Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 26, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
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 Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 60,723,134 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Investments: | ||
Fixed income securities, available for sale at fair value (amortized cost — $5,895.1 and $5,867.5) | $ 6,063,700,000 | $ 5,951,100,000 |
Fixed income securities, trading at fair value (amortized cost — $877.7 and $794.2) | 896,800,000 | 788,000,000 |
Equity securities, trading at fair value (cost — $700.1 and $722.5) | 757,800,000 | 736,400,000 |
Short-term investments, available for sale at fair value (amortized cost — $135.3 and $162.9) | 135,300,000 | 162,900,000 |
Short-term investments, trading at fair value (amortized cost — $7.7 and $9.5) | 7,700,000 | 9,500,000 |
Catastrophe bonds, trading at fair value (cost — $46.1 and $55.2) | 46,100,000 | 55,400,000 |
Other investments, equity method | 8,900,000 | 8,900,000 |
Total investments | 7,916,300,000 | 7,712,200,000 |
Cash and cash equivalents (including $142.8 and $243.3 within consolidated variable interest entities) | 903,100,000 | 1,099,500,000 |
Reinsurance recoverables | ||
Unpaid losses | 366,000,000 | 354,800,000 |
Ceded unearned premiums | 243,600,000 | 168,900,000 |
Receivables | ||
Underwriting premiums | 1,339,100,000 | 1,115,600,000 |
Other | 117,900,000 | 94,300,000 |
Funds withheld | 39,600,000 | 36,000,000 |
Deferred policy acquisition costs | 407,700,000 | 361,100,000 |
Derivatives at fair value | 10,900,000 | 9,200,000 |
Receivable for securities sold | 1,900,000 | 600,000 |
Office properties and equipment | 83,200,000 | 70,600,000 |
Deferred Tax Assets, Net of Valuation Allowance, Noncurrent | 0 | 3,700,000 |
Other assets | 1,800,000 | 4,100,000 |
Intangible assets and goodwill | 74,300,000 | 18,200,000 |
Total assets | 11,505,400,000 | 11,048,800,000 |
Insurance reserves | ||
Losses and loss adjustment expenses | 5,011,500,000 | 4,938,200,000 |
Unearned premiums | 1,804,000,000 | 1,587,200,000 |
Total insurance reserves | 6,815,500,000 | 6,525,400,000 |
Payables | ||
Reinsurance premiums | 148,900,000 | 92,700,000 |
Current taxation | 8,200,000 | 10,800,000 |
Deferred taxation | 11,000,000 | 0 |
Accrued expenses and other payables | 293,300,000 | 343,800,000 |
Liabilities under derivative contracts | 17,600,000 | 4,000,000 |
Total payables | 479,000,000 | 451,300,000 |
Loan notes issued by variable interest entities, at fair value | 104,500,000 | 103,000,000 |
Long-term debt | 549,300,000 | 549,200,000 |
Total liabilities | 7,948,300,000 | 7,628,900,000 |
Commitments and contingent liabilities (see Note 16) | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, value | 100,000 | 100,000 |
Preference shares: | ||
Non-controlling interest | 1,100,000 | 1,300,000 |
Additional paid-in capital | 1,055,900,000 | 1,075,300,000 |
Retained earnings | 2,375,900,000 | 2,283,600,000 |
Accumulated other comprehensive income, net of taxes | 124,100,000 | 59,600,000 |
Total shareholders’ equity | 3,557,100,000 | 3,419,900,000 |
Total liabilities and shareholders’ equity | 11,505,400,000 | 11,048,800,000 |
5.95% 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 |
UNAUDITED CONDENSED CONSOLIDAT3
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
Fixed income securities, available for sale, amortized cost | $ 5,895,100,000 | $ 5,867,500,000 |
Trading Securities, Amortized Cost Basis | 877,700,000 | 794,200,000 |
Equity securities, available for sale at fair value, cost | 0 | 0 |
Equity securities, trading at fair value, cost | 700,100,000 | 722,500,000 |
Short-term investments, available for sale at fair value, amortized cost | 135,300,000 | 162,900,000 |
Short-term investments, trading at fair value, amortized cost | 7,700,000 | 9,500,000 |
Catastrophe bonds, trading at fair value, cost | 46,100,000 | 55,200,000 |
Cash and cash equivalents (including $142.8 and $243.3 within consolidated variable interest entities) | $ 903,100,000 | $ 1,099,500,000 |
Ordinary shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Ordinary shares, issued (in shares) | 60,675,142 | 60,918,373 |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
5.95% preference shares | ||
Preference shares, issued (in shares) | 11,000,000 | 11,000,000 |
Preference shares, rate | 5.95% | 5.95% |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
7.401% preference shares | ||
Preference shares, issued (in shares) | 5,327,500 | 5,327,500 |
Preference shares, rate | 7.401% | 7.401% |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
7.250% preference shares | ||
Preference shares, issued (in shares) | 6,400,000 | 6,400,000 |
Preference shares, rate | 7.25% | 7.25% |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Variable Interest Entity, Primary Beneficiary | ||
Cash and cash equivalents (including $142.8 and $243.3 within consolidated variable interest entities) | $ 142,800,000 | $ 243,300,000 |
UNAUDITED CONDENSED CONSOLIDAT4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Revenues | ||
Net earned premium | $ 663.1 | $ 593.6 |
Net investment income | 49.5 | 47.4 |
Realized and unrealized investment gains | 65.6 | 57.4 |
Other income | 1.4 | 3.9 |
Total revenues | 779.6 | 702.3 |
Expenses | ||
Losses and loss adjustment expenses | 357.4 | 306.1 |
Amortization of deferred policy acquisition costs | 130.2 | 119.3 |
General, administrative and corporate expenses | 119.8 | 102.2 |
Interest on long-term debt | 7.4 | 7.4 |
Change in fair value of derivatives | 7.2 | 7.8 |
Change in fair value of loan notes issued by variable interest entities | 4.4 | 2.9 |
Realized and unrealized investment losses | 20.6 | 14.5 |
Net realized and unrealized foreign exchange losses | 15.7 | 6.4 |
Other expenses | 0 | 2.6 |
Total expenses | 662.7 | 569.2 |
Income from operations before income tax | 116.9 | 133.1 |
Income tax expense | (2.5) | (5.1) |
Net income | 114.4 | 128 |
Amount attributable to non-controlling interest | 0.2 | 0 |
Net income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | 114.6 | 128 |
Available for sale investments: | ||
Reclassification adjustment for net realized (gains) on investments included in net income | (4.2) | (32.3) |
Change in net unrealized gains on available for sale securities held | 89.2 | 32.4 |
Net change from current period hedged transactions | (2.1) | (2.4) |
Change in foreign currency translation adjustment | (13.5) | (27.7) |
Other comprehensive income, gross of tax | 69.4 | (30) |
Tax thereon: | ||
Reclassification adjustment for net realized gains on investments included in net income | 0.5 | 0.4 |
Change in net unrealized gains on available for sale securities held | (8.6) | (3.3) |
Net change from current period hedged transactions | 0.7 | 0 |
Change in foreign currency translation adjustment | 2.5 | 1.6 |
Total tax on other comprehensive income | (4.9) | (1.3) |
Other comprehensive income/(loss) net of tax | 64.5 | (31.3) |
Total comprehensive income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ 179.1 | $ 96.7 |
Weighted average number of ordinary share and share equivalents | ||
Basic (in shares) | 60,867,815 | 62,159,303 |
Diluted (in shares) | 62,483,938 | 63,532,662 |
Basic earnings per ordinary share adjusted for preference share dividends (in usd per share) | $ 1.73 | $ 1.91 |
Diluted earnings per ordinary share adjusted for preference share dividends (in usd per share) | $ 1.68 | $ 1.87 |
UNAUDITED CONDENSED CONSOLIDAT5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary shares | Preference shares | Non-controlling interest | Additional paid-in capital | Additional paid-in capitalOrdinary 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 investments, net of taxes: |
Shareholder's equity, beginning balance at Dec. 31, 2014 | $ 0.5 | $ 1,134.3 | $ 2,050.1 | $ 72.7 | $ (3.8) | $ 165.4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net change attributable to non-controlling interest for the period | $ 0 | 0 | 0 | |||||||||
New ordinary shares issued | $ 3.5 | |||||||||||
Ordinary shares repurchased and cancelled | (36.5) | |||||||||||
Share-based compensation | 4.7 | |||||||||||
Net income for the period | 128 | 128 | ||||||||||
Dividends on ordinary shares | $ (12.4) | |||||||||||
Dividends on preference shares | (9.5) | $ (9.5) | ||||||||||
Change for the period, net of income tax | (26.1) | (2.8) | ||||||||||
Shareholder's equity, ending balance at Mar. 31, 2015 | 3,465.8 | $ 0.1 | $ 0 | 0.5 | 1,106 | 2,156.2 | 46.6 | (6.2) | 162.6 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net change from current period hedged transaction | (2.4) | |||||||||||
Total accumulated other comprehensive income, net of taxes | 203 | |||||||||||
Total accumulated other comprehensive income, net of taxes | 59.6 | |||||||||||
Shareholder's equity, beginning balance at Dec. 31, 2015 | 3,419.9 | 1.3 | 1,075.3 | 2,283.6 | 0.6 | (1.2) | 60.2 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net change attributable to non-controlling interest for the period | 0.2 | (0.2) | 0.2 | |||||||||
New ordinary shares issued | 1.5 | |||||||||||
Ordinary shares repurchased and cancelled | $ (25) | |||||||||||
Share-based compensation | 4.1 | |||||||||||
Net income for the period | 114.4 | 114.4 | ||||||||||
Dividends on ordinary shares | $ (12.8) | |||||||||||
Dividends on preference shares | (9.5) | $ (9.5) | ||||||||||
Change for the period, net of income tax | (11) | 76.9 | ||||||||||
Shareholder's equity, ending balance at Mar. 31, 2016 | 3,557.1 | $ 0.1 | $ 0 | $ 1.1 | $ 1,055.9 | $ 2,375.9 | $ (10.4) | (2.6) | $ 137.1 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net change from current period hedged transaction | $ (1.4) | |||||||||||
Total accumulated other comprehensive income, net of taxes | $ 124.1 |
UNAUDITED CONDENSED CONSOLIDAT6
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 114.4 | $ 128 |
Proportion due to non-controlling interest | 0.2 | 0 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 10.2 | 11.2 |
Share-based compensation | 4.1 | 4.7 |
Realized and unrealized investment (gains) | (65.6) | (57.4) |
Realized and unrealized investment losses | 20.6 | 14.5 |
Change in fair value of loan notes issued by variable interest entities | 4.4 | 2.9 |
Net realized and unrealized investment foreign exchange (gains)/losses | (2.2) | 21.7 |
Loss on derivative contracts | (1.4) | (2.4) |
Insurance reserves: | ||
Losses and loss adjustment expenses | 58.5 | 34.1 |
Unearned premiums | 202.4 | 217.8 |
Reinsurance recoverables: | ||
Unpaid losses | (9.3) | (14.5) |
Ceded unearned premiums | (74.2) | (70.8) |
Other receivables | (20.8) | (1.7) |
Deferred policy acquisition costs | (46.9) | (37.6) |
Reinsurance premiums payable | 55.7 | 80.8 |
Funds withheld | (3.6) | 0.8 |
Premiums receivable | (207.5) | (278.6) |
Deferred taxes | 14.4 | 8.7 |
Income tax payable | 0 | (5.2) |
Accrued expenses and other payables | (8.7) | 16.9 |
Fair value of derivatives and settlement of liabilities under derivatives | 11.9 | 3.1 |
Long-term debt | 1.6 | 0 |
Intangible assets | 0 | 0 |
Other assets | 2.3 | (5) |
Net cash generated from operating activities | 60.5 | 72 |
Cash flows (used in) investing activities: | ||
(Purchases) of fixed income securities — Available for sale | (682.9) | (483.7) |
(Purchases) of fixed income securities — Trading | (215.9) | (153.4) |
Proceeds from sales and maturities of fixed income securities — Available for sale | 640 | 540.7 |
Proceeds from sales and maturities of fixed income securities — Trading | 132.2 | 133.8 |
(Purchases) of equity securities — Trading | (60.3) | (186.7) |
Net proceeds of catastrophe bonds — Trading | 8.9 | 1.8 |
Proceeds from sales of equity securities — Available for sale | 0 | 108.6 |
Proceeds from sales of equity securities — Trading | 59.1 | 83.7 |
(Purchases) of short-term investments — Available for sale | (57.4) | (62.1) |
Proceeds from sales of short-term investments — Available for sale | 88.7 | 123.4 |
(Purchases) of short-term investments — Trading | 0 | (12.8) |
Proceeds from sales of short-term investments — Trading | 2.1 | 12.3 |
Net change in receivable for securities sold | 23.6 | 15.9 |
Net proceeds/(purchases) of equipment | (4.8) | (5.6) |
Payments for acquisitions and investments, net of cash acquired | (52.7) | (0.8) |
Net cash (used in)/from investing activities | (119.4) | 115.1 |
Cash flows (used in) financing activities: | ||
Proceeds from the issuance of ordinary shares, net of issuance costs | 1.5 | 3.5 |
Ordinary shares repurchased | (25) | (36.5) |
Dividends paid on ordinary shares | (87.4) | (64.9) |
Dividends paid on preference shares | (12.8) | (12.4) |
Dividends paid to non-controlling interest | (9.5) | (9.5) |
Net cash (used in) financing activities | (133.2) | (119.8) |
Effect of exchange rate movements on cash and cash equivalents | (4.3) | (19.9) |
(Decrease)/increase in cash and cash equivalents | (196.4) | 47.4 |
Cash and cash equivalents at beginning of period | 1,099.5 | 1,178.5 |
Cash and cash equivalents at end of period | 903.1 | 1,225.9 |
Supplemental disclosure of cash flow information: | ||
Net cash paid/(received) during the period for income tax | 0.4 | (3.9) |
Cash paid during the period for interest | $ 0 | $ 0 |
History and Organization
History and Organization | 3 Months Ended |
Mar. 31, 2016 | |
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
Basis of Preparation | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Preparation The accompanying unaudited condensed consolidated financial statements have been prepared on the basis of generally accepted accounting principles in the United States (“U.S. GAAP”) for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Results for the three months ended March 31, 2016 are not necessarily indicative of the results that may be expected for the year ended December 31, 2016 . The unaudited condensed consolidated financial statements include the accounts of Aspen Holdings and its subsidiaries. All intercompany transactions and balances have been eliminated on consolidation. The balance sheet as at December 31, 2015 has been derived from the audited consolidated financial statements at that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with the consolidated financial statements and notes thereto for the year ended December 31, 2015 contained in the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on February 19, 2016 (File No. 001-31909). There have been no changes to significant accounting policies from those disclosed in the Company’s Annual Report on Form 10-K. Assumptions and estimates made by management have a significant effect on the amounts reported within the unaudited condensed consolidated financial statements. The most significant of these relate to losses and loss adjustment expenses, the value of investments, reinsurance recoverables and the fair value of derivatives. All material assumptions and estimates are regularly reviewed and adjustments made as necessary, but actual results could be significantly different from those expected when the assumptions or estimates were made. Accounting Pronouncements Adopted in 2016 On May 21, 2015, the Financial Accounting Standards Board (“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 roll forward 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 2016 Annual report on Form 10-K and its Quarterly reports on Form 10-Q throughout 2017. 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, 2015 and will impact the Company’s provisional amounts booked in respect to the acquisition of AG Logic Holdings LLC (“AgriLogic”). Other accounting pronouncements were adopted during the three months ended March 31, 2016 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. Accounting Pronouncements Not Yet Adopted On January 5, 2016, the FASB issued ASU 2016-1, “ Financial Instruments - Overall (Subtopic 825-10) ” which enhances the reporting model for financial instruments. In particular, the ASU requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). The amendments required as a result of this update are effective for fiscal years beginning after December 15, 2017. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements as the Company’s equity portfolio is classified as held for trading with changes in fair value recognized through net income. On February 25, 2016, the FASB issued ASU 2016-2, “ Leases (Topic 842) ” which supersedes the leases requirements in Topic 840 and establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The amendments of this update are effective for fiscal years beginning after December 15, 2018. The ASU is expected to have a material impact on the Company’s consolidated financial statements, specifically increasing the Company’s assets and liabilities as all leases greater than twelve months will be recognized on the balance sheet as a right of use asset and lease liability. The ASU will not have a material impact on the Company’s consolidated income statement. On March 30, 2016, the FASB issued ASU 2016-9, “ Compensation - Stock Compensation (Topic 718) ” which forms part of the simplification initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions and the amendments of this update are effective for fiscal years beginning after December 15, 2016. The Company does not expect this ASU to have a material impact on its consolidated financial results but expects that 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. Other accounting pronouncements were issued during the three months ended March 31, 2016 which were not relevant to the Company. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
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 accumulated other comprehensive income (“AOCI”) that are reclassified into the unaudited condensed consolidated statement of operations for the three months ended March 31, 2016 and 2015 : Amount Reclassified from AOCI Details about the AOCI Components Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Affected Line Item in the Unaudited Condensed Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gains on sale of securities $ 7.1 $ 33.5 Realized and unrealized investment gains Realized (losses) on sale of securities (2.9 ) (1.2 ) Realized and unrealized investment losses 4.2 32.3 Income from operations before income tax Tax on net realized gains of securities (0.5 ) (0.4 ) Income tax expense $ 3.7 $ 31.9 Net income Realized derivatives: Net realized (losses) on settled derivatives 1.1 $ 2.8 General, administrative and corporate expenses $ 1.1 $ 2.8 Net income Total reclassifications from AOCI to the statement of operations, net of income tax $ 4.8 $ 34.7 Net income |
Earnings per Ordinary Share
Earnings per Ordinary Share | 3 Months Ended |
Mar. 31, 2016 | |
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. 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 ordinary share for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 ($ in millions, except share and per share amounts) Net income $ 114.4 $ 128.0 Preference share dividends (9.5 ) (9.5 ) Net amount attributable to non-controlling interest 0.2 — Basic and diluted net income available to ordinary shareholders $ 105.1 $ 118.5 Ordinary shares: Basic weighted average ordinary shares 60,867,815 62,159,303 Weighted average effect of dilutive securities (1) 1,616,123 1,373,359 Total diluted weighted average ordinary shares 62,483,938 63,532,662 Earnings per ordinary share: Basic $ 1.73 $ 1.91 Diluted $ 1.68 $ 1.87 (1) 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 14. Dividends. On April 21, 2016, the Company’s Board of Directors (“Board of Directors”) declared the following quarterly dividends: Dividend Payable on: Record Date: Ordinary shares $ 0.22 May 25, 2016 May 9, 2016 7.401% preference shares $ 0.462563 July 1, 2016 June 15, 2016 7.250% preference shares $ 0.4531 July 1, 2016 June 15, 2016 5.95% preference shares $ 0.3719 July 1, 2016 June 15, 2016 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2016 | |
