net realized and unrealized investment gains recorded in the statement of operations $ 17.0 $ 31.6 $ 36.4 Change in available for sale net unrealized gains: Fixed income securities (82.2 ) 47.7 (209.6 ) Short-term investments (0.1 ) — — Equity securities (27.3 ) (10.0 ) 11.2 Total change in pre-tax available for sale unrealized gains (109.6 ) 37.7 (198.4 ) Change in taxes 4.4 (2.8 ) 13.7 Total change in net unrealized gains, net of taxes recorded in other comprehensive income $ (105.2 ) $ 34.9 $ (184.7 ) |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities, Short-Term Investments and Equities | The following tables present the cost or amortized cost, gross unrealized gains and losses and estimated fair market value of available for sale investments in fixed income securities, short-term investments and equity securities as at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,113.9 $ 13.0 $ (3.8 ) $ 1,123.1 U.S. agency 154.5 4.3 (0.1 ) 158.7 Municipal 25.0 1.6 — 26.6 Corporate 2,626.2 49.5 (15.1 ) 2,660.6 Non-U.S. government-backed corporate 81.6 0.6 (0.1 ) 82.1 Foreign government 634.6 10.5 (0.9 ) 644.2 Asset-backed 75.4 0.9 (0.3 ) 76.0 Non-agency commercial mortgage-backed 25.5 1.2 — 26.7 Agency mortgage-backed 1,130.8 27.6 (5.3 ) 1,153.1 Total fixed income securities — Available for sale 5,867.5 109.2 (25.6 ) 5,951.1 Total short-term investments — Available for sale 162.9 — — 162.9 Total $ 6,030.4 $ 109.2 $ (25.6 ) $ 6,114.0 The Company no longer holds equity investments in its available for sale portfolio. All equities are held in the trading portfolio. As at December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,074.2 $ 21.5 $ (1.3 ) $ 1,094.4 U.S. agency 190.0 7.5 (0.1 ) 197.4 Municipal 29.1 2.4 — 31.5 Corporate 2,244.7 79.9 (5.2 ) 2,319.4 Non-U.S. government-backed corporate 76.8 1.2 — 78.0 Foreign government 648.6 17.3 (0.2 ) 665.7 Asset-backed 141.3 2.4 (0.2 ) 143.5 Non-agency commercial mortgage-backed 41.5 3.3 — 44.8 Agency mortgage-backed 1,016.7 40.8 (2.2 ) 1,055.3 Total fixed income securities — Available for sale 5,462.9 176.3 (9.2 ) 5,630.0 Total short-term investments — Available for sale 258.2 0.1 — 258.3 Total equity securities — Available for sale 82.6 27.3 — 109.9 Total $ 5,803.7 $ 203.7 $ (9.2 ) $ 5,998.2 |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities | The following tables present the cost or amortized cost, gross unrealized gains and losses, and estimated fair market value of trading investments in fixed income securities, short-term investments, equity securities and catastrophe bonds as at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 27.4 $ — $ (0.1 ) $ 27.3 Municipal 0.5 — — 0.5 Corporate 561.9 5.9 (9.6 ) 558.2 Foreign government 181.5 1.7 (3.7 ) 179.5 Asset-backed 20.7 — (0.2 ) 20.5 Bank loans 2.2 — (0.2 ) 2.0 Total fixed income securities — Trading 794.2 7.6 (13.8 ) 788.0 Total short-term investments — Trading 9.5 — — 9.5 Total equity securities — Trading 722.5 57.3 (43.4 ) 736.4 Total catastrophe bonds — Trading 55.2 0.3 (0.1 ) 55.4 Total $ 1,581.4 $ 65.2 $ (57.3 ) $ 1,589.3 As at December 31, 2014 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. agency 0.2 — — 0.2 Municipal 1.1 — — 1.1 Corporate 520.9 11.7 (2.8 ) 529.8 Foreign government 137.3 4.3 (1.5 ) 140.1 Asset-backed 14.6 0.1 — 14.7 Bank loans 86.8 — (1.7 ) 85.1 Total fixed income securities — Trading 760.9 16.1 (6.0 ) 771.0 Total short-term investments — Trading 0.2 — — 0.2 Total equity securities — Trading 585.2 55.5 (24.7 ) 616.0 Total catastrophe bonds — Trading 34.4 0.4 — 34.8 Total $ 1,380.7 $ 72.0 $ (30.7 ) $ 1,422.0 |
Other Investments | The table below shows the Company’s investments in MVI, Cartesian and Chaspark for the twelve months ended December 31, 2015 and 2014 : MVI Cartesian Chaspark Total ($ in millions) Opening undistributed value of investment as at January 1, 2015 $ — $ — $ 8.7 $ 8.7 Initial investment for the twelve months to December 31, 2015 0.8 — — 0.8 Gross realized and unrealized loss — — (0.6 ) (0.6 ) Closing value of investment as at December 31, 2015 $ 0.8 $ — $ 8.1 $ 8.9 Opening undistributed value of investment as at January 1, 2014 $ — $ 39.3 $ 8.7 $ 48.0 Distribution for the twelve months to December 31, 2014 — (39.3 ) — (39.3 ) Closing value of investment as at December 31, 2014 $ — $ — $ 8.7 $ 8.7 |
Summary of Fixed Maturities | The scheduled maturity distribution of the Company’s available for sale fixed income securities as at December 31, 2015 and December 31, 2014 is set forth below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at December 31, 2015 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 661.8 $ 664.4 AA Due after one year through five years 2,765.2 2,806.6 AA- Due after five years through ten years 1,122.5 1,132.0 A+ Due after ten years 86.3 92.3 A+ Subtotal 4,635.8 4,695.3 Non-agency commercial mortgage-backed 25.5 26.7 AA+ Agency mortgage-backed 1,130.8 1,153.1 AA+ Asset-backed 75.4 76.0 AAA Total fixed income securities — Available for sale $ 5,867.5 $ 5,951.1 At December 31, 2014 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 590.2 $ 594.7 AA Due after one year through five years 2,552.0 2,620.8 AA- Due after five years through ten years 1,023.5 1,059.9 A+ Due after ten years 97.7 111.0 A+ Subtotal 4,263.4 4,386.4 Non-agency commercial mortgage-backed 41.5 44.8 AA+ Agency mortgage-backed 1,016.7 1,055.3 AA+ Asset-backed 141.3 143.5 AAA Total fixed income securities — Available for sale $ 5,462.9 $ 5,630.0 |
Aggregate Fair Value and Gross Unrealized Loss by Type of Security | The following tables summarize as at December 31, 2015 and December 31, 2014 , by type of security, the aggregate fair value and gross unrealized loss by length of time the security has been in an unrealized loss position for the Company’s available for sale portfolio: December 31, 2015 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 583.2 $ (3.7 ) $ 4.6 $ (0.1 ) $ 587.8 $ (3.8 ) 72 U.S. agency 17.6 (0.1 ) — — 17.6 (0.1 ) 12 Municipal 1.7 — — — 1.7 — 3 Corporate 1,179.7 (13.3 ) 81.1 (1.8 ) 1,260.8 (15.1 ) 510 Non-U.S. government-backed corporate 40.9 (0.1 ) — — 40.9 (0.1 ) 9 Foreign government 174.6 (0.8 ) 2.8 (0.1 ) 177.4 (0.9 ) 43 Asset-backed 51.4 (0.3 ) 4.2 — 55.6 (0.3 ) 39 Agency mortgage-backed 348.1 (3.6 ) 72.2 (1.7 ) 420.3 (5.3 ) 105 Total fixed income securities — Available for sale 2,397.2 (21.9 ) 164.9 (3.7 ) 2,562.1 (25.6 ) 793 Total short-term investments — Available for sale 56.7 — — — 56.7 — 12 Total $ 2,453.9 $ (21.9 ) $ 164.9 $ (3.7 ) $ 2,618.8 $ (25.6 ) 805 December 31, 2014 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Fair Market Value Gross Unrealized Losses Number of Securities ($ in millions) U.S. government $ 166.1 $ (0.5 ) $ 79.4 $ (0.8 ) $ 245.5 $ (1.3 ) 39 U.S. agency 25.1 — 4.9 (0.1 ) 30.0 (0.1 ) 7 Corporate 459.4 (2.1 ) 171.3 (3.1 ) 630.7 (5.2 ) 274 Non-U.S. government-backed corporate 0.7 — — — 0.7 — 1 Foreign government 30.4 — 44.2 (0.2 ) 74.6 (0.2 ) 16 Asset-backed 43.7 (0.1 ) 11.7 (0.1 ) 55.4 (0.2 ) 43 Agency mortgage-backed 64.7 (0.3 ) 111.7 (1.9 ) 176.4 (2.2 ) 48 Total fixed income securities — Available for sale 790.1 (3.0 ) 423.2 (6.2 ) 1,213.3 (9.2 ) 428 Total short-term investments — Available for sale 4.6 — — — 4.6 — 3 Total $ 794.7 $ (3.0 ) $ 423.2 $ (6.2 ) $ 1,217.9 $ (9.2 ) 431 |
Analysis of Investment Purchases/Sales and Maturities | The following table summarizes investment purchases, sales and maturities for the twelve months ended December 31, 2015 , 2014 and 2013 : For the Twelve Months Ended December 31, 2015 December 31, 2014 December 31, 2013 ($ in millions) (Purchases) of fixed income securities — Available for sale $ (2,131.9 ) $ (2,005.0 ) $ (2,129.8 ) (Purchases) of fixed income securities — Trading (556.9 ) (653.4 ) (763.4 ) (Purchases) of equity securities — Available for sale — — (2.5 ) (Purchases) of equity securities — Trading (392.2 ) (361.0 ) (304.4 ) Proceeds from sales and maturities of fixed income securities — Available for sale 1,656.3 1,909.5 1,872.3 Proceeds from sales and maturities of fixed income securities — Trading 519.9 615.9 486.0 Proceeds from sales of equity securities — Available for sale 108.6 40.0 82.2 Proceeds from sales of equity securities — Trading 270.8 62.2 24.1 Net change in (payable)/receivable for securities (purchased)/sold (2.1 ) 2.8 (0.9 ) (Purchases) of short-term investments — Available for sale (212.1 ) (580.6 ) (382.3 ) Proceeds from short-term investments — Available for sale 282.6 470.3 640.5 (Purchases) of short-term investments — Trading (45.6 ) (114.2 ) (80.3 ) Proceeds from short-term investments — Trading 36.3 114.0 82.7 Investment in Micro-insurance Venture (0.8 ) — — Net proceeds/(purchases) of catastrophe bonds — Trading (20.9 ) (28.7 ) (5.8 ) Proceeds from other investments — 39.3 — Net (purchases) for the year $ (488.0 ) $ (488.9 ) $ (481.6 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured on Recurring Basis | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and liabilities are measured on a recurring basis at December 31, 2015 and December 31, 2014 : As at December 31, 2015 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,123.1 $ — $ — $ 1,123.1 U.S. agency — 158.7 — 158.7 Municipal — 26.6 — 26.6 Corporate — 2,660.6 — 2,660.6 Non-U.S. government-backed corporate — 82.1 — 82.1 Foreign government 449.5 194.7 — 644.2 Asset-backed — 76.0 — 76.0 Non-agency commercial mortgage-backed — 26.7 — 26.7 Agency mortgage-backed — 1,153.1 — 1,153.1 Total fixed income securities available for sale, at fair value 1,572.6 4,378.5 — 5,951.1 Short-term investments available for sale, at fair value 130.5 32.4 — 162.9 Equity investments available for sale, at fair value — — — — Held for trading financial assets, at fair value U.S. government 27.3 — — 27.3 U.S. agency — — — — Municipal — 0.5 — 0.5 Corporate — 558.2 — 558.2 Foreign government 73.8 105.7 — 179.5 Asset-backed — 20.5 — 20.5 Bank loans — 2.0 — 2.0 Total fixed income securities trading, at fair value 101.1 686.9 — 788.0 Short-term investments trading, at fair value 7.4 2.1 — 9.5 Equity investments trading, at fair value 736.4 — — 736.4 Catastrophe bonds trading, at fair value — 55.4 — 55.4 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 8.8 — 8.8 Derivatives at fair value — interest rate swaps — 0.4 — 0.4 Liabilities under derivative contracts — foreign exchange contracts — (4.0 ) — (4.0 ) Loan notes issued by variable interest entities, at fair value — — (103.0 ) (103.0 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (87.6 ) (87.6 ) Total $ 2,548.0 $ 5,160.5 $ (190.6 ) $ 7,517.9 There were no maturities or transfers between Level 1, Level 2 and Level 3 during the twelve months ended December 31, 2015 . The Company settled $67.8 million Level 3 liabilities in respect to the loan notes issued by the VIEs for the twelve months ended December 31, 2015 . As at December 31, 2015 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted of the loan notes issued by the VIEs. At December 31, 2014 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,094.4 $ — $ — $ 1,094.4 U.S. agency — 197.4 — 197.4 Municipal — 31.5 — 31.5 Corporate — 2,319.4 — 2,319.4 Non-U.S. government-backed corporate — 78.0 — 78.0 Foreign government 456.5 209.2 — 665.7 Asset-backed — 143.5 — 143.5 Non-agency commercial mortgage-backed — 44.8 — 44.8 Agency mortgage-backed — 1,055.3 — 1,055.3 Total fixed income securities available for sale, at fair value 1,550.9 4,079.1 — 5,630.0 Short-term investments available for sale, at fair value 229.3 29.0 — 258.3 Equity investments available for sale, at fair value 109.9 — — 109.9 Held for trading financial assets, at fair value U.S. government — — — — U.S. agency — 0.2 — 0.2 Municipal — 1.1 — 1.1 Corporate — 529.8 — 529.8 Foreign government 36.1 104.0 — 140.1 Asset-backed — 14.7 — 14.7 Bank loans — 85.1 — 85.1 Total fixed income securities trading, at fair value 36.1 734.9 — 771.0 Short-term investments trading, at fair value 0.1 0.1 — 0.2 Equity investments trading, at fair value 616.0 — — 616.0 Catastrophe bonds trading, at fair value — 34.8 — 34.8 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 7.9 — 7.9 Derivatives at fair value — interest rate swaps — 0.1 — 0.1 Liabilities under derivative contracts — foreign exchange contracts — (14.3 ) — (14.3 ) Loan notes issued by variable interest entities, at fair value — — (70.7 ) (70.7 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (67.9 ) (67.9 ) Total $ 2,542.3 $ 4,871.6 $ (138.6 ) $ 7,275.3 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the twelve months ended December 31, 2015 : Reconciliation of Liabilities Using Level 3 Inputs Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 ($ in millions) Balance at the beginning of the period (1) $ 138.6 $ 50.0 Distributed to third party (67.8 ) — Loan notes issued during the period 100.0 70.0 Total change in fair value included in the statement of operations 19.8 18.6 Balance at the end of the period (1) $ 190.6 $ 138.6 |
Pricing Sources Used in Pricing Fixed Income Investments | Pricing sources used in pricing fixed income investments at December 31, 2015 and December 31, 2014 were as follows: As at December 31, 2015 At December 31, 2014 Index providers 85 % 84 % Pricing services 10 11 Broker-dealers 5 5 Total 100 % 100 % |
Summary of Securities Priced Using Pricing Information from Index Providers | A summary of securities priced using pricing information from index providers at December 31, 2015 and December 31, 2014 is provided below: As at December 31, 2015 At December 31, 2014 Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type ($ in millions, except for percentages) U.S. government $ 1,095.4 95% $ 1,044.4 95% U.S. agency 148.5 94% 186.9 95% Municipal 10.5 39% 13.7 42% Corporate 3,083.5 96% 2,731.1 96% Non-U.S. government-backed corporate 41.7 51% 48.7 62% Foreign government 517.6 63% 504.4 63% Asset-backed 55.3 57% 140.5 89% Non-agency commercial mortgage-backed 22.7 85% 44.8 100% Agency mortgage-backed 742.9 64% 680.6 64% Total fixed income securities $ 5,718.1 85% $ 5,395.1 84% Equities $ 736.4 100% $ 725.9 100% Total fixed income securities and equity investments $ 6,454.5 86% $ 6,121.0 86% |
Fair Value Inputs, Assets, Quantitative Information | The observable and unobservable inputs used to determine the fair value of the 2015 Loan Notes and 2014 Loan Notes as at December 31, 2015 and 2014 are presented in the tables below: At December 31, 2015 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 190.6 Internal Valuation Model Gross premiums written (O) $ — $ 38.9 Reserve for losses (U) $ — $ 4.2 Contract period (O) N/A 365 days Initial value of issuance (O) $ 220.0 $ 220.0 At December 31, 2014 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 138.6 Internal Valuation Model Gross premiums written (O) $ — $ 40.0 Reserve for losses (U) $ — $ 4.6 Contract period (O) N/A 365 days Initial value of issuance (O) $ 120.0 $ 120.0 The observable and unobservable inputs represent the potential variation around the inputs used in the valuation model. The 2016 Loan Notes were not on risk as at December 31, 2015 and as no gross premiums were written at that date the minimum value of gross premiums written value was $ Nil . The high premium value represents the actual premiums assumed by Silverton for the 2015 Loan Notes. Reserves for losses for the 2016 Loan Notes were $ Nil as no contracts were written as at December 31, 2015, the high value is the estimate of losses assumed by the 2015 Loan Notes. The contract period is defined in the Silverton loan agreements and the initial value represents the funds received from third parties. |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Reinsurance Disclosures [Abstract] | |
Summary of Assumed and Ceded Reinsurance on Premiums Written, Premiums Earned and Insurance Losses and Loss Adjustment Expenses | The effect of assumed and ceded reinsurance on premiums written, premiums earned and insurance losses and loss adjustment expenses is as follows: Twelve Months Ended December 31, 2015 2014 2013 ($ in millions) Premiums written : Direct $ 1,748.4 $ 1,729.9 $ 1,512.8 Assumed 1,248.9 1,172.8 1,133.9 Ceded (351.1 ) (387.5 ) (347.0 ) Net premiums written $ 2,646.2 $ 2,515.2 $ 2,299.7 Premiums earned: Direct $ 1,703.3 $ 1,599.0 $ 1,366.8 Assumed 1,153.5 1,137.6 1,126.6 Ceded (383.5 ) (331.3 ) (321.6 ) Net premiums earned $ 2,473.3 $ 2,405.3 $ 2,171.8 Insurance losses and loss adjustment expenses: Direct $ 980.6 $ 908.2 $ 829.4 Assumed 493.0 496.9 459.4 Ceded (107.4 ) (97.6 ) (65.1 ) Net insurance losses and loss adjustment expenses $ 1,366.2 $ 1,307.5 $ 1,223.7 |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following table summarizes information on the location and amounts of derivative fair values on the consolidated balance sheet as at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Interest Rate Swaps Derivatives at Fair Value $ 756.3 $ 0.4 (1) $ 951.3 $ 0.1 (1) Foreign Exchange Contracts Derivatives at Fair Value $ 217.7 $ 8.8 $ 165.8 $ 7.9 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 162.2 $ (2.8 ) $ 237.6 $ (10.5 ) (1) Net of $10.1 million of cash collateral provided to counterparties, Goldman Sachs International ( $256.3 million notional) and Crédit Agricole CIB ( $500.0 million notional) under respective International Swap Dealers Association agreements, as security for the Company’s net liability position ( December 31, 2014 — $22.3 million ). As at December 31, 2015 At December 31, 2014 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 113.6 $ (1.2 ) $ 135.8 $ (3.8 ) (1) (1) Net of $ Nil cash collateral ( December 31, 2014 — $ Nil ). |
Gain/(Loss) Recognized in Income on Derivative | The following tables provide the unrealized and realized gains/(losses) recorded in the statement of operations for the twelve months ended December 31, 2015 and 2014 : Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income Twelve Months Ended Derivatives Not Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income December 31, 2015 December 31, 2014 ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives $ 11.6 $ (7.7 ) Interest Rate Swaps Change in Fair Value of Derivatives $ (4.8 ) $ (7.2 ) Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income Twelve Months Ended Derivatives Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income December 31, 2015 December 31, 2014 ($ in millions) Foreign Exchange Contracts General, administrative and corporate expenses / Change in Fair Value of Derivatives $ (4.9 ) $ (0.3 ) Foreign Exchange Contracts Net change from current period hedged transactions $ 2.6 $ (3.8 ) |
Deferred Policy Acquisition C44
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reconciliation of beginning and ending deferred policy acquisition costs | The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the twelve months ended December 31, 2015 and 2014 : Twelve Months Ended Twelve Months Ended December 31, 2014 ($ in millions) Balance at the beginning of the period $ 299.0 $ 262.2 Acquisition costs deferred 545.7 488.0 Amortization of deferred policy acquisition costs (483.6 ) (451.2 ) Balance at the end of the period $ 361.1 $ 299.0 |
Reserves for Losses and Adjus45
Reserves for Losses and Adjustment Expenses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Insurance [Abstract] | |
Reconciliation of Beginning and Ending Consolidated Loss and Loss Adjustment Expenses (LAE) Reserves | The following table represents a reconciliation of beginning and ending consolidated loss and LAE reserves for the twelve months ended December 31, 2015 , 2014 and 2013 : As at December 31, 2015 2014 2013 ($ in millions) Provision for losses and LAE at the start of the year $ 4,750.8 $ 4,678.9 $ 4,779.7 Less reinsurance recoverable (350.0 ) (332.7 ) (499.0 ) Net loss and LAE at the start of the year 4,400.8 4,346.2 4,280.7 Net loss and LAE expenses (disposed) — (24.2 ) (34.6 ) Provision for losses and LAE for claims incurred: Current year 1,522.7 1,411.6 1,331.4 Prior years (156.5 ) (104.1 ) (107.7 ) Total incurred 1,366.2 1,307.5 1,223.7 Losses and LAE payments for claims incurred: Current year (141.9 ) (112.1 ) (172.8 ) Prior years (966.6 ) (995.6 ) (912.3 ) Total paid (1,108.5 ) (1,107.7 ) (1,085.1 ) Foreign exchange (gains)/losses (75.1 ) (121.0 ) (38.5 ) Net losses and LAE reserves at the end of the year 4,583.4 4,400.8 4,346.2 Plus reinsurance recoverable on unpaid losses at the end of the year 354.8 350.0 332.7 Provision for losses and LAE at the end of the year $ 4,938.2 $ 4,750.8 $ 4,678.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Summary of Total Income Tax | Total income tax expense for the twelve months ended December 31, 2015 , 2014 and 2013 is allocated as follows: Twelve Months Ended December 31, 2015 2014 2013 ($ in millions) Income tax expense on continuing operations $ 14.4 $ 12.1 $ 13.4 Income tax (benefit) on other comprehensive income (15.3 ) (5.1 ) (13.7 ) Income tax (benefit) charged directly to shareholders’ equity (1.9 ) (1.2 ) (1.5 ) Total income tax expense/(benefit) $ (2.8 ) $ 5.8 $ (1.8 ) |
Schedule of Income Tax by Taxing Authority | Income/(loss) from operations before income tax on continuing operations and income tax expense/(benefit) attributable to that income/(loss) consists of: Twelve Months Ended December 31, 2015 (Loss)/income before tax Current income tax expense Deferred income tax (benefit) Total income tax expense ($ in millions) Bermuda $ 283.9 $ — $ — $ — U.S. (32.7 ) (0.2 ) — (0.2 ) U.K. 86.3 23.5 (8.9 ) 14.6 Total $ 337.5 $ 23.3 $ (8.9 ) $ 14.4 Twelve Months Ended December 31, 2014 (Loss)/income before tax Current income tax expense Deferred income tax expense Total income tax expense ($ in millions) Bermuda $ 376.2 $ — $ — $ — U.S. (44.1 ) (1.5 ) — (1.5 ) U.K. 35.8 24.9 (11.3 ) 13.6 Total $ 367.9 $ 23.4 $ (11.3 ) $ 12.1 Twelve Months Ended December 31, 2013 (Loss)/income Current Deferred Total ($ in millions) Bermuda $ 353.9 $ — $ — $ — U.S. (45.7 ) — — — U.K. 34.5 9.7 3.7 13.4 Total $ 342.7 $ 9.7 $ 3.7 $ 13.4 |
Income Tax Reconciliation | The tax rate in Bermuda, the Company’s country of domicile, is zero. Application of the statutory tax rate for operations in other jurisdictions produces a differential to the expected tax (benefit)/expense as shown in the table below. In accordance with Rule 4-08(h) of Regulation S-X, the reconciliation between the income tax expense and the expected tax expense at the statutory rate for the Company is provided below: Twelve Months Ended December 31, 2015 2014 2013 Income Tax Reconciliation ($ in millions) Expected tax (benefit)/expense $ — $ — $ — Overseas statutory tax rates differential 6.4 (7.3 ) (7.5 ) Prior year adjustments (1) (4.5 ) (0.6 ) (4.2 ) Valuation allowance on U.S. deferred tax assets 11.8 12.7 15.1 Unrecognized tax benefits — 5.3 8.5 Valuation allowance on foreign tax credits 0.6 — 2.6 Nondeductible expenses 1.3 1.8 1.6 Non-taxable items (1.3 ) — (0.2 ) Impact of changes in statutory tax rates 0.1 0.2 (2.5 ) Total income tax expense $ 14.4 $ 12.1 $ 13.4 ________________ (1) The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of the Company’s Annual Report on Form 10-K. The final tax liabilities may differ from the estimated tax expense included in the Annual Report on Form 10-K and may result in prior year adjustments being reported. |
Schedule of Unrecognized Tax Benefits | nrecognized tax benefits would reduce the effective tax rate if recognized. It is possible that the entire balance of unrecognized tax benefits, totaling $29.2 million , could be eliminated following completion of tax examinations into these matters. During the twelve months ended December 31, 2015 , the Company did not recognize or accrue any costs in respect of interest or penalties relating to underpayments of income taxes ( December 31, 2014 — $ Nil ). Twelve Months Ended December 31, 2015 2014 ($ in millions) Unrecognized tax benefits balance at January 1 $ 29.2 $ 23.9 Gross increases/(decreases) for tax positions of prior years — 5.3 Gross increases/(decreases) for tax positions of current year — — Unrecognized tax benefits balance at December 31 $ 29.2 $ 29.2 |
Deferred Taxation (Tables)
Deferred Taxation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deferred Income Taxes and Other Assets [Abstract] | |
Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities | The tax effects of temporary differences that give rise to deferred tax assets and deferred tax liabilities are presented in the following table: As at December 31, 2015 2014 ($ in millions) Deferred tax assets: Share based payments $ 4.0 $ 2.8 Operating loss carryforwards (1) 108.3 101.1 Loss reserves 0.5 1.8 Accrued expenses 7.9 11.2 Foreign tax credit carryforwards 16.3 13.0 Unearned premiums 6.0 4.9 Deferred policy acquisition costs 3.2 — Office properties and equipment 7.1 8.7 Other temporary differences 9.8 6.7 Total gross deferred tax assets 163.1 150.2 Less valuation allowance (1) (124.4 ) (113.2 ) Net deferred tax assets $ 38.7 $ 37.0 Deferred tax liabilities: Equalization provision reserves $ (30.9 ) $ (32.1 ) Unrealized (gains) on investments (0.2 ) (2.2 ) Intangible assets (other) (2.5 ) (1.5 ) Deferred policy acquisition costs — (2.0 ) Other temporary differences (1.4 ) (2.3 ) Total gross deferred tax (liabilities) (35.0 ) (40.1 ) Net deferred tax asset/(liability) $ 3.7 $ (3.1 ) |
Capital Structure (Tables)
