Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2018shares | |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
Document Fiscal Period Focus | Q3 |
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 Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 59,697,669 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Investments: | ||
Fixed income securities, available for sale at fair value (amortized cost — $5,273.4 and $5,201.2) | $ 5,176.4 | $ 5,231 |
Fixed income securities, trading at fair value (amortized cost — $1,434.2 and $1,634.9) | 1,407.2 | 1,649.3 |
Equity securities, trading at fair value (cost — $0 and $414.8) | 0 | 491 |
Short-term investments, available for sale at fair value (amortized cost — $120.4 and $90.0) | 120.4 | 89.9 |
Short-term investments, trading at fair value (amortized cost — $4.3 and $73.0) | 4.3 | 73 |
Catastrophe bonds, trading at fair value (cost — $37.7 and $33.5) | 37.4 | 32.4 |
Investments, equity method | 66.9 | 66.4 |
Other investments | 100.5 | 0 |
Total investments | 6,913.1 | 7,633 |
Cash and cash equivalents (including $41.0 and $166.6 within consolidated variable interest entities) | 1,026.6 | 1,054.8 |
Reinsurance recoverables | ||
Unpaid losses | 1,767.1 | 1,515.2 |
Ceded unearned premiums | 666.5 | 515.5 |
Receivables | ||
Underwriting premiums | 1,700.1 | 1,496.5 |
Other | 202.2 | 151.1 |
Funds withheld | 91.6 | 99.8 |
Deferred policy acquisition costs | 290.1 | 294.3 |
Derivatives at fair value | 6.4 | 6.4 |
Receivables for securities sold | 7.7 | 5.3 |
Office properties and equipment | 75 | 75.5 |
Tax recoverable | 24.3 | 2.3 |
Deferred tax assets | 26.3 | 28.3 |
Other assets | 0.5 | 0.5 |
Intangible assets and goodwill | 26.7 | 27.9 |
Total assets | 12,824.2 | 12,906.4 |
Insurance reserves | ||
Losses and loss adjustment expenses | 6,726.2 | 6,749.5 |
Unearned premiums | 1,974.4 | 1,820.8 |
Total insurance reserves | 8,700.6 | 8,570.3 |
Payables | ||
Reinsurance premiums | 586.4 | 357.5 |
Accrued expenses and other payables | 333.6 | 455.4 |
Liabilities under derivative contracts | 3.1 | 1 |
Total payables | 923.1 | 813.9 |
Loan notes issued by variable interest entities, at fair value | 0 | 44.2 |
Long-term debt | 424.7 | 549.5 |
Total liabilities | 10,048.4 | 9,977.9 |
Commitments and contingent liabilities (see Note 16) | 0 | 0 |
SHAREHOLDERS’ EQUITY | ||
Ordinary shares, value | 0.1 | 0.1 |
Preference shares: | ||
Non-controlling interest | 2.9 | 2.7 |
Additional paid-in capital | 966 | 954.7 |
Retained earnings | 1,962 | 2,026.9 |
Accumulated other comprehensive income, net of taxes | (155.2) | (55.9) |
Total shareholders’ equity | 2,775.8 | 2,928.5 |
Total liabilities and shareholders’ equity | 12,824.2 | 12,906.4 |
5.95% preference shares | ||
Preference shares: | ||
Preference shares, value | 0 | 0 |
5.625% preference shares | ||
Preference shares: | ||
Preference shares, value | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
Fixed income securities, available for sale, amortized cost | $ 5,273.4 | $ 5,201.2 |
Short-term investments, trading at fair value, amortized cost | 1,434.2 | 1,634.9 |
Equity securities, trading at fair value, cost | 0 | 414.8 |
Catastrophe bonds, trading at fair value, cost | 37.7 | 33.5 |
Cash and cash equivalents, within consolidated VIEs | $ 41 | $ 166.6 |
Ordinary shares, par value (in usd per share) | $ 0.0015144558 | $ 0.0015144558 |
Ordinary shares, issued (in shares) | 59,697,669 | 59,474,085 |
Preference shares, par value (in usd per share) | $ 0.0015144558 | $ 0.0015144558 |
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) | $ 0.0015144558 | $ 0.0015144558 |
5.625% preference shares | ||
Preference shares, issued (in shares) | 10,000,000 | 10,000,000 |
Preference shares, rate | 5.625% | 5.625% |
Preference shares, par value (in usd per share) | $ 0.0015144558 | $ 0.0015144558 |
Short-term Investments | ||
Short term investments, available for sale at fair value | $ 120.4 | $ 90 |
Short term investments, trading at fair value | ||
Short term investments, trading at fair value | $ 4.3 | $ 73 |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Revenues | ||||
Net earned premium | $ 623.2 | $ 652.5 | $ 1,676.2 | $ 1,795.6 |
Net investment income | 48 | 46.4 | 145.7 | 141.5 |
Realized and unrealized investment gains | 1.8 | 29.9 | 105.9 | 130.1 |
Other income | 1.4 | (2.2) | 5.6 | 5 |
Total revenues | 674.4 | 726.6 | 1,933.4 | 2,072.2 |
Expenses | ||||
Losses and loss adjustment expenses | 431.1 | 776.2 | 1,051.7 | 1,450.5 |
Amortization of deferred policy acquisition costs | 101 | 105.4 | 277.7 | 315.4 |
General, administrative and corporate expenses | 160.4 | 110.9 | 391.6 | 352.1 |
Interest on long-term debt | 5.4 | 7.4 | 20.4 | 22.2 |
Change in fair value of derivatives | (7.2) | (4.5) | 15.4 | (25.2) |
Change in fair value of loan notes issued by variable interest entities | 1.7 | (9.8) | 4.1 | (3.6) |
Realized and unrealized investment losses | 2.7 | 12.4 | 165.2 | 24.4 |
Realized loss on the debt extinguishment | 0 | 0 | 8.6 | 0 |
Net realized and unrealized foreign exchange losses/(gains) | 9.5 | (8.4) | 9 | 21.1 |
Other expenses | 0.4 | 0 | 2.1 | 2 |
Total expenses | 705 | 989.6 | 1,945.8 | 2,158.9 |
(Loss) from operations before income tax | (30.6) | (263) | (12.4) | (86.7) |
Income tax credit | 15.5 | 9.2 | 13.4 | 5.2 |
Net (loss)/income | (15.1) | (253.8) | 1 | (81.5) |
Amount attributable to non-controlling interest | 0.1 | (0.6) | (0.2) | (0.8) |
Net (loss)/income attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | (15) | (254.4) | 0.8 | (82.3) |
Available for sale investments: | ||||
Reclassification adjustment for net realized gains on investments included in net income | 0.3 | (1) | 3.5 | (2.8) |
Change in net unrealized (losses)/gains on available for sale securities held | (21.3) | 1.3 | (130.2) | 18 |
Net change from current period hedged transactions | (0.5) | (0.4) | (2.2) | 3.3 |
Change in foreign currency translation adjustment | 2 | (4.9) | 26.9 | (49.7) |
Other comprehensive (loss), gross of tax | (19.5) | (5) | (102) | (31.2) |
Tax thereon: | ||||
Reclassification adjustment for net realized gains on investments included in net income | (0.1) | 0.2 | (0.4) | 0.4 |
Change in net unrealized gains/(losses) on available for sale securities held | 1.4 | (0.6) | 8.4 | (1.8) |
Net change from current period hedged transactions | 0.1 | 0 | 0.4 | (0.5) |
Change in foreign currency translation adjustment | 2.3 | 2.3 | (5.7) | 12.9 |
Total tax on other comprehensive income | 3.7 | 1.9 | 2.7 | 11 |
Other comprehensive (loss), net of tax | (15.8) | (3.1) | (99.3) | (20.2) |
Total comprehensive (loss) attributable to Aspen Insurance Holdings Limited’s ordinary shareholders | $ (30.8) | $ (257.5) | $ (98.5) | $ (102.5) |
Weighted average number of ordinary share and share equivalents | ||||
Basic (in shares) | 59,692,623 | 59,759,730 | 59,637,361 | 59,862,540 |
Diluted (in shares) | 59,692,623 | 59,759,730 | 59,637,361 | 59,862,540 |
Basic (loss) per ordinary share adjusted for preference share dividends | $ (0.38) | $ (4.48) | $ (0.37) | $ (1.99) |
Diluted (loss) per ordinary share adjusted for preference share dividends | $ (0.38) | $ (4.48) | $ (0.37) | $ (1.99) |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Ordinary shares | Preference shares | 7.401% preference shares | 7.250% preference shares | Non-controlling interest | Additional paid-in capital | Additional paid-in capitalOrdinary shares | Additional paid-in capitalPreference shares | Retained earnings | Retained earningsOrdinary shares | Retained earningsPreference shares | Cumulative foreign currency translation adjustments, net of taxes: | Loss on derivatives, net of taxes: | Unrealized appreciation on investments, net of taxes: | |||
Shareholder's equity, beginning balance at Dec. 31, 2016 | $ 0.1 | $ 0 | $ 1.4 | $ 1,259.6 | $ 2,392.3 | $ (27.1) | $ (0.5) | $ 22.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change attributable to non-controlling interest for the period | $ (0.8) | 0.8 | (0.8) | |||||||||||||||
New ordinary shares issued | $ 0.4 | |||||||||||||||||
Ordinary shares repurchased and cancelled | (30) | (30) | ||||||||||||||||
Preference shares redeemed and cancelled | $ (293.2) | |||||||||||||||||
Preference shares redemption costs | 8 | (8) | [1] | |||||||||||||||
Share-based compensation | [2] | 7 | ||||||||||||||||
Net income/(loss) for the period | (81.5) | (81.5) | ||||||||||||||||
Dividends on ordinary shares | $ (42) | |||||||||||||||||
Dividends on preference shares | (28.7) | $ (28.7) | ||||||||||||||||
Change for the period, net of income tax | (36.8) | 13.8 | ||||||||||||||||
Shareholder's equity, ending balance at Sep. 30, 2017 | 3,162.9 | 0.1 | 0 | 2.2 | 951.8 | 2,234.1 | (63.9) | 2.3 | 36.3 | |||||||||
Shareholder's equity, beginning balance at Dec. 31, 2016 | 0.1 | 0 | 1.4 | 1,259.6 | 2,392.3 | (27.1) | (0.5) | 22.5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Preference shares redemption costs | [1] | 8 | ||||||||||||||||
Shareholder's equity, ending balance at Dec. 31, 2017 | 2,928.5 | 0.1 | 0 | 2.7 | 954.7 | 2,026.9 | (67.7) | 2.1 | 9.7 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net change from current period hedged transactions | 2.8 | |||||||||||||||||
Total accumulated other comprehensive (loss), net of taxes | (25.3) | |||||||||||||||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-09 | [3] | 2.8 | ||||||||||||||||
Total accumulated other comprehensive (loss), net of taxes | (55.9) | |||||||||||||||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-09 | 7.9 | 2.8 | ||||||||||||||||
Net change attributable to non-controlling interest for the period | (0.2) | 0.2 | (0.2) | |||||||||||||||
New ordinary shares issued | 2.6 | |||||||||||||||||
Ordinary shares repurchased and cancelled | $ 0 | |||||||||||||||||
Preference shares redeemed and cancelled | 0 | |||||||||||||||||
Preference shares redemption costs | 0 | $ 0 | [1] | 0 | [1] | |||||||||||||
Share-based compensation | [2] | 8.7 | ||||||||||||||||
Net income/(loss) for the period | 1 | 1 | ||||||||||||||||
Dividends on ordinary shares | $ (42.9) | |||||||||||||||||
Dividends on preference shares | (22.8) | $ (22.8) | ||||||||||||||||
Change for the period, net of income tax | 21.2 | (118.7) | ||||||||||||||||
Shareholder's equity, ending balance at Sep. 30, 2018 | 2,775.8 | $ 0.1 | $ 0 | $ 2.9 | $ 966 | 1,962 | $ (46.5) | 0.3 | $ (109) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Preferred Stock, Dividend Rate, Percentage | 7.401% | 7.25% | ||||||||||||||||
Net change from current period hedged transactions | $ (1.8) | |||||||||||||||||
Total accumulated other comprehensive (loss), net of taxes | $ (155.2) | |||||||||||||||||
Cumulative effect of new accounting principle in period of adoption | Accounting Standards Update 2016-09 | [3] | $ 0 | ||||||||||||||||
[1] | The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million. | |||||||||||||||||
[2] | The balance in 2017 includes $7.9 million reclassification from accrued expenses and other payable as a result of the classification of restricted share units as equity following the adoption of ASU 2016-09. | |||||||||||||||||
[3] | The $2.8 million relates to the cumulative effect-adjustment to opening retained earnings as a result of the classification of restricted share units as equity following the adoption of ASU 2016-09. The adjustment has been applied using a modified retrospective approach. |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | ||
Cash flows (used in)/from operating activities: | |||
Net income/(loss) | $ 1 | $ (81.5) | |
Proportion due to non-controlling interest | (0.2) | (0.8) | |
Adjustments to reconcile net income to net cash flows from operating activities: | |||
Depreciation and amortization | 32 | 39.7 | |
Share-based compensation | 8.7 | 7 | |
Realized and unrealized investment gains | (105.9) | (130.1) | |
Realized and unrealized investment losses | 165.2 | 24.4 | |
Deferred taxes | 1.9 | (5.6) | |
Change in fair value of loan notes issued by variable interest entities | 4.1 | (3.6) | |
Net realized and unrealized investment foreign exchange losses/(gains) | 6.3 | (10.7) | |
Net change from current period hedged transactions | (1.8) | 2.8 | |
Insurance reserves: | |||
Losses and loss adjustment expenses | 29.4 | 1,045.5 | |
Unearned premiums | 172 | 278.1 | |
Reinsurance recoverables: | |||
Unpaid losses | (258.4) | (797.9) | |
Ceded unearned premiums | (153) | (188.9) | |
Other receivables | (50.5) | (70.1) | |
Deferred policy acquisition costs | 0.6 | 9.6 | |
Reinsurance premiums payable | 233.4 | 108.3 | |
Funds withheld | 8.2 | (27) | |
Premiums receivable | (219.4) | (133.3) | |
Income tax payable | (23) | (1) | |
Accrued expenses and other payables | (31.3) | 13 | |
Fair value of derivatives and settlement of liabilities under derivatives | 2.1 | (16.7) | |
Long-term debt and loan notes issued by variable interest entities | (44.2) | (13.4) | |
Net cash (used in)/from operating activities | (222.8) | 47.8 | |
Cash flows from investing activities: | |||
(Purchases) of fixed income securities — Available for sale | (1,435.3) | (1,239.4) | |
(Purchases) of fixed income securities — Trading | (1,037.8) | (1,125.1) | |
Proceeds from sales and maturities of fixed income securities — Available for sale | 1,327 | 1,581.9 | |
Proceeds from sales and maturities of fixed income securities — Trading | 1,223.5 | 763.9 | |
(Purchases) of equity securities — Trading | (16.5) | (111.5) | |
Net (purchases)/sales of catastrophe bonds — Trading | (4) | 8.7 | |
Proceeds from sales of equity securities — Trading | 505.6 | 301.2 | |
(Purchases) of short-term investments — Available for sale | (85.8) | (42.7) | |
Proceeds from sales of short-term investments — Available for sale | 55.9 | 156.4 | |
(Purchases) of short-term investments — Trading | (8.3) | (68.7) | |
Proceeds from sales of short-term investments — Trading | 76.2 | 167.8 | |
Net change in (payable)/receivable for securities (purchased)/sold | 6 | 20.6 | |
Net (purchases) of other investments | (100) | 0 | |
Net (purchases) of equipment | (20.8) | (26.7) | |
Sale of investment | 0 | 9.3 | |
Net (purchases) of investments, equity method | (1.3) | (0.1) | |
Payments for acquisitions and investments, net of cash acquired | 0 | (2.3) | |
Net cash from investing activities | 484.4 | 393.3 | |
Cash flows (used in) financing activities: | |||
Proceeds from the issuance of ordinary shares, net of issuance costs | 2.6 | 0.4 | |
Ordinary shares repurchased | 0 | (30) | |
Preference share redemption | 0 | (293.2) | |
Repayment of long-term debt issued by Silverton | (78.4) | (115.9) | |
Dividends paid on ordinary shares | (42.9) | (42) | |
Dividends paid on preference shares | (22.8) | (28.7) | |
Cash paid for tax withholding purposes | [1] | (4.6) | (9.5) |
Long-term debt redeemed | (125) | 0 | |
Make-whole payment | (8.6) | 0 | |
Net cash (used in) financing activities | (279.7) | (518.9) | |
Effect of exchange rate movements on cash and cash equivalents | (10.1) | 13.3 | |
Decrease in cash and cash equivalents | (28.2) | (64.5) | |
Cash and cash equivalents at beginning of period | 1,054.8 | 1,273.8 | |
Cash and cash equivalents at end of period | 1,026.6 | 1,209.3 | |
Supplemental disclosure of cash flow information: | |||
Net cash paid/(received) during the period for income tax | 5.2 | (0.2) | |
Cash paid during the period for interest | $ 20.4 | $ 22.2 | |
[1] | The cash paid to the tax authority when withholding shares from employees’ awards for tax-withholding purposes has been reclassified from operating activity to financing activity following the adoption of ASU 2016-09. |
History, Organization and Busin
History, Organization and Business Combination | 9 Months Ended |
Sep. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
History and Organization and Business Combination | History, Organization and Business Combination History and Organization. Aspen Insurance Holdings Limited (“Aspen Holdings”) was incorporated on May 23, 2002 as a holding company headquartered in Bermuda. We underwrite specialty insurance and reinsurance on a global basis through our Operating Subsidiaries (as defined below) based in Bermuda, the United States and the United Kingdom: Aspen Insurance UK Limited (“Aspen U.K.”) and Aspen Underwriting Limited (corporate member of Lloyd’s Syndicate 4711, “AUL” and managed by Aspen Managing Agency Limited (“AMAL”)) (United Kingdom), Aspen Bermuda Limited (“Aspen Bermuda”) (Bermuda), Aspen Specialty Insurance Company (“Aspen Specialty”) and Aspen American Insurance Company (“AAIC”) (United States) (collectively, the “Operating Subsidiaries”). We also have branches in Australia, Canada, Ireland, Singapore, Switzerland and the United Arab Emirates. We 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. References to the “Company,” the “Group,” “we,” “us” or “our” refer to Aspen Holdings or Aspen Holdings and its subsidiaries. Business Combination. On August 28, 2018, the Company entered into a definitive agreement and plan of merger (the “Merger Agreement”) with Highlands Holdings, Ltd., a Bermuda exempted company (“Highlands”), and Highlands Merger Sub, Ltd., a Bermuda exempted company and wholly owned subsidiary of Highlands (“Merger Sub”). Under the Merger Agreement, subject to the satisfaction or waiver of certain conditions set forth therein, and in the related statutory merger agreement, the Company will merge with and into Merger Sub in accordance with the Bermuda Companies Act (the “Merger”), with the Company surviving the Merger as a wholly-owned subsidiary of Highlands. Highlands and Merger Sub are affiliates of certain investment funds managed by affiliates of Apollo Global Management, LLC (“Apollo”). Pursuant to the Merger Agreement, at the effective time of the Merger, each ordinary share of the Company issued and outstanding immediately prior to such time (other than ordinary shares owned by Aspen as treasury shares, owned by any subsidiary of the Company or owned by Highlands, Merger Sub or or any subsidiary of Highlands, which will be canceled as set forth in the Merger Agreement) will be converted into the right to receive $42.75 in cash, without interest and less any required withholding taxes. Each of the Company’s issued and outstanding 5.95% Fixed-to-Floating Rate Perpetual Non-Cumulative Preference Shares and 5.625% Perpetual Non-Cumulative Preference Shares (collectively, the “Preference Shares”) will remain issued and outstanding following the Merger. The Merger Agreement restricts the Company from declaring or paying any dividends other than the quarterly dividend on Aspen’s ordinary shares that were previously declared and publicly announced prior to the date of the Merger Agreement and periodic cash dividends on the Preference Shares in accordance with the terms of the applicable certificate of designation. The Merger is expected to close in the first half of 2019, subject to shareholder and regulatory approvals, and other closing conditions as set forth in the Merger Agreement including, among others, the maintenance of certain financial strength ratings of certain of the Company’s insurance subsidiaries. The Merger Agreement also contains certain termination rights, including Highlands’ right to terminate if the Company suffers aggregate losses exceeding $350 million resulting from certain catastrophic events occurring between July 1, 2018 and January 31, 2019. Additional information about the Merger is set forth in the Company's Current Report on Form 8-K filed with the United States Securities and Exchange Commission (the “SEC”) on August 28, 2018 and the exhibits thereto, including the Merger Agreement, and the Company's preliminary proxy statement on Schedule 14A filed with the SEC on September 22, 2018. |
Basis of Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2018 | |
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 considered necessary for a fair presentation have been included. Results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results that may be expected for the year ended December 31, 2018 . 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, 2017 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, 2017 contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 22, 2018 (File No. 001-31909). 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 assumptions and estimates relate to losses and loss adjustment expenses, reinsurance recoverables, gross written premiums and commissions which have not been reported to the Company such as those relating to proportional treaty reinsurance contracts, unrecognized tax benefits, the fair value of derivatives and the fair value of other investments. All material assumptions and estimates are regularly reviewed and adjustments made as necessary, but actual results could differ significantly from those expected when the assumptions or estimates were made. Accounting Pronouncements Adopted in 2018 On August 12, 2015, the Financial Standards Accounting Board (“FASB”) issued ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606)” which delayed the effective date of ASU 2014-09 by one year. This ASU is effective for annual periods beginning after December 15, 2017. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements because insurance contracts accounted for within the scope of Topic 944, Financial Services are exempt from this ASU and the Company has immaterial other revenue. On January 5, 2016, the FASB issued ASU 2016-1, “ Financial Instruments - Overall (Subtopic 825-10)” which enhances the reporting model for financial instruments. Included within the requirements of this ASU are the following: a) equity investments to be measured at fair value with changes in fair value recognized in net income; b) a simplification of the impairment assessment of equity investments without readily determinable fair values; c) public business entities to use the exit price concept when measuring the fair value of financial instruments for disclosure purposes; and d) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments required as a result of this ASU are effective for fiscal years beginning after December 15, 2017. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements because the Company’s equity portfolio, prior to being sold, was classified as held for trading with changes in fair value recognized through net income and no valuation allowance was required in relation to deferred tax asset related to available-for-sale securities. On February 28, 2018, the FASB issued ASU 2018-03, “ Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” which amends multiple areas in Subtopic 825-10 via improvements to clarify the Codification or to correct unintended application of guidance. This ASU is effective for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years beginning after June 15, 2018. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements. 2018 Accounting Pronouncements Not Yet Adopted On February 14, 2018, the FASB issued ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220)” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU 2018-02 to determine how it will be affected but no material impact is expected on the consolidated financial statements. On June 20, 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718)” which amends the scope of Topic 718 via improvements to non-employee share-based payment accounting. Amendments include allowing companies to account for share-based payment transactions with non-employees in the same way as share-based payment transactions with employees and includes elections that offer relief to non-public companies when measuring non-employee equity share options. This ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU 2018-07 to determine how it will be affected but no material impact is expected on the consolidated financial statements. On July 30, 2018, the FASB issued ASU 2018-11, “ Targeted Improvements (Topic 984)” which amends the transitional guidance of ASU 2016-2, “ Leases (Topic 842)” providing an alternative transition method to the existing modified retrospective method, allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments of this ASU are effective for fiscal years beginning after December 15, 2018, aligned to the effective date and transition requirements of ASU 2016-2. ASU 2016-2 is expected to have a material impact on the Company’s consolidated financial statements, by 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. On August 28, 2018, the FASB issued ASU 2018-13, “ Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (Topic 820)” which amends the disclosure requirements on fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This ASU will not have a material impact on the Company’s consolidated financial results but it will have an impact on the disclosures in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for periods beginning after December 15, 2019. Other accounting pronouncements were issued during the three and nine months ended September 30, 2018 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. |
Reclassifications from Accumula
Reclassifications from Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Reclassifications from Accumulated Other Comprehensive Income | Reclassifications from Accumulated Other Comprehensive Income The following tables set 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 and nine months ended September 30, 2018 and 2017 : Amount Reclassified from AOCI Details about the AOCI Components Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Affected Line Item in the Unaudited ($ in millions) Available for sale securities: Realized gains on sale of securities $ 0.8 $ 2.6 Realized and unrealized investment gains Realized (losses) on sale of securities (1.1 ) (1.6 ) Realized and unrealized investment losses (0.3 ) 1.0 Income from operations before income tax Tax on net realized (losses)/gains on securities 0.1 (0.2 ) Income tax credit/(expense) $ (0.2 ) $ 0.8 Net (loss)/income Realized derivatives: Net realized gains on settled derivatives $ (2.7 ) $ 1.2 General, administrative and corporate expenses Tax on settled derivatives 0.5 (0.2 ) Income tax credit/(expense) $ (2.2 ) $ 1.0 Net (loss)/income Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.4 ) $ 1.8 Net (loss)/income Amount Reclassified from AOCI Details about the AOCI Components Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Affected Line Item in the Unaudited Condensed Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gains on sale of securities $ 5.4 $ 8.2 Realized and unrealized investment gains Realized (losses) on sale of securities (8.9 ) (5.4 ) Realized and unrealized investment losses (3.5 ) 2.8 Income from operations before income tax Tax on net realized (losses)/gains on securities 0.4 (0.4 ) Income tax credit/(expense) $ (3.1 ) $ 2.4 Net (loss)/income Realized derivatives: Net realized gains on settled derivatives $ 0.3 $ 2.4 General, administrative and corporate expenses Tax on settled derivatives (0.1 ) (0.5 ) Income tax credit/(expense) $ 0.2 $ 1.9 Net (loss)/income Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.9 ) $ 4.3 Net (loss)/income |
Earnings per Ordinary Share
Earnings per Ordinary Share | 9 Months Ended |
