Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Feb. 17, 2015 | Jun. 30, 2014 | |
Document Documentand Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Trading Symbol | AFSI | ||
Entity Registrant Name | AMTRUST FINANCIAL SERVICES, INC. | ||
Entity Central Index Key | 1365555 | ||
Current Fiscal Year End Date | -19 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 81,917,831 | ||
Entity Public Float | $1,305,118,675 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments: | ||
Fixed maturities, available-for-sale, at market value (amortized cost $4,137,146; $3,107,043) | $4,253,274 | $3,100,936 |
Equity securities, available-for-sale, at market value (cost $84,075; $16,010) | 81,044 | 15,148 |
Equity securities, trading, at market value (cost $25,407; $0) | 26,749 | 0 |
Short-term investments | 63,916 | 114,202 |
Equity investment in unconsolidated subsidiaries – related parties | 119,712 | 89,756 |
Other investments | 31,186 | 25,749 |
Securities pledged (amortized cost of $0; $316,576) | 0 | 311,518 |
Total investments | 4,575,881 | 3,657,309 |
Cash and cash equivalents | 902,750 | 830,022 |
Restricted cash and cash equivalents | 186,225 | 100,439 |
Accrued interest and dividends | 42,173 | 27,800 |
Premiums receivable, net | 1,851,682 | 1,593,975 |
Reinsurance recoverable (related party $1,517,499; $1,144,168) | 2,440,627 | 1,929,848 |
Prepaid reinsurance premium (related party $918,505; $739,719) | 1,302,848 | 1,011,304 |
Other assets (related party $136,516 $0; recorded at fair value $264,517; $233,024) | 1,094,943 | 890,333 |
Deferred policy acquisition costs | 628,383 | 468,404 |
Property and equipment, net | 154,175 | 104,299 |
Goodwill | 352,685 | 373,591 |
Intangible assets | 314,996 | 291,802 |
Total assets | 13,847,368 | 11,279,126 |
Liabilities: | ||
Loss and loss expense reserves | 5,664,205 | 4,368,234 |
Unearned premiums | 3,447,203 | 2,680,982 |
Ceded reinsurance premiums payable (related party $410,075; $393,941) | 683,421 | 635,588 |
Reinsurance payable on paid losses | 3,947 | 18,818 |
Funds held under reinsurance treaties | 10,653 | 27,574 |
Note payable on collateral loan – related party | 167,975 | 167,975 |
Securities sold but not yet purchased, at market | 13,052 | 0 |
Securities sold under agreements to repurchase, at contract value | 0 | 293,222 |
Accrued expenses and other current liabilities (recorded at fair value $18,567; $11,945) | 795,877 | 672,575 |
Deferred income taxes | 106,363 | 274,519 |
Debt | 757,871 | 560,174 |
Total liabilities | 11,650,567 | 9,699,661 |
Commitments and contingencies | ||
Redeemable non-controlling interest | 600 | 600 |
Stockholders' equity: | ||
Common stock, $.01 par value; 150,000 shares authorized, 98,211 and 98,122 issued in 2014 and 2013, respectively; 77,739 and 74,765 outstanding in 2014 and 2013, respectively | 980 | 980 |
Preferred stock, $.01 par value; 10,000 shares authorized, 4,785 and 4,600 issued and outstanding in 2014 and 2013, respectively | 300,000 | 115,000 |
Additional paid-in capital | 1,022,769 | 1,033,084 |
Treasury stock at cost; 20,472 and 23,357 shares in 2014 and 2013, respectively | -297,586 | -284,891 |
Accumulated other comprehensive income (loss) | 56,123 | -8,164 |
Retained earnings | 954,734 | 584,996 |
Total AmTrust Financial Services, Inc. equity | 2,037,020 | 1,441,005 |
Non-controlling interest | 159,181 | 137,860 |
Total stockholders’ equity | 2,196,201 | 1,578,865 |
Liabilities and Equity, Total | $13,847,368 | $11,279,126 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Fixed maturities, available-for-sale, amortized cost | $4,137,146 | $3,107,043 |
Equity securities, available-for-sale, cost | 84,075 | 16,010 |
Trading Securities, Cost | 25,407 | 0 |
Securities pledged | 0 | 316,576 |
Prepaid expenses and other assets, fair value | 264,517 | 233,024 |
Accrued expenses and other current liabilities, fair value | 18,567 | 11,945 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, issued | 98,211,000 | 98,122,000 |
Common stock, outstanding | 77,739,000 | 74,765,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 4,785,000 | 4,600,000 |
Treasury stock at cost, shares | 20,472,000 | 23,357,000 |
Reinsurance recoverable | 2,440,627 | 1,929,848 |
Prepaid reinsurance premium | 1,302,848 | 1,011,304 |
Ceded reinsurance premiums payable | 683,421 | 635,588 |
Other assets (related party $136,516 $0; recorded at fair value $264,517; $233,024) | 1,094,943 | 890,333 |
Related Party Transactions | ||
Reinsurance recoverable | 1,517,499 | 1,144,168 |
Prepaid reinsurance premium | 918,505 | 739,719 |
Ceded reinsurance premiums payable | 410,075 | 393,941 |
Other assets (related party $136,516 $0; recorded at fair value $264,517; $233,024) | $162,046 | $0 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Premium income: | |||
Net written premium | $3,956,618 | $2,565,673 | $1,648,037 |
Change in unearned premium | -430,054 | -299,683 | -229,185 |
Net earned premium | 3,526,564 | 2,265,990 | 1,418,852 |
Service and fee income (related parties – $58,428, $51,545, and $29,041) | 409,743 | 331,559 | 172,174 |
Net investment income | 131,601 | 84,819 | 68,167 |
Net realized gain on investments | 16,423 | 15,527 | 8,981 |
Total revenues | 4,084,331 | 2,697,895 | 1,668,174 |
Expenses: | |||
Loss and loss adjustment expense | 2,342,619 | 1,517,361 | 922,675 |
Acquisition costs and other underwriting expenses (net of ceding commission - related party - $405,071, $276,556, and $196,982) | 856,923 | 533,162 | 356,005 |
Other | 436,350 | 291,617 | 177,709 |
Total expenses | 3,635,892 | 2,342,140 | 1,456,389 |
Income before other income (expense), income taxes and equity in earnings of unconsolidated subsidiaries | 448,439 | 355,755 | 211,785 |
Other income (expenses): | |||
Interest expense (net of interest income - related party - $2,601, $0, and $0) | -45,857 | -34,691 | -28,508 |
Loss on extinguishment of debt | -9,831 | 0 | 0 |
Gain on investment in life settlement contracts net of profit commission | 12,306 | 3,800 | 13,822 |
Foreign currency gain (loss) | 60,245 | -6,533 | -242 |
Acquisition gain | 0 | 48,715 | 0 |
Gain of sale of subsidiary | 6,631 | 0 | 0 |
Total other income (expenses) | 23,494 | 11,291 | -14,928 |
Income before income taxes and equity in earnings of unconsolidated subsidiaries | 471,933 | 367,046 | 196,857 |
Provision for income taxes | 53,686 | 98,019 | 21,292 |
Income before equity in earnings of unconsolidated subsidiaries | 418,247 | 269,027 | 175,565 |
Equity in earnings of unconsolidated subsidiary – related party | 28,351 | 11,566 | 9,295 |
Net income | 446,598 | 280,593 | 184,860 |
Net loss (income) attributable to non-controlling interests and redeemable non-controlling interests of subsidiaries | 416 | 1,633 | -6,873 |
Net income attributable to AmTrust Financial Services, Inc. | 447,014 | 282,226 | 177,987 |
Dividends on preference stock | -12,738 | -3,989 | 0 |
Net income attributable to AmTrust common shareholders | 434,276 | 278,237 | 177,987 |
Earnings per common share: | |||
Basic earnings per share (in dollars per share) | $5.78 | $3.75 | $2.42 |
Diluted earnings per share (in dollars per share) | $5.45 | $3.56 | $2.34 |
Dividends declared per common share (in dollars per share) | $0.85 | $0.56 | $0.39 |
Weighted average common shares outstanding - Basic (in shares) | 74,933 | 74,163 | 73,269 |
Weighted average common shares outstanding - Diluted (in shares) | 79,517 | 77,984 | 75,620 |
Net realized gain on investments: | |||
Total other-than-temporary impairment losses | -8,039 | -2,869 | -2,965 |
Portion of loss recognized in other comprehensive income | 0 | 0 | 0 |
Net impairment losses recognized in earnings | -8,039 | -2,869 | -2,965 |
Other net realized gain on investments | 24,462 | 18,396 | 11,946 |
Net realized investment gain | $16,423 | $15,527 | $8,981 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Income (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Service, fee and other revenues | $409,743 | $331,559 | $172,174 |
Interest income | 2,601 | 0 | 0 |
Related Party Transactions | |||
Service, fee and other revenues | 58,428 | 51,545 | 29,041 |
Ceding commission earned | $405,071 | $276,556 | $196,982 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statement of Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $446,598 | $280,593 | $184,860 |
Other comprehensive income, net of tax: | |||
Foreign currency translation adjustments | -17,358 | 12,943 | 6,730 |
Change in fair value of interest rate swap | 664 | 1,028 | -733 |
Minimum pension liability | -1,055 | -1,738 | 0 |
Unrealized gains on securities: | |||
Unrealized holding gain (loss) arising during period | 86,954 | -90,286 | 63,917 |
Reclassification adjustment for gain (loss) included in net income | -4,918 | 5,658 | 4,316 |
Other comprehensive income (loss), net of tax | 64,287 | -72,395 | 74,230 |
Comprehensive income | 510,885 | 208,198 | 259,090 |
Less: Comprehensive income (loss) attributable to non-controlling and redeemable non-controlling interest | -416 | -1,633 | 6,873 |
Comprehensive income attributable to AmTrust Financial Services, Inc. | $511,301 | $209,831 | $252,217 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common stock | Preferred stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | Common stock | Common stock | Common stock | Common stock | Preferred stock | Preferred stock | Preferred stock | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | 2.75% Convertible senior notes due 2044 (the 2044 Notes) |
In Thousands, unless otherwise specified | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Additional Paid-in Capital | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | |||||||||||
Additional Paid-in Capital | Additional Paid-in Capital | ||||||||||||||||||