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 business segments and quantitative thresholds to determine the Company’s reportable segments. Segment profit or loss for each of the Company’s business 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 business segment’s underwriting performance. Reinsurance Segment. The reinsurance segment consists of property catastrophe reinsurance, other property reinsurance (risk excess, pro rata and facultative), casualty reinsurance (U.S. treaty, international treaty and global facultative) and specialty reinsurance (credit and surety, agriculture insurance and reinsurance, marine, aviation, terrorism, engineering and other specialty lines). ACM forms part of our 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 business segment, see Part I, Item 1, “Business — Business Segments — Reinsurance” in the Company’s 2015 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. 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 business segment, see Part I, Item 1 “Business — Business Segments — Insurance” in the Company’s 2015 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. 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 business segments as they typically do not fluctuate with the levels of premiums written and are not directly related to the Company’s business segment operations. The Company does not allocate its assets by business segment as it evaluates underwriting results of each business 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 three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 517.6 $ 458.1 $ 975.7 Net written premiums 449.5 350.2 799.7 Gross earned premiums 306.8 445.6 752.4 Net earned premiums 280.3 382.8 663.1 Underwriting Expenses Losses and loss adjustment expenses 134.5 222.9 357.4 Amortization of deferred policy acquisition costs 59.4 70.8 130.2 General and administrative expenses 44.1 58.6 102.7 Underwriting income $ 42.3 $ 30.5 72.8 Corporate expenses (17.1 ) Net investment income 49.5 Realized and unrealized investment gains 65.6 Realized and unrealized investment losses (20.6 ) Change in fair value of loan notes issued by variable interest entities (4.4 ) Change in fair value of derivatives (7.2 ) Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange (losses) (15.7 ) Other income 1.4 Income before tax $ 116.9 Net reserves for loss and loss adjustment expenses $ 2,433.0 $ 2,212.5 $ 4,645.5 Ratios Loss ratio 48.0 % 58.2 % 53.9 % Policy acquisition expense ratio 21.2 18.5 19.6 General and administrative expense ratio 15.7 15.3 18.1 (1) Expense ratio 36.9 33.8 37.7 Combined ratio 84.9 % 92.0 % 91.6 % (1) The general and administrative expense ratio in the total column includes corporate expenses. Three Months Ended March 31, 2015 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 484.8 $ 434.4 $ 919.2 Net written premiums 442.1 321.1 763.2 Gross earned premiums 265.8 415.1 680.9 Net earned premiums 249.4 344.2 593.6 Underwriting Expenses Losses and loss adjustment expenses 105.5 200.6 306.1 Amortization of deferred policy acquisition costs 53.4 65.9 119.3 General and administrative expenses 32.4 55.3 87.7 Underwriting income $ 58.1 $ 22.4 80.5 Corporate expenses (14.5 ) Net investment income 47.4 Realized and unrealized investment gains 57.4 Realized and unrealized investment losses (14.5 ) Change in fair value of loan notes issued by variable interest entities (2.9 ) Change in fair value of derivatives (7.8 ) Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange (losses) (6.4 ) Other income 3.9 Other expenses (2.6 ) Income before tax $ 133.1 Net reserves for loss and loss adjustment expenses $ 2,410.9 $ 1,927.9 $ 4,338.8 Ratios Loss ratio 42.3 % 58.3 % 51.6 % Policy acquisition expense ratio 21.4 19.1 20.1 General and administrative expense ratio 13.0 16.1 17.2 (1) Expense ratio 34.4 35.2 37.3 Combined ratio 76.7 % 93.5 % 88.9 % (1) The general and administrative expense ratio in the total column includes corporate expenses. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Income Statement Investment Income. The following table summarizes investment income for the three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) Fixed income securities — Available for sale $ 36.6 $ 35.2 Fixed income securities — Trading 7.4 7.0 Short-term investments — Available for sale 0.1 0.4 Fixed term deposits (included in cash and cash equivalents) 0.5 1.1 Equity securities — Trading 6.9 6.2 Catastrophe bonds — Trading 0.6 0.4 Total $ 52.1 $ 50.3 Investment expenses (2.6 ) (2.9 ) Net investment income $ 49.5 $ 47.4 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 three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 7.1 $ 6.2 Fixed income securities — gross realized (losses) (2.4 ) (0.5 ) Equity securities — gross realized gains — 31.9 Equity securities — gross realized (losses) — (3.0 ) Cash and cash equivalents — gross realized (losses) (0.7 ) — Trading: Fixed income securities — gross realized gains 1.2 2.0 Fixed income securities — gross realized (losses) (5.8 ) (2.2 ) Equity securities — gross realized gains 5.9 16.5 Equity securities — gross realized (losses) (11.5 ) (8.8 ) Catastrophe bonds (0.2 ) — Net change in gross unrealized gains 51.4 0.8 Total net realized and unrealized investment gains recorded in the statement of operations $ 45.0 $ 42.9 Change in available for sale net unrealized gains: Fixed income securities 85.0 27.3 Short-term investments — 0.1 Equity securities — (27.3 ) Total change in pre-tax available for sale unrealized gains 85.0 0.1 Change in taxes (8.1 ) (2.9 ) Total change in net unrealized gains, net of taxes, recorded in other comprehensive income $ 76.9 $ (2.8 ) Other-than-temporary Impairments. A security is potentially impaired when its fair value is below its amortized cost. The Company reviews its available for sale fixed income and equity portfolios on an individual security basis for potential other-than-temporary impairment (“OTTI”) each quarter based on criteria including issuer-specific circumstances, credit ratings actions and general macro-economic conditions. For a more detailed description of OTTI, please refer to Note 2(c) of the “Notes to the Audited Consolidated Financial Statements” in the Company’s 2015 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. There was no OTTI charge recognized for the three months ended March 31, 2016 ( 2015 — $ Nil ). 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 March 31, 2016 and December 31, 2015 : As at March 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,084.5 $ 27.2 $ — $ 1,111.7 U.S. agency 145.4 4.5 — 149.9 Municipal 30.8 2.3 (0.2 ) 32.9 Corporate 2,599.8 83.7 (2.6 ) 2,680.9 Non-U.S. government-backed corporate 71.4 1.1 — 72.5 Foreign government 660.4 14.3 (0.2 ) 674.5 Asset-backed 75.2 1.1 — 76.3 Non-agency commercial mortgage-backed 21.6 1.0 — 22.6 Agency mortgage-backed 1,206.0 37.2 (0.8 ) 1,242.4 Total fixed income securities — Available for sale 5,895.1 172.4 (3.8 ) 6,063.7 Total short-term investments — Available for sale 135.3 — — 135.3 Total $ 6,030.4 $ 172.4 $ (3.8 ) $ 6,199.0 As at March 31, 2016 the Company no longer held equity investments in its available for sale portfolio. All equities are held in the trading portfolio. 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 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 March 31, 2016 and December 31, 2015 : As at March 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 41.8 $ 0.3 $ — $ 42.1 Municipal 4.0 — — 4.0 Corporate 602.0 15.2 (2.0 ) 615.2 Foreign government 192.7 6.7 (0.9 ) 198.5 Asset-backed 19.8 — (0.2 ) 19.6 Agency mortgage-backed 17.4 — — 17.4 Total fixed income securities — Trading 877.7 22.2 (3.1 ) 896.8 Total short-term investments — Trading 7.7 — — 7.7 Total equity securities — Trading 700.1 89.3 (31.6 ) 757.8 Total catastrophe bonds — Trading 46.1 0.1 (0.1 ) 46.1 Total $ 1,631.6 $ 111.6 $ (34.8 ) $ 1,708.4 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 The Company classifies the financial instruments presented in the tables above as held for trading as this most closely reflects the facts and circumstances of the investments held. Catastrophe Bonds. The Company has invested in catastrophe bonds with a total value of $46.1 million as at March 31, 2016 . 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 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 $0.8 million . On October 2, 2012, the Company established a subsidiary, Aspen Recoveries Limited, to take ownership of a 58.5% shareholding in Chaspark Maritime Holdings Ltd., a Singaporean registered company (“Chaspark”), with the remaining shareholding owned by other insurers. The shareholding in Chaspark was received as a settlement for subrogation rights associated with a contract frustration claim settlement. The Company has determined that Chaspark has the characteristics of a variable interest entity as addressed by the guidance in ASC 810-10, Consolidation . However, having considered the provisions of ASC 810-10, the Company’s investment in Chaspark does not permit the Company to direct the activities which most significantly impact Chaspark’s economic performance and the Company is not acting as principal or agent for a related party group of investors. Under these circumstances, the Company is not required to consolidate Chaspark. The investment is therefore accounted for under the equity method and adjustments to the carrying value of this investment are made based on the Company’s share of capital including share of income and expenses, which is provided in the quarterly management accounts. The adjusted carrying value approximates fair value. The tables below show the Company’s investments in the MVI and Chaspark for the three months ended March 31, 2016 and March 31, 2015 : For the Three Months Ended March 31, 2016 MVI Chaspark Total ($ in millions) Opening and closing undistributed value of investment $ 0.8 $ 8.7 $ 9.5 For the Three Months Ended March 31, 2015 MVI Chaspark Total ($ in millions) Opening undistributed value of investment $ — $ 8.7 $ 8.7 Initial investment 0.8 — $ 0.8 Closing value of investment $ 0.8 $ 8.7 $ 9.5 Fixed Income Securities. The scheduled maturity distribution of available for sale fixed income securities as at March 31, 2016 and December 31, 2015 is set forth in the tables 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 March 31, 2016 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 581.0 $ 583.2 AA Due after one year through five years 2,835.6 2,910.3 AA- Due after five years through ten years 1,072.0 1,114.7 A+ Due after ten years 103.7 114.2 A+ Subtotal 4,592.3 4,722.4 Non-agency commercial mortgage-backed 21.6 22.6 AA+ Agency mortgage-backed 1,206.0 1,242.4 AA+ Asset-backed 75.2 76.3 AAA Total fixed income securities — Available for sale $ 5,895.1 $ 6,063.7 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 Guaranteed Investments. As at March 31, 2016 the Company’s holding was limited to one municipal security, rated CC or higher ( December 31, 2015 — one municipal security, rated CC 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 Loss. The following tables summarize as at March 31, 2016 and December 31, 2015 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: As at March 31, 2016 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Number of Securities ($ in millions) U.S. government $ 55.5 $ — $ 3.2 $ — $ 58.7 $ — 10 U.S. agency 1.3 — — — 1.3 — 1 Municipal 3.9 (0.2 ) — — 3.9 (0.2 ) 4 Corporate 232.4 (2.0 ) 56.4 (0.6 ) 288.8 (2.6 ) 144 Non-U.S. government-backed corporate 4.3 — — — 4.3 — 3 Foreign government 92.8 (0.2 ) 34.7 — 127.5 (0.2 ) 15 Asset-backed 7.7 — 4.1 — 11.8 — 15 Agency mortgage-backed 32.3 — 115.4 (0.8 ) 147.7 (0.8 ) 48 Total fixed income securities — Available for sale 430.2 (2.4 ) 213.8 (1.4 ) 644.0 (3.8 ) 240 Total short-term investments — Available for sale 9.8 — — — 9.8 — 9 Total $ 440.0 $ (2.4 ) $ 213.8 $ (1.4 ) $ 653.8 $ (3.8 ) 249 As at December 31, 2015 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss 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 Investment Purchases and Sales. The following table summarizes investment purchases, sales and maturities for the three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) (Purchases) of fixed income securities — Available for sale $ (682.9 ) $ (483.7 ) (Purchases) of fixed income securities — Trading (215.9 ) (153.4 ) (Purchases) of equity securities — Trading (60.3 ) (186.7 ) Proceeds from sales and maturities of fixed income securities — Available for sale 640.0 540.7 Proceeds from sales and maturities of fixed income securities — Trading 132.2 133.8 Proceeds from sales of equity securities — Available for sale — 108.6 Proceeds from sales of equity securities — Trading 59.1 83.7 Net change in (payable)/receivable for securities (purchased)/sold 23.6 15.9 (Purchases) of short-term investments — Available for sale (57.4 ) (62.1 ) Proceeds from short-term investments — Available for sale 88.7 123.4 (Purchases) of short-term investments — Trading — (12.8 ) Proceeds from short-term investments — Trading 2.1 12.3 Net proceeds of catastrophe bonds — Trading 8.9 1.8 Net (purchases)/proceeds for the period $ (61.9 ) $ 121.5 |
Variable Interest Entities
Variable Interest Entities | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at March 31, 2016 , the Company had two investments in two variable interest entities (“VIE”), Chaspark and Silverton. Chaspark. 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 of these unaudited condensed consolidated financial statements, the investment in Chaspark is accounted for under the equity method. In the three months ended March 31, 2016 , there was no change in the value of the Company’s investment in Chaspark ( March 31, 2015 — $ Nil ). The adjusted carrying value approximates fair value. For more information on Chaspark please refer to Note 6 of these unaudited condensed consolidated financial statements. 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 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 remaining 2014 Loan Notes as at March 31, 2016 was $0.3 million (of which $0.2 million was due to external investors). During the first three months of 2016 , Silverton distributed $0.5 million (of which $0.4 million was distributed to external investors) to its noteholders. Of the remaining $0.2 million due to external investors, $0.2 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 Aspen Holdings is $0.3 million . The Company’s maximum loss exposure to the 2014 Loan Notes is $0.1 million which is the fair value of its holdings as at March 31, 2016 . 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 as at March 31, 2016 was $3.4 million (of which $2.9 million was held by external investors). Of the $2.9 million of the 2015 Loan Notes held by external investors, $2.9 million has been classified as a current liability in the Company’s consolidated financial statements. The total aggregate unpaid balance of the 2015 Loan Notes held by third parties and Aspen Holdings is $3.4 million . The Company’s maximum loss exposure to the 2015 Loan Notes is $0.5 million which is the fair value of its holdings as at March 31, 2016 . 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 March 31, 2016 was $130.4 million (of which $104.5 million is held by external investors). Using current loss estimates, Silverton expects to distribute $130.4 million (of which $104.5 million is held by external investors) to its noteholders during 2017. Of the $104.5 million 2016 Loan Notes held by external investors, it has all been 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 Aspen Holdings is $130.4 million . The Company’s maximum loss exposure to the 2016 Loan Notes is $25.9 million which is the fair value of its holdings as at March 31, 2016 . 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 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 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 of these unaudited condensed consolidated financial statements. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
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 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 as at March 31, 2016 and December 31, 2015 , respectively: As at March 31, 2016 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,111.7 $ — $ — $ 1,111.7 U.S. agency — 149.9 — 149.9 Municipal — 32.9 — 32.9 Corporate — 2,680.9 — 2,680.9 Non-U.S. government-backed corporate — 72.5 — 72.5 Foreign government 480.6 193.9 — 674.5 Asset-backed — 76.3 — 76.3 Non-agency commercial mortgage-backed — 22.6 — 22.6 Agency mortgage-backed — 1,242.4 — 1,242.4 Total fixed income securities available for sale, at fair value 1,592.3 4,471.4 — 6,063.7 Short-term investments available for sale, at fair value 101.1 34.2 — 135.3 Held for trading financial assets, at fair value U.S. government 42.1 — — 42.1 Municipal — 4.0 — 4.0 Corporate — 615.2 — 615.2 Foreign government 95.6 102.9 — 198.5 Asset-backed — 19.6 — 19.6 Agency mortgage-backed — 17.4 — 17.4 Total fixed income securities trading, at fair value 137.7 759.1 — 896.8 Short-term investments trading, at fair value 7.7 — — 7.7 Equity investments trading, at fair value 757.8 — — 757.8 Catastrophe bonds trading, at fair value — 46.1 — 46.1 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 10.9 — 10.9 Liabilities under derivative contracts — interest rate swaps — (0.8 ) — (0.8 ) Liabilities under derivative contracts — foreign exchange contracts — (16.8 ) — (16.8 ) Loan notes issued by variable interest entities, at fair value — — (104.5 ) (104.5 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (3.1 ) (3.1 ) Total $ 2,596.6 $ 5,304.1 $ (107.6 ) $ 7,793.1 There were no maturities or transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2016 . The Company settled $87.4 million Level 3 liabilities in respect to the loan notes issued by the VIEs for the three months ended March 31, 2016 . As at March 31, 2016 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted of the loan notes issued by the VIEs. As at December 31, 2015 Level 1 Level 2 Level 3 Total ($ 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 Held for trading financial assets, at fair value U.S. government 27.3 — — 27.3 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, settlements or transfers between Level 1, Level 2 and Level 3 during the twelve months ended December 31, 2015 . There were no assets or liabilities that were classified as Level 3 as at December 31, 2015 , except for 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 three months ended March 31, 2016 and 2015 : Reconciliation of Liabilities Using Level 3 Inputs Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 ($ in millions) Balance at the beginning of the period (1) $ 190.6 $ 138.6 Distributed to third party (87.4 ) (64.8 ) Total change in fair value included in the statement of operations 4.4 2.9 Balance at the end of the period (1) $ 107.6 $ 76.7 (1) The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. Valuation of Fixed Income Securities . The Company’s fixed income securities are classified as either available for sale or trading and carried at fair value. As at March 31, 2016 and December 31, 2015 , 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. As at March 31, 2016 , the Company obtained an average of 2.3 quotes per fixed income investment, consistent with 2.0 quotes as at December 31, 2015 . Pricing sources used in pricing fixed income investments as at March 31, 2016 and December 31, 2015 were as follows: As at March 31, 2016 As at December 31, 2015 Index providers 84 % 85 % Pricing services 11 10 Broker-dealers 5 5 Total 100 % 100 % A summary of securities priced using pricing information from index providers as at March 31, 2016 and December 31, 2015 is provided below: As at March 31, 2016 As at December 31, 2015 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 $ 1,092.9 95 % $ 1,095.4 95 % U.S. agency 132.9 89 % 148.5 94 % Municipal 19.4 53 % 10.5 39 % Corporate 3,141.1 95 % 3,083.5 96 % Non-U.S. government-backed corporate 39.3 54 % 41.7 51 % Foreign government 513.4 59 % 517.6 63 % Asset-backed 50.9 53 % 55.3 57 % Non-agency commercial mortgage-backed 18.9 84 % 22.7 85 % Agency mortgage-backed 823.4 65 % 742.9 64 % Total fixed income securities $ 5,832.2 84 % $ 5,718.1 85 % Equities 757.8 99 % 736.4 100 % Total fixed income securities and equity investments $ 6,590.0 85 % $ 6,454.5 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 provider 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 . The Company’s 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. The Company’s 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 are not 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. These securities are classified within Level 1 as their fair values are based on quoted market prices in active markets from independent pricing sources. As at March 31, 2016 , the Company obtained an average of 4.0 quotes per equity investment, compared to 4.0 quotes as at December 31, 2015 . Pricing sources used in pricing equities as at March 31, 2016 and December 31, 2015 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 classified as 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 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. In 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 ( $100.0 million third-party funded) loan notes with a maturity date of September 17, 2018. The Company has elected to account for the Silverton Loan Notes at fair value using the guidance as prescribed under ASC 825, Financial Instruments as the Company believes it represents the most meaningful measurement basis for these liabilities. The Silverton Loan Notes are recorded at fair value at each reporting period and, as they are not quoted on an active market and contain significant unobservable inputs, they have been classified as a Level 3 instrument in the Company’s fair value hierarchy. The Silverton Loan Notes are unique because they are linked to the specific risks of the Company’s property catastrophe book. To determine the fair value of the Silverton Loan Notes, the Company runs an internal model which considers the seasonality of the risk assumed under the retrocessional agreement between Aspen Bermuda and Silverton. The seasonality used in the model is determined by applying the percentage of property catastrophe losses planned by the Company’s actuaries to the estimated written premium to determine earned premium for each quarter. The inputs to the internal valuation model are based on Company specific data due to the lack of availability of observable market inputs. Reserves for losses are the most significant unobservable input. An increase in reserves for losses would normally result in a decrease in the fair value of the Silverton Loan Notes while a decrease in reserves would normally result in an increase in the fair value of the Silverton Loan Notes. The observable and unobservable inputs used to determine the fair value of the 2016 Loan Notes, 2015 Loan Notes and 2014 Loan Notes as at March 31, 2016 and December 31, 2015 are presented in the table below: At March 31, 2016 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 107.6 (1) Internal Valuation Model Gross premiums written (O) $ 35.0 $ 38.9 Reserve for losses (U) $ 0.6 $ 4.2 Contract period (O) N/A 365 days Initial value of issuance (O) $ 220.0 $ 220.0 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 (1) 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 (1) The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. The observable and unobservable inputs represent the potential variation around the inputs used in the valuation model. The contract period is defined in the Silverton loan agreements and the initial value represents the funds received from third parties. |