Sep. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Ordinary Share | Earnings per Ordinary Share Basic earnings per ordinary share are calculated by dividing net income available to holders of Aspen Holdings’ ordinary shares by the weighted average number of ordinary shares outstanding. Net income available to ordinary shareholders is calculated by deducting preference share dividends and net income/(loss) attributable to non-controlling interest from net income/ (loss) after tax for the period. Diluted earnings per ordinary share are based on the weighted average number of ordinary shares and dilutive potential ordinary shares outstanding during the period of calculation using the treasury stock method. The following table sets forth the computation of basic and diluted earnings per ordinary share for the three and nine months ended September 30, 2018 and 2017 , respectively: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 ($ in millions, except share and per share amounts) Net (loss)/income $ (15.1 ) $ (253.8 ) $ 1.0 $ (81.5 ) Preference share dividends (7.6 ) (7.7 ) (22.8 ) (28.7 ) Preference share redemption costs (1) — (5.6 ) — (8.0 ) Net amount attributable to non-controlling interest 0.1 (0.6 ) (0.2 ) (0.8 ) Basic and diluted net (loss) available to ordinary shareholders (2) $ (22.6 ) $ (267.7 ) $ (22.0 ) $ (119.0 ) Ordinary shares: Basic weighted average ordinary shares 59,692,623 59,759,730 59,637,361 59,862,540 Weighted average effect of dilutive securities (2) (3) — — — — Total diluted weighted average ordinary shares 59,692,623 59,759,730 59,637,361 59,862,540 (Loss)/earnings per ordinary share: Basic $ (0.38 ) $ (4.48 ) $ (0.37 ) $ (1.99 ) Diluted (2) $ (0.38 ) $ (4.48 ) $ (0.37 ) $ (1.99 ) (1) The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million . (2) The basic and diluted number of ordinary shares was the same because the inclusion of dilutive securities in a loss-making period would be anti-dilutive. (3) Dilutive securities consist of employee restricted share units and performance shares associated with the Company’s long-term incentive plan, employee share purchase plans and director restricted share units as described in Note 14. Dividends. On October 24, 2018, the Company’s Board of Directors (the “Board of Directors”) declared the following quarterly dividends: Dividend Payable on: Record Date: 5.95% preference shares $ 0.3719 January 1, 2019 December 15, 2018 5.625% preference shares $ 0.3516 January 1, 2019 December 15, 2018 The Merger Agreement restricts the Company from declaring or paying any dividends other than the quarterly dividend on Aspen’s ordinary shares that were previously declared and publicly announced prior to the date of the Merger Agreement and periodic cash dividends on the Preference Shares in accordance with the terms of the applicable certificate of designation. |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company has two reporting business segments: Insurance and Reinsurance. The Company has determined its reportable segments, Aspen Insurance and Aspen Reinsurance, by taking into account the manner in which management makes operating decisions and assesses operating performance. 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. The Company uses underwriting ratios as measures of performance. The loss ratio is the ratio of losses and loss adjustment expenses to net earned premiums. The policy acquisition expense ratio is the ratio of amortization of deferred policy acquisition costs to net earned premiums. The general and administrative expense ratio is the ratio of general, administrative and corporate expenses to net earned premiums. The combined ratio is the sum of the loss ratio, the policy acquisition expense ratio and the general and administrative expense ratio. Reinsurance Segment. The reinsurance segment consists of property catastrophe reinsurance, other property reinsurance, casualty reinsurance and specialty reinsurance. ACM forms part of our property catastrophe reinsurance line of business as it focuses primarily 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 2017 Annual Report on Form 10-K filed with the SEC. 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 2017 Annual Report on Form 10-K filed with the SEC. Non-underwriting Disclosures. The Company has provided additional disclosures for corporate and other (non-operating) 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, none of which are 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 September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 396.4 $ 476.8 $ 873.2 Net written premiums 356.4 222.5 578.9 Gross earned premiums 475.3 498.3 973.6 Net earned premiums 388.5 234.7 623.2 Underwriting Expenses Losses and loss adjustment expenses 281.5 149.6 431.1 Amortization of deferred policy acquisition costs 75.7 25.3 101.0 General and administrative expenses 34.7 58.7 93.4 Underwriting (loss)/income $ (3.4 ) $ 1.1 (2.3 ) Corporate expenses (16.0 ) Non-operating expenses (1) (51.0 ) Net investment income 48.0 Realized and unrealized investment gains 1.8 Realized and unrealized investment losses (2.7 ) Change in fair value of loan notes issued by variable interest entities (1.7 ) Change in fair value of derivatives 7.2 Interest expense on long term debt (5.4 ) Net realized and unrealized foreign exchange losses (9.5 ) Other income 1.4 Other expenses (0.4 ) (Loss) before tax $ (30.6 ) Net reserves for loss and loss adjustment expenses $ 2,829.1 $ 2,130.0 $ 4,959.1 Ratios Loss ratio 72.5 % 63.7 % 69.2 % Policy acquisition expense ratio 19.5 10.8 16.2 General and administrative expense ratio 8.9 25.0 25.7 (2) Expense ratio 28.4 35.8 41.9 Combined ratio 100.9 % 99.5 % 111.1 % (1) Non-operating expenses includes $11.1 million of expenses related to the Company’s operating effectiveness and efficiency program (the “Effectiveness and Efficiency Program”) and $38.6 million of advisor fees related to the Merger. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. Three Months Ended September 30, 2017 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 431.5 $ 421.0 $ 852.5 Net written premiums 363.6 243.8 607.4 Gross earned premiums 464.0 449.3 913.3 Net earned premiums 382.0 270.5 652.5 Underwriting Expenses Losses and loss adjustment expenses 502.2 274.0 776.2 Amortization of deferred policy acquisition costs 61.5 43.9 105.4 General and administrative expenses 32.8 59.4 92.2 Underwriting (loss) $ (214.5 ) $ (106.8 ) (321.3 ) Corporate expenses (13.5 ) Non-operating expenses (1) (5.2 ) Net investment income 46.4 Realized and unrealized investment gains 29.9 Realized and unrealized investment losses (12.4 ) Change in fair value of loan notes issued by variable interest entities 9.8 Change in fair value of derivatives 4.5 Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange gains 8.4 Net other expense (2.2 ) (Loss) before tax $ (263.0 ) Net reserves for loss and loss adjustment expenses $ 2,865.8 $ 2,255.3 $ 5,121.1 Ratios Loss ratio 131.5 % 101.3 % 119.0 % Policy acquisition expense ratio 16.1 16.2 16.2 General and administrative expense ratio 8.6 22.0 17.0 (2) Expense ratio 24.7 38.2 33.2 Combined ratio 156.2 % 139.5 % 152.2 % (1) Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,345.9 $ 1,497.9 $ 2,843.8 Net written premiums 1,048.3 652.1 1,700.4 Gross earned premiums 1,216.5 1,445.2 2,661.7 Net earned premiums 960.0 716.2 1,676.2 Underwriting Expenses Losses and loss adjustment expenses 615.4 436.3 1,051.7 Amortization of deferred policy acquisition costs 194.4 83.3 277.7 General and administrative expenses 94.2 179.5 273.7 Underwriting income $ 56.0 $ 17.1 73.1 Corporate expenses (45.7 ) Non-operating expenses (1) (72.2 ) Net investment income 145.7 Realized and unrealized investment gains 105.9 Realized and unrealized investment losses (165.2 ) Realized loss on the debt extinguishment (8.6 ) Change in fair value of loan notes issued by variable interest entities (4.1 ) Change in fair value of derivatives (15.4 ) Interest expense on long term debt (20.4 ) Net realized and unrealized foreign exchange gains (9.0 ) Other income 5.6 Other expenses (2.1 ) (Loss) before tax $ (12.4 ) Net reserves for loss and loss adjustment expenses $ 2,829.1 $ 2,130.0 $ 4,959.1 Ratios Loss ratio 64.1 % 60.9 % 62.7 % Policy acquisition expense ratio 20.3 11.6 16.6 General and administrative expense ratio 9.8 25.1 23.4 (2) Expense ratio 30.1 36.7 40.0 Combined ratio 94.2 % 97.6 % 102.7 % (1) Non-operating expenses includes $31.5 million of expenses related to the Company’s Effectiveness and Efficiency Program and $38.6 million of advisor fees related to the Merger. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. Nine Months Ended September 30, 2017 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,332.4 $ 1,340.2 $ 2,672.6 Net written premiums 1,097.3 775.0 1,872.3 Gross earned premiums 1,112.2 1,302.1 2,414.3 Net earned premiums 932.2 863.4 1,795.6 Underwriting Expenses Losses and loss adjustment expenses 797.9 652.6 1,450.5 Amortization of deferred policy acquisition costs 174.4 141.0 315.4 General and administrative expenses 117.4 186.9 304.3 Underwriting (loss) $ (157.5 ) $ (117.1 ) (274.6 ) Corporate expenses (38.3 ) Non-operating expenses (1) (9.5 ) Net investment income 141.5 Realized and unrealized investment gains 130.1 Realized and unrealized investment losses (24.4 ) Change in fair value of loan notes issued by variable interest entities 3.6 Change in fair value of derivatives 25.2 Interest expense on long term debt (22.2 ) Net realized and unrealized foreign exchange (losses) (21.1 ) Other income 5.0 Other expenses (2.0 ) (Loss) before tax $ (86.7 ) Net reserves for loss and loss adjustment expenses $ 2,865.8 $ 2,255.3 $ 5,121.1 Ratios Loss ratio 85.6 % 75.6 % 80.8 % Policy acquisition expense ratio 18.7 16.3 17.6 General and administrative expense ratio 12.6 21.6 19.6 (2) Expense ratio 31.3 37.9 37.2 Combined ratio 116.9 % 113.5 % 118.0 % (1) Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Statements of Operations and Other Comprehensive Income Investment Income. The following table summarizes investment income for the three and nine months ended September 30, 2018 and 2017 : For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 ($ in millions) ($ in millions) Fixed income securities — Available for sale $ 33.0 $ 32.9 $ 99.8 $ 100.7 Fixed income securities — Trading 12.5 11.1 37.7 31.6 Short-term investments — Available for sale 0.4 0.1 0.9 0.4 Short-term investments — Trading 0.1 — 0.4 0.5 Fixed term deposits (included in cash and cash equivalents) 3.5 2.1 10.1 4.1 Equity securities — Trading — 2.8 1.9 11.7 Catastrophe bonds — Trading 0.5 0.5 1.8 1.3 Other investments, at fair value 0.5 — 0.5 — Total $ 50.5 $ 49.5 $ 153.1 $ 150.3 Investment expenses (2.5 ) (3.1 ) (7.4 ) (8.8 ) Net investment income $ 48.0 $ 46.4 $ 145.7 $ 141.5 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 and nine months ended September 30, 2018 and 2017 : For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 ($ in millions) ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 0.8 $ 2.3 $ 5.2 $ 7.8 Fixed income securities — gross realized (losses) (1.1 ) (1.6 ) (8.5 ) (5.3 ) Short-term investments — gross realized gains — — — 0.1 Short-term investments — gross realized (losses) (0.1 ) — (0.1 ) — Cash and cash equivalents — gross realized gains — 0.3 0.2 0.3 Cash and cash equivalents — gross realized (losses) — — (0.4 ) (0.1 ) Other-than-temporary impairments — (0.1 ) — (0.5 ) Trading: Fixed income securities — gross realized gains 1.0 3.0 3.6 8.3 Fixed income securities — gross realized (losses) (4.1 ) (0.2 ) (14.5 ) (2.6 ) Short-term investments — gross realized gains — 1.9 — 2.0 Short-term investments — gross realized (losses) (1.4 ) — (1.4 ) — Cash and cash equivalents — gross realized gains — 1.3 1.5 1.3 Cash and cash equivalents — gross realized (losses) (0.2 ) — (0.2 ) — Equity securities — gross realized gains — 46.1 94.5 55.0 Equity securities — gross realized (losses) — (7.4 ) (20.1 ) (12.4 ) Catastrophe bonds — net unrealized (losses) gains — (3.1 ) 0.9 (3.2 ) Net change in gross unrealized gains (losses) 4.5 (25.0 ) (119.2 ) 54.4 Investments — equity method: Gross realized and unrealized (loss) in MVI — — (0.2 ) (0.1 ) Gross realized (loss)/gain in Chaspark — — — 0.9 Gross realized and unrealized (loss) in Bene (0.3 ) — (0.6 ) (0.2 ) Total net realized and unrealized investment (losses) gains recorded in the statement of operations $ (0.9 ) $ 17.5 $ (59.3 ) $ 105.7 Change in available for sale net unrealized (losses) gains: Fixed income securities (21.0 ) 0.3 (126.7 ) 15.2 Total change in pre-tax available for sale unrealized (losses) gains (21.0 ) 0.3 (126.7 ) 15.2 Change in taxes 1.3 (0.4 ) 8.0 (1.4 ) Total change in net unrealized gains, net of taxes, recorded in other comprehensive income $ (19.7 ) $ (0.1 ) $ (118.7 ) $ 13.8 Balance Sheet Fixed Income Securities and Short-Term Investments — 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 and short-term investments as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,420.1 $ 0.8 $ (33.1 ) $ 1,387.8 U.S. agency 47.1 0.1 (0.8 ) 46.4 Municipal 51.9 1.7 (1.5 ) 52.1 Corporate 2,305.9 8.0 (47.9 ) 2,266.0 Non-U.S. government-backed corporate 91.4 0.1 (0.7 ) 90.8 Non-U.S. government 404.1 3.1 (1.8 ) 405.4 Asset-backed 18.7 — (0.2 ) 18.5 Agency mortgage-backed 934.2 4.3 (29.1 ) 909.4 Total fixed income securities — Available for sale 5,273.4 18.1 (115.1 ) 5,176.4 Total short-term investments — Available for sale 120.4 — — 120.4 Total $ 5,393.8 $ 18.1 $ (115.1 ) $ 5,296.8 As at December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,166.5 $ 4.5 $ (11.6 ) $ 1,159.4 U.S. agency 51.8 0.5 (0.2 ) 52.1 Municipal 53.0 2.1 (0.2 ) 54.9 Corporate 2,391.4 36.1 (11.8 ) 2,415.7 Non-U.S. government-backed corporate 91.5 0.3 (0.5 ) 91.3 Non-U.S. government 479.7 6.4 (1.2 ) 484.9 Asset-backed 26.3 — (0.1 ) 26.2 Agency mortgage-backed 941.0 13.7 (8.2 ) 946.5 Total fixed income securities — Available for sale 5,201.2 63.6 (33.8 ) 5,231.0 Total short-term investments — Available for sale 90.0 — (0.1 ) 89.9 Total $ 5,291.2 $ 63.6 $ (33.9 ) $ 5,320.9 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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 167.2 $ — $ (1.3 ) $ 165.9 Municipal 21.7 — (1.0 ) 20.7 Corporate 892.4 2.7 (20.2 ) 874.9 Non-U.S government-backed corporate — — — — Non-U.S. government 229.8 2.4 (4.7 ) 227.5 Asset-backed 5.0 — (0.1 ) 4.9 Agency mortgage-backed 118.1 — (4.8 ) 113.3 Total fixed income securities — Trading 1,434.2 5.1 (32.1 ) 1,407.2 Total short-term investments — Trading 4.3 — — 4.3 Total catastrophe bonds — Trading 37.7 0.1 (0.4 ) 37.4 Total $ 1,476.2 $ 5.2 $ (32.5 ) $ 1,448.9 As at December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 162.3 $ 0.4 $ (0.8 ) $ 161.9 Municipal 32.4 — (0.2 ) 32.2 Corporate 1,036.5 14.0 (4.2 ) 1,046.3 Non-U.S. government-backed corporate 1.0 — — 1.0 Non-U.S. government 196.1 6.9 (0.5 ) 202.5 Asset-backed 9.9 — — 9.9 Agency mortgage-backed 196.7 0.2 (1.4 ) 195.5 Total fixed income securities — Trading 1,634.9 21.5 (7.1 ) 1,649.3 Total short-term investments — Trading 73.0 — — 73.0 Total equity securities — Trading 414.8 83.5 (7.3 ) 491.0 Total catastrophe bonds — Trading 33.5 — (1.1 ) 32.4 Total $ 2,156.2 $ 105.0 $ (15.5 ) $ 2,245.7 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 $37.4 million as at September 30, 2018 . The bonds are either zero-coupon notes or receive quarterly interest payments based on variable interest rates with scheduled maturities ranging from 2018 to 2021. The redemption value of the bonds will adjust based on the occurrence or aggregate occurrence of a covered event, such as windstorms and earthquakes in the United States, Canada, the North Atlantic, South America, Europe, Japan or Australia. Investments — Equity Method. 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 provides micro-insurance products to assist global emerging consumers. The Company’s initial investment in the MVI was $0.8 million . The Company made an additional investment of $0.1 million in the twelve months ended December 31, 2017 and further investment of $0.1 million in the nine months ended September 30, 2018 . On July 26, 2016, the Company purchased through its wholly-owned subsidiary, Acorn Limited (“Acorn”), a 20% share of Bene Assicurazioni (“Bene”), an Italian-based motor insurer for a total consideration of $3.3 million . The investment is 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. The Company made an additional investment of $1.2 million in the nine months ended September 30, 2018 . On January 1, 2017, the Company purchased through its wholly-owned subsidiary, Aspen U.S. Holdings, Inc. (“Aspen U.S. Holdings”), a 49% share of Digital Risk Resources, LLC (“Digital Re”), a U.S.-based enterprise engaged in the business of developing, marketing and servicing turnkey information security and privacy liability insurance products, for a total consideration of $2.3 million . The investment is 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. On December 18, 2017, the Company acquired through its wholly-owned subsidiary, Aspen U.S. Holdings, a 23.2% share of Crop Re Services LLC (“Crop Re”), a newly formed U.S.-based subsidiary of CGB Diversified Services, Inc (“CGB DS”) in exchange for the sale of AG Logic Holdings, LLC (“AgriLogic”), the Company’s former U.S. crop insurance business. Total consideration for the sale of AgriLogic consisted of the 23.2% share of Crop Re valued at $62.5 million and cash in the amount of $5.9 million . Crop Re is responsible for directing the placement of reinsurance on behalf of CGB DS and CGB Insurance Company (“CGBIC”), an Indiana insurance company affiliate of CGB DS and an RMA licensed crop insurer. The remaining 76.8% of Crop Re is owned by CGB DS. AAIC’s primary crop insurance coverage will be run-off and AAIC, or an affiliate of AAIC, will provide quota share reinsurance to CGBIC for both federal and state regulated crop insurance as part of Aspen’s ownership in Crop Re. The investment in Crop Re represents the Company’s share of the net assets of Crop Re plus the difference between the cost of the investment and the amount of underlying equity in net assets, the basis difference. The Company has determined that this basis difference of $62.5 million represents the value attributable to the ability of Crop Re to direct the placement of reinsurance business under the reinsurance commitment contained within the operating agreement between Crop Re and the Company. The investment in Crop Re is 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. On September 18, 2018, Aspen U.S. Holdings sold a 60% interest in AgriLogic Consulting, LLC, its agricultural consulting business, to CGB DS and an individual investor. The Company’s residual 40% interest in AgriLogic Consulting, LLC, is valued at $ Nil . The tables below show the Company’s investments in the MVI, Bene, Digital Re and Crop Re for the three and nine months ended September 30, 2018 : For the Three Months Ended September 30, 2018 MVI Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment $ 0.3 $ 3.8 $ 0.5 $ 62.5 $ 67.1 Investment in the period — — — — — Realized/unrealized losses for the three months to September 30, 2018 0.1 (0.3 ) — — (0.2 ) Closing undistributed value of investment $ 0.4 $ 3.5 $ 0.5 $ 62.5 $ 66.9 Nine Months Ended September 30, 2018 MVI Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment $ 0.5 $ 2.9 $ 0.5 $ 62.5 $ 66.4 Investment in the period 0.1 1.2 — — 1.3 Realized/unrealized losses for the nine months to September 30, 2018 (0.2 ) (0.6 ) — — (0.8 ) Closing undistributed value of investment $ 0.4 $ 3.5 $ 0.5 $ 62.5 $ 66.9 Other Investments. On December 20, 2017, the Company committed $100.0 million as a limited partner to a real estate fund. The investment objective of the fund is to achieve attractive risk-adjusted returns through the acquisition of income producing, high quality assets in gateway cities located in the U.S. and Canada in the office, retail, industrial and multifamily sectors of the real estate market. On May 1, 2018, the Company received a demand for an initial capital call of $86.2 million and paid the capital call on May 10, 2018. On September 19, 2018, the Company received a demand for the final capital call of $13.8 million and paid the capital on September 28, 2018. For further information, refer to Note 16 in these unaudited condensed consolidated financial statements. Fixed Income Securities. The scheduled maturity distribution of available for sale fixed income securities as at September 30, 2018 and December 31, 2017 is set forth in the tables below. Actual maturities may differ from contractual maturities because issuers of securities may have the right to call or prepay obligations with or without call or prepayment penalties. As at September 30, 2018 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 445.6 $ 445.5 AA- Due after one year through five years 2,720.5 2,680.5 AA- Due after five years through ten years 1,044.4 1,008.5 AA- Due after ten years 110.0 114.0 A+ Subtotal 4,320.5 4,248.5 Agency mortgage-backed 934.2 909.4 AA+ Asset-backed 18.7 18.5 AAA Total fixed income securities — Available for sale $ 5,273.4 $ 5,176.4 As at December 31, 2017 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 561.7 $ 562.4 AA Due after one year through five years 2,486.7 2,492.2 AA- Due after five years through ten years 1,092.2 1,097.4 A+ Due after ten years 93.3 106.3 A Subtotal 4,233.9 4,258.3 Agency mortgage-backed 941.0 946.5 AA+ Asset-backed 26.3 26.2 AAA Total fixed income securities — Available for sale $ 5,201.2 $ 5,231.0 Guaranteed Investments. The Company held no investments which were guaranteed by mono-line insurers, excluding those with explicit government guarantees as September 30, 2018 and December 31, 2017 . The Company’s exposure to other third-party guaranteed debt was primarily to investments backed by non-U.S. government guaranteed issuers. Gross Unrealized Loss. The following tables summarize, 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 in the Company’s available for sale portfolio as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 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 $ 827.9 $ (15.3 ) $ 457.3 $ (17.8 ) $ 1,285.2 $ (33.1 ) 140 U.S. agency 25.5 (0.4 ) 13.1 (0.4 ) 38.6 (0.8 ) 15 Municipal 33.3 (1.1 ) 7.2 (0.4 ) 40.5 (1.5 ) 13 Corporate 1,466.5 (28.7 ) 416.7 (19.2 ) 1,883.2 (47.9 ) 725 Non-U.S. government-backed corporate 43.2 (0.3 ) 25.4 (0.4 ) 68.6 (0.7 ) 15 Non-U.S. government 193.8 (0.9 ) 50.1 (0.9 ) 243.9 (1.8 ) 61 Asset-backed 13.4 (0.2 ) 5.0 — 18.4 (0.2 ) 7 Agency mortgage-backed 426.3 (10.2 ) 360.0 (18.9 ) 786.3 (29.1 ) 265 Total fixed income securities — Available for sale 3,029.9 (57.1 ) 1,334.8 (58.0 ) 4,364.7 (115.1 ) 1,241 Total short-term investments — Available for sale 76.4 — — — 76.4 — 13 Total $ 3,106.3 $ (57.1 ) $ 1,334.8 $ (58.0 ) $ 4,441.1 $ (115.1 ) 1,254 As at December 31, 2017 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 $ 652.1 $ (5.1 ) $ 259.8 $ (6.5 ) $ 911.9 $ (11.6 ) 101 U.S. agency 20.1 (0.2 ) 6.1 — 26.2 (0.2 ) 10 Municipal 28.5 (0.2 ) — — 28.5 (0.2 ) 9 Corporate 699.3 (3.4 ) 360.7 (8.4 ) 1,060.0 (11.8 ) 412 Non-U.S. government-backed corporate 43.5 (0.3 ) 13.3 (0.2 ) 56.8 (0.5 ) 15 Non-U.S. government 206.2 (0.8 ) 32.0 (0.4 ) 238.2 (1.2 ) 47 Asset-backed 11.1 — 10.5 (0.1 ) 21.6 (0.1 ) 11 Agency mortgage-backed 257.6 (1.9 ) 301.9 (6.3 ) 559.5 (8.2 ) 156 Total fixed income securities — Available for sale 1,918.4 (11.9 ) 984.3 (21.9 ) 2,902.7 (33.8 ) 761 Total short-term investments — Available for sale 46.9 (0.1 ) — — 46.9 (0.1 ) 8 Total $ 1,965.3 $ (12.0 ) $ 984.3 $ (21.9 ) $ 2,949.6 $ (33.9 ) 769 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 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. The total OTTI charge for the three and nine months ended September 30, 2018 was $ Nil ( 2017 — $0.1 million and $0.5 million ). For a more detailed description of accounting policies for OTTI, please refer to Note 2(c) of the “Notes to the Audited Consolidated Financial Statements” in the Company’s 2017 Annual Report on Form 10-K filed with the SEC. |
Variable Interest Entities
Variable Interest Entities | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Variable Interest Entities | Variable Interest Entities As at September 30, 2018 , the Company had investments in two variable interest entities (“VIE”): Peregrine Reinsurance Ltd (“Peregrine”) and Silverton Re Ltd (“Silverton”). Peregrine. In November 2016, the Company, registered Peregrine as a segregated accounts company under the Bermuda Segregated Accounts Companies Act 2000, as amended. As at September 30, 2018 , Peregrine had four segregated accounts which were funded by a third party investor. The segregated accounts have not been consolidated as part of the Company’s consolidated financial statements. The Company has, however, determined that Peregrine has the characteristics of a VIE as addressed by the guidance in ASC 810, Consolidation . The Company concluded that it is not the primary beneficiary of the four segregated accounts of Peregrine but is the primary beneficiary of the Peregrine general fund and, similar to prior reporting periods, the Company has included the results of the Peregrine general fund in its consolidated financial statements. The Company’s exposure to Peregrine’s general fund is not material. 