Beginning balance at Dec. 31, 2011 | $890,563 | $849 | $582,321 | ($300,365) | ($9,999) | $617,757 | $69,098 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 184,860 | 184,860 | |||||||||||||||||
Foreign currency translation, net of tax | 6,730 | 6,730 | |||||||||||||||||
Change in fair value of derivatives, net of tax | -733 | -733 | |||||||||||||||||
Minimum pension liability, net of tax | 0 | ||||||||||||||||||
Unrealized holding loss on investments, net of tax | 63,917 | 63,917 | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | 4,316 | 4,316 | |||||||||||||||||
Non-controlling interest in subsidiaries | -6,873 | -6,873 | 6,873 | ||||||||||||||||
Acquisition of non-controlling interest in subsidiary | 6,900 | 6,900 | -6,900 | ||||||||||||||||
Equity component of 5.5% convertible senior notes, net of income taxes and issues costs | 3,306 | 3,306 | |||||||||||||||||
Issuance of restricted stock | 0 | -2,378 | 2,378 | ||||||||||||||||
Stock option compensation | 7,172 | 7,172 | |||||||||||||||||
Exercise of stock options, other | 8,873 | 2 | 4,675 | 4,196 | |||||||||||||||
Share dividend | 61 | 159,109 | -159,170 | ||||||||||||||||
Common stock dividend | -24,910 | -24,910 | |||||||||||||||||
Capital contributions to subsidiaries | 34,273 | ||||||||||||||||||
Ending balance at Dec. 31, 2012 | 1,144,121 | 912 | 761,105 | -293,791 | 64,231 | 611,664 | 103,344 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 280,593 | 280,593 | |||||||||||||||||
Foreign currency translation, net of tax | 12,943 | 12,943 | |||||||||||||||||
Change in fair value of derivatives, net of tax | 1,028 | 1,028 | |||||||||||||||||
Minimum pension liability, net of tax | -1,738 | -1,738 | |||||||||||||||||
Unrealized holding loss on investments, net of tax | -90,286 | -90,286 | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | 5,658 | 5,658 | |||||||||||||||||
Non-controlling interest in subsidiaries | 1,633 | 1,633 | -1,633 | ||||||||||||||||
Equity component of 5.5% convertible senior notes, net of income taxes and issues costs | -3,989 | -3,989 | |||||||||||||||||
Stock issued during the period | 115,000 | 472 | 251 | 221 | 111,130 | -3,870 | |||||||||||||
Issuance of restricted stock | 0 | -1,902 | 1,902 | ||||||||||||||||
Stock option compensation | 11,186 | 11,186 | |||||||||||||||||
Exercise of stock options, other | 8,062 | 2 | 1,283 | 6,777 | |||||||||||||||
Share dividend | 0 | 66 | 265,031 | -265,097 | |||||||||||||||
Common stock dividend | -39,808 | -39,808 | |||||||||||||||||
Capital contributions to subsidiaries | 36,149 | ||||||||||||||||||
Ending balance at Dec. 31, 2013 | 1,441,005 | 980 | 115,000 | 1,033,084 | -284,891 | -8,164 | 584,996 | 137,860 | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Net income | 446,598 | 446,598 | |||||||||||||||||
Foreign currency translation, net of tax | -17,358 | -17,358 | |||||||||||||||||
Change in fair value of derivatives, net of tax | 664 | 664 | |||||||||||||||||
Minimum pension liability, net of tax | -1,055 | 1,055 | |||||||||||||||||
Unrealized holding loss on investments, net of tax | 86,954 | 86,954 | |||||||||||||||||
Reclassification adjustment for securities sold during the year, net of tax | -4,918 | -4,918 | |||||||||||||||||
Non-controlling interest in subsidiaries | 910 | 910 | -910 | ||||||||||||||||
Common share repurchase | -59,155 | -59,154 | |||||||||||||||||
Equity component of 5.5% convertible senior notes, net of income taxes and issues costs | -19,011 | -19,011 | 33,624 | 33,624 | |||||||||||||||
Stock issued during the period | -33,409 | 33,409 | 178,641 | 185,000 | -6,359 | ||||||||||||||
Issuance of restricted stock | 0 | -6,444 | 6,444 | ||||||||||||||||
Stock option compensation | 19,114 | 19,114 | |||||||||||||||||
Exercise of stock options, other | 8,776 | 0 | 2,170 | 6,606 | |||||||||||||||
Distribution of redeemable non-controlling interest | -494 | -494 | |||||||||||||||||
Preferred stock dividend | -12,738 | -12,738 | |||||||||||||||||
Common stock dividend | -64,538 | -64,538 | |||||||||||||||||
Capital contributions to subsidiaries | 25,359 | ||||||||||||||||||
Foreign currency translation | -3,128 | ||||||||||||||||||
Ending balance at Dec. 31, 2014 | $2,037,020 | $980 | $300,000 | $1,022,769 | ($297,586) | $56,123 | $954,734 | $159,181 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $446,598 | $280,593 | $184,860 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 63,093 | 53,118 | 28,602 |
Net amortization of bond premium or discount | 15,395 | 18,925 | 3,905 |
Equity earnings on investment in unconsolidated subsidiaries | -28,351 | -11,566 | -9,295 |
Gain on investment in life settlement contracts, net | -12,306 | -3,800 | -13,822 |
Realized gain on marketable securities | -24,463 | -18,396 | -11,946 |
Non-cash write-down of marketable securities | 8,039 | 2,869 | 2,965 |
Non-cash write-down of goodwill | 62,898 | 10,226 | 16,389 |
Discount on notes payable | 3,095 | 3,000 | 2,936 |
Stock based compensation | 19,114 | 11,186 | 7,172 |
Loss on extinguishment of debt | 9,831 | 0 | 0 |
Bad debt expense | 24,294 | 24,334 | 11,348 |
Foreign currency (gain) loss | -60,245 | 6,533 | 242 |
Gain on sale of subsidiary | -6,631 | 0 | 0 |
Acquisition gain | 0 | -48,715 | 0 |
Dividend received from equity investment | 0 | 12,203 | 0 |
Changes in assets - (increase) decrease: | |||
Premiums and notes receivable | -251,544 | -189,503 | -329,618 |
Reinsurance recoverable | -503,926 | -547,578 | -219,826 |
Deferred policy acquisition costs, net | -159,979 | -97,561 | -68,135 |
Prepaid reinsurance premiums | -291,544 | -133,787 | -167,747 |
Prepaid expenses and other assets | -123,621 | -310,177 | -83,692 |
Changes in liabilities - increase (decrease): | |||
Reinsurance premium payable | 48,656 | 87,520 | 190,814 |
Loss and loss expense reserves | 1,219,993 | 1,177,625 | 547,225 |
Unearned premiums | 706,976 | 586,219 | 380,738 |
Funds held under reinsurance treaties | -10,397 | -6,372 | -15,303 |
Accrued expenses and other current liabilities | 75,585 | -13,071 | 67,350 |
Deferred tax liability | -75,024 | 21,623 | 6,293 |
Net cash provided by operating activities | 1,155,536 | 915,448 | 531,455 |
Cash flows from investing activities: | |||
Purchases of fixed maturities, available-for-sale | -2,425,101 | -2,473,116 | -1,466,424 |
Purchases of equity securities, available-for-sale | -293,554 | -41,374 | -30,468 |
Purchases of equity securities, trading | -84,493 | ||
Purchases of other investments | -20,207 | -17,228 | -1,884 |
Sales of fixed maturities, available-for-sale | 1,749,897 | 1,612,580 | 905,697 |
Sales of equity securities, available-for-sale | 238,369 | 68,585 | 47,491 |
Sales of equity securities, trading | 78,974 | ||
Sales of other investments | 17,854 | 6,102 | 5,717 |
Net sales (purchases) of short term investments | 50,286 | 9,550 | 118,283 |
Acquisition of and capitalized premiums for life settlement contracts | -25,419 | -51,070 | -51,031 |
Receipt of life settlement contract proceeds | 10,035 | 20,054 | 10,074 |
Loan to ACP Re | -125,000 | ||
Acquisition of reinsurance entities, net of cash obtained | 0 | 17,811 | 15,473 |
Acquisition of subsidiaries, net of cash obtained | -80,736 | -20,182 | -63,855 |
Sale of subsidiary | 20,059 | ||
Increase in restricted cash and cash equivalents | -85,786 | -21,677 | -55,658 |
Purchase of property and equipment | -77,172 | -39,586 | -27,388 |
Net cash used in investing activities | -1,051,994 | -929,551 | -593,973 |
Cash flows from financing activities: | |||
Preferred share issuance, net | 220,000 | 0 | 0 |
Revolving credit facility payments | -100,000 | 0 | 0 |
Repurchase agreements, net | -293,222 | 58,311 | 43,193 |
Secured loan agreement borrowings | 30,500 | 0 | 0 |
Secured loan agreement payments | -3,009 | -1,299 | -1,021 |
Promissory note borrowings | 0 | 0 | 13,000 |
Promissory note payments | -10,695 | 0 | -12,500 |
Senior notes proceeds | 0 | 250,000 | 0 |
Convertible senior notes proceeds | 68,400 | 0 | 25,000 |
Financing fees | -5,188 | -2,740 | -2,180 |
Common share (repurchase) issuance | -59,155 | 472 | 0 |
Preferred share issuance, net | 178,641 | 111,130 | 0 |
Non-controlling interest capital contributions to consolidated subsidiaries | 18,223 | 36,149 | 22,607 |
Stock option exercise and other | 8,776 | 8,062 | 8,873 |
Dividends distributed on common stock | -55,599 | -29,236 | -30,201 |
Dividends distributed on preference stock | -12,738 | -3,989 | 0 |
Net cash (used in) provided by financing activities | -15,066 | 426,860 | 66,771 |
Effect of exchange rate changes on cash | -15,748 | 2,895 | 3,270 |
Net increase in cash and cash equivalents | 72,728 | 415,652 | 7,523 |
Cash and cash equivalents, beginning year | 830,022 | 414,370 | 406,847 |
Cash and cash equivalents, end of year | 902,750 | 830,022 | 414,370 |
Supplemental Cash Flow Information | |||
Interest payments on debt | 85,619 | 65,652 | 8,414 |
Income tax payments | $36,679 | $20,768 | $20,435 |
Nature_of_Operations
Nature of Operations | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Nature of Operations | Nature of Operations | ||||
AmTrust Financial Services, Inc. (the “Company”) is an insurance holding company formed under the laws of Delaware. Through its wholly-owned subsidiaries, the Company provides specialty property and casualty insurance focusing on workers’ compensation and commercial package coverage for small business, specialty risk and extended warranty coverage, and property and casualty coverage for middle market business. The Company also provides reinsurance, primarily on personal and commercial automotive business. | |||||
The Company transacts business primarily through fifteen insurance company subsidiaries domiciled in the United States and five insurance subsidiaries domiciled outside the United States. The Company's fifteen domestic insurance subsidiaries are: | |||||
Company | Abbreviation | Domiciled in | |||