Capital Structure (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Summary of Authorized and Issued Share Capital | The following table provides a summary of the Company’s authorized and issued share capital at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 Number $ in Thousands Number $ in Thousands Authorized share capital: Ordinary Shares 0.15144558¢ per share 969,629,030 1,469 969,629,030 1,469 Non-Voting Shares 0.15144558¢ per share 6,787,880 10 6,787,880 10 Preference Shares 0.15144558¢ per share 100,000,000 152 100,000,000 152 Total authorized share capital 1,631 1,631 Issued share capital: Issued ordinary shares of 0.15144558¢ per share 60,918,373 92 62,017,368 94 Issued 7.401% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 5,327,500 8 5,327,500 8 Issued 7.250% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 6,400,000 10 6,400,000 10 Issued 5.95% Preference Shares of 0.15144558¢ each with a liquidation preference of $25 per share 11,000,000 17 11,000,000 17 Total issued share capital 127 129 |
Summary of Ordinary Shares | The following table summarizes transactions in the Company’s ordinary shares during the years ended December 31, 2015 and 2014 : Number of Ordinary Shares 2015 2014 Ordinary shares in issue at the beginning of the year 62,017,368 65,546,976 Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan 649,394 756,676 Ordinary shares issued to non-employee directors 41,944 3,573 Ordinary shares repurchased (1,790,333 ) (4,289,857 ) Ordinary shares in issue at the end of the year 60,918,373 62,017,368 |
Statutory Requirements and Di49
Statutory Requirements and Dividends Restrictions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Text Block [Abstract] | |
Summary of Statutory Requirements and Dividends Restrictions | Actual and required statutory capital and surplus for the principal operating subsidiaries of the Company, excluding its Lloyd’s syndicate, as at December 31, 2015 and December 31, 2014 were: As at December 31, 2015 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 61.1 $ 1,162.6 $ 202.2 Statutory capital and surplus $ 409.9 $ 2,028.3 $ 934.9 As at December 31, 2014 U.S. Bermuda U.K. ($ in millions) Required statutory capital and surplus $ 56.9 $ 1,097.6 $ 202.2 Statutory capital and surplus $ 394.1 $ 2,052.3 $ 989.8 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Information About Employee Options Outstanding to Purchase Ordinary Shares | he following table summarizes information about employee options outstanding to purchase ordinary shares at December 31, 2015 . As at December 31, 2015 Options Granted Options Forfeited Options Exercised Outstanding and Exercisable Exercise Price Weighted Average Fair Value at Grant Date Remaining Contractual Time Option Holder 2003 Option grants 3,884,030 712,906 3,171,124 — $16.20 $5.31 expired 2004 Option grants 500,113 276,082 224,031 — $24.44 $5.74 expired 2006 Option grants February 16 1,072,490 450,567 597,148 24,775 $23.65 $6.99 2 months 2007 Option grants May 4 (1) 607,635 157,980 449,655 — $27.28 $6.14 expired ________________ (1) In the case of Mr. O’Kane, the expiration date for the 2007 options were extended for one year to May 4, 2015. |
Per share Weighted Average Fair Value and Related Underlying Assumptions Using Modified Black-Scholes Option Pricing Model by Date of Grant | he following table shows the per share weighted average fair value and the related underlying assumptions using a modified Black-Scholes option pricing model by date of grant: Grant Date October 22, 2007 May 4, 2007 August 4, 2006 February 16, 2006 December 23, 2004 August 20, 2003(1) Per share weighted average fair value $ 5.76 $ 6.14 $ 4.41 $ 6.99 $ 5.74 $ 5.31 Risk free interest rate 4.09 % 4.55 % 5.06 % 4.66 % 3.57 % 4.7 % Dividend yield 2.1 % 2.2 % 2.6 % 2.7 % 0.5 % 0.6 % Expected life 5 years 5 years 5 years 5 years 5 years 7 years Share price volatility 20.28 % 23.76 % 19.33 % 35.12 % 19.68 % — % Foreign currency volatility — — — — — 9.4 % ________________ (1) The 2003 options had a price volatility of zero. The minimum value method was utilized because the Company was unlisted on the date that the options were issued. Foreign currency volatility of 9.4% was applied as the exercise price was initially in British Pounds and the share price of the Company is in U.S. Dollars. |
Summary of Restricted Share Units | he following table summarizes information about RSUs as at December 31, 2015 : As at December 31, 2015 Restricted Share Units RSU Holder Amount Granted Amount Vested Amount Forfeited Amount Outstanding 2004 - 2012 Grants 1,316,810 1,199,592 117,218 — 2013 Grants 307,441 192,173 34,880 80,388 2014 Grants 259,640 81,015 31,842 146,783 2015 Grants 287,852 — 10,789 277,063 Total 2,171,743 1,472,780 194,729 504,234 |
Summary of Performance Shares by Year of Grants | he following table summarizes information about performance shares as at December 31, 2015 : As at December 31, 2015 Performance Share Awards Amount Granted Amount Vested Amount Forfeited Amount Outstanding 2004 - 2012 Grants (1) 4,538,769 2,461,809 2,076,960 — 2013 Grants 250,066 203,393 46,673 — 2014 Grants (2) 315,389 215,516 — 99,873 2015 Grants (2) 277,585 77,825 33,209 166,551 Total 5,381,809 2,958,543 2,156,842 266,424 ______________________ (1) The amounts vested and forfeited in respect of the 2004 - 2012 performance share awards have been updated to reflect employees leaving after the financial reporting date but before the final vesting date. (2) These balances could increase depending on future performance. |
Summary of Performance Shares Which are Vested, BVPS Achieved and Vested | 2014 Performance Shares Year Split Increase in BVPS Banked 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA Total 100.0 % 74.2 % he 2014 performance test applicable to the 2013 performance share awards is described below under the 2014 performance share awards. 2013 Performance Shares Year Split Increase in BVPS Banked 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % Total 100.0 % 84.7 % he 2013 and 2014 performance tests applicable to the 2012 performance share awards are described below under the 2013 performance share awards and the 2014 performance share awards, respectively. 2012 Performance Shares Year Split Increase in BVPS Banked 2012 33.3 % 8.1 % 21.9 % 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % Total 100.0 % 75.4 % 2015 Performance Shares Year Split Increase in BVPS Banked 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA 2017 33.3 % NA NA Total 100.0 % 31.2 % |
Summary of Performance Share Activity Under Aspen's 2003 Share Incentive Plan | summary of performance share activity under Aspen’s 2003 and 2013 Share Incentive Plans for the twelve months ended December 31, 2015 is presented below: Twelve Months Ended December 31, 2015 Number of Shares Weighted Average Grant Date Fair Value Outstanding performance share awards, beginning of period 268,418 $25.35 Granted 277,585 $38.92 Earned (208,830 ) $38.11 Forfeited (70,749 ) $30.26 Outstanding performance share awards, end of period 266,424 $24.17 |
Summary of Phantom Shares Which Committee Approved | 2013 Phantom Shares Year Split Increase in BVPS Banked 2013 33.3 % 6.2 % 10.5 % 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % Total 100.0 % 84.7 % 2014 Phantom Shares Year Split Increase in BVPS Banked 2014 33.3 % 13.3 % 43.0 % 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA Total 100.0 % 74.2 % 2015 Phantom Shares Year Split Increase in BVPS Banked 2015 33.3 % 10.7 % 31.2 % 2016 33.3 % NA NA 2017 33.3 % NA NA Total 100.0 % 31.2 % |
Amounts for Employee Options Granted were Estimated on Date of Grant Using Modified Black-Scholes Option Pricing Model | he fair value of the employee options granted under the ESPP was estimated on the date of grant using a modified Black-Scholes option pricing model under the following assumptions: Grant Date Per share weighted average fair value Risk free interest rate Dividend yield Expected life Share price volatility ($) (%) (%) (in years) (%) November 4, 2008 $3.18 0.48 % 2.70 % 3.0 68.0 % December 4, 2008 2.87 (0.41 ) 3.16 2.0 102.0 November 23, 2009 3.76 0.01 2.28 3.0 22.0 December 21, 2009 3.82 0.04 2.34 2.0 18.0 December 22, 2010 4.24 0.13 2.07 3.0 14.0 December 22, 2010 4.46 0.13 2.07 2.0 14.0 December 13, 2011 4.20 0.05 2.80 3.0 26.2 December 13, 2011 3.85 0.05 2.75 2.0 26.2 March 20, 2013 7.79 0.38 1.88 3.0 2.8 March 20, 2013 5.75 0.25 1.88 2.0 3.2 September 26, 2014 6.61 1.06 1.87 3.0 6.2 September 26, 2014 6.43 0.58 1.87 2.0 4.0 March 25, 2015 8.17 0.94 1.78 3.0 16.0 March 25, 2015 7.08 0.60 1.78 2.0 16.0 |
Summary of Information About Non-employee Director Options Outstanding to Purchase Ordinary Shares | ptions. The following table summarizes information about non-employee director options outstanding to purchase ordinary shares at December 31, 2015 . Option Holder Options Outstanding Options Exercisable Exercise Price Fair Value at Grant Date Remaining Contractual Time Non-employee directors - 2006 Option grants (May 25) 2,435 2,435 $21.96 $4.24 5 months Non-employee directors - 2007 Option grants (July 30) 2,012 2,012 $24.76 $4.97 1 year, 7 months |
Non-employee Director Options Granted | he fair value of the non-employee director options granted were estimated on the date of grant using a modified Black-Scholes option pricing model under the following assumptions: Grant Date July 30, 2007 May 25, 2006 Per share weighted average fair value $4.97 $4.24 Risk-free interest rate 4.64 % 4.85 % Dividend yield 2.4 % 2.7 % Expected life 5 years 5 years Share price volatility 19.55 % 20.05 % |
Restricted Share Units Issued to Non-Employee Directors | estricted Share Units. The following table summarizes information about restricted share units issued to non-employee directors as at December 31, 2015 . As at December 31, 2015 Restricted Share Units Amount Granted Amount Vested Amount Forfeited Amount Outstanding Non-Employee Directors — 2013 and prior 167,596 158,593 9,003 — Non-Employee Directors — 2014 27,180 27,180 — — Non-Employee Directors — 2015 27,620 23,011 — 4,609 Chairman — 2013 and prior 89,987 89,987 — — Chairman — 2014 13,590 13,590 — — Chairman — 2015 12,154 10,127 — 2,027 Total 338,127 322,488 9,003 6,636 |
Summary of Option Activity and Restricted Share Unit Activity | summary of option activity and restricted share unit activity discussed above is presented in the tables below: Twelve Months Ended December 31, 2015 Option activity Number of Options Weighted Average Exercise Price Outstanding options, beginning of period 224,141 $24.91 Exercised and issued (194,919 ) 25.04 Outstanding and exercisable options, end of period 29,222 $23.59 Twelve Months Ended December 31, 2014 Option activity Number of Options Weighted Average Exercise Price Outstanding options, beginning of period 302,460 $25.02 Exercised and issued (74,520 ) 25.26 Forfeited or expired (3,799 ) 27.28 Outstanding and exercisable options, end of period 224,141 $24.91 Twelve Months Ended December 31, 2015 Restricted share unit activity Number of Shares Weighted Average Grant Date Fair Value Outstanding restricted stock, beginning of period 525,918 $35.83 Granted 327,626 41.05 Vested (306,888 ) 35.85 Forfeited (35,786 ) 39.59 Outstanding restricted stock, end of period 510,870 $40.40 Twelve Months Ended December 31, 2014 Restricted share unit activity Number of Shares Weighted Average Grant Date Fair Value Outstanding restricted stock, beginning of period 544,751 $32.13 Granted 300,410 38.60 Vested (291,468 ) 32.12 Forfeited (27,775 ) 36.29 Outstanding restricted stock, end of period 525,918 $35.83 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Intangible Assets | The following table provides a summary of the Company’s intangible assets for the twelve months ended December 31, 2015 and 2014 : Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Trade Mark Insurance Licenses Total Trade Mark Insurance Licenses Other Total ($ in millions) ($ in millions) Intangible Assets Beginning of the period $ 1.6 $ 16.6 $ 18.2 $ 1.6 $ 16.6 $ 0.2 $ 18.4 Amortization — — — — — (0.2 ) (0.2 ) End of the period $ 1.6 $ 16.6 $ 18.2 $ 1.6 $ 16.6 $ — $ 18.2 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Company's Restricted Assets | The following table details the forms and value of Company’s restricted assets as at December 31, 2015 and 2014 : As at December 31, 2015 At December 31, 2014 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,421.0 $ 1,094.3 Third party 2,265.6 2,268.2 Letters of credit / guarantees (1) 708.5 788.9 Total restricted assets $ 4,395.1 $ 4,151.4 Total as percent of investable assets (2) 49.6 % 48.0 % _______________ (1) As of December 31, 2015 , the Company had pledged funds of $697.6 million and £7.1 million ( December 31, 2014 — $774.6 million and £9.2 million ) as collateral for the secured letters of credit. |
Amounts Outstanding under Operating Leases | Amounts outstanding under operating leases net of subleases as of December 31, 2015 and 2014 were: As at December 31, 2015 2016 2017 2018 2019 2020 Later Total ($ in millions) Operating Lease Obligations (1) $ 10.5 $ 14.4 $ 13.9 $ 12.4 $ 8.7 $ 88.9 $ 148.8 As at December 31, 2014 2015 2016 2017 2018 2019 Later Total ($ in millions) Operating Lease Obligations $ 13.4 $ 9.3 $ 8.5 $ 7.3 $ 6.4 $ 1.5 $ 46.4 |
Concentration of Credit Risk (T
Concentration of Credit Risk (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | |
Schedule Of Gross Written Premium From Major Brokers | The following table shows the largest brokers that the Company transacted business with in the three years ended December 31, 2015 and the proportion of gross written premiums from each of those brokers. Twelve Months Ended December 31, 2015 2014 2013 Broker (in percentages) Aon Corporation 18.7 % 17.8 % 16.8 % Marsh & McLennan Companies, Inc. 15.4 15.1 15.0 Willis Group Holdings, Ltd. 14.5 13.7 14.4 Others (1) 51.4 53.4 53.8 Total 100.0 % 100.0 % 100.0 % Gross written premiums ($ millions) $ 2,997.3 $ 2,902.7 $ 2,646.7 ________________ (1) No other individual broker accounted for more than 10% of total gross written premiums. |
Reclassifications from Accumu54
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Reclassification | The following table sets out the components of the Company’s AOCI that are reclassified into the audited condensed consolidated statement of operations for the twelve months ended December 31, 2015 and 2014 : Amount Reclassified from AOCI Details about the AOCI Components Twelve Months Ended December 31, 2015 Twelve Months Ended December 31, 2014 Affected Line Item in the Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gain on sale of securities $ 43.6 $ 13.9 Realized and unrealized investment gains Realized (losses) on sale of securities (5.7 ) (6.2 ) Realized and unrealized investment losses 37.9 7.7 Income from operations before income tax Income tax on net realized gains of securities (1.2 ) (0.2 ) Income tax expense $ 36.7 $ 7.5 Net income Realized derivatives: Net realized (losses) on settled derivatives (4.9 ) (0.3 ) General, administrative and corporate expenses / Change in fair value of derivatives $ (4.9 ) $ (0.3 ) Net income Total reclassifications from AOCI to the statement of operations, net of income tax $ 31.8 $ 7.2 Net income |
Credit Facility and Long-term55
Credit Facility and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Contractual Obligations Under Long-term Debts | The following table summarizes our contractual obligations under the long-term debts as of December 31, 2015 . Payments Due By Period Contractual Basis Less than 1-3 years 3-5 years More than 5 years Total ($ in millions) Long-term Debt Obligations $ — $ — $ 250.0 $ 300.0 $ 550.0 |
Unaudited Quarterly Financial56
Unaudited Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The following is a summary of the quarterly financial data for the twelve months ended December 31, 2015 , 2014 and 2013 . 2015 Quarter Ended March 31 Quarter Ended June 30 Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 593.6 $ 609.4 $ 640.6 $ 629.7 $ 2,473.3 Net investment income 47.4 46.7 45.0 46.4 185.5 Realized and unrealized investment gains 57.4 13.5 10.7 12.9 94.5 Other income 3.9 (1.2 ) (2.3 ) (0.3 ) 0.1 Total revenues 702.3 668.4 694.0 688.7 2,753.4 Expenses Losses and loss adjustment expenses 306.1 360.5 365.6 334.0 1,366.2 Amortization of deferred policy acquisition costs 119.3 114.1 132.0 118.2 483.6 General, administrative and corporate expenses 102.2 95.4 100.5 125.9 424.0 Interest on long-term debt 7.4 7.3 7.4 7.4 29.5 Change in fair value of derivatives 7.8 (2.0 ) (10.1 ) (2.5 ) (6.8 ) Change in fair value of loan notes issued by variable interest entities 2.9 3.3 8.3 5.3 19.8 Realized and unrealized investment losses/(gains) 14.5 28.8 51.9 (17.7 ) 77.5 Net realized and unrealized foreign exchange losses/(gains) 6.4 11.6 8.4 (5.0 ) 21.4 Other expenses 2.6 (1.8 ) — (0.1 ) 0.7 Total expenses 569.2 617.2 664.0 565.5 2,415.9 Income from operations before income tax 133.1 51.2 30.0 123.2 337.5 Income tax (expense) (5.1 ) (2.2 ) (1.8 ) (5.3 ) (14.4 ) Net income $ 128.0 $ 49.0 $ 28.2 $ 117.9 $ 323.1 Per Share Data Weighted average number of ordinary share and share equivalents Basic 62,159,303 61,408,633 60,779,295 60,784,832 61,287,884 Diluted 63,532,662 62,896,907 62,155,125 62,176,505 62,687,503 Basic earnings per ordinary share adjusted for preference share dividends $ 1.91 $ 0.64 $ 0.30 $ 1.78 $ 4.64 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.87 $ 0.62 $ 0.30 $ 1.75 $ 4.54 2014 Quarter Ended Quarter Ended Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 566.5 $ 616.2 $ 610.4 $ 612.2 $ 2,405.3 Net investment income 49.5 46.1 48.0 46.7 190.3 Realized and unrealized investment gains/(losses) (1) 17.9 34.6 1.1 (7.3 ) 46.3 Other income 0.6 3.2 1.0 (0.3 ) 4.5 Total revenues 634.5 700.1 660.5 651.3 2,646.4 Expenses Losses and loss adjustment expenses 288.1 337.1 342.7 339.6 1,307.5 Amortization of deferred policy acquisition costs 112.0 108.9 115.5 114.8 451.2 General, administrative and corporate expenses 95.6 108.8 119.8 121.5 445.7 Interest on long-term debt 7.4 7.3 7.4 7.4 29.5 Change in fair value of derivatives (1.1 ) 4.6 5.1 6.6 15.2 Change in fair value of loan notes issued by variable interest entities 3.4 2.6 8.5 4.1 18.6 Realized and unrealized investment losses/(gains) (1) 4.3 3.3 21.2 (14.1 ) 14.7 Net realized and unrealized foreign exchange (gains)/losses (1) (0.1 ) (10.7 ) 1.3 3.9 (5.6 ) Other expenses 0.7 1.2 0.3 (0.5 ) 1.7 Total expenses 510.3 563.1 621.8 583.3 2,278.5 Income from operations before income tax 124.2 137.0 38.7 68.0 367.9 Income tax (expense) (3.8 ) (6.2 ) (1.3 ) (0.8 ) (12.1 ) Net income $ 120.4 $ 130.8 $ 37.4 $ 67.2 $ 355.8 Per Share Data Weighted average number of ordinary share and share equivalents Basic 65,289,351 65,447,128 65,116,463 62,206,260 64,536,491 Diluted 66,565,890 66,700,368 66,513,009 63,605,298 65,872,949 Basic earnings per ordinary share adjusted for preference share dividends $ 1.70 $ 1.85 $ 0.43 $ 0.92 $ 4.92 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.66 $ 1.82 $ 0.42 $ 0.90 $ 4.82 ____________________ (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and unrealized investment gains/(losses). 2013 Quarter Ended Quarter Ended Quarter Ended September 30 Quarter Ended December 31 Year Ended December 31 Revenues ($ in millions) Net earned premium $ 510.9 $ 544.0 $ 544.3 $ 572.6 $ 2,171.8 Net investment income 48.3 45.9 45.0 47.2 186.4 Realized and unrealized investment gains 16.3 14.4 23.6 2.6 56.9 Other income 1.1 0.9 1.6 4.6 8.2 Total revenues 576.6 605.2 614.5 627.0 2,423.3 Expenses Losses and loss adjustment expenses 268.7 333.4 290.2 331.4 1,223.7 Amortization of deferred policy acquisition costs 104.6 107.2 110.5 99.7 422.0 General, administrative and corporate expenses 86.6 87.7 98.9 94.9 368.1 Interest on long-term debt 7.7 7.8 7.7 9.5 32.7 Change in fair value of derivatives 4.2 2.9 (6.6 ) (1.8 ) (1.3 ) Realized and unrealized investment losses/(gains) 1.1 21.0 5.9 (7.5 ) 20.5 Net realized and unrealized foreign exchange losses/(gains) 5.4 4.1 (2.4 ) 6.1 13.2 Other expenses 0.6 — — 1.1 1.7 Total expenses 478.9 564.1 504.2 533.4 2,080.6 Income from operations before income tax 97.7 41.1 110.3 93.6 342.7 Income tax (expense) (5.9 ) (1.0 ) (2.9 ) (3.6 ) (13.4 ) Net income $ 91.8 $ 40.1 $ 107.4 $ 90.0 $ 329.3 Per Share Data Weighted average number of ordinary share and share equivalents Basic 68,854,286 66,191,426 66,716,202 65,593,669 66,872,048 Diluted 72,452,705 69,291,324 68,561,515 67,051,993 69,417,903 Basic earnings per ordinary share adjusted for preference share dividends $ 1.21 $ 0.38 $ 1.47 $ 1.23 $ 4.29 Diluted earnings per ordinary share adjusted for preference share dividends $ 1.15 $ 0.36 $ 1.43 $ 1.21 $ 4.14 |
Basis of Preparation and Sign57
Basis of Preparation and Significant Accounting Policies - Additional Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015period | |
Property, Plant and Equipment [Line Items] | |
Non-Payment Of Dividends, Number Of Periods | 6 |
Computer Equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 3 years |
Computer Equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 5 years |
Furniture and Fixtures | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 4 years |
Leasehold Improvements | |
Property, Plant and Equipment [Line Items] | |
Property, Plant and Equipment, Useful Life | 15 years |
Fixed maturities | |
Property, Plant and Equipment [Line Items] | |
Percentage of Value Decline in Securities to be considered Other than Temporary Impairment | 20.00% |
Equity securities | |
Property, Plant and Equipment [Line Items] | |
Percentage of Value Decline in Securities to be considered Other than Temporary Impairment | 20.00% |
Earnings Per Ordinary Share - C
Earnings Per Ordinary Share - Computation of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Net income | $ 117.9 | $ 28.2 | $ 49 | $ 128 | $ 67.2 | $ 37.4 | $ 130.8 | $ 120.4 | $ 90 | $ 107.4 | $ 40.1 | $ 91.8 | $ 323.1 | $ 355.8 | $ 329.3 | |
Change in Redemption Value | [1] | 0 | 0 | (7.1) | ||||||||||||
Net change attributable to non-controlling interest for the year | (0.8) | (0.8) | 0.5 | |||||||||||||
Basic and diluted net income available to ordinary shareholders | $ 284.5 | $ 317.2 | $ 287.2 | |||||||||||||
Ordinary shares: | ||||||||||||||||
Basic weighted average ordinary shares | 60,784,832 | 60,779,295 | 61,408,633 | 62,159,303 | 62,206,260 | 65,116,463 | 65,447,128 | 65,289,351 | 65,593,669 | 66,716,202 | 66,191,426 | 68,854,286 | 61,287,884 | 64,536,491 | 66,872,048 | |
Weighted average effect of dilutive securities (2) | [2] | 1,399,619 | 1,336,458 | 2,545,855 | ||||||||||||
Total diluted weighted average ordinary shares | 62,176,505 | 62,155,125 | 62,896,907 | 63,532,662 | 63,605,298 | 66,513,009 | 66,700,368 | 66,565,890 | 67,051,993 | 68,561,515 | 69,291,324 | 72,452,705 | 62,687,503 | 65,872,949 | 69,417,903 | |
Earnings per ordinary share: | ||||||||||||||||
Basic, dollars per share | $ 1.78 | $ 0.30 | $ 0.64 | $ 1.91 | $ 0.92 | $ 0.43 | $ 1.85 | $ 1.70 | $ 1.23 | $ 1.47 | $ 0.38 | $ 1.21 | $ 4.64 | $ 4.92 | $ 4.29 | |
Diluted, dollars per share | $ 1.75 | $ 0.30 | $ 0.62 | $ 1.87 | $ 0.90 | $ 0.42 | $ 1.82 | $ 1.66 | $ 1.21 | $ 1.43 | $ 0.36 | $ 1.15 | $ 4.54 | $ 4.82 | $ 4.14 | |
Retained earnings | ||||||||||||||||
Net income | $ 355.8 | $ 329.3 | ||||||||||||||
Net change attributable to non-controlling interest for the year | $ (0.8) | (0.8) | 0.5 | |||||||||||||
Retained earnings | Preferred Stock | ||||||||||||||||
Preference share dividends | (37.8) | (37.8) | (35.5) | |||||||||||||
Change in Redemption Value | [3] | $ 0 | $ 0 | $ (7.1) | ||||||||||||
[1] | The $7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. | |||||||||||||||
[2] | (2) Dilutive securities comprise: employee options, restricted share units and performance shares associated with the Company’s long term incentive plan, employee share purchase plans and director restricted stock units and options as described in Note 18. | |||||||||||||||
[3] | The $7.1 million reclassification from additional paid-in capital to retained earnings is the difference between the capital raised upon issuance of the 5.625% Perpetual Preferred Income Equity Replacement Securities (“PIERS”), net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. |
Earnings Per Ordinary Share - S
Earnings Per Ordinary Share - Summary of Declared Dividends (Details) - $ / shares | Feb. 04, 2016 | Mar. 31, 2009 | Nov. 15, 2006 | Dec. 31, 2015 |
7.401% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Preference shares, rate | 7.401% | 7.401% | 7.401% | |
7.250% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Preference shares, rate | 7.25% | |||
5.950% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Preference shares, rate | 5.95% | |||
Subsequent Event | Ordinary shares | ||||
Dividends Payable [Line Items] | ||||
Dividend | $ 0.21 | |||
Payable on | Mar. 9, 2016 | |||
Record Date | Feb. 20, 2016 | |||
Subsequent Event | 7.401% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Dividend | $ 0.462563 | |||
Payable on | Apr. 1, 2016 | |||
Record Date | Mar. 15, 2016 | |||
Preference shares, rate | 7.401% | |||
Subsequent Event | 7.250% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Dividend | $ 0.4531 | |||
Payable on | Apr. 1, 2016 | |||
Record Date | Mar. 15, 2016 | |||
Preference shares, rate | 7.25% | |||
Subsequent Event | 5.950% Preference Shares | ||||
Dividends Payable [Line Items] | ||||
Dividend | $ 0.3719 | |||
Payable on | Apr. 1, 2016 | |||
Record Date | Mar. 15, 2016 | |||