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 are collateralized and funded by Silverton through the issuance of one or more series of participating loan notes (collectively, the “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 Aspen U.K., the ceding reinsurers. Silverton was not renewed in 2017 and has not issued any Loan Notes since, in the future, any such quota share support for Aspen Re will be provided by a separate cell of Peregrine. All proceeds from the issuance of the Loan Notes were deposited into separate collateral accounts for each series of Loan Notes to fund Silverton’s obligations under a retrocession property quota share agreement entered into with Aspen Bermuda or Aspen Bermuda and Aspen U.K., as the case may be. The holders of the Loan Notes participate in any profit or loss generated by Silverton attributable to the operations of the respective Silverton segregated account. Any existing value of the 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 of Loan Notes with the final payment being contractually due on the respective maturity dates. The following tables show the total liability balance of the Loan Notes for the nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 86.6 $ 20.6 $ 107.2 Total change in fair value for the period 4.1 1.0 5.1 Total distributed in the period (78.4 ) (18.7 ) (97.1 ) Closing balance as at September 30, 2018 $ 12.3 $ 2.9 $ 15.2 Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) 12.3 2.9 15.2 Total aggregate unpaid balance as at September 30, 2018 $ 12.3 $ 2.9 $ 15.2 For the Nine Months Ended September 30, 2017 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 223.4 $ 54.5 $ 277.9 Total change in fair value for the period (3.6 ) (0.9 ) (4.5 ) Total distributed in the period (115.9 ) (28.8 ) (144.7 ) Closing balance as at September 30, 2017 $ 103.9 $ 24.8 $ 128.7 Liability Loan notes (long-term liabilities) $ 101.5 $ 24.2 $ 125.7 Accrued expenses (current liabilities) 2.4 0.6 3.0 Total aggregate unpaid balance as at September 30, 2017 $ 103.9 $ 24.8 $ 128.7 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 of Silverton as it owns all of Silverton’s voting shares and issued share capital, and has a significant financial interest and the power to control Silverton. As a result, the Company consolidated Silverton upon its formation. The Company has no other obligation to provide financial support to Silverton and neither the creditors nor beneficial interest holders of Silverton have recourse to the Company’s general credit. In the event of an extreme catastrophic property reinsurance event or severe credit-related event, there is a risk that Aspen Bermuda and Aspen U.K. would be unable to recover losses from Silverton. These two risks are mitigated as follows: i. Silverton has collateralized the aggregate limit provided to Aspen Bermuda and Aspen U.K. by way of a trust in favor of Aspen Bermuda and Aspen U.K. as beneficiaries; 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 | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,387.8 $ — $ — $ 1,387.8 U.S. agency — 46.4 — 46.4 Municipal — 52.1 — 52.1 Corporate — 2,266.0 — 2,266.0 Non-U.S. government-backed corporate — 90.8 — 90.8 Non-U.S. government 270.4 135.0 — 405.4 Asset-backed — 18.5 — 18.5 Agency mortgage-backed — 909.4 — 909.4 Total fixed income securities available for sale, at fair value 1,658.2 3,518.2 — 5,176.4 Short-term investments available for sale, at fair value 109.9 10.5 — 120.4 Held for trading financial assets, at fair value U.S. government 165.9 — — 165.9 Municipal — 20.7 — 20.7 Corporate — 874.9 — 874.9 Non-U.S. government-backed corporate — — — — Non-U.S. government 49.4 178.1 — 227.5 Asset-backed — 4.9 — 4.9 Agency mortgage-backed — 113.3 — 113.3 Total fixed income securities trading, at fair value 215.3 1,191.9 — 1,407.2 Short-term investments trading, at fair value 0.5 3.8 — 4.3 Equity investments trading, at fair value — — — — Catastrophe bonds trading, at fair value — 37.4 — 37.4 Other investments (1) — — — 100.5 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 6.4 — 6.4 Liabilities under derivative contracts — foreign exchange contracts — (3.1 ) — (3.1 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (12.3 ) (12.3 ) Total $ 1,983.9 $ 4,765.1 $ (12.3 ) $ 6,837.2 (1) Other investments represents our investment in a real estate fund and is measured at fair value using the net asset value per share practical expedient. As a result this has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated balance sheets. The investment the real estate fund is subject to restrictions as detailed in Note 16. Transfers of assets into or out of a particular level are recorded at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no significant transfers between Level 1, Level 2 and Level 3 during the nine months ended September 30, 2018 . The Company settled $78.4 million of Level 3 liabilities in respect of the Loan Notes issued by Silverton for the nine months ended September 30, 2018 . As at September 30, 2018 , there were no the assets classified as Level 3 and the Company’s Level 3 liabilities consisted solely of the Loan Notes issued by Silverton. As at December 31, 2017 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,159.4 $ — $ — $ 1,159.4 U.S. agency — 52.1 — 52.1 Municipal — 54.9 — 54.9 Corporate — 2,415.7 — 2,415.7 Non-U.S. government-backed corporate — 91.3 — 91.3 Non-U.S. government 341.2 143.7 — 484.9 Asset-backed — 26.2 — 26.2 Agency mortgage-backed — 946.5 — 946.5 Total fixed income securities available for sale, at fair value 1,500.6 3,730.4 — 5,231.0 Short-term investments available for sale, at fair value 87.3 2.6 — 89.9 Held for trading financial assets, at fair value U.S. government 161.9 — — 161.9 Municipal — 32.2 — 32.2 Corporate — 1,046.3 — 1,046.3 Non-U.S. government-backed corporate — 1.0 — 1.0 Non-U.S. government 24.5 178.0 — 202.5 Asset-backed — 9.9 — 9.9 Agency mortgage-backed — 195.5 — 195.5 Total fixed income securities trading, at fair value 186.4 1,462.9 — 1,649.3 Short-term investments trading, at fair value 73.0 — — 73.0 Equity investments trading, at fair value 491.0 — — 491.0 Catastrophe bonds trading, at fair value — 32.4 — 32.4 Other financial assets and liabilities, at fair value Derivatives at fair value – foreign exchange contracts — 6.4 — 6.4 Liabilities under derivative contracts – foreign exchange contracts — (1.0 ) — (1.0 ) Loan notes issued by variable interest entities, at fair value — — (44.2 ) (44.2 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (42.4 ) (42.4 ) Total $ 2,338.3 $ 5,233.7 $ (86.6 ) $ 7,485.4 Transfers of assets into or out of a particular level are recorded at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. During the twelve months ended December 31, 2017 , there were no transfers between Level 1, 2 and 3. The Company settled $115.6 million of Level 3 liabilities in respect of the Loan Notes issued by Silverton for the twelve months ended December 31, 2017 . As at December 31, 2017 , there were no assets classified as Level 3 and the Company’s Level 3 liabilities consisted solely of the Loan Notes issued by Silverton. The following table presents a reconciliation of the beginning and ending balances for all assets and liabilities measured at fair value on a recurring basis using Level 3 inputs for the three and nine months ended September 30, 2018 and 2017 : Reconciliation of Liabilities Using Level 3 Inputs Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 ($ in millions) Balance at the beginning of the period $ 25.3 $ 115.1 Distributed to third party (14.7 ) (1.4 ) Total change in fair value included in the statement of operations 1.7 (9.8 ) Balance at the end of the period (1) $ 12.3 $ 103.9 Reconciliation of Liabilities Using Level 3 Inputs Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 ($ in millions) Balance at the beginning of the period $ 86.6 $ 223.4 Distributed to third party (78.4 ) (115.9 ) Total change in fair value included in the statement of operations 4.1 (3.6 ) Balance at the end of the period (1) $ 12.3 $ 103.9 (1) The amount classified within accrued expenses and other payables was $12.3 million and $2.4 million as at September 30, 2018 and September 30, 2017 , 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 September 30, 2018 and December 31, 2017 , 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. 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 September 30, 2018 the Company obtained an average of 2.2 quotes per fixed income investment compared to 2.0 quotes as at December 31, 2017 . Pricing sources used in pricing fixed income investments as at September 30, 2018 and December 31, 2017 were as follows: As at September 30, 2018 As at December 31, 2017 Index providers 85 % 84 % Pricing services 13 11 Broker-dealers 2 5 Total 100 % 100 % Summary Pricing Information Table. A summary of securities priced using pricing information from index providers as at September 30, 2018 and December 31, 2017 is provided below: As at September 30, 2018 As at December 31, 2017 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 $ 1,553.6 100 % $ 1,321.3 100 % U.S. agency 44.6 96 % 43.4 83 % Municipal 22.3 31 % 37.4 43 % Corporate 2,980.9 95 % 3,299.6 83 % Non-U.S. government-backed corporate 40.0 44 % 44.0 48 % Non-U.S. government 360.4 57 % 399.4 58 % Asset-backed 7.7 33 % 13.5 37 % Agency mortgage-backed 553.1 54 % 605.0 53 % Total fixed income securities $ 5,562.6 85 % $ 5,763.6 84 % Equities — — % 491.0 100 % Total fixed income securities and equity investments $ 5,562.6 85 % $ 6,254.6 85 % The Company, in conjunction with its third-party accounting service provider, obtains an understanding of the methods, models and inputs used by the third-party pricing service and index providers to assess the ongoing appropriateness of vendors’ prices. The Company and its third-party accounting service provider also have controls in place to validate that amounts provided represent fair values. Processes to validate and review pricing include, but are not limited to: • quantitative analysis (e.g., comparing the quarterly return for each managed portfolio to its target benchmark, with significant differences identified and investigated); • comparison of market values obtained from pricing services, index providers and broker-dealers against alternative price sources for each security where further investigation is completed when significant differences exist for pricing of individual securities between pricing sources; • initial and ongoing evaluation of methodologies used by outside parties to calculate fair value; and • comparison of the fair value estimates to the Company’s knowledge of the current market. Prices obtained from pricing services, index providers and broker-dealers are not adjusted by us; however, prices provided by a pricing service, index provider or broker-dealer in certain instances may be challenged based on information available from market or 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, Non-U.S. 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 certain 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 remaining non-U.S government bonds are classified within Level 2 as they are not as actively traded. 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. 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 income investments and are classified within Levels 1 and 2. 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 globally in a deep, liquid market, providing substantial price transparency and accordingly are classified as Level 2. Other investments. The Company’s other investments represent our investment in a real estate fund. Adjustments to the fair value are made based on the net asset value of the investment. The net valuation criteria established by the manager of such investments are established in accordance with the governing documents and the asset manager’s valuation guidelines, which consider a two part approach: the discounted cash flows approach and the performance multiple approach, which uses a multiple/capitalization rate derived from market metrics from comparable companies or assets to produce operating performance metrics. Alternative valuation methodologies may be employed for investments with unusual characteristics. Loan Notes Issued by Silverton . Silverton, a licensed special purpose insurer, is consolidated into the Company’s accounts as a VIE. In the fourth quarter of 2014, Silverton issued an additional $85.0 million ( $70.0 million third-party funded) of Loan Notes with a maturity date of September 18, 2017. In the fourth quarter of 2015, Silverton issued an additional $125.0 million ( $100.0 million third-party funded) of Loan Notes with a maturity date of September 17, 2018. In the fourth quarter of 2016, Silverton issued an additional $130.0 million ( $105.0 million third-party funded) of Loan Notes with a maturity date of September 16, 2019. Silverton was not renewed in 2017 and has not issued any Loan Notes since, in the future, any such quota share support for Aspen Re will be provided by a separate cell of Peregrine. The Company elected to account for the Loan Notes at fair value using the guidance as prescribed under ASC 825, Financial Instruments as the Company believes it represents the most meaningful measurement basis for these liabilities. The Loan Notes are recorded at fair value at each reporting period and, as they are not quoted on an active market and contain significant unobservable inputs, they have been classified as a Level 3 instrument in the Company’s fair value hierarchy. The 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 Loan Notes the Company runs an internal model which considers the seasonality of the risk assumed under the retrocessional agreement between Aspen Bermuda or a combination of Aspen Bermuda and Aspen U.K., as ceding reinsurers, and Silverton. The seasonality used in the model is initially 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 model are based on Company specific data due to the lack 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 Loan Notes while a decrease in reserves would normally result in an increase in the fair value of the Loan Notes. The observable and unobservable inputs used to determine the fair value of the Loan Notes as at September 30, 2018 and December 31, 2017 are presented in the tables below: As at September 30, 2018 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 12.3 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 As at December 31, 2017 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 86.6 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 (1) The amounts classified within accrued expenses and other payables were $12.3 million and $42.4 million as at September 30, 2018 and December 31, 2017 , respectively. The observable and unobservable inputs represent the potential variation around the inputs used in the internal model. The contract period is defined in the respective Loan Notes agreements and the initial value represents the funds received from third parties. For further information regarding Silverton, refer to Note 7 of these unaudited condensed consolidated financial statements. |
Reinsurance
Reinsurance | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Reinsurance | Reinsurance The Company purchases retrocession and reinsurance to limit and diversify the Company’s risk exposure and increase its own reinsurance and insurance 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 total amount recoverable by the Company from reinsurers as at September 30, 2018 was $1,767.1 million ( December 31, 2017 — $1,515.2 million ) of which $1,237.8 million was uncollateralized ( December 31, 2017 — $1,001.9 million ). As at September 30, 2018 16.8% ( December 31, 2017 — 17.0% ) of the Company’s uncollateralized reinsurance recoverables were with Munich Re which is rated A+ by A.M Best and AA- by S&P, 14.1% ( December 31, 2017 — 13.8% ) with Lloyd’s Syndicates which are rated A by A.M Best and A+ by S&P and 8.9% ( December 31, 2017 — 7.6% with Aioi Nissay Dowa Insurance Company) with Scor Global P&C SE which is rated A+ by A.M Best and AA- by S&P. These are the Company’s largest exposures to individual reinsurers. The Company has made no provision for doubtful debts from any of its reinsurers as at September 30, 2018 . |
Derivative Contracts
Derivative Contracts | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Contracts | Derivative Contracts The following tables summarize information on the location and amounts of derivative fair values on the consolidated balance sheet as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 661.5 $ 7.0 $ 577.7 $ 5.0 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 544.4 $ (3.1 ) (1) $ 173.9 $ (1.0 ) (1) Net of $0.5 million cash collateral ( December 31, 2017 — $0.6 million ). As at September 30, 2018 As at December 31, 2017 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 30.9 $ (0.6 ) $ 60.6 $ 1.4 The following table provides the unrealized and realized gains recorded in the statements of operations and other comprehensive income for derivatives that are not designated or designated as hedging instruments under ASC 815 - “Derivatives and Hedging” for the three and nine months ended September 30, 2018 and 2017 . Amount of Gain Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain Recognized on Derivatives September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Derivatives not designated as hedges ($ in millions) ($in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives 7.2 4.5 (15.4 ) 25.2 Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (2.7 ) 1.2 0.3 2.4 Foreign Exchange Contracts Net change from current period hedged transactions (0.5 ) (0.4 ) (2.2 ) 3.3 Foreign Exchange Contracts. The Company uses foreign exchange contracts to manage foreign currency risk associated with our operating expenses but also foreign exchange risk associated with net assets or liabilities in currencies other than the U.S. dollar. 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 September 30, 2018 , the Company held foreign exchange contracts that were not designated as hedging under ASC 815 with an aggregate notional value of $1,205.9 million ( December 31, 2017 — $751.6 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 and nine months ended September 30, 2018 , the impact of foreign exchange contracts on net income was a gain of $7.2 million ( September 30, 2017 — gain of $4.5 million ) and a loss of $15.4 million ( September 30, 2017 — gain of $25.2 million ), respectively. As at September 30, 2018 , the Company held foreign exchange contracts that were designated as hedging under ASC 815 with an aggregate nominal amount of $30.9 million ( December 31, 2017 — $60.6 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 the movement in other comprehensive income representing the effective portion for the three and nine months ended September 30, 2018 was a net unrealized loss of $0.5 million ( September 30, 2017 — loss of $0.4 million ) and a net unrealized loss of $2.2 million ( September 30, 2017 — gain of $3.3 million ), respectively. As the foreign exchange contracts settle, the realized gain or loss is reclassified from other comprehensive income into general, administration and corporate expenses of the statement of operations and other comprehensive income. For the three and nine months ended September 30, 2018 , the amount recognized within general, administrative and corporate expenses for settled foreign exchange contracts was a realized loss of $2.7 million ( September 30, 2017 — gain of $1.2 million ) and a realized gain of $0.3 million ( September 30, 2017 — gain of $2.4 million ), respectively. |
Deferred Policy Acquisition Cos
Deferred Policy Acquisition Costs | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 ($ in millions) ($ in millions) Balance at the beginning of the period $ 298.6 $ 364.6 $ 294.3 $ 358.4 Acquisition costs deferred 92.5 94.9 273.5 311.1 Amortization of deferred policy acquisition costs (101.0 ) (105.4 ) (277.7 ) (315.4 ) Balance at the end of the period $ 290.1 $ 354.1 $ 290.1 $ 354.1 |
Reserves for Losses and Loss Ad
Reserves for Losses and Loss Adjustment Expenses | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Reserves For Loss And 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 nine months ended September 30, 2018 and 2017 and the twelve months ended December 31, 2017 : Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Twelve Months Ended December 31, 2017 ($ in millions) Provision for losses and LAE at the start of the year $ 6,749.5 $ 5,319.9 $ 5,319.9 Less reinsurance recoverable (1,515.2 ) (560.7 ) (560.7 ) Net loss and LAE at the start of the year 5,234.3 4,759.2 4,759.2 Net loss and LAE expenses (disposed) — (125.7 ) (125.5 ) Provision for losses and LAE for claims incurred: Current year 1,151.4 1,543.3 2,100.1 Prior years (99.7 ) (92.8 ) (105.4 ) Total incurred 1,051.7 1,450.5 1,994.7 Losses and LAE payments for claims incurred: Current year (93.5 ) (150.4 ) (397.5 ) Prior years (1,170.1 ) (947.7 ) (1,157.6 ) Total paid (1,263.6 ) (1,098.1 ) (1,555.1 ) Foreign exchange losses/(gains) (63.3 ) 135.2 161.0 Net losses and LAE reserves at period end 4,959.1 5,121.1 5,234.3 Plus reinsurance recoverable on unpaid losses at period end 1,767.1 1,369.5 1,515.2 Provision for losses and LAE at the end of the relevant period $ 6,726.2 $ 6,490.6 $ 6,749.5 For the nine months ended September 30, 2018 , there was a reduction of $99.7 million in the Company’s estimate of the ultimate claims to be paid in respect of prior accident years compared to a reduction of $92.8 million for the nine months ended September 30, 2017 . The Company ceded $125.5 million of reserves as part of an adverse development cover purchased during the twelve months ended December 31, 2017 . 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. Insurance Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance As at September 30, 2018 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 $ (in millions) 2012 603.9 625.8 654.8 668.7 653.6 637.1 644.3 27.2 15,726 2013 688.3 666.7 677.9 659.2 649.4 651.7 34.4 14,661 2014 754.2 728.7 701.0 693.7 696.7 51.9 18,872 2015 913.8 903.6 852.8 864.4 124.8 21,221 2016 907.3 879.6 885.7 264.7 21,224 2017 894.2 815.6 158.6 21,367 2018 469.4 289.8 12,316 Total $ 5,027.8 Insurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 ($ in millions) 2012 117.1 307.5 377.9 452.1 502.0 523.8 530.4 2013 90.4 253.9 364.2 454.2 501.9 537.4 2014 99.4 247.1 389.2 465.1 507.8 2015 119.0 326.0 470.6 544.5 2016 117.1 345.5 448.2 2017 167.5 400.2 2018 54.5 Total $ 3,023.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 2,004.8 All outstanding liabilities before 2012, net of reinsurance 101.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,106.1 Reinsurance Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance As at September 30, 2018 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 $ (in millions) 2012 691.8 736.3 720.0 689.6 688.3 686.8 680.4 59.5 3,875 2013 578.6 571.0 548.8 523.1 503.8 497.8 59.0 3,737 2014 549.4 528.4 512.8 485.6 480.3 76.4 3,769 2015 578.5 562.7 556.6 537.8 103.7 4,006 2016 747.8 761.3 764.3 190.5 3,901 2017 1,187.2 1,185.0 339.2 4,165 2018 652.2 517.9 1,971 Total $ 4,797.8 Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 ($ in millions) 2012 63.0 247.7 360.4 414.2 458.1 495.8 514.0 2013 63.1 186.4 277.8 319.4 359.1 376.4 2014 56.9 172.1 247.8 288.4 314.4 2015 57.4 170.9 271.5 317.6 2016 125.5 350.5 420.7 2017 227.7 573.4 2018 39.0 Total $ 2,555.5 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 2,242.3 All outstanding liabilities before 2012, net of reinsurance 569.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,811.4 Nine Months Ended September 30, 2018 ($ in millions) Net outstanding liabilities: Insurance lines 2,106.1 Reinsurance lines 2,811.4 Net loss and LAE 4,917.5 Reinsurance recoverable on unpaid losses: Insurance lines 1,448.6 Reinsurance lines 318.5 Total reinsurance recoverable on unpaid losses 1,767.1 Insurance lines other than short-duration — Unallocated claims incurred 47.3 Other (5.7 ) 41.6 Provision for losses and LAE at the end of the period 6,726.2 |
Capital Structure
Capital Structure | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Capital Structure | Capital Structure The following table provides a summary of the Company’s authorized and issued share capital as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 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 59,697,669 90 59,474,085 90 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 Issued 5.625% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 10,000,000 15 10,000,000 15 Total issued share capital 122 122 Additional paid-in capital as at September 30, 2018 was $966.0 million ( December 31, 2017 — $954.7 million ). Additional paid-in capital includes the aggregate liquidation preferences of the Company’s preference shares of $525.0 million ( December 31, 2017 — $525.0 million ) less issue costs of $13.1 million ( December 31, 2017 — $13.1 million ). Ordinary Shares. The following table summarizes transactions in the Company’s ordinary shares during the nine months ended September 30, 2018 : Number of Ordinary Shares Ordinary shares in issue as at December 31, 2017 59,474,085 Ordinary share transactions in the nine months ended September 30, 2018 Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan 218,906 Ordinary shares issued to non-employee directors 4,678 Ordinary shares in issue as at September 30, 2018 59,697,669 Share Repurchase Authorization Program . On February 8, 2017, the Company’s Board of Directors approved a share repurchase authorization program of $250.0 million . The share repurchase authorization program, which expires on February 8, 2019, permits the Company to effect the repurchases of its ordinary shares from time to time through a combination of transactions, including open market purchases, privately negotiated transactions and accelerated share repurchase transactions. Under the Merger Agreement, the Company agreed not to redeem, purchase or otherwise acquire any outstanding ordinary shares unless Highlands consents in writing, except as otherwise set forth in the Merger Agreement. The Company did not acquire or cancel any ordinary shares for the three and nine months ended September 30, 2018 . The Company acquired and canceled 451,268 and 648,941 ordinary shares for the three and nine months ended September 30, 2017 , respectively. The total consideration paid for the three and nine months ended September 30, 2017 was $20.0 million and $30.0 million , respectively, and the average price per ordinary share for the three and nine months ended September 30, 2017 was $44.32 and $46.23 , respectively. Preference Share Issuance. The Company did not issue any preference shares for the three and nine months ended September 30, 2018 . The Company redeemed the outstanding 7.250% Perpetual Non-Cumulative Preference Shares on July 3, 2017. |
Share-Based Payments
Share-Based Payments | 9 Months Ended |
Sep. 30, 2018 | |