Reinsurance
Reinsurance | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance The Company purchases retrocession and reinsurance to limit and diversify the Company’s risk exposure and increase its own insurance and reinsurance underwriting capacity. These agreements provide for recovery of a portion of losses and loss adjustment expenses from reinsurers. As is the case with most reinsurance contracts, the Company remains liable to the extent that reinsurers do not meet their obligations under these agreements, and therefore, in line with its risk management objectives, the Company evaluates the financial condition of its reinsurers and monitors concentrations of credit risk. The largest concentrations of reinsurance recoverables as at March 31, 2016 were 20.8% ( December 31, 2015 — 20.4% ) with Munich Re rated AA- by S&P, 18.9% ( December 31, 2015 — 20.0% ) with Lloyd’s syndicates rated A+ by S&P and 7.3% ( December 31, 2015 — 9.2% ) with Arch Re which is rated A+ by S&P. |
Derivative Contracts
Derivative Contracts | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following tables summarize information on the location and amounts of derivative fair values on the consolidated balance sheet as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Interest Rate Swaps Liabilities under Derivative Contracts $ 256.3 $ (0.8 ) (1) $ 756.3 $ 0.4 (1) Foreign Exchange Contracts Derivatives at Fair Value $ 262.4 $ 10.9 $ 217.7 $ 8.8 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 262.9 $ (17.7 ) $ 162.2 $ (2.8 ) (1) Net of $5.7 million of cash collateral provided to the counterparty, Goldman Sachs International ( $256.3 million notional) under an International Swap Dealers Association agreement, as security for the Company’s net liability position ( December 31, 2015 — $10.1 million ). As at March 31, 2016 As at December 31, 2015 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 85.5 $ 0.9 (1) $ 113.6 $ (1.2 ) (1) (1) Net of $4.2 million cash collateral ( December 31, 2015 — $ Nil ). The following tables provide the unrealized and realized gains/(losses) recorded in the statement of operations for the three months ended March 31, 2016 and 2015 : Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income for the Three 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 March 31, 2016 March 31, 2015 ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives $ (4.4 ) $ (4.6 ) Interest Rate Swaps Change in Fair Value of Derivatives $ (2.8 ) $ (3.2 ) Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income for the Three Months Ended Derivatives Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income March 31, 2016 March 31, 2015 ($ in millions) Foreign Exchange Contracts General, administrative and corporate expenses $ (1.1 ) $ (2.8 ) Foreign Exchange Contracts Net change from current period hedged transactions $ (2.1 ) $ (2.4 ) 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 March 31, 2016 , the Company held foreign exchange contracts that were not designated as hedging under ASC 815 with an aggregate notional value of $525.3 million ( December 31, 2015 — $379.9 million ). The foreign exchange contracts are recorded as derivatives at fair value with changes recorded as a change in fair value of derivatives in the statement of operations. For the three months ended March 31, 2016 , the impact of foreign exchange contracts on net income was a loss of $4.4 million ( March 31, 2015 — loss of $4.6 million ). As at March 31, 2016 , the Company held foreign exchange contracts that were designated as hedging under ASC 815 with an aggregate notional value of $85.5 million ( December 31, 2015 — $113.6 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 three months ended March 31, 2016 , the movement in other comprehensive income representing the effective portion was a net unrealized loss of $2.1 million ( March 31, 2015 — loss of $2.4 million ). As the foreign exchange contracts settle, the realized gain or loss is reclassified from other comprehensive income into general, administrative and corporate expenses of the statement of operations and other comprehensive income. For the three months ended March 31, 2016 , the amount recognized within general, administrative and corporate expenses for settled foreign exchange contracts was a realized loss of $1.1 million ( March 31, 2015 — loss of $2.8 million ). Interest Rate Swaps. As at March 31, 2016 , the Company held fixed for floating interest rate swaps with a total notional amount of $256.3 million ( December 31, 2015 — $756.3 million ) that are due to mature between August 2, 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 three months ended March 31, 2016 , there was a charge in respect of the interest rate swaps of $2.8 million ( March 31, 2015 — loss of $3.2 million ). As at March 31, 2016 , cash collateral with a fair value of $5.7 million was held by the Company’s counterparties to support the current valuation of the interest rate swaps ( December 31, 2015 — $10.1 million ). As at March 31, 2016 , no non-cash collateral was transferred to the Company by its counterparties ( December 31, 2015 — $ 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 March 31, 2016 , no amount was recorded in the consolidated balance sheet for the pledged assets. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 ($ in millions) Balance at the beginning of the period $ 361.1 $ 299.0 Acquisition costs deferred 176.8 154.1 Amortization of deferred policy acquisition costs (130.2 ) (119.3 ) Balance at the end of the period $ 407.7 $ 333.8 |
Reserves for Losses and Loss Ad
Reserves for Losses and Loss Adjustment Expenses | 3 Months Ended |
Mar. 31, 2016 | |
Insurance [Abstract] | |
Reserves for Losses and Loss Adjustment Expenses | Reserves for Losses and Loss Adjustment Expenses The following table represents a reconciliation of beginning and ending consolidated loss and loss adjustment expenses (“LAE”) reserves for the three months ended March 31, 2016 and twelve months ended December 31, 2015 : Three Months Ended March 31, 2016 Twelve Months Ended December 31, 2015 ($ in millions) Provision for losses and LAE at the start of the year $ 4,938.2 $ 4,750.8 Less reinsurance recoverable (354.8 ) (350.0 ) Net loss and LAE at the start of the year 4,583.4 4,400.8 Net loss and LAE expenses assumed 5.7 — Provision for losses and LAE for claims incurred: Current year 379.0 1,522.7 Prior years (21.6 ) (156.5 ) Total incurred 357.4 1,366.2 Losses and LAE payments for claims incurred: Current year (8.5 ) (141.9 ) Prior years (286.1 ) (966.6 ) Total paid (294.6 ) (1,108.5 ) Foreign exchange (gains) (6.4 ) (75.1 ) Net losses and LAE reserves at period end 4,645.5 4,583.4 Plus reinsurance recoverable on unpaid losses at period end 366.0 354.8 Provision for losses and LAE at the end of the relevant period $ 5,011.5 $ 4,938.2 For the three months ended March 31, 2016 , there was a reduction of $21.6 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a reduction of $27.5 million for the three months ended March 31, 2015 . The Company assumed $5.7 million of additional loss reserves as part of the acquisition of AgriLogic. For additional information on the reserve releases, please refer to “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Reserves for Losses and Loss Adjustment Expenses” below. |
Capital Structure
Capital Structure | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Capital Structure | Capital Structure The following table provides a summary of the Company’s authorized and issued share capital as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 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 60,675,142 92 60,918,373 92 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 127 127 Additional paid-in capital as at March 31, 2016 was $1,055.9 million ( December 31, 2015 — $1,075.3 million ). Additional paid-in capital includes the aggregate liquidation preferences of the Company’s preference shares of $568.2 million ( December 31, 2015 — $568.2 million ) less issue costs of $12.4 million ( December 31, 2015 — $12.4 million ). Ordinary Shares. The following table summarizes transactions in the Company’s ordinary shares during the three months ended March 31, 2016 : Number of Ordinary Shares Ordinary shares in issue as at December 31, 2015 60,918,373 Ordinary share transactions in the three months ended March 31, 2016 Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan 315,937 Ordinary shares issued to non-employee directors 9,071 Ordinary shares repurchased (568,239 ) Ordinary shares in issue as at March 31, 2016 60,675,142 Ordinary Share Repurchases . 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. Under open market repurchases, the Company acquired and cancelled 568,239 ordinary shares during the three months ended March 31, 2016 . The total consideration paid for the three months ended March 31, 2016 was $25.0 million with an average price of $44.00 per ordinary share for the three months ended March 31, 2016 . Under open market repurchases, the Company acquired and cancelled 787,138 ordinary shares for the three months ended March 31, 2015 . The total consideration paid for the three months ended March 31, 2015 was $36.5 million and the average price per ordinary share was $46.32 . Rights Agreement. On April 17, 2014, the Board of Directors 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 would have allowed 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 became exercisable. The Rights could not be exercisable until 10 business days after the public announcement that a person or group 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 could have been redeemed at any time at the discretion of the Board of Directors. As of March 31, 2016 , no Rights were exercisable or exercised. The Rights Agreement expired on its own terms on April 16, 2015. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Mar. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | Share-Based Payments The Company has issued options and other equity incentives under three arrangements: the employee incentive plans, the non-employee director plan and the employee share purchase plans. When options are exercised or other equity awards have vested, new ordinary shares are issued as the Company does not currently hold treasury shares. Employee and Non-Employee Director Awards. Employee options and other awards were granted under the Aspen 2003 Share Incentive Plan, as amended (the “2003 Share Incentive Plan”), prior to April 24, 2013 and thereafter under the 2013 Share Incentive Plan (the “2013 Share Incentive Plan”). The total number of ordinary shares that may be issued under the 2013 Share Incentive Plan is 2,845,683 ordinary shares, which includes 595,683 ordinary 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. The non-employee director awards are granted under the 2006 Stock Option Plan for Non-Employee Directors. Stock options were granted with an exercise price equivalent to the fair value of the ordinary share on the grant date. The weighted average value at grant date is determined using the Black-Scholes option pricing model. Stock options typically vest over a three -year period with a ten -year exercise period (except for options granted in 2007 which had a seven -year exercise period) with vesting dependent on time and performance conditions established at the time of grant. No options were granted during the three months ended March 31, 2016 ( 2015 — Nil ) and 27,210 options were exercised and ordinary shares issued in the three months ended March 31, 2016 ( 2015 — 83,938 options). No charges against income were made in respect of employee options for the three months ended March 31, 2016 ( 2015 — $ Nil ). Restricted share units (“RSUs”) granted to employees typically vest over a three -year period based on continued service. Some of the RSU grants vest at year-end, while others vest on the anniversary of the date of grant or when the Compensation Committee of the Board of Directors agrees to deliver the RSUs. The fair value of the RSUs is based on the closing price on the date of the grant adjusted for illiquidity and is expensed through the income statement evenly over the vesting period. In the three months ended March 31, 2016 , the Company granted to its employees 275,719 RSUs ( 2015 — 238,315 ). Compensation costs charged against income in respect of RSUs for the three months ended March 31, 2016 were $2.1 million ( 2015 — $2.5 million . In the case of non-employee directors, generally one-twelfth of the RSUs vest on each one month anniversary of the date of grant, with 100% of the RSUs vesting on the first anniversary of the date of grant. On January 27, 2016 (with a grant date of February 8, 2016), the Board of Directors approved a total of 24,456 RSUs for the non-employee directors (February 9, 2015 — 27,620 RSUs) and 10,952 RSUs to the Chairman (February 9, 2015 — 12,154 RSUs). Compensation costs charged against income in respect of non-employee director RSUs for the three months ended March 31, 2016 were $0.4 million ( 2015 — $0.3 million ). The total fair value adjustment for all RSUs for the three months ended March 31, 2016 was $0.4 million ( 2015 — $0.3 million ). The total tax credit recognized by the Company in relation to RSUs in the three months ended March 31, 2016 was $0.5 million ( 2015 — $1.1 million ). Performance Shares. During the three months ended March 31, 2016 , the Company granted 278,477 performance shares to employees ( 2015 — 277,585 ). The performance shares are 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. One-third of the grant are eligible for vesting each year based on a formula, and are only issuable at the end of the three-year period. If the diluted BVPS growth achieved in 2016 is: • less than 4.65% , then the portion of the performance shares subject to the vesting conditions in such year will be forfeited (i.e., one-third of the initial grant); • between 4.65% and 9.3% , 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 9.3% and 18.6% , 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 2016 , the entire movement in AOCI will be excluded. Interest rate movements and credit spread movements in AOCI can be fairly significant and impact growth in BVPS which management does not have any control over. The Compensation Committee will review the impact of any capital management actions undertaken during 2016 , including share repurchases and special dividends, and consider whether any further adjustments to growth in BVPS should be made in the context of such actions. The calculation of BVPS for 2016 will exclude all transactional expenses incurred in connection with any transaction which, if consummated, would result in a change in control, including without limitation the cost of defending against any such transaction and any third-party legal and advisory costs. The Compensation Committee believes that it would not be appropriate for employees’ performance-related compensation to be impacted by these costs. The Compensation Committee will determine the vesting conditions for the 2017 and 2018 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 the shares eligible for vesting in 2017 and 2018 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, then only 100% (and no more) of the ordinary 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 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 ordinary share price on the date of the grant adjusted for illiquidity less a deduction for expected dividends which would not accrue during the vesting period. Compensation costs charged against income in the three months ended March 31, 2016 in respect of performance shares were $1.6 million ( 2015 — $0.2 million ). The total tax recognized by the Company in relation to performance shares in the three months ended March 31, 2016 was a tax credit of $0.4 million ( 2015 — $0.1 million ). Phantom Shares. During the three months ended March 31, 2016 , the Compensation Committee approved the grant of 146,357 phantom shares to its employees ( 2015 — 135,651 ). 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 2016 performance shares, with the difference being that any vested amount would be paid in cash in lieu of ordinary shares. As ordinary shares are not issued, the phantom shares have no dilutive effect. The fair value of the phantom shares is based on the closing ordinary share price on the date of the grant adjusted for illiquidity, 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 ordinary 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 three months ended March 31, 2016 in respect of phantom shares were $0.4 million ( 2015 — $0.9 million ) with a fair value adjustment for the three months ended March 31, 2016 of $1.0 million ( 2015 — $1.1 million ). The total tax credit recognized by the Company in relation to phantom shares in the three months ended March 31, 2016 was $0.2 million ( 2015 — $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 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 Employee Share Purchase Plan, employees can save up to $500 per month over a two -year period, at the end of which they will be eligible to purchase the Company’s ordinary 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 £500 per month over a three -year period, at the end of which they will be eligible to purchase the Company’s ordinary shares at a discounted price. The purchase price will be eighty-five percent ( 85% ) of the fair market value of an ordinary share on the offering date which may be adjusted upon changes in capitalization of the Company. Under the ESPP, 525 ordinary shares were exercised and issued during the three months ended March 31, 2016 ( 2015 — 52,452 shares). Compensation costs charged against income in the three months ended March 31, 2016 in respect of the ESPP were $0.3 million ( 2015 — $0.3 million ). |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets and Goodwill The following table provides a summary of the Company’s intangible assets for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trade Mark $ 1.6 4.0 $ (0.1 ) $ 5.5 $ 1.6 $ — $ 1.6 Insurance Licenses 16.6 — — 16.6 16.6 — 16.6 Agency Relationships — 25.0 (0.4 ) 24.6 — — — Non-compete Agreements — 2.9 (0.1 ) 2.8 — — — Value of Business Acquired — 1.8 — 1.8 — — — Consulting Relationships — 1.0 (0.1 ) 0.9 — — — Goodwill — 22.1 — 22.1 — — — Total $ 18.2 $ 56.8 $ (0.7 ) $ 74.3 $ 18.2 $ — $ 18.2 On January 19, 2016, Aspen U.S. Holdings acquired 100% of the equity 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 . In addition, the Company recognized $14.1 million of contingent consideration, with a total maximum payable of $22.8 million , subject to the future performance of the business and $2.0 million of ceding commission. The total consideration for the acquisition was $69.1 million . A significant proportion of the acquired business was represented by intangible assets, specifically $25.0 million for agency relationships, $4.0 million for the right to use the AgriLogic trademark, $2.9 million for non-compete agreements, $1.8 million for the value of business acquired and $1.0 million for consultancy relationships. In addition, $12.0 million of software was acquired and is recognized in the balance sheet under office properties and equipment along with $0.3 million of residual net assets. The total net assets acquired of $47.0 million resulted in the Company recognizing a total of $22.1 million in goodwill for the acquisition of AgriLogic. License to use the “AgriLogic” Trademark. As part of the acquisition of AgriLogic, the Company acquired the right to use the AgriLogic trademark in the United States. The Company valued the trademark at $4.0 million with an estimated economic useful life of 10 years. The Company will amortize the estimated value of the trademark over its estimated useful life. Agency Relationships. As part of the acquisition of AgriLogic, the Company valued the agency relationships at $25.0 million with an estimated economic useful life of 15 years. The Company will amortize the estimated value of the agency relationships over their estimated useful life. Non-compete Agreements. As part of the acquisition of AgriLogic, the Company valued the non-compete agreements at $2.9 million with an estimated economic useful life of 5 years. The Company will amortize the estimated value of the non-compete agreements over their estimated useful life. Value of Business Acquired. As part of the acquisition of AgriLogic, the Company recognized a $1.8 million asset for value of business acquired (“VOBA”) consisting of the inforce unearned premium reserve and claims reserves at fair value. The Company will amortize the VOBA in line with the unwinding of the acquired unearned premium balances and loss reserves. Given the short tail nature of the book, the Company anticipates that the VOBA will be fully amortized by the end of 2016. Consulting Relationships. As part of the acquisition of AgriLogic, the Company valued the consulting relationships at $1.0 million with an estimated economic useful life of 10 years. The Company will amortize the estimated value of the consulting relationships over their estimated useful life. Goodwill. As part of the acquisition of AgriLogic, the Company valued the goodwill at $22.1 million . The goodwill is deemed to have an indefinite useful life and will be assessed for impairment annually. In addition to the intangible assets and goodwill associated with the AgriLogic acquisition, the Company has the following intangible assets from prior transactions. 