Preference shares, rate | 5.95% |
Earnings Per Ordinary Share - A
Earnings Per Ordinary Share - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Apr. 25, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Line Items] | |||||
PIERS redemption | [1] | $ 0 | $ 0 | $ 7.1 | |
Preference Shares | |||||
Earnings Per Share [Line Items] | |||||
PIERS redeemed and cancelled | $ 230 | $ 230 | 230 | 230 | |
Reclassification from Additional Paid in Capital to Retained Earnings | |||||
Earnings Per Share [Line Items] | |||||
PIERS redemption | $ 7.1 | $ 7.1 | |||
[1] | The $7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. |
Segment Reporting - Summary of
Segment Reporting - Summary of Gross and Net Written and Earned Premiums, Underwriting Results, Ratios and Reserves for Each of Company's Business Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||||||
Underwriting Revenues | |||||||||||||||||||||||
Gross written premiums | $ 2,997.3 | $ 2,902.7 | $ 2,646.7 | ||||||||||||||||||||
Net written premiums | 2,646.2 | 2,515.2 | 2,299.7 | ||||||||||||||||||||
Gross earned premiums | 2,856.8 | 2,736.6 | 2,493.4 | ||||||||||||||||||||
Net earned premium | $ 629.7 | $ 640.6 | $ 609.4 | $ 593.6 | $ 612.2 | $ 610.4 | $ 616.2 | $ 566.5 | $ 572.6 | $ 544.3 | $ 544 | $ 510.9 | 2,473.3 | 2,405.3 | 2,171.8 | ||||||||
Underwriting Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | 334 | 365.6 | 360.5 | 306.1 | 339.6 | 342.7 | 337.1 | 288.1 | 331.4 | 290.2 | 333.4 | 268.7 | 1,366.2 | 1,307.5 | 1,223.7 | ||||||||
Amortization of deferred policy acquisition costs | 118.2 | 132 | 114.1 | 119.3 | 114.8 | 115.5 | 108.9 | 112 | 99.7 | 110.5 | 107.2 | 104.6 | 483.6 | 451.2 | 422 | ||||||||
General and administrative expenses | 360.1 | 351.9 | 316.9 | ||||||||||||||||||||
Underwriting income | 263.4 | 294.7 | 209.2 | ||||||||||||||||||||
Corporate expenses | (63.9) | (93.8) | (51.2) | ||||||||||||||||||||
Net investment income | 46.4 | 45 | 46.7 | 47.4 | 46.7 | 48 | 46.1 | 49.5 | 47.2 | 45 | 45.9 | 48.3 | 185.5 | 190.3 | 186.4 | ||||||||
Realized and unrealized investment gains | 12.9 | 10.7 | 13.5 | 57.4 | (7.3) | [1] | 1.1 | [1] | 34.6 | [1] | 17.9 | [1] | 2.6 | 23.6 | 14.4 | 16.3 | 94.5 | 46.3 | [1] | 56.9 | |||
Realized and unrealized investment losses | 17.7 | (51.9) | (28.8) | (14.5) | 14.1 | [1] | (21.2) | [1] | (3.3) | [1] | (4.3) | [1] | 7.5 | (5.9) | (21) | (1.1) | (77.5) | (14.7) | [1] | (20.5) | |||
Change in fair value of loan notes issued by variable interest entities | (5.3) | (8.3) | (3.3) | (2.9) | (4.1) | (8.5) | (2.6) | (3.4) | (19.8) | (18.6) | 0 | ||||||||||||
Change in fair value of derivatives | 2.5 | 10.1 | 2 | (7.8) | (6.6) | (5.1) | (4.6) | 1.1 | 1.8 | 6.6 | (2.9) | (4.2) | 6.8 | (15.2) | 1.3 | ||||||||
Interest expense on long term debt | (7.4) | (7.4) | (7.3) | (7.4) | (7.4) | (7.4) | (7.3) | (7.4) | (9.5) | (7.7) | (7.8) | (7.7) | (29.5) | (29.5) | (32.7) | ||||||||
Net realized and unrealized foreign exchange (losses) | 5 | (8.4) | (11.6) | (6.4) | (3.9) | [1] | (1.3) | [1] | 10.7 | [1] | 0.1 | [1] | (6.1) | 2.4 | (4.1) | (5.4) | (21.4) | 5.6 | [1] | (13.2) | |||
Other income | (0.3) | (2.3) | (1.2) | 3.9 | (0.3) | 1 | 3.2 | 0.6 | 4.6 | 1.6 | 0.9 | 1.1 | 0.1 | 4.5 | 8.2 | ||||||||
Other expenses | (0.7) | (1.7) | (1.7) | ||||||||||||||||||||
Income from operations before income tax | 123.2 | 30 | 51.2 | 133.1 | 68 | 38.7 | 137 | 124.2 | 93.6 | 110.3 | 41.1 | 97.7 | 337.5 | 367.9 | 342.7 | ||||||||
Income tax expense | (5.3) | (1.8) | (2.2) | (5.1) | (0.8) | (1.3) | (6.2) | (3.8) | (3.6) | (2.9) | (1) | (5.9) | (14.4) | (12.1) | (13.4) | ||||||||
Net income | 117.9 | $ 28.2 | $ 49 | $ 128 | 67.2 | $ 37.4 | $ 130.8 | $ 120.4 | 90 | $ 107.4 | $ 40.1 | $ 91.8 | 323.1 | 355.8 | 329.3 | ||||||||
Losses and loss adjustment expenses | 4,938.2 | 4,750.8 | 4,678.9 | 4,938.2 | 4,750.8 | 4,678.9 | $ 4,779.7 | ||||||||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 4,583.4 | 4,400.8 | 4,346.2 | $ 4,583.4 | $ 4,400.8 | $ 4,346.2 | $ 4,280.7 | ||||||||||||||||
Ratios | |||||||||||||||||||||||
Loss ratio | 55.20% | 54.40% | 56.30% | ||||||||||||||||||||
Policy acquisition expense ratio | 19.60% | 18.80% | 19.40% | ||||||||||||||||||||
General and administrative expense ratio | 17.10% | [2] | 18.50% | [3] | 16.90% | [4] | |||||||||||||||||
Expense ratio | 36.70% | 37.30% | 36.30% | ||||||||||||||||||||
Combined ratio | 91.90% | 91.70% | 92.60% | ||||||||||||||||||||
Reinsurance | |||||||||||||||||||||||
Underwriting Revenues | |||||||||||||||||||||||
Net written premiums | $ 1,153.5 | $ 1,124 | $ 1,082 | ||||||||||||||||||||
Net earned premium | 1,072.6 | 1,088.2 | 1,073 | ||||||||||||||||||||
Underwriting Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | 2,409.5 | 2,493.3 | 2,646.8 | $ 2,409.5 | $ 2,493.3 | $ 2,646.8 | |||||||||||||||||
Ratios | |||||||||||||||||||||||
Loss ratio | 45.80% | 45.70% | 44.90% | ||||||||||||||||||||
Policy acquisition expense ratio | 20.90% | 18.40% | 19.30% | ||||||||||||||||||||
General and administrative expense ratio | 13.70% | [2] | 13.50% | [3] | 12.20% | [4] | |||||||||||||||||
Expense ratio | 34.60% | 31.90% | 31.50% | ||||||||||||||||||||
Combined ratio | 80.40% | 77.60% | 76.40% | ||||||||||||||||||||
Insurance | |||||||||||||||||||||||
Underwriting Revenues | |||||||||||||||||||||||
Net written premiums | $ 1,492.7 | $ 1,391.2 | $ 1,217.7 | ||||||||||||||||||||
Net earned premium | 1,400.7 | 1,317.1 | 1,098.8 | ||||||||||||||||||||
Underwriting Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | $ 2,173.9 | $ 1,907.5 | $ 1,699.4 | $ 2,173.9 | $ 1,907.5 | $ 1,699.4 | |||||||||||||||||
Ratios | |||||||||||||||||||||||
Loss ratio | 62.40% | 61.50% | 67.50% | ||||||||||||||||||||
Policy acquisition expense ratio | 18.50% | 19.10% | 19.50% | ||||||||||||||||||||
General and administrative expense ratio | 15.20% | [2] | 15.60% | [3] | 16.90% | [4] | |||||||||||||||||
Expense ratio | 33.70% | 34.70% | 36.40% | ||||||||||||||||||||
Combined ratio | 96.10% | 96.20% | 103.90% | ||||||||||||||||||||
Operating Segments [Member] | Reinsurance | |||||||||||||||||||||||
Underwriting Revenues | |||||||||||||||||||||||
Gross written premiums | $ 1,248.9 | $ 1,172.8 | $ 1,133.9 | ||||||||||||||||||||
Net written premiums | 1,153.5 | 1,124 | 1,082 | ||||||||||||||||||||
Gross earned premiums | 1,153.5 | 1,137.6 | 1,126.6 | ||||||||||||||||||||
Net earned premium | 1,072.6 | 1,088.2 | 1,073 | ||||||||||||||||||||
Underwriting Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | 491.6 | 497.8 | 481.7 | ||||||||||||||||||||
Amortization of deferred policy acquisition costs | 224.7 | 200 | 207.2 | ||||||||||||||||||||
General and administrative expenses | 146.5 | 146.4 | 131 | ||||||||||||||||||||
Underwriting income | 209.8 | 244 | 253.1 | ||||||||||||||||||||
Operating Segments [Member] | Insurance | |||||||||||||||||||||||
Underwriting Revenues | |||||||||||||||||||||||
Gross written premiums | 1,748.4 | 1,729.9 | 1,512.8 | ||||||||||||||||||||
Net written premiums | 1,492.7 | 1,391.2 | 1,217.7 | ||||||||||||||||||||
Gross earned premiums | 1,703.3 | 1,599 | 1,366.8 | ||||||||||||||||||||
Net earned premium | 1,400.7 | 1,317.1 | 1,098.8 | ||||||||||||||||||||
Underwriting Expenses | |||||||||||||||||||||||
Losses and loss adjustment expenses | 874.6 | 809.7 | 742 | ||||||||||||||||||||
Amortization of deferred policy acquisition costs | 258.9 | 251.2 | 214.8 | ||||||||||||||||||||
General and administrative expenses | 213.6 | 205.5 | 185.9 | ||||||||||||||||||||
Underwriting income | $ 53.6 | $ 50.7 | $ (43.9) | ||||||||||||||||||||
[1] | (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and | ||||||||||||||||||||||
[2] | The general and administrative expense ratio in the total column includes corporate expenses. | ||||||||||||||||||||||
[3] | The general and administrative expense ratio in the total column includes corporate expenses. | ||||||||||||||||||||||
[4] | The general and administrative expense ratio in the total column includes corporate expenses. |
Segment Reporting - Summary o62
Segment Reporting - Summary of the Schedule of the Company's gross written premiums based on the location of the insured risk (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 2,997.3 | $ 2,902.7 | $ 2,646.7 | |
Australia/Asia | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 140 | 130.1 | 108.4 | |
Caribbean | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 20.3 | 19.7 | 14.4 | |
Europe | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 113.6 | 113.9 | 112.2 | |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | 223.6 | 209.3 | 166.4 | |
United States & Canada | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | [1] | 1,479.5 | 1,357.3 | 1,179.6 |
Worldwide excluding United States | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | [2] | 107.2 | 116.2 | 145.7 |
Worldwide including United States | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | [3] | 793.6 | 851.8 | 827.4 |
Others | ||||
Segment Reporting Information [Line Items] | ||||
Gross written premiums | $ 119.5 | $ 104.4 | $ 92.6 | |
[1] | “United States and Canada” comprises individual policies that insure risks specifically in the United States and/or Canada, but not elsewhere. | |||
[2] | “Worldwide excluding the United States” comprises individual policies that insure risks wherever they may be across the world but specifically excludes the United States. | |||
[3] | “Worldwide including the United States” comprises individual policies that insure risks wherever they may be across the world but specifically includes the United States. |
Segment Reporting - Additional
Segment Reporting - Additional Information (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2015segement | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | $ 197.3 | $ 200.9 | $ 195.9 | ||||||||||||
Investment expenses | (11.8) | (10.6) | (9.5) | ||||||||||||
Net investment income | $ 46.4 | $ 45 | $ 46.7 | $ 47.4 | $ 46.7 | $ 48 | $ 46.1 | $ 49.5 | $ 47.2 | $ 45 | $ 45.9 | $ 48.3 | 185.5 | 190.3 | 186.4 |
Fixed income securities — Available for sale | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 143.4 | 151.1 | 155.6 | ||||||||||||
Fixed income securities — Trading | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 27.8 | 26.7 | 20.3 | ||||||||||||
Short-term investments — Available for sale | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 1.1 | 1.4 | 2.1 | ||||||||||||
Fixed term deposits (included in cash and cash equivalents) | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 3 | 3.3 | 5.3 | ||||||||||||
Equity securities — Available for sale | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 0.1 | 4.1 | 5.6 | ||||||||||||
Equity securities — Trading | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | 20 | 13 | 7 | ||||||||||||
Catastrophe bonds — Trading | |||||||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||||||
Total | $ 1.9 | $ 1.3 | $ 0 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Millions | Dec. 16, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Other-than-temporary impairments | $ 0 | $ (2.4) | $ 0 | |
Catastrophe bonds | (0.3) | 0.4 | 0 | |
Net change in gross unrealized (losses) gains | (33.1) | 7.6 | 6.1 | |
Gross realized and unrealized gains in Cartesian | (0.6) | |||
Other realized losses | $ (9.3) | 0 | 0 | (9.3) |
Total net realized and unrealized investment gains recorded in the statement of operations | 17 | 31.6 | 36.4 | |
Change in available for sale net unrealized gains: | ||||
Fixed income securities | (82.2) | 47.7 | (209.6) | |
Available For Sale Securities Short Term Investments Change In Unrealized Gains | (0.1) | 0 | 0 | |
Equity securities | (27.3) | (10) | 11.2 | |
Total change in pre-tax available for sale unrealized gains | (109.6) | 37.7 | (198.4) | |
Change in taxes | 4.4 | (2.8) | 13.7 | |
Total change in net unrealized gains, net of taxes recorded in other comprehensive income | (105.2) | 34.9 | (184.7) | |
Cartesian | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross realized and unrealized gains in Cartesian | 0 | 0 | 3 | |
Chaspark | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross realized and unrealized gains in Cartesian | (0.6) | 0 | 0 | |
Available for sale - Fixed income maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Fixed income securities — gross realized gains | 11.7 | 10.3 | 18.2 | |
Fixed income securities — gross realized (losses) | (2.7) | (5.9) | (7.4) | |
Available for sale - Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Equity securities — gross realized gains | 31.9 | 12.9 | 18 | |
Equity securities — gross realized (losses) | (3) | (0.8) | (0.3) | |
Trading - Fixed income maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Fixed income securities — gross realized gains | 4.9 | 7.3 | 9.5 | |
Fixed income securities — gross realized (losses) | (6.1) | (2.5) | (2.9) | |
Trading - Equity securities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Equity securities — gross realized gains | 46 | 7.8 | 2.1 | |
Equity securities — gross realized (losses) | $ (31.7) | $ (3.1) | $ (0.6) |
Investments - Cost, Gross Unrea
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities, Short-Term Investments and Equities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | $ 6,030.4 | $ 5,803.7 |
Gross Unrealized Gains | 109.2 | 203.7 |
Gross Unrealized Losses | (25.6) | (9.2) |
Fair Market Value | 6,114 | 5,998.2 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 5,867.5 | 5,462.9 |
Gross Unrealized Gains | 109.2 | 176.3 |
Gross Unrealized Losses | (25.6) | (9.2) |
Fair Market Value | 5,951.1 | 5,630 |
Total short-term investments — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 162.9 | 258.2 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 162.9 | 258.3 |
Total equity securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 82.6 | |
Gross Unrealized Gains | 27.3 | |
Gross Unrealized Losses | 0 | |
Fair Market Value | 109.9 | |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,113.9 | 1,074.2 |
Gross Unrealized Gains | 13 | 21.5 |
Gross Unrealized Losses | (3.8) | (1.3) |
Fair Market Value | 1,123.1 | 1,094.4 |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 154.5 | 190 |
Gross Unrealized Gains | 4.3 | 7.5 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair Market Value | 158.7 | 197.4 |
Municipal Bonds | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 25 | 29.1 |
Gross Unrealized Gains | 1.6 | 2.4 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 26.6 | 31.5 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 2,626.2 | 2,244.7 |
Gross Unrealized Gains | 49.5 | 79.9 |
Gross Unrealized Losses | (15.1) | (5.2) |
Fair Market Value | 2,660.6 | 2,319.4 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 81.6 | 76.8 |
Gross Unrealized Gains | 0.6 | 1.2 |
Gross Unrealized Losses | (0.1) | 0 |
Fair Market Value | 82.1 | 78 |
Foreign government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 634.6 | 648.6 |
Gross Unrealized Gains | 10.5 | 17.3 |
Gross Unrealized Losses | (0.9) | (0.2) |
Fair Market Value | 644.2 | 665.7 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 75.4 | 141.3 |
Gross Unrealized Gains | 0.9 | 2.4 |
Gross Unrealized Losses | (0.3) | (0.2) |
Fair Market Value | 76 | 143.5 |
Non-agency commercial mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 25.5 | 41.5 |
Gross Unrealized Gains | 1.2 | 3.3 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 26.7 | 44.8 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,130.8 | 1,016.7 |
Gross Unrealized Gains | 27.6 | 40.8 |
Gross Unrealized Losses | (5.3) | (2.2) |
Fair Market Value | $ 1,153.1 | $ 1,055.3 |
Investments - Cost, Gross Unr67
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | $ 6,030.4 | $ 5,803.7 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 109.2 | 203.7 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 25.6 | 9.2 |
Available-for-sale Securities | 6,114 | 5,998.2 |
Cost or Amortized Cost | 794.2 | 760.9 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 788 | 771 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 5,867.5 | 5,462.9 |
Available-for-sale Debt Securities, Accumulated Gross Unrealized Gain, before Tax | 109.2 | 176.3 |
Available-for-sale Securities, Accumulated Gross Unrealized Loss, before Tax | 25.6 | 9.2 |
Available-for-sale Securities | 5,951.1 | 5,630 |
Cost or Amortized Cost | 794.2 | 760.9 |
Gross Unrealized Gains | 7.6 | 16.1 |
Gross Unrealized Losses | (13.8) | (6) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 788 | 771 |
Total short-term investments — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 9.5 | 0.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 9.5 | 0.2 |
Total equity securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 722.5 | 585.2 |
Gross Unrealized Gains | 57.3 | 55.5 |
Gross Unrealized Losses | (43.4) | (24.7) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 736.4 | 616 |
Total catastrophe bonds — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 55.2 | 34.4 |
Gross Unrealized Gains | 0.3 | 0.4 |
Gross Unrealized Losses | (0.1) | 0 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 55.4 | 34.8 |
Total | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,581.4 | 1,380.7 |
Gross Unrealized Gains | 65.2 | 72 |
Gross Unrealized Losses | (57.3) | (30.7) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 1,589.3 | 1,422 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 27.4 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (0.1) | |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 27.3 | |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 0.2 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 0.2 | |
Municipal Bonds | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 0.5 | 1.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 0.5 | 1.1 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 561.9 | 520.9 |
Gross Unrealized Gains | 5.9 | 11.7 |
Gross Unrealized Losses | (9.6) | (2.8) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 558.2 | 529.8 |
Foreign government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 181.5 | 137.3 |
Gross Unrealized Gains | 1.7 | 4.3 |
Gross Unrealized Losses | (3.7) | (1.5) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 179.5 | 140.1 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Available-for-sale Securities, Amortized Cost Basis | 75.4 | 141.3 |
Cost or Amortized Cost | 20.7 | 14.6 |
Gross Unrealized Gains | 0 | 0.1 |
Gross Unrealized Losses | (0.2) | 0 |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | 20.5 | 14.7 |
Bank loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 2.2 | 86.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (1.7) |
Fixed income securities, trading at fair value (amortized cost — $794.2 and $760.9) | $ 2 | $ 85.1 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule Of Equity Method Investments Joint Ventures [Line Items] | |||
Investment in Micro-insurance venture | $ 0.8 | $ 0 | $ 0 |
Equity Method Investment, Aggregate Cost [Roll Forward] | |||
Opening undistributed value of investment, beginning balance | 8.7 | 48 | |
Loss | (0.6) | ||
Proceeds from Sale of Equity Method Investments | (39.3) | ||
Closing value of investment, ending balance | 8.9 | 8.7 | 48 |
Guarantor Subsidiaries | |||
Schedule Of Equity Method Investments Joint Ventures [Line Items] | |||
Investment in Micro-insurance venture | 0.8 | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||
Opening undistributed value of investment, beginning balance | 0 | 0 | |
Loss | 0 | ||
Proceeds from Sale of Equity Method Investments | 0 | ||
Closing value of investment, ending balance | 0.8 | 0 | 0 |
Cartesian | |||
Schedule Of Equity Method Investments Joint Ventures [Line Items] | |||
Investment in Micro-insurance venture | 0 | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||
Opening undistributed value of investment, beginning balance | 0 | 39.3 | |
Loss | 0 | 0 | 3 |
Proceeds from Sale of Equity Method Investments | 39.3 | (39.3) | |
Closing value of investment, ending balance | 0 | 0 | 39.3 |
Chaspark | |||
Schedule Of Equity Method Investments Joint Ventures [Line Items] | |||
Investment in Micro-insurance venture | 0 | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | |||
Opening undistributed value of investment, beginning balance | 8.7 | 8.7 | |
Loss | (0.6) | 0 | 0 |
Proceeds from Sale of Equity Method Investments | 0 | ||
Closing value of investment, ending balance | $ 8.1 | $ 8.7 | $ 8.7 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 5,867.5 | $ 5,462.9 |
Cost or Amortized Cost | 6,030.4 | 5,803.7 |
Available for sale investments in fixed income maturities, Fair Market Value | 5,951.1 | 5,630 |
Non-agency commercial mortgage-backed | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Cost or Amortized Cost | 25.5 | 41.5 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 26.7 | $ 44.8 |
Available for sale investments Average Ratings by Maturity | AA+ | AA+ |
Agency mortgage-backed | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Cost or Amortized Cost | $ 1,130.8 | $ 1,016.7 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 1,153.1 | $ 1,055.3 |
Available for sale investments Average Ratings by Maturity | AA+ | AA+ |
Asset-backed | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Cost or Amortized Cost | $ 75.4 | $ 141.3 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 76 | $ 143.5 |
Available for sale investments Average Ratings by Maturity | AAA | AAA |
Total fixed income securities — Available for sale | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Due one year or less, Cost or Amortized Cost | $ 661.8 | $ 590.2 |
Due after one year through five years, Cost or Amortized Cost | 2,765.2 | 2,552 |
Due after five years through ten years, Cost or Amortized Cost | 1,122.5 | 1,023.5 |
Due after ten years, Cost or Amortized Cost | 86.3 | 97.7 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,635.8 | 4,263.4 |
Due one year or less, Fair Market Value | 664.4 | 594.7 |
Due after one year through five years, Fair Market Value | 2,806.6 | 2,620.8 |
Due after five years through ten years, Fair Market Value | 1,132 | 1,059.9 |
Due after ten years, Fair Market Value | 92.3 | 111 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,695.3 | $ 4,386.4 |
Due one year or less, Average Ratings by Maturity | AA | AA |
Due after one year through five years, Average Ratings by Maturity | AA- | AA- |
Due after five years through ten years, Average Ratings by Maturity | A+ | A+ |
Due after ten years, Average Ratings by Maturity | A+ | A+ |
Fixed maturities | ||
Schedule Of Available For Sale Securities And Held To Maturity Securities [Line Items] | ||
Cost or Amortized Cost | $ 5,867.5 | $ 5,462.9 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 5,951.1 | $ 5,630 |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss by Type of Security (Details) $ in Millions | Dec. 31, 2015USD ($)security | Dec. 31, 2014USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 2,453.9 | $ 794.7 |
0-12 months, Gross Unrealized Losses | (21.9) | (3) |
Over 12 months, Fair Market Value | 164.9 | 423.2 |
Over 12 months, Gross Unrealized Losses | (3.7) | (6.2) |
Total, Fair Market Value | 2,618.8 | 1,217.9 |
Total, Gross Unrealized Losses | $ (25.6) | $ (9.2) |
Total, Number of Securities | security | 805 | 431 |
Fixed income securities — Available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 2,397.2 | $ 790.1 |
0-12 months, Gross Unrealized Losses | (21.9) | (3) |
Over 12 months, Fair Market Value | 164.9 | 423.2 |
Over 12 months, Gross Unrealized Losses | (3.7) | (6.2) |
Total, Fair Market Value | 2,562.1 | 1,213.3 |
Total, Gross Unrealized Losses | $ (25.6) | $ (9.2) |
Total, Number of Securities | security | 793 | 428 |
Short-term investments — Available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 56.7 | $ 4.6 |
0-12 months, Gross Unrealized Losses | 0 | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 56.7 | 4.6 |
Total, Gross Unrealized Losses | $ 0 | $ 0 |
Total, Number of Securities | security | 12 | 3 |
U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 583.2 | $ 166.1 |
0-12 months, Gross Unrealized Losses | (3.7) | (0.5) |
Over 12 months, Fair Market Value | 4.6 | 79.4 |
Over 12 months, Gross Unrealized Losses | (0.1) | (0.8) |
Total, Fair Market Value | 587.8 | 245.5 |
Total, Gross Unrealized Losses | $ (3.8) | $ (1.3) |
Total, Number of Securities | security | 72 | 39 |
U.S. agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 17.6 | $ 25.1 |
0-12 months, Gross Unrealized Losses | (0.1) | 0 |
Over 12 months, Fair Market Value | 0 | 4.9 |
Over 12 months, Gross Unrealized Losses | 0 | (0.1) |
Total, Fair Market Value | 17.6 | 30 |
Total, Gross Unrealized Losses | $ (0.1) | $ (0.1) |
Total, Number of Securities | security | 12 | 7 |
Municipal Bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 1.7 | |
0-12 months, Gross Unrealized Losses | 0 | |
Over 12 months, Fair Market Value | 0 | |
Over 12 months, Gross Unrealized Losses | 0 | |
Total, Fair Market Value | 1.7 | |
Total, Gross Unrealized Losses | $ 0 | |
Total, Number of Securities | security | 3 | |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 1,179.7 | $ 459.4 |
0-12 months, Gross Unrealized Losses | (13.3) | (2.1) |
Over 12 months, Fair Market Value | 81.1 | 171.3 |
Over 12 months, Gross Unrealized Losses | (1.8) | (3.1) |
Total, Fair Market Value | 1,260.8 | 630.7 |
Total, Gross Unrealized Losses | $ (15.1) | $ (5.2) |