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 share incentive plan, the employee share purchase plans and the non-employee director stock incentive plan. When options are exercised or other equity awards (excluding phantom shares) vest, new ordinary shares are issued as the Company does not hold treasury shares. Phantom shares are settled in cash in lieu of ordinary shares upon vesting. (a) Employee Equity Incentives The total number of ordinary shares that may be issued under the Company’s 2013 Share Incentive Plan is 2,845,683 ordinary shares. Restricted Share Units. Restricted share units (“RSUs”) granted to employees typically vest over a three -year period subject to the employee’s continued service. RSUs granted to employees vest on the anniversary of the date of grant or when the Compensation Committee of the Board of Directors agrees to deliver them. Holders of RSUs will be paid one ordinary share for each RSU that vests as soon as practicable following the vesting date. Holders of RSUs generally will not be entitled to any rights of a holder of ordinary shares, including the right to vote, unless and until their RSUs vest and ordinary shares are issued but they are entitled to receive dividend equivalents. Dividend equivalents are denominated in cash and paid in cash if and when the underlying RSUs vest. The fair value of the RSUs is based on the closing price on the date of the grant less a deduction for illiquidity and is expensed through the income statement evenly over the vesting period. In the nine months ended September 30, 2018 , the Company granted 230,766 RSUs ( 2017 — 200,021 ) to its employees. Compensation costs charged against income in respect of RSUs granted to employees for the nine months ended September 30, 2018 were $6.8 million ( 2017 — $7.2 million ). The total tax credit recognized by the Company in relation to RSUs in the nine months ended September 30, 2018 was $1.6 million ( 2017 — $1.7 million ). Performance Shares. Performance share awards are subject to a three -year service vesting period with a separate annual growth in diluted book value per share (“BVPS”) test for each year, adjusted to add back ordinary shares and movements in AOCI to shareholders’ equity. Accordingly, one-third of the award may be earned in each calendar year. Performance share awards are not entitled to dividends before they vest and are subject to the employee’s continued employment. If performance goals are achieved, the performance shares will vest up to a maximum of 200% of target. Notwithstanding the vesting criteria for each given year, if in any given year the shares eligible for vesting are greater than 100% or 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 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 the limitation on 100% vesting. During the nine months ended September 30, 2018 , the Company granted 215,273 performance shares to its employees ( 2017 — 216,878 ). The fair value of performance share awards is based on the value of the closing ordinary share price on the date of the grant less a deduction for illiquidity and expected dividends which would not accrue during the vesting period. Net compensation costs charged against income in the nine months ended September 30, 2018 in respect of performance shares were $0.7 million ( 2017 — $0.4 million ). The total tax recognized by the Company in relation to performance shares in the nine months ended September 30, 2018 was a tax credit of $0.1 million ( 2017 — $0.1 million credit), excluding excess tax benefits. Phantom Shares. Phantom share awards are subject to a three -year service vesting period with a separate annual growth in diluted BVPS test for each year, adjusted to add back ordinary shares and movements in AOCI to shareholders’ equity. One-third of the award may be earned in each calendar year with the vested amount being paid in cash in lieu of ordinary shares. As ordinary shares are not issued, phantom shares have no dilutive effect. During the nine months ended September 30, 2018 , the Company granted 150,185 phantom shares to its employees ( 2017 — 173,619 ). The fair value of the phantom shares is based on the closing share price on the date of the grant less a deduction for illiquidity. The fair value is expensed through the consolidated income statement evenly over the vesting period. 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 nine months ended September 30, 2018 in respect of phantom shares were $0.1 million ( 2017 — $0.7 million ). The total tax recognized by the Company in relation to phantom shares in the nine months ended September 30, 2018 was $0.1 million ( 2017 — $0.2 million ), excluding excess tax benefits. (b) Employee Share Purchase Plans 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 ESPP, employees can save up to $500 per month over a two -year period, at the end of which they are eligible to purchase the Company’s ordinary shares at a discounted price. 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 are eligible to purchase the Company’s ordinary shares at a discounted price. Employees can purchase the Company’s ordinary shares at a discounted price equivalent to eighty-five percent ( 85% ) of the fair market value of the ordinary shares on the offering date which may be adjusted upon changes in capitalization of the Company. Under the Merger Agreement, the Company agreed not to commence any offering period to purchase the Company’s ordinary shares that would begin after the end of any offering period in effect as of the date of the Merger Agreement, not accept payroll deductions to be used to purchase ordinary shares under the ESPP after the end of any offering period in effect as of the date of the Merger Agreement and ensure that no new participants be permitted to participate in the ESPP and that existing participants may not increase their elections with respect to any offering period in effect as of the date of the Merger Agreement. Under the ESPP, 35,098 ordinary shares were exercised and issued during the nine months ended September 30, 2018 ( 2017 — 10,545 ). No ESPP options were granted in 2018. Compensation costs charged against income in the nine months ended September 30, 2018 in respect of the ESPP were $0.1 million ( 2017 — $0.3 million ). The total tax credit recognized by the Company in relation to the ESPP in the nine months ended September 30, 2018 was $ Nil ( 2017 — $ Nil ). (c) Non-Employee Director Plan On April 21, 2016, the shareholders of the Company approved the 2016 Stock Incentive Plan for Non-Employee Directors which provides for the granting of options, restricted share units or other share-based awards. The total number of ordinary shares that may be issued under the 2016 Non-Employee Director Plan is 263,695 . Restricted Share Units. RSUs granted to non-employee directors, including the Chairman, vest one-twelfth on each one month anniversary of the date of grant with 100% of the restricted share units becoming vested and issued on the first anniversary of the grant date or on the date of departure of a director for the amount vested through such date. The shares that are eligible to vest following final vesting date in the calendar year of the date of grant is delivered as soon as practical thereafter and the remaining shares under the RSUs are delivered on the first anniversary of the grant date. If a director leaves the Board of Directors for any reason other than “cause” (as defined in the award agreement), then the director would receive shares under the restricted share units that had vested through the date the director leaves the Board. RSUs entitle the holder to receive one ordinary share unit for each unit that vests. Holders of RSUs are not entitled to any of the rights of a holder of ordinary shares, including the right to vote, unless and until their units vest and ordinary shares are issued but they are entitled to receive dividend equivalents with respect to their units. Dividend equivalents will be denominated in cash and paid in cash if and when the underlying units vest. The following table summarizes information about RSUs issued to non-employee directors as at September 30, 2018 : Restricted Share Units As at September 30, 2018 As at September 30, 2017 RSU Holder Amount Granted Amount Granted Non-Employee Directors 29,025 22,230 Chairman 12,900 8,892 Compensation costs charged against income in respect of RSUs granted to non-employee directors for the nine months ended September 30, 2018 were $1.1 million ( 2017 — $1.1 million ). The total tax charge recognized by the Company in relation to non-employee RSUs in the nine months ended September 30, 2018 was $ Nil ( 2017 — $ Nil ). |
Intangible Assets and Goodwill
Intangible Assets and Goodwill | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets and Goodwill The following tables provide a summary of the Company’s intangible assets for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Additions Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trademarks $ 2.7 $ — $ — $ 2.7 $ 6.3 $ — $ (0.3 ) $ 6.0 Insurance Licenses 16.7 — — 16.7 16.7 — — 16.7 Agency Relationships 2.0 — (0.1 ) 1.9 25.1 — (0.5 ) 24.6 Non-compete Agreements 0.5 — (0.1 ) 0.4 3.0 — (0.3 ) 2.7 Consulting Relationships — — — — 0.8 — (0.1 ) 0.7 Goodwill 3.9 — — 3.9 26.0 — — 26.0 Renewal Rights 1.2 — (0.1 ) 1.1 1.5 — (0.1 ) 1.4 Total $ 27.0 $ — $ (0.3 ) $ 26.7 $ 79.4 $ — $ (1.3 ) $ 78.1 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Additions Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trademarks $ 2.9 $ — $ (0.2 ) $ 2.7 $ 6.6 $ — $ (0.6 ) $ 6.0 Insurance Licenses 16.7 — — 16.7 16.7 — — 16.7 Agency Relationships 2.3 — (0.4 ) 1.9 26.2 — (1.6 ) 24.6 Non-compete Agreements 0.7 — (0.3 ) 0.4 3.3 — (0.6 ) 2.7 Consulting Relationships — — — — 0.9 — (0.2 ) 0.7 Goodwill 3.9 — — 3.9 24.2 1.8 — 26.0 Renewal Rights 1.4 — (0.3 ) 1.1 1.7 — (0.3 ) 1.4 Total $ 27.9 $ — $ (1.2 ) $ 26.7 $ 79.6 $ 1.8 $ (3.3 ) $ 78.1 Crop Re and AgriLogic On January 19, 2016, Aspen U.S. Holdings acquired 100% of the equity voting interest of 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 was 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. In total, $34.0 million of intangible assets and $21.0 million of goodwill was eligible for tax deduction over the following 15 years. License to use the “AgriLogic” Trademark. 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 planned to amortize the estimated value of the trademark over its estimated useful life. Agency Relationships. The Company valued the agency relationships at $25.0 million with an estimated economic useful life of 15 years. The Company planned to amortize the estimated value of the agency relationships over its estimated useful life. Non-compete Agreements. The Company valued the non-compete agreements at $2.9 million with an estimated economic useful life of 5 years. The Company planned to amortize the estimated value of the non-compete agreements over its estimated useful life. Value of Business Acquired. 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 amortized the VOBA in line with the unwinding of the acquired unearned premium balances and loss reserves. Given the short tail nature of AgriLogic’s business, the VOBA was fully amortized in 2016. Consulting Relationships. The Company valued the consulting relationships at $1.0 million with an estimated economic useful life of 10 years. The Company planned to amortize the estimated value of the consulting relationships over its estimated useful life. Goodwill. The Company valued the goodwill at $22.1 million . The goodwill was deemed to have an indefinite useful life and was assessed for impairment annually. On December 18, 2017, Aspen U.S. Holdings sold its interest in AgriLogic to CGB Diversified Service, Inc (“CGB DS”) in exchange for a 23.2% equity interest in Crop Re Services LLC. Aspen U.S. Holdings retained the agricultural consulting business previously integrated within AgriLogic. Intangible assets disposed of as part of the AgriLogic sale included $21.8 million of agency relationships, $3.1 million for the right to use the AgriLogic trademark, $0.9 million of non-compete agreements and $20.6 million of goodwill. Following the sale the Company performed its annual qualitative assessment on the residual intangible assets of the agricultural consulting business and determined that it was more likely than not that the intangible assets were impaired. The Company therefore recognized an impairment charge of $3.4 million in the year ended December 31, 2017 . On September 18, 2018, Aspen U.S. Holdings sold a 60% interest in AgriLogic Consulting, LLC, its agricultural consulting business, to CGB DS and an individual investor, recognizing no gain or loss on disposal and de-consolidation. Intangible assets of the consulting business had previously been fully impaired. Blue Waters On October 31, 2016, Acorn acquired 100% of the equity voting interest of Blue Waters, a specialist marine insurance agency. The total consideration for the acquisition was $8.0 million . A significant proportion of the acquired business was represented by intangible assets, specifically $3.1 million for agency relationships, $1.5 million for the right to use the Blue Waters trademark, $1.0 million for non-compete agreements and $0.05 million for the value of trading licenses. In addition, $0.3 million of residual net assets were acquired. The total net assets acquired of $5.75 million resulted in the Company recognizing a total of $2.1 million in goodwill for the acquisition of Blue Waters. Agency Relationships . The Company valued the agency relationships at $3.1 million with an estimated economic useful life of 5 years. The Company will amortize the estimated value of the agency relationships over their estimated useful life. License to use the “Blue Waters” Trademark . The Company acquired the right to use the Blue Waters trademark in the United States. The Company valued the trademark at $1.5 million with an estimated economic useful life of 5 years. The Company will amortize the estimated value of the trademark over its estimated useful life. Non-compete Agreements . The Company valued the non-compete agreements at $1.0 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. Insurance Licenses . The Company valued the insurance licenses at $0.05 million . The insurance licenses are considered to have an indefinite useful life and are not amortized. The licenses are tested annually for impairment. Goodwill . The Company valued the goodwill at $2.1 million . The goodwill is deemed to have an indefinite useful life and will be assessed for impairment annually. Other Intangible Assets Renewal Rights. On September 22, 2016, the Company entered into a renewal rights agreement with Liberty Specialty Markets Limited (“LSML”). The Company valued the renewal rights at $1.9 million with an estimated economic useful life of 5 years . The Company will amortize the estimated value of the renewal rights over the estimated useful life. In addition to the intangible assets and goodwill associated with the AgriLogic and Blue Waters acquisitions and the renewal rights agreement with LSML, 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 September 30, 2018 , the value of the license to use the Aspen trademark was $1.6 million ( December 31, 2017 — $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 Company’s licenses as at September 30, 2018 was $16.6 million ( December 31, 2017 — $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. Goodwill. On January 1, 2017, the Company purchased through its wholly-owned subsidiary, Aspen U.S. Holdings, a 49% share of Digital Re. The Company valued the goodwill at $1.8 million . The goodwill is deemed to have an indefinite useful life and will be assessed for impairment annually. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | Commitments and Contingent Liabilities (a) Restricted assets The Company is obliged by the terms of its contractual obligations to specific policyholders and by obligations to certain regulatory authorities to facilitate issue of letters of credit or maintain certain balances in deposits and trust funds for the benefit of policyholders. The following table details the forms and value of the Company’s restricted assets as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,154.5 $ 1,455.0 Third party 2,431.1 2,425.3 Letters of credit / guarantees (1) 840.3 658.5 Investment commitment — real estate fund — 100.0 Other investments — real estate fund 100.5 — Total restricted assets $ 4,526.4 $ 4,638.8 Total as percent of investable assets (2) 56.0 % 53.4 % (1) As at September 30, 2018 , the Company had pledged funds in the amount of $840.3 million ( December 31, 2017 — $658.5 million ) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. Real Estate Fund. On December 20, 2017, the Company committed $100.0 million as a limited partner to a real estate fund. The investment objective of the fund is to achieve attractive risk-adjusted returns through the acquisition of income producing, high quality assets in gateway cities located in the U.S. and Canada in the office, retail, industrial and multifamily sectors of the real estate market. On May 1, 2018, the Company received a demand for an initial capital call of $86.2 million and paid the capital call on May 10, 2018. On September 19, 2018, the Company received a demand for the final capital call of $13.8 million and paid the capital on September 28, 2018. Investments in this real estate fund may be redeemed on a quarterly basis with 90 days’ notice subject to available cash in the fund once the lock-up period ends two years after the capital call. If sufficient cash is not available then all requested redemptions will be made on a pro rata basis. If a redemption request has not been met in full, as of such calendar quarter, the remaining portion of the request will be redeemed in subsequent quarters. There are no assurances as to when the Company may be able to withdraw, in whole or in part, its redemption request from the fund. A lock-up period is the initial amount of time an investor is contractually required to remain invested before having the ability to redeem. 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, consists of investable assets as at September 30, 2018 in the amount of $494.2 million ( December 31, 2017 — $458.7 million ). The amounts provided as Funds at Lloyd’s are 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 September 30, 2018 was £0.4 million ( December 31, 2017 — £0.4 million ). This is not available for distribution by the Company for the payment of dividends. Credit Agreement. On March 27, 2017, Aspen Holdings and certain of its direct or indirect subsidiaries (collectively, the “Borrowers”) entered into a Second Amended and Restated Credit Agreement (the “Credit Agreement”) with various lenders and Barclays Bank plc, as administrative agent. The Credit Agreement will be used by the Borrowers to finance the working capital needs of the Company and its subsidiaries, for letters of credit in connection with the insurance and reinsurance businesses of the Company and its subsidiaries and for other general corporate purposes. Initial availability under the Credit Agreement is $200 million and the Company has the option (subject to obtaining commitments from acceptable lenders) to increase the Credit Agreement by up to $100 million . The Credit Agreement will expire on March 27, 2022. As at September 30, 2018 , no borrowings were outstanding under the Credit Agreement. 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 Agreement, the Company must not permit (a) consolidated tangible net worth to be less than approximately $2,323,100,000 plus 25% of consolidated net income plus 25% of aggregate net cash proceeds from the issuance by the Company of its capital stock, in each case after January 1, 2017, (b) the ratio of its total consolidated debt to the sum of such debt plus its 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. The Credit Agreement contains other customary affirmative and negative covenants, including (subject to various exceptions) restrictions on the ability of the Company and its subsidiaries to incur indebtedness, create or permit liens on their assets, engage in mergers or consolidations, dispose of assets, pay dividends or other distributions, purchase or redeem the Company’s equity securities, make investments and enter into transactions with affiliates. In addition, the Credit Agreement has customary events of default, including (subject to certain materiality thresholds and grace periods) payment default, failure to comply with covenants, material inaccuracy of representation or warranty, bankruptcy or insolvency proceedings, change of control and cross-default to other debt agreements. On August 28, 2018, the Borrowers entered into a Waiver to Credit Agreement with various lenders and Barclays Bank plc, as administrative agent, to waive any Default or Event of Default that would result from any Change of Control caused by the Merger. Other Credit Facilities. On June 29, 2018, Aspen Bermuda and Citibank Europe plc (“Citi Europe”) amended the committed letter of credit facility, dated June 30, 2012, as amended on June 30, 2014 and June 30, 2016, (the “LOC Facility”). The amendment to the LOC facility extends the term of the LOC Facility to June 30, 2020 and provides a maximum aggregate amount of up to $550.0 million . Under the LOC Facility, 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 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. In addition, Aspen Bermuda and Citi Europe entered into an uncommitted letter of credit facility whereby Aspen Bermuda has the ability to request letters of credit under this facility subject to the prior approval of Citi Europe. The fee associated with the uncommitted facility is a letter of credit fee based on the available amounts of each letter of credit issued under the uncommitted facility. Both the LOC Facility and the uncommitted facility are used to secure obligations of Aspen Bermuda to its policyholders. In addition to these facilities, we also use regulatory trusts to secure our obligations to policyholders. The terms of a pledge agreement between Aspen Bermuda and Citi Europe (pursuant to an assignment agreement dated October 11, 2006) dated January 17, 2006, as amended, were also amended on June 30, 2014 to change the types of securities or other assets that are acceptable as collateral under the New LOC Facility. All other agreements relating to Aspen Bermuda’s LOC Facility, which now apply to the LOC Facility with Citi Europe, as previously filed with the SEC, remain in full force and effect. As at September 30, 2018 , we had $444.2 million of outstanding collateralized letters of credit under the LOC Facility ( December 31, 2017 — $449.4 million under the LOC Facility). (b) Operating leases Amounts outstanding under operating leases net of subleases as at September 30, 2018 were: 2018 2019 2020 2021 2022 Later Total ($ in millions) Operating Lease Obligations $ 6.6 $ 16.0 $ 15.4 $ 10.9 $ 8.9 $ 74.6 $ 132.4 (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, noticeably the U.S., a failure to deal with such disputes or potential disputes in an appropriate manner could result in an award of “bad faith” punitive damages against the Company’s Operating Subsidiaries. In accordance with ASC 450-20-50-4b, for (a) reasonably possible losses for which no accrual is made because any of the conditions for accrual in ASC 450-20-25-2 are not met and (b) reasonably possible losses in excess of the amounts accrued pursuant to ASC 450-20-30-1, the Company will provide an estimate of the possible loss or range of possible loss or state that such an estimate cannot be made. As at September 30, 2018 and December 31, 2017 , 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. If the Merger is consummated, each RSU, performance share and phantom share that is outstanding immediately prior to the Merger shall, to the extent not vested, become fully vested, and shall be canceled and converted into the right to receive $42.75 without interest in accordance with the terms of the Merger Agreement. In addition, if the Merger is consummated it could trigger certain change in control agreements with members of management which could result in potential change in control payments to those members of management. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 10, 2018, a large storm system (Hurricane Michael) made landfall on the Florida Panhandle and caused substantial wind damage over a wide area. Based solely on the Company’s modeled loss projections, industry loss estimates and exposure analysis as of the date of this report, the Company’s preliminary assessment of pre-tax losses associated with Hurricane Michael, excluding potential crop reinsurance losses, is not expected to exceed $40 million , net of outwards reinsurance and reinstatement premiums. The Company’s actual losses from Hurricane Michael may differ materially from this preliminary estimate due to limitations in one or more of the models and because, as a recent large storm event, this preliminary estimate is not based on the actual terms and conditions of individual treaties and policies expected to be impacted, future loss information expected to follow from clients and brokers, further market intelligence, or any loss reports. The final settlement of claims associated with Hurricane Michael is likely to take place over a considerable period of time. See “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” included in this report. |
Basis of Preparation (Policies)
Basis of Preparation (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements Adopted in 2018 and Not Yet Adopted | Accounting Pronouncements Adopted in 2018 On August 12, 2015, the Financial Standards Accounting Board (“FASB”) issued ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606)” which delayed the effective date of ASU 2014-09 by one year. This ASU is effective for annual periods beginning after December 15, 2017. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements because insurance contracts accounted for within the scope of Topic 944, Financial Services are exempt from this ASU and the Company has immaterial other revenue. On January 5, 2016, the FASB issued ASU 2016-1, “ Financial Instruments - Overall (Subtopic 825-10)” which enhances the reporting model for financial instruments. Included within the requirements of this ASU are the following: a) equity investments to be measured at fair value with changes in fair value recognized in net income; b) a simplification of the impairment assessment of equity investments without readily determinable fair values; c) public business entities to use the exit price concept when measuring the fair value of financial instruments for disclosure purposes; and d) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments required as a result of this ASU are effective for fiscal years beginning after December 15, 2017. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements because the Company’s equity portfolio, prior to being sold, was classified as held for trading with changes in fair value recognized through net income and no valuation allowance was required in relation to deferred tax asset related to available-for-sale securities. On February 28, 2018, the FASB issued ASU 2018-03, “ Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)” which amends multiple areas in Subtopic 825-10 via improvements to clarify the Codification or to correct unintended application of guidance. This ASU is effective for fiscal years beginning after December 15, 2017 and for interim periods within those fiscal years beginning after June 15, 2018. Adoption of this ASU during the three and nine months ended September 30, 2018 did not have a material impact on the Company’s consolidated financial statements. 2018 Accounting Pronouncements Not Yet Adopted On February 14, 2018, the FASB issued ASU 2018-02, “ Income Statement - Reporting Comprehensive Income (Topic 220)” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. This ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU 2018-02 to determine how it will be affected but no material impact is expected on the consolidated financial statements. On June 20, 2018, the FASB issued ASU 2018-07, “ Compensation - Stock Compensation (Topic 718)” which amends the scope of Topic 718 via improvements to non-employee share-based payment accounting. Amendments include allowing companies to account for share-based payment transactions with non-employees in the same way as share-based payment transactions with employees and includes elections that offer relief to non-public companies when measuring non-employee equity share options. This ASU will be effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. The Company is currently evaluating the provisions of ASU 2018-07 to determine how it will be affected but no material impact is expected on the consolidated financial statements. On July 30, 2018, the FASB issued ASU 2018-11, “ Targeted Improvements (Topic 984)” which amends the transitional guidance of ASU 2016-2, “ Leases (Topic 842)” providing an alternative transition method to the existing modified retrospective method, allowing entities to initially apply the new leases standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The amendments of this ASU are effective for fiscal years beginning after December 15, 2018, aligned to the effective date and transition requirements of ASU 2016-2. ASU 2016-2 is expected to have a material impact on the Company’s consolidated financial statements, by 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. On August 28, 2018, the FASB issued ASU 2018-13, “ Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurements (Topic 820)” which amends the disclosure requirements on fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. This ASU will not have a material impact on the Company’s consolidated financial results but it will have an impact on the disclosures in the Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q for periods beginning after December 15, 2019. Other accounting pronouncements were issued during the three and nine months ended September 30, 2018 which were either not relevant to the Company or did not impact the Company’s consolidated financial statements. |
Reclassifications from Accumu_2
Reclassifications from Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Reclassification | The following tables set 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 and nine months ended September 30, 2018 and 2017 : Amount Reclassified from AOCI Details about the AOCI Components Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Affected Line Item in the Unaudited ($ in millions) Available for sale securities: Realized gains on sale of securities $ 0.8 $ 2.6 Realized and unrealized investment gains Realized (losses) on sale of securities (1.1 ) (1.6 ) Realized and unrealized investment losses (0.3 ) 1.0 Income from operations before income tax Tax on net realized (losses)/gains on securities 0.1 (0.2 ) Income tax credit/(expense) $ (0.2 ) $ 0.8 Net (loss)/income Realized derivatives: Net realized gains on settled derivatives $ (2.7 ) $ 1.2 General, administrative and corporate expenses Tax on settled derivatives 0.5 (0.2 ) Income tax credit/(expense) $ (2.2 ) $ 1.0 Net (loss)/income Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.4 ) $ 1.8 Net (loss)/income Amount Reclassified from AOCI Details about the AOCI Components Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Affected Line Item in the Unaudited Condensed Consolidated Statement of Operations ($ in millions) Available for sale securities: Realized gains on sale of securities $ 5.4 $ 8.2 Realized and unrealized investment gains Realized (losses) on sale of securities (8.9 ) (5.4 ) Realized and unrealized investment losses (3.5 ) 2.8 Income from operations before income tax Tax on net realized (losses)/gains on securities 0.4 (0.4 ) Income tax credit/(expense) $ (3.1 ) $ 2.4 Net (loss)/income Realized derivatives: Net realized gains on settled derivatives $ 0.3 $ 2.4 General, administrative and corporate expenses Tax on settled derivatives (0.1 ) (0.5 ) Income tax credit/(expense) $ 0.2 $ 1.9 Net (loss)/income Total reclassifications from AOCI to the statement of operations, net of income tax $ (2.9 ) $ 4.3 Net (loss)/income |