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 March 31, 2016 , the value of the license to use the Aspen trademark was $1.6 million ( December 31, 2015 — $1.6 million ). The trademark has an indefinite useful life and is tested for impairment annually or when events or changes in circumstances indicate that the asset might be impaired. Insurance Licenses. The total value of the licenses as at March 31, 2016 was $16.6 million ( December 31, 2015 — $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 $2.1 million of acquired licenses held by Aspen U.K. The insurance licenses are considered to have an indefinite life and are not amortized. The licenses are tested for impairment annually or when events or changes in circumstances indicate that the asset might be impaired. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities (a) Restricted assets The Company is obliged by the terms of its contractual obligations to specific policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in deposits and trust funds for the benefit of policyholders. The following table details the forms and value of the Company’s restricted assets as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,316.2 $ 1,421.0 Third party 2,370.1 2,265.6 Letters of credit / guarantees (1) 697.8 708.5 Total restricted assets $ 4,384.1 $ 4,395.1 Total as percent of investable assets (2) 49.5 % 49.6 % (1) As at March 31, 2016 , the Company pledged funds of $687.5 million and £7.2 million ( December 31, 2015 — $697.6 million and £7.1 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. 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, comprises cash and investments as at March 31, 2016 in the amount of $447.2 million ( December 31, 2015 — $436.8 million ). The amounts provided as Funds at Lloyd’s will be drawn upon and become a liability of the Company in the event Syndicate 4711 declares 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. Aspen Managing Agency Limited, the managing agent to Syndicate 4711, is also required by Lloyd’s to maintain a minimum level of capital which as at March 31, 2016 was £0.4 million ( December 31, 2015 — £0.4 million ). This is not available for distribution by the Company for the payment of dividends. Credit Facility. On June 12, 2013, Aspen Holdings and certain of its direct and indirect subsidiaries (collectively, the “Borrowers”) entered into an amended and restated credit agreement (the “Credit Agreement”) with various lenders and Barclays Bank PLC, as administrative agent (“Barclays”), which amends and restates the credit agreement dated as of July 30, 2010 among Aspen Holdings, the Borrowers, various lenders and Barclays. The credit facility may be used primarily for letters of credit in connection with the Company’s insurance and reinsurance businesses to finance its working capital needs and those of our subsidiaries and for other general corporate purposes. Initial availability under the credit facility is $200.0 million and the Company has 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 March 31, 2016 , 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 our 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. The credit facility also contains customary provisions in respect of successor companies resulting from mergers and acquisitions assuming obligations thereunder. On December 12, 2014, Aspen Holdings and the Borrowers entered into a first amendment to an amended and restated credit agreement, dated June 12, 2013, with various lenders and Barclays. Aspen Holdings has 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 amended and restated 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 June 30, 2014, Aspen Bermuda and Citibank Europe plc (“Citi Europe”) replaced an existing letter of credit facility with a new letter of credit facility in a maximum aggregate amount of up to $575.0 million (the “LOC Facility”). Under the LOC Facility, which will expire on June 30, 2016, Aspen Bermuda will pay to Citi Europe (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 LOC Facility. Aspen Bermuda will also pay interest on the amount drawn by any beneficiary under a credit provided under the 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 LOC Facility is used to secure obligations of Aspen Bermuda to its policyholders. In addition to the LOC Facility, we also use regulatory trusts to secure our obligations to policyholders. 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. Aspen U.K. and Aspen Bermuda had a $100.0 million secured letter of credit facility agreement with Barclays. All letters of credit issued under the facility were used to support reinsurance obligations of the parties to the agreement and their respective subsidiaries. The Company did not extend the maturity date of the Barclays 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. As at March 31, 2016 and December 31, 2015, the Company had no outstanding collateralized letters of credit under this facility. For further information relating to the Company’s credit facilities, refer to Note 23 of the “Notes to Audited Consolidated Financial Statements” in the Company’s 2015 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission. Interest Rate Swaps. As at March 31, 2016 , cash collateral with a fair value of $5.7 million was held by the Company’s counterparties to support the current valuation of the interest rate swaps ( December 31, 2015 — $10.1 million ). For more information, refer to Note 10 of these unaudited condensed consolidated financial statements. (b) Operating leases Amounts outstanding under operating leases net of subleases as at March 31, 2016 were: 2016 2017 2018 2019 2020 Later Total ($ in millions) Operating Lease Obligations $ 8.5 $ 16.4 $ 15.7 $ 13.9 $ 10.0 $ 89.3 $ 153.8 (c) Contingent liabilities In common with the rest of the insurance and reinsurance industry, the Company is 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, notably 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 March 31, 2016 , 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. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements Policy | Accounting Pronouncements Adopted in 2016 On May 21, 2015, the Financial Accounting Standards Board (“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 roll forward 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 2016 Annual report on Form 10-K and its Quarterly reports on Form 10-Q throughout 2017. 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, 2015 and will impact the Company’s provisional amounts booked in respect to the acquisition of AG Logic Holdings LLC (“AgriLogic”). Other accounting pronouncements were adopted during the three months ended March 31, 2016 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. Accounting Pronouncements Not Yet Adopted On January 5, 2016, the FASB issued ASU 2016-1, “ Financial Instruments - Overall (Subtopic 825-10) ” which enhances the reporting model for financial instruments. In particular, the ASU requires all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under the equity method of accounting or those that result in consolidation of the investee). The amendments required as a result of this update are effective for fiscal years beginning after December 15, 2017. The Company does not expect this ASU to have a material impact on the Company’s consolidated financial statements as the Company’s equity portfolio is classified as held for trading with changes in fair value recognized through net income. On February 25, 2016, the FASB issued ASU 2016-2, “ Leases (Topic 842) ” which supersedes the leases requirements in Topic 840 and establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. The amendments of this update are effective for fiscal years beginning after December 15, 2018. The ASU is expected to have a material impact on the Company’s consolidated financial statements, specifically increasing the Company’s assets and liabilities as all leases greater than twelve months will be recognized on the balance sheet as a right of use asset and lease liability. The ASU will not have a material impact on the Company’s consolidated income statement. On March 30, 2016, the FASB issued ASU 2016-9, “ Compensation - Stock Compensation (Topic 718) ” which forms part of the simplification initiative to reduce complexity in accounting standards. The areas for simplification in this ASU involve several aspects of the accounting for share-based payment transactions and the amendments of this update are effective for fiscal years beginning after December 15, 2016. The Company does not expect this ASU to have a material impact on its consolidated financial results but expects that 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. Other accounting pronouncements were issued during the three months ended March 31, 2016 which were not relevant to the Company. |
Reclassifications from Accumu24
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Reclassification | The following table sets out the components of the Company’s accumulated other comprehensive income (“AOCI”) that are reclassified into the unaudited condensed consolidated statement of operations for the three months ended March 31, 2016 and 2015 : Amount Reclassified from AOCI Details about the AOCI Components Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Affected Line Item in the Unaudited Condensed Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gains on sale of securities $ 7.1 $ 33.5 Realized and unrealized investment gains Realized (losses) on sale of securities (2.9 ) (1.2 ) Realized and unrealized investment losses 4.2 32.3 Income from operations before income tax Tax on net realized gains of securities (0.5 ) (0.4 ) Income tax expense $ 3.7 $ 31.9 Net income Realized derivatives: Net realized (losses) on settled derivatives 1.1 $ 2.8 General, administrative and corporate expenses $ 1.1 $ 2.8 Net income Total reclassifications from AOCI to the statement of operations, net of income tax $ 4.8 $ 34.7 Net income |
Earnings per Ordinary Share (Ta
Earnings per Ordinary Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 ordinary share for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 ($ in millions, except share and per share amounts) Net income $ 114.4 $ 128.0 Preference share dividends (9.5 ) (9.5 ) Net amount attributable to non-controlling interest 0.2 — Basic and diluted net income available to ordinary shareholders $ 105.1 $ 118.5 Ordinary shares: Basic weighted average ordinary shares 60,867,815 62,159,303 Weighted average effect of dilutive securities (1) 1,616,123 1,373,359 Total diluted weighted average ordinary shares 62,483,938 63,532,662 Earnings per ordinary share: Basic $ 1.73 $ 1.91 Diluted $ 1.68 $ 1.87 (1) 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 14. |
Summary of Declared Dividends | Dividends. On April 21, 2016, the Company’s Board of Directors (“Board of Directors”) declared the following quarterly dividends: Dividend Payable on: Record Date: Ordinary shares $ 0.22 May 25, 2016 May 9, 2016 7.401% preference shares $ 0.462563 July 1, 2016 June 15, 2016 7.250% preference shares $ 0.4531 July 1, 2016 June 15, 2016 5.95% preference shares $ 0.3719 July 1, 2016 June 15, 2016 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 517.6 $ 458.1 $ 975.7 Net written premiums 449.5 350.2 799.7 Gross earned premiums 306.8 445.6 752.4 Net earned premiums 280.3 382.8 663.1 Underwriting Expenses Losses and loss adjustment expenses 134.5 222.9 357.4 Amortization of deferred policy acquisition costs 59.4 70.8 130.2 General and administrative expenses 44.1 58.6 102.7 Underwriting income $ 42.3 $ 30.5 72.8 Corporate expenses (17.1 ) Net investment income 49.5 Realized and unrealized investment gains 65.6 Realized and unrealized investment losses (20.6 ) Change in fair value of loan notes issued by variable interest entities (4.4 ) Change in fair value of derivatives (7.2 ) Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange (losses) (15.7 ) Other income 1.4 Income before tax $ 116.9 Net reserves for loss and loss adjustment expenses $ 2,433.0 $ 2,212.5 $ 4,645.5 Ratios Loss ratio 48.0 % 58.2 % 53.9 % Policy acquisition expense ratio 21.2 18.5 19.6 General and administrative expense ratio 15.7 15.3 18.1 (1) Expense ratio 36.9 33.8 37.7 Combined ratio 84.9 % 92.0 % 91.6 % (1) The general and administrative expense ratio in the total column includes corporate expenses. Three Months Ended March 31, 2015 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 484.8 $ 434.4 $ 919.2 Net written premiums 442.1 321.1 763.2 Gross earned premiums 265.8 415.1 680.9 Net earned premiums 249.4 344.2 593.6 Underwriting Expenses Losses and loss adjustment expenses 105.5 200.6 306.1 Amortization of deferred policy acquisition costs 53.4 65.9 119.3 General and administrative expenses 32.4 55.3 87.7 Underwriting income $ 58.1 $ 22.4 80.5 Corporate expenses (14.5 ) Net investment income 47.4 Realized and unrealized investment gains 57.4 Realized and unrealized investment losses (14.5 ) Change in fair value of loan notes issued by variable interest entities (2.9 ) Change in fair value of derivatives (7.8 ) Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange (losses) (6.4 ) Other income 3.9 Other expenses (2.6 ) Income before tax $ 133.1 Net reserves for loss and loss adjustment expenses $ 2,410.9 $ 1,927.9 $ 4,338.8 Ratios Loss ratio 42.3 % 58.3 % 51.6 % Policy acquisition expense ratio 21.4 19.1 20.1 General and administrative expense ratio 13.0 16.1 17.2 (1) Expense ratio 34.4 35.2 37.3 Combined ratio 76.7 % 93.5 % 88.9 % (1) The general and administrative expense ratio in the total column includes corporate expenses. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | Investment Income. The following table summarizes investment income for the three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) Fixed income securities — Available for sale $ 36.6 $ 35.2 Fixed income securities — Trading 7.4 7.0 Short-term investments — Available for sale 0.1 0.4 Fixed term deposits (included in cash and cash equivalents) 0.5 1.1 Equity securities — Trading 6.9 6.2 Catastrophe bonds — Trading 0.6 0.4 Total $ 52.1 $ 50.3 Investment expenses (2.6 ) (2.9 ) Net investment income $ 49.5 $ 47.4 |
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 three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 7.1 $ 6.2 Fixed income securities — gross realized (losses) (2.4 ) (0.5 ) Equity securities — gross realized gains — 31.9 Equity securities — gross realized (losses) — (3.0 ) Cash and cash equivalents — gross realized (losses) (0.7 ) — Trading: Fixed income securities — gross realized gains 1.2 2.0 Fixed income securities — gross realized (losses) (5.8 ) (2.2 ) Equity securities — gross realized gains 5.9 16.5 Equity securities — gross realized (losses) (11.5 ) (8.8 ) Catastrophe bonds (0.2 ) — Net change in gross unrealized gains 51.4 0.8 Total net realized and unrealized investment gains recorded in the statement of operations $ 45.0 $ 42.9 Change in available for sale net unrealized gains: Fixed income securities 85.0 27.3 Short-term investments — 0.1 Equity securities — (27.3 ) Total change in pre-tax available for sale unrealized gains 85.0 0.1 Change in taxes (8.1 ) (2.9 ) Total change in net unrealized gains, net of taxes, recorded in other comprehensive income $ 76.9 $ (2.8 ) |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Available for Sale Investments in Fixed Income Maturities, Short-Term Investments and Equities | 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 March 31, 2016 and December 31, 2015 : As at March 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,084.5 $ 27.2 $ — $ 1,111.7 U.S. agency 145.4 4.5 — 149.9 Municipal 30.8 2.3 (0.2 ) 32.9 Corporate 2,599.8 83.7 (2.6 ) 2,680.9 Non-U.S. government-backed corporate 71.4 1.1 — 72.5 Foreign government 660.4 14.3 (0.2 ) 674.5 Asset-backed 75.2 1.1 — 76.3 Non-agency commercial mortgage-backed 21.6 1.0 — 22.6 Agency mortgage-backed 1,206.0 37.2 (0.8 ) 1,242.4 Total fixed income securities — Available for sale 5,895.1 172.4 (3.8 ) 6,063.7 Total short-term investments — Available for sale 135.3 — — 135.3 Total $ 6,030.4 $ 172.4 $ (3.8 ) $ 6,199.0 As at March 31, 2016 the Company no longer held equity investments in its available for sale portfolio. All equities are held in the trading portfolio. 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 |
Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities | 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 March 31, 2016 and December 31, 2015 : As at March 31, 2016 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 41.8 $ 0.3 $ — $ 42.1 Municipal 4.0 — — 4.0 Corporate 602.0 15.2 (2.0 ) 615.2 Foreign government 192.7 6.7 (0.9 ) 198.5 Asset-backed 19.8 — (0.2 ) 19.6 Agency mortgage-backed 17.4 — — 17.4 Total fixed income securities — Trading 877.7 22.2 (3.1 ) 896.8 Total short-term investments — Trading 7.7 — — 7.7 Total equity securities — Trading 700.1 89.3 (31.6 ) 757.8 Total catastrophe bonds — Trading 46.1 0.1 (0.1 ) 46.1 Total $ 1,631.6 $ 111.6 $ (34.8 ) $ 1,708.4 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 |
Other Investments | The tables below show the Company’s investments in the MVI and Chaspark for the three months ended March 31, 2016 and March 31, 2015 : For the Three Months Ended March 31, 2016 MVI Chaspark Total ($ in millions) Opening and closing undistributed value of investment $ 0.8 $ 8.7 $ 9.5 For the Three Months Ended March 31, 2015 MVI Chaspark Total ($ in millions) Opening undistributed value of investment $ — $ 8.7 $ 8.7 Initial investment 0.8 — $ 0.8 Closing value of investment $ 0.8 $ 8.7 $ 9.5 |
Summary of Fixed Maturities | Fixed Income Securities. The scheduled maturity distribution of available for sale fixed income securities as at March 31, 2016 and December 31, 2015 is set forth in the tables 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 March 31, 2016 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 581.0 $ 583.2 AA Due after one year through five years 2,835.6 2,910.3 AA- Due after five years through ten years 1,072.0 1,114.7 A+ Due after ten years 103.7 114.2 A+ Subtotal 4,592.3 4,722.4 Non-agency commercial mortgage-backed 21.6 22.6 AA+ Agency mortgage-backed 1,206.0 1,242.4 AA+ Asset-backed 75.2 76.3 AAA Total fixed income securities — Available for sale $ 5,895.1 $ 6,063.7 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 |
Aggregate Fair Value and Gross Unrealized Loss by Type of Security | Gross Unrealized Loss. The following tables summarize as at March 31, 2016 and December 31, 2015 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: As at March 31, 2016 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Number of Securities ($ in millions) U.S. government $ 55.5 $ — $ 3.2 $ — $ 58.7 $ — 10 U.S. agency 1.3 — — — 1.3 — 1 Municipal 3.9 (0.2 ) — — 3.9 (0.2 ) 4 Corporate 232.4 (2.0 ) 56.4 (0.6 ) 288.8 (2.6 ) 144 Non-U.S. government-backed corporate 4.3 — — — 4.3 — 3 Foreign government 92.8 (0.2 ) 34.7 — 127.5 (0.2 ) 15 Asset-backed 7.7 — 4.1 — 11.8 — 15 Agency mortgage-backed 32.3 — 115.4 (0.8 ) 147.7 (0.8 ) 48 Total fixed income securities — Available for sale 430.2 (2.4 ) 213.8 (1.4 ) 644.0 (3.8 ) 240 Total short-term investments — Available for sale 9.8 — — — 9.8 — 9 Total $ 440.0 $ (2.4 ) $ 213.8 $ (1.4 ) $ 653.8 $ (3.8 ) 249 As at December 31, 2015 0-12 months Over 12 months Total Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss Fair Market Value Gross Unrealized Loss 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 |