Total, Number of Securities | security | 510 | 274 |
Non-U.S. government-backed corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 40.9 | $ 0.7 |
0-12 months, Gross Unrealized Losses | (0.1) | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Losses | 0 | 0 |
Total, Fair Market Value | 40.9 | 0.7 |
Total, Gross Unrealized Losses | $ (0.1) | $ 0 |
Total, Number of Securities | security | 9 | 1 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 174.6 | $ 30.4 |
0-12 months, Gross Unrealized Losses | (0.8) | 0 |
Over 12 months, Fair Market Value | 2.8 | 44.2 |
Over 12 months, Gross Unrealized Losses | (0.1) | (0.2) |
Total, Fair Market Value | 177.4 | 74.6 |
Total, Gross Unrealized Losses | $ (0.9) | $ (0.2) |
Total, Number of Securities | security | 43 | 16 |
Asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 51.4 | $ 43.7 |
0-12 months, Gross Unrealized Losses | (0.3) | (0.1) |
Over 12 months, Fair Market Value | 4.2 | 11.7 |
Over 12 months, Gross Unrealized Losses | 0 | (0.1) |
Total, Fair Market Value | 55.6 | 55.4 |
Total, Gross Unrealized Losses | $ (0.3) | $ (0.2) |
Total, Number of Securities | security | 39 | 43 |
Agency mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 348.1 | $ 64.7 |
0-12 months, Gross Unrealized Losses | (3.6) | (0.3) |
Over 12 months, Fair Market Value | 72.2 | 111.7 |
Over 12 months, Gross Unrealized Losses | (1.7) | (1.9) |
Total, Fair Market Value | 420.3 | 176.4 |
Total, Gross Unrealized Losses | $ (5.3) | $ (2.2) |
Total, Number of Securities | security | 105 | 48 |
Investments - Analysis of Inves
Investments - Analysis of Investment Purchases/Sales and Maturities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Gain (Loss) on Investments [Line Items] | |||
Payments to Acquire Available-for-sale Securities | $ 2,131.9 | $ 2,005 | $ 2,129.8 |
Payments to Acquire Trading Securities Held-for-investment | 556.9 | 653.4 | 763.4 |
(Purchases) of equity securities — Available for sale | 0 | 0 | (2.5) |
(Purchases) of equity securities — Trading | (392.2) | (361) | (304.4) |
Proceeds from sales and maturities of fixed income securities — Available for sale | 1,656.3 | 1,909.5 | 1,872.3 |
Proceeds from Sale of Available-for-sale Securities, Debt | 519.9 | 615.9 | 486 |
Proceeds from sales of equity securities — Available for sale | 108.6 | 40 | 82.2 |
Proceeds from sales of equity securities — Trading | 270.8 | 62.2 | 24.1 |
Proceeds from Sale and Collection of Receivables | (2.1) | 2.8 | (0.9) |
(Purchases) of short-term investments — Available for sale | 212.1 | 580.6 | 382.3 |
Proceeds from sale of short-term investments — Available for sale | 282.6 | 470.3 | 640.5 |
Purchase of short term investments | 45.6 | 114.2 | 80.3 |
Proceeds from sale of short-term investments — Trading | 36.3 | 114 | 82.7 |
Investment in Micro-insurance venture | (0.8) | 0 | 0 |
Purchases Of Catastrophe Bonds | 20.9 | 28.7 | 5.8 |
Net proceeds from other investments | 0 | 39.3 | 0 |
Net (purchases)/sales for the period | $ (488) | $ (488.9) | $ (481.6) |
Investments - Additional Inform
Investments - Additional Information (Narrative) (Details) | Dec. 16, 2013USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2015USD ($)municipal_security | Dec. 31, 2014USD ($)municipal_security | Dec. 31, 2013USD ($) | May. 31, 2014USD ($) | Aug. 31, 2013USD ($) | Oct. 02, 2012 |
Investment Securities [Line Items] | ||||||||
Other-than-temporary impairment charge | $ 0 | $ 2,400,000 | $ 0 | |||||
Other realized losses | $ (9,300,000) | 0 | 0 | (9,300,000) | ||||
Investment funded | $ 0 | 0 | 2,500,000 | |||||
Gain (Loss) on Sale of Equity Investments | 82,500,000 | |||||||
Fair Market Value | 788,000,000 | 788,000,000 | 771,000,000 | |||||
Catastrophe bonds, trading at fair value (cost — $55.2 and $34.4) | $ 55,400,000 | 55,400,000 | 34,800,000 | |||||
Investment in Micro-insurance venture | 800,000 | 0 | 0 | |||||
Proceeds from Sale of Equity Method Investments | $ (39,300,000) | |||||||
Gross realized and unrealized gains in Cartesian | $ (600,000) | |||||||
Number of municipal holdings | municipal_security | 1 | 2 | ||||||
Municipal Holdings | $ 100,000 | |||||||
Senior Notes | ||||||||
Investment Securities [Line Items] | ||||||||
Senior note, aggregate principal amount | $ 250,000,000 | |||||||
Interest rate of senior notes | 6.00% | |||||||
Corporate and Foreign Government Debt Securities | ||||||||
Investment Securities [Line Items] | ||||||||
Fair Market Value | $ 200,000,000 | |||||||
Global Equity Strategy And Minimum Volatility Equity Portfolio | ||||||||
Investment Securities [Line Items] | ||||||||
Payments to Acquire Investments | $ 240,000,000 | |||||||
Global Equity Strategy | ||||||||
Investment Securities [Line Items] | ||||||||
Payments to Acquire Investments | 80,000,000 | |||||||
Minimum Volatility Equity Portfolio | ||||||||
Investment Securities [Line Items] | ||||||||
Payments to Acquire Investments | $ 160,000,000 | |||||||
High Yield Bond | ||||||||
Investment Securities [Line Items] | ||||||||
Investment funded | $ 25,100,000 | |||||||
Equity securities | ||||||||
Investment Securities [Line Items] | ||||||||
Percentage of investment | 8.70% | 8.50% | ||||||
BB Bank Loans | ||||||||
Investment Securities [Line Items] | ||||||||
Percentage of investment | 1.00% | |||||||
BBB Emerging Market Debt | ||||||||
Investment Securities [Line Items] | ||||||||
Percentage of investment | 3.50% | 2.50% | ||||||
Risk Asset Portfolio Cash | ||||||||
Investment Securities [Line Items] | ||||||||
Percentage of investment | 0.40% | 0.50% | ||||||
BBB Emerging Market Debt And Risk Portfolio Cash | ||||||||
Investment Securities [Line Items] | ||||||||
Percentage of investment | 12.60% | 12.50% | ||||||
Guarantor Subsidiaries | ||||||||
Investment Securities [Line Items] | ||||||||
Investment in Micro-insurance venture | $ 800,000 | |||||||
Proceeds from Sale of Equity Method Investments | $ 0 | |||||||
Gross realized and unrealized gains in Cartesian | 0 | |||||||
Cartesian | ||||||||
Investment Securities [Line Items] | ||||||||
Investment in Micro-insurance venture | 0 | |||||||
Proceeds from Sale of Equity Method Investments | 39,300,000 | (39,300,000) | ||||||
Gross realized and unrealized gains in Cartesian | 0 | 0 | 3,000,000 | |||||
Chaspark | ||||||||
Investment Securities [Line Items] | ||||||||
Investment in Micro-insurance venture | 0 | |||||||
Proceeds from Sale of Equity Method Investments | 0 | |||||||
Gross realized and unrealized gains in Cartesian | $ (600,000) | $ 0 | $ 0 | |||||
Percentage of ownership acquired | 58.50% |
Variable Interest Entities - Sc
Variable Interest Entities - Schedule of Variable Interest Entities (Details) - USD ($) | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 27, 2013 |
Silverton 2,014 | |||
Business Acquisition [Line Items] | |||
Loans issued | $ 65,000,000 | ||
Fair Value, Measurements, Recurring | Level 3 | |||
Business Acquisition [Line Items] | |||
Loan notes issued by third parties | $ 103,000,000 | $ 70,700,000 |
Variable Interest Entities - Ad
Variable Interest Entities - Additional Information (Narrative) (Details) | 12 Months Ended | ||||
Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 27, 2013USD ($) | Oct. 02, 2012 | |
Variable Interest Entity [Line Items] | |||||
Number Of Investments In Variable Interest Entities | Investment | 2 | ||||
Gross realized and unrealized gains in Cartesian | $ (600,000) | ||||
Total aggregate unpaid balance | 549,200,000 | $ 549,100,000 | |||
Chaspark | |||||
Variable Interest Entity [Line Items] | |||||
Percentage of ownership acquired | 58.50% | ||||
Gross realized and unrealized gains in Cartesian | $ (600,000) | 0 | $ 0 | ||
Silverton 2,014 | |||||
Variable Interest Entity [Line Items] | |||||
Loans issued | $ 65,000,000 | ||||
Percentage of interests acquired | 100.00% | ||||
Silverton 2014 | Loan Notes 2014 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | $ 800,000 | ||||
Silverton 2014 | Silverton Loan Notes | |||||
Variable Interest Entity [Line Items] | |||||
Repayments of Debt | 88,100,000 | ||||
Silverton 2014 | Third party | |||||
Variable Interest Entity [Line Items] | |||||
Loans issued | $ 50,000,000 | ||||
Silverton 2014 | Aspen Holdings and Third Parties | Silverton Loan Notes | |||||
Variable Interest Entity [Line Items] | |||||
Total aggregate unpaid balance | 800,000 | ||||
Silverton 2014 | Aspen Holdings | Silverton Loan Notes | |||||
Variable Interest Entity [Line Items] | |||||
Maximum loss exposure, amount | 200,000 | ||||
Silverton 2,015 | |||||
Variable Interest Entity [Line Items] | |||||
Total aggregate unpaid balance | 3,000,000 | ||||
Silverton 2015 | Loan Notes 2015 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | 109,000,000 | ||||
Repayments of Debt | 106,400,000 | ||||
Silverton 2015 | Aspen Holdings | Silverton Loan Notes | |||||
Variable Interest Entity [Line Items] | |||||
Maximum loss exposure, amount | 19,200,000 | ||||
Silverton 2015 | Aspen Holdings | Loan Notes 2015 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | 109,000,000 | ||||
Silverton 2016 | Loan Notes 2016 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | 125,000,000 | ||||
Silverton 2016 | Aspen Holdings | Silverton Loan Notes | |||||
Variable Interest Entity [Line Items] | |||||
Maximum loss exposure, amount | 25,000,000 | ||||
Silverton 2016 | Aspen Holdings | Loan Notes 2016 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | 125,000,000 | ||||
Silverton 2,016 | |||||
Variable Interest Entity [Line Items] | |||||
Loans issued | 125,000,000 | ||||
Loan notes issued by third parties | 100,000,000 | 100,000,000 | |||
Silverton 2,015 | |||||
Variable Interest Entity [Line Items] | |||||
Loans issued | 85,000,000 | ||||
Loan notes issued by third parties | 89,800,000 | 70,000,000 | |||
Investor | Silverton 2014 | Loan Notes 2014 | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Fair Value Disclosure | 600,000 | ||||
Repayments of Debt | 67,800,000 | ||||
Total aggregate unpaid balance | 600,000 | ||||
Long-term Debt, Current Maturities | 600,000 | ||||
Investor | Silverton 2015 | Loan Notes 2015 | |||||
Variable Interest Entity [Line Items] | |||||
Long-term Debt, Current Maturities | 86,800,000 | ||||
Fair Value, Measurements, Recurring | |||||
Variable Interest Entity [Line Items] | |||||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | 67,900,000 | ||||
Level 3 | Fair Value, Measurements, Recurring | |||||
Variable Interest Entity [Line Items] | |||||
Loan notes issued by third parties | 103,000,000 | 70,700,000 | |||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | $ 87,600,000 | $ 67,900,000 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | $ 55.2 | $ 34.4 |
Derivatives at fair value | 9.2 | 8 |
Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (67.9) | |
Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 0 | |
Loan notes issued by variable interest entities, at fair value | 0 | 0 |
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | 0 | 0 |
Total | 2,548 | 2,542.3 |
Recurring | Level 1 | Short-term investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 7.4 | 0.1 |
Recurring | Level 1 | Equity investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 736.4 | 616 |
Recurring | Level 1 | Derivatives at fair value | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 1 | Derivatives at fair value | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 1 | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,123.1 | 1,094.4 |
Recurring | Level 1 | Available for sale financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 449.5 | 456.5 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Non-agency commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Available for sale financial assets, at fair value | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,572.6 | 1,550.9 |
Recurring | Level 1 | Short-term investments — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 130.5 | 229.3 |
Recurring | Level 1 | Total equity securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 109.9 |
Recurring | Level 1 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 101.1 | 36.1 |
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 0 | |
Recurring | Level 1 | Held for trading financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 27.3 | 0 |
Recurring | Level 1 | Held for trading financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Held for trading financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Held for trading financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Held for trading financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 73.8 | 36.1 |
Recurring | Level 1 | Held for trading financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 1 | Held for trading financial assets, at fair value | Bank loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 34.8 | |
Loan notes issued by variable interest entities, at fair value | 0 | 0 |
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | 0 | 0 |
Total | 5,160.5 | 4,871.6 |
Recurring | Level 2 | Short-term investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 2.1 | 0.1 |
Recurring | Level 2 | Equity investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | Derivatives at fair value | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 8.8 | 7.9 |
Recurring | Level 2 | Derivatives at fair value | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0.4 | 0.1 |
Recurring | Level 2 | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | (4) | (14.3) |
Recurring | Level 2 | Available for sale financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | Available for sale financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 158.7 | 197.4 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 26.6 | 31.5 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 2,660.6 | 2,319.4 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 82.1 | 78 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 194.7 | 209.2 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 76 | 143.5 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Non-agency commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 26.7 | 44.8 |
Recurring | Level 2 | Available for sale financial assets, at fair value | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,153.1 | 1,055.3 |
Recurring | Level 2 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 4,378.5 | 4,079.1 |
Recurring | Level 2 | Short-term investments — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 32.4 | 29 |
Recurring | Level 2 | Total equity securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 686.9 | 734.9 |
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 55.4 | |
Recurring | Level 2 | Held for trading financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 2 | Held for trading financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0.2 |
Recurring | Level 2 | Held for trading financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0.5 | 1.1 |
Recurring | Level 2 | Held for trading financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 558.2 | 529.8 |
Recurring | Level 2 | Held for trading financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 105.7 | 104 |
Recurring | Level 2 | Held for trading financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 20.5 | 14.7 |
Recurring | Level 2 | Held for trading financial assets, at fair value | Bank loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 2 | 85.1 |
Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 0 | |
Loan notes issued by variable interest entities, at fair value | (103) | (70.7) |
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (87.6) | (67.9) |
Total | (190.6) | (138.6) |
Recurring | Level 3 | Short-term investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Equity investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Derivatives at fair value | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 3 | Derivatives at fair value | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0 | 0 |
Recurring | Level 3 | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Non-agency commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Available for sale financial assets, at fair value | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Short-term investments — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Total equity securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 0 | |
Recurring | Level 3 | Held for trading financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Recurring | Level 3 | Held for trading financial assets, at fair value | Bank loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 34.8 | |
Loan notes issued by variable interest entities, at fair value | (103) | (70.7) |
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (87.6) | |
Total | 7,517.9 | 7,275.3 |
Estimate of Fair Value Measurement [Member] | Recurring | Short-term investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 9.5 | 0.2 |
Estimate of Fair Value Measurement [Member] | Recurring | Equity investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 736.4 | 616 |
Estimate of Fair Value Measurement [Member] | Recurring | Derivatives at fair value | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 8.8 | 7.9 |
Estimate of Fair Value Measurement [Member] | Recurring | Derivatives at fair value | Interest Rate Swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivatives at fair value | 0.4 | 0.1 |
Estimate of Fair Value Measurement [Member] | Recurring | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities under derivative contracts, fair value | (4) | (14.3) |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,123.1 | 1,094.4 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 158.7 | 197.4 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 26.6 | 31.5 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 2,660.6 | 2,319.4 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Foreign Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 82.1 | 78 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 644.2 | 665.7 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 76 | 143.5 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Non-agency commercial mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 26.7 | 44.8 |
Estimate of Fair Value Measurement [Member] | Recurring | Available for sale financial assets, at fair value | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 1,153.1 | 1,055.3 |
Estimate of Fair Value Measurement [Member] | Recurring | Fixed income securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 5,951.1 | 5,630 |
Estimate of Fair Value Measurement [Member] | Recurring | Short-term investments — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 162.9 | 258.3 |
Estimate of Fair Value Measurement [Member] | Recurring | Total equity securities — Available for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 109.9 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 788 | 771 |
Catastrophe bonds, trading at fair value (cost — $5.8 and $5.8) | 55.4 | |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 27.3 | 0 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0 | 0.2 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | Municipal Bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 0.5 | 1.1 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 558.2 | 529.8 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 179.5 | 140.1 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | 20.5 | 14.7 |
Estimate of Fair Value Measurement [Member] | Recurring | Held for trading financial assets, at fair value | Bank loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, fair value | $ 2 | $ 85.1 |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | $ 67.9 | |
Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at the beginning of the period (1) | $ 138.6 | 50 |
Notes issued during the period | 100 | 70 |
Balance at the end of the period (1) | 138.6 | |
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | 87.6 | 67.9 |
Silverton 2015 | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Proceeds from Equity Method Investment, Dividends or Distributions | (67.8) | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | 19.8 | |
Balance at the end of the period (1) | 190.6 | |
Silverton 2014 | Level 3 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Balance at the beginning of the period (1) | $ 138.6 | |
Proceeds from Equity Method Investment, Dividends or Distributions | 0 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Period Increase (Decrease) | 18.6 | |
Balance at the end of the period (1) | $ 138.6 |
Fair Value Measurements - Prici
Fair Value Measurements - Pricing Sources Used in Pricing Fixed Income Investments (Details) | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value Disclosures [Abstract] | ||
Index providers | 85.00% | 84.00% |
Pricing services | 10.00% | 11.00% |
Broker-dealers | 5.00% | 5.00% |
Total | 100.00% | 100.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Securities Priced Using Pricing Information from Index Providers (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 6,454.5 | $ 6,121 |
% of Total Fair Value by Security Type | 86.00% | 86.00% |
Fixed Income Maturities | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 5,718.1 | $ 5,395.1 |
% of Total Fair Value by Security Type | 85.00% | 84.00% |
Fixed Income Maturities | U.S. government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 1,095.4 | $ 1,044.4 |
% of Total Fair Value by Security Type | 95.00% | 95.00% |
Fixed Income Maturities | U.S. agency | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 148.5 | $ 186.9 |
% of Total Fair Value by Security Type | 94.00% | 95.00% |
Fixed Income Maturities | Municipal Bonds | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 10.5 | $ 13.7 |
% of Total Fair Value by Security Type | 39.00% | 42.00% |
Fixed Income Maturities | Corporate | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 3,083.5 | $ 2,731.1 |
% of Total Fair Value by Security Type | 96.00% | 96.00% |
Fixed Income Maturities | Foreign Corporate Debt Securities [Member] | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 41.7 | $ 48.7 |
% of Total Fair Value by Security Type | 51.00% | 62.00% |
Fixed Income Maturities | Foreign government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 517.6 | $ 504.4 |
% of Total Fair Value by Security Type | 63.00% | 63.00% |
Fixed Income Maturities | Asset-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 55.3 | $ 140.5 |
% of Total Fair Value by Security Type | 57.00% | 89.00% |
Fixed Income Maturities | Non-agency commercial mortgage-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 22.7 | $ 44.8 |
% of Total Fair Value by Security Type | 85.00% | 100.00% |
Fixed Income Maturities | Agency mortgage-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 742.9 | $ 680.6 |
% of Total Fair Value by Security Type | 64.00% | 64.00% |
Total equity securities — Available for sale | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 736.4 | $ 725.9 |
% of Total Fair Value by Security Type | 100.00% | 100.00% |
Fair Value Measurements- Additi
Fair Value Measurements- Additional Information (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2015USD ($)$ / Investment | Dec. 31, 2014USD ($)$ / Investment | Dec. 31, 2013USD ($) | Dec. 27, 2013USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross written premiums | $ 2,997,300,000 | $ 2,902,700,000 | $ 2,646,700,000 | |
Quotes per fixed income investment | $ / Investment | 2 | 2 | ||
Quotes per equity investment | $ / Investment | 4 | 4 | ||
Silverton 2,014 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans issued | $ 65,000,000 | $ 65,000,000 | ||
Loan notes issued by third parties | 50,000,000 | $ 50,000,000 | ||
Silverton 2,015 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans issued | $ 85,000,000 | |||
Loan notes issued by third parties | 89,800,000 | 70,000,000 | ||
Silverton 2,016 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans issued | 125,000,000 | |||
Loan notes issued by third parties | 100,000,000 | 100,000,000 | ||
Minimum | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross written premiums | 0 | 0 | ||
Loan notes issued by third parties | 220,000,000 | 120,000,000 | ||
Reserve for Losses | 0 | $ 0 | ||
Minimum | Level 3 | Silverton 2014 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross written premiums | 0 | |||
Reserve for Losses | $ 0 |
Fair Value Measurement - Inputs
Fair Value Measurement - Inputs Used (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gross written premiums | $ 2,997.3 | $ 2,902.7 | $ 2,646.7 |
Minimum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan notes held by third parties | 220 | 120 | |
Gross written premiums | 0 | 0 | |
Reserve for Losses | 0 | 0 | |
Maximum | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loan notes held by third parties | 220 | 120 | |
Gross written premiums | 38.9 | 40 | |
Reserve for Losses | $ 4.2 | $ 4.6 | |
Contract Period | 365 days | 365 days |
Reinsurance - Summary of Assume
Reinsurance - Summary of Assumed and Ceded Reinsurance on Premiums Written, Premiums Earned and Insurance Losses and Loss Adjustment Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums written: | |||||||||||||||
Direct | $ 1,748.4 | $ 1,729.9 | $ 1,512.8 | ||||||||||||
Assumed | 1,248.9 | 1,172.8 | 1,133.9 | ||||||||||||