Earnings per Ordinary Share (Ta
Earnings per Ordinary Share (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 and nine months ended September 30, 2018 and 2017 , respectively: Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 ($ in millions, except share and per share amounts) Net (loss)/income $ (15.1 ) $ (253.8 ) $ 1.0 $ (81.5 ) Preference share dividends (7.6 ) (7.7 ) (22.8 ) (28.7 ) Preference share redemption costs (1) — (5.6 ) — (8.0 ) Net amount attributable to non-controlling interest 0.1 (0.6 ) (0.2 ) (0.8 ) Basic and diluted net (loss) available to ordinary shareholders (2) $ (22.6 ) $ (267.7 ) $ (22.0 ) $ (119.0 ) Ordinary shares: Basic weighted average ordinary shares 59,692,623 59,759,730 59,637,361 59,862,540 Weighted average effect of dilutive securities (2) (3) — — — — Total diluted weighted average ordinary shares 59,692,623 59,759,730 59,637,361 59,862,540 (Loss)/earnings per ordinary share: Basic $ (0.38 ) $ (4.48 ) $ (0.37 ) $ (1.99 ) Diluted (2) $ (0.38 ) $ (4.48 ) $ (0.37 ) $ (1.99 ) (1) The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million . (2) The basic and diluted number of ordinary shares was the same because the inclusion of dilutive securities in a loss-making period would be anti-dilutive. (3) Dilutive securities consist of employee restricted share units and performance shares associated with the Company’s long-term incentive plan, employee share purchase plans and director restricted share units as described in Note 14. |
Summary of Declared Dividends | Dividends. On October 24, 2018, the Company’s Board of Directors (the “Board of Directors”) declared the following quarterly dividends: Dividend Payable on: Record Date: 5.95% preference shares $ 0.3719 January 1, 2019 December 15, 2018 5.625% preference shares $ 0.3516 January 1, 2019 December 15, 2018 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 396.4 $ 476.8 $ 873.2 Net written premiums 356.4 222.5 578.9 Gross earned premiums 475.3 498.3 973.6 Net earned premiums 388.5 234.7 623.2 Underwriting Expenses Losses and loss adjustment expenses 281.5 149.6 431.1 Amortization of deferred policy acquisition costs 75.7 25.3 101.0 General and administrative expenses 34.7 58.7 93.4 Underwriting (loss)/income $ (3.4 ) $ 1.1 (2.3 ) Corporate expenses (16.0 ) Non-operating expenses (1) (51.0 ) Net investment income 48.0 Realized and unrealized investment gains 1.8 Realized and unrealized investment losses (2.7 ) Change in fair value of loan notes issued by variable interest entities (1.7 ) Change in fair value of derivatives 7.2 Interest expense on long term debt (5.4 ) Net realized and unrealized foreign exchange losses (9.5 ) Other income 1.4 Other expenses (0.4 ) (Loss) before tax $ (30.6 ) Net reserves for loss and loss adjustment expenses $ 2,829.1 $ 2,130.0 $ 4,959.1 Ratios Loss ratio 72.5 % 63.7 % 69.2 % Policy acquisition expense ratio 19.5 10.8 16.2 General and administrative expense ratio 8.9 25.0 25.7 (2) Expense ratio 28.4 35.8 41.9 Combined ratio 100.9 % 99.5 % 111.1 % (1) Non-operating expenses includes $11.1 million of expenses related to the Company’s operating effectiveness and efficiency program (the “Effectiveness and Efficiency Program”) and $38.6 million of advisor fees related to the Merger. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. Three Months Ended September 30, 2017 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 431.5 $ 421.0 $ 852.5 Net written premiums 363.6 243.8 607.4 Gross earned premiums 464.0 449.3 913.3 Net earned premiums 382.0 270.5 652.5 Underwriting Expenses Losses and loss adjustment expenses 502.2 274.0 776.2 Amortization of deferred policy acquisition costs 61.5 43.9 105.4 General and administrative expenses 32.8 59.4 92.2 Underwriting (loss) $ (214.5 ) $ (106.8 ) (321.3 ) Corporate expenses (13.5 ) Non-operating expenses (1) (5.2 ) Net investment income 46.4 Realized and unrealized investment gains 29.9 Realized and unrealized investment losses (12.4 ) Change in fair value of loan notes issued by variable interest entities 9.8 Change in fair value of derivatives 4.5 Interest expense on long term debt (7.4 ) Net realized and unrealized foreign exchange gains 8.4 Net other expense (2.2 ) (Loss) before tax $ (263.0 ) Net reserves for loss and loss adjustment expenses $ 2,865.8 $ 2,255.3 $ 5,121.1 Ratios Loss ratio 131.5 % 101.3 % 119.0 % Policy acquisition expense ratio 16.1 16.2 16.2 General and administrative expense ratio 8.6 22.0 17.0 (2) Expense ratio 24.7 38.2 33.2 Combined ratio 156.2 % 139.5 % 152.2 % (1) Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. The following tables provide a summary of gross and net written and earned premiums, underwriting results, ratios and reserves for each of the Company’s business segments for the nine months ended September 30, 2018 and 2017 : Nine Months Ended September 30, 2018 Reinsurance Insurance Total ($ in millions) Underwriting Revenues Gross written premiums $ 1,345.9 $ 1,497.9 $ 2,843.8 Net written premiums 1,048.3 652.1 1,700.4 Gross earned premiums 1,216.5 1,445.2 2,661.7 Net earned premiums 960.0 716.2 1,676.2 Underwriting Expenses Losses and loss adjustment expenses 615.4 436.3 1,051.7 Amortization of deferred policy acquisition costs 194.4 83.3 277.7 General and administrative expenses 94.2 179.5 273.7 Underwriting income $ 56.0 $ 17.1 73.1 Corporate expenses (45.7 ) Non-operating expenses (1) (72.2 ) Net investment income 145.7 Realized and unrealized investment gains 105.9 Realized and unrealized investment losses (165.2 ) Realized loss on the debt extinguishment (8.6 ) Change in fair value of loan notes issued by variable interest entities (4.1 ) Change in fair value of derivatives (15.4 ) Interest expense on long term debt (20.4 ) Net realized and unrealized foreign exchange gains (9.0 ) Other income 5.6 Other expenses (2.1 ) (Loss) before tax $ (12.4 ) Net reserves for loss and loss adjustment expenses $ 2,829.1 $ 2,130.0 $ 4,959.1 Ratios Loss ratio 64.1 % 60.9 % 62.7 % Policy acquisition expense ratio 20.3 11.6 16.6 General and administrative expense ratio 9.8 25.1 23.4 (2) Expense ratio 30.1 36.7 40.0 Combined ratio 94.2 % 97.6 % 102.7 % (1) Non-operating expenses includes $31.5 million of expenses related to the Company’s Effectiveness and Efficiency Program and $38.6 million of advisor fees related to the Merger. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. Nine Months Ended September 30, 2017 Reinsurance Insurance Total ( $ in millions) Underwriting Revenues Gross written premiums $ 1,332.4 $ 1,340.2 $ 2,672.6 Net written premiums 1,097.3 775.0 1,872.3 Gross earned premiums 1,112.2 1,302.1 2,414.3 Net earned premiums 932.2 863.4 1,795.6 Underwriting Expenses Losses and loss adjustment expenses 797.9 652.6 1,450.5 Amortization of deferred policy acquisition costs 174.4 141.0 315.4 General and administrative expenses 117.4 186.9 304.3 Underwriting (loss) $ (157.5 ) $ (117.1 ) (274.6 ) Corporate expenses (38.3 ) Non-operating expenses (1) (9.5 ) Net investment income 141.5 Realized and unrealized investment gains 130.1 Realized and unrealized investment losses (24.4 ) Change in fair value of loan notes issued by variable interest entities 3.6 Change in fair value of derivatives 25.2 Interest expense on long term debt (22.2 ) Net realized and unrealized foreign exchange (losses) (21.1 ) Other income 5.0 Other expenses (2.0 ) (Loss) before tax $ (86.7 ) Net reserves for loss and loss adjustment expenses $ 2,865.8 $ 2,255.3 $ 5,121.1 Ratios Loss ratio 85.6 % 75.6 % 80.8 % Policy acquisition expense ratio 18.7 16.3 17.6 General and administrative expense ratio 12.6 21.6 19.6 (2) Expense ratio 31.3 37.9 37.2 Combined ratio 116.9 % 113.5 % 118.0 % (1) Non-operating expenses includes $4.1 million of expenses related to the Company’s Effectiveness and Efficiency Program. (2) The general and administrative expense ratio in the “Total” column includes corporate and non-operating expenses. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Investment Income | Investment Income. The following table summarizes investment income for the three and nine months ended September 30, 2018 and 2017 : For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 ($ in millions) ($ in millions) Fixed income securities — Available for sale $ 33.0 $ 32.9 $ 99.8 $ 100.7 Fixed income securities — Trading 12.5 11.1 37.7 31.6 Short-term investments — Available for sale 0.4 0.1 0.9 0.4 Short-term investments — Trading 0.1 — 0.4 0.5 Fixed term deposits (included in cash and cash equivalents) 3.5 2.1 10.1 4.1 Equity securities — Trading — 2.8 1.9 11.7 Catastrophe bonds — Trading 0.5 0.5 1.8 1.3 Other investments, at fair value 0.5 — 0.5 — Total $ 50.5 $ 49.5 $ 153.1 $ 150.3 Investment expenses (2.5 ) (3.1 ) (7.4 ) (8.8 ) Net investment income $ 48.0 $ 46.4 $ 145.7 $ 141.5 |
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 and nine months ended September 30, 2018 and 2017 : For the Three Months Ended For the Nine Months Ended September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 ($ in millions) ($ in millions) Available for sale: Fixed income securities — gross realized gains $ 0.8 $ 2.3 $ 5.2 $ 7.8 Fixed income securities — gross realized (losses) (1.1 ) (1.6 ) (8.5 ) (5.3 ) Short-term investments — gross realized gains — — — 0.1 Short-term investments — gross realized (losses) (0.1 ) — (0.1 ) — Cash and cash equivalents — gross realized gains — 0.3 0.2 0.3 Cash and cash equivalents — gross realized (losses) — — (0.4 ) (0.1 ) Other-than-temporary impairments — (0.1 ) — (0.5 ) Trading: Fixed income securities — gross realized gains 1.0 3.0 3.6 8.3 Fixed income securities — gross realized (losses) (4.1 ) (0.2 ) (14.5 ) (2.6 ) Short-term investments — gross realized gains — 1.9 — 2.0 Short-term investments — gross realized (losses) (1.4 ) — (1.4 ) — Cash and cash equivalents — gross realized gains — 1.3 1.5 1.3 Cash and cash equivalents — gross realized (losses) (0.2 ) — (0.2 ) — Equity securities — gross realized gains — 46.1 94.5 55.0 Equity securities — gross realized (losses) — (7.4 ) (20.1 ) (12.4 ) Catastrophe bonds — net unrealized (losses) gains — (3.1 ) 0.9 (3.2 ) Net change in gross unrealized gains (losses) 4.5 (25.0 ) (119.2 ) 54.4 Investments — equity method: Gross realized and unrealized (loss) in MVI — — (0.2 ) (0.1 ) Gross realized (loss)/gain in Chaspark — — — 0.9 Gross realized and unrealized (loss) in Bene (0.3 ) — (0.6 ) (0.2 ) Total net realized and unrealized investment (losses) gains recorded in the statement of operations $ (0.9 ) $ 17.5 $ (59.3 ) $ 105.7 Change in available for sale net unrealized (losses) gains: Fixed income securities (21.0 ) 0.3 (126.7 ) 15.2 Total change in pre-tax available for sale unrealized (losses) gains (21.0 ) 0.3 (126.7 ) 15.2 Change in taxes 1.3 (0.4 ) 8.0 (1.4 ) Total change in net unrealized gains, net of taxes, recorded in other comprehensive income $ (19.7 ) $ (0.1 ) $ (118.7 ) $ 13.8 |
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 and Short-Term Investments — 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 and short-term investments as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,420.1 $ 0.8 $ (33.1 ) $ 1,387.8 U.S. agency 47.1 0.1 (0.8 ) 46.4 Municipal 51.9 1.7 (1.5 ) 52.1 Corporate 2,305.9 8.0 (47.9 ) 2,266.0 Non-U.S. government-backed corporate 91.4 0.1 (0.7 ) 90.8 Non-U.S. government 404.1 3.1 (1.8 ) 405.4 Asset-backed 18.7 — (0.2 ) 18.5 Agency mortgage-backed 934.2 4.3 (29.1 ) 909.4 Total fixed income securities — Available for sale 5,273.4 18.1 (115.1 ) 5,176.4 Total short-term investments — Available for sale 120.4 — — 120.4 Total $ 5,393.8 $ 18.1 $ (115.1 ) $ 5,296.8 As at December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 1,166.5 $ 4.5 $ (11.6 ) $ 1,159.4 U.S. agency 51.8 0.5 (0.2 ) 52.1 Municipal 53.0 2.1 (0.2 ) 54.9 Corporate 2,391.4 36.1 (11.8 ) 2,415.7 Non-U.S. government-backed corporate 91.5 0.3 (0.5 ) 91.3 Non-U.S. government 479.7 6.4 (1.2 ) 484.9 Asset-backed 26.3 — (0.1 ) 26.2 Agency mortgage-backed 941.0 13.7 (8.2 ) 946.5 Total fixed income securities — Available for sale 5,201.2 63.6 (33.8 ) 5,231.0 Total short-term investments — Available for sale 90.0 — (0.1 ) 89.9 Total $ 5,291.2 $ 63.6 $ (33.9 ) $ 5,320.9 |
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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 167.2 $ — $ (1.3 ) $ 165.9 Municipal 21.7 — (1.0 ) 20.7 Corporate 892.4 2.7 (20.2 ) 874.9 Non-U.S government-backed corporate — — — — Non-U.S. government 229.8 2.4 (4.7 ) 227.5 Asset-backed 5.0 — (0.1 ) 4.9 Agency mortgage-backed 118.1 — (4.8 ) 113.3 Total fixed income securities — Trading 1,434.2 5.1 (32.1 ) 1,407.2 Total short-term investments — Trading 4.3 — — 4.3 Total catastrophe bonds — Trading 37.7 0.1 (0.4 ) 37.4 Total $ 1,476.2 $ 5.2 $ (32.5 ) $ 1,448.9 As at December 31, 2017 Cost or Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Market Value ($ in millions) U.S. government $ 162.3 $ 0.4 $ (0.8 ) $ 161.9 Municipal 32.4 — (0.2 ) 32.2 Corporate 1,036.5 14.0 (4.2 ) 1,046.3 Non-U.S. government-backed corporate 1.0 — — 1.0 Non-U.S. government 196.1 6.9 (0.5 ) 202.5 Asset-backed 9.9 — — 9.9 Agency mortgage-backed 196.7 0.2 (1.4 ) 195.5 Total fixed income securities — Trading 1,634.9 21.5 (7.1 ) 1,649.3 Total short-term investments — Trading 73.0 — — 73.0 Total equity securities — Trading 414.8 83.5 (7.3 ) 491.0 Total catastrophe bonds — Trading 33.5 — (1.1 ) 32.4 Total $ 2,156.2 $ 105.0 $ (15.5 ) $ 2,245.7 |
Other Investments | The tables below show the Company’s investments in the MVI, Bene, Digital Re and Crop Re for the three and nine months ended September 30, 2018 : For the Three Months Ended September 30, 2018 MVI Bene Digital Re Crop Re Total ($ in millions) Opening undistributed value of investment $ 0.3 $ 3.8 $ 0.5 $ 62.5 $ 67.1 Investment in the period — — — — — Realized/unrealized losses for the three months to September 30, 2018 0.1 (0.3 ) — — (0.2 ) Closing undistributed value of investment $ 0.4 $ 3.5 $ 0.5 $ 62.5 $ 66.9 |
Summary of Fixed Maturities | Fixed Income Securities. The scheduled maturity distribution of available for sale fixed income securities as at September 30, 2018 and December 31, 2017 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 September 30, 2018 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 445.6 $ 445.5 AA- Due after one year through five years 2,720.5 2,680.5 AA- Due after five years through ten years 1,044.4 1,008.5 AA- Due after ten years 110.0 114.0 A+ Subtotal 4,320.5 4,248.5 Agency mortgage-backed 934.2 909.4 AA+ Asset-backed 18.7 18.5 AAA Total fixed income securities — Available for sale $ 5,273.4 $ 5,176.4 As at December 31, 2017 Amortized Cost or Cost Fair Market Value Average S&P Ratings by Maturity ($ in millions) Due one year or less $ 561.7 $ 562.4 AA Due after one year through five years 2,486.7 2,492.2 AA- Due after five years through ten years 1,092.2 1,097.4 A+ Due after ten years 93.3 106.3 A Subtotal 4,233.9 4,258.3 Agency mortgage-backed 941.0 946.5 AA+ Asset-backed 26.3 26.2 AAA Total fixed income securities — Available for sale $ 5,201.2 $ 5,231.0 |
Aggregate Fair Value and Gross Unrealized Loss by Type of Security | Gross Unrealized Loss. The following tables summarize, 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 in the Company’s available for sale portfolio as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 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 $ 827.9 $ (15.3 ) $ 457.3 $ (17.8 ) $ 1,285.2 $ (33.1 ) 140 U.S. agency 25.5 (0.4 ) 13.1 (0.4 ) 38.6 (0.8 ) 15 Municipal 33.3 (1.1 ) 7.2 (0.4 ) 40.5 (1.5 ) 13 Corporate 1,466.5 (28.7 ) 416.7 (19.2 ) 1,883.2 (47.9 ) 725 Non-U.S. government-backed corporate 43.2 (0.3 ) 25.4 (0.4 ) 68.6 (0.7 ) 15 Non-U.S. government 193.8 (0.9 ) 50.1 (0.9 ) 243.9 (1.8 ) 61 Asset-backed 13.4 (0.2 ) 5.0 — 18.4 (0.2 ) 7 Agency mortgage-backed 426.3 (10.2 ) 360.0 (18.9 ) 786.3 (29.1 ) 265 Total fixed income securities — Available for sale 3,029.9 (57.1 ) 1,334.8 (58.0 ) 4,364.7 (115.1 ) 1,241 Total short-term investments — Available for sale 76.4 — — — 76.4 — 13 Total $ 3,106.3 $ (57.1 ) $ 1,334.8 $ (58.0 ) $ 4,441.1 $ (115.1 ) 1,254 As at December 31, 2017 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 $ 652.1 $ (5.1 ) $ 259.8 $ (6.5 ) $ 911.9 $ (11.6 ) 101 U.S. agency 20.1 (0.2 ) 6.1 — 26.2 (0.2 ) 10 Municipal 28.5 (0.2 ) — — 28.5 (0.2 ) 9 Corporate 699.3 (3.4 ) 360.7 (8.4 ) 1,060.0 (11.8 ) 412 Non-U.S. government-backed corporate 43.5 (0.3 ) 13.3 (0.2 ) 56.8 (0.5 ) 15 Non-U.S. government 206.2 (0.8 ) 32.0 (0.4 ) 238.2 (1.2 ) 47 Asset-backed 11.1 — 10.5 (0.1 ) 21.6 (0.1 ) 11 Agency mortgage-backed 257.6 (1.9 ) 301.9 (6.3 ) 559.5 (8.2 ) 156 Total fixed income securities — Available for sale 1,918.4 (11.9 ) 984.3 (21.9 ) 2,902.7 (33.8 ) 761 Total short-term investments — Available for sale 46.9 (0.1 ) — — 46.9 (0.1 ) 8 Total $ 1,965.3 $ (12.0 ) $ 984.3 $ (21.9 ) $ 2,949.6 $ (33.9 ) 769 |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Payables and Accruals [Abstract] | |
Summary of Silverton Loan Notes | The following tables show the total liability balance of the Loan Notes for the nine months ended September 30, 2018 and 2017 : For the Nine Months Ended September 30, 2018 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 86.6 $ 20.6 $ 107.2 Total change in fair value for the period 4.1 1.0 5.1 Total distributed in the period (78.4 ) (18.7 ) (97.1 ) Closing balance as at September 30, 2018 $ 12.3 $ 2.9 $ 15.2 Liability Loan notes (long-term liabilities) $ — $ — $ — Accrued expenses (current liabilities) 12.3 2.9 15.2 Total aggregate unpaid balance as at September 30, 2018 $ 12.3 $ 2.9 $ 15.2 For the Nine Months Ended September 30, 2017 Third Party Aspen Holdings Total ($ in millions) Opening balance $ 223.4 $ 54.5 $ 277.9 Total change in fair value for the period (3.6 ) (0.9 ) (4.5 ) Total distributed in the period (115.9 ) (28.8 ) (144.7 ) Closing balance as at September 30, 2017 $ 103.9 $ 24.8 $ 128.7 Liability Loan notes (long-term liabilities) $ 101.5 $ 24.2 $ 125.7 Accrued expenses (current liabilities) 2.4 0.6 3.0 Total aggregate unpaid balance as at September 30, 2017 $ 103.9 $ 24.8 $ 128.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,387.8 $ — $ — $ 1,387.8 U.S. agency — 46.4 — 46.4 Municipal — 52.1 — 52.1 Corporate — 2,266.0 — 2,266.0 Non-U.S. government-backed corporate — 90.8 — 90.8 Non-U.S. government 270.4 135.0 — 405.4 Asset-backed — 18.5 — 18.5 Agency mortgage-backed — 909.4 — 909.4 Total fixed income securities available for sale, at fair value 1,658.2 3,518.2 — 5,176.4 Short-term investments available for sale, at fair value 109.9 10.5 — 120.4 Held for trading financial assets, at fair value U.S. government 165.9 — — 165.9 Municipal — 20.7 — 20.7 Corporate — 874.9 — 874.9 Non-U.S. government-backed corporate — — — — Non-U.S. government 49.4 178.1 — 227.5 Asset-backed — 4.9 — 4.9 Agency mortgage-backed — 113.3 — 113.3 Total fixed income securities trading, at fair value 215.3 1,191.9 — 1,407.2 Short-term investments trading, at fair value 0.5 3.8 — 4.3 Equity investments trading, at fair value — — — — Catastrophe bonds trading, at fair value — 37.4 — 37.4 Other investments (1) — — — 100.5 Other financial assets and liabilities, at fair value Derivatives at fair value — foreign exchange contracts — 6.4 — 6.4 Liabilities under derivative contracts — foreign exchange contracts — (3.1 ) — (3.1 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (12.3 ) (12.3 ) Total $ 1,983.9 $ 4,765.1 $ (12.3 ) $ 6,837.2 (1) Other investments represents our investment in a real estate fund and is measured at fair value using the net asset value per share practical expedient. As a result this has not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the condensed consolidated balance sheets. The investment the real estate fund is subject to restrictions as detailed in Note 16. Transfers of assets into or out of a particular level are recorded at their fair values as of the end of each reporting period, consistent with the date of the determination of fair value. There were no significant transfers between Level 1, Level 2 and Level 3 during the nine months ended September 30, 2018 . The Company settled $78.4 million of Level 3 liabilities in respect of the Loan Notes issued by Silverton for the nine months ended September 30, 2018 . As at September 30, 2018 , there were no the assets classified as Level 3 and the Company’s Level 3 liabilities consisted solely of the Loan Notes issued by Silverton. As at December 31, 2017 Level 1 Level 2 Level 3 Total ($ in millions) Available for sale financial assets, at fair value U.S. government $ 1,159.4 $ — $ — $ 1,159.4 U.S. agency — 52.1 — 52.1 Municipal — 54.9 — 54.9 Corporate — 2,415.7 — 2,415.7 Non-U.S. government-backed corporate — 91.3 — 91.3 Non-U.S. government 341.2 143.7 — 484.9 Asset-backed — 26.2 — 26.2 Agency mortgage-backed — 946.5 — 946.5 Total fixed income securities available for sale, at fair value 1,500.6 3,730.4 — 5,231.0 Short-term investments available for sale, at fair value 87.3 2.6 — 89.9 Held for trading financial assets, at fair value U.S. government 161.9 — — 161.9 Municipal — 32.2 — 32.2 Corporate — 1,046.3 — 1,046.3 Non-U.S. government-backed corporate — 1.0 — 1.0 Non-U.S. government 24.5 178.0 — 202.5 Asset-backed — 9.9 — 9.9 Agency mortgage-backed — 195.5 — 195.5 Total fixed income securities trading, at fair value 186.4 1,462.9 — 1,649.3 Short-term investments trading, at fair value 73.0 — — 73.0 Equity investments trading, at fair value 491.0 — — 491.0 Catastrophe bonds trading, at fair value — 32.4 — 32.4 Other financial assets and liabilities, at fair value Derivatives at fair value – foreign exchange contracts — 6.4 — 6.4 Liabilities under derivative contracts – foreign exchange contracts — (1.0 ) — (1.0 ) Loan notes issued by variable interest entities, at fair value — — (44.2 ) (44.2 ) Loan notes issued by variable interest entities, at fair value (included within accrued expenses and other payables) — — (42.4 ) (42.4 ) Total $ 2,338.3 $ 5,233.7 $ (86.6 ) $ 7,485.4 |
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 and nine months ended September 30, 2018 and 2017 : Reconciliation of Liabilities Using Level 3 Inputs Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 ($ in millions) Balance at the beginning of the period $ 25.3 $ 115.1 Distributed to third party (14.7 ) (1.4 ) Total change in fair value included in the statement of operations 1.7 (9.8 ) Balance at the end of the period (1) $ 12.3 $ 103.9 |
Pricing Sources Used in Pricing Fixed Income Investments | Pricing sources used in pricing fixed income investments as at September 30, 2018 and December 31, 2017 were as follows: As at September 30, 2018 As at December 31, 2017 Index providers 85 % 84 % Pricing services 13 11 Broker-dealers 2 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 September 30, 2018 and December 31, 2017 is provided below: As at September 30, 2018 As at December 31, 2017 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 $ 1,553.6 100 % $ 1,321.3 100 % U.S. agency 44.6 96 % 43.4 83 % Municipal 22.3 31 % 37.4 43 % Corporate 2,980.9 95 % 3,299.6 83 % Non-U.S. government-backed corporate 40.0 44 % 44.0 48 % Non-U.S. government 360.4 57 % 399.4 58 % Asset-backed 7.7 33 % 13.5 37 % Agency mortgage-backed 553.1 54 % 605.0 53 % Total fixed income securities $ 5,562.6 85 % $ 5,763.6 84 % Equities — — % 491.0 100 % Total fixed income securities and equity investments $ 5,562.6 85 % $ 6,254.6 85 % |
Fair Value Inputs, Assets, Quantitative Information | The observable and unobservable inputs used to determine the fair value of the Loan Notes as at September 30, 2018 and December 31, 2017 are presented in the tables below: As at September 30, 2018 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 12.3 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 As at December 31, 2017 Fair Value Level 3 Valuation Method Observable (O) and Unobservable (U) inputs Low High ($ in millions) ($ in millions) Loan Notes $ 86.6 (1) Internal Valuation Model Gross premiums written (O) $ 50.1 $ 61.1 Reserve for losses (U) $ 4.2 $ 61.9 Contract period (O) N/A 365 days Initial value of issuance (O) $ 325.0 $ 325.0 (1) The amounts classified within accrued expenses and other payables were $12.3 million and $42.4 million as at September 30, 2018 and December 31, 2017 , respectively. |
Derivative Contracts (Tables)
Derivative Contracts (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments | The following tables summarize information on the location and amounts of derivative fair values on the consolidated balance sheet as at September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 Derivatives Not Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 661.5 $ 7.0 $ 577.7 $ 5.0 Foreign Exchange Contracts Liabilities under Derivative Contracts $ 544.4 $ (3.1 ) (1) $ 173.9 $ (1.0 ) (1) Net of $0.5 million cash collateral ( December 31, 2017 — $0.6 million ). As at September 30, 2018 As at December 31, 2017 Derivatives Designated as Hedging Instruments Under ASC 815 Balance Sheet Location Notional Amount Fair Value Notional Amount Fair Value ($ in millions) ($ in millions) Foreign Exchange Contracts Derivatives at Fair Value $ 30.9 $ (0.6 ) $ 60.6 $ 1.4 |
Gain/(Loss) Recognized in Income on Derivative | The following table provides the unrealized and realized gains recorded in the statements of operations and other comprehensive income for derivatives that are not designated or designated as hedging instruments under ASC 815 - “Derivatives and Hedging” for the three and nine months ended September 30, 2018 and 2017 . Amount of Gain Recognized on Derivatives Three Months Ended Nine Months Ended Location of Gain Recognized on Derivatives September 30, 2018 September 30, 2017 September 30, 2018 September 30, 2017 Derivatives not designated as hedges ($ in millions) ($in millions) Foreign Exchange Contracts Change in Fair Value of Derivatives 7.2 4.5 (15.4 ) 25.2 Derivatives designated as hedges Foreign Exchange Contracts General, administrative and corporate expenses (2.7 ) 1.2 0.3 2.4 Foreign Exchange Contracts Net change from current period hedged transactions (0.5 ) (0.4 ) (2.2 ) 3.3 |
Deferred Policy Acquisition C_2
Deferred Policy Acquisition Costs (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Insurance [Abstract] | |
Reconciliation of Beginning and Ending Deferred Policy Acquisition Costs | The following table represents a reconciliation of beginning and ending deferred policy acquisition costs for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, Nine Months Ended September 30, 2018 2017 2018 2017 ($ in millions) ($ in millions) Balance at the beginning of the period $ 298.6 $ 364.6 $ 294.3 $ 358.4 Acquisition costs deferred 92.5 94.9 273.5 311.1 Amortization of deferred policy acquisition costs (101.0 ) (105.4 ) (277.7 ) (315.4 ) Balance at the end of the period $ 290.1 $ 354.1 $ 290.1 $ 354.1 |
Reserves for Losses and Loss _2