AmTrust Insurance Company of Kansas, Inc. | AICK | Kansas | |||
Associated Industries Insurance Company, Inc. | AIIC | Florida | |||
AmTrust Lloyd's Insurance Company of Texas | ALIC | Texas | |||
Comp Options Insurance Company | COIC | Florida | |||
Developers Surety and Indemnity Company | DSIC | Iowa | |||
First Atlantic Title Insurance Corp. | FATIC | New York | |||
First Nonprofit Insurance Company | FNIC | Delaware | |||
Indemnity Company of California | ICC | California | |||
Milwaukee Casualty Insurance Company | MCIC | Wisconsin | |||
Rochdale Insurance Company | RIC | New York | |||
Sequoia Insurance Company | SIC | California | |||
Sequoia Indemnity Company | SID | Nevada | |||
Security National Insurance Company | SNIC | Delaware | |||
Technology Insurance Company, Inc. | TIC | New Hampshire | |||
Wesco Insurance Company | WIC | Delaware | |||
The Company's five primary foreign insurance subsidiaries are: | |||||
Company | Abbreviation | Domiciled in | |||
AmTrust International Insurance Ltd. | AII | Bermuda | |||
AmTrust International Underwriters Limited | AIU | Ireland | |||
AmTrust Europe, Ltd. | AEL | England | |||
Motors Insurance Company Ltd. | MIC | England | |||
AmTrust at Lloyd's (Syndicate 1206) | ATL | England |
Significant_Accounting_Polices
Significant Accounting Polices | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Significant Accounting Policies | Significant Accounting Policies | ||
Basis of Reporting — The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of the Company and its domestic and foreign subsidiaries. The Company uses the equity method of accounting for its investment in National General Holding Corp. (“NGHC”) in which it owns a 13.2% ownership interest. All significant intercompany transactions and accounts have been eliminated in the consolidated financial statements. | |||
Premiums — Insurance premiums, except for certain specialty risk and extended warranty programs, are recognized as earned on the straight-line basis over the contract period. Insurance premiums on specialty risk and extended warranty programs are earned based on an estimated program coverage period. These estimates are based on the expected distribution of coverage periods by contract at inception, and because a single contract may contain multiple coverage period options, these estimates are revised based on the actual coverage period selected by the insured. Unearned premiums represent the portion of premiums written which is applicable to the unexpired term of the contract or policy in force. Premium adjustments on contracts and audit premiums are based on estimates made over the contract period. Premiums earned but not yet billed to insureds are estimated and accrued, net of related costs. These estimates are subject to the effects of trends in payroll audit adjustments. Although considerable variability is inherent in such estimates, management believes that the accrual for earned but unbilled premiums is reasonable. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations. The Company historically has used a percentage of premium for establishing its allowance for doubtful accounts. The Company reviews its bad debt write-offs at least annually and adjusts its premium percentage as required. Allowance for doubtful accounts were approximately $45,024 and $32,132 at December 31, 2014 and 2013, respectively. | |||
Loss and Loss Adjustment Expenses — Loss and loss adjustment expenses (“LAE”) represent the estimated ultimate net costs of all reported and unreported losses incurred through December 31, 2014. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analysis and are not discounted. Although considerable variability is inherent in the estimates of reserves for losses and LAE, management believes that the reserves for losses and LAE are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Such adjustments are included in current operations. | |||
Investments — The Company accounts for its investments in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320 Investments — Debt and Equity Securities, which requires that fixed-maturity and equity securities that have readily determined fair values be segregated into categories based upon the Company’s intention for those securities. In accordance with ASC 320, the Company has classified its fixed-maturities and certain equity securities as available-for-sale. The Company may sell its available-for-sale securities in response to changes in interest rates, risk/reward characteristics, liquidity needs or other factors. Available for sale fixed-maturity securities and equity securities are reported at their estimated fair values based on quoted market prices or a recognized pricing service, with unrealized gains and losses, net of tax effects, reported as a separate component of comprehensive income in stockholders’ equity. Additionally, the Company classified certain equity securities as trading securities. Unrealized gains and losses on trading securities are reported within realized gains and losses. Realized gains and losses are determined on the specific identification method. | |||
Quarterly, the Company’s Investment Committee (“Committee”) evaluates each security that has an unrealized loss as of the end of the subject reporting period for other-than-temporary-impairment (“OTTI”). The Company generally considers an investment to be impaired when it has been in a significant unrealized loss position (in excess of 35% of cost if the issuer has a market capitalization of under $1 billion and in excess of 25% of cost if the issuer has a market capitalization of $1 billion or more) for over 24 months. In addition, the Committee uses a set of quantitative and qualitative criteria to review the Company's investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The criteria the Committee primarily considers include: | |||
• | the current fair value compared to amortized cost; | ||
• | the length of time the security’s fair value has been below its amortized cost; | ||
• | specific credit issues related to the issuer such as changes in credit rating, reduction or elimination of dividends or non-payment of scheduled interest payments; | ||
• | whether management intends to sell the security and, if not, whether it is not more than likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; | ||
• | the financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings; | ||
• | the occurrence of a discrete credit event resulting in the issuer defaulting on material outstanding obligations or the issuer seeking protection under bankruptcy laws; and | ||
• | other items, including company management, media exposure, sponsors, marketing and advertising agreements, debt restructuring, regulatory changes, acquisitions and dispositions, pending litigation, distribution agreements and general industry trends. | ||
Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company writes down investments immediately that it considers to be impaired based on the above criteria collectively. | |||
Based on guidance in FASB ASC 320-10-65, in the event of the decline in fair value of a debt security, a holder of that security that does not intend to sell the debt security and for whom it is not more than likely than not that such holder will be required to sell the debt security before recovery of its amortized cost basis, is required to separate the decline in fair value into (a) the amount representing the credit loss and (b) the amount related to other factors. The amount of total decline in fair value related to the credit loss shall be recognized in earnings as an OTTI with the amount related to other factors recognized in accumulated other comprehensive loss net loss, net of tax. OTTI credit losses result in a permanent reduction of the cost basis of the underlying investment. The determination of OTTI is a subjective process, and different judgments and assumptions could affect the timing of the loss realization. | |||
In 2014, the Company also classified certain of its equity securities as trading securities. Equity securities classified as trading securities are generally held for resale in anticipation of short-term market movement. Trading securities are stated at estimated fair market value. Gains and losses, both realized and unrealized, are included in the net realized gain or loss on investment on the Consolidated Statements of Income. | |||
The Company has the following types of investments: | |||
(a) | Short-term investments — Short term investments are carried at cost, which approximates fair value, and include investments with maturities between 91 days and less than 1 year at date of acquisition. As of December 31, 2014 and 2013, short term investments consisted primarily of money market investments. | ||
(b) | Fixed maturities and equity securities, available-for-sale — Fixed maturities and equity securities (common stocks, mutual funds and non-redeemable preferred stock) are classified as available-for-sale and carried at fair value. Unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income. | ||
(c) | Equity securities, trading — Equity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. | ||
(d) | Mortgage and asset backed securities — For mortgage and asset backed securities, the Company recognizes income using the retrospective adjustment method based on prepayments and the estimated economic life of the securities. The effective yield reflects actual payments to date plus anticipated future payments. | ||
(e) | Limited partnerships — The Company uses the equity method of accounting for investments in limited partnerships in which its ownership interest of the limited partnership enables the Company to influence the operating or financial decisions of the investee company, but the Company’s interest in the limited partnership does not require consolidation. The Company’s proportionate share of equity in net income of these unconsolidated affiliates is reported in net investment income. | ||