Analysis of Investment Purchases/Sales and Maturities | Investment Purchases and Sales. The following table summarizes investment purchases, sales and maturities for the three months ended March 31, 2016 and 2015 : For the Three Months Ended March 31, 2016 March 31, 2015 ($ in millions) (Purchases) of fixed income securities — Available for sale $ (682.9 ) $ (483.7 ) (Purchases) of fixed income securities — Trading (215.9 ) (153.4 ) (Purchases) of equity securities — Trading (60.3 ) (186.7 ) Proceeds from sales and maturities of fixed income securities — Available for sale 640.0 540.7 Proceeds from sales and maturities of fixed income securities — Trading 132.2 133.8 Proceeds from sales of equity securities — Available for sale — 108.6 Proceeds from sales of equity securities — Trading 59.1 83.7 Net change in (payable)/receivable for securities (purchased)/sold 23.6 15.9 (Purchases) of short-term investments — Available for sale (57.4 ) (62.1 ) Proceeds from short-term investments — Available for sale 88.7 123.4 (Purchases) of short-term investments — Trading — (12.8 ) Proceeds from short-term investments — Trading 2.1 12.3 Net proceeds of catastrophe bonds — Trading 8.9 1.8 Net (purchases)/proceeds for the period $ (61.9 ) $ 121.5 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 as at March 31, 2016 and December 31, 2015 , respectively: As at March 31, 2016 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,111.7 $ — $ — $ 1,111.7 U.S. agency — 149.9 — 149.9 Municipal — 32.9 — 32.9 Corporate — 2,680.9 — 2,680.9 Non-U.S. government-backed corporate — 72.5 — 72.5 Foreign government 480.6 193.9 — 674.5 Asset-backed — 76.3 — 76.3 Non-agency commercial mortgage-backed — 22.6 — 22.6 Agency mortgage-backed — 1,242.4 — 1,242.4 Total fixed income securities available for sale, at fair value 1,592.3 4,471.4 — 6,063.7 Short-term investments available for sale, at fair value 101.1 34.2 — 135.3 Held for trading financial assets, at fair value U.S. government 42.1 — — 42.1 Municipal — 4.0 — 4.0 Corporate — 615.2 — 615.2 Foreign government 95.6 102.9 — 198.5 Asset-backed — 19.6 — 19.6 Agency mortgage-backed — 17.4 — 17.4 Total fixed income securities trading, at fair value 137.7 759.1 — 896.8 Short-term investments trading, at fair value 7.7 — — 7.7 Equity investments trading, at fair value 757.8 — — 757.8 Catastrophe bonds trading, at fair value — 46.1 — 46.1 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 10.9 — 10.9 Liabilities under derivative contracts — interest rate swaps — (0.8 ) — (0.8 ) Liabilities under derivative contracts — foreign exchange contracts — (16.8 ) — (16.8 ) Loan notes issued by variable interest entities, at fair value — — (104.5 ) (104.5 ) Loan notes issued by variable interest entities, at fair value (classified as a current liability) — — (3.1 ) (3.1 ) Total $ 2,596.6 $ 5,304.1 $ (107.6 ) $ 7,793.1 There were no maturities or transfers between Level 1, Level 2 and Level 3 during the three months ended March 31, 2016 . The Company settled $87.4 million Level 3 liabilities in respect to the loan notes issued by the VIEs for the three months ended March 31, 2016 . As at March 31, 2016 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted of the loan notes issued by the VIEs. As at December 31, 2015 Level 1 Level 2 Level 3 Total ($ 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 Held for trading financial assets, at fair value U.S. government 27.3 — — 27.3 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 |
Reconciliation of Liabilities Using Level 3 Inputs | 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 three months ended March 31, 2016 and 2015 : Reconciliation of Liabilities Using Level 3 Inputs Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 ($ in millions) Balance at the beginning of the period (1) $ 190.6 $ 138.6 Distributed to third party (87.4 ) (64.8 ) Total change in fair value included in the statement of operations 4.4 2.9 Balance at the end of the period (1) $ 107.6 $ 76.7 (1) The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. |
Pricing Sources Used in Pricing Fixed Income Investments | Pricing sources used in pricing fixed income investments as at March 31, 2016 and December 31, 2015 were as follows: As at March 31, 2016 As at December 31, 2015 Index providers 84 % 85 % Pricing services 11 10 Broker-dealers 5 5 Total 100 % 100 % |
Summary of Securities Priced Using Pricing Information from Index Providers | A summary of securities priced using pricing information from index providers as at March 31, 2016 and December 31, 2015 is provided below: As at March 31, 2016 As at December 31, 2015 Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type Fair Market Value Determined using Prices from Index Providers % of Total Fair Value by Security Type ($ in millions, except for percentages) U.S. government $ 1,092.9 95 % $ 1,095.4 95 % U.S. agency 132.9 89 % 148.5 94 % Municipal 19.4 53 % 10.5 39 % Corporate 3,141.1 95 % 3,083.5 96 % Non-U.S. government-backed corporate 39.3 54 % 41.7 51 % Foreign government 513.4 59 % 517.6 63 % Asset-backed 50.9 53 % 55.3 57 % Non-agency commercial mortgage-backed 18.9 84 % 22.7 85 % Agency mortgage-backed 823.4 65 % 742.9 64 % Total fixed income securities $ 5,832.2 84 % $ 5,718.1 85 % Equities 757.8 99 % 736.4 100 % Total fixed income securities and equity investments $ 6,590.0 85 % $ 6,454.5 86 % |
Long-term Debt Issued by Silverton | The observable and unobservable inputs used to determine the fair value of the 2016 Loan Notes, 2015 Loan Notes and 2014 Loan Notes as at March 31, 2016 and December 31, 2015 are presented in the table below: At March 31, 2016 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan notes held by third parties $ 107.6 (1) Internal Valuation Model Gross premiums written (O) $ 35.0 $ 38.9 Reserve for losses (U) $ 0.6 $ 4.2 Contract period (O) N/A 365 days Initial value of issuance (O) $ 220.0 $ 220.0 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 (1) 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 (1) The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following tables summarize information on the location and amounts of derivative fair values on the consolidated balance sheet as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Interest Rate Swaps Liabilities under Derivative Contracts $ 256.3 $ (0.8 ) (1) $ 756.3 $ 0.4 (1) Foreign Exchange Contracts Derivatives at Fair Value $ 262.4 $ 10.9 $ 217.7 $ 8.8 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 262.9 $ (17.7 ) $ 162.2 $ (2.8 ) (1) Net of $5.7 million of cash collateral provided to the counterparty, Goldman Sachs International ( $256.3 million notional) under an International Swap Dealers Association agreement, as security for the Company’s net liability position ( December 31, 2015 — $10.1 million ). As at March 31, 2016 As at December 31, 2015 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Liabilities under Derivative Contracts $ 85.5 $ 0.9 (1) $ 113.6 $ (1.2 ) (1) (1) Net of $4.2 million cash collateral ( December 31, 2015 — $ 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 three months ended March 31, 2016 and 2015 : Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income for the Three 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 March 31, 2016 March 31, 2015 ($ in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives $ (4.4 ) $ (4.6 ) Interest Rate Swaps Change in Fair Value of Derivatives $ (2.8 ) $ (3.2 ) Amount of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income for the Three Months Ended Derivatives Designated as Hedging Instruments Under ASC 815 Location of Income/(Loss) Recognized in the Statement of Operations and Other Comprehensive Income March 31, 2016 March 31, 2015 ($ in millions) Foreign Exchange Contracts General, administrative and corporate expenses $ (1.1 ) $ (2.8 ) Foreign Exchange Contracts Net change from current period hedged transactions $ (2.1 ) $ (2.4 ) |
Deferred Policy Acquisition C30
Deferred Policy Acquisition Costs (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 2015 ($ in millions) Balance at the beginning of the period $ 361.1 $ 299.0 Acquisition costs deferred 176.8 154.1 Amortization of deferred policy acquisition costs (130.2 ) (119.3 ) Balance at the end of the period $ 407.7 $ 333.8 |
Reserves for Losses and Loss 31
Reserves for Losses and Loss Adjustment Expenses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 loss adjustment expenses (“LAE”) reserves for the three months ended March 31, 2016 and twelve months ended December 31, 2015 : Three Months Ended March 31, 2016 Twelve Months Ended December 31, 2015 ($ in millions) Provision for losses and LAE at the start of the year $ 4,938.2 $ 4,750.8 Less reinsurance recoverable (354.8 ) (350.0 ) Net loss and LAE at the start of the year 4,583.4 4,400.8 Net loss and LAE expenses assumed 5.7 — Provision for losses and LAE for claims incurred: Current year 379.0 1,522.7 Prior years (21.6 ) (156.5 ) Total incurred 357.4 1,366.2 Losses and LAE payments for claims incurred: Current year (8.5 ) (141.9 ) Prior years (286.1 ) (966.6 ) Total paid (294.6 ) (1,108.5 ) Foreign exchange (gains) (6.4 ) (75.1 ) Net losses and LAE reserves at period end 4,645.5 4,583.4 Plus reinsurance recoverable on unpaid losses at period end 366.0 354.8 Provision for losses and LAE at the end of the relevant period $ 5,011.5 $ 4,938.2 |
Capital Structure (Tables)
Capital Structure (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Summary of Authorized and Issued Share Capital | The following table provides a summary of the Company’s authorized and issued share capital as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 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 60,675,142 92 60,918,373 92 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 $25 per share 11,000,000 17 11,000,000 17 Total issued share capital 127 127 |
Summary of Ordinary Shares | The following table summarizes transactions in the Company’s ordinary shares during the three months ended March 31, 2016 : Number of Ordinary Shares Ordinary shares in issue as at December 31, 2015 60,918,373 Ordinary share transactions in the three months ended March 31, 2016 Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan 315,937 Ordinary shares issued to non-employee directors 9,071 Ordinary shares repurchased (568,239 ) Ordinary shares in issue as at March 31, 2016 60,675,142 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Intangible Assets | The following table provides a summary of the Company’s intangible assets for the three months ended March 31, 2016 and 2015 : Three Months Ended March 31, 2016 Three Months Ended March 31, 2015 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trade Mark $ 1.6 4.0 $ (0.1 ) $ 5.5 $ 1.6 $ — $ 1.6 Insurance Licenses 16.6 — — 16.6 16.6 — 16.6 Agency Relationships — 25.0 (0.4 ) 24.6 — — — Non-compete Agreements — 2.9 (0.1 ) 2.8 — — — Value of Business Acquired — 1.8 — 1.8 — — — Consulting Relationships — 1.0 (0.1 ) 0.9 — — — Goodwill — 22.1 — 22.1 — — — Total $ 18.2 $ 56.8 $ (0.7 ) $ 74.3 $ 18.2 $ — $ 18.2 |
Commitments and Contingent Li34
Commitments and Contingent Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Company's Restricted Assets | The following table details the forms and value of the Company’s restricted assets as at March 31, 2016 and December 31, 2015 : As at March 31, 2016 As at December 31, 2015 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,316.2 $ 1,421.0 Third party 2,370.1 2,265.6 Letters of credit / guarantees (1) 697.8 708.5 Total restricted assets $ 4,384.1 $ 4,395.1 Total as percent of investable assets (2) 49.5 % 49.6 % (1) As at March 31, 2016 , the Company pledged funds of $687.5 million and £7.2 million ( December 31, 2015 — $697.6 million and £7.1 million ) as collateral for the secured letters of credit. |
Amounts Outstanding under Operating Leases | Amounts outstanding under operating leases net of subleases as at March 31, 2016 were: 2016 2017 2018 2019 2020 Later Total ($ in millions) Operating Lease Obligations $ 8.5 $ 16.4 $ 15.7 $ 13.9 $ 10.0 $ 89.3 $ 153.8 |
Reclassifications from Accumu35
Reclassifications from Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Available for sale securities: | ||
Realized gains on sale of securities | $ 7.1 | $ 33.5 |
Realized (losses) on sale of securities | (2.9) | (1.2) |
Net realized and unrealized investment gains reclassified to the statement of operations, gross of tax | 4.2 | 32.3 |
Tax on net realized gains of securities | (0.5) | (0.4) |
Total reclassifications from AOCI to the statement of operations, net of tax | 3.7 | 31.9 |
Reclassification adjustment for net realized losses/(gains) on investments included in net income | 1.1 | 2.8 |
Realized derivatives, Net income | 1.1 | 2.8 |
Total reclassifications from AOCI to the statement of operations, net of tax, Net income | $ 4.8 | $ 34.7 |
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 | ||
Mar. 31, 2016 | Mar. 31, 2015 | ||
Earnings Per Share [Abstract] | |||
Net income | $ 114.4 | $ 128 | |
Preference share dividends | (9.5) | (9.5) | |
Proportion due to non-controlling interest | 0.2 | 0 | |
Basic and diluted net income available to ordinary shareholders | $ 105.1 | $ 118.5 | |
Ordinary shares: | |||
Basic weighted average ordinary shares | 60,867,815 | 62,159,303 | |
Weighted average effect of dilutive securities (in shares) | [1] | 1,616,123 | 1,373,359 |
Total diluted weighted average ordinary shares | 62,483,938 | 63,532,662 | |
Earnings per ordinary share: | |||
Basic (in usd per share) | $ 1.73 | $ 1.91 | |
Diluted (in usd per share) | $ 1.68 | $ 1.87 | |
[1] | 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 14. |
Earnings per Ordinary Share - S
Earnings per Ordinary Share - Summary of Declared Dividends (Details) - $ / shares | Apr. 21, 2016 | Mar. 31, 2016 |
7.401% preference shares | ||
Dividends Payable [Line Items] | ||
Preference shares, rate | 7.401% | |
7.250% preference shares | ||
Dividends Payable [Line Items] | ||
Preference shares, rate | 7.25% | |
5.95% preference shares | ||
Dividends Payable [Line Items] | ||
Preference shares, rate | 5.95% | |
Subsequent Event | Ordinary shares | ||
Dividends Payable [Line Items] | ||
Dividend (in usd per share) | $ 0.22 | |
Payable on: | May 25, 2016 | |
Record Date: | May 9, 2016 | |
Subsequent Event | 7.401% preference shares | ||
Dividends Payable [Line Items] | ||
Dividend (in usd per share) | $ 0.462563 | |
Payable on: | Jul. 1, 2016 | |
Record Date: | Jun. 15, 2016 | |
Subsequent Event | 7.250% preference shares | ||
Dividends Payable [Line Items] | ||
Dividend (in usd per share) | $ 0.4531 | |
Payable on: | Jul. 1, 2016 | |
Record Date: | Jun. 15, 2016 | |
Subsequent Event | 5.95% preference shares | ||
Dividends Payable [Line Items] | ||
Dividend (in usd per share) | $ 0.3719 | |
Payable on: | Jul. 1, 2016 | |
Record Date: | Jun. 15, 2016 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 3 Months Ended |
Mar. 31, 2016Segment | |
Segment Reporting [Abstract] | |
Number of business segments | 2 |
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 | |||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |||
Underwriting Revenues | ||||||
Gross written premiums | $ 975.7 | $ 919.2 | ||||
Net written premiums | 799.7 | 763.2 | ||||
Gross earned premiums | 752.4 | 680.9 | ||||
Net earned premiums | 663.1 | 593.6 | ||||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 357.4 | 306.1 | ||||
Amortization of deferred policy acquisition costs | 130.2 | 119.3 | ||||
General and administrative expenses | 102.7 | 87.7 | ||||
Underwriting income | 72.8 | 80.5 | ||||
Corporate expenses | (17.1) | (14.5) | ||||
Net investment income | 49.5 | 47.4 | ||||
Realized and unrealized investment gains | 65.6 | 57.4 | ||||
Realized and unrealized investment losses | (20.6) | (14.5) | ||||
Change in fair value of loan notes issued by variable interest entities | (4.4) | (2.9) | ||||
Change in fair value of derivatives | (7.2) | (7.8) | ||||
Interest expense on long term debt | (7.4) | (7.4) | ||||
Net realized and unrealized foreign exchange (losses) | (15.7) | (6.4) | ||||
Other income | 1.4 | 3.9 | ||||
Other expenses | 0 | (2.6) | ||||
Income from operations before income tax | 116.9 | 133.1 | ||||
Net reserves for loss and loss adjustment expenses | $ 4,645.5 | $ 4,338.8 | $ 4,583.4 | $ 4,400.8 | ||
Ratios | ||||||
Loss ratio | 53.90% | 51.60% | ||||
Policy acquisition expense ratio | 19.60% | 20.10% | ||||
General and administrative expense ratio | 18.10% | [1] | 17.20% | [2] | ||
Expense ratio | 37.70% | 37.30% | ||||
Combined ratio | 91.60% | 88.90% | ||||
Reinsurance | ||||||
Underwriting Revenues | ||||||
Gross written premiums | $ 517.6 | $ 484.8 | ||||
Net written premiums | 449.5 | 442.1 | ||||
Gross earned premiums | 306.8 | 265.8 | ||||
Net earned premiums | 280.3 | 249.4 | ||||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 134.5 | 105.5 | ||||
Amortization of deferred policy acquisition costs | 59.4 | 53.4 | ||||
General and administrative expenses | 44.1 | 32.4 | ||||
Underwriting income | 42.3 | 58.1 | ||||
Net reserves for loss and loss adjustment expenses | $ 2,433 | $ 2,410.9 | ||||
Ratios | ||||||
Loss ratio | 48.00% | 42.30% | ||||
Policy acquisition expense ratio | 21.20% | 21.40% | ||||
General and administrative expense ratio | 15.70% | 13.00% | ||||
Expense ratio | 36.90% | 34.40% | ||||
Combined ratio | 84.90% | 76.70% | ||||
Insurance | ||||||
Underwriting Revenues | ||||||
Gross written premiums | $ 458.1 | $ 434.4 | ||||
Net written premiums | 350.2 | 321.1 | ||||
Gross earned premiums | 445.6 | 415.1 | ||||
Net earned premiums | 382.8 | 344.2 | ||||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 222.9 | 200.6 | ||||
Amortization of deferred policy acquisition costs | 70.8 | 65.9 | ||||
General and administrative expenses | 58.6 | 55.3 | ||||
Underwriting income | 30.5 | 22.4 | ||||
Net reserves for loss and loss adjustment expenses | $ 2,212.5 | $ 1,927.9 | ||||
Ratios | ||||||
Loss ratio | 58.20% | 58.30% | ||||
Policy acquisition expense ratio | 18.50% | 19.10% | ||||
General and administrative expense ratio | 15.30% | 16.10% | ||||
Expense ratio | 33.80% | 35.20% | ||||
Combined ratio | 92.00% | 93.50% | ||||
[1] | The general and administrative expense ratio in the total column includes corporate expenses. | |||||
[2] | The general and administrative expense ratio in the total column includes corporate expenses. |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | $ 52.1 | $ 50.3 |
Investment expenses | (2.6) | (2.9) |
Net investment income | 49.5 | 47.4 |
Fixed income securities — Available for sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | 36.6 | 35.2 |
Fixed income securities — Trading | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | 7.4 | 7 |
Short-term investments — Available for sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | 0.1 | 0.4 |
Fixed term deposits (included in cash and cash equivalents) | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | 0.5 | 1.1 |
Equity securities — Trading | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | 6.9 | 6.2 |
Catastrophe bonds — Trading | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Total | $ 0.6 | $ 0.4 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Fixed income maturities — gross realized gains | $ 7,100,000 | $ 33,500,000 |
Fixed income maturities — gross realized (losses) | (2,900,000) | (1,200,000) |
Other than Temporary Impairment Losses, Investments | 0 | 0 |
Catastrophe bonds | (200,000) | 0 |
Net change in gross unrealized gains | 51,400,000 | 800,000 |
Total net realized and unrealized investment gains recorded in the statement of operations | 45,000,000 | 42,900,000 |
Change in available for sale net unrealized gains: | ||
Fixed income securities | (85,000,000) | (27,300,000) |
Available For Sale Securities Short Term Investments Change In Unrealized Gains | 0 | 100,000 |
Equity securities | 0 | (27,300,000) |
Total change in pre-tax available for sale unrealized gains | 85,000,000 | 100,000 |
Change in taxes | (8,100,000) | (2,900,000) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 76,900,000 | (2,800,000) |
Fixed income maturities - Available for sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Fixed income maturities — gross realized gains | 7,100,000 | 6,200,000 |
Fixed income maturities — gross realized (losses) | (2,400,000) | (500,000) |
Cash and Cash Equivalents Gross Realized Losses | (700,000) | 0 |
Equity Securities - Available for Sale | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Equity securities — gross realized gains | 0 | 31,900,000 |
Equity securities — gross realized (losses) | 0 | (3,000,000) |
Fixed Income Maturities - Trading | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Fixed income maturities — gross realized gains | 1,200,000 | 2,000,000 |
Fixed income maturities — gross realized (losses) | (5,800,000) | (2,200,000) |
Equity Securities - Trading | ||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||
Equity securities — gross realized gains | 5,900,000 | 16,500,000 |
Equity securities — gross realized (losses) | $ (11,500,000) | $ (8,800,000) |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | $ 6,030.4 | $ 6,030.4 |
Gross Unrealized Gains | 172.4 | 109.2 |
Gross Unrealized Losses | (3.8) | (25.6) |
Fair Market Value | 6,199 | 6,114 |
Total fixed income securities — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 5,895.1 | 5,867.5 |