Reserves for Losses and Loss Adjustment Expenses (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 nine months ended September 30, 2018 and 2017 and the twelve months ended December 31, 2017 : Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Twelve Months Ended December 31, 2017 ($ in millions) Provision for losses and LAE at the start of the year $ 6,749.5 $ 5,319.9 $ 5,319.9 Less reinsurance recoverable (1,515.2 ) (560.7 ) (560.7 ) Net loss and LAE at the start of the year 5,234.3 4,759.2 4,759.2 Net loss and LAE expenses (disposed) — (125.7 ) (125.5 ) Provision for losses and LAE for claims incurred: Current year 1,151.4 1,543.3 2,100.1 Prior years (99.7 ) (92.8 ) (105.4 ) Total incurred 1,051.7 1,450.5 1,994.7 Losses and LAE payments for claims incurred: Current year (93.5 ) (150.4 ) (397.5 ) Prior years (1,170.1 ) (947.7 ) (1,157.6 ) Total paid (1,263.6 ) (1,098.1 ) (1,555.1 ) Foreign exchange losses/(gains) (63.3 ) 135.2 161.0 Net losses and LAE reserves at period end 4,959.1 5,121.1 5,234.3 Plus reinsurance recoverable on unpaid losses at period end 1,767.1 1,369.5 1,515.2 Provision for losses and LAE at the end of the relevant period $ 6,726.2 $ 6,490.6 $ 6,749.5 |
Short-duration Insurance Contracts, Claims Development | Insurance Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance As at September 30, 2018 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 $ (in millions) 2012 603.9 625.8 654.8 668.7 653.6 637.1 644.3 27.2 15,726 2013 688.3 666.7 677.9 659.2 649.4 651.7 34.4 14,661 2014 754.2 728.7 701.0 693.7 696.7 51.9 18,872 2015 913.8 903.6 852.8 864.4 124.8 21,221 2016 907.3 879.6 885.7 264.7 21,224 2017 894.2 815.6 158.6 21,367 2018 469.4 289.8 12,316 Total $ 5,027.8 Insurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 ($ in millions) 2012 117.1 307.5 377.9 452.1 502.0 523.8 530.4 2013 90.4 253.9 364.2 454.2 501.9 537.4 2014 99.4 247.1 389.2 465.1 507.8 2015 119.0 326.0 470.6 544.5 2016 117.1 345.5 448.2 2017 167.5 400.2 2018 54.5 Total $ 3,023.0 All outstanding liabilities for 2012 and subsequent years, net of reinsurance $ 2,004.8 All outstanding liabilities before 2012, net of reinsurance 101.3 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,106.1 Reinsurance Incurred Claims, IBNR and Allocated Loss Adjustment Expenses, Net of Reinsurance As at September 30, 2018 Total of IBNR Plus Expected Development on Reported Claims Cumulative Number of Reported Claims For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 $ (in millions) 2012 691.8 736.3 720.0 689.6 688.3 686.8 680.4 59.5 3,875 2013 578.6 571.0 548.8 523.1 503.8 497.8 59.0 3,737 2014 549.4 528.4 512.8 485.6 480.3 76.4 3,769 2015 578.5 562.7 556.6 537.8 103.7 4,006 2016 747.8 761.3 764.3 190.5 3,901 2017 1,187.2 1,185.0 339.2 4,165 2018 652.2 517.9 1,971 Total $ 4,797.8 Reinsurance Cumulative Paid Claims and Allocated Loss Adjustment Expenses, Net of Reinsurance For the Years Ended December 31, Unaudited Prior Years Accident Year 2012 2013 2014 2015 2016 2017 Q3 2018 ($ in millions) 2012 63.0 247.7 360.4 414.2 458.1 495.8 514.0 2013 63.1 186.4 277.8 319.4 359.1 376.4 2014 56.9 172.1 247.8 288.4 314.4 2015 57.4 170.9 271.5 317.6 2016 125.5 350.5 420.7 2017 227.7 573.4 2018 39.0 Total $ 2,555.5 All outstanding liabilities for 2012 and subsequent years, net of reinsurance 2,242.3 All outstanding liabilities before 2012, net of reinsurance 569.1 Liabilities for claims and claim adjustment expenses, net of reinsurance $ 2,811.4 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability | Nine Months Ended September 30, 2018 ($ in millions) Net outstanding liabilities: Insurance lines 2,106.1 Reinsurance lines 2,811.4 Net loss and LAE 4,917.5 Reinsurance recoverable on unpaid losses: Insurance lines 1,448.6 Reinsurance lines 318.5 Total reinsurance recoverable on unpaid losses 1,767.1 Insurance lines other than short-duration — Unallocated claims incurred 47.3 Other (5.7 ) 41.6 Provision for losses and LAE at the end of the period 6,726.2 |
Capital Structure (Tables)
Capital Structure (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 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 59,697,669 90 59,474,085 90 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 Issued 5.625% preference shares of 0.15144558¢ each with a liquidation preference of $25 per share 10,000,000 15 10,000,000 15 Total issued share capital 122 122 |
Summary of Ordinary Shares | The following table summarizes transactions in the Company’s ordinary shares during the nine months ended September 30, 2018 : Number of Ordinary Shares Ordinary shares in issue as at December 31, 2017 59,474,085 Ordinary share transactions in the nine months ended September 30, 2018 Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan 218,906 Ordinary shares issued to non-employee directors 4,678 Ordinary shares in issue as at September 30, 2018 59,697,669 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Non-Employee Director Restricted Stock Units Award | The following table summarizes information about RSUs issued to non-employee directors as at September 30, 2018 : Restricted Share Units As at September 30, 2018 As at September 30, 2017 RSU Holder Amount Granted Amount Granted Non-Employee Directors 29,025 22,230 Chairman 12,900 8,892 |
Intangible Assets and Goodwill
Intangible Assets and Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Intangible Assets | The following tables provide a summary of the Company’s intangible assets for the three and nine months ended September 30, 2018 and 2017 : Three Months Ended September 30, 2018 Three Months Ended September 30, 2017 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Additions Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trademarks $ 2.7 $ — $ — $ 2.7 $ 6.3 $ — $ (0.3 ) $ 6.0 Insurance Licenses 16.7 — — 16.7 16.7 — — 16.7 Agency Relationships 2.0 — (0.1 ) 1.9 25.1 — (0.5 ) 24.6 Non-compete Agreements 0.5 — (0.1 ) 0.4 3.0 — (0.3 ) 2.7 Consulting Relationships — — — — 0.8 — (0.1 ) 0.7 Goodwill 3.9 — — 3.9 26.0 — — 26.0 Renewal Rights 1.2 — (0.1 ) 1.1 1.5 — (0.1 ) 1.4 Total $ 27.0 $ — $ (0.3 ) $ 26.7 $ 79.4 $ — $ (1.3 ) $ 78.1 Nine Months Ended September 30, 2018 Nine Months Ended September 30, 2017 Beginning of the Period Additions Amortization End of the Period Beginning of the Period Additions Amortization End of the Period ($ in millions) ($ in millions) Intangible Assets Trademarks $ 2.9 $ — $ (0.2 ) $ 2.7 $ 6.6 $ — $ (0.6 ) $ 6.0 Insurance Licenses 16.7 — — 16.7 16.7 — — 16.7 Agency Relationships 2.3 — (0.4 ) 1.9 26.2 — (1.6 ) 24.6 Non-compete Agreements 0.7 — (0.3 ) 0.4 3.3 — (0.6 ) 2.7 Consulting Relationships — — — — 0.9 — (0.2 ) 0.7 Goodwill 3.9 — — 3.9 24.2 1.8 — 26.0 Renewal Rights 1.4 — (0.3 ) 1.1 1.7 — (0.3 ) 1.4 Total $ 27.9 $ — $ (1.2 ) $ 26.7 $ 79.6 $ 1.8 $ (3.3 ) $ 78.1 |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
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 September 30, 2018 and December 31, 2017 : As at September 30, 2018 As at December 31, 2017 ($ in millions, except percentages) Regulatory trusts and deposits: Affiliated transactions $ 1,154.5 $ 1,455.0 Third party 2,431.1 2,425.3 Letters of credit / guarantees (1) 840.3 658.5 Investment commitment — real estate fund — 100.0 Other investments — real estate fund 100.5 — Total restricted assets $ 4,526.4 $ 4,638.8 Total as percent of investable assets (2) 56.0 % 53.4 % (1) As at September 30, 2018 , the Company had pledged funds in the amount of $840.3 million ( December 31, 2017 — $658.5 million ) as collateral for the secured letters of credit. (2) Investable assets comprise total investments, cash and cash equivalents, accrued interest, receivables for securities sold and payables for securities purchased. |
Amounts Outstanding under Operating Leases | Amounts outstanding under operating leases net of subleases as at September 30, 2018 were: 2018 2019 2020 2021 2022 Later Total ($ in millions) Operating Lease Obligations $ 6.6 $ 16.0 $ 15.4 $ 10.9 $ 8.9 $ 74.6 $ 132.4 |
History, Organization and Bus_2
History, Organization and Business Combination - Narrative (Details) - Subsequent Event - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Jun. 30, 2019 | |
Subsequent Event [Line Items] | ||
Business acquisition, share price | $ 42.75 | |
Maximum | ||
Subsequent Event [Line Items] | ||
Loss from Catastrophes | $ 350 |
History, Organization and Bus_3
History, Organization and Business Combination - Class of Stock (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2018 | Dec. 31, 2017 | |
5.95% preference shares | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 5.95% | 5.95% |
5.625% preference shares | ||
Class of Stock [Line Items] | ||
Preferred Stock, Dividend Rate, Percentage | 5.625% | 5.625% |
Reclassifications from Accumu_3
Reclassifications from Accumulated Other Comprehensive Income - Schedule of Accumulated Other Comprehensive Income Reclassification (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Available for sale securities: | ||||
(Loss) from operations before income tax | $ (30.6) | $ (263) | $ (12.4) | $ (86.7) |
General, administrative and corporate expenses | 160.4 | 110.9 | 391.6 | 352.1 |
Income tax credit/(expense) | 15.5 | 9.2 | 13.4 | 5.2 |
Net (loss)/income | (15.1) | (253.8) | 1 | (81.5) |
Reclassification out of AOCI | ||||
Available for sale securities: | ||||
Net (loss)/income | (2.4) | 1.8 | (2.9) | 4.3 |
Reclassification out of AOCI | Available for sale securities | ||||
Available for sale securities: | ||||
Realized gains on sale of securities | 0.8 | 2.6 | 5.4 | 8.2 |
Realized (losses) on sale of securities | (1.1) | (1.6) | (8.9) | (5.4) |
(Loss) from operations before income tax | (0.3) | 1 | (3.5) | 2.8 |
Income tax credit/(expense) | 0.1 | (0.2) | 0.4 | (0.4) |
Net (loss)/income | (0.2) | 0.8 | (3.1) | 2.4 |
Reclassification out of AOCI | Realized derivatives | ||||
Available for sale securities: | ||||
General, administrative and corporate expenses | (2.7) | 1.2 | 0.3 | 2.4 |
Income tax credit/(expense) | 0.5 | (0.2) | (0.1) | (0.5) |
Net (loss)/income | $ (2.2) | $ 1 | $ 0.2 | $ 1.9 |
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 | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | ||
Class of Stock [Line Items] | |||||
Net income/(loss) | $ (15.1) | $ (253.8) | $ 1 | $ (81.5) | |
Preference share dividends | (7.6) | (7.7) | (22.8) | (28.7) | |
Change in redemption value | 0 | (5.6) | 0 | (8) | |
Proportion due to non-controlling interest | 0.1 | (0.6) | (0.2) | (0.8) | |
Basic and diluted net (loss) available to ordinary shareholders (2) | (22.6) | (267.7) | (22) | (119) | |
Diluted net income available to ordinary shareholders | $ (22.6) | $ (267.7) | $ (22) | $ (119) | |
Ordinary shares: | |||||
Basic weighted average ordinary shares | 59,692,623 | 59,759,730 | 59,637,361 | 59,862,540 | |
Weighted average effect of dilutive securities | 0 | 0 | 0 | 0 | |
Total diluted weighted average ordinary shares | 59,692,623 | 59,759,730 | 59,637,361 | 59,862,540 | |
(Loss)/earnings per ordinary share: | |||||
Basic (in usd per share) | $ (0.38) | $ (4.48) | $ (0.37) | $ (1.99) | |
Diluted (in usd per share) | $ (0.38) | $ (4.48) | $ (0.37) | $ (1.99) | |
7.401% preference shares | |||||
(Loss)/earnings per ordinary share: | |||||
Preference shares, rate | 7.401% | ||||
7.250% preference shares | |||||
(Loss)/earnings per ordinary share: | |||||
Preference shares, rate | 7.25% | ||||
Additional paid-in capital | Redemption costs of preference shares | |||||
Class of Stock [Line Items] | |||||
Change in redemption value | [1] | $ 0 | $ 8 | ||
(Loss)/earnings per ordinary share: | |||||
Stock Redeemed or Called During Period, Value | $ 0 | $ 293.2 | |||
[1] | The $8.0 million deduction from net income in 2017 is attributable to the reclassification from additional paid-in capital to retained earnings representing the difference between the capital raised upon issuance of the 7.401% and 7.250% Perpetual Non-Cumulative Preference Shares, net of issuance costs, and the final redemption costs of $293.2 million. |
Earnings per Ordinary Share - S
Earnings per Ordinary Share - Summary of Declared Dividends (Details) - $ / shares | Oct. 24, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
5.95% preference shares | |||
Dividends Payable [Line Items] | |||
Preference shares, rate | 5.95% | 5.95% | |
5.625% preference shares | |||
Dividends Payable [Line Items] | |||
Preference shares, rate | 5.625% | 5.625% | |
Subsequent Event | 5.95% preference shares | |||
Dividends Payable [Line Items] | |||
Dividend (in usd per share) | $ 0.3719 | ||
Payable Date | Jan. 1, 2019 | ||
Record Date | Dec. 15, 2018 | ||
Subsequent Event | 5.625% preference shares | |||
Dividends Payable [Line Items] | |||
Dividend (in usd per share) | $ 0.35156 | ||
Payable Date | Jan. 1, 2019 | ||
Record Date | Dec. 15, 2018 |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018Segment | |
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 | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Underwriting Revenues | ||||||
Gross written premiums | $ 873.2 | $ 852.5 | $ 2,843.8 | $ 2,672.6 | ||
Net written premiums | 578.9 | 607.4 | 1,700.4 | 1,872.3 | ||
Gross earned premiums | 973.6 | 913.3 | 2,661.7 | 2,414.3 | ||
Net earned premiums | 623.2 | 652.5 | 1,676.2 | 1,795.6 | ||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 431.1 | 776.2 | 1,051.7 | 1,450.5 | ||
Amortization of deferred policy acquisition costs | 101 | 105.4 | 277.7 | 315.4 | ||
General and administrative expenses | 93.4 | 92.2 | 273.7 | 304.3 | ||
Underwriting (loss)/income | (2.3) | (321.3) | 73.1 | (274.6) | ||
Corporate expenses | (16) | (13.5) | (45.7) | (38.3) | ||
Non-operating income (expense) | (51) | (5.2) | (72.2) | (9.5) | ||
Net investment income | 48 | 46.4 | 145.7 | 141.5 | ||
Realized and unrealized investment gains | 1.8 | 29.9 | 105.9 | 130.1 | ||
Realized and unrealized investment losses | (2.7) | (12.4) | (165.2) | (24.4) | ||
Realized loss on debt extinguishment | (8.6) | |||||
Change in fair value of loan notes issued by variable interest entities | (1.7) | 9.8 | (4.1) | 3.6 | ||
Change in fair value of derivatives | 7.2 | 4.5 | (15.4) | 25.2 | ||
Interest expense on long term debt | (5.4) | (7.4) | (20.4) | (22.2) | ||
Net realized and unrealized foreign exchange losses | (9.5) | 8.4 | (9) | (21.1) | ||
Other income | 1.4 | (2.2) | 5.6 | 5 | ||
Net other expense | (2.2) | |||||
Other expenses | (0.4) | (2.1) | (2) | |||
(Loss) from operations before income tax | (30.6) | (263) | (12.4) | (86.7) | ||
Net reserves for loss and loss adjustment expenses | $ 4,959.1 | $ 5,121.1 | $ 4,959.1 | $ 5,121.1 | $ 5,234.3 | $ 4,759.2 |
Ratios | ||||||
Loss ratio | 69.20% | 119.00% | 62.70% | 80.80% | ||
Policy acquisition expense ratio | 16.20% | 16.20% | 16.60% | 17.60% | ||
General and administrative expense ratio | 25.70% | 17.00% | 23.40% | 19.60% | ||
Expense ratio | 41.90% | 33.20% | 40.00% | 37.20% | ||
Combined ratio | 111.10% | 152.20% | 102.70% | 118.00% | ||
Non-operating expenses related to Effectiveness and Efficiency Program | $ 11.1 | $ 4.1 | $ 31.5 | $ 4.1 | ||
Non-operating expenses related to Merger Agreement | 38.6 | 38.6 | ||||
Reinsurance | ||||||
Underwriting Revenues | ||||||
Gross written premiums | 396.4 | 431.5 | 1,345.9 | 1,332.4 | ||
Net written premiums | 356.4 | 363.6 | 1,048.3 | 1,097.3 | ||
Gross earned premiums | 475.3 | 464 | 1,216.5 | 1,112.2 | ||
Net earned premiums | 388.5 | 382 | 960 | 932.2 | ||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 281.5 | 502.2 | 615.4 | 797.9 | ||
Amortization of deferred policy acquisition costs | 75.7 | 61.5 | 194.4 | 174.4 | ||
General and administrative expenses | 34.7 | 32.8 | 94.2 | 117.4 | ||
Underwriting (loss)/income | (3.4) | (214.5) | 56 | (157.5) | ||
Net reserves for loss and loss adjustment expenses | $ 2,829.1 | $ 2,865.8 | $ 2,829.1 | $ 2,865.8 | ||
Ratios | ||||||
Loss ratio | 72.50% | 131.50% | 64.10% | 85.60% | ||
Policy acquisition expense ratio | 19.50% | 16.10% | 20.30% | 18.70% | ||
General and administrative expense ratio | 8.90% | 8.60% | 9.80% | 12.60% | ||
Expense ratio | 28.40% | 24.70% | 30.10% | 31.30% | ||
Combined ratio | 100.90% | 156.20% | 94.20% | 116.90% | ||
Insurance | ||||||
Underwriting Revenues | ||||||
Gross written premiums | $ 476.8 | $ 421 | $ 1,497.9 | $ 1,340.2 | ||
Net written premiums | 222.5 | 243.8 | 652.1 | 775 | ||
Gross earned premiums | 498.3 | 449.3 | 1,445.2 | 1,302.1 | ||
Net earned premiums | 234.7 | 270.5 | 716.2 | 863.4 | ||
Underwriting Expenses | ||||||
Losses and loss adjustment expenses | 149.6 | 274 | 436.3 | 652.6 | ||
Amortization of deferred policy acquisition costs | 25.3 | 43.9 | 83.3 | 141 | ||
General and administrative expenses | 58.7 | 59.4 | 179.5 | 186.9 | ||
Underwriting (loss)/income | 1.1 | (106.8) | 17.1 | (117.1) | ||
Net reserves for loss and loss adjustment expenses | $ 2,130 | $ 2,255.3 | $ 2,130 | $ 2,255.3 | ||
Ratios | ||||||
Loss ratio | 63.70% | 101.30% | 60.90% | 75.60% | ||
Policy acquisition expense ratio | 10.80% | 16.20% | 11.60% | 16.30% | ||
General and administrative expense ratio | 25.00% | 22.00% | 25.10% | 21.60% | ||
Expense ratio | 35.80% | 38.20% | 36.70% | 37.90% | ||
Combined ratio | 99.50% | 139.50% | 97.60% | 113.50% |
Investments - Summary of Invest
Investments - Summary of Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 50.5 | $ 49.5 | $ 153.1 | $ 150.3 |
Investment expenses | (2.5) | (3.1) | (7.4) | (8.8) |
Net investment income | 48 | 46.4 | 145.7 | 141.5 |
Total fixed income securities — Available for sale | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 33 | 32.9 | 99.8 | 100.7 |
Short-term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0.4 | 0.1 | 0.9 | 0.4 |
Short-term Investment, Trading | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0.1 | 0 | 0.4 | 0.5 |
Fixed term deposits (included in cash and cash equivalents) | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 3.5 | 2.1 | 10.1 | 4.1 |
Equity securities — Trading | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0 | 2.8 | 1.9 | 11.7 |
Catastrophe bonds — Trading | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0.5 | 0.5 | 1.8 | 1.3 |
Other investments, at fair value | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | 0.5 | 0 | 0.5 | 0 |
Fixed income maturities | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Gross investment income | $ 12.5 | $ 11.1 | $ 37.7 | $ 31.6 |
Investments - Net Realized and
Investments - Net Realized and Unrealized Investment Gains and Losses and Change in Unrealized Gains and Losses on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Fixed income securities, available for sale — gross realized gains | $ 0.8 | $ 2.3 | $ 5.2 | $ 7.8 |
Fixed income securities, available for sale — gross realized (losses) | (1.1) | (1.6) | (8.5) | (5.3) |
Other-than-temporary impairments | 0 | (0.1) | 0 | (0.5) |
Fixed income securities, trading - gross realized gains | 1 | 3 | 3.6 | 8.3 |
Fixed income securities, trading - gross realized (losses) | (4.1) | (0.2) | (14.5) | (2.6) |
Equity securities — gross realized gains | 0 | 46.1 | 94.5 | 55 |
Equity securities — gross realized (losses) | 0 | (7.4) | (20.1) | (12.4) |
Catastrophe bonds | 0 | (3.1) | 0.9 | (3.2) |
Net change in gross unrealized gains (losses) | 4.5 | (25) | (119.2) | 54.4 |
Total net realized and unrealized investment (losses) gains recorded in the statement of operations | (0.9) | 17.5 | (59.3) | 105.7 |
Change in available for sale net unrealized (losses) gains: | ||||
Fixed income securities | (21) | 0.3 | (126.7) | 15.2 |
Total change in pre-tax available for sale unrealized (losses) gains | (21) | 0.3 | (126.7) | 15.2 |
Change in taxes | 1.3 | (0.4) | 8 | (1.4) |
Other Comprehensive Income (Loss), Securities, Available-for-Sale, Unrealized Holding Gain (Loss) Arising During Period, after Tax | (19.7) | (0.1) | (118.7) | 13.8 |
Short-term investments | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Fixed income securities, available for sale — gross realized gains | 0 | 0 | 0 | 0.1 |
Fixed income securities, available for sale — gross realized (losses) | (0.1) | 0 | (0.1) | 0 |
Fixed income securities, trading - gross realized gains | 0 | 1.9 | 0 | 2 |
Fixed income securities, trading - gross realized (losses) | (1.4) | 0 | (1.4) | 0 |
Cash and cash equivalents | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Fixed income securities, available for sale — gross realized gains | 0 | 0.3 | 0.2 | 0.3 |
Fixed income securities, available for sale — gross realized (losses) | 0 | 0 | (0.4) | (0.1) |
Fixed income securities, trading - gross realized gains | 0 | 1.3 | 1.5 | 1.3 |
Fixed income securities, trading - gross realized (losses) | (0.2) | 0 | (0.2) | 0 |
MVI | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Change in fair value of investment | 0 | 0 | (0.2) | (0.1) |
Chaspark | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Change in fair value of investment | 0 | 0 | 0 | 0.9 |
Bene | ||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | ||||
Change in fair value of investment | $ (0.3) | $ 0 | $ (0.6) | $ (0.2) |
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 | Sep. 30, 2018 | Dec. 31, 2017 |
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 5,393.8 | $ 5,291.2 |
Gross Unrealized Gains | 18.1 | 63.6 |
Gross Unrealized Losses | (115.1) | (33.9) |
Fair Market Value | 5,296.8 | 5,320.9 |
Total fixed income securities — Available for sale | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 5,273.4 | 5,201.2 |
Gross Unrealized Gains | 18.1 | 63.6 |
Gross Unrealized Losses | (115.1) | (33.8) |
Fair Market Value | 5,176.4 | 5,231 |
Total short-term investments — Available for sale | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 120.4 | 90 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (0.1) |
Fair Market Value | 120.4 | 89.9 |
U.S. government | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 1,420.1 | 1,166.5 |
Gross Unrealized Gains | 0.8 | 4.5 |
Gross Unrealized Losses | (33.1) | (11.6) |
Fair Market Value | 1,387.8 | 1,159.4 |
U.S. agency | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 47.1 | 51.8 |
Gross Unrealized Gains | 0.1 | 0.5 |
Gross Unrealized Losses | (0.8) | (0.2) |
Fair Market Value | 46.4 | 52.1 |
Municipal | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 51.9 | 53 |
Gross Unrealized Gains | 1.7 | 2.1 |
Gross Unrealized Losses | (1.5) | (0.2) |
Fair Market Value | 52.1 | 54.9 |
Corporate | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 2,305.9 | 2,391.4 |
Gross Unrealized Gains | 8 | 36.1 |
Gross Unrealized Losses | (47.9) | (11.8) |
Fair Market Value | 2,266 | 2,415.7 |
Non-U.S. government-backed corporate | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 91.4 | 91.5 |
Gross Unrealized Gains | 0.1 | 0.3 |
Gross Unrealized Losses | (0.7) | (0.5) |
Fair Market Value | 90.8 | 91.3 |
Non-U.S. government | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 404.1 | 479.7 |
Gross Unrealized Gains | 3.1 | 6.4 |
Gross Unrealized Losses | (1.8) | (1.2) |
Fair Market Value | 405.4 | 484.9 |
Asset-backed | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 18.7 | 26.3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.2) | (0.1) |
Fair Market Value | 18.5 | 26.2 |
Agency mortgage-backed | ||
Statement [Line Items] | ||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 934.2 | 941 |
Gross Unrealized Gains | 4.3 | 13.7 |
Gross Unrealized Losses | (29.1) | (8.2) |
Fair Market Value | $ 909.4 | $ 946.5 |
Investments - Cost, Gross Unr_2
Investments - Cost, Gross Unrealized Gains and Losses, and Estimated Fair Value of Trading Investments in Fixed Income Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Statement [Line Items] | ||
Cost or Amortized Cost | $ 1,434.2 | $ 1,634.9 |
Fair Market Value | 1,407.2 | 1,649.3 |
U.S. government | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 167.2 | 162.3 |
Gross Unrealized Gains | 0 | 0.4 |
Gross Unrealized Losses | (1.3) | (0.8) |
Fair Market Value | 165.9 | 161.9 |
Municipal | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 21.7 | 32.4 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | (0.2) |
Fair Market Value | 20.7 | 32.2 |
Corporate | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 892.4 | 1,036.5 |
Gross Unrealized Gains | 2.7 | 14 |
Gross Unrealized Losses | (20.2) | (4.2) |
Fair Market Value | 874.9 | 1,046.3 |
Non-U.S. government-backed corporate | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 0 | 1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 0 | 1 |
Non-U.S. government | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 229.8 | 196.1 |
Gross Unrealized Gains | 2.4 | 6.9 |
Gross Unrealized Losses | (4.7) | (0.5) |
Fair Market Value | 227.5 | 202.5 |
Asset-backed | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 5 | 9.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (0.1) | 0 |
Fair Market Value | 4.9 | 9.9 |
Agency mortgage-backed | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 118.1 | 196.7 |
Gross Unrealized Gains | 0 | 0.2 |
Gross Unrealized Losses | (4.8) | (1.4) |
Fair Market Value | 113.3 | 195.5 |
Total fixed income securities — Trading | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 1,434.2 | 1,634.9 |
Gross Unrealized Gains | 5.1 | 21.5 |
Gross Unrealized Losses | (32.1) | (7.1) |
Fair Market Value | 1,407.2 | 1,649.3 |
Total short-term investments — Trading | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 4.3 | 73 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Market Value | 4.3 | 73 |
Total equity securities — Trading | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 414.8 | |
Gross Unrealized Gains | 83.5 | |
Gross Unrealized Losses | (7.3) | |
Fair Market Value | 491 | |
Total catastrophe bonds — Trading | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 37.7 | 33.5 |
Gross Unrealized Gains | 0.1 | 0 |
Gross Unrealized Losses | (0.4) | (1.1) |
Fair Market Value | 37.4 | 32.4 |
Total | ||
Statement [Line Items] | ||
Cost or Amortized Cost | 1,476.2 | 2,156.2 |
Gross Unrealized Gains | 5.2 | 105 |
Gross Unrealized Losses | (32.5) | (15.5) |
Fair Market Value | $ 1,448.9 | $ 2,245.7 |
Investments - Other Investments
Investments - Other Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2018 | Sep. 30, 2018 | |
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | $ 67.1 | $ 66.4 |
Investment in the period | 0 | 1.3 |
Unrealized/realized gain/(loss) | (0.2) | (0.8) |
Closing value of investment | 66.9 | 66.9 |
MVI | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 0.3 | 0.5 |
Investment in the period | 0 | 0.1 |
Unrealized/realized gain/(loss) | 0.1 | (0.2) |
Closing value of investment | 0.4 | 0.4 |
Bene | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 3.8 | 2.9 |
Investment in the period | 0 | 1.2 |
Unrealized/realized gain/(loss) | (0.3) | (0.6) |
Closing value of investment | 3.5 | 3.5 |
Digital Re | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 0.5 | 0.5 |
Investment in the period | 0 | 0 |
Unrealized/realized gain/(loss) | 0 | 0 |
Closing value of investment | 0.5 | 0.5 |
Crop Re | ||
Equity Method Investment, Aggregate Cost [Roll Forward] | ||
Opening undistributed value of investment | 62.5 | 62.5 |
Investment in the period | 0 | 0 |
Unrealized/realized gain/(loss) | 0 | 0 |
Closing value of investment | $ 62.5 | $ 62.5 |
Investments - Summary of Fixed
Investments - Summary of Fixed Maturities (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 5,393.8 | $ 5,291.2 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 5,273.4 | 5,201.2 | |
Available for sale investments in fixed income maturities, Fair Market Value | 5,296.8 | 5,320.9 | |
Total fixed income securities — Available for sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 5,273.4 | 5,201.2 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 5,273.4 | 5,201.2 | |
Available for sale investments in fixed income maturities, Fair Market Value | 5,176.4 | 5,231 | |
Agency mortgage-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 934.2 | 941 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 934.2 | 941 | |
Available for sale investments in fixed income maturities, Fair Market Value | $ 909.4 | 946.5 | |
Available For Sale Securities Average Ratings By Maturity | AA+ | AA+ | |
Asset-backed | |||
Debt Securities, Available-for-sale [Line Items] | |||
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | $ 18.7 | 26.3 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 18.7 | 26.3 | |