(f) | Derivatives and hedging activities — The Company from time to time invests in a limited amount of derivatives and other financial instruments as part of its investment portfolio. Derivatives are financial arrangements among two or more parties with returns linked to an underlying equity, debt, commodity, asset, liability, foreign exchange rate or other index. Unless subject to a scope exclusion, the Company carries all derivatives on the consolidated balance sheet at fair value. For derivatives that do not qualify for hedge accounting, the changes in fair value of the derivative are presented as a component of operating income. The Company primarily utilizes interest rate swaps, which are valued in terms of the contract between the Company and the issuer of the swaps, are based on the difference between the stated floating rate of the underlying indebtedness, and a predetermined fixed rate for such indebtedness with the result that the indebtedness carries a net fixed interest rate. | ||
(g) | Securities sold under agreements to repurchase, at contract value — The Company from time to time invests in securities sold under agreements to repurchase, which are accounted for as collateralized borrowing transactions and are recorded at their contracted repurchase amounts, plus accrued interest. The Company minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring exposure and collateral value and generally requiring additional collateral to be deposited with the Company when necessary. | ||
Net investment income consists primarily of interest and dividends less expenses. Interest on fixed maturities, adjusted for any amortization of premium or discount, is recorded as income when earned. Investment expenses are accrued as incurred. Realized investment gains or losses are computed using the specific costs of securities sold, and, if applicable, include write-downs on investments having other-than-temporary declines in value. | |||
Fair Value of Financial Instruments — The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820 Fair Value Measurements and Disclosures. The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the ASC 820 hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. Additionally, valuation of fixed maturity investments is more subjective when markets are less liquid due to lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction could occur. Fair values of other financial instruments approximate their carrying values. | |||
For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from nationally recognized third-party pricing services (“pricing service”). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value. This pricing method is used, primarily, for fixed maturities. The fair value estimates provided by the pricing service are included in the Level 2 hierarchy. If the Company determines that the fair value estimate provided by the pricing service does not represent fair value or if quoted market prices and an estimate from pricing services are unavailable, the Company produces an estimate of fair value based on dealer quotations of the bid price for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. Depending on the level of observable inputs, the Company will then determine if the estimate is Level 2 or Level 3 hierarchy. | |||
Fixed Maturities. The Company utilizes a pricing service to estimate fair value measurements for all of its fixed maturities. The pricing service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. The pricing service utilized by the Company has indicated it will produce an estimate of fair value only if there is verifiable information to produce a valuation. As the fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes, the estimates of fair value other than U.S. Treasury securities are included in Level 2 of the hierarchy. U.S. Treasury securities are included in the amount disclosed in Level 1 as the estimates are based on unadjusted prices. The Company’s Level 2 investments include obligations of U.S. government agencies, municipal bonds, corporate debt securities and other mortgage backed securities. | |||
Equity Securities. The Company utilizes a pricing service to estimate the fair value of the majority of its available-for-sale and trading equity securities. The pricing service utilizes market quotations for equity securities that have quoted market prices in active markets and their respective quoted prices are provided as fair value. The Company classifies the values of these equity securities as Level 1. The pricing service also provides fair value estimates for certain equity securities whose fair value is based on observable market information rather than market quotes. The Company classifies the value of these equity securities as Level 2. The Company also holds certain equity securities that are issued by privately-held entities or direct equity investments that do not have an active market. The Company estimates the fair value of these securities primarily based on inputs such as third party broker quotes, issuers' book value, market multiples, and other inputs. These equity securities are classified as Level 3 due to significant unobservable inputs used in the valuation. | |||
Other Investments. Other investments consisted primarily of investments in limited partnerships, an interest in syndicated term loan, and annuities. Other investments accounted for approximately 0.6% of the Company's investment portfolio as of December 31, 2014. The Company estimates the fair value of other investments based on significant unobservable inputs in the valuation process. As a result, the Company classified the fair value estimates as Level 3 in the financial hierarchy. The Company has determined that its investments in Level 3 securities are not material to its financial position or results of operations. | |||
Derivatives. The Company estimates fair value using information provided by a pricing service for interest rate swaps and classifies derivatives as Level 2 hierarchy. | |||
Investment in Life Settlements — When the Company becomes the owner of a life insurance policy either by direct purchase or following a default on a premium finance loan, the life insurance premium for such policy is accounted for as an investment in life settlements. Investments in life settlements are accounted for in accordance with ASC 325-30, Investments in Insurance Contracts, which states that an investor shall elect to account for its investments in life settlement contracts using either the investment method or the fair value method. The election is made on an instrument-by-instrument basis and is irrevocable. The Company has elected to account for these investments using the fair value method. Fair value of the investment in policies is determined using unobservable Level 3 inputs and is calculated by performing a net present value calculation of the face amount of the life policies less premiums for the total portfolio. The unobservable Level 3 inputs use new or updated information that affects the Company's assumptions about remaining life expectancy, credit worthiness of the policy issuer, funds needed to maintain the asset until maturity, and discount rates. | |||
Life Settlement Profit Commission — Investments in life settlements are accounted for in accordance with ASC 325-30, Investments in Insurance Contracts, and the Company has elected to account for its investment in life settlements using the fair value method. The Company retains a third party service provider to perform certain administration functions to effectively manage the life settlement contracts held by Tiger Capital, LLC and AMT Capital Holdings II S.A. and a portion of their fee is contingent on the overall profitability of the life settlement contracts. The Company accrues the related profit commission on life settlements at fair value, in relation to life settlements purchased prior to December 31, 2010. This profit commission is calculated based on the discounted anticipated cash flows and the provisions of the underlying contract. In addition, the Company accrues a best estimate in relation to profit commission due on certain life settlement contracts acquired subsequent to December 31, 2010 as no contractual relationship currently exists. | |||
Warranty Fee Revenue — The Company promotes and markets extended service plans (“ESP”) to consumers through retailers and certain other marketing organizations usually with terms of coverage ranging from one to three years, commencing at the expiration of the manufacturers’ warranty, if applicable. The Company generally insures the obligations under ESPs through contractual liability insurance issued by one of its insurance company subsidiaries. Under the terms of service agreements with various retailers, the Company provides for marketing and administrative services related to ESP. These agreements are generally for one-year terms and can be canceled by either party with thirty days advance notice. The Company recognizes revenue related to promotion, marketing and administration services at the time of the sale of ESP. However, the Company defers a portion of service revenue based upon an estimate of administrative services to be provided in future periods. | |||