Gross Unrealized Gains | 172.4 | 109.2 |
Gross Unrealized Losses | (3.8) | (25.6) |
Fair Market Value | 6,063.7 | 5,951.1 |
Total short-term investments — Available for sale | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 135.3 | 162.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 135.3 | 162.9 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,084.5 | 1,113.9 |
Gross Unrealized Gains | 27.2 | 13 |
Gross Unrealized Losses | 0 | (3.8) |
Fair Market Value | 1,111.7 | 1,123.1 |
U.S. agency | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 145.4 | 154.5 |
Gross Unrealized Gains | 4.5 | 4.3 |
Gross Unrealized Losses | 0 | (0.1) |
Fair Market Value | 149.9 | 158.7 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 30.8 | 25 |
Gross Unrealized Gains | 2.3 | 1.6 |
Gross Unrealized Losses | (0.2) | 0 |
Fair Market Value | 32.9 | 26.6 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 2,599.8 | 2,626.2 |
Gross Unrealized Gains | 83.7 | 49.5 |
Gross Unrealized Losses | (2.6) | (15.1) |
Fair Market Value | 2,680.9 | 2,660.6 |
Non-U.S. government-backed corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 71.4 | 81.6 |
Gross Unrealized Gains | 1.1 | 0.6 |
Gross Unrealized Losses | 0 | (0.1) |
Fair Market Value | 72.5 | 82.1 |
Foreign government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 660.4 | 634.6 |
Gross Unrealized Gains | 14.3 | 10.5 |
Gross Unrealized Losses | (0.2) | (0.9) |
Fair Market Value | 674.5 | 644.2 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 75.2 | 75.4 |
Gross Unrealized Gains | 1.1 | 0.9 |
Gross Unrealized Losses | 0 | (0.3) |
Fair Market Value | 76.3 | 76 |
Non-agency commercial mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 21.6 | 25.5 |
Gross Unrealized Gains | 1 | 1.2 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 22.6 | 26.7 |
Agency mortgage-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,206 | 1,130.8 |
Gross Unrealized Gains | 37.2 | 27.6 |
Gross Unrealized Losses | (0.8) | (5.3) |
Fair Market Value | $ 1,242.4 | $ 1,153.1 |
Investments - Cost, Gross Unr43
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | $ 877.7 | $ 794.2 |
Fair Market Value | 896.8 | 788 |
Short-term investments, trading at fair value, amortized cost | 7.7 | 9.5 |
U.S. government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 41.8 | 27.4 |
Gross Unrealized Gains | 0.3 | 0 |
Gross Unrealized Losses | 0 | (0.1) |
Fair Market Value | 42.1 | 27.3 |
Municipal | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 4 | 0.5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 4 | 0.5 |
Corporate | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 602 | 561.9 |
Gross Unrealized Gains | 15.2 | 5.9 |
Gross Unrealized Losses | (2) | (9.6) |
Fair Market Value | 615.2 | 558.2 |
Foreign government | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 192.7 | 181.5 |
Gross Unrealized Gains | 6.7 | 1.7 |
Gross Unrealized Losses | (0.9) | (3.7) |
Fair Market Value | 198.5 | 179.5 |
Asset-backed | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 19.8 | 20.7 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (0.2) |
Fair Market Value | 19.6 | 20.5 |
Bank loans | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 17.4 | 2.2 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (0.2) |
Fair Market Value | 17.4 | 2 |
Total fixed income securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 22.2 | 7.6 |
Gross Unrealized Losses | (3.1) | (13.8) |
Fair Market Value | 896.8 | 788 |
Cost or Amortized Cost, Total fixed income securities, Trading | 877.7 | 794.2 |
Total short-term investments — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 7.7 | 9.5 |
Short-term investments, trading at fair value, amortized cost | 7.7 | 9.5 |
Total equity securities — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 700.1 | 722.5 |
Gross Unrealized Gains | 89.3 | 57.3 |
Gross Unrealized Losses | (31.6) | (43.4) |
Fair Market Value | 757.8 | 736.4 |
Total catastrophe bonds — Trading | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 46.1 | 55.2 |
Gross Unrealized Gains | 0.1 | 0.3 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair Market Value | 46.1 | 55.4 |
Total | ||
Schedule of Trading Securities and Other Trading Items [Line Items] | ||
Cost or Amortized Cost | 1,631.6 | 1,581.4 |
Gross Unrealized Gains | 111.6 | 65.2 |
Gross Unrealized Losses | (34.8) | (57.3) |
Fair Market Value | $ 1,708.4 | $ 1,589.3 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | $ 8.7 | |
Initial investment | 0.8 | |
Closing value of investment | $ 9.5 | 9.5 |
MVI | ||
Schedule Of Equity Method Investments Joint Ventures [Line Items] | ||
Initial investment | 0.8 | |
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 0 | |
Initial investment | 0.8 | |
Closing value of investment | 0.8 | 0.8 |
Chaspark | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 8.7 | |
Initial investment | 0 | |
Closing value of investment | $ 8.7 | $ 8.7 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
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 | $ 5,895.1 | $ 5,867.5 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 6,030.4 | 6,030.4 |
Available for sale investments in fixed income maturities, Fair Market Value | 6,063.7 | 5,951.1 |
Total fixed income securities — Available for sale | ||
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 | 5,895.1 | 5,867.5 |
Non-agency commercial mortgage-backed | ||
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 | 21.6 | 25.5 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 22.6 | $ 26.7 |
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] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 1,206 | $ 1,130.8 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 1,242.4 | $ 1,153.1 |
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] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 75.2 | $ 75.4 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 76.3 | $ 76 |
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 | $ 581 | $ 661.8 |
Due after one year through five years, Cost or Amortized Cost | 2,835.6 | 2,765.2 |
Due after five years through ten years, Cost or Amortized Cost | 1,072 | 1,122.5 |
Due after ten years, Cost or Amortized Cost | 103.7 | 86.3 |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,592.3 | 4,635.8 |
Due one year or less, Fair Market Value | 583.2 | 664.4 |
Due after one year through five years, Fair Market Value | 2,910.3 | 2,806.6 |
Due after five years through ten years, Fair Market Value | 1,114.7 | 1,132 |
Due after ten years, Fair Market Value | 114.2 | 92.3 |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,722.4 | $ 4,695.3 |
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+ |
Investments - Aggregate Fair Va
Investments - Aggregate Fair Value and Gross Unrealized Loss by Type of Security (Details) $ in Millions | Mar. 31, 2016USD ($)Security | Dec. 31, 2015USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 440 | $ 2,453.9 |
0-12 months, Gross Unrealized Loss | (2.4) | (21.9) |
Over 12 months, Fair Market Value | 213.8 | 164.9 |
Over 12 months, Gross Unrealized Loss | (1.4) | (3.7) |
Total, Fair Market Value | 653.8 | 2,618.8 |
Total, Gross Unrealized Loss | $ (3.8) | $ (25.6) |
Number of Securities | Security | 249 | 805 |
Fixed income securities — Available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 430.2 | $ 2,397.2 |
0-12 months, Gross Unrealized Loss | (2.4) | (21.9) |
Over 12 months, Fair Market Value | 213.8 | 164.9 |
Over 12 months, Gross Unrealized Loss | (1.4) | (3.7) |
Total, Fair Market Value | 644 | 2,562.1 |
Total, Gross Unrealized Loss | $ (3.8) | $ (25.6) |
Number of Securities | Security | 240 | 793 |
Total short-term investments — Available for sale | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 9.8 | $ 56.7 |
0-12 months, Gross Unrealized Loss | 0 | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Loss | 0 | 0 |
Total, Fair Market Value | 9.8 | 56.7 |
Total, Gross Unrealized Loss | $ 0 | $ 0 |
Number of Securities | Security | 9 | 12 |
U.S. government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 55.5 | $ 583.2 |
0-12 months, Gross Unrealized Loss | 0 | (3.7) |
Over 12 months, Fair Market Value | 3.2 | 4.6 |
Over 12 months, Gross Unrealized Loss | 0 | (0.1) |
Total, Fair Market Value | 58.7 | 587.8 |
Total, Gross Unrealized Loss | $ 0 | $ (3.8) |
Number of Securities | Security | 10 | 72 |
U.S. agency | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 1.3 | $ 17.6 |
0-12 months, Gross Unrealized Loss | 0 | (0.1) |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Loss | 0 | 0 |
Total, Fair Market Value | 1.3 | 17.6 |
Total, Gross Unrealized Loss | $ 0 | $ (0.1) |
Number of Securities | Security | 1 | 12 |
Municipal | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 3.9 | $ 1.7 |
0-12 months, Gross Unrealized Loss | (0.2) | 0 |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Loss | 0 | 0 |
Total, Fair Market Value | 3.9 | 1.7 |
Total, Gross Unrealized Loss | $ (0.2) | $ 0 |
Number of Securities | Security | 4 | 3 |
Corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 232.4 | $ 1,179.7 |
0-12 months, Gross Unrealized Loss | (2) | (13.3) |
Over 12 months, Fair Market Value | 56.4 | 81.1 |
Over 12 months, Gross Unrealized Loss | (0.6) | (1.8) |
Total, Fair Market Value | 288.8 | 1,260.8 |
Total, Gross Unrealized Loss | $ (2.6) | $ (15.1) |
Number of Securities | Security | 144 | 510 |
Non-U.S. government-backed corporate | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 4.3 | $ 40.9 |
0-12 months, Gross Unrealized Loss | 0 | (0.1) |
Over 12 months, Fair Market Value | 0 | 0 |
Over 12 months, Gross Unrealized Loss | 0 | 0 |
Total, Fair Market Value | 4.3 | 40.9 |
Total, Gross Unrealized Loss | $ 0 | $ (0.1) |
Number of Securities | Security | 3 | 9 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 92.8 | $ 174.6 |
0-12 months, Gross Unrealized Loss | (0.2) | (0.8) |
Over 12 months, Fair Market Value | 34.7 | 2.8 |
Over 12 months, Gross Unrealized Loss | 0 | (0.1) |
Total, Fair Market Value | 127.5 | 177.4 |
Total, Gross Unrealized Loss | $ (0.2) | $ (0.9) |
Number of Securities | Security | 15 | 43 |
Asset-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 7.7 | $ 51.4 |
0-12 months, Gross Unrealized Loss | 0 | (0.3) |
Over 12 months, Fair Market Value | 4.1 | 4.2 |
Over 12 months, Gross Unrealized Loss | 0 | 0 |
Total, Fair Market Value | 11.8 | 55.6 |
Total, Gross Unrealized Loss | $ 0 | $ (0.3) |
Number of Securities | Security | 15 | 39 |
Agency mortgage-backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
0-12 months, Fair Market Value | $ 32.3 | $ 348.1 |
0-12 months, Gross Unrealized Loss | 0 | (3.6) |
Over 12 months, Fair Market Value | 115.4 | 72.2 |
Over 12 months, Gross Unrealized Loss | (0.8) | (1.7) |
Total, Fair Market Value | 147.7 | 420.3 |
Total, Gross Unrealized Loss | $ (0.8) | $ (5.3) |
Number of Securities | Security | 48 | 105 |
Investments - Analysis of Inves
Investments - Analysis of Investment Purchases/Sales and Maturities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | ||
(Purchases) of fixed income securities — Available for sale | $ (682.9) | $ (483.7) |
(Purchases) of fixed income securities — Trading | (215.9) | (153.4) |
(Purchases) of equity securities — Trading | (60.3) | (186.7) |
Proceeds from sales and maturities of fixed income securities — Available for sale | 640 | 540.7 |
Proceeds from sales and maturities of fixed income securities — Trading | 132.2 | 133.8 |
Proceeds from sales of equity securities — Available for sale | 0 | 108.6 |
Proceeds from sales of equity securities — Trading | 59.1 | 83.7 |
Net change in (payable)/receivable for securities (purchased)/sold | 23.6 | 15.9 |
(Purchases) of short-term investments — Available for sale | (57.4) | (62.1) |
Proceeds from Available-for-sale Securities, Short-term | 88.7 | 123.4 |
(Purchases) of short-term investments — Trading | 0 | (12.8) |
Proceeds from Sale of Short-term Investments | 2.1 | 12.3 |
Net proceeds of catastrophe bonds — Trading | 8.9 | 1.8 |
Net (purchases)/proceeds for the period | (61.9) | 121.5 |
Available for sale | ||
Gain (Loss) on Investments [Line Items] | ||
(Purchases) of fixed income securities — Available for sale | (682.9) | (483.7) |
Proceeds from sales of equity securities — Available for sale | 0 | 108.6 |
(Purchases) of short-term investments — Available for sale | (57.4) | (62.1) |
Proceeds from Available-for-sale Securities, Short-term | 88.7 | 123.4 |
Trading | ||
Gain (Loss) on Investments [Line Items] | ||
(Purchases) of fixed income securities — Trading | (215.9) | (153.4) |
(Purchases) of equity securities — Trading | (60.3) | (186.7) |
Proceeds from sales of equity securities — Trading | 59.1 | 83.7 |
(Purchases) of short-term investments — Trading | 0 | (12.8) |
Proceeds from Sale of Short-term Investments | 2.1 | 12.3 |
Net proceeds of catastrophe bonds — Trading | $ 8.9 | $ 1.8 |
Investments - Narrative (Detail
Investments - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016USD ($)security | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)security | Oct. 02, 2012 | |
Investment Securities [Line Items] | ||||
Other than Temporary Impairment Losses, Investments | $ 0 | $ 0 | ||
Fair Market Value | 896,800,000 | $ 788,000,000 | ||
Catastrophe bonds | $ 46,100,000 | $ 55,400,000 | ||
Number of municipal holdings | security | 1 | 1 | ||
Bank loans | ||||
Investment Securities [Line Items] | ||||
Fair Market Value | $ 17,400,000 | $ 2,000,000 | ||
Chaspark | ||||
Investment Securities [Line Items] | ||||
Percentage of ownership acquired | 58.50% |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | 3 Months Ended | |||||
Mar. 31, 2016USD ($)Investmentvariable_interest_entity | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 27, 2013USD ($) | Oct. 02, 2012 | |
Variable Interest Entity [Line Items] | ||||||
Number of investments in variable interest entities | Investment | 2 | |||||
Number of variable interest entities | variable_interest_entity | 2 | |||||
Total aggregate unpaid balance | $ 549,300,000 | $ 549,200,000 | ||||
Silverton 2,016 | ||||||
Variable Interest Entity [Line Items] | ||||||
Loans issued | 125,000,000 | |||||
Loan notes issued by variable interest entities, at fair value | 100,000,000 | |||||
Silverton 2,015 | ||||||
Variable Interest Entity [Line Items] | ||||||
Loans issued | $ 85,000,000 | |||||
Loan notes issued by variable interest entities, at fair value | 2,900,000 | $ 70,000,000 | ||||
Silverton 2016 | Silverton Loan Notes | Aspen Holdings | ||||||
Variable Interest Entity [Line Items] | ||||||
Maximum loss exposure, amount | 25,900,000 | |||||
Silverton 2016 | Loan Notes 2016 | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 130,400,000 | |||||
Repayments of debt | 130,400,000 | |||||
Silverton 2016 | Loan Notes 2016 | Aspen Holdings | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 130,400,000 | |||||
Silverton 2016 | Investor | Loan Notes 2016 | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 104,500,000 | |||||
Repayments of debt | 104,500,000 | |||||
Chaspark | ||||||
Variable Interest Entity [Line Items] | ||||||
Percentage of ownership acquired | 58.50% | |||||
Change in fair value of investment | $ 0 | $ 0 | ||||
Silverton 2,014 | ||||||
Variable Interest Entity [Line Items] | ||||||
Loans issued | $ 65,000,000 | |||||
Percentage of interests acquired | 100.00% | |||||
Silverton 2014 | Third party | ||||||
Variable Interest Entity [Line Items] | ||||||
Loans issued | $ 50,000,000 | |||||
Silverton 2014 | Loan Notes 2014 | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | $ 300,000 | |||||
Silverton 2014 | Silverton Loan Notes | ||||||
Variable Interest Entity [Line Items] | ||||||
Repayments of debt | 500,000 | |||||
Silverton 2014 | Silverton Loan Notes | Aspen Holdings and Third Parties | ||||||
Variable Interest Entity [Line Items] | ||||||
Total aggregate unpaid balance | 300,000 | |||||
Silverton 2014 | Silverton Loan Notes | Aspen Holdings | ||||||
Variable Interest Entity [Line Items] | ||||||
Maximum loss exposure, amount | 100,000 | |||||
Silverton 2014 | Investor | Loan Notes 2014 | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 200,000 | |||||
Repayments of debt | 400,000 | |||||
Total aggregate unpaid balance | 200,000 | |||||
Long-term debt, current maturities | 200,000 | |||||
Silverton 2015 | Silverton Loan Notes | Aspen Holdings | ||||||
Variable Interest Entity [Line Items] | ||||||
Maximum loss exposure, amount | 500,000 | |||||
Silverton 2015 | Loan Notes 2015 | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 3,400,000 | |||||
Silverton 2015 | Loan Notes 2015 | Aspen Holdings | ||||||
Variable Interest Entity [Line Items] | ||||||
Fair value of 2014 Loan Notes | 3,400,000 | |||||
Silverton 2015 | Investor | Loan Notes 2015 | ||||||
Variable Interest Entity [Line Items] | ||||||
Long-term debt, current maturities | 2,900,000 | |||||
Fair Value, Measurements, Recurring | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | (3,100,000) | (87,600,000) | ||||
Loan notes issued by variable interest entities, at fair value | (104,500,000) | (103,000,000) | ||||
Level 3 | Fair Value, Measurements, Recurring | ||||||
Variable Interest Entity [Line Items] | ||||||
Debt Instrument, Accrued Interest and Payables, Fair Value Disclosure | $ (3,100,000) | (87,600,000) | ||||
Loan notes issued by variable interest entities, at fair value | $ (103,000,000) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds trading, at fair value | $ 46.1 | $ 55.2 | ||
Derivatives at fair value | 10.9 | 9.2 | ||
Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds trading, at fair value | 46.1 | |||
Loan notes issued by variable interest entities, at fair value | (104.5) | (103) | ||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (3.1) | (87.6) | ||
Total | 7,793.1 | 7,517.9 | ||
Fair Value, Measurements, Recurring | Short-term investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 7.7 | 9.5 | ||
Fair Value, Measurements, Recurring | Equity investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 757.8 | 736.4 | ||
Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 10.9 | 8.8 | ||
Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | (0.8) | 0.4 | ||
Fair Value, Measurements, 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 | (16.8) | (4) | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,111.7 | 1,123.1 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 149.9 | 158.7 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 32.9 | 26.6 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2,680.9 | 2,660.6 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 72.5 | 82.1 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 674.5 | 644.2 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 76.3 | 76 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 22.6 | 26.7 | ||
Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,242.4 | 1,153.1 | ||
Fixed income securities — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 6,063.7 | 5,951.1 | ||
Short-term investments — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 135.3 | 162.9 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 896.8 | 788 | ||
Catastrophe bonds trading, at fair value | 55.4 | |||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 42.1 | 27.3 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4 | 0.5 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 615.2 | 558.2 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 198.5 | 179.5 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 19.6 | 20.5 | ||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 17.4 | |||
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Bank loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2 | |||
Level 1 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds trading, at fair value | 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 | 2,596.6 | 2,548 | ||
Level 1 | Fair Value, Measurements, Recurring | Short-term investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 7.7 | 7.4 | ||
Level 1 | Fair Value, Measurements, Recurring | Equity investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 757.8 | 736.4 | ||
Level 1 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Level 1 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Level 1 | Fair Value, Measurements, 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 | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,111.7 | 1,123.1 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 480.6 | 449.5 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Fixed income securities — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,592.3 | 1,572.6 | ||
Level 1 | Short-term investments — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 101.1 | 130.5 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 137.7 | 101.1 | ||
Catastrophe bonds trading, at fair value | 0 | |||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 42.1 | 27.3 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 95.6 | 73.8 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Bank loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Level 2 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds trading, at fair value | 46.1 | |||
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 | 5,304.1 | 5,160.5 | ||