Available for sale investments in fixed income maturities, Fair Market Value | $ 18.5 | 26.2 | |
Available For Sale Securities Average Ratings By Maturity | AAA | AAA | |
Total fixed income securities — Available for sale | |||
Debt Securities, Available-for-sale [Line Items] | |||
Due one year or less, Cost or Amortized Cost | $ 445.6 | 561.7 | |
Due after one year through five years, Cost or Amortized Cost | 2,720.5 | 2,486.7 | |
Due after five years through ten years, Cost or Amortized Cost | 1,044.4 | 1,092.2 | |
Due after ten years, Cost or Amortized Cost | 110 | 93.3 | |
Total, Available for sale investments in fixed income maturities, Cost or Amortized Cost | 4,320.5 | 4,233.9 | |
Due one year or less, Fair Market Value | 445.5 | 562.4 | |
Due after one year through five years, Fair Market Value | 2,680.5 | 2,492.2 | |
Due after five years through ten years, Fair Market Value | 1,008.5 | 1,097.4 | |
Due after ten years, Fair Market Value | 114 | 106.3 | |
Available for sale investments in fixed income maturities, Fair Market Value | $ 4,248.5 | $ 4,258.3 | |
Available For Sale Securities Average for one year or less | AA- | AA | |
Available For Sale Securities Average after one year through five years | AA- | AA- | |
Available For Sale Securities Average after five years through ten years | AA- | A+ | |
Available For Sale Securities Debt Maturities 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 | Sep. 30, 2018USD ($)Security | Dec. 31, 2017USD ($)Security |
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3,106.3 | $ 1,965.3 |
0-12 months, Gross Unrealized Loss | (57.1) | (12) |
Over 12 months, Fair Market Value | 1,334.8 | 984.3 |
Over 12 months, Gross Unrealized Loss | (58) | (21.9) |
Total, Fair Market Value | 4,441.1 | 2,949.6 |
Total, Gross Unrealized Loss | $ (115.1) | $ (33.9) |
Number of Securities | Security | 1,254 | 769 |
Total fixed income securities — Available for sale | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 3,029.9 | $ 1,918.4 |
0-12 months, Gross Unrealized Loss | (57.1) | (11.9) |
Over 12 months, Fair Market Value | 1,334.8 | 984.3 |
Over 12 months, Gross Unrealized Loss | (58) | (21.9) |
Total, Fair Market Value | 4,364.7 | 2,902.7 |
Total, Gross Unrealized Loss | $ (115.1) | $ (33.8) |
Number of Securities | Security | 1,241 | 761 |
Total short-term investments — Trading | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 76.4 | $ 46.9 |
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 | 76.4 | 46.9 |
Total, Gross Unrealized Loss | $ 0 | $ (0.1) |
Number of Securities | Security | 13 | 8 |
U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 827.9 | $ 652.1 |
0-12 months, Gross Unrealized Loss | (15.3) | (5.1) |
Over 12 months, Fair Market Value | 457.3 | 259.8 |
Over 12 months, Gross Unrealized Loss | (17.8) | (6.5) |
Total, Fair Market Value | 1,285.2 | 911.9 |
Total, Gross Unrealized Loss | $ (33.1) | $ (11.6) |
Number of Securities | Security | 140 | 101 |
U.S. agency | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 25.5 | $ 20.1 |
0-12 months, Gross Unrealized Loss | (0.4) | (0.2) |
Over 12 months, Fair Market Value | 13.1 | 6.1 |
Over 12 months, Gross Unrealized Loss | (0.4) | 0 |
Total, Fair Market Value | 38.6 | 26.2 |
Total, Gross Unrealized Loss | $ (0.8) | $ (0.2) |
Number of Securities | Security | 15 | 10 |
Municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 33.3 | $ 28.5 |
0-12 months, Gross Unrealized Loss | (1.1) | (0.2) |
Over 12 months, Fair Market Value | 7.2 | 0 |
Over 12 months, Gross Unrealized Loss | (0.4) | 0 |
Total, Fair Market Value | 40.5 | 28.5 |
Total, Gross Unrealized Loss | $ (1.5) | $ (0.2) |
Number of Securities | Security | 13 | 9 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 1,466.5 | $ 699.3 |
0-12 months, Gross Unrealized Loss | (28.7) | (3.4) |
Over 12 months, Fair Market Value | 416.7 | 360.7 |
Over 12 months, Gross Unrealized Loss | (19.2) | (8.4) |
Total, Fair Market Value | 1,883.2 | 1,060 |
Total, Gross Unrealized Loss | $ (47.9) | $ (11.8) |
Number of Securities | Security | 725 | 412 |
Non-U.S. government-backed corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 43.2 | $ 43.5 |
0-12 months, Gross Unrealized Loss | (0.3) | (0.3) |
Over 12 months, Fair Market Value | 25.4 | 13.3 |
Over 12 months, Gross Unrealized Loss | (0.4) | (0.2) |
Total, Fair Market Value | 68.6 | 56.8 |
Total, Gross Unrealized Loss | $ (0.7) | $ (0.5) |
Number of Securities | Security | 15 | 15 |
Non-U.S. government | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 193.8 | $ 206.2 |
0-12 months, Gross Unrealized Loss | (0.9) | (0.8) |
Over 12 months, Fair Market Value | 50.1 | 32 |
Over 12 months, Gross Unrealized Loss | (0.9) | (0.4) |
Total, Fair Market Value | 243.9 | 238.2 |
Total, Gross Unrealized Loss | $ (1.8) | $ (1.2) |
Number of Securities | Security | 61 | 47 |
Asset-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 13.4 | $ 11.1 |
0-12 months, Gross Unrealized Loss | (0.2) | 0 |
Over 12 months, Fair Market Value | 5 | 10.5 |
Over 12 months, Gross Unrealized Loss | 0 | (0.1) |
Total, Fair Market Value | 18.4 | 21.6 |
Total, Gross Unrealized Loss | $ (0.2) | $ (0.1) |
Number of Securities | Security | 7 | 11 |
Agency mortgage-backed | ||
Debt Securities, Available-for-sale [Line Items] | ||
0-12 months, Fair Market Value | $ 426.3 | $ 257.6 |
0-12 months, Gross Unrealized Loss | (10.2) | (1.9) |
Over 12 months, Fair Market Value | 360 | 301.9 |
Over 12 months, Gross Unrealized Loss | (18.9) | (6.3) |
Total, Fair Market Value | 786.3 | 559.5 |
Total, Gross Unrealized Loss | $ (29.1) | $ (8.2) |
Number of Securities | Security | 265 | 156 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Dec. 18, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 19, 2018 | Sep. 18, 2018 | Jun. 30, 2018 | May 10, 2018 | Jan. 01, 2017 | Jul. 26, 2016 | Jan. 01, 2015 |
Investment Holdings [Line Items] | |||||||||||||
Catastrophe bonds | $ 37,400,000 | $ 37,400,000 | $ 32,400,000 | ||||||||||
Equity method investment, aggregate cost | 66,900,000 | 66,900,000 | 66,400,000 | $ 67,100,000 | |||||||||
Restricted assets | 4,526,400,000 | 4,526,400,000 | 4,638,800,000 | ||||||||||
Other investments | 100,500,000 | 100,500,000 | 0 | ||||||||||
Investment funds | 0 | 0 | 0 | ||||||||||
OTTI charge recognized | 0 | $ 100,000 | 0 | $ 500,000 | |||||||||
MVI | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, aggregate cost | 400,000 | 400,000 | 500,000 | 300,000 | $ 800,000 | ||||||||
Additional investment | 100,000 | 100,000 | |||||||||||
Bene | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, aggregate cost | 3,500,000 | 3,500,000 | 2,900,000 | 3,800,000 | $ 3,300,000 | ||||||||
Additional investment | 1,200,000 | ||||||||||||
Equity method investment, ownership percentage | 20.00% | ||||||||||||
Digital Re | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, aggregate cost | 500,000 | 500,000 | 500,000 | 500,000 | $ 2,300,000 | ||||||||
Equity method investment, ownership percentage | 49.00% | ||||||||||||
Crop Re | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, aggregate cost | $ 62,500,000 | 62,500,000 | 62,500,000 | 62,500,000 | $ 62,500,000 | ||||||||
Additional investment | $ 5,900,000 | ||||||||||||
Equity method investment, ownership percentage | 23.20% | ||||||||||||
AgriLogic Consulting, LLC | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, aggregate cost | $ 0 | ||||||||||||
Equity method investment, ownership percentage | 40.00% | ||||||||||||
CGB DS | Crop Re | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Equity method investment, counterparty ownership percentage | 76.80% | ||||||||||||
Limited Partner | Real estate funds | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Restricted assets | $ 0 | $ 0 | $ 100,000,000 | ||||||||||
Other investments | $ 13,800,000 | $ 86,200,000 | |||||||||||
Disposed of by Sale | Consulting Relationships | AgriLogic Consulting, LLC | |||||||||||||
Investment Holdings [Line Items] | |||||||||||||
Sale of interest of consulting business | 60.00% |
Variable Interest Entities - Na
Variable Interest Entities - Narrative (Details) | Sep. 30, 2018variable_interest_entity |
Payables and Accruals [Abstract] | |
Number of Variable Interest Entities | 2 |
Variable Interest Entities - Su
Variable Interest Entities - Summary of Silverton Loan Notes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Movement in Silverton Loan Notes [Roll Forward] | ||||||
Total liability balance of Loan Notes, Beginning Balance | $ 107.2 | $ 277.9 | ||||
Total change in fair value for the period | $ (1.7) | $ 9.8 | (4.1) | 3.6 | ||
Total distributed in the period | (97.1) | (144.7) | ||||
Total liability balance of Loan Notes, Ending Balance | 15.2 | 128.7 | 15.2 | 128.7 | ||
Loan notes (long-term liabilities) | $ 0 | $ 125.7 | ||||
Accrued expenses (current liabilities) | 15.2 | 3 | ||||
Total aggregate unpaid balance | 15.2 | 128.7 | 107.2 | 277.9 | 15.2 | 128.7 |
Third party | ||||||
Movement in Silverton Loan Notes [Roll Forward] | ||||||
Total liability balance of Loan Notes, Beginning Balance | 86.6 | 223.4 | ||||
Total change in fair value for the period | 4.1 | (3.6) | ||||
Total distributed in the period | (78.4) | (115.9) | ||||
Total liability balance of Loan Notes, Ending Balance | 12.3 | 103.9 | 12.3 | 103.9 | ||
Loan notes (long-term liabilities) | 0 | 101.5 | ||||
Accrued expenses (current liabilities) | 12.3 | 2.4 | ||||
Total aggregate unpaid balance | 12.3 | 103.9 | 86.6 | 223.4 | 12.3 | 103.9 |
Aspen Holdings | ||||||
Movement in Silverton Loan Notes [Roll Forward] | ||||||
Total liability balance of Loan Notes, Beginning Balance | 20.6 | 54.5 | ||||
Total change in fair value for the period | 1 | (0.9) | ||||
Total distributed in the period | (18.7) | (28.8) | ||||
Total liability balance of Loan Notes, Ending Balance | 2.9 | 24.8 | 2.9 | 24.8 | ||
Loan notes (long-term liabilities) | 0 | 24.2 | ||||
Accrued expenses (current liabilities) | 2.9 | 0.6 | ||||
Total aggregate unpaid balance | $ 2.9 | $ 24.8 | 20.6 | 54.5 | $ 2.9 | $ 24.8 |
Aspen Holdings | Third party | ||||||
Movement in Silverton Loan Notes [Roll Forward] | ||||||
Total change in fair value for the period | $ 5.1 | $ (4.5) |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds trading, at fair value | $ 37.7 | $ 33.5 |
Derivatives at fair value | 6.4 | 6.4 |
Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Catastrophe bonds trading, at fair value | 37.4 | 32.4 |
Loan notes issued by variable interest entities, at fair value | (44.2) | |
Total | 6,837.2 | 7,485.4 |
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, at fair value | 4.3 | 73 |
Fair Value, Measurements, Recurring | Equity investments trading, at fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 491 |
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 | 6.4 | 6.4 |
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 at fair value | (3.1) | (1) |
Available for sale financial assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 5,176.4 | 5,231 |
Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 1,387.8 | 1,159.4 |
Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 46.4 | 52.1 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 52.1 | 54.9 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 2,266 | 2,415.7 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 90.8 | 91.3 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 405.4 | 484.9 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 18.5 | 26.2 |
Available for sale financial assets | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 909.4 | 946.5 |
Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 120.4 | 89.9 |
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, at fair value | 1,407.2 | 1,649.3 |
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, at fair value | 165.9 | 161.9 |
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, at fair value | 20.7 | 32.2 |
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, at fair value | 874.9 | 1,046.3 |
Held for trading 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, at fair value | 0 | 1 |
Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 227.5 | 202.5 |
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, at fair value | 4.9 | 9.9 |
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, at fair value | 113.3 | 195.5 |
Real estate funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 100.5 | |
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 | 0 |
Loan notes issued by variable interest entities, at fair value | 0 | |
Total | 1,983.9 | 2,338.3 |
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, at fair value | 0.5 | 73 |
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, at fair value | 0 | 491 |
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 | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 1,658.2 | 1,500.6 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 1,387.8 | 1,159.4 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 270.4 | 341.2 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Available for sale financial assets | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 1 | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 109.9 | 87.3 |
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, at fair value | 215.3 | 186.4 |
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, at fair value | 165.9 | 161.9 |
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, at fair value | 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, at fair value | 0 | 0 |
Level 1 | Held for trading 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, at fair value | 0 | 0 |
Level 1 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 49.4 | 24.5 |
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, at fair value | 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, at fair value | 0 | 0 |
Level 1 | Real estate funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 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 | 37.4 | 32.4 |
Loan notes issued by variable interest entities, at fair value | 0 | |
Total | 4,765.1 | 5,233.7 |
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, at fair value | 3.8 | 0 |
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, at fair value | 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 | 6.4 | 6.4 |
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 at fair value | (3.1) | (1) |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 3,518.2 | 3,730.4 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 46.4 | 52.1 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 52.1 | 54.9 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 2,266 | 2,415.7 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 90.8 | 91.3 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 135 | 143.7 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 18.5 | 26.2 |
Level 2 | Available for sale financial assets | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 909.4 | 946.5 |
Level 2 | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 10.5 | 2.6 |
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, at fair value | 1,191.9 | 1,462.9 |
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, at fair value | 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, at fair value | 20.7 | 32.2 |
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, at fair value | 874.9 | 1,046.3 |
Level 2 | Held for trading 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, at fair value | 0 | 1 |
Level 2 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 178.1 | 178 |
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, at fair value | 4.9 | 9.9 |
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, at fair value | 113.3 | 195.5 |
Level 2 | Real estate funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | |
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 | 0 |
Loan notes issued by variable interest entities, at fair value | (44.2) | |
Total | (12.3) | (86.6) |
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, at fair value | 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, at fair value | 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 | Liabilities under derivative contracts — foreign exchange contracts | Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | U.S. agency | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government-backed corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Asset-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Available for sale financial assets | Fair Value, Measurements, Recurring | Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | 0 |
Level 3 | Short-term investments | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 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, at fair value | 0 | 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, at fair value | 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, at fair value | 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, at fair value | 0 | 0 |
Level 3 | Held for trading 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, at fair value | 0 | 0 |
Level 3 | Held for trading financial assets, at fair value | Fair Value, Measurements, Recurring | Non-U.S. government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 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, at fair value | 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, at fair value | 0 | 0 |
Level 3 | Real estate funds | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investments, at fair value | 0 | |
Accrued expenses and other payables | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value | (12.3) | (42.4) |
Accrued expenses and other payables | Level 1 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value | 0 | 0 |
Accrued expenses and other payables | Level 2 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value | 0 | 0 |
Accrued expenses and other payables | Level 3 | Fair Value, Measurements, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loan notes issued by variable interest entities, at fair value | $ (12.3) | $ (42.4) |
Fair Value Measurements - Recon
Fair Value Measurements - Reconciliation of Liabilities Using Level 3 Inputs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Accrued expenses (current liabilities) | $ 15.2 | $ 3 | $ 15.2 | $ 3 | |
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Face Amount, Issued By Third Parties | $ 44.2 | ||||
Level 3 | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Debt Instrument, Face Amount, Issued By Third Parties | 44.2 | ||||
Level 3 | Fair Value, Measurements, Recurring | Silverton 2016 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 115.1 | 223.4 | 223.4 | ||
Distributed to third party | (1.4) | (115.9) | |||
Total change in fair value included in the statement of operations | (9.8) | (3.6) | |||
Ending balance | 103.9 | 103.9 | |||
Level 3 | Fair Value, Measurements, Recurring | Silverton 2017 | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Beginning balance | 25.3 | 86.6 | |||
Distributed to third party | (14.7) | (78.4) | |||
Total change in fair value included in the statement of operations | 1.7 | 4.1 | |||
Ending balance | 12.3 | 12.3 | $ 86.6 | ||
Third party | |||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Accrued expenses (current liabilities) | $ 12.3 | $ 2.4 | $ 12.3 | $ 2.4 |
Fair Value Measurements - Prici
Fair Value Measurements - Pricing Sources Used in Pricing Fixed Income Investments (Details) | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value Disclosures [Abstract] | ||
Index providers | 85.00% | 84.00% |
Pricing services | 13.00% | 11.00% |
Broker-dealers | 2.00% | 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 | Sep. 30, 2018 | Dec. 31, 2017 |
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 5,562.6 | $ 6,254.6 |
% of Total Fair Value by Security Type | 85.00% | 85.00% |
Fixed income maturities | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 5,562.6 | $ 5,763.6 |
% of Total Fair Value by Security Type | 85.00% | 84.00% |
Fixed income maturities | U.S. government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 1,553.6 | $ 1,321.3 |
% of Total Fair Value by Security Type | 100.00% | 100.00% |
Fixed income maturities | U.S. agency | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 44.6 | $ 43.4 |
% of Total Fair Value by Security Type | 96.00% | 83.00% |
Fixed income maturities | Municipal | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 22.3 | $ 37.4 |
% of Total Fair Value by Security Type | 31.00% | 43.00% |
Fixed income maturities | Corporate | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 2,980.9 | $ 3,299.6 |
% of Total Fair Value by Security Type | 95.00% | 83.00% |
Fixed income maturities | Non-U.S. government-backed corporate | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 40 | $ 44 |
% of Total Fair Value by Security Type | 44.00% | 48.00% |
Fixed income maturities | Non-U.S. government | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 360.4 | $ 399.4 |
% of Total Fair Value by Security Type | 57.00% | 58.00% |
Fixed income maturities | Asset-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 7.7 | $ 13.5 |
% of Total Fair Value by Security Type | 33.00% | 37.00% |
Fixed income maturities | Agency mortgage-backed | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 553.1 | $ 605 |
% of Total Fair Value by Security Type | 54.00% | 53.00% |
Equity securities — Trading | ||
Fair Value [Line Items] | ||
Fair Market Value Determined using Prices from Index Providers | $ 0 | $ 491 |
% of Total Fair Value by Security Type | 0.00% | 100.00% |
Fair Value Measurements - Loan
Fair Value Measurements - Loan Notes Issued by Variable Interest Entities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gross written premiums | $ 873.2 | $ 852.5 | $ 2,843.8 | $ 2,672.6 | |
Maximum | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gross written premiums | 61.1 | $ 61.1 | |||
Reserve for losses | 61.9 | 61.9 | |||
Loan notes held by third parties | 325 | 325 | 325 | ||
Minimum | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gross written premiums | 50.1 | 50.1 | |||
Reserve for losses | 4.2 | 4.2 | |||
Loan notes held by third parties | 325 | 325 | 325 | ||
Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total | 6,837.2 | 6,837.2 | 7,485.4 | ||
Loan notes held by third parties | 44.2 | ||||
Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total | (12.3) | (12.3) | (86.6) | ||
Loan notes held by third parties | 44.2 | ||||
Fair Value, Measurements, Recurring | Level 3 | Silverton 2016 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total | 86.6 | ||||
Amount of Level 3 liabilities settled | 1.4 | 115.9 | |||
Total change in fair value included in the statement of operations | $ (9.8) | $ (3.6) | |||
Fair Value, Measurements, Recurring | Level 3 | Silverton 2017 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total | 12.3 | 12.3 | |||
Amount of Level 3 liabilities settled | 14.7 | 78.4 | |||
Total change in fair value included in the statement of operations | 1.7 | 4.1 | |||
Accrued expenses and other payables | Fair Value, Measurements, Recurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes held by third parties | 12.3 | 12.3 | 42.4 | ||
Accrued expenses and other payables | Fair Value, Measurements, Recurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Loan notes held by third parties | $ 12.3 | $ 12.3 | $ 42.4 | ||
Measurement Input, Expected Term | Maximum | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Contract period | 365 days | 365 days |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2018USD ($)quote / Investment | Sep. 30, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2018USD ($)quote / Investment | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($)quote / Investment | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Quotes per fixed income investment | quote / Investment | 2.2 | 2.2 | 2 | |||||
Silverton 2,015 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 85 | |||||||
Silverton 2015, Third-party Funded | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 70 | |||||||
Silverton 2,016 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 125 | |||||||
Silverton 2016, Third-party Funded | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 100 | |||||||
Silverton 2,017 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 130 | |||||||
Silverton 2017, Third-party Funded | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Notes Issued | $ 105 | |||||||
Fair Value, Measurements, Recurring | Level 3 | Silverton | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Repayments of debt | $ 115.6 | |||||||
Fair Value, Measurements, Recurring | Level 3 | Silverton 2016 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Amount of Level 3 liabilities settled | $ 1.4 | $ 115.9 | ||||||
Fair Value, Measurements, Recurring | Level 3 | Silverton 2017 | ||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||
Amount of Level 3 liabilities settled | $ 14.7 | $ 78.4 |
Reinsurance - Narrative (Detail
Reinsurance - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 | |
Concentration Risk [Line Items] | ||||
Plus reinsurance recoverable on unpaid losses at period end | $ 1,767.1 | $ 1,515.2 | $ 1,369.5 | $ 560.7 |
Reinsurance recoverables, uncollateralized | $ 1,237.8 | $ 1,001.9 | ||
AM Best, A Rating | Standard & Poor's, A Plus Rating | Lloyd's | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 14.10% | 13.80% | ||
AM Best, A Plus Rating | Standard & Poor's, AA- Rating | Munich Re | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 16.80% | 17.00% | ||
AM Best, A Plus Rating | Standard & Poor's, AA- Rating | Scor Global P&C SE | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 8.90% | |||
AM Best, A Plus Rating | Standard & Poor's, A Plus Rating | Aioi Nissay Dowa | ||||
Concentration Risk [Line Items] | ||||
Concentration Risk, Percentage | 7.60% |
Derivative Contracts - Fair Val
Derivative Contracts - Fair Value of Derivative Instruments (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Derivatives at fair value | $ 6.4 | $ 6.4 |
Foreign Exchange Contracts | Not Designated as Hedging Instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative notional amount | 1,205.9 | 751.6 |
Cash collateral provided | 0.5 | 0.6 |
Foreign Exchange Contracts | Not Designated as Hedging Instruments | Derivatives at Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Derivative notional amount | 661.5 | 577.7 |
Foreign Exchange Contracts | Not Designated as Hedging Instruments | Liabilities under Derivative Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liability notional amount | 544.4 | 173.9 |
Foreign Exchange Contracts | Designated as Hedging Instrument | Derivatives at Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Derivative notional amount | 30.9 | 60.6 |
Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | Not Designated as Hedging Instruments | Derivatives at Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives at fair value | 7 | 5 |
Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | Not Designated as Hedging Instruments | Liabilities under Derivative Contracts | ||
Derivatives, Fair Value [Line Items] | ||
Liabilities at fair value | (3.1) | (1) |
Level 2 | Fair Value, Measurements, Recurring | Foreign Exchange Contracts | Designated as Hedging Instrument | Derivatives at Fair Value | ||
Derivatives, Fair Value [Line Items] | ||
Derivatives at fair value | $ (0.6) | $ 1.4 |
Derivative Contracts - Gain_(Lo
Derivative Contracts - Gain/(Loss) Recognized in Income on Derivative (Details) - Foreign Exchange Contracts - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
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 | $ 7.2 | $ 4.5 | $ (15.4) | $ 25.2 |
Designated as Hedging Instrument | General and Administrative Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contract settlement | (2.7) | 1.2 | 0.3 | 2.4 |