Deferred Policy Acquisition Costs — The Company defers commission expenses, premium taxes and assessments as well as underwriting and safety costs that vary with and are primarily related to the successful acquisition of insurance policies. These acquisition costs are capitalized and charged to expense ratably as premiums are earned. The Company may realize deferred policy acquisition costs only if the ratio of loss and loss adjustment expense reserves (calculated on a discounted basis) to the premiums to be earned is less than 100%, as it historically has been. If, hypothetically, that ratio were to be above 100%, the Company could not continue to record deferred policy acquisition costs as an asset and may be required to establish a liability for a premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency relating to short duration contracts exists. The change in net deferred acquisition costs was $159,979, $97,561 and $68,135 for the years ended December 31, 2014, 2013 and 2012, respectively. The amortization for deferred acquisition costs was approximately $538,710, $367,288, and $242,887 in 2014, 2013 and 2012, respectively. | |||
Reinsurance — Reinsurance premiums, losses and LAE ceded to other companies are accounted for on a basis consistent with those used in accounting for the original policies issued and pursuant to the terms of the reinsurance contracts. The Company records premiums earned and losses and LAE incurred and ceded to other companies as reductions of premium revenue and losses and LAE. The Company accounts for commissions allowed by reinsurers on business ceded as ceding commission, which is a reduction of acquisition of costs and other underwriting expenses. The Company earns commissions on reinsurance premiums ceded in a manner consistent with the recognition of the earned premium on the underlying insurance policies, on a pro rata basis over the terms of the policies reinsured. Reinsurance recoverables relate to the portion of reserves and paid losses and LAE that are ceded to other companies. The Company remains contingently liable for all loss payments in the event of failure to collect from the reinsurer. | |||
Ceding Commissions on Reinsurance Transactions — Ceding commissions on reinsurance transactions are commissions the Company receives from ceding gross written premiums to third party reinsurers. In connection with the Maiden Quota Share, which is the Company's primary source of ceding commissions, the amount the Company receives is a blended rate based on a contractual formula contained in the individual reinsurance agreements, and the rate may not correlate specifically to the cost structure of the individual segments. The ceding commissions the Company receives cover a portion of its capitalized direct acquisition costs and a portion of other underwriting expenses. Ceding commissions received from reinsurance transactions that represent recovery of capitalized direct acquisition costs are recorded as a reduction of capitalized unamortized deferred acquisition costs and the net amount is charged to expense in proportion to net premium revenue recognized. Ceding commissions received from reinsurance transactions that represent the recovery of other underwriting expenses are recognized in the income statement over the insurance contract period in proportion to the insurance protection provided and classified as a reduction of acquisition costs and other underwriting expenses. Ceding commissions received, but not yet earned, that represent the recovery of other underwriting expenses are classified as a component of accrued expenses and other current liabilities. The Company allocates earned ceding commissions to its segments based on each segment’s proportionate share of total acquisition costs and other underwriting expenses recognized during the period. | |||
Assessments — Insurance related assessments are accrued in the period in which they have been incurred. A typical obligating event would be the issuance of an insurance policy or the occurrence of a claim. The Company is subject to a variety of assessments, such as assessments by state guaranty funds and workers’ compensation second injury funds. State guaranty funds assessments are used by state insurance regulators to cover losses of policyholders of insolvent insurance companies and for the operating expenses of such agencies. The Company uses estimated assessment rates in determining the appropriate assessment expense and accrual. The Company uses estimates derived from state regulators and/or National Association of Insurance Commissioners (“NAIC”) Tax and Assessments Guidelines. Assessment expense for the years ended December 31, 2014, 2013 and 2012 was approximately $23,205, $33,772 and $39,546, respectively. | |||
Business Combinations — The Company accounts for business combinations under the acquisition method of accounting, which requires the Company to record assets acquired, liabilities assumed and any non-controlling interest in the acquiree at their respective fair values as of the acquisition date in the Company's consolidated financial statements. The Company accounts for the insurance and reinsurance contracts under the acquisition method as new contracts, which requires the Company to record assets and liabilities at fair value. The Company adjusts the fair value loss and LAE reserves by recording the acquired loss reserves based on the Company’s existing accounting policies and then discounting them based on expected reserve payout patterns using a current risk-free rate of interest. This risk free interest rate is then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company’s best estimate of the fair value of such reserves at the acquisition date is recorded either an an intangible asset or another liability, as applicable, and amortized proportionately to the decrease in the acquired loss and LAE reserves over the payout period for the acquired loss and LAE reserves. The Company records contingent consideration at fair value based on the terms of the purchase agreement with subsequent changes in fair value recorded through earnings. The determination of fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the Company records the excess of the purchase price over the fair value of the acquired net assets, where applicable, as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. The Company expenses costs associated with the acquisition of a business in the period incurred. The Company includes the results of operations of an acquired business in its consolidated financial statements from the date of the acquisition. | |||
Goodwill and Intangible Assets — The Company accounts for goodwill and intangible assets in accordance with ASC 350 Intangibles — Goodwill and Other. Upon the completion of an acquisition, the Company completes purchase price accounting in accordance with ASC 805, Business Combinations, which requires an acquirer to assign values to the acquired assets and liabilities based on their fair value. In the event that a purchase price paid is in excess of the net assets acquired, any unidentified excess is deemed to be goodwill. Goodwill is not amortized. Additionally as a result of an acquisition, the Company may obtain identifiable intangible assets. Indefinite lived intangible assets are not amortized. Intangible assets with a finite life are amortized over the estimated useful life of the asset. Intangible assets with an indefinite useful life are not amortized. Goodwill and intangible assets with an indefinite useful life are tested for impairment on an annual basis or more frequently if changes in circumstances indicate that the carrying amount may not be recoverable. If the goodwill or intangible asset is impaired, it is written down to its realizable value with a corresponding expense reflected in the consolidated statement of operations. The Company tests for impairment of goodwill at the reporting unit level. The Company generally combines reporting units, which are a component of an operating segment when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment. The Company had seven reporting units as of December 31, 2014. | |||
Property and Equipment — Property and equipment are recorded at cost. Maintenance and repairs are charged to operations as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: | |||
Building | 40 years | ||
Equipment | 5 to 7 years | ||
Computer equipment and software | 3 to 20 years (primarily 3 years) | ||
Leasehold improvements | Lesser of lease term or 15 years | ||
The Company accounts for its internal use software under ASC 350 Intangibles — Goodwill and Other. Accordingly, the Company capitalizes costs of computer software developed or obtained for internal use that is specifically identifiable, has determinable lives and relates to future use. | |||
Equalization reserves — The Company owns several Luxembourg-domiciled reinsurance entities. In connection with these entities, the Company acquires cash and equalization reserves of the reinsurance companies. An equalization reserve is a catastrophe reserve established in excess of required reserves as established by the laws of Luxembourg. The equalization reserves were originally established by the seller of the reinsurance entities, and under Luxembourg law allowed the reinsurance company to reduce its income tax paid. | |||
Income Taxes — The Company files a consolidated United States ("US") income tax return for its eligible domestic subsidiaries. The Company's non-domestic subsidiaries file income tax returns in their respective local jurisdictions. As part of the US consolidated income tax return filing, the Company is party to federal income tax allocation agreements amongst the includible entities. Under the tax allocation agreements, the Company pays to or receives from its subsidiaries the amount, if any, by which the group’s federal income tax liability was affected by virtue of inclusion of the subsidiary in the consolidated federal return. | |||
Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The deferred tax asset primarily consists of book versus tax differences for premiums earned, loss and loss adjustment expense reserve discounting, policy acquisition costs, earned but unbilled premiums, and unrealized holding gains and losses on marketable equity securities. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income, primarily unrealized investment gains and losses, are recorded directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. | |||
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that the Company will generate future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. If necessary, the Company establishes a valuation allowance to reduce the deferred tax assets to the amounts that are more likely than not to be realized. | |||
The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by taxing authorities. The Company’s policy is to prospectively classify accrued interest and penalties related to any unrecognized tax benefits in its income tax provision. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. Primarily tax years 2009 through 2013 are still subject to examination. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. | |||
Pensions — The Company accounts for its pension plan by recognizing in its balance sheets the overfunded or underfunded status of defined benefit plans measured as the difference between the fair value of plan assets and the projected benefit obligation. The Company recognizes the change in the funded status of the plan in the year in which the change occurs through Accumulated Other Comprehensive Income. | |||
Foreign Currency — The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency and the resulting foreign exchange gains and losses are reflected in earnings. Functional currency amounts from the Company’s foreign operations are then translated into U.S. dollars. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of accumulated other changes in equity from nonowner sources. The foreign currency remeasurement and translation are calculated using current exchange rates for the items reported on the balance sheets and average exchange rates for items recorded in earnings. | |||
Stock Compensation Expense — The Company follows ASC 720 Compensation — Stock Compensation and recognizes compensation expense for its share-based payments based on the fair value of the awards. Share-based payments include restricted stock, restricted stock units, performance share units and stock option grants under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan. ASC 720 requires share-based compensation expense recognized to be based on estimated grant date fair value. | |||
Earnings Per Share — The Company accounts for earnings per share under the two-class method, as described in ASC 260, Earnings Per Share. Under the two-class method, earnings for the period are allocated between common stockholders and other stockholders based on their respective rights to receive dividends. Restricted stock awards granted to employees under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan are considered participating securities as they receive dividends on this stock. Additionally, the Company follows the treasury stock method related to its contingently convertible debt, as the Company has the ability to settle the conversion premium in either cash or stock. The Company had contingently convertible shares that were dilutive for the Company's earnings per share calculations in 2014 and 2013 and anti-dilutive in 2012. | |||
Treasury Stock — The Company accounts for the treasury stock at the repurchase price as a reduction to stockholders’ equity. | |||
Concentration and Credit Risk — Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and cash equivalents, investments and premium receivable. Investments are diversified through the types of investments, industry sectors and geographic regions. The Company limits the amount of credit exposure with any one financial institution and believes that no significant concentration of credit risk exists with respect to cash and investments. At December 31, 2014 and 2013, the outstanding premium receivable balance is generally diversified due to the number of entities composing the Company’s customer base. To reduce credit risk, the Company performs ongoing evaluations of its customers’ financial condition. The Company also has receivables from its reinsurers. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company periodically evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. It is the policy of management to review all outstanding receivables at period end as well as the bad debt write-offs experienced in the past and establish an allowance for doubtful accounts, if deemed necessary. | |||
Non-controlling Interest — The ownership interest in consolidated subsidiaries of non-controlling interests is reflected as non-controlling interest. The Company’s consolidation principles would also consolidate any entity in which the Company would be deemed a primary beneficiary. Non-controlling interest expense represents such non-controlling interests’ in the earnings of that entity. All significant transactions and account balances between the Company and its subsidiaries were eliminated during consolidation. | |||
Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with the recognition and amortization of deferred policy acquisition costs, the determination of fair value of invested assets and related impairments, and the determination of goodwill and intangible impairments require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements. | |||
Reclassifications — Certain accounts in the prior years’ consolidated financial statements have been reclassified for comparative purposes to conform to the current year’s presentation. | |||
Recent Accounting Literature | |||
In November 2014, the FASB issued Accounting Standards Update ("ASU") 2014-16, Derivative and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, which requires an entity (an issuer or an investor) of hybrid financial instruments to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The updated guidance is effective for the period ending March 15, 2016. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity. | |||
In June 2014, the FASB issued ASU 2014-11, Transfers and Serving (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which amends accounting for repurchase-to-maturity transactions and associated repurchase financing to secured borrowing. The revised guidance also requires expanded disclosure for certain transactions comprising (1) a transfer of a financial asset accounted for as a sale and (2) an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction, as well as expands disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The updated guidance is effective for the period ending March 31, 2015. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity. | |||
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, to clarify how entities should treat performance targets that can be met after the requisite service period of a share-based payment award. The ASU states that the share-based payment award should be treated as a performance condition that affects vesting and, therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. No new disclosures are required under this ASU. ASU 2014-12 is effective beginning after December 15, 2015. Early adoption is permitted. In addition, all entities will have the option of applying the guidance either prospectively (i.e., only to awards granted or modified on or after the effective date of the issue) or retrospectively. Retrospective application would only apply to awards with performance targets outstanding at or after the beginning of the first annual period presented (i.e., the earliest presented comparative period). The adoption of this guidance is not expected to have an impact on the Company's results of operations, financial condition or liquidity. | |||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company’s service and fee income will be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The updated guidance is effective for the quarter ending March 31, 2017. The Company is currently evaluating the impact this guidance will have on the Company's results of operations, financial position or liquidity. | |||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statement (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity, which provides revised guidance to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for the period ending March 31, 2015. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. | |||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on the presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carry-forward, a similar tax loss, or a tax credit carry-forward exists. Under the ASU, an entity must present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a NOL carry-forward, similar tax loss, or a tax credit carry-forward. There are two exceptions to this form of presentation as follows: | |||
• | To the extent a NOL carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position; and | ||
• | The entity does not intend to use the deferred tax asset for this purpose. | ||
If either of these conditions exists, an entity should present an unrecognized benefit in the financial statements as a liability and should net the unrecognizable tax benefit with a deferred tax asset. The amendments in this update were effective for fiscal years, and interim periods within those years, beginning after December 31, 2013. The adoption of this guidance did not have a material impact on the Company's results of operations, financial condition or liquidity. | |||
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, with the objective of resolving the diversity about whether ASC 810-10, Consolidation - Overall, or ASC 830-30, Foreign Currency Matters - Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in-substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. | |||