Ceded | (351.1) | (387.5) | (347) | ||||||||||||
Net premiums written | 2,646.2 | 2,515.2 | 2,299.7 | ||||||||||||
Premiums earned: | |||||||||||||||
Direct | 1,703.3 | 1,599 | 1,366.8 | ||||||||||||
Assumed | 1,153.5 | 1,137.6 | 1,126.6 | ||||||||||||
Ceded | (383.5) | (331.3) | (321.6) | ||||||||||||
Net premiums earned | $ 629.7 | $ 640.6 | $ 609.4 | $ 593.6 | $ 612.2 | $ 610.4 | $ 616.2 | $ 566.5 | $ 572.6 | $ 544.3 | $ 544 | $ 510.9 | 2,473.3 | 2,405.3 | 2,171.8 |
Insurance losses and loss adjustment expenses: | |||||||||||||||
Direct | 980.6 | 908.2 | 829.4 | ||||||||||||
Assumed | 493 | 496.9 | 459.4 | ||||||||||||
Ceded | (107.4) | (97.6) | (65.1) | ||||||||||||
Net insurance losses and loss adjustment expenses | $ 334 | $ 365.6 | $ 360.5 | $ 306.1 | $ 339.6 | $ 342.7 | $ 337.1 | $ 288.1 | $ 331.4 | $ 290.2 | $ 333.4 | $ 268.7 | $ 1,366.2 | $ 1,307.5 | $ 1,223.7 |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | $ 951,300,000 | |||
Collateral Already Posted, Aggregate Fair Value | $ 10,100,000 | 22,300,000 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 379,900,000 | 403,400,000 | ||
Not Designated as Hedging Instrument | Derivatives at Fair Value | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 756,300,000 | 951,300,000 | ||
Fair Value | [1] | 100,000 | ||
Not Designated as Hedging Instrument | Derivatives at Fair Value | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 217,700,000 | 165,800,000 | ||
Fair Value | 7,900,000 | |||
Not Designated as Hedging Instrument | Liabilities under Derivative Contracts | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Notional Amount | 162,200,000 | 237,600,000 | ||
Fair Value | (10,500,000) | |||
Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative, Notional Amount | 113,600,000 | 135,800,000 | [2] | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,900,000) | (300,000) | ||
Collateral Already Posted, Aggregate Fair Value | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Recurring | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 5,160,500,000 | 4,871,600,000 | ||
Derivative Financial Instruments, Assets | Level 2 | Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Derivatives at Fair Value | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | [1] | 400,000 | ||
Derivative Financial Instruments, Assets | Level 2 | Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Derivatives at Fair Value | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | 8,800,000 | |||
Liabilities under derivative contracts — foreign exchange contracts | Level 2 | Fair Value, Measurements, Recurring | Not Designated as Hedging Instrument | Liabilities under Derivative Contracts | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | (2,800,000) | |||
Change in Fair Value of Derivatives | Designated as Hedging Instrument | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | $ (1,200,000) | $ (3,800,000) | ||
[1] | Net of $10.1 million of cash collateral provided to counterparties, Goldman Sachs International ($256.3 million notional) and Crédit Agricole CIB ($500.0 million notional) under respective International Swap Dealers Association agreements, as security for the Company’s net liability position (December 31, 2014 — $22.3 million). | |||
[2] | Net of $Nil cash collateral (December 31, 2014 — $Nil). |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - Change in Fair Value of Derivatives - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (charge) to net income from derivative instruments | $ (4.8) | $ (7.2) |
Foreign Exchange Contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (charge) to net income from derivative instruments | $ 11.6 | $ (7.7) |
Derivative Contracts - Addition
Derivative Contracts - Additional Information (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | |||
Level 2 | Fair Value, Measurements, Recurring | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | $ 5,160,500,000 | $ 4,871,600,000 | ||
Foreign Exchange Contracts | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 379,900,000 | 403,400,000 | ||
Foreign Exchange Contracts | Not Designated as Hedging Instrument | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | 7,900,000 | |||
Derivative Liability, Notional Amount | 217,700,000 | 165,800,000 | ||
Foreign Exchange Contracts | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | Level 2 | Fair Value, Measurements, Recurring | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | 8,800,000 | |||
Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 113,600,000 | 135,800,000 | [1] | |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (4,900,000) | (300,000) | ||
Collateral provided to counterparties as security for the Company's net liability position | 0 | 0 | ||
Foreign Exchange Contracts | Change In Fair Value Of Derivatives | Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) on Foreign Currency Fair Value Hedge Derivatives | 2,600,000 | (3,800,000) | ||
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 951,300,000 | |||
Collateral provided to counterparties as security for the Company's net liability position | 10,100,000 | 22,300,000 | ||
Pledged assets | 0 | 0 | ||
Pledged assets recorded in balance sheet | 0 | |||
Interest Rate Swaps | Contract Termination | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 195,000,000 | |||
Interest Rate Swaps | Not Designated as Hedging Instrument | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | [2] | 100,000 | ||
Derivative Liability, Notional Amount | 756,300,000 | $ 951,300,000 | ||
Interest Rate Swaps | Not Designated as Hedging Instrument | Derivative Financial Instruments, Assets | Level 2 | Fair Value, Measurements, Recurring | Derivative At Fair Value | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Fair Value | [2] | 400,000 | ||
Goldman Sachs International | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | 256,300,000 | |||
Credit Agricole CIB | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Purchase of US and foreign exchange | $ 500,000,000 | |||
[1] | Net of $Nil cash collateral (December 31, 2014 — $Nil). | |||
[2] | Net of $10.1 million of cash collateral provided to counterparties, Goldman Sachs International ($256.3 million notional) and Crédit Agricole CIB ($500.0 million notional) under respective International Swap Dealers Association agreements, as security for the Company’s net liability position (December 31, 2014 — $22.3 million). |
Deferred Policy Acquisition C85
Deferred Policy Acquisition Costs - Reconciliation of beginning and ending deferred policy acquisition costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||||||||||||||
Balance at the beginning of the period | $ 299 | $ 262.2 | $ 299 | $ 262.2 | |||||||||||
Acquisition costs deferred | 545.7 | 488 | |||||||||||||
Amortization of deferred policy acquisition costs | $ (118.2) | $ (132) | $ (114.1) | $ (119.3) | $ (114.8) | $ (115.5) | $ (108.9) | $ (112) | $ (99.7) | $ (110.5) | $ (107.2) | $ (104.6) | (483.6) | (451.2) | $ (422) |
Balance at the end of the period | $ 361.1 | $ 299 | $ 262.2 | $ 361.1 | $ 299 | $ 262.2 |
Reserves for Losses and Adjus86
Reserves for Losses and Adjustment Expenses - Reconciliation of Beginning and Ending Consolidated Loss and Loss Adjustment Expenses (LAE) Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Insurance [Abstract] | ||||
Provision for losses and LAE, beginning balance | $ 4,750.8 | $ 4,678.9 | $ 4,779.7 | |
Less reinsurance recoverable | (350) | (332.7) | $ (499) | |
Net losses and LAE reserves, beginning balance | 4,400.8 | 4,346.2 | 4,280.7 | |
Net loss and LAE expenses (disposed) | 0 | (24.2) | (34.6) | |
Provision for losses and LAE for claims incurred: | ||||
Current year | 1,522.7 | 1,411.6 | 1,331.4 | |
Prior years | (156.5) | (104.1) | (107.7) | |
Total incurred | 1,366.2 | 1,307.5 | 1,223.7 | |
Losses and LAE payments for claims incurred: | ||||
Current year | (141.9) | (112.1) | (172.8) | |
Prior years | (966.6) | (995.6) | (912.3) | |
Total paid | (1,108.5) | (1,107.7) | (1,085.1) | |
Foreign exchange (gains)/losses | (75.1) | (121) | (38.5) | |
Net losses and LAE reserves, ending balance | 4,583.4 | 4,400.8 | 4,346.2 | |
Plus reinsurance recoverable on unpaid losses at the end of the year | 354.8 | 350 | 332.7 | |
Provision for losses and LAE, ending balance | $ 4,938.2 | $ 4,750.8 | $ 4,678.9 |
Reserves for Losses and Adjus87
Reserves for Losses and Adjustment Expenses - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Insurance [Abstract] | |||
Prior years | $ 156.5 | $ 104.1 | $ 107.7 |
Liability For Unpaid Claims And Claims Adjustment Expense Amount Disposed Of | $ 0 | $ 24.2 | $ 34.6 |
Income Taxes - Summary of Total
Income Taxes - Summary of Total Income Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Income tax expense on continuing operations | $ 5.3 | $ 1.8 | $ 2.2 | $ 5.1 | $ 0.8 | $ 1.3 | $ 6.2 | $ 3.8 | $ 3.6 | $ 2.9 | $ 1 | $ 5.9 | $ 14.4 | $ 12.1 | $ 13.4 |
Income tax (benefit) on other comprehensive income | 15.3 | 5.1 | 13.7 | ||||||||||||
Income tax (benefit) charged directly to shareholders’ equity | 1.9 | 1.2 | 1.5 | ||||||||||||
Total income tax expense/(benefit) | $ (2.8) | $ 5.8 | $ (1.8) |
Income Taxes - Income_(Loss) Be
Income Taxes - Income/(Loss) Before Tax and Income Tax Expense/(Benefit) Attributable to that Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Examination [Line Items] | |||||||||||||||
(Loss)/income before tax, U.S. | $ (32.7) | $ (44.1) | $ (45.7) | ||||||||||||
Income from operations before income tax | $ 123.2 | $ 30 | $ 51.2 | $ 133.1 | $ 68 | $ 38.7 | $ 137 | $ 124.2 | $ 93.6 | $ 110.3 | $ 41.1 | $ 97.7 | 337.5 | 367.9 | 342.7 |
Current income tax (benefit)/expense, U.S. | (0.2) | (1.5) | 0 | ||||||||||||
Current income tax (benefit)/expense, Total | 23.3 | 23.4 | 9.7 | ||||||||||||
Deferred income Tax (benefit), U.S. | 0 | 0 | 0 | ||||||||||||
Deferred Income Tax, Total | (8.9) | (11.3) | 3.7 | ||||||||||||
Total income tax expense/(benefit), U.S. | (0.2) | (1.5) | 0 | ||||||||||||
Total income tax expense/(benefit) | $ 5.3 | $ 1.8 | $ 2.2 | $ 5.1 | $ 0.8 | $ 1.3 | $ 6.2 | $ 3.8 | $ 3.6 | $ 2.9 | $ 1 | $ 5.9 | 14.4 | 12.1 | 13.4 |
Office of the Tax Commissioner, Bermuda [Member] | |||||||||||||||
Income Tax Examination [Line Items] | |||||||||||||||
(Loss)/income before tax, Non-U.S. | 283.9 | 376.2 | 353.9 | ||||||||||||
Current income tax (benefit)/expense, Non-U.S. | 0 | 0 | 0 | ||||||||||||
Deferred income Tax (benefit), Non-U.S. | 0 | 0 | 0 | ||||||||||||
Total income tax expense/(benefit), Non-U.S. | 0 | 0 | 0 | ||||||||||||
Her Majesty's Revenue and Customs (HMRC) [Member] | |||||||||||||||
Income Tax Examination [Line Items] | |||||||||||||||
(Loss)/income before tax, Non-U.S. | 86.3 | 35.8 | 34.5 | ||||||||||||
Current income tax (benefit)/expense, Non-U.S. | 23.5 | 24.9 | 9.7 | ||||||||||||
Deferred income Tax (benefit), Non-U.S. | (8.9) | (11.3) | 3.7 | ||||||||||||
Total income tax expense/(benefit), Non-U.S. | $ 14.6 | $ 13.6 | $ 13.4 |
Income Taxes - Income Tax Recon
Income Taxes - Income Tax Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Tax Disclosure [Abstract] | ||||||||||||||||
Expected tax (benefit)/expense | $ 0 | $ 0 | $ 0 | |||||||||||||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 6.4 | (7.3) | (7.5) | |||||||||||||
Prior year adjustments | [1] | (4.5) | (0.6) | (4.2) | ||||||||||||
Valuation allowance on U.S. deferred tax assets | 11.8 | 12.7 | 15.1 | |||||||||||||
Unrecognized tax benefits | 0 | 5.3 | 8.5 | |||||||||||||
Valuation allowance on foreign tax credits | 0.6 | 0 | 2.6 | |||||||||||||
Nondeductible expenses | 1.3 | 1.8 | 1.6 | |||||||||||||
Non-taxable items | (1.3) | 0 | (0.2) | |||||||||||||
Impact of changes in statutory tax rates | 0.1 | 0.2 | (2.5) | |||||||||||||
Total income tax expense/(benefit) | $ 5.3 | $ 1.8 | $ 2.2 | $ 5.1 | $ 0.8 | $ 1.3 | $ 6.2 | $ 3.8 | $ 3.6 | $ 2.9 | $ 1 | $ 5.9 | $ 14.4 | $ 12.1 | $ 13.4 | |
[1] | The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of the Company’s Annual Report on Form 10-K. The final tax liabilities may differ from the estimated tax expense included in the Annual Report on Form 10-K and may result in prior year adjustments being reported. |
Income Taxes - Schedule of Unre
Income Taxes - Schedule of Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 15.3 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | ||
Unrecognized tax benefits, beginning balance | 29.2 | $ 23.9 |
Gross increases/(decreases) for tax positions of prior years | 0 | 5.3 |
Gross increases/(decreases) for tax positions of current year | 0 | 0 |
Unrecognized tax benefits, ending balance | 29.2 | $ 29.2 |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 13.5 | |
Tax Credit Carryforward, Amount | $ 0.4 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Narrative) (Details) - USD ($) | 3 Months Ended | 8 Months Ended | 9 Months Ended | 12 Months Ended | ||||
Mar. 31, 2015 | Mar. 31, 2021 | Dec. 31, 2015 | Mar. 31, 2018 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Income Taxes [Line Items] | ||||||||
United States corporate tax at a rate | 34.00% | |||||||
Accrued interest and penalties | $ 0 | |||||||
Prior year adjustments | [1] | $ (4,500,000) | (600,000) | $ (4,200,000) | ||||
Revision to the U.S. Net Operating Losses position | 100,000 | 200,000 | (2,500,000) | |||||
Net of estimated and actual net tax position | 0 | |||||||
Gross increases/(decreases) for tax positions of prior years | 0 | 5,300,000 | ||||||
Unrecognized Tax Benefits | $ 29,200,000 | 29,200,000 | $ 29,200,000 | 23,900,000 | ||||
Unrecognized Tax Benefits, Treatment of Interest | 15,300,000 | 15,300,000 | ||||||
Unrecognized Tax Benefits, Valuation Allowance | 13,500,000 | 13,500,000 | ||||||
Tax Credit Carryforward, Amount | $ 400,000 | 400,000 | ||||||
Final Determination of Equalization Reserves [Member] | ||||||||
Income Taxes [Line Items] | ||||||||
Prior year adjustments | (2,800,000) | (2,000,000) | ||||||
Acquisition-related Costs | ||||||||
Income Taxes [Line Items] | ||||||||
Prior year adjustments | $ (2,000,000) | |||||||
U.K. | ||||||||
Income Taxes [Line Items] | ||||||||
U. K. corporate tax rate reduced during the period | 21.00% | 20.00% | ||||||
U.K. | Forecast | ||||||||
Income Taxes [Line Items] | ||||||||
U. K. corporate tax rate reduced during the period | 18.00% | 19.00% | ||||||
Valuation Allowance, Operating Loss Carryforwards | ||||||||
Income Taxes [Line Items] | ||||||||
Revision to the U.S. Net Operating Losses position | $ 1,700,000 | |||||||
[1] | The submission dates for filing income tax returns for the Company’s U.S. and U.K. operating subsidiaries are after the submission date of the Company’s Annual Report on Form 10-K. The final tax liabilities may differ from the estimated tax expense included in the Annual Report on Form 10-K and may result in prior year adjustments being reported. |
Deferred Taxation - Tax Effects
Deferred Taxation - Tax Effects of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Share based payments | $ 4 | $ 2.8 |
Operating loss carryforwards(1) | 108.3 | 101.1 |
Loss reserves | 0.5 | 1.8 |
Accrued expenses | 7.9 | 11.2 |
Foreign tax credit carryforwards | 16.3 | 13 |
Unearned premiums | 6 | 4.9 |
Deferred policy acquisition costs | 3.2 | 0 |
Office properties and equipment | 7.1 | 8.7 |
Other temporary differences | 9.8 | 6.7 |
Total gross deferred tax assets | 163.1 | 150.2 |
Less valuation allowance(1) | (124.4) | (113.2) |
Net deferred tax assets | 38.7 | 37 |
Deferred tax liabilities: | ||
Equalization provision reserves | (30.9) | (32.1) |
Unrealized (gains) on investments | (0.2) | (2.2) |
Intangible assets (other) | (2.5) | (1.5) |
Deferred policy acquisition costs | 0 | (2) |
Other temporary differences | (1.4) | (2.3) |
Total gross deferred tax (liabilities) | (35) | (40.1) |
Net deferred tax asset/(liability) | 3.7 | |
Deferred Tax Liabilities, Net | $ 0 | $ (3.1) |
Deferred Taxation - Additional
Deferred Taxation - Additional Information (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Valuation allowance | $ 124,400,000 | $ 113,200,000 |
US branch, earnings and profits | 47,000,000 | |
Increase in valuation allowance | 12,000,000 | 12,700,000 |
US branch profits, subject to tax | 2,300,000 | |
Income Statement | ||
Valuation allowance | 11,800,000 | 12,700,000 |
Accumulated Other Comprehensive Income | ||
Valuation allowance | 200,000 | 0 |
Internal Revenue Service (IRS) | ||
Net operating loss carryforwards | 291,400,000 | 267,400,000 |
Capital loss carryforwards | 300,000 | 1,300,000 |
Charitable contribution carryforwards | 500,000 | 600,000 |
Valuation allowance | $ 118,500,000 | 106,500,000 |
Internal Revenue Service (IRS) | Minimum | ||
Net operating loss carryforwards expiration year | 2,026 | |
Internal Revenue Service (IRS) | Maximum | ||
Net operating loss carryforwards expiration year | 2,035 | |
Her Majesty's Revenue and Customs (HMRC) [Member] | ||
Net operating loss carryforwards | $ 46,000,000 | 50,300,000 |
Valuation allowance | 5,900,000 | 6,700,000 |
Increase in valuation allowance | 800,000 | 6,700,000 |
Her Majesty's Revenue and Customs (HMRC) [Member] | Income Statement | ||
Valuation allowance | 800,000 | 6,700,000 |
Her Majesty's Revenue and Customs (HMRC) [Member] | Other Comprehensive Income (Loss) [Member] | ||
Valuation allowance | $ 0 | $ 0 |
Capital Structure - Summary of
Capital Structure - Summary of Authorized and Issued Share Capital (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Nov. 15, 2006 |
Authorized share capital: | ||||
Number of ordinary shares | 969,629,030 | 969,629,030 | ||
Number of non-voting shares | 6,787,880 | 6,787,880 | ||
Number of preference shares | 100,000,000 | 100,000,000 | ||
Ordinary Shares, authorized | $ 1,469 | $ 1,469 | ||
Non-Voting Shares, authorized | 10 | 10 | ||
Preference Shares, authorized | 152 | 152 | ||
Total authorized share capital | $ 1,631 | $ 1,631 | ||
Issued share capital: | ||||
Ordinary shares, issued | 60,918,373 | 62,017,368 | 65,546,976 | |
Ordinary shares, value | $ 100 | $ 100 | ||
Total issued share capital | $ 127 | $ 129 | ||
7.401% Preference Shares | ||||
Issued share capital: | ||||
Preference shares, issued | 5,327,500 | 5,327,500 | 8,000,000 | |
Preferred Stock, Value, Subscriptions | $ 8 | $ 8 | ||
7.250% Preference Shares | ||||
Issued share capital: | ||||
Preference shares, issued | 6,400,000 | 6,400,000 | ||
Preferred Stock, Value, Subscriptions | $ 10 | $ 10 | ||
Series D Preferred Stock [Member] | ||||
Issued share capital: | ||||
Preference shares, issued | 11,000,000 | 11,000,000 | ||
Preferred Stock, Value, Subscriptions | $ 17 | $ 17 |
Capital Structure - Summary o96
Capital Structure - Summary of Authorized and Issued Share Capital (Phantom) (Detail) - $ / shares | May. 02, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Apr. 25, 2013 | Apr. 11, 2012 | Nov. 15, 2006 |
Class of Stock [Line Items] | |||||||
Ordinary shares, par value | $ 0.15144558 | $ 0.15144558 | |||||
Non-voting shares, par value | 0.15144558 | 0.15144558 | |||||
Preference shares, par value | 0.15144558 | 0.15144558 | |||||
Redemption price per share | 25 | 25 | |||||
Perpetual Non Cumulative Preference Shares | |||||||
Class of Stock [Line Items] | |||||||
Redemption price per share | $ 25 | 25 | |||||
Preferred Stock, Call or Exercise Features | No stated maturity but are callable at the option of the Company on or after the 10th anniversary of the date of issuance. | ||||||
Preferred Stock, Dividend Payment Rate, Variable | 3-month LIBOR | ||||||
5.625% Preference Shares | |||||||
Class of Stock [Line Items] | |||||||
Redemption price per share | $ 50 | ||||||
Preference shares, rate | 5.625% | ||||||
7.401% Preference Shares | |||||||
Class of Stock [Line Items] | |||||||
Preference shares, par value | 0.15144558 | 0.15144558 | |||||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||||
Preference shares, rate | 7.401% | 7.401% | |||||
7.250% Preference Shares | |||||||
Class of Stock [Line Items] | |||||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | |||||
Redemption price per share | $ 25 | $ 25 | $ 25 | ||||
Preference shares, rate | 7.25% | 7.25% | |||||
5.950% Preference Shares | |||||||
Class of Stock [Line Items] | |||||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | |||||
Redemption price per share | $ 25 | $ 25 | |||||
Preference shares, rate | 5.95% | 5.95% |
Capital Structure - Summary o97
Capital Structure - Summary of Ordinary Shares (Details) - shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | ||
Ordinary shares in issue at the beginning of the year | 62,017,368 | 65,546,976 |
Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan | 649,394 | 756,676 |
Ordinary shares issued to non-employee directors | 41,944 | 3,573 |
Ordinary shares repurchased | (1,790,333) | (4,289,857) |
Ordinary shares in issue at the end of the year | 60,918,373 | 62,017,368 |
Capital Structure - Additional
Capital Structure - Additional Information (Narrative) (Details) | Feb. 04, 2016 | Feb. 05, 2015USD ($) | Apr. 17, 2014$ / sharesshares | May. 02, 2013USD ($)$ / sharesshares | Apr. 25, 2013USD ($)$ / sharesshares | Aug. 17, 2012 | Apr. 11, 2012USD ($)$ / sharesshares | Mar. 31, 2009USD ($)$ / sharesshares | Nov. 15, 2006USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2013USD ($) | Dec. 31, 2006shares | Dec. 31, 2005shares | |
Class of Stock [Line Items] | |||||||||||||||
Additional paid in capital | $ 1,075,300,000 | $ 1,134,300,000 | |||||||||||||
Aggregate Liquidation Preferences | $ 154,500,000 | 568,200,000 | 568,200,000 | ||||||||||||
Preferred Stock Issuance Cost | $ 3,700,000 | 12,400,000 | 12,400,000 | ||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 416,300,000 | $ 43,300,000 | |||||||||||||
Stock Repurchased During Period, Shares | shares | 1,790,333 | 4,289,857 | |||||||||||||
Percentage Of Conversion Price | 130.00% | 130.00% | |||||||||||||
Conversion Price, Number of Trading Days in Period | 20 days | 20 days | 20 days | ||||||||||||
Number of Consecutive Trading Days in Period | 30 days | 30 days | |||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | $ 25 | |||||||||||||
Changes In Redemption Value Of Preferred Income Equity Replacement Securities | [1] | $ 0 | $ 0 | $ 7,100,000 | |||||||||||
Preference Dividend Basis Spread On Variable Rate | 3.28% | ||||||||||||||
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 196,300,000 | $ 0 | 0 | 270,600,000 | |||||||||||
Preferred Stock, Redemption Date | Jul. 1, 2023 | ||||||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares | $ 160 | ||||||||||||||
Class of Warrant or Right, Rights Agreement Exercise Rule, Ordinary Share Ownership Percentage | 10.00% | ||||||||||||||
Passive Institutional Investors | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Class of Warrant or Right, Rights Agreement Exercise Rule, Ordinary Share Ownership Percentage | 15.00% | ||||||||||||||
5.625% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Shares Issued | shares | 4,600,000 | 4,600,000 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% | |||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 50 | ||||||||||||||
Conversion Rate Of Ordinary Shares | 1.7121 | ||||||||||||||
Stock Issued During Period Shares For Redemption Of Preferred Income Equity Replacement Secs | shares | 1,835,860 | ||||||||||||||
Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock Redeemed or Called During Period, Value | $ 230,000,000 | $ 230,000,000 | $ 230,000,000 | 230,000,000 | |||||||||||
7.401% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Aggregate Liquidation Preferences | $ 200,000,000 | ||||||||||||||
Preferred Stock, Shares Issued | shares | 8,000,000 | 5,327,500 | 5,327,500 | ||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.401% | 7.401% | 7.401% | ||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | $ 25 | $ 25 | ||||||||||||
Stock Issued During Period, Shares, Purchase of Assets | shares | 2,672,500 | ||||||||||||||
Preferred Stock, Redemption Price Per Share | $ / shares | $ 12.50 | ||||||||||||||
Gain On Purchase Of Shares | $ 31,500,000 | ||||||||||||||
Write Off Of Preferred Share Issuance Cost | $ 1,200,000 | ||||||||||||||
Perpetual Non Cumulative Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Aggregate Liquidation Preferences | $ 270,600,000 | ||||||||||||||
Preferred Stock Issuance Cost | $ 4,400,000 | $ 5,500,000 | |||||||||||||
Preferred Stock, Shares Issued | shares | 11,000,000 | 6,400,000 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.95% | 7.25% | |||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | $ 25 | |||||||||||||
Preferred Stock, Liquidation Preference, Value | $ 275,000,000 | $ 160,000,000 | |||||||||||||
Preferred Stock Spread Variable Dividend Rate | 4.06% | ||||||||||||||
5.950% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Shares Issued | shares | 11,000,000 | 11,000,000 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.95% | ||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | $ 25 | |||||||||||||
7.250% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Shares Issued | shares | 6,400,000 | 6,400,000 | |||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.25% | ||||||||||||||
Preferred Stock, Liquidation Preference Per Share | $ / shares | $ 25 | $ 25 | $ 25 | ||||||||||||
Reclassification from Additional Paid in Capital to Retained Earnings | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Changes In Redemption Value Of Preferred Income Equity Replacement Securities | $ 7,100,000 | $ 7,100,000 | |||||||||||||