Level 2 | Fair Value, Measurements, Recurring | Short-term investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 2.1 | ||
Level 2 | Fair Value, Measurements, Recurring | Equity investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 2 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 10.9 | 8.8 | ||
Level 2 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | (0.8) | 0.4 | ||
Level 2 | Fair Value, Measurements, 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 | 16.8 | (4) | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 149.9 | 158.7 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 32.9 | 26.6 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2,680.9 | 2,660.6 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 72.5 | 82.1 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 193.9 | 194.7 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 76.3 | 76 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 22.6 | 26.7 | ||
Level 2 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,242.4 | 1,153.1 | ||
Level 2 | Fixed income securities — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4,471.4 | 4,378.5 | ||
Level 2 | Short-term investments — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 34.2 | 32.4 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 759.1 | 686.9 | ||
Catastrophe bonds trading, at fair value | 55.4 | |||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4 | 0.5 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 615.2 | 558.2 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 102.9 | 105.7 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 19.6 | 20.5 | ||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 17.4 | |||
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Bank loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2 | |||
Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds trading, at fair value | 0 | |||
Loan notes issued by variable interest entities, at fair value | (103) | |||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (3.1) | (87.6) | ||
Total | (107.6) | (190.6) | ||
Level 3 | Fair Value, Measurements, Recurring | Short-term investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Equity investments trading, at fair value | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Level 3 | Fair Value, Measurements, Recurring | Derivatives at fair value, assets | Interest Rate Swaps | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Level 3 | Fair Value, Measurements, 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 | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. agency | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Non-agency commercial mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Available for sale financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Fixed income securities — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Short-term investments — Available for sale | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Catastrophe bonds trading, at fair value | 0 | |||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | U.S. government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Municipal | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Corporate | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Foreign government | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Asset-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | $ 0 | |||
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Bank loans | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Silverton 2015 | Level 3 | Fair Value, Measurements, Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Proceeds from Equity Method Investment, Dividends or Distributions | $ 64.8 | |||
Total | [1] | $ 190.6 | ||
[1] | The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Liabilities Using Level 3 Inputs (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | $ 3.1 | $ 87.6 | ||
Level 3 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | 3.1 | $ 87.6 | ||
Level 3 | Silverton 2016 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | [1] | 190.6 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 87.4 | |||
Total change in fair value included in the statement of operations | 4.4 | |||
Ending balance | [1] | $ 107.6 | ||
Level 3 | Silverton 2015 | ||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Beginning balance | [1] | $ 138.6 | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements | 64.8 | |||
Total change in fair value included in the statement of operations | 2.9 | |||
Ending balance | [1] | $ 76.7 | ||
[1] | The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. |
Fair Value Measurements - Prici
Fair Value Measurements - Pricing Sources Used in Pricing Fixed Income Investments (Details) | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosures [Abstract] | ||
Index providers | 84.00% | 85.00% |
Pricing services | 11.00% | 10.00% |
Broker-dealers | 5.00% | 5.00% |
Total | 100.00% | 100.00% |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Securities Priced Using Pricing Information from Index Providers (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 6,590 | $ 6,454.5 |
% of Total Fair Value by Security Type | 85.00% | 86.00% |
Fixed Income Maturities | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 5,832.2 | $ 5,718.1 |
% of Total Fair Value by Security Type | 84.00% | 85.00% |
Fixed Income Maturities | U.S. government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 1,092.9 | $ 1,095.4 |
% 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 | $ 132.9 | $ 148.5 |
% of Total Fair Value by Security Type | 89.00% | 94.00% |
Fixed Income Maturities | Municipal | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 19.4 | $ 10.5 |
% of Total Fair Value by Security Type | 53.00% | 39.00% |
Fixed Income Maturities | Corporate | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 3,141.1 | $ 3,083.5 |
% of Total Fair Value by Security Type | 95.00% | 96.00% |
Fixed Income Maturities | Foreign Corporate Debt Securities [Member] | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 39.3 | $ 41.7 |
% of Total Fair Value by Security Type | 54.00% | 51.00% |
Fixed Income Maturities | Foreign government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 513.4 | $ 517.6 |
% of Total Fair Value by Security Type | 59.00% | 63.00% |
Fixed Income Maturities | Asset-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 50.9 | $ 55.3 |
% of Total Fair Value by Security Type | 53.00% | 57.00% |
Fixed Income Maturities | Non-agency commercial mortgage-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 18.9 | $ 22.7 |
% of Total Fair Value by Security Type | 84.00% | 85.00% |
Fixed Income Maturities | Agency mortgage-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 823.4 | $ 742.9 |
% of Total Fair Value by Security Type | 65.00% | 64.00% |
Equities | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 757.8 | $ 736.4 |
% of Total Fair Value by Security Type | 99.40% | 100.00% |
Fair Value Measurements - Loan
Fair Value Measurements - Loan Notes Issued by Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds, trading at fair value, cost | $ 46.1 | $ 55.2 | ||
Gross written premiums | 975.7 | $ 919.2 | ||
Derivatives at fair value | 10.9 | 9.2 | ||
Level 3 | Low | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross written premiums | 35 | 0 | ||
Reserve for losses | 0.6 | 0 | ||
Loan notes held by third parties | 220 | 220 | ||
Level 3 | High | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gross written premiums | 38.9 | 38.9 | ||
Reserve for losses | $ 4.2 | $ 4.2 | ||
Contract period | 365 days | 365 days | ||
Loan notes held by third parties | $ 220 | $ 220 | ||
Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds, trading at fair value, cost | 46.1 | |||
Loan notes held by third parties | (104.5) | (103) | ||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (3.1) | (87.6) | ||
Net change from current period hedged transaction | (7,793.1) | (7,517.9) | ||
Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds, trading at fair value, cost | 0 | |||
Loan notes held by third parties | 0 | 0 | ||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | 0 | 0 | ||
Net change from current period hedged transaction | (2,596.6) | (2,548) | ||
Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds, trading at fair value, cost | 46.1 | |||
Loan notes held by third parties | 0 | 0 | ||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | 0 | 0 | ||
Net change from current period hedged transaction | (5,304.1) | (5,160.5) | ||
Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Catastrophe bonds, trading at fair value, cost | 0 | |||
Loan notes held by third parties | (103) | |||
Loan notes issued by variable interest entities, at fair value (classified as a current liability) | (3.1) | (87.6) | ||
Net change from current period hedged transaction | 107.6 | 190.6 | ||
Fixed income securities — Available for sale | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 6,063.7 | 5,951.1 | ||
Fixed income securities — Available for sale | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,592.3 | 1,572.6 | ||
Fixed income securities — Available for sale | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4,471.4 | 4,378.5 | ||
Fixed income securities — Available for sale | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Total short-term investments — Available for sale | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 135.3 | 162.9 | ||
Total short-term investments — Available for sale | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 101.1 | 130.5 | ||
Total short-term investments — Available for sale | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 34.2 | 32.4 | ||
Total short-term investments — Available for sale | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 896.8 | 788 | ||
Catastrophe bonds, trading at fair value, cost | 55.4 | |||
Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 137.7 | 101.1 | ||
Catastrophe bonds, trading at fair value, cost | 0 | |||
Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 759.1 | 686.9 | ||
Catastrophe bonds, trading at fair value, cost | 55.4 | |||
Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Catastrophe bonds, trading at fair value, cost | 0 | |||
U.S. government | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,111.7 | 1,123.1 | ||
U.S. government | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,111.7 | 1,123.1 | ||
U.S. government | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
U.S. government | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
U.S. government | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 42.1 | 27.3 | ||
U.S. government | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 42.1 | 27.3 | ||
U.S. government | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
U.S. government | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
U.S. agency | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 149.9 | 158.7 | ||
U.S. agency | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
U.S. agency | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 149.9 | 158.7 | ||
U.S. agency | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Municipal | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 32.9 | 26.6 | ||
Municipal | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Municipal | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 32.9 | 26.6 | ||
Municipal | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Municipal | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4 | 0.5 | ||
Municipal | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Municipal | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 4 | 0.5 | ||
Municipal | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Corporate | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2,680.9 | 2,660.6 | ||
Corporate | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Corporate | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2,680.9 | 2,660.6 | ||
Corporate | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Corporate | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 615.2 | 558.2 | ||
Corporate | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Corporate | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 615.2 | 558.2 | ||
Corporate | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Foreign government | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 674.5 | 644.2 | ||
Foreign government | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 480.6 | 449.5 | ||
Foreign government | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 193.9 | 194.7 | ||
Foreign government | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Foreign government | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 198.5 | 179.5 | ||
Foreign government | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 95.6 | 73.8 | ||
Foreign government | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 102.9 | 105.7 | ||
Foreign government | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Asset-backed | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 76.3 | 76 | ||
Asset-backed | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Asset-backed | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 76.3 | 76 | ||
Asset-backed | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Asset-backed | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 19.6 | 20.5 | ||
Asset-backed | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Asset-backed | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 19.6 | 20.5 | ||
Asset-backed | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Non-agency commercial mortgage-backed | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 22.6 | 26.7 | ||
Non-agency commercial mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Non-agency commercial mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 22.6 | 26.7 | ||
Non-agency commercial mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Agency mortgage-backed | Available for sale financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,242.4 | 1,153.1 | ||
Agency mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Agency mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 1,242.4 | 1,153.1 | ||
Agency mortgage-backed | Available for sale financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Agency mortgage-backed | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 17.4 | |||
Agency mortgage-backed | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Agency mortgage-backed | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 17.4 | |||
Agency mortgage-backed | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Bank loans | Held for trading financial assets, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2 | |||
Bank loans | Held for trading financial assets, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Bank loans | Held for trading financial assets, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 2 | |||
Bank loans | Held for trading financial assets, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | |||
Short-term investments trading, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 7.7 | 9.5 | ||
Short-term investments trading, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 7.7 | 7.4 | ||
Short-term investments trading, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 2.1 | ||
Short-term investments trading, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Equity investments trading, at fair value | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 757.8 | 736.4 | ||
Equity investments trading, at fair value | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 757.8 | 736.4 | ||
Equity investments trading, at fair value | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Equity investments trading, at fair value | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Investments, Fair Value Disclosure | 0 | 0 | ||
Foreign Exchange Contracts | Derivatives at fair value, assets | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 10.9 | 8.8 | ||
Foreign Exchange Contracts | Derivatives at fair value, assets | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Foreign Exchange Contracts | Derivatives at fair value, assets | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 10.9 | 8.8 | ||
Foreign Exchange Contracts | Derivatives at fair value, assets | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Foreign Exchange Contracts | Liabilities under derivative contracts — foreign exchange contracts | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities under derivative contracts, fair value | (16.8) | (4) | ||
Foreign Exchange Contracts | Liabilities under derivative contracts — foreign exchange contracts | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities under derivative contracts, fair value | 0 | 0 | ||
Foreign Exchange Contracts | Liabilities under derivative contracts — foreign exchange contracts | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities under derivative contracts, fair value | 16.8 | (4) | ||
Foreign Exchange Contracts | Liabilities under derivative contracts — foreign exchange contracts | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Liabilities under derivative contracts, fair value | 0 | 0 | ||
Interest Rate Swaps | Derivatives at fair value, assets | Recurring | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | (0.8) | 0.4 | ||
Interest Rate Swaps | Derivatives at fair value, assets | Recurring | Level 1 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | 0 | ||
Interest Rate Swaps | Derivatives at fair value, assets | Recurring | Level 2 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | (0.8) | 0.4 | ||
Interest Rate Swaps | Derivatives at fair value, assets | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivatives at fair value | 0 | $ 0 | ||
Silverton 2016 | Recurring | Level 3 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Net change from current period hedged transaction | [1] | $ 107.6 | ||
[1] | The amount classified as other payables was $3.1 million and $87.6 million as at March 31, 2016 and December 31, 2015, respectively. |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016USD ($)quote / Investment | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)quote / Investment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Quotes per fixed income investment | quote / Investment | 2.3 | 2 | |||
Quotes per equity investment | quote / Investment | 4 | 4 | |||
Gross written premiums | $ 975,700,000 | $ 919,200,000 | |||
Silverton 2,014 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loans issued | $ 65,000,000 | ||||
Loan notes held by third parties | $ 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 held by third parties | 2,900,000 | $ 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 held by third parties | 100,000,000 | ||||
Level 3 | Minimum | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes held by third parties | 220,000,000 | 220,000,000 | |||
Gross written premiums | 35,000,000 | 0 | |||
Reserve for losses | $ 600,000 | $ 0 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Munich Re | ||
Reinsurance [Line Items] | ||
Concentration Risk, Percentage | 20.80% | 20.40% |
Lloyd's | ||
Reinsurance [Line Items] | ||
Concentration Risk, Percentage | 18.90% | 20.00% |
Arch Re | ||
Reinsurance [Line Items] | ||
Concentration Risk, Percentage | 7.30% | 9.20% |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | $ 10,900,000 | $ 9,200,000 | ||
Cash collateral provided | 5,700,000 | 10,100,000 | ||
Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 85,500,000 | 113,600,000 | ||
Cash collateral provided | 4,200,000 | 0 | ||
Foreign Exchange Contracts | Designated as Hedging Instrument | Liabilities under Derivative Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | [1] | 900,000 | (1,200,000) | |
Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative notional amount | 525,300,000 | 379,900,000 | ||
Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | Liabilities under Derivative Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Liability notional amount | 262,900,000 | 162,200,000 | ||
Derivatives at fair value, assets | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | 10,900,000 | 8,800,000 | ||
Derivatives at fair value, assets | Fair Value, Measurements, Recurring | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | (800,000) | 400,000 | ||
Derivatives at fair value, assets | Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | 10,900,000 | 8,800,000 | ||
Derivatives at fair value, assets | Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | 10,900,000 | 8,800,000 | ||
Derivatives at fair value, assets | Level 2 | Fair Value, Measurements, Recurring | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | (800,000) | 400,000 | ||
Derivatives at fair value, assets | Level 2 | Fair Value, Measurements, Recurring | Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivatives at fair value | [2] | (800,000) | 400,000 | |
Liabilities under derivative contracts | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Liabilities at fair value | (16,800,000) | (4,000,000) | ||