Designated as Hedging Instrument | Net change from current period hedged transactions | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign exchange contracts, net change | $ (0.5) | $ (0.4) | $ (2.2) | $ 3.3 |
Derivative Contracts - Narrativ
Derivative Contracts - Narrative (Details) - Foreign Exchange Contracts - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Not Designated as Hedging Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative notional amount | $ 1,205.9 | $ 1,205.9 | $ 751.6 | ||
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 | 7.2 | $ 4.5 | (15.4) | $ 25.2 | |
Designated as Hedging Instrument | General and Administrative Expense | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Foreign exchange contract settlement | (2.7) | 1.2 | 0.3 | 2.4 | |
Designated as Hedging Instrument | Net change from current period hedged transactions | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Net unrealized gain (loss) | (0.5) | $ (0.4) | (2.2) | $ 3.3 | |
Derivatives at Fair Value | Not Designated as Hedging Instruments | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative notional amount | 661.5 | 661.5 | 577.7 | ||
Derivatives at Fair Value | Designated as Hedging Instrument | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative notional amount | $ 30.9 | $ 30.9 | $ 60.6 |
Deferred Policy Acquisition C_3
Deferred Policy Acquisition Costs - Reconciliation of Beginning and Ending Deferred Policy Acquisition Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | ||||
Balance at the beginning of the period | $ 298.6 | $ 364.6 | $ 294.3 | $ 358.4 |
Acquisition costs deferred | 92.5 | 94.9 | 273.5 | 311.1 |
Amortization of deferred policy acquisition costs | (101) | (105.4) | (277.7) | (315.4) |
Balance at the end of the period | $ 290.1 | $ 354.1 | $ 290.1 | $ 354.1 |
Reserves for Losses and Loss _3
Reserves for Losses and Loss Adjustment Expenses - Reconciliation of Beginning and Ending Consolidated Loss and Loss Adjustment Expenses ("LAE") Reserves (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Provision for losses and LAE at the start of the year | $ 6,749.5 | $ 5,319.9 | $ 5,319.9 | |
Net loss and LAE at the start of the year | 5,234.3 | 4,759.2 | 4,759.2 | |
Net loss and LAE expenses (disposed) | 0 | (125.7) | (125.5) | |
Provision for losses and LAE for claims incurred: | ||||
Current year | 1,151.4 | 1,543.3 | 2,100.1 | |
Prior years | (99.7) | (92.8) | (105.4) | |
Total incurred | 1,051.7 | 1,450.5 | 1,994.7 | |
Losses and LAE payments for claims incurred: | ||||
Current year | (93.5) | (150.4) | (397.5) | |
Prior years | (1,170.1) | (947.7) | (1,157.6) | |
Total paid | (1,263.6) | (1,098.1) | (1,555.1) | |
Foreign exchange losses/(gains) | (63.3) | 135.2 | 161 | |
Net losses and LAE reserves at period end | 4,959.1 | 5,121.1 | 5,234.3 | |
Plus reinsurance recoverable on unpaid losses at period end | 1,767.1 | 1,369.5 | 1,515.2 | $ 560.7 |
Provision for losses and LAE at the end of the relevant period | $ 6,726.2 | $ 6,490.6 | $ 6,749.5 |
Reserves for Losses and Loss _4
Reserves for Losses and Loss Adjustment Expenses - Short-duration Insurance Contracts, Claims Development by Accident Year (Details) $ in Millions | Sep. 30, 2018USD ($)Claim | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) |
Claims Development [Line Items] | |||||||
Liability for claims and claims adjustment expenses, net of reinsurance | $ 4,917.5 | ||||||
Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 5,027.8 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 3,023 | ||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 2,004.8 | ||||||
All outstanding liabilities before 2012, net of reinsurance | 101.3 | ||||||
Liability for claims and claims adjustment expenses, net of reinsurance | 2,106.1 | ||||||
Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 4,797.8 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | 2,555.5 | ||||||
All outstanding liabilities for 2012 and subsequent years, net of reinsurance | 2,242.3 | ||||||
All outstanding liabilities before 2012, net of reinsurance | 569.1 | ||||||
Liability for claims and claims adjustment expenses, net of reinsurance | 2,811.4 | ||||||
Accident Year 2012 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 644.3 | $ 637.1 | $ 653.6 | $ 668.7 | $ 654.8 | $ 625.8 | $ 603.9 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 27.2 | ||||||
Number of Reported Claims | Claim | 15,726 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 530.4 | 523.8 | 502 | 452.1 | 377.9 | 307.5 | 117.1 |
Accident Year 2012 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 680.4 | 686.8 | 688.3 | 689.6 | 720 | 736.3 | 691.8 |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 59.5 | ||||||
Number of Reported Claims | Claim | 3,875 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 514 | 495.8 | 458.1 | 414.2 | 360.4 | 247.7 | $ 63 |
Accident Year 2013 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 651.7 | 649.4 | 659.2 | 677.9 | 666.7 | 688.3 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 34.4 | ||||||
Number of Reported Claims | Claim | 14,661 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 537.4 | 501.9 | 454.2 | 364.2 | 253.9 | 90.4 | |
Accident Year 2013 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 497.8 | 503.8 | 523.1 | 548.8 | 571 | 578.6 | |
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 59 | ||||||
Number of Reported Claims | Claim | 3,737 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 376.4 | 359.1 | 319.4 | 277.8 | 186.4 | $ 63.1 | |
Accident Year 2014 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 696.7 | 693.7 | 701 | 728.7 | 754.2 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 51.9 | ||||||
Number of Reported Claims | Claim | 18,872 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 507.8 | 465.1 | 389.2 | 247.1 | 99.4 | ||
Accident Year 2014 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 480.3 | 485.6 | 512.8 | 528.4 | 549.4 | ||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 76.4 | ||||||
Number of Reported Claims | Claim | 3,769 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 314.4 | 288.4 | 247.8 | 172.1 | $ 56.9 | ||
Accident Year 2015 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 864.4 | 852.8 | 903.6 | 913.8 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 124.8 | ||||||
Number of Reported Claims | Claim | 21,221 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 544.5 | 470.6 | 326 | 119 | |||
Accident Year 2015 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 537.8 | 556.6 | 562.7 | 578.5 | |||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 103.7 | ||||||
Number of Reported Claims | Claim | 4,006 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 317.6 | 271.5 | 170.9 | $ 57.4 | |||
Accident Year 2016 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 885.7 | 879.6 | 907.3 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 264.7 | ||||||
Number of Reported Claims | Claim | 21,224 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 448.2 | 345.5 | 117.1 | ||||
Accident Year 2016 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 764.3 | 761.3 | 747.8 | ||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 190.5 | ||||||
Number of Reported Claims | Claim | 3,901 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 420.7 | 350.5 | $ 125.5 | ||||
Accident Year 2017 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 815.6 | 894.2 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 158.6 | ||||||
Number of Reported Claims | Claim | 21,367 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 400.2 | 167.5 | |||||
Accident Year 2017 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 1,185 | 1,187.2 | |||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 339.2 | ||||||
Number of Reported Claims | Claim | 4,165 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 573.4 | $ 227.7 | |||||
Accident Year 2018 | Insurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 469.4 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 289.8 | ||||||
Number of Reported Claims | Claim | 12,316 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 54.5 | ||||||
Accident Year 2018 | Reinsurance | |||||||
Claims Development [Line Items] | |||||||
Incurred Claims and Allocated Claim Adjustment Expense, Net | 652.2 | ||||||
Incurred but Not Reported (IBNR) Claims Liability, Net | $ 517.9 | ||||||
Number of Reported Claims | Claim | 1,971 | ||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expense, Net | $ 39 |
Reserves for Losses and Loss _5
Reserves for Losses and Loss Adjustment Expenses - Short-duration Insurance Contracts Reconciliation Of Claims Development To Liability (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Dec. 31, 2016 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claims adjustment expenses, net of reinsurance | $ 4,917.5 | |||
Reinsurance recoverable on unpaid losses | 1,767.1 | |||
Unallocated claims incurred | 47.3 | |||
Other | (5.7) | |||
Liability for unpaid claims and claim adjustment expense, aggregate reconciling items | 41.6 | |||
Losses and loss adjustment expenses | 6,726.2 | $ 6,749.5 | $ 6,490.6 | $ 5,319.9 |
Insurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claims adjustment expenses, net of reinsurance | 2,106.1 | |||
Reinsurance recoverable on unpaid losses | 1,448.6 | |||
Reinsurance lines | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Liability for claims and claims adjustment expenses, net of reinsurance | 2,811.4 | |||
Reinsurance recoverable on unpaid losses | 318.5 | |||
Insurance lines other than short-duration | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Losses and loss adjustment expenses | $ 0 |
Reserves for Losses and Loss _6
Reserves for Losses and Loss Adjustment Expenses - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Insurance [Abstract] | |||
Reserve releases | $ (99.7) | $ (92.8) | $ (105.4) |
Amount of reserves ceded | $ 125.5 |
Capital Structure - Summary of
Capital Structure - Summary of Authorized and Issued Share Capital (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 20, 2016 | |
Class of Stock [Line Items] | |||||
Ordinary shares, par value (in usd per share) | $ 0.0015144558 | $ 0.0015144558 | |||
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: | |||||
Ordinary shares, issued (in shares) | 59,697,669 | 59,474,085 | |||
Issued ordinary shares of 0.15144558¢ per share | $ 90 | $ 90 | |||
Total issued share capital | $ 122 | $ 122 | |||
Non Voting Shares Par Or Stated Value Per Share | $ 0.0015144558 | $ 0.0015144558 | |||
Preference shares, par value (in usd per share) | 0.0015144558 | 0.0015144558 | |||
Preferred shares, liquidation preference (in USD per share) | $ 25 | $ 25 | |||
Ordinary shares acquired and canceled, shares | 451,268 | 648,941 | |||
Ordinary shares purchased and canceled, value | $ 20,000 | $ 30,000 | |||
5.95% preference shares | |||||
Issued share capital: | |||||
Preference shares, issued (in shares) | 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) | $ 0.0015144558 | $ 0.0015144558 | |||
Preferred shares, liquidation preference (in USD per share) | $ 25 | $ 25 | |||
Preferred Stock Dividends Rate Percentage | 5.95% | 5.95% | |||
5.625% preference shares | |||||
Issued share capital: | |||||
Preference shares, issued (in shares) | 10,000,000 | 10,000,000 | 10,000,000 | ||
Issued preference shares of 0.15144558¢ each with a liquidation preference | $ 15 | $ 15 | |||
Preference shares, par value (in usd per share) | $ 0.0015144558 | $ 0.0015144558 | |||
Preferred shares, liquidation preference (in USD per share) | $ 25 | $ 25 | |||
Preferred Stock Dividends Rate Percentage | 5.625% | 5.625% |
Capital Structure - Summary o_2
Capital Structure - Summary of Ordinary Shares (Details) | 9 Months Ended |
Sep. 30, 2018shares | |
Ordinary Shares [Roll Forward] | |
Ordinary shares in issue as at December 31, 2017 | 59,474,085 |
Ordinary shares issued to employees under the 2013 share incentive plan and/or 2008 share purchase plan | 218,906 |
Ordinary shares issued to non-employee directors | 4,678 |
Ordinary shares in issue as at September 30, 2018 | 59,697,669 |
Capital Structure - Narrative (
Capital Structure - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Feb. 08, 2017 | |
Class of Stock [Line Items] | |||||
Additional paid-in capital | $ 966,000,000 | $ 954,700,000 | |||
Aggregate liquidation preferences | 525,000,000 | 525,000,000 | |||
Issuance costs | $ 13,100,000 | $ 13,100,000 | |||
Ordinary shares acquired and canceled, shares | 451,268 | 648,941 | |||
Ordinary shares purchased and canceled, value | $ 20,000,000 | $ 30,000,000 | |||
Ordinary shares acquired and canceled, average price per share (in usd per share) | $ 44.32 | $ 46.23 | |||
Repurchase Program 2017 | |||||
Class of Stock [Line Items] | |||||
Existing share repurchase authorization amount | $ 250,000,000 | ||||
7.250% preference shares | |||||
Class of Stock [Line Items] | |||||
Preferred Stock, Dividend Rate, Percentage | 7.25% |
Share-Based Payments - Share-ba
Share-Based Payments - Share-based Payments - Non-Employee Directors RSUs (Details) - Restricted Share Units - shares | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
RSUs granted, number of shares (in shares) | 230,766 | 200,021 |
Non-Employee Directors | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
RSUs granted, number of shares (in shares) | 29,025 | 22,230 |
Board of Directors Chairman | ||
Deferred Compensation Arrangement with Individual, Share-based Payments [Line Items] | ||
RSUs granted, number of shares (in shares) | 12,900 | 8,892 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) | 9 Months Ended | ||
Sep. 30, 2018USD ($)Agreementshares | Sep. 30, 2018GBP (£)Agreementshares | Sep. 30, 2017USD ($)shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of arrangements under options and other equity incentives | Agreement | 3 | 3 | |
Vesting period | 3 years | 3 years | |
Award vesting rights, percentage | 100.00% | 100.00% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 200.00% | 200.00% | |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number of shares (in shares) | shares | 215,273 | 215,273 | 216,878 |
Compensation costs | $ 700,000 | $ (400,000) | |
Tax benefit (expense) from compensation expense | $ 100,000 | $ 100,000 | |
Award vesting rights, percentage | 33.33% | 33.33% | |
Phantom Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number of shares (in shares) | shares | 150,185 | 150,185 | 173,619 |
Compensation costs | $ 100,000 | $ 700,000 | |
Tax benefit (expense) from compensation expense | $ 100,000 | $ 200,000 | |
Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | 3 years | |
Granted, number of shares (in shares) | shares | 230,766 | 230,766 | 200,021 |
Compensation costs | $ 6,800,000 | $ 7,200,000 | |
Tax benefit (expense) from compensation expense | 1,600,000 | 1,700,000 | |
Tax charge, non-employee directors | $ 0 | $ 0 | |
2013 Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available to grant under incentive plan (in shares) | shares | 2,845,683 | 2,845,683 | |
2016 Share Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available to grant under incentive plan (in shares) | shares | 263,695 | 263,695 | |
Sharesave Scheme | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee contribution period | 3 years | 3 years | |
Purchase price of fair market value | 85.00% | 85.00% | |
Employee savings under ESPP | £ | £ 500 | ||
International Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee contribution period | 2 years | 2 years | |
Employee savings under ESPP | $ 500 | ||
Shares issued (in shares) | shares | 35,098 | 35,098 | 10,545 |
Employee Share Purchase Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Tax benefit (expense) from compensation expense | $ 0 | $ 0 | |
Compensation costs charged in ESPP | $ 100,000 | $ 300,000 | |
Non-Employee Directors | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights, percentage | 8.33% | 8.33% | |
Non-Employee Directors | Restricted Share Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted, number of shares (in shares) | shares | 29,025 | 29,025 | 22,230 |
Compensation costs | $ 1,100,000 | $ 1,100,000 |
Intangible Assets and Goodwil_2
Intangible Assets and Goodwill - Summary of Changes in Intangible Assets (Details) - USD ($) $ in Millions | Jan. 19, 2016 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 |
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Amortization | $ (0.3) | $ (1.3) | $ (1.2) | $ (3.3) | |
Goodwill [Roll Forward] | |||||
Goodwill, Beginning of the period | 3.9 | 26 | 3.9 | 24.2 | |
Goodwill, Additions | 0 | 0 | 0 | 1.8 | |
Goodwill, End of the period | 3.9 | 26 | 3.9 | 26 | |
Intangible assets and goodwill, Beginning of the period | 27 | 79.4 | 27.9 | 79.6 | |
Intangible Assets and Goodwill, Acquired | 0 | 0 | 0 | 1.8 | |
Intangible assets and goodwill, End of the period | 26.7 | 78.1 | 26.7 | 78.1 | |
Trademark | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 2.7 | 6.3 | 2.9 | 6.6 | |
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |
Amortization | 0 | (0.3) | (0.2) | (0.6) | |
Intangible Assets, End of the period | $ 4 | 2.7 | 6 | 2.7 | 6 |
Insurance Licenses | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 16.7 | 16.7 | 16.7 | 16.7 | |
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |
Amortization | 0 | 0 | 0 | 0 | |
Intangible Assets, End of the period | 16.7 | 16.7 | 16.7 | 16.7 | |
Agency Relationships | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 2 | 25.1 | 2.3 | 26.2 | |
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |
Amortization | (0.1) | (0.5) | (0.4) | (1.6) | |
Intangible Assets, End of the period | 25 | 1.9 | 24.6 | 1.9 | 24.6 |
Non-compete Agreements | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 0.5 | 3 | 0.7 | 3.3 | |
Intangible Assets, Additions | 2.9 | 0 | 0 | 0 | 0 |
Amortization | (0.1) | (0.3) | (0.3) | (0.6) | |
Intangible Assets, End of the period | 0.4 | 2.7 | 0.4 | 2.7 | |
Consulting Relationships | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 0 | 0.8 | 0 | 0.9 | |
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |
Amortization | 0 | (0.1) | 0 | (0.2) | |
Intangible Assets, End of the period | $ 1 | 0 | 0.7 | 0 | 0.7 |
Contractual Rights | |||||
Finite and Indefinite Lived Intangible Assets [Roll Forward] | |||||
Intangible Assets, Beginning of the period | 1.2 | 1.5 | 1.4 | 1.7 | |
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |
Amortization | (0.1) | (0.1) | (0.3) | (0.3) | |
Intangible Assets, End of the period | $ 1.1 | $ 1.4 | $ 1.1 | $ 1.4 |
Intangible Assets and Goodwil_3
Intangible Assets and Goodwill - Narrative (Details) - USD ($) $ in Thousands | Dec. 18, 2017 | Jan. 01, 2017 | Oct. 31, 2016 | Sep. 22, 2016 | Jan. 19, 2016 | Apr. 05, 2005 | Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | Sep. 18, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2016 |
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Contingent consideration | $ 14,100 | ||||||||||||||
Consideration Transferred, Other | 22,800 | ||||||||||||||
Ceding commission | 2,000 | ||||||||||||||
Consideration transferred | 69,100 | ||||||||||||||
Software acquired | 12,000 | ||||||||||||||
Residual assets | 300 | ||||||||||||||
Total assets acquired, net | $ 47,000 | ||||||||||||||
Goodwill | $ 0 | $ 0 | $ 0 | $ 1,800 | |||||||||||
Impairment charge | $ 3,400 | ||||||||||||||
AgriLogic | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Percentage of interests acquired | 100.00% | ||||||||||||||
Aggregate consideration for sale and purchase agreement | $ 53,000 | ||||||||||||||
Goodwill | 22,100 | ||||||||||||||
Intangible assets, expected tax deductible amount | 34,000 | ||||||||||||||
Goodwill, expected tax deductible amount | $ 21,000 | ||||||||||||||
Eligible tax deduction period | 15 years | ||||||||||||||
Blue Waters | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Percentage of interests acquired | 100.00% | ||||||||||||||
Consideration transferred | $ 8,000 | ||||||||||||||
Residual assets | 300 | ||||||||||||||
Total assets acquired, net | 5,750 | ||||||||||||||
Goodwill | 2,100 | ||||||||||||||
Agency Relationships | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | $ 25,000 | 1,900 | 24,600 | 1,900 | 24,600 | 2,300 | $ 2,000 | $ 25,100 | $ 26,200 | ||||||
Intangible Assets, Additions | 0 | 0 | $ 0 | 0 | |||||||||||
Asset amortization period | 15 years | ||||||||||||||
Trademark | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 4,000 | 2,700 | 6,000 | $ 2,700 | 6,000 | 2,900 | 2,700 | 6,300 | 6,600 | ||||||
Intangible Assets, Additions | 0 | 0 | $ 0 | 0 | |||||||||||
Asset amortization period | 10 years | ||||||||||||||
Trademark | Blue Waters | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 1,500 | ||||||||||||||
Asset amortization period | 5 years | ||||||||||||||
Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 16,700 | 16,700 | $ 16,700 | 16,700 | 16,700 | 16,700 | 16,700 | 16,700 | |||||||
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |||||||||||
Insurance Licenses | Blue Waters | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of trading licenses | 50 | ||||||||||||||
Contractual Rights | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 1,100 | 1,400 | 1,100 | 1,400 | 1,400 | 1,200 | 1,500 | 1,700 | |||||||
Intangible Assets, Additions | 0 | 0 | 0 | 0 | |||||||||||
Consulting Relationships | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 1,000 | 0 | 700 | 0 | 700 | 0 | 0 | 800 | 900 | ||||||
Intangible Assets, Additions | 0 | 0 | $ 0 | 0 | |||||||||||
Asset amortization period | 10 years | ||||||||||||||
Customer Lists | Blue Waters | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 3,100 | ||||||||||||||
Asset amortization period | 5 years | ||||||||||||||
Non-compete Agreements | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 400 | 2,700 | $ 400 | 2,700 | 700 | $ 500 | $ 3,000 | $ 3,300 | |||||||
Intangible Assets, Additions | 2,900 | 0 | $ 0 | $ 0 | $ 0 | ||||||||||
Asset amortization period | 5 years | ||||||||||||||
Non-compete Agreements | Blue Waters | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | $ 1,000 | ||||||||||||||
Asset amortization period | 5 years | ||||||||||||||
Value of Business Acquired | AgriLogic | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Intangible Assets, Additions | $ 1,800 | ||||||||||||||
Crop Re | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Equity method investment, ownership percentage | 23.20% | ||||||||||||||
Digital Re | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Goodwill | $ 1,800 | ||||||||||||||
Equity method investment, ownership percentage | 49.00% | ||||||||||||||
LSML | Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | $ 1,900 | ||||||||||||||
LSML | Contractual Rights | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Asset amortization period | 5 years | ||||||||||||||
Aspen U.K. | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Aggregate consideration for sale and purchase agreement | $ 1,600 | ||||||||||||||
Aspen U.K. | Trademark | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 1,600 | $ 1,600 | 1,600 | ||||||||||||
Aspen U.K. | Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Acquired licenses | 2,100 | 2,100 | |||||||||||||
AAIC, Aspen Specialty, AIUK | Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Value of the asset | 16,600 | 16,600 | $ 16,600 | ||||||||||||
AAIC | Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Acquired licenses | 10,000 | 10,000 | |||||||||||||
Aspen Specialty | Insurance Licenses | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Acquired licenses | $ 4,500 | $ 4,500 | |||||||||||||
Disposed of by Sale | AgriLogic | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Sale of goodwill | $ (20,600) | ||||||||||||||
Disposed of by Sale | AgriLogic | Trademark | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Intangible assets (disposed) | (3,100) | ||||||||||||||
Disposed of by Sale | AgriLogic | Customer Lists | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Intangible assets (disposed) | (21,800) | ||||||||||||||
Disposed of by Sale | AgriLogic | Non-compete Agreements | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Intangible assets (disposed) | $ (900) | ||||||||||||||
Disposed of by Sale | AgriLogic Consulting, LLC | Consulting Relationships | |||||||||||||||
Finite And Indefinite Lived Intangible Assets By Major Class [Line Items] | |||||||||||||||
Sale of interest of consulting business | 60.00% |
Commitments and Contingent Li_3
Commitments and Contingent Liabilities - Schedule of Company's Restricted Assets (Details) - USD ($) $ in Millions | Sep. 30, 2018 | Dec. 31, 2017 |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | $ 4,526.4 | $ 4,638.8 |
Total as percent of investable assets(2) | 56.00% | 53.40% |
Securities and cash as collateral secured letters of credit | $ 840.3 | $ 658.5 |
Letters of credit / guarantees | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | 840.3 | 658.5 |
Affiliated transactions | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | 1,154.5 | 1,455 |
Third party | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | 2,431.1 | 2,425.3 |
Limited Partner | Real estate funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | 0 | 100 |
Purchase Commitment | Limited Partner | Real estate funds | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Restricted assets | $ 100.5 | $ 0 |
Commitments and Contingent Li_4
Commitments and Contingent Liabilities - Narrative (Details) $ / shares in Units, £ in Millions | Mar. 27, 2017USD ($) | Jun. 30, 2016 | Sep. 30, 2018USD ($) | Jun. 30, 2019$ / shares | Sep. 30, 2018GBP (£) | Sep. 19, 2018USD ($) | May 10, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2017GBP (£) | Sep. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | ||||||||||
Restricted assets | $ 4,526,400,000 | $ 4,638,800,000 | ||||||||
Other investments | 100,500,000 | 0 | ||||||||
Assets held by insurance regulators | 494,200,000 | 458,700,000 | ||||||||
Minimum capital required | £ | £ 0.4 | £ 0.4 | ||||||||
Maximum borrowing capacity | $ 200,000,000 | |||||||||
Line Of Credit Facility Increasable Capacity | $ 100,000,000 | |||||||||
Long-term Line of Credit | 0 | |||||||||
Line Of Credit Facility Tangible Net Worth Restrictions Minimum | $ 2,323,100,000 | |||||||||
Line Of Credit Facility Tangible Net Worth Net Income Restriction | 25.00% | |||||||||
Line Of Credit Facility Tangible Net Worth Cash Proceeds From Issuance Of Capital Stock Restriction | 25.00% | |||||||||
Percentage Of Consolidated Leverage Ratio Permitted | 35.00% | |||||||||
Letter of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Restricted assets | $ 840,300,000 | 658,500,000 | ||||||||
Citi Europe | Letter of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Maximum borrowing capacity | $ 550,000,000 | |||||||||
Outstanding letters of credit | 444,200,000 | 449,400,000 | ||||||||
LIBOR | Citi Europe | Letter of Credit | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Variable rate basis spread | 1.00% | |||||||||
Limited Partner | Real estate funds | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Restricted assets | $ 0 | $ 100,000,000 | ||||||||
Other investments | $ 13,800,000 | $ 86,200,000 | ||||||||
Subsequent Event | ||||||||||
Line of Credit Facility [Line Items] | ||||||||||
Business acquisition, share price | $ / shares | $ 42.75 |
Commitments and Contingent Li_5
Commitments and Contingent Liabilities - Amounts Outstanding under Operating Leases (Details) $ in Millions | Sep. 30, 2018USD ($) |
Leases [Abstract] | |
2,018 | $ 6.6 |
2,019 | 16 |
2,020 | 15.4 |
2,021 | 10.9 |
2,022 | 8.9 |
Later Years | 74.6 |
Total | $ 132.4 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) $ in Millions | Oct. 10, 2018USD ($) |
Hurricane Michael | Subsequent Event | |
Subsequent Event [Line Items] | |
Estimated liability for catastrophe claims | $ 40 |