Under this guidance, when a reporting entity that is also the parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in ASC 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, for an equity method investment that is a foreign entity, the partial sale guidance in ASC 830-30-40 continues to be applicable. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Furthermore, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment); and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The update was adopted effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's results of operations, financial condition or liquidity. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||||||||
(a) Available-for-Sale Securities | |||||||||||||||||||||||||||||||
The amortized cost, estimated fair value and gross unrealized appreciation and depreciation of fixed and equity securities are presented in the tables below: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | Original or | Gross | Gross | Fair | |||||||||||||||||||||||||||
As of December 31, 2014 | Amortized | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||||||||
Preferred stock | $ | 3,349 | $ | 158 | $ | (1 | ) | $ | 3,506 | ||||||||||||||||||||||
Common stock | 80,726 | 4,673 | (7,861 | ) | 77,538 | ||||||||||||||||||||||||||
U.S. treasury securities | 42,416 | 1,558 | (104 | ) | 43,870 | ||||||||||||||||||||||||||
U.S. government agencies | 12,968 | 575 | (5 | ) | 13,538 | ||||||||||||||||||||||||||
Municipal bonds | 469,646 | 13,950 | (1,555 | ) | 482,041 | ||||||||||||||||||||||||||
Foreign government | 106,054 | 6,760 | (83 | ) | 112,731 | ||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 1,167,011 | 60,322 | (5,471 | ) | 1,221,862 | ||||||||||||||||||||||||||
Industrial | 1,187,818 | 38,317 | (23,275 | ) | 1,202,860 | ||||||||||||||||||||||||||
Utilities | 137,169 | 3,200 | (1,677 | ) | 138,692 | ||||||||||||||||||||||||||
Commercial mortgage backed securities | 36,964 | 1,890 | (169 | ) | 38,685 | ||||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 954,320 | 23,340 | (1,878 | ) | 975,782 | ||||||||||||||||||||||||||
Non-agency backed | 22,071 | 696 | (264 | ) | 22,503 | ||||||||||||||||||||||||||
Asset backed securities | 709 | 2 | (1 | ) | 710 | ||||||||||||||||||||||||||
$ | 4,221,221 | $ | 155,441 | $ | (42,344 | ) | $ | 4,334,318 | |||||||||||||||||||||||
(Amounts in Thousands) | Original or | Gross | Gross | Fair | |||||||||||||||||||||||||||
As of December 31, 2013 | Amortized | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||||||||
Preferred stock | $ | 1,498 | $ | 82 | $ | (74 | ) | $ | 1,506 | ||||||||||||||||||||||
Common stock | 14,512 | 1,156 | (2,026 | ) | 13,642 | ||||||||||||||||||||||||||
U.S. treasury securities | 158,915 | 1,196 | (851 | ) | 159,260 | ||||||||||||||||||||||||||
U.S. government agencies | 10,466 | 107 | (84 | ) | 10,489 | ||||||||||||||||||||||||||
Municipal bonds | 461,325 | 4,781 | (19,923 | ) | 446,183 | ||||||||||||||||||||||||||
Foreign government | 160,459 | 971 | (1,325 | ) | 160,105 | ||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 1,057,542 | 41,027 | (13,970 | ) | 1,084,599 | ||||||||||||||||||||||||||
Industrial | 768,161 | 7,695 | (21,439 | ) | 754,417 | ||||||||||||||||||||||||||
Utilities | 70,924 | 1,310 | (2,008 | ) | 70,226 | ||||||||||||||||||||||||||
Commercial mortgage backed securities | 28,970 | — | (404 | ) | 28,566 | ||||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 694,001 | 5,657 | (13,918 | ) | 685,740 | ||||||||||||||||||||||||||
Non-agency backed | 6,737 | 19 | (7 | ) | 6,749 | ||||||||||||||||||||||||||
Asset backed securities | 6,119 | 4 | (3 | ) | 6,120 | ||||||||||||||||||||||||||
$ | 3,439,629 | $ | 64,005 | $ | (76,032 | ) | $ | 3,427,602 | |||||||||||||||||||||||
Less: securities pledged | 316,576 | 506 | (5,564 | ) | 311,518 | ||||||||||||||||||||||||||
$ | 3,123,053 | $ | 63,499 | $ | (70,468 | ) | $ | 3,116,084 | |||||||||||||||||||||||
Investments in foreign government securities include securities issued by national entities as well as instruments that are unconditionally guaranteed by such entities. As of December 31, 2014, the Company's foreign government securities were issued or guaranteed primarily by governments in Canada and Europe. | |||||||||||||||||||||||||||||||
Proceeds from the sale of investments in available-for-sale securities during the years ended December 31, 2014, 2013 and 2012 were approximately $1,962,558, $1,681,165 and $953,188, respectively. | |||||||||||||||||||||||||||||||
A summary of the Company’s available-for-sale fixed securities as of December 31, 2014 and 2013, by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||
Due in one year or less | $ | 106,041 | $ | 105,839 | $ | 128,128 | $ | 128,214 | |||||||||||||||||||||||
Due after one through five years | 682,632 | 704,344 | 592,703 | 603,942 | |||||||||||||||||||||||||||
Due after five through ten years | 1,998,740 | 2,062,942 | 1,632,115 | 1,631,751 | |||||||||||||||||||||||||||
Due after ten years | 335,669 | 342,468 | 334,846 | 321,372 | |||||||||||||||||||||||||||
Mortgage and asset backed securities | 1,014,064 | 1,037,681 | 735,827 | 727,175 | |||||||||||||||||||||||||||
Total fixed maturities | $ | 4,137,146 | $ | 4,253,274 | $ | 3,423,619 | $ | 3,412,454 | |||||||||||||||||||||||
OTTI charges of our fixed-maturities and equity securities for the years ended December 31, 2014, 2013 and 2012 are presented in the table below: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Equity securities recognized in earnings | $ | 2,646 | $ | 2,869 | $ | 2,965 | |||||||||||||||||||||||||
Fixed maturity securities recognized in earnings | 5,393 | — | — | ||||||||||||||||||||||||||||
$ | 8,039 | $ | 2,869 | $ | 2,965 | ||||||||||||||||||||||||||
The tables below summarize the gross unrealized losses of our fixed maturity and equity securities by length of time the security has continuously been in an unrealized loss position as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Fair | Unrealized | No. of | Fair | Unrealized | No. of | Fair | Unrealized | |||||||||||||||||||||||
31-Dec-14 | Market | Losses | Positions | Market | Losses | Positions | Market | Losses | |||||||||||||||||||||||
Value | Held | Value | Held | Value | |||||||||||||||||||||||||||
Common and preferred stock | $ | 38,970 | $ | (7,764 | ) | 21 | $ | 400 | $ | (98 | ) | 2 | $ | 39,370 | $ | (7,862 | ) | ||||||||||||||
U.S. treasury securities | 1,030 | (54 | ) | 7 | 3,219 | (50 | ) | 9 | 4,249 | (104 | ) | ||||||||||||||||||||
U.S. government agencies | 1,736 | (3 | ) | 3 | 222 | (2 | ) | 4 | 1,958 | (5 | ) | ||||||||||||||||||||
Municipal bonds | 24,695 | (240 | ) | 64 | 93,201 | (1,315 | ) | 98 | 117,896 | (1,555 | ) | ||||||||||||||||||||
Foreign government | 7,644 | (83 | ) | 4 | — | — | — | 7,644 | (83 | ) | |||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 192,520 | (4,297 | ) | 143 | 66,715 | (1,174 | ) | 27 | 259,235 | (5,471 | ) | ||||||||||||||||||||
Industrial | 236,845 | (17,230 | ) | 194 | 60,511 | (6,045 | ) | 43 | 297,356 | (23,275 | ) | ||||||||||||||||||||
Utilities | 12,188 | (490 | ) | 22 | 13,908 | (1,187 | ) | 3 | 26,096 | (1,677 | ) | ||||||||||||||||||||
Commercial mortgage backed securities | 15 | — | 2 | 4,729 | (169 | ) | 8 | 4,744 | (169 | ) | |||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 41,187 | (101 | ) | 10 | 66,172 | (1,777 | ) | 29 | 107,359 | (1,878 | ) | ||||||||||||||||||||
Non-agency backed | 5,092 | (263 | ) | 3 | 28 | (1 | ) | 2 | 5,120 | (264 | ) | ||||||||||||||||||||
Asset-backed securities | 148 | — | 1 | 110 | (1 | ) | 2 | 258 | (1 | ) | |||||||||||||||||||||
Total temporarily impaired | $ | 562,070 | $ | (30,525 | ) | 474 | $ | 309,215 | $ | (11,819 | ) | 227 | $ | 871,285 | $ | (42,344 | ) | ||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Fair | Unrealized | No. of | Fair | Unrealized | No. of | Fair | Unrealized | |||||||||||||||||||||||
31-Dec-13 | Market | Losses | Positions | Market | Losses | Positions | Market | Losses | |||||||||||||||||||||||
Value | Held | Value | Held | Value | |||||||||||||||||||||||||||
Common and preferred stock | $ | 4,875 | $ | (2,100 | ) | 51 | $ | — | $ | — | — | $ | 4,875 | $ | (2,100 | ) | |||||||||||||||
U.S. treasury securities | 52,757 | (851 | ) | 18 | — | — | — | 52,757 | (851 | ) | |||||||||||||||||||||
U.S. government agencies | 4,135 | (84 | ) | 11 | — | — | 4,135 | (84 | ) | ||||||||||||||||||||||
Municipal bonds | 254,219 | (17,986 | ) | 302 | 24,169 | (1,937 | ) | 9 | 278,388 | (19,923 | ) | ||||||||||||||||||||
Foreign government | 68,102 | (1,324 | ) | 16 | 999 | (1 | ) | 1 | 69,101 | (1,325 | ) | ||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 500,564 | (13,402 | ) | 182 | 58,923 | (568 | ) | 9 | 559,487 | (13,970 | ) | ||||||||||||||||||||
Industrial | 500,366 | (21,203 | ) | 263 | 3,383 | (236 | ) | 2 | 503,749 | (21,439 | ) | ||||||||||||||||||||
Utilities | 45,663 | (2,008 | ) | 21 | — | — | — | 45,663 | (2,008 | ) | |||||||||||||||||||||
Commercial mortgage backed securities | 28,552 | (404 | ) | 18 | — | — | — | 28,552 | (404 | ) | |||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 492,740 | (13,918 | ) | 120 | — | — | — | 492,740 | (13,918 | ) | |||||||||||||||||||||
Non-agency backed | 205 | (5 | ) | 6 | 23 | (2 | ) | 1 | 228 | (7 | ) | ||||||||||||||||||||
Asset-backed securities | 1,463 | (3 | ) | 4 | — | — | — | 1,463 | (3 | ) | |||||||||||||||||||||
Total temporarily impaired | $ | 1,953,641 | $ | (73,288 | ) | 1,012 | $ | 87,497 | $ | (2,744 | ) | 22 | $ | 2,041,138 | $ | (76,032 | ) | ||||||||||||||