Open Markets | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 4,289,857 | ||||||||||||||
Stock Repurchased and Retired During Period, Value | $ 180,900,000 | ||||||||||||||
Stock Repurchased And Retired During Period Average Price Per Share | $ / shares | $ 42.16 | ||||||||||||||
Repurchase Program 2015 | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Stock Repurchase Program, Authorized Amount | $ 500,000,000 | ||||||||||||||
Share Repurchase Agreement Commencement Date | Feb. 5, 2015 | ||||||||||||||
Senior Notes Due December 15, 2020 | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Interest Rate Of Senior Notes | 6.00% | ||||||||||||||
Preferred Stock | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Class of Warrant or Right, Number of Securities Called by Each Warrant or Right | shares | 1 | ||||||||||||||
Subsequent Event | 7.401% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.401% | ||||||||||||||
Subsequent Event | 5.950% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 5.95% | ||||||||||||||
Subsequent Event | 7.250% Preference Shares | |||||||||||||||
Class of Stock [Line Items] | |||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.25% | ||||||||||||||
[1] | The $7.1 million deduction from net income in 2013 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the PIERS, net of the original issuance costs, and the final redemption of the PIERS in the amount of $230.0 million. For more information, please refer to Note 15, “Capital Structure” of these consolidated financial statements. |
Statutory Requirements and Di99
Statutory Requirements and Dividends Restrictions - Summary of Statutory Requirements and Dividends Restrictions (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
U.S. | ||
Required statutory capital and surplus | $ 61.1 | $ 56.9 |
Statutory capital and surplus | 409.9 | 394.1 |
Bermuda | ||
Required statutory capital and surplus | 1,162.6 | 1,097.6 |
Statutory capital and surplus | 2,028.3 | 2,052.3 |
U.K. | ||
Required statutory capital and surplus | 202.2 | 202.2 |
Statutory capital and surplus | $ 934.9 | $ 989.8 |
Statutory Requirements and D100
Statutory Requirements and Dividends Restrictions - Addtional Information (Narrative) (Details) £ in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2015USD ($) | Dec. 31, 2014GBP (£) | |
AUL | ||
Statutory Accounting Practices [Line Items] | ||
Syndicate to maintain funds at Lloyd | $ 429.1 | |
Total funds held by AUL | 433.6 | |
U.K. | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | 150 | £ 0.2 |
Capital contributions reserves | 470 | |
Bermuda | ||
Statutory Accounting Practices [Line Items] | ||
Dividend payment made without regulatory approval | $ 507.1 | |
Dividend Payments Restrictions Schedule, Statutory Capital and Surplus, Percent | 25.00% | |
Statutory Capital and Surplus, Percent Reduction Requiring Approval | 15.00% | |
Percent Amount of Enhanced Capital Required from Statutory Capital and Surplus | 60.00% | |
Percent Warning Level of Amount of Enhanced Capital Required from Statutory Capital and Surplus | 120.00% | |
Bermuda | AUL | ||
Statutory Accounting Practices [Line Items] | ||
Total funds held by AUL | $ 402 |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Rate of contribution on retirement plans of its employees salaries, Maximum | 20.00% | ||
Total contributions by the Company to the retirement plan | $ 14.9 | $ 13.7 | $ 11.7 |
Share-Based Payments - Schedule
Share-Based Payments - Schedule of Number of Names Options Exercised and Number of Shares Issued (Details) - shares | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 100.00% | |||
Options Granted | 3,006,760 | |||
Options Exercised | 3,006,760 | |||
Ordinary Shares Issued | 784,001 | |||
2,002 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 3,006,760 | |||
Options Exercised | 0 | |||
Ordinary Shares Issued | 0 | |||
2,003 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 440,144 | |||
Ordinary Shares Issued | 152,583 | |||
2,004 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 856,218 | |||
Ordinary Shares Issued | 135,321 | |||
2,005 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 303,321 | |||
Ordinary Shares Issued | 56,982 | |||
2,006 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 34,155 | |||
Ordinary Shares Issued | 3,757 | |||
2,007 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 66,759 | |||
Ordinary Shares Issued | 7,381 | |||
2,008 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 20,641 | |||
Ordinary Shares Issued | 3,369 | |||
2,009 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 9,342 | |||
Ordinary Shares Issued | 3,056 | |||
2,010 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 149,895 | |||
Ordinary Shares Issued | 49,538 | |||
2,011 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 761,037 | |||
Ordinary Shares Issued | 255,504 | |||
2,012 | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Options Granted | 0 | |||
Options Exercised | 365,248 | |||
Ordinary Shares Issued | 116,510 | |||
Achievement One | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 5.60% | |||
Achievement One | 2013 Performance Shares | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 5.00% | 5.00% | ||
Share Based Compensation Arrangement By Share Based Payment Award Percentage Of Initial Shares Granted | 33.30% | 33.33% | ||
Minimum | Achievement Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 5.60% | |||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 10.00% | 10.00% | ||
Minimum | Achievement Two | 2013 Performance Shares | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 5.00% | 5.00% | ||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 10.00% | 10.00% | ||
Minimum | Achievement Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 11.10% | |||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 100.00% | |||
Minimum | Achievement Three | 2013 Performance Shares | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 10.00% | 10.00% | ||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 100.00% | |||
Maximum | Achievement Two | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 11.10% | |||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 100.00% | |||
Maximum | Achievement Two | 2013 Performance Shares | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 10.00% | 10.00% | ||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 100.00% | 100.00% | ||
Maximum | Achievement Three | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 22.20% | |||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 200.00% | |||
Maximum | Achievement Three | 2013 Performance Shares | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Achieved and Required Performance Growth, Percentage | 20.00% | 20.00% | ||
Share-based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Eligible for Vesting, Percent | 200.00% | 200.00% |
Share-Based Payments - Informat
Share-Based Payments - Information About Employee Options Outstanding to Purchase Ordinary Shares (Details) - $ / shares | Mar. 16, 2015 | Mar. 05, 2015 | Apr. 22, 2014 | Feb. 06, 2013 | Nov. 01, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Options Granted | 3,006,760 | |||||||
Options Exercised | 3,006,760 | |||||||
Exercise Price | $ 25.04 | $ 25.26 | ||||||
Employee Stock Option | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | ||||||
Performance Share Awards | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | ||||||
Phantom Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | |||||
2003 Option grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options Granted | 3,884,030 | |||||||
Options Forfeited | 712,906 | |||||||
Options Exercised | 3,171,124 | |||||||
Outstanding and Exercisable | 0 | |||||||
Exercise Price | $ 16.2 | |||||||
Weighted Average Fair Value at Grant Date | $ 5.31 | |||||||
2004 Option grants | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options Granted | 500,113 | |||||||
Options Forfeited | 276,082 | |||||||
Options Exercised | 224,031 | |||||||
Outstanding and Exercisable | 0 | |||||||
Exercise Price | $ 24.44 | |||||||
Weighted Average Fair Value at Grant Date | $ 5.74 | |||||||
2006 Option grants February 16 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options Granted | 1,072,490 | |||||||
Options Forfeited | 450,567 | |||||||
Options Exercised | 597,148 | |||||||
Outstanding and Exercisable | 24,775 | |||||||
Exercise Price | $ 23.65 | |||||||
Weighted Average Fair Value at Grant Date | $ 6.99 | |||||||
Remaining Contractual Time | 2 months | |||||||
2007 Option grants May 4 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Options Granted | [1] | 607,635 | ||||||
Options Forfeited | 157,980 | |||||||
Options Exercised | 449,655 | |||||||
Outstanding and Exercisable | 0 | |||||||
Exercise Price | $ 27.28 | |||||||
Weighted Average Fair Value at Grant Date | $ 6.14 | |||||||
[1] | ate for the 2007 options were extended for one year to May 4, 2015. |
Share-Based Payments - Per shar
Share-Based Payments - Per share Weighted Average Fair Value and Related Underlying Assumptions Using Modified Black-Scholes Option Pricing Model by Date of Grant (Details) | 12 Months Ended | |
Dec. 31, 2015$ / shares | ||
October 22, 2007 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 5.76 | |
Risk free interest rate | 4.09% | |
Dividend yield | 2.10% | |
Expected life | 5 years | |
Share price volatility | 20.28% | |
Foreign currency volatility | 0.00% | |
May 4, 2007 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 6.14 | |
Risk free interest rate | 4.55% | |
Dividend yield | 2.20% | |
Expected life | 5 years | |
Share price volatility | 23.76% | |
Foreign currency volatility | 0.00% | |
August 4, 2006 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 4.41 | |
Risk free interest rate | 5.06% | |
Dividend yield | 2.60% | |
Expected life | 5 years | |
Share price volatility | 19.33% | |
Foreign currency volatility | 0.00% | |
February 16, 2006 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 6.99 | |
Risk free interest rate | 4.66% | |
Dividend yield | 2.70% | |
Expected life | 5 years | |
Share price volatility | 35.12% | |
Foreign currency volatility | 0.00% | |
December 23, 2004 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 5.74 | |
Risk free interest rate | 3.57% | |
Dividend yield | 0.50% | |
Expected life | 5 years | |
Share price volatility | 19.68% | |
Foreign currency volatility | 0.00% | |
August 20, 2003 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted Average Fair Value at Grant Date | $ 5.31 | [1] |
Risk free interest rate | 4.70% | [1] |
Dividend yield | 0.60% | [1] |
Expected life | 7 years | [1] |
Share price volatility | 0.00% | |
Foreign currency volatility | 9.40% | [1] |
[1] | he 2003 options had a price volatility of zero. The minimum value method was utilized because the Company was unlisted on the date that the options were issued. Foreign currency volatility of 9.4% was applied as the exercise price was initially in British Pounds and the share price of the Company is in U.S. Dollars. |
Share-Based Payments - Restrict
Share-Based Payments - Restricted Share Units (Details) - Restricted Share Units | 12 Months Ended |
Dec. 31, 2015shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount Granted | 2,171,743 |
Amount Vested | 1,472,780 |
Amount Forfeited | 194,729 |
Amount Outstanding | 504,234 |
2004 - 2012 Grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount Granted | 1,316,810 |
Amount Vested | 1,199,592 |
Amount Forfeited | 117,218 |
Amount Outstanding | 0 |
2013 Grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount Granted | 307,441 |
Amount Vested | 192,172.666666667 |
Amount Forfeited | 34,880 |
Amount Outstanding | 80,388.3333333334 |
2014 Grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount Granted | 259,640 |
Amount Vested | 81,014.6666666667 |
Amount Forfeited | 31,842 |
Amount Outstanding | 146,783.333333333 |
2015 Grants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Amount Granted | 287,852 |
Amount Vested | 0 |
Amount Forfeited | 10,789 |
Amount Outstanding | 277,063 |
Share-Based Payments - Summary
Share-Based Payments - Summary of Performance Shares by Year of Grants (Details) - shares | Mar. 16, 2015 | Mar. 05, 2015 | Apr. 22, 2014 | Jun. 11, 2013 | Apr. 08, 2013 | Feb. 06, 2013 | Nov. 01, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Performance Shares [Member] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | 227,585 | |||||||||
Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | 5,381,809 | |||||||||
Amount Vested | 2,958,543 | |||||||||
Amount Forfeited | 2,156,842 | |||||||||
Amount Outstanding | 266,424 | |||||||||
Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | 250,066 | |||||||||
Amount Vested | 315,389 | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | ||||||||
Phantom Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | 1,121 | 134,530 | 154,512 | 542 | 6,521 | 152,541 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | |||||||
2004 - 2012 Grants | Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | [1] | 4,538,769 | ||||||||
Amount Vested | [1] | 2,461,809.18384267 | ||||||||
Amount Forfeited | [1] | 2,076,959.81615733 | ||||||||
Amount Outstanding | [1] | 0 | ||||||||
2013 Grants | Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | 250,066 | |||||||||
Amount Vested | 203,392.761755636 | |||||||||
Amount Forfeited | 46,673.2382443637 | |||||||||
Amount Outstanding | 0 | |||||||||
2014 Grants | Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | [2] | 315,389 | ||||||||
Amount Vested | [2] | 215,515.816666667 | ||||||||
Amount Forfeited | [2] | 0 | ||||||||
Amount Outstanding | [2] | 99,873.1833333333 | ||||||||
2015 Grants | Performance Share Awards | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Amount Granted | [2] | 277,585 | ||||||||
Amount Vested | [2] | 77,824.74 | ||||||||
Amount Forfeited | [2] | 33,209.26 | ||||||||
Amount Outstanding | [2] | 166,551 | ||||||||
[1] | he amounts vested and forfeited in respect of the 2004 - 2012 performance share awards have been updated to reflect employees leaving after the financial reporting date but before the final vesting date. | |||||||||
[2] | hese balances could increase depending on future performance. |
Share-Based Payments - Summa107
Share-Based Payments - Summary of Performance and Phantom Shares Which are Vested, Roe Achieved and Vested (Details) - shares | Mar. 16, 2015 | Mar. 05, 2015 | Apr. 22, 2014 | Feb. 06, 2013 | Nov. 01, 2012 | Feb. 02, 2012 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
2012 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance Shares Split, year one | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 8.10% | |||||||||
Performance Shares Split, year two | 33.30% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 6.20% | |||||||||
Performance Shares Split, year three | 33.30% | |||||||||
Performance Shares Split, Total | 100.00% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 13.30% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year Three | 43.00% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year One | 21.90% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year Two | 10.50% | |||||||||
Performance Share Actual Vesting Percentage | 75.40% | |||||||||
2013 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance Shares Split, year one | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 6.20% | |||||||||
Performance Shares Split, year two | 33.30% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 13.30% | |||||||||
Performance Shares Split, year three | 33.30% | |||||||||
Performance Shares Split, Total | 100.00% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 10.70% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year Three | 31.20% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year One | 10.50% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year Two | 43.00% | |||||||||
Performance Share Actual Vesting Percentage | 84.70% | |||||||||
2014 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance Shares Split, year one | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 13.30% | |||||||||
Performance Shares Split, year two | 33.30% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 10.70% | |||||||||
Performance Shares Split, year three | 33.30% | |||||||||
Performance Shares Split, Total | 100.00% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year One | 43.00% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year Two | 31.20% | |||||||||
Performance Share Actual Vesting Percentage | 74.20% | |||||||||
2015 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance Shares Split, year one | 33.30% | |||||||||
Performance Shares Split, year two | 33.30% | |||||||||
Performance Shares Split, year three | 33.30% | |||||||||
Performance Shares Split, Total | 100.00% | |||||||||
Performance Share Actual Vesting Percentage At End Of Year One | 31.20% | |||||||||
Performance Share Actual Vesting Percentage | 31.20% | |||||||||
2012 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance share vested | 88,658 | 9,258 | 61,006 | |||||||
Phantom Share Split Percentage Next Twelve Months | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 8.10% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 6.20% | |||||||||
Phantom Share Actual Vesting Percentage Year One | 21.90% | |||||||||
Phantom Share Split Percentage Year Two | 33.30% | |||||||||
Phantom Share Split Percentage Year Three | 33.30% | |||||||||
Phantom Share Split Percentage | 100.00% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 13.30% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||||
Phantom Share Actual Vesting Percentage Year Two | 10.50% | |||||||||
Phantom Share Actual Vesting Percentage Year Three | 43.00% | |||||||||
Phantom Share Actual Vesting Percentage | 75.40% | |||||||||
2013 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Phantom Share Split Percentage Next Twelve Months | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 6.20% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 13.30% | |||||||||
Phantom Share Actual Vesting Percentage Year One | 10.50% | |||||||||
Phantom Share Split Percentage Year Two | 33.30% | |||||||||
Phantom Share Split Percentage Year Three | 33.30% | |||||||||
Phantom Share Split Percentage | 100.00% | |||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 10.70% | |||||||||
Phantom Share Actual Vesting Percentage Year Two | 43.00% | |||||||||
Phantom Share Actual Vesting Percentage Year Three | 31.20% | |||||||||
Phantom Share Actual Vesting Percentage | 84.70% | |||||||||
2014 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Phantom Share Split Percentage Next Twelve Months | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 13.30% | |||||||||
Phantom Share Actual Vesting Percentage Year One | 43.00% | |||||||||
Phantom Share Split Percentage Year Two | 33.30% | |||||||||
Phantom Share Split Percentage Year Three | 33.30% | |||||||||
Phantom Share Split Percentage | 100.00% | |||||||||
Phantom Share Actual Vesting Percentage Year Two | 31.20% | |||||||||
Phantom Share Actual Vesting Percentage | 74.20% | |||||||||
2015 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Phantom Share Split Percentage Next Twelve Months | 33.30% | |||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 10.70% | |||||||||
Phantom Share Actual Vesting Percentage Year One | 31.20% | |||||||||
Phantom Share Split Percentage Year Two | 33.30% | |||||||||
Phantom Share Split Percentage Year Three | 33.30% | |||||||||
Phantom Share Split Percentage | 100.00% | |||||||||
Phantom Share Actual Vesting Percentage | 31.20% | |||||||||
Performance Share Awards | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | ||||||||
Amount Vested | 315,389 | |||||||||
Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | 3 years | 3 years | |||||||
BVPS Growth 2015 | 2014 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Amount Vested | 93,336 | |||||||||
BVPS Growth 2015 | 2015 Performance Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 10.70% | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percent Amount Vested in Period | 93.50% | |||||||||
Amount Vested | 77,824.74 | |||||||||
BVPS Growth 2015 | 2013 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance share vested | 61,266 | |||||||||
BVPS Growth 2015 | 2014 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance share vested | 45,726 | |||||||||
BVPS Growth 2015 | 2015 Phantom Shares | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||||||||
Performance share vested | 38,032 |
Share-Based Payments - Summa108
Share-Based Payments - Summary of Performance Share Activity Under Aspen's 2003 Share Incentive Plan (Details) | 12 Months Ended |
Dec. 31, 2015$ / sharesshares | |
2013 Performance Shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance Share Actual Vesting Percentage At End Of Year Two | 43.00% |
Performance Share Incentive Plan 2003 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares outstanding, beginning of period | shares | 268,418 |
Amount Granted | shares | 277,585 |
Earned | shares | 208,830 |
Amount Forfeited | shares | (70,749) |
Number of shares outstanding, end of period | shares | 266,424 |
Number of shares outstanding ,weighted average grant date fair value beginning of period | $ / shares | $ 25.35 |
Granted, weighted average grant date fair value | $ / shares | 38.92 |
Earned, weighted average grant date fair value | $ / shares | 38.11 |
Forfeited, weighted average grant date fair value | $ / shares | 30.26 |
Number of shares outstanding, weighted average grant date fair value end of period | $ / shares | $ 24.17 |
Share-Based Payments - Amounts
Share-Based Payments - Amounts for Employee Options Granted were Estimated on Date of Grant Using Modified Black-Scholes Option Pricing Model (Details) - Employee Stock Purchase Plan | 12 Months Ended |
Dec. 31, 2015$ / shares | |
November 4, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 3.18 |
Risk free interest rate | 0.48% |
Dividend yield | 2.70% |
Expected life | 3 years |
Share price volatility | 68.00% |
December 4, 2008 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 2.87 |
Risk free interest rate | (0.41%) |
Dividend yield | 3.16% |
Expected life | 2 years |
Share price volatility | 102.00% |
November 23, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 3.76 |
Risk free interest rate | 0.01% |
Dividend yield | 2.28% |
Expected life | 3 years |
Share price volatility | 22.00% |
December 21, 2009 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 3.82 |
Risk free interest rate | 0.04% |
Dividend yield | 2.34% |
Expected life | 2 years |
Share price volatility | 18.00% |
December 22, 2010 grant one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 4.24 |
Risk free interest rate | 0.13% |
Dividend yield | 2.07% |
Expected life | 3 years |
Share price volatility | 14.00% |
December 22, 2010 grant two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 4.46 |
Risk free interest rate | 0.13% |
Dividend yield | 2.07% |
Expected life | 2 years |
Share price volatility | 14.00% |
December 13, 2011 grant one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 4.20 |
Risk free interest rate | 0.05% |
Dividend yield | 2.80% |
Expected life | 3 years |
Share price volatility | 26.20% |
December 13, 2011 grant two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 3.85 |
Risk free interest rate | 0.05% |
Dividend yield | 2.75% |
Expected life | 2 years |
Share price volatility | 26.20% |
March 20, 2013 grant one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 7.79 |
Risk free interest rate | 0.38% |
Dividend yield | 1.88% |
Expected life | 3 years |
Share price volatility | 2.80% |
March 20, 2013 grant two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 5.75 |
Risk free interest rate | 0.25% |
Dividend yield | 1.88% |
Expected life | 2 years |
Share price volatility | 3.20% |
September26, 2014 grant date one | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 6.61 |
Risk free interest rate | 1.06% |
Dividend yield | 1.87% |
Expected life | 3 years |
Share price volatility | 6.20% |
September 26, 2014 grant date two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 6.43 |
Risk free interest rate | 0.58% |
Dividend yield | 1.87% |
Expected life | 2 years |
Share price volatility | 4.00% |
March Twenty Five Thousand Fifteen Grant Date One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 8.17 |
Risk free interest rate | 0.94% |
Dividend yield | 1.78% |
Expected life | 3 years |
Share price volatility | 16.00% |
March Twenty Five Thousand Fifteen Grant Date Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Per share weighted average fair value | $ 7.08 |
Risk free interest rate | 0.60% |
Dividend yield | 1.78% |
Expected life | 2 years |
Share price volatility | 16.00% |
Share-Based Payments - Summa110
Share-Based Payments - Summary of Information About Non-employee Director Options Outstanding to Purchase Ordinary Shares (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 29,222 | 224,141 | 302,460 |
Exercise Price | $ 25.04 | $ 25.26 | |
Non-employee directors - 2006 Option grants (May 25) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 2,435 | ||
Options Exercisable | 2,435 | ||
Exercise Price | $ 21.96 | ||
Fair Value at Grant Date | $ 4.24 | ||
Remaining Contractual Time | 5 months | ||