Liabilities under derivative contracts | Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Liabilities at fair value | 16,800,000 | (4,000,000) | ||
Liabilities under derivative contracts | Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | Liabilities under Derivative Contracts | ||||
Derivatives, Fair Value [Line Items] | ||||
Liabilities at fair value | (17,700,000) | $ (2,800,000) | ||
General and Administrative Expense [Member] | Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Foreign exchange contract settlement | (1,100,000) | $ (2,800,000) | ||
Net change from current period hedged transactions [Member] | Foreign Exchange Contracts | Designated as Hedging Instrument | ||||
Derivatives, Fair Value [Line Items] | ||||
Fair Value | $ (2,100,000) | $ (2,400,000) | ||
[1] | Net of $4.2 million cash collateral (December 31, 2015 — $Nil). | |||
[2] | Net of $5.7 million of cash collateral provided to the counterparty, Goldman Sachs International ($256.3 million notional) under an International Swap Dealers Association agreement, as security for the Company’s net liability position (December 31, 2015 — $10.1 million). |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - Designated as Hedging Instrument - Foreign Exchange Contracts - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
General and Administrative Expense [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign exchange contract settlement | $ (1,100,000) | $ (2,800,000) |
Net change from current period hedged transactions [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair Value | $ (2,100,000) | $ (2,400,000) |
Derivative Contracts - Narrativ
Derivative Contracts - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Cash collateral provided | $ 5,700,000 | $ 10,100,000 | |
Pledged assets | 0 | 0 | |
Goldman Sachs International | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 256,300,000 | ||
Foreign Exchange Contracts | Designated as Hedging Instrument | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 85,500,000 | 113,600,000 | |
Cash collateral provided | 4,200,000 | 0 | |
Foreign Exchange Contracts | Designated as Hedging Instrument | General and Administrative Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contract settlement | (1,100,000) | $ (2,800,000) | |
Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 525,300,000 | 379,900,000 | |
Foreign Exchange Contracts | Derivatives Not Designated as Hedging Instruments | Change in Fair Value of Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (4,400,000) | (4,600,000) | |
Foreign Exchange Contracts | Derivatives at Fair Value [Member] | Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | 262,400,000 | 217,700,000 | |
Interest Rate Swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other assets pledged | 0 | ||
Interest Rate Swaps | Derivatives Not Designated as Hedging Instruments | Change in Fair Value of Derivatives | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative instruments not designated as hedging instruments, gain (loss), net | (2,800,000) | $ (3,200,000) | |
Interest Rate Swaps | Derivatives at Fair Value [Member] | Derivatives Not Designated as Hedging Instruments | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative notional amount | $ 256,300,000 | $ 756,300,000 |
Deferred Policy Acquisition C60
Deferred Policy Acquisition Costs - Reconciliation of Beginning and Ending Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||
Balance at the beginning of the period | $ 361.1 | |
Acquisition costs deferred | 176.8 | $ 154.1 |
Amortization of deferred policy acquisition costs | (130.2) | (119.3) |
Balance at the end of the period | $ 407.7 | $ 333.8 |
Reserves for Losses and Loss 61
Reserves for Losses and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Consolidated Loss and Loss Adjustment Expenses ("LAE") Reserves (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Provision for losses and LAE at the start of the year | $ 4,938,200,000 | $ 4,750,800,000 | $ 4,750,800,000 | |
Less reinsurance recoverable | (354,800,000) | $ (350,000,000) | ||
Net loss and LAE at the start of the year | 4,583,400,000 | 4,400,800,000 | 4,400,800,000 | |
Net loss and LAE expenses assumed | 5,700,000 | 0 | ||
Provision for losses and LAE for claims incurred: | ||||
Current year | 379,000,000 | 1,522,700,000 | ||
Prior years | (21,600,000) | 27,500,000 | (156,500,000) | |
Total incurred | 357,400,000 | 1,366,200,000 | ||
Losses and LAE payments for claims incurred: | ||||
Current year | (8,500,000) | (141,900,000) | ||
Prior years | (286,100,000) | (966,600,000) | ||
Total paid | (294,600,000) | (1,108,500,000) | ||
Foreign exchange (gains) | (6,400,000) | (75,100,000) | ||
Net losses and LAE reserves at period end | 4,645,500,000 | $ 4,338,800,000 | 4,583,400,000 | |
Plus reinsurance recoverable on unpaid losses at period end | 366,000,000 | 354,800,000 | ||
Provision for losses and LAE at the end of the relevant period | $ 5,011,500,000 | $ 4,938,200,000 |
Reserves for Losses and Loss 62
Reserves for Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Insurance [Abstract] | |||
Reserve releases | $ 21,600,000 | $ (27,500,000) | $ 156,500,000 |
Loss portfolio transfers (disposed) | $ 5,700,000 | $ 0 |
Capital Structure - Summary of
Capital Structure - Summary of Authorized and Issued Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Authorized share capital: | ||
Number of ordinary shares (in shares) | 969,629,030 | 969,629,030 |
Number of non-voting shares (in shares) | 6,787,880 | 6,787,880 |
Number of preference shares (in shares) | 100,000,000 | 100,000,000 |
Ordinary Shares 0.15144558¢ per share | $ 1,469 | $ 1,469 |
Non-Voting Shares 0.15144558¢ per share | 10 | 10 |
Preference Shares 0.15144558¢ per share | 152 | 152 |
Total authorized share capital | $ 1,631 | $ 1,631 |
Issued share capital: | ||
Number of issued ordinary shares (in shares) | 60,675,142 | 60,918,373 |
Issued ordinary shares of 0.15144558¢ per share | $ 92 | $ 92 |
Total issued share capital | $ 127 | $ 127 |
Ordinary shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Non-voting shares, par value (in usd per share) | 0.15144558 | 0.15144558 |
Preference shares, par value (in usd per share) | 0.15144558 | 0.15144558 |
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 |
7.401% preference shares | ||
Issued share capital: | ||
Number of issued preference shares of 0.15144558¢ each with a liquidation preference | 5,327,500 | 5,327,500 |
Issued preference shares of 0.15144558¢ each with a liquidation preference | $ 8 | $ 8 |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 |
Preference shares, rate | 7.401% | 7.401% |
7.250% preference shares | ||
Issued share capital: | ||
Number of issued preference shares of 0.15144558¢ each with a liquidation preference | 6,400,000 | 6,400,000 |
Issued preference shares of 0.15144558¢ each with a liquidation preference | $ 10 | $ 10 |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 |
Preference shares, rate | 7.25% | 7.25% |
5.95% preference shares | ||
Issued share capital: | ||
Number of issued preference shares of 0.15144558¢ each with a liquidation preference | 11,000,000 | 11,000,000 |
Issued preference shares of 0.15144558¢ each with a liquidation preference | $ 17 | $ 17 |
Preference shares, par value (in usd per share) | $ 0.15144558 | $ 0.15144558 |
Preferred Stock, Liquidation Preference Per Share | $ 25 | $ 25 |
Preference shares, rate | 5.95% | 5.95% |
Capital Structure - Summary o64
Capital Structure - Summary of Ordinary Shares (Details) | 3 Months Ended |
Mar. 31, 2016shares | |
Ordinary Shares [Roll Forward] | |
Ordinary shares in issue at the beginning of the year (in shares) | 60,918,373 |
Ordinary shares issued to employees under the 2003 and 2013 share incentive plans and/or 2008 share purchase plan (in shares) | 315,937 |
Ordinary shares issued to non-employee directors (in shares) | 9,071 |
Ordinary shares repurchased (in shares) | (568,239) |
Ordinary shares in issue at the end of the period (in shares) | 60,675,142 |
Capital Structure - Narrative (
Capital Structure - Narrative (Details) - USD ($) | Feb. 05, 2015 | Apr. 17, 2014 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Class of Stock [Line Items] | |||||
Additional paid-in capital | $ 1,055,900,000 | $ 1,075,300,000 | |||
Aggregate liquidation preferences | 568,200,000 | 568,200,000 | |||
Issuance costs | $ 12,400,000 | $ 12,400,000 | |||
Convertible preferred stock, shares issued upon conversion (in shares) | 0.001 | ||||
Class of warrant or right, exercise price of warrants or rights (in usd per share) | $ 160 | ||||
Number of days rights are not exercisable until beneficial ownership percentage is announced | 10 days | ||||
Equity method investment, ownership percentage | 10.00% | ||||
Minimum period before exercisable | 10 days | ||||
Repurchase Program 2015 | |||||
Class of Stock [Line Items] | |||||
Share Repurchase Agreement, commenced date | Feb. 5, 2015 | ||||
Existing share repurchase authorization amount | $ 500,000,000 | ||||
Open Markets | |||||
Class of Stock [Line Items] | |||||
Shares repurchase and cancelled during period (in shares) | 568,239 | 787,138 | |||
Shares repurchase and cancelled during period, value | $ 25,000,000 | $ 36,500,000 | |||
Average price (in usd per share) | $ 44 | $ 46.32 | |||
Passive Institutional Investors | |||||
Class of Stock [Line Items] | |||||
Equity method investment, ownership percentage | 15.00% | ||||
Preference shares | |||||
Class of Stock [Line Items] | |||||
Convertible preferred stock, shares issued upon conversion (in shares) | 1 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 3 Months Ended | ||||
Mar. 31, 2016USD ($)Agreementshares | Mar. 31, 2016GBP (£)Agreementshares | Mar. 31, 2015USD ($)shares | Feb. 08, 2016shares | Feb. 10, 2015shares | |
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Options grants in period (in shares) | shares | 0 | 0 | 0 | ||
Options exercised (in shares) | shares | 27,210 | 27,210 | 83,938 | ||
Compensation costs | $ 0 | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 8.33% | 8.33% | |||
Percentage of restricted share units vested and issued | 100.00% | 100.00% | |||
Achievement One | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Achieved and required performance growth, percentage | 4.65% | 4.65% | |||
Percentage of initial shares granted | 33.33% | 33.33% | |||
Achievement Two | Minimum | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Achieved and required performance growth, percentage | 4.65% | 4.65% | |||
Eligible for vesting, percent | 10.00% | 10.00% | |||
Achievement Two | Maximum | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Achieved and required performance growth, percentage | 9.30% | 9.30% | |||
Eligible for vesting, percent | 100.00% | 100.00% | |||
Achievement Three | Minimum | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Achieved and required performance growth, percentage | 9.30% | 9.30% | |||
Eligible for vesting, percent | 100.00% | 100.00% | |||
Achievement Three | Maximum | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Achieved and required performance growth, percentage | 18.60% | 18.60% | |||
Eligible for vesting, percent | 200.00% | 200.00% | |||
Employee Share Purchase Plans | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Compensation costs charged in ESPP | $ 300,000 | $ 300,000 | |||
Sharesave Scheme | |||||
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 | 3 years | 3 years | |||
Purchase price of fair market value | (85.00%) | (85.00%) | |||
2013 Share Incentive Plan | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Shares available to grant under incentive plan (in shares) | shares | 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] | |||||
Shares available to grant under incentive plan (in shares) | shares | 595,683 | 595,683 | |||
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 | |||
Additional employee contribution period | 1 year | 1 year | |||
Shares issued (in shares) | shares | 525 | 525 | 52,452 | ||
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 other equity incentives | Agreement | 3 | 3 | |||
Performance Shares | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Compensation costs | $ 1,600,000 | $ 200,000 | |||
Granted, number of shares (in shares) | shares | 278,477 | 278,477 | 277,585 | ||
Tax benefit from compensation expense | $ 400,000 | $ 100,000 | |||
Stock Options | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Exercise period | 10 years | 10 years | |||
Restricted Share Units | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting period | 3 years | 3 years | |||
Compensation costs | $ 2,100,000 | $ 2,500,000 | |||
Granted, number of shares (in shares) | shares | 275,719 | 275,719 | 238,315 | ||
Fair value adjustment capitalized amount | $ 400,000 | $ 300,000 | |||
Tax benefit from compensation expense | 500,000 | 1,100,000 | |||
Restricted Share Units | Director | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Compensation costs | 400,000 | 300,000 | |||
RSUs for non-employee directors (in shares) | shares | 24,456 | 27,620 | |||
Restricted Share Units | Board of Directors Chairman | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
RSUs for non-employee directors (in shares) | shares | 10,952 | 12,154 | |||
Phantom Shares | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Compensation costs | $ 400,000 | $ 900,000 | |||
Granted, number of shares (in shares) | shares | 146,357 | 146,357 | 135,651 | ||
Fair value adjustment capitalized amount | $ 1,000,000 | $ 1,100,000 | |||
Tax benefit from compensation expense | $ 200,000 | $ 400,000 | |||
Grants in 2007 | Stock Options | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting period | 7 years | 7 years | |||
Grant Year 2015 and 2016 | Performance Shares | |||||
Non Employee Share Based Compensation Arrangement With Individual Share Based Payments By Title Of Individual [Line Items] | |||||
Vesting rule, threshold percent of eligible shares | 100.00% | 100.00% | |||
Vesting rule, maximum vesting percent of eligible shares | 100.00% | 100.00% |
Intangible Assets and Goodwil67
Intangible Assets and Goodwill - Summary of Changes in Intangible Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets and Goodwill, Acquired | $ 56.8 | |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Amortization | 0.7 | $ 0 |
Goodwill [Roll Forward] | ||
Goodwill | 0 | 0 |
Goodwill, Acquired During Period | 22.1 | |
Goodwill | 22.1 | 0 |
Intangible assets and goodwill, Beginning of the period | 18.2 | 18.2 |
Intangible assets and goodwill, End of the period | 74.3 | 18.2 |
Trade Mark | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 1.6 | |
Intangible Assets, Additions | 4 | |
Intangible Assets, End of the period | 1.6 | |
Insurance Licenses | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 16.6 | 16.6 |
Intangible Assets, Additions | 0 | |
Amortization | 0 | 0 |
Intangible Assets, End of the period | 16.6 | 16.6 |
Agency Relationships | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 0 | 0 |
Intangible Assets, Additions | 25 | |
Amortization | 0.4 | 0 |
Intangible Assets, End of the period | 24.6 | 0 |
Non-compete Agreements | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 0 | 0 |
Intangible Assets, Additions | 2.9 | |
Amortization | 0.1 | 0 |
Intangible Assets, End of the period | 2.8 | 0 |
Value of Business Acquired | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 0 | 0 |
Intangible Assets, Additions | 1.8 | |
Amortization | 0 | 0 |
Intangible Assets, End of the period | 1.8 | 0 |
Consulting Relationships | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 0 | 0 |
Intangible Assets, Additions | 1 | |
Amortization | 0.1 | 0 |
Intangible Assets, End of the period | 0.9 | 0 |
Trade Mark | ||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | ||
Intangible Assets, Beginning of the period | 1.6 | 1.6 |
Amortization | 0.1 | 0 |
Intangible Assets, End of the period | $ 5.5 | $ 1.6 |
Intangible Assets and Goodwil68
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Millions | Jan. 21, 2016 | Jan. 19, 2016 | Apr. 05, 2005 | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Business Combination, Contingent Consideration, Asset, Noncurrent | $ 14.1 | ||||||
Business Combination, Consideration Transferred, Other | $ 22.8 | ||||||
Business Combination, Consideration Transferred, Liabilities Incurred | 2 | ||||||
Business Combination, Consideration Transferred | 69.1 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 12 | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Residual Assets | 0.3 | ||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 47 | ||||||
Goodwill, Acquired During Period | 22.1 | ||||||
AgriLogic [Member] | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Percentage of interests acquired | 100.00% | ||||||
Aggregate consideration for sale and purchase agreement | $ 53 | ||||||
Aspen U.K. | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Aggregate consideration for sale and purchase agreement | $ 1.6 | ||||||
Trade Mark | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | 4 | 1.6 | $ 1.6 | ||||
Intangible Assets, Additions | $ 4 | ||||||
Asset amortization period | 10 years | ||||||
Insurance Licenses | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | $ 16.6 | 16.6 | $ 16.6 | $ 16.6 | |||
Intangible Assets, Additions | 0 | ||||||
Insurance Licenses | Aspen U.K. | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Acquired licenses | 2.1 | ||||||
Insurance Licenses | Aspen Specialty | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Acquired licenses | 4.5 | ||||||
Insurance Licenses | AAIC | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Acquired licenses | 10 | ||||||
Agency Relationships | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | 25 | 24.6 | 0 | 0 | 0 | ||
Intangible Assets, Additions | $ 25 | ||||||
Asset amortization period | 15 years | ||||||
Consulting Relationships | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | $ 1 | $ 0.9 | 0 | 0 | 0 | ||
Intangible Assets, Additions | $ 1 | ||||||
Asset amortization period | 10 years | ||||||
Non-compete Agreements | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | $ 2.8 | 0 | 0 | 0 | |||
Intangible Assets, Additions | $ 2.9 | ||||||
Asset amortization period | 5 years | ||||||
Value of Business Acquired | |||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||
Value of the asset | $ 1.8 | $ 0 | $ 0 | $ 0 | |||
Intangible Assets, Additions | $ 1.8 |
Commitments and Contingent Li69
Commitments and Contingent Liabilities - Schedule of Company's Restricted Assets (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | $ 4,384.1 | $ 4,395.1 | |
Total as percent of investable assets(2) | [1] | 49.50% | 49.60% |
Letters of credit / guarantees | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | [2] | $ 697.8 | $ 708.5 |
Affiliated transactions | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | 1,316.2 | 1,421 | |
Third party | |||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | |||
Total restricted assets | $ 2,370.1 | $ 2,265.6 | |
[1] | 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. | ||
[2] | As at March 31, 2016, the Company pledged funds of $687.5 million and £7.2 million (December 31, 2015 — $697.6 million and £7.1 million) as collateral for the secured letters of credit. |
Commitments and Contingent Li70
Commitments and Contingent Liabilities - Narrative (Details) | Jan. 19, 2016USD ($) | Jun. 12, 2013USD ($) | Mar. 31, 2016USD ($) | Mar. 31, 2016GBP (£) | Dec. 31, 2015USD ($) | Dec. 31, 2015GBP (£) | Mar. 31, 2015USD ($) |
Line of Credit Facility [Line Items] | |||||||
Business Combination, Consideration Transferred, Liabilities Incurred | $ 2,000,000 | ||||||
Deposit securities and cash as collateral secured letters of credit | $ 687,500,000 | £ 7,200,000 | $ 697,600,000 | £ 7,100,000 | |||
Assets held by insurance regulators | 447,200,000 | 436,800,000 | |||||
Minimum capital required | £ | £ 400,000 | £ 400,000 | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||||
Cash collateral provided | 5,700,000 | $ 10,100,000 | |||||
Line Of Credit Facility Increasable Capacity | $ 100,000,000 | ||||||
Long-term Line of Credit | 0 | ||||||
Line Of Credit Facility Tangible Net Worth Restrictions Minimum | $ 2,428,600,000 | ||||||
Line Of Credit Facility Tangible Net Worth Net Income Restriction | 50.00% | ||||||
Line Of Credit Facility Tangible Net Worth Cash Proceeds From Issuance Of Capital Stock Restriction | 50.00% | ||||||
Percentage Of Consolidated Leverage Ratio Permitted | 35.00% | ||||||
Citi Europe | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 575,000,000 | ||||||
Barclays Bank PLC | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Maximum borrowing capacity | $ 100,000,000 | ||||||
Outstanding letters of credit | $ 0 | ||||||
LIBOR | Citi Europe | Letter of Credit | |||||||
Line of Credit Facility [Line Items] | |||||||
Variable rate basis spread | 1.00% |
Commitments and Contingent Li71
Commitments and Contingent Liabilities - Amounts Outstanding under Operating Leases (Details) $ in Millions | Mar. 31, 2016USD ($) |
Leases [Abstract] | |
2,016 | $ 8.5 |
2,017 | 16.4 |
2,018 | 15.7 |
2,019 | 13.9 |
2,020 | 10 |
Later Years | 89.3 |
Total | $ 153.8 |