Non-employee directors - 2007 Option grants (July 30) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options Outstanding | 2,012 | ||
Options Exercisable | 2,012 | ||
Exercise Price | $ 24.76 | ||
Fair Value at Grant Date | $ 4.97 | ||
Remaining Contractual Time | 1 year 7 months |
Share-Based Payments - Non-empl
Share-Based Payments - Non-employee Director Options Granted (Details) - Stock Incentive Plan To Non Employee Directors Plan | 12 Months Ended |
Dec. 31, 2015$ / shares | |
July 30, 2007 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Fair Value at Grant Date | $ 4.97 |
Risk-free interest rate | 4.64% |
Dividend yield | 2.40% |
Expected life | 5 years |
Share price volatility | 19.55% |
May 25, 2006 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Average Fair Value at Grant Date | $ 4.24 |
Risk-free interest rate | 4.85% |
Dividend yield | 2.70% |
Expected life | 5 years |
Share price volatility | 20.05% |
Share-Based Payments - Restr112
Share-Based Payments - Restricted Share Units Issued to Non-employee Directors (Details) - Restricted Share Units | 12 Months Ended |
Dec. 31, 2015shares | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 338,127 |
Amount Vested | 322,488 |
Amount Forfeited | 9,003 |
Amount Outstanding | 6,636 |
Non-Employee Directors — 2013 and prior | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 167,596 |
Amount Vested | 158,593 |
Amount Forfeited | 9,003 |
Amount Outstanding | 0 |
Non-Employee Directors — 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 27,180 |
Amount Vested | 27,180 |
Amount Forfeited | 0 |
Amount Outstanding | 0 |
Non-Employee Directors — 2015 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 27,620 |
Amount Vested | 23,010.6666666667 |
Amount Forfeited | 0 |
Amount Outstanding | 4,609 |
Chairman — 2013 and prior | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 89,987 |
Amount Vested | 89,987 |
Amount Forfeited | 0 |
Amount Outstanding | 0 |
Chairman — 2014 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 13,590 |
Amount Vested | 13,590 |
Amount Forfeited | 0 |
Amount Outstanding | 0 |
Chairman — 2015 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | |
Amount Granted | 12,154 |
Amount Vested | 10,127.3333333333 |
Amount Forfeited | 0 |
Amount Outstanding | 2,027 |
Share-Based Payments - Summa113
Share-Based Payments - Summary of Option Activity and Restricted Share Units Activity (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | |
Option Activity | |||
Outstanding options, beginning of period | 224,141 | 302,460 | |
Exercised and issued | (194,919) | (74,520) | |
Forfeited or expired | (3,799) | ||
Outstanding options, end of period | 224,141 | 302,460 | 29,222 |
Outstanding Options, Weighted Average Exercise Price, beginning of period | $ 24.91 | $ 25.02 | |
Options Exercise Price | 25.04 | 25.26 | |
Options forfeited or expired, weighted average exercise price | 27.28 | ||
Outstanding Options, Weighted Average Exercise Price, end of period | $ 23.59 | $ 24.91 | |
Restricted Share Units | |||
Restricted share unit activity | |||
Amount Granted | 2,171,743 | ||
Amount Vested | (1,472,780) | ||
Amount Forfeited | (194,729) | ||
Number of shares outstanding, end of period | 504,234 | ||
Restricted Share Units | Executive Officer | |||
Restricted share unit activity | |||
Number of shares outstanding, beginning of period | 525,918 | 544,751 | |
Amount Granted | 327,626 | 300,410 | |
Amount Vested | (306,888.333333333) | (291,468) | |
Amount Forfeited | (35,786) | (27,775) | |
Number of shares outstanding, end of period | 510,869.666666667 | 525,918 | |
Number of shares outstanding ,weighted average grant date fair value beginning of period | $ 35.83 | $ 32.13 | |
Granted, weighted average grant date fair value | 41.05 | 38.60 | |
Vested, weighted average grant date fair value | 35.85 | 32.12 | |
Forfeited, weighted average grant date fair value | 39.59 | 36.29 | |
Number of shares outstanding, weighted average grant date fair value end of period | $ 40.40 | $ 35.83 |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Narrative) (Details) | Mar. 16, 2015shares | Mar. 05, 2015shares | Apr. 22, 2014shares | Apr. 06, 2014GBP (£) | Jun. 11, 2013shares | Apr. 08, 2013shares | Feb. 06, 2013shares | Nov. 01, 2012shares | Feb. 02, 2012shares | Feb. 02, 2012shares | Dec. 31, 2009 | Dec. 31, 2003 | Dec. 31, 2015USD ($)agreementshares | Dec. 31, 2015GBP (£)agreementshares | Dec. 31, 2014USD ($)shares | Dec. 31, 2013USD ($)shares | Dec. 31, 2012shares | Dec. 31, 2011shares | Dec. 31, 2007shares | Dec. 31, 2006shares | Dec. 31, 2004shares |
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Options exercised | 194,919 | 194,919 | 74,520 | ||||||||||||||||||
Restricted share units grant to employees, time period | 7 years | 7 years | |||||||||||||||||||
Intrinsic value of options | $ | $ 4,300,000 | $ 1,500,000 | $ 17,200,000 | ||||||||||||||||||
Additional performance shares granted | 10,006 | ||||||||||||||||||||
Shares Issued | 54,940 | 54,940 | 11,821 | 38,915 | |||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | 100.00% | |||||||||||||||||||
Percentage of shares eligible for vesting | 100.00% | 100.00% | |||||||||||||||||||
Purchase Price Percentage Of Fair Market Value | 85.00% | 85.00% | |||||||||||||||||||
Increase In Company's Share Price, Percent | 28.80% | ||||||||||||||||||||
Vesting Adjustment Due To Share Price Increase, Percent | 31.60% | ||||||||||||||||||||
Employee Stock Option | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||||||||||||
Contract period | 10 years | 10 years | |||||||||||||||||||
Exercise period | 7 years | 7 years | |||||||||||||||||||
Options exercised | 189,215 | 189,215 | 84,018 | ||||||||||||||||||
Performance Share Awards | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
Compensation cost | $ | $ 6,500,000 | $ 8,900,000 | |||||||||||||||||||
Amount Granted | 250,066 | ||||||||||||||||||||
Amount Vested | 315,389 | ||||||||||||||||||||
Investor Options | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Number of arrangements under options and equity incentive plans | agreement | 3 | 3 | |||||||||||||||||||
International Employee Share Purchase Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Employee savings under ESPP | $ | $ 500 | ||||||||||||||||||||
Employee contribution period | 2 years | 2 years | |||||||||||||||||||
Holding period | 1 year | 1 year | |||||||||||||||||||
Share Save Scheme | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Employee savings under ESPP | £ | £ 500 | £ 250 | |||||||||||||||||||
Employee contribution period | 3 years | 3 years | |||||||||||||||||||
Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||||||||||||
Compensation cost | $ | $ 4,300,000 | $ 6,100,000 | $ 1,500,000 | ||||||||||||||||||
Amount Granted | 1,121 | 134,530 | 154,512 | 542 | 6,521 | 152,541 | |||||||||||||||
Fair value adjustment on compensation cost | $ | 3,200,000 | 2,900,000 | 1,400,000 | ||||||||||||||||||
Tax credit recognized by the company | $ | (1,200,000) | (2,200,000) | 400,000 | ||||||||||||||||||
Employee Share Purchase Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Compensation cost | $ | 300,000 | 1,300,000 | |||||||||||||||||||
Total tax credit | $ | $ 100,000 | 100,000 | 100,000 | ||||||||||||||||||
Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 2 years | 2 years | |||||||||||||||||||
Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
Non-employee directors - 2007 Option grants (July 30) | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
Investor Options | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | 3 years | ||||||||||||||||||
Options cancelled | 242,643 | ||||||||||||||||||||
Number of Options vested | 476,250 | 695,643 | |||||||||||||||||||
2013 Share Incentive Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Number of Shares Available for Grant | 2,845,683 | 2,845,683 | |||||||||||||||||||
2003 Share Incentive Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Number of Shares Available for Grant | 595,683 | 595,683 | |||||||||||||||||||
2003 Option grants | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Foreign currency volatility | 9.40% | 9.40% | |||||||||||||||||||
Portion of grant eligible for time based vesting | 65.00% | ||||||||||||||||||||
Percentage of performance Shares vested | 20.00% | ||||||||||||||||||||
Portion of grant eligible for performance based vesting | 35.00% | ||||||||||||||||||||
2012 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Contract period | 3 years | ||||||||||||||||||||
Amount Granted | 334,125 | ||||||||||||||||||||
Portion of grant eligible for vesting | 33.33% | ||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 13.30% | 13.30% | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 6.20% | 6.20% | |||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 8.10% | 8.10% | |||||||||||||||||||
2013 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 10.70% | 10.70% | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 13.30% | 13.30% | |||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 6.20% | 6.20% | |||||||||||||||||||
2014 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 10.70% | 10.70% | |||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 13.30% | 13.30% | |||||||||||||||||||
Employee Share Purchase Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Compensation cost | $ | $ 300,000 | ||||||||||||||||||||
Restricted Share Units | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Compensation cost | $ | 8,700,000 | 9,300,000 | 7,600,000 | ||||||||||||||||||
Total tax credit | $ | 1,800,000 | 2,200,000 | 1,900,000 | ||||||||||||||||||
Fair value adjustment | $ | $ 600,000 | 3,100,000 | 400,000 | ||||||||||||||||||
Amount Granted | 2,171,743 | 2,171,743 | |||||||||||||||||||
Amount Vested | 1,472,780 | 1,472,780 | |||||||||||||||||||
Compensation cost | $ | $ 1,800,000 | 400,000 | 1,300,000 | ||||||||||||||||||
Tax charge recognized, Total | $ | $ 0 | $ 0 | 0 | ||||||||||||||||||
Non Employee Equity Incentive Plan | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
Contract period | 10 years | 10 years | |||||||||||||||||||
Options granted | 0 | 0 | 0 | ||||||||||||||||||
Options exercised | 0 | 0 | 0 | ||||||||||||||||||
Compensation cost | $ | $ 0 | $ 0 | $ 0 | ||||||||||||||||||
2012 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | ||||||||||||||||||||
Amount Granted | 278,143 | 0 | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 13.30% | 13.30% | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 6.20% | 6.20% | |||||||||||||||||||
Performance share vested | 88,658 | 9,258 | 61,006 | ||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 8.10% | 8.10% | |||||||||||||||||||
Performance Share Awards | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Total tax credit | $ | $ 1,500,000 | $ 2,400,000 | $ 2,000,000 | ||||||||||||||||||
Compensation cost | $ | $ 8,100,000 | ||||||||||||||||||||
2013 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 10.70% | 10.70% | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 13.30% | 13.30% | |||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 6.20% | 6.20% | |||||||||||||||||||
2014 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 13.30% | 13.30% | |||||||||||||||||||
Achievement One | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.60% | 5.60% | |||||||||||||||||||
Achievement One | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 1 year | 1 year | |||||||||||||||||||
Achievement One | 2013 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.00% | 5.00% | |||||||||||||||||||
Portion of grant eligible for vesting | 33.30% | 33.30% | 33.33% | ||||||||||||||||||
Achievement One | 2014 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.20% | ||||||||||||||||||||
Portion of grant eligible for vesting | 33.30% | ||||||||||||||||||||
Achievement Two | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.60% | 5.60% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 10.00% | 10.00% | 10.00% | ||||||||||||||||||
Achievement Two | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 11.10% | 11.10% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | 100.00% | |||||||||||||||||||
Achievement Two | 2013 Performance Shares | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.00% | 5.00% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 10.00% | 10.00% | |||||||||||||||||||
Achievement Two | 2013 Performance Shares | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 10.00% | 10.00% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | 100.00% | |||||||||||||||||||
Achievement Two | 2014 Performance Shares | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 5.20% | ||||||||||||||||||||
Achievement Two | 2014 Performance Shares | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 10.40% | ||||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | ||||||||||||||||||||
Achievement Three | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 11.10% | 11.10% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | 100.00% | |||||||||||||||||||
Achievement Three | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Vesting period | 3 years | 3 years | |||||||||||||||||||
ROE achieved | 22.20% | 22.20% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 200.00% | 200.00% | |||||||||||||||||||
Achievement Three | 2013 Performance Shares | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 10.00% | 10.00% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | ||||||||||||||||||||
Achievement Three | 2013 Performance Shares | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 20.00% | 20.00% | |||||||||||||||||||
Percentage of performance shares eligible for vesting | 200.00% | 200.00% | |||||||||||||||||||
Achievement Three | 2014 Performance Shares | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 10.40% | ||||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | ||||||||||||||||||||
Achievement Three | 2014 Performance Shares | Maximum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
ROE achieved | 20.80% | ||||||||||||||||||||
Percentage of performance shares eligible for vesting | 200.00% | ||||||||||||||||||||
Achievement Three | 2012 Phantom Shares | Minimum | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Percentage of performance shares eligible for vesting | 100.00% | ||||||||||||||||||||
BVPS Growth 2012 | 2012 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 62,930 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percent Amount Vested in Period | 65.80% | ||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 8.10% | ||||||||||||||||||||
BVPS Growth 2013 | 2012 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 33,012 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percent Amount Vested in Period | 129.00% | 129.00% | 31.60% | ||||||||||||||||||
BVPS Growth 2013 | 2013 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 25,001 | ||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Three | 13.30% | 13.30% | |||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 6.20% | ||||||||||||||||||||
BVPS Growth 2013 | 2013 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Performance share vested | 16,812 | ||||||||||||||||||||
BVPS Growth 2014 | 2013 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 102,152 | ||||||||||||||||||||
BVPS Growth 2014 | 2014 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 122,056 | ||||||||||||||||||||
BVPS Growth 2014 | 2012 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 145,425 | ||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percent Amount Vested in Period | 129.00% | ||||||||||||||||||||
BVPS Growth 2014 | 2014 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 13.30% | 13.30% | |||||||||||||||||||
BVPS Growth 2014 | 2014 Performance Shares | Performance Share Awards | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Fair Value Investments Entities That Calculate Net Asset Value Per Share Percent Equity Securities Year Two | 129.00% | 129.00% | |||||||||||||||||||
BVPS Growth 2014 | 2013 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Performance share vested | 64,357 | ||||||||||||||||||||
BVPS Growth 2014 | 2014 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Performance share vested | 59,796 | ||||||||||||||||||||
BVPS Growth 2015 | 2013 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 74,818 | 74,818 | |||||||||||||||||||
BVPS Growth 2015 | 2014 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 93,336 | 93,336 | |||||||||||||||||||
BVPS Growth 2015 | 2015 Performance Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Amount Vested | 77,824.74 | 77,824.74 | |||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Percent Amount Vested in Period | 93.50% | ||||||||||||||||||||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share, Percent Equity Securities | 10.70% | 10.70% | |||||||||||||||||||
BVPS Growth 2015 | 2013 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Performance share vested | 61,266 | 61,266 | |||||||||||||||||||
BVPS Growth 2015 | 2014 Phantom Shares | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Performance share vested | 45,726 | 45,726 | |||||||||||||||||||
Predecessor | |||||||||||||||||||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||||||||||||||||||
Subscription price increase percentage | 5.00% | 5.00% |
Intangible Assets - Summary of
Intangible Assets - Summary of Changes in Intangible Assets (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Beginning of the period | $ 18,200,000 | $ 18,400,000 |
Amortization | 0 | (200,000) |
End of the period | 18,200,000 | 18,200,000 |
Trade Mark | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Beginning of the period | 1,600,000 | 1,600,000 |
Amortization | 0 | 0 |
End of the period | 1,600,000 | 1,600,000 |
Insurance Licenses | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Beginning of the period | 16,600,000 | 16,600,000 |
Amortization | 0 | 0 |
End of the period | 16,600,000 | 16,600,000 |
Other | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Beginning of the period | 0 | 200,000 |
Amortization | (200,000) | |
End of the period | $ 0 | $ 0 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Narrative) (Details) - USD ($) | Apr. 05, 2005 | Dec. 31, 2015 | Dec. 31, 2010 | Dec. 31, 2014 | Dec. 31, 2013 |
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Aggregate consideration for sale and purchase agreement | $ 1,600,000 | $ 4,800,000 | |||
Value of the asset | $ 18,200,000 | $ 18,200,000 | $ 18,400,000 | ||
Acquired licenses | 3,600,000 | ||||
Fair value of tangible and financial assets, net | 1,200,000 | ||||
Asset amortization period | 5 years | ||||
Trade Mark | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Value of the asset | $ 1,600,000 | 1,600,000 | 1,600,000 | ||
Insurance Licenses | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Value of the asset | 16,600,000 | 16,600,000 | 16,600,000 | ||
Insurance Licenses | AAIC | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Acquired licenses | 10,000,000 | ||||
Insurance Licenses | Aspen Specialty | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Acquired licenses | 4,500,000 | ||||
Insurance Licenses | Aspen U.K. | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Acquired licenses | 2,100,000 | ||||
Intangible Asset: Renewal Rights and Distribution Channels | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Acquired licenses | 2,200,000 | ||||
Intangible Asset: Lock-in Period | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Acquired licenses | $ 1,400,000 | ||||
Other | |||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||
Value of the asset | $ 0 | $ 0 | $ 200,000 |
Commitments and Contingencies -
Commitments and Contingencies - Schedule of Company's Restricted Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | $ 4,395.1 | $ 4,151.4 | |
Total as percent of investable assets(2) | 49.60% | 48.00% | |
Affiliated transactions | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | $ 1,421 | $ 1,094.3 | |
Third party | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | 2,265.6 | 2,268.2 | |
Letters of credit / guarantees | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | [1] | $ 708.5 | $ 788.9 |
[1] | As of December 31, 2015, the Company had pledged funds of $697.6 million and £7.1 million (December 31, 2014 — $774.6 million and £9.2 million) as collateral for the secured letters of credit. |
Commitments and Contingencie118
Commitments and Contingencies - Amounts Outstanding under Operating Leases (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Leases [Abstract] | ||
2,015 | $ 10.5 | $ 13.4 |
2,016 | 14.4 | 9.3 |
2,017 | 13.9 | 8.5 |
2,018 | 12.4 | 7.3 |
2,019 | 8.7 | 6.4 |
Later Years | 88.9 | 1.5 |
Total | $ 148.8 | $ 46.4 |
Commitments and Contingencie119
Commitments and Contingencies - Additional Information (Narrative) (Details) £ in Millions, SGD in Millions, SFr in Millions, CAD in Millions, AUD in Millions | 12 Months Ended | |||||||||||
Dec. 31, 2015USD ($)Investment | Dec. 31, 2014USD ($) | Dec. 31, 2015GBP (£)Investment | Dec. 31, 2015SGDInvestment | Dec. 31, 2015AUDInvestment | Dec. 31, 2015CADInvestment | Dec. 31, 2015CHF (SFr)Investment | Dec. 31, 2014GBP (£) | Dec. 31, 2014SGD | Dec. 31, 2014AUD | Dec. 31, 2014CAD | Dec. 31, 2014CHF (SFr) | |
Restricted Cash And Collateral [Line Items] | ||||||||||||
Securities and cash as collateral secured letters of credit | $ 697,600,000 | $ 774,600,000 | £ 7.1 | £ 9.2 | ||||||||
Total as percent of investable assets(2) | 49.60% | 48.00% | ||||||||||
Cash, Cash Equivalents, and Short-term Investments | $ 8,800,000,000 | $ 8,600,000,000 | ||||||||||
Assets Held by Insurance Regulators | $ 436,800,000 | 414,800,000 | ||||||||||
Minimum capital required | £ | £ 0.4 | £ 0.4 | ||||||||||
Percentage Of Reinsurance Liabilities | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Reinsurance Liabilities | $ 1,105,700,000 | 1,071,400,000 | ||||||||||
Assets Held-in-trust | 1,334,900,000 | 1,322,500,000 | AUD 139.2 | AUD 141.8 | ||||||||
Regulatory Deposits | 6,000,000 | 6,200,000 | ||||||||||
Deposit With States | 6,200,000 | 7,200,000 | ||||||||||
Operating Leases, Rent Expense | 18,600,000 | 16,700,000 | ||||||||||
Depreciation, Depletion and Amortization, Nonproduction | 7,000,000 | 8,200,000 | ||||||||||
Accumulated Depreciation | $ 104,600,000 | 97,600,000 | ||||||||||
Number of investments | Investment | 2 | 2 | 2 | 2 | 2 | 2 | ||||||
Interest Rate Swaps | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Collateral provided to counterparties as security for the Company's net liability position | $ 10,100,000 | 22,300,000 | ||||||||||
Us Multi Beneficiary Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Minimum Trust Fund | 20,000,000 | 20,000,000 | ||||||||||
Assets Held-in-trust | 1,211,300,000 | 1,027,500,000 | ||||||||||
Us Surplus Lines Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Assets Held-in-trust | 188,500,000 | 171,400,000 | ||||||||||
Us Credit And Surety Lines Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Assets Held-in-trust | 0 | $ 0 | ||||||||||
Canadian Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Assets Held-in-trust | CAD | CAD 332.9 | CAD 345 | ||||||||||
Swiss Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Assets Held-in-trust | SFr | SFr 15.3 | SFr 12.3 | ||||||||||
Singapore Trust Fund | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Assets Held-in-trust | SGD | SGD 103.3 | SGD 72.6 | ||||||||||
Bermuda | ||||||||||||
Restricted Cash And Collateral [Line Items] | ||||||||||||
Percentage Of Reinsurance Liabilities | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | ||||||
Reinsurance Liabilities | $ 889,300,000 | $ 694,800,000 |
Concentration of Credit Risk -
Concentration of Credit Risk - Schedule Of Gross Written Premium From Major Brokers (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Investment Holdings [Line Items] | ||||
Gross written premiums, percentage | 100.00% | 100.00% | 100.00% | |
Gross written premiums | $ 2,997.3 | $ 2,902.7 | $ 2,646.7 | |
Aon Corporation | ||||
Investment Holdings [Line Items] | ||||
Gross written premiums, percentage | 18.70% | 17.80% | 16.80% | |
Marsh & McLennan Companies, Inc. | ||||
Investment Holdings [Line Items] | ||||
Gross written premiums, percentage | 15.40% | 15.10% | 15.00% | |
Willis Group Holdings, Ltd. | ||||
Investment Holdings [Line Items] | ||||
Gross written premiums, percentage | 14.50% | 13.70% | 14.40% | |
Others | ||||
Investment Holdings [Line Items] | ||||
Gross written premiums, percentage | [1] | 51.40% | 53.40% | 53.80% |
[1] | No other individual broker accounted for more than 10% of total gross written premiums. |
Concentration of Credit Risk121
Concentration of Credit Risk - Additional Information (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2013 | |
Reinsurance [Line Items] | |||
Unpaid losses | $ 350,000,000 | $ 354,800,000 | $ 332,700,000 |
Underwriting premiums | 1,011,700,000 | 1,115,600,000 | |
Due for settlement | $ 2,300,000 | ||
Settlement period | more than one year | ||
Premiums Receivable, Allowance for Doubtful Accounts | $ 4,300,000 | $ 2,600,000 | |
Allowable holdings of a single issue or issuer, percentage | 2.00% | ||
Percentage Of Written Premium Major Broker Accounted Minimum | 10.00% | ||
Lloyd's | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | 20.00% | ||
Munich Re | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | 20.40% | ||
Arch Re | |||
Reinsurance [Line Items] | |||
Reinsurance recoverables | 9.20% |
Reclassifications from Accum122
Reclassifications from Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income Reclassification (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Foreign currency translation adjustments: | |||
Foreign currency translation adjustments, before tax | $ 10.9 | $ 7.9 | $ 0 |
Realized derivatives: | |||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 1.2 | 0.2 | $ 0.7 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Available for sale securities: | |||
Realized gain on sale of securities | 43.6 | 13.9 | |
Realized (losses) on sale of securities | (5.7) | (6.2) | |
Net realized and unrealized investment gains reclassified to the statement of operations, gross of tax | 37.9 | 7.7 | |
Income tax on net realized gains of securities | 1.2 | 0.2 | |
Net realized and unrealized investment gains reclassified to the statement of operations, net of tax | 36.7 | 7.5 | |
Realized derivatives: | |||
Net realized (losses) on settled derivatives | (4.9) | (0.3) | |
Amortization of long-term debt associated expenses, net of tax | (4.9) | (0.3) | |
Total reclassifications from AOCI to the statement of operations, net of income tax | $ 31.8 | $ 7.2 |
Credit Facility and Long-Ter123
Credit Facility and Long-Term Debt - Summary of Contractual Obligations Under Long-term Debts (Details) $ in Millions | Dec. 31, 2015USD ($) |
Debt Disclosure [Abstract] | |
Less than 1 year | $ 0 |
1-3 years | 0 |
3-5 years | 250 |
More than 5 years | 300 |
Total | $ 550 |
Credit Facility and Long-Ter124
Credit Facility and Long-Term Debt - Additional Information (Narrative) (Details) | Dec. 16, 2013USD ($) | Nov. 13, 2013USD ($) | Jun. 12, 2013USD ($) | Dec. 15, 2010USD ($) | Jul. 30, 2010USD ($) | Aug. 16, 2004USD ($) | Jul. 30, 2010USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 27, 2013USD ($) | Aug. 21, 2013USD ($) | Jul. 30, 2012USD ($)tranche | Aug. 12, 2011USD ($) | Feb. 28, 2011USD ($) | Apr. 29, 2009USD ($) | Oct. 29, 2008USD ($) |
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 200,000,000 | |||||||||||||||||
Line of credit facility Increasable capacity | $ 100,000,000 | |||||||||||||||||
Line of credit facility borrowings outstanding | $ 0 | |||||||||||||||||
Minimum consolidated tangible net worth under credit facility | $ 2,428,600,000 | |||||||||||||||||
Percentage of consolidated net income | 50.00% | |||||||||||||||||
Percentage of aggregate net cash proceeds from the issuance of capital stock | 50.00% | |||||||||||||||||
Percentage of consolidated leverage ratio permitted | 35.00% | |||||||||||||||||
Total net realized and unrealized investment gains recorded in the statement of operations | $ 17,000,000 | $ 31,600,000 | $ 36,400,000 | |||||||||||||||
Silverton 2,014 | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Loans issued | $ 65,000,000 | |||||||||||||||||
Silverton Loan Notes | Silverton 2016 | Aspen Holdings | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Maximum exposure to loss | 25,000,000 | |||||||||||||||||
Silverton Loan Notes | Silverton 2014 | Aspen Holdings | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Maximum exposure to loss | 200,000 | |||||||||||||||||
Silverton Loan Notes | Silverton 2015 | Aspen Holdings | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Maximum exposure to loss | 19,200,000 | |||||||||||||||||
Barclays Bank Plc | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 100,000,000 | $ 200,000,000 | ||||||||||||||||
Line of credit facility borrowings outstanding | 5,000,000 | 18,900,000 | ||||||||||||||||
Citibank Europe | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 1,050,000,000 | $ 550,000,000 | $ 450,000,000 | |||||||||||||||
Outstanding collateralized letters of credit facility | 463,600,000 | 463,600,000 | ||||||||||||||||
Silverton 2,016 | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Loans issued | 125,000,000 | |||||||||||||||||
Loan notes issued by third parties | 100,000,000 | 100,000,000 | ||||||||||||||||
Three Year Revolving Credit Facility | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Debt Instrument, Term | 3 years | |||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 280,000,000 | $ 280,000,000 | ||||||||||||||||
Line of credit facility Increasable capacity | $ 75,000,000 | |||||||||||||||||
Citibank Europe plc | Letters of credit / guarantees | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 575,000,000 | $ 950,000,000 | ||||||||||||||||
Line of Credit Facility, Number of Maturity Tranches | tranche | 2 | |||||||||||||||||
Citibank Europe plc | Letter of Credit, Tranche I | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 650,000,000 | |||||||||||||||||
Citibank Europe plc | Letter of Credit, Tranche II | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Revolving credit facility, credit agreement maximum limit | $ 300,000,000 | |||||||||||||||||
Citibank Europe plc | London Interbank Offered Rate (LIBOR) | Letters of credit / guarantees | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.00% | |||||||||||||||||
Senior Notes | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Loans issued | $ 300,000,000 | $ 250,000,000 | $ 250,000,000 | |||||||||||||||
Interest rate of senior notes | 4.65% | 6.00% | 6.00% | |||||||||||||||
Net proceeds from senior notes | $ 299,700,000 | $ 247,500,000 | $ 249,300,000 | |||||||||||||||
Total net realized and unrealized investment gains recorded in the statement of operations | $ 9,300,000 | |||||||||||||||||
Amount of indebtedness subject to default in payment | 50,000,000 | |||||||||||||||||
Annual interest payable | 29,000,000 | |||||||||||||||||
Silverton 2,014 | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Loans issued | 65,000,000 | 65,000,000 | ||||||||||||||||
Loan notes issued by third parties | 50,000,000 | $ 50,000,000 | ||||||||||||||||
Silverton 2,015 | ||||||||||||||||||
Line Of Credit Facility Covenant Compliance [Line Items] | ||||||||||||||||||
Loans issued | 85,000,000 | |||||||||||||||||
Loan notes issued by third parties | $ 89,800,000 | $ 70,000,000 |
Unaudited Quarterly Financia125
Unaudited Quarterly Financial Data - Summary of Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Net earned premium | $ 629.7 | $ 640.6 | $ 609.4 | $ 593.6 | $ 612.2 | $ 610.4 | $ 616.2 | $ 566.5 | $ 572.6 | $ 544.3 | $ 544 | $ 510.9 | $ 2,473.3 | $ 2,405.3 | $ 2,171.8 | |||||
Net investment income | 46.4 | 45 | 46.7 | 47.4 | 46.7 | 48 | 46.1 | 49.5 | 47.2 | 45 | 45.9 | 48.3 | 185.5 | 190.3 | 186.4 | |||||
Realized and unrealized investment gains | 12.9 | 10.7 | 13.5 | 57.4 | (7.3) | [1] | 1.1 | [1] | 34.6 | [1] | 17.9 | [1] | 2.6 | 23.6 | 14.4 | 16.3 | 94.5 | 46.3 | [1] | 56.9 |
Other income | (0.3) | (2.3) | (1.2) | 3.9 | (0.3) | 1 | 3.2 | 0.6 | 4.6 | 1.6 | 0.9 | 1.1 | 0.1 | 4.5 | 8.2 | |||||
Total Revenues | 688.7 | 694 | 668.4 | 702.3 | 651.3 | 660.5 | 700.1 | 634.5 | 627 | 614.5 | 605.2 | 576.6 | 2,753.4 | 2,646.4 | 2,423.3 | |||||
Losses and loss adjustment expenses | 334 | 365.6 | 360.5 | 306.1 | 339.6 | 342.7 | 337.1 | 288.1 | 331.4 | 290.2 | 333.4 | 268.7 | 1,366.2 | 1,307.5 | 1,223.7 | |||||
Amortization of deferred policy acquisition costs | 118.2 | 132 | 114.1 | 119.3 | 114.8 | 115.5 | 108.9 | 112 | 99.7 | 110.5 | 107.2 | 104.6 | 483.6 | 451.2 | 422 | |||||
General, administrative and corporate expenses | 125.9 | 100.5 | 95.4 | 102.2 | 121.5 | 119.8 | 108.8 | 95.6 | 94.9 | 98.9 | 87.7 | 86.6 | 424 | 445.7 | 368.1 | |||||
Interest on long-term debt | 7.4 | 7.4 | 7.3 | 7.4 | 7.4 | 7.4 | 7.3 | 7.4 | 9.5 | 7.7 | 7.8 | 7.7 | 29.5 | 29.5 | 32.7 | |||||
Change in fair value of derivatives | (2.5) | (10.1) | (2) | 7.8 | 6.6 | 5.1 | 4.6 | (1.1) | (1.8) | (6.6) | 2.9 | 4.2 | (6.8) | 15.2 | (1.3) | |||||
Change in fair value of loan notes issued by variable interest entities | 5.3 | 8.3 | 3.3 | 2.9 | 4.1 | 8.5 | 2.6 | 3.4 | 19.8 | 18.6 | 0 | |||||||||
Realized and unrealized investment losses | (17.7) | 51.9 | 28.8 | 14.5 | (14.1) | [1] | 21.2 | [1] | 3.3 | [1] | 4.3 | [1] | (7.5) | 5.9 | 21 | 1.1 | 77.5 | 14.7 | [1] | 20.5 |
Net realized and unrealized foreign exchange (gains)/losses | (5) | 8.4 | 11.6 | 6.4 | 3.9 | [1] | 1.3 | [1] | (10.7) | [1] | (0.1) | [1] | 6.1 | (2.4) | 4.1 | 5.4 | 21.4 | (5.6) | [1] | 13.2 |
Other expenses | (0.1) | 0 | (1.8) | 2.6 | (0.5) | 0.3 | 1.2 | 0.7 | 1.1 | 0 | 0 | 0.6 | 0.7 | 1.7 | 1.7 | |||||
Total expenses | 565.5 | 664 | 617.2 | 569.2 | 583.3 | 621.8 | 563.1 | 510.3 | 533.4 | 504.2 | 564.1 | 478.9 | 2,415.9 | 2,278.5 | 2,080.6 | |||||
Income from operations before income tax | 123.2 | 30 | 51.2 | 133.1 | 68 | 38.7 | 137 | 124.2 | 93.6 | 110.3 | 41.1 | 97.7 | 337.5 | 367.9 | 342.7 | |||||
Income tax expense | (5.3) | (1.8) | (2.2) | (5.1) | (0.8) | (1.3) | (6.2) | (3.8) | (3.6) | (2.9) | (1) | (5.9) | (14.4) | (12.1) | (13.4) | |||||
Net income | $ 117.9 | $ 28.2 | $ 49 | $ 128 | $ 67.2 | $ 37.4 | $ 130.8 | $ 120.4 | $ 90 | $ 107.4 | $ 40.1 | $ 91.8 | $ 323.1 | $ 355.8 | $ 329.3 | |||||
Ordinary shares: | ||||||||||||||||||||
Basic weighted average ordinary shares | 60,784,832 | 60,779,295 | 61,408,633 | 62,159,303 | 62,206,260 | 65,116,463 | 65,447,128 | 65,289,351 | 65,593,669 | 66,716,202 | 66,191,426 | 68,854,286 | 61,287,884 | 64,536,491 | 66,872,048 | |||||
Diluted weighted average ordinary shares | 62,176,505 | 62,155,125 | 62,896,907 | 63,532,662 | 63,605,298 | 66,513,009 | 66,700,368 | 66,565,890 | 67,051,993 | 68,561,515 | 69,291,324 | 72,452,705 | 62,687,503 | 65,872,949 | 69,417,903 | |||||
Weighted average number of ordinary share and share equivalents | ||||||||||||||||||||
Basic, dollars per share | $ 1.78 | $ 0.30 | $ 0.64 | $ 1.91 | $ 0.92 | $ 0.43 | $ 1.85 | $ 1.70 | $ 1.23 | $ 1.47 | $ 0.38 | $ 1.21 | $ 4.64 | $ 4.92 | $ 4.29 | |||||
Diluted, dollars per share | $ 1.75 | $ 0.30 | $ 0.62 | $ 1.87 | $ 0.90 | $ 0.42 | $ 1.82 | $ 1.66 | $ 1.21 | $ 1.43 | $ 0.36 | $ 1.15 | $ 4.54 | $ 4.82 | $ 4.14 | |||||
[1] | (1) Adjusted for a representation of foreign exchange in relation to investment securities from realized and unrealized exchange gains/(losses) to realized and |
Subsequent Events - Additional
Subsequent Events - Additional Information (Narrative) (Details) - USD ($) $ in Millions | Jan. 21, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Subsequent Event [Line Items] | ||||
Gross written premiums | $ 2,997.3 | $ 2,902.7 | $ 2,646.7 | |
AgriLogic | ||||
Subsequent Event [Line Items] | ||||
Gross written premiums | $ 185 | |||
AgriLogic | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Percentage of interests acquired | 100.00% | |||
Initial purchase price | $ 53 |
Schedule II - Condensed Fina127
Schedule II - Condensed Financial Information of Registrant Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 15, 2006 |
ASSETS | ||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of ($243.3 and $176.7) | $ 1,099.5 | $ 1,178.5 | $ 1,293.6 | $ 1,463.6 | ||
Other assets | 4.1 | 13.6 | ||||
Total assets | 11,048.8 | 10,716.3 | ||||
LIABILITIES | ||||||
Accrued expenses and other payables | 343.8 | 356.9 | ||||
Long-term debt | 549.2 | 549.1 | ||||
Total liabilities | 7,628.9 | 7,297 | ||||
SHAREHOLDERS’ EQUITY | ||||||
60,918,373 shares of par value 0.15144558¢ each (December 31, 2014 — 62,017,368) | 0.1 | 0.1 | ||||
Additional paid in capital | 1,075.3 | 1,134.3 | ||||
Retained earnings | 2,283.6 | 2,050.1 | ||||
Non-controlling interest | 1.3 | 0.5 | ||||
Total accumulated other comprehensive income | 59.6 | 234.3 | $ 219.1 | |||
Total liabilities and shareholders’ equity | $ 11,048.8 | $ 10,716.3 | ||||
Ordinary shares, issued | 60,918,373 | 62,017,368 | 65,546,976 | |||
Ordinary shares, par value | $ 0.15144558 | $ 0.15144558 | ||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | ||||
5.950% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 11,000,000 | 11,000,000 | ||||
Preference shares, rate | 5.95% | 5.95% | ||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | ||||
7.401% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 5,327,500 | 5,327,500 | 8,000,000 | |||
Preference shares, rate | 7.401% | 7.401% | ||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | ||||
7.250% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 6,400,000 | 6,400,000 | ||||
Preference shares, rate | 7.25% | 7.25% | ||||
Preference shares, par value | $ 0.15144558 | $ 0.15144558 | ||||
Parent | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Short-term Investments | $ 25 | $ 0 | ||||
ASSETS | ||||||
Cash and cash equivalents (including cash within consolidated variable interest entities of ($243.3 and $176.7) | 110.5 | 86.8 | $ 94.2 | $ 192.3 | ||
Investments in subsidiaries | 3,439.4 | 3,368.5 | ||||
Other investments | 0.8 | 8.7 | ||||
Eurobond issued by subsidiary | 480 | 573.8 | ||||
Long-term debt issued by Silverton | 44.5 | 35.6 | ||||
Intercompany funds due from affiliates | 5.3 | 43.6 | ||||
Other assets | 9 | 0 | ||||
Total assets | 4,114.5 | 4,117 | ||||
LIABILITIES | ||||||
Accrued expenses and other payables | 15.7 | 52.5 | ||||
Intercompany funds due to affiliates | 129.7 | 96.1 | ||||
Long-term debt | 549.2 | 549.1 | ||||
Total liabilities | 694.6 | 697.7 | ||||
SHAREHOLDERS’ EQUITY | ||||||
60,918,373 shares of par value 0.15144558¢ each (December 31, 2014 — 62,017,368) | 0.1 | 0.1 | ||||
Additional paid in capital | 1,075.3 | 1,134.3 | ||||
Retained earnings | 2,283.6 | 2,050.1 | ||||
Non-controlling interest | 1.3 | 0.5 | ||||
Unrealized gains on investments | 60.2 | 165.4 | ||||
Loss on derivatives | (1.2) | (3.8) | ||||
Gains on foreign currency translation | 0.6 | 72.7 | ||||
Total accumulated other comprehensive income | 59.6 | 234.3 | ||||
Total shareholders’ equity | 3,419.9 | 3,419.3 | ||||
Total liabilities and shareholders’ equity | $ 4,114.5 | $ 4,117 | ||||
Ordinary shares, issued | 62,017,368 | 65,546,976 | ||||
Ordinary shares, par value | $ 0.0015144558 | $ 0.0015144558 | ||||
Parent | 5.950% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 11,000,000 | 11,000,000 | ||||
Preference shares, rate | 5.95% | 5.95% | ||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | ||||
Parent | 7.401% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 5,327,500 | 5,327,500 | ||||
Preference shares, rate | 7.401% | 7.401% | ||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 | ||||
Parent | 7.250% Preference Shares | ||||||
SHAREHOLDERS’ EQUITY | ||||||
Preference shares, value | $ 0 | $ 0 | ||||
Preferred Stock, Shares Issued | 6,400,000 | 6,400,000 | ||||
Preference shares, rate | 7.25% | 7.25% | ||||
Preference shares, par value | $ 0.0015144558 | $ 0.0015144558 |
Schedule II - Condensed Fina128
Schedule II - Condensed Financial Information of Registrant Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Dividend income | $ 197.3 | $ 200.9 | $ 195.9 | ||||||||||||
Other income | $ (0.3) | $ (2.3) | $ (1.2) | $ 3.9 | $ (0.3) | $ 1 | $ 3.2 | $ 0.6 | $ 4.6 | $ 1.6 | $ 0.9 | $ 1.1 | 0.1 | 4.5 | 8.2 |
Total Revenues | 688.7 | 694 | 668.4 | 702.3 | 651.3 | 660.5 | 700.1 | 634.5 | 627 | 614.5 | 605.2 | 576.6 | 2,753.4 | 2,646.4 | 2,423.3 |
Expenses | |||||||||||||||
Operating and administrative expenses | (125.9) | (100.5) | (95.4) | (102.2) | (121.5) | (119.8) | (108.8) | (95.6) | (94.9) | (98.9) | (87.7) | (86.6) | (424) | (445.7) | (368.1) |
Income from operations before income tax | 123.2 | 30 | 51.2 | 133.1 | 68 | 38.7 | 137 | 124.2 | 93.6 | 110.3 | 41.1 | 97.7 | 337.5 | 367.9 | 342.7 |
Income tax expense | (5.3) | (1.8) | (2.2) | (5.1) | (0.8) | (1.3) | (6.2) | (3.8) | (3.6) | (2.9) | (1) | (5.9) | (14.4) | (12.1) | (13.4) |
Net income | $ 117.9 | $ 28.2 | $ 49 | $ 128 | $ 67.2 | $ 37.4 | $ 130.8 | $ 120.4 | $ 90 | $ 107.4 | $ 40.1 | $ 91.8 | 323.1 | 355.8 | 329.3 |
Amount attributable to non-controlling interest | (0.8) | (0.8) | 0.5 | ||||||||||||
Net income attributable to Aspen Insurance Holdings Limited ordinary shareholders | 322.3 | 355 | 329.8 | ||||||||||||
Other Comprehensive Income: | |||||||||||||||
Change in unrealized gains on investments | (105.2) | 34.9 | (184.7) | ||||||||||||
Other comprehensive (loss)/income, net of tax | (174.7) | 15.2 | (208.3) | ||||||||||||
Total comprehensive income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 147.6 | 370.2 | 121.5 | ||||||||||||
Parent | |||||||||||||||
Condensed Financial Statements, Captions [Line Items] | |||||||||||||||
Equity in net earnings of subsidiaries and other investments | 59 | 146.9 | 40.6 | ||||||||||||
Dividend income | 292.3 | 258.5 | 301.8 | ||||||||||||
Interest income on Eurobond | 29.5 | 29.5 | 44.6 | ||||||||||||
Net realized and unrealized investment gains/(losses) | 4.3 | 5.6 | (6.3) | ||||||||||||
Other income | 1.9 | 1.9 | 1.9 | ||||||||||||
Total Revenues | 387 | 442.4 | 382.6 | ||||||||||||
Expenses | |||||||||||||||
Operating and administrative expenses | (34.4) | (57.1) | (20.6) | ||||||||||||
Interest expense | (29.5) | (29.5) | (32.7) | ||||||||||||
Income from operations before income tax | 323.1 | 355.8 | 329.3 | ||||||||||||
Income tax expense | 0 | 0 | 0 | ||||||||||||
Net income | 323.1 | 355.8 | 329.3 | ||||||||||||
Amount attributable to non-controlling interest | (0.8) | (0.8) | 0.5 | ||||||||||||
Net income attributable to Aspen Insurance Holdings Limited ordinary shareholders | 322.3 | 355 | 329.8 | ||||||||||||
Other Comprehensive Income: | |||||||||||||||
Change in unrealized gains on investments | (105.2) | 34.9 | (184.7) | ||||||||||||
Loss on derivatives reclassified to interest expense | 0 | 0 | 0.5 | ||||||||||||
Net change from current period hedged transactions | 2.6 | (3.8) | 0 | ||||||||||||
Change in foreign currency translation adjustment | (72.1) | (15.9) | (24.1) | ||||||||||||
Other comprehensive (loss)/income, net of tax | (174.7) | 15.2 | (208.3) | ||||||||||||
Total comprehensive income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ 147.6 | $ 370.2 | $ 121.5 |
Schedule II - Condensed Fina129
Schedule II - Condensed Financial Information of Registrant Statements of Cash Flows (Details) - USD ($) $ in Millions | Nov. 15, 2006 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||||
Share-based compensation | $ 17.9 | $ 15.1 | $ 21.4 | |
Net cash generated by operating activities | 574.2 | 607.4 | 566.4 | |
Cash flows (used in)/from investing activities: | ||||
Purchase of short term investments | 45.6 | 114.2 | 80.3 | |
Repayment of loan notes issued by Silverton | (67.8) | 0 | 0 | |
Investment in Micro-insurance venture | (0.8) | 0 | 0 | |
Net proceeds from other investments | 0 | 39.3 | 0 | |
Net cash (used in) investing activities | (501.9) | (515) | (497.9) | |
Cash flows (used in)/from financing activities: | ||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 6.8 | 2.7 | 21.2 | |
Proceeds from the issuance of preference shares, net of issuance costs | $ 196.3 | 0 | 0 | 270.6 |
PIERS redeemed and cancelled | 0 | 0 | (230) | |
Ordinary share repurchase | (83.7) | (180.9) | (309.6) | |
Make whole payment | 0 | 0 | (9.3) | |
Proceeds from long term debt | 100 | 70 | 50 | |
Debt redemption | 0 | 0 | (250) | |
Net cash (used in) financing activities | (133.5) | (196.4) | (240.8) | |
Increase/(decrease) in cash and cash equivalents | (79) | (115.1) | (170) | |
Cash and cash equivalents at beginning of period | 1,178.5 | 1,293.6 | 1,463.6 | |
Cash and cash equivalents at end of period | 1,099.5 | 1,178.5 | 1,293.6 | |
Parent | ||||
Cash flows from operating activities: | ||||
Net income (excluding equity in net earnings of subsidiaries) | 256.4 | 209.8 | 288.8 | |
Share-based compensation | 17.9 | 15.1 | 21.4 | |
Realized and unrealized losses/(gains) | (4.3) | (5.6) | 6.3 | |
Loss on derivative contracts | 1.2 | 0 | 0 | |
Loss on derivative reclassified to interest expense | 0 | 0 | 0.5 | |
Increase (Decrease) in Accounts and Other Receivables | 0 | 1.1 | 0 | |
Change in other assets | (9) | 0.6 | (2.8) | |
Change in accrued expenses and other payables | (36.8) | 37.9 | (5.5) | |
Change in intercompany activities | 71.9 | 32.3 | 104.3 | |
Net cash generated by operating activities | 297.3 | 291.2 | 413 | |
Cash flows (used in)/from investing activities: | ||||
Purchase of short term investments | 25 | |||
Investment in subsidiaries | (171.5) | (56.6) | (605.4) | |
Investment in long-term debt issued by Silverton | (25) | (15) | (15) | |
Repayment of loan notes issued by Silverton | 20.5 | 0 | 0 | |
Investment in Micro-insurance venture | (0.8) | 0 | 0 | |
Net proceeds from other investments | 0 | 39.3 | 0 | |
Net cash (used in) investing activities | (201.8) | (32.3) | (620.4) | |
Cash flows (used in)/from financing activities: | ||||
Proceeds from the issuance of ordinary shares, net of issuance costs | 6.8 | 2.7 | 21.2 | |
Proceeds from the issuance of preference shares, net of issuance costs | 0 | 0 | 270.6 | |
PIERS redeemed and cancelled | 0 | 0 | (230) | |
Ordinary share repurchase | (83.7) | (180.9) | (309.6) | |
Make whole payment | 0 | 0 | (9.3) | |
Proceeds from long term debt | 0 | 0 | 299.7 | |
Debt redemption | 0 | 0 | (250) | |
Ordinary and preference share dividends paid | (88.7) | (88.1) | (83.3) | |
Proceeds from maturity of Eurobond | 573.8 | 0 | 400 | |
Eurobond purchased from subsidiary | (480) | 0 | 0 | |
Net cash (used in) financing activities | (71.8) | (266.3) | 109.3 | |
Increase/(decrease) in cash and cash equivalents | 23.7 | (7.4) | (98.1) | |
Cash and cash equivalents at beginning of period | 86.8 | 94.2 | ||
Cash and cash equivalents at end of period | $ 110.5 | $ 86.8 | $ 94.2 |
Schedule III - Supplementary130
Schedule III - Supplementary Insurance Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Deferred Policy Acquisition Costs | $ 361.1 | $ 299 | $ 262.2 | $ 361.1 | $ 299 | $ 262.2 | ||||||||||
Liability for Unpaid Claims and Claims Adjustment Expense, Net | 4,583.4 | 4,400.8 | 4,346.2 | 4,583.4 | 4,400.8 | 4,346.2 | $ 4,280.7 | |||||||||
Losses and loss adjustment expenses | 4,938.2 | 4,750.8 | 4,678.9 | 4,938.2 | 4,750.8 | 4,678.9 | $ 4,779.7 | |||||||||
Net Reserves for Unearned Premiums | 1,418.3 | 1,235 | 1,128.7 | 1,418.3 | 1,235 | 1,128.7 | ||||||||||
Net earned premium | 629.7 | $ 640.6 | $ 609.4 | $ 593.6 | 612.2 | $ 610.4 | $ 616.2 | $ 566.5 | 572.6 | $ 544.3 | $ 544 | $ 510.9 | 2,473.3 | 2,405.3 | 2,171.8 | |
Net Investment Income | 185.5 | 190.3 | 186.4 | |||||||||||||
Losses and LAE Expenses | 1,366.2 | 1,307.5 | 1,223.7 | |||||||||||||
Policy Acquisition Expenses | 483.6 | 451.2 | 422 | |||||||||||||
Net written premiums | 2,646.2 | 2,515.2 | 2,299.7 | |||||||||||||
General and Administrative Expenses | 360.1 | 351.9 | 316.9 | |||||||||||||
Reinsurance | ||||||||||||||||
Deferred Policy Acquisition Costs | 235.2 | 156.4 | 131.9 | 235.2 | 156.4 | 131.9 | ||||||||||
Losses and loss adjustment expenses | 2,409.5 | 2,493.3 | 2,646.8 | 2,409.5 | 2,493.3 | 2,646.8 | ||||||||||
Net Reserves for Unearned Premiums | 484.2 | 680.1 | 529.9 | 484.2 | 680.1 | 529.9 | ||||||||||
Net earned premium | 1,072.6 | 1,088.2 | 1,073 | |||||||||||||
Losses and LAE Expenses | 491.6 | 497.8 | 481.7 | |||||||||||||
Policy Acquisition Expenses | 224.7 | 200 | 207.2 | |||||||||||||
Net written premiums | 1,153.5 | 1,124 | 1,082 | |||||||||||||
General and Administrative Expenses | 146.5 | 146.4 | 131 | |||||||||||||
Insurance | ||||||||||||||||
Deferred Policy Acquisition Costs | 125.9 | 142.6 | 130.3 | 125.9 | 142.6 | 130.3 | ||||||||||
Losses and loss adjustment expenses | 2,173.9 | 1,907.5 | 1,699.4 | 2,173.9 | 1,907.5 | 1,699.4 | ||||||||||
Net Reserves for Unearned Premiums | $ 934.1 | $ 554.9 | $ 598.8 | 934.1 | 554.9 | 598.8 | ||||||||||
Net earned premium | 1,400.7 | 1,317.1 | 1,098.8 | |||||||||||||
Losses and LAE Expenses | 874.6 | 809.7 | 742 | |||||||||||||
Policy Acquisition Expenses | 258.9 | 251.2 | 214.8 | |||||||||||||
Net written premiums | 1,492.7 | 1,391.2 | 1,217.7 | |||||||||||||
General and Administrative Expenses | $ 213.6 | $ 205.5 | $ 185.9 |
Schedule IV - Reinsurance Premi
Schedule IV - Reinsurance Premiums Written and Premiums Earned (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||
Direct | $ 1,748.4 | $ 1,729.9 | $ 1,512.8 | ||||||||||||
Assumed | 1,248.9 | 1,172.8 | 1,133.9 | ||||||||||||
Ceded | (351.1) | (387.5) | (347) | ||||||||||||
Net premiums written | 2,646.2 | 2,515.2 | 2,299.7 | ||||||||||||
Gross Amount Premiums Earned | 1,703.3 | 1,599 | 1,366.8 | ||||||||||||
Ceded to Other Companies Premiums Earned | (383.5) | (331.3) | (321.6) | ||||||||||||
Assumed From Other Companies Premiums Earned | 1,153.5 | 1,137.6 | 1,126.6 | ||||||||||||
Net premiums earned | $ 629.7 | $ 640.6 | $ 609.4 | $ 593.6 | $ 612.2 | $ 610.4 | $ 616.2 | $ 566.5 | $ 572.6 | $ 544.3 | $ 544 | $ 510.9 | $ 2,473.3 | $ 2,405.3 | $ 2,171.8 |
Percentage of Amount Assumed to Net Premiums Earned | 46.60% | 47.30% | 51.90% |
Schedule V - Valuation and Q132
Schedule V - Valuation and Qualifying Accounts (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Premiums Receivable | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4,300,000 | $ 1,100,000 | $ 100,000 |
Charged to Costs and Expenses | 0 | 3,200,000 | 1,000,000 |
Charged to Other Accounts | (1,700,000) | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | 2,600,000 | 4,300,000 | 1,100,000 |
Reinsurance | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 0 | 0 | 200,000 |
Charged to Costs and Expenses | 0 | (200,000) | |
Charged to Other Accounts | 0 | 0 | 0 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 0 | $ 0 | $ 0 |