There are 701 and 1,034 securities at December 31, 2014 and 2013, respectively that account for the gross unrealized loss, none of which is deemed by the Company to be OTTI. Significant factors influencing the Company’s determination that unrealized losses were temporary included the magnitude of the unrealized losses in relation to each security’s cost, the nature of the investment and management’s intent not to sell these securities and it being not more likely than not that the Company will be required to sell these investments before anticipated recovery of fair value to the Company’s cost basis. | |||||||||||||||||||||||||||||||
The net unrealized gains (losses) on available-for-sale securities for for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 116,128 | $ | (11,165 | ) | $ | 117,582 | ||||||||||||||||||||||||
Equity securities | (3,031 | ) | (862 | ) | (478 | ) | |||||||||||||||||||||||||
Total net unrealized gain (loss) | 113,097 | (12,027 | ) | 117,104 | |||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (39,584 | ) | 4,209 | (40,986 | ) | ||||||||||||||||||||||||||
Cumulative net unrealized gain (loss), net of deferred income tax as of December 31 | 73,513 | (7,818 | ) | 76,118 | |||||||||||||||||||||||||||
Increase (decrease) in net unrealized gains, net of deferred income tax | $ | 81,331 | $ | (83,936 | ) | $ | 67,708 | ||||||||||||||||||||||||
(b) Trading Securities | |||||||||||||||||||||||||||||||
During 2014, the Company reclassified approximately $16,830 of its equity securities from available-for-sale securities, carried at estimated fair market value, to trading securities. Equity securities classified as trading securities are generally held for resale in anticipation of short-term market movements. | |||||||||||||||||||||||||||||||
The amortized cost, estimated market value and gross unrealized appreciation and depreciation of trading securities as of December 31, 2014 are presented in the table below: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Market value | |||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||
Common stock | $ | 25,407 | $ | 1,614 | $ | (272 | ) | $ | 26,749 | ||||||||||||||||||||||
Proceeds from the sale of investments in trading securities during the year ended December 31, 2014 was approximately $78,974. As of December 31, 2013, the Company did not have any securities classified as trading securities. | |||||||||||||||||||||||||||||||
(c) Investment Income | |||||||||||||||||||||||||||||||
Net investment income for the years ended December 31, 2014, 2013 and 2012 was derived from the following sources: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 124,976 | $ | 82,392 | $ | 67,182 | |||||||||||||||||||||||||
Equity securities, available-for-sale | 1,346 | 2,119 | 127 | ||||||||||||||||||||||||||||
Equity securities, trading | 29 | — | — | ||||||||||||||||||||||||||||
Cash and short term investments | 5,442 | 2,200 | 1,778 | ||||||||||||||||||||||||||||
131,793 | 86,711 | 69,087 | |||||||||||||||||||||||||||||
Less: Investment expenses and interest expense on securities sold under agreement to repurchase | (192 | ) | (1,892 | ) | (920 | ) | |||||||||||||||||||||||||
$ | 131,601 | 84,819 | $ | 68,167 | |||||||||||||||||||||||||||
(d) Realized Gains and Losses | |||||||||||||||||||||||||||||||
The tables below summarize the gross realized gains and (losses) for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 16,611 | $ | (4,946 | ) | $ | 11,665 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 14,121 | (3,928 | ) | 10,193 | |||||||||||||||||||||||||||
Equity securities, trading | 10,475 | (7,871 | ) | 2,604 | |||||||||||||||||||||||||||
Write-down of fixed maturities, available-for-sale | — | (5,393 | ) | (5,393 | ) | ||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,646 | ) | (2,646 | ) | ||||||||||||||||||||||||||
$ | 41,207 | $ | (24,784 | ) | $ | 16,423 | |||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 28,696 | $ | (18,066 | ) | $ | 10,630 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 11,264 | (3,498 | ) | 7,766 | |||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,869 | ) | (2,869 | ) | ||||||||||||||||||||||||||
$ | 39,960 | $ | (24,433 | ) | $ | 15,527 | |||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 10,310 | $ | (1,066 | ) | $ | 9,244 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 7,718 | (5,016 | ) | 2,702 | |||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,965 | ) | (2,965 | ) | ||||||||||||||||||||||||||
$ | 18,028 | $ | (9,047 | ) | $ | 8,981 | |||||||||||||||||||||||||
(e) Derivatives | |||||||||||||||||||||||||||||||
The Company from time to time invests in a limited amount of derivatives and other financial instruments as part of its investment portfolio to manage interest rate changes or other exposures to a particular financial market. The Company records changes in valuation on its derivative positions not designated as a hedge as a component of net realized gains and losses. | |||||||||||||||||||||||||||||||
The Company records changes in valuation on its hedged positions as a component of other comprehensive income. As of December 31, 2014 and 2013, the Company had two interest rate swap agreements designated as a hedge and were recorded as a liability in the amount of $2,033 and $3,054, respectively, and were included as a component of accrued expenses and other liabilities. | |||||||||||||||||||||||||||||||
The following table presents the notional amounts by remaining maturity of the Company’s Interest Rate Swaps as of December 31, 2014: | |||||||||||||||||||||||||||||||
Remaining Life of Notional Amount(1) | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | One Year | Two Through | Six Through | After | Total | ||||||||||||||||||||||||||
Five Years | Ten Years | Ten Years | |||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 70,000 | $ | — | $ | — | $ | 70,000 | |||||||||||||||||||||
-1 | Notional amount is not representative of either market risk or credit risk and is not recorded in the consolidated balance sheet. | ||||||||||||||||||||||||||||||
(f) Restricted Cash and Investments | |||||||||||||||||||||||||||||||
The Company, in order to conduct business in certain states, is required to maintain letters of credit or assets on deposit to support state mandated regulatory requirements and certain third party agreements. The Company also utilizes trust accounts to collateralize business with its reinsurance counterparties. These assets held are primarily in the form of cash or certain high grade securities. The fair values of our restricted assets as of December 31, 2014 and 2013 are as follows: | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||
Restricted cash | $ | 186,225 | $ | 100,439 | |||||||||||||||||||||||||||
Restricted investments | 734,271 | 978,910 | |||||||||||||||||||||||||||||
Total restricted cash and investments | $ | 920,496 | $ | 1,079,349 | |||||||||||||||||||||||||||
(g) Other | |||||||||||||||||||||||||||||||
Securities sold but not yet purchased represent obligations of the Company to deliver the specified security at the contracted price and, thereby, create a liability to purchase the security in the market at prevailing prices. The Company’s liability for securities to be delivered is measured at their fair value and as of December 31, 2014 was $13,052, which consisted primarily of equity securities. The Company did not have any securities sold but not yet purchased as of December 31, 2013. Substantially all securities owned under these arrangements are pledged to the clearing broker to sell or re-pledge the securities to others subject to certain limitations. | |||||||||||||||||||||||||||||||
From time to time, the Company enters into repurchase agreements that are subject to a master netting arrangement, which are accounted for as collateralized borrowing transactions and are recorded at contract amounts. The Company receives cash or securities that it invests or holds in short term or fixed income securities. As of December 31, 2014, the Company had no repurchase agreements outstanding. Interest expense associated with these repurchase agreements for the year ended December 31, 2014 was $283. | |||||||||||||||||||||||||||||||
As of December 31, 2013, the Company had twelve repurchase agreements with an outstanding principal amount of $293,222, which approximates fair value, at interest rates between 0.12% and 0.47%. The Company had nine repurchase agreements with one counter-party totaling $242,304 and three repurchase agreements with a separate counter-party totaling $50,918. Interest expense associated with these twelve repurchase agreements for the year ended December 31, 2013 was $777, of which $0 was accrued as of December 31, 2013. The Company had approximately $311,518 of collateral pledged in support of these agreements. Interest expense related to repurchase agreements is recorded as a component of investment income. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | ||||||||||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||||||||||
The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis as of December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
U.S. treasury securities | $ | 43,870 | $ | 43,870 | $ | — | $ | — | |||||||||||||||||||||
U.S. government securities | 13,538 | — | 13,538 | — | |||||||||||||||||||||||||
Municipal bonds | 482,041 | — | 482,041 | — | |||||||||||||||||||||||||
Foreign government | 112,731 | — | 112,731 | — | |||||||||||||||||||||||||
Corporate bonds and other bonds: | |||||||||||||||||||||||||||||
Finance | 1,221,862 | — | 1,221,862 | — | |||||||||||||||||||||||||
Industrial | 1,202,860 | — | 1,202,860 | — | |||||||||||||||||||||||||
Utilities | 138,692 | — | 138,692 | — | |||||||||||||||||||||||||
Commercial mortgage backed securities | 38,685 | — | 38,685 | — | |||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||
Agency backed | 975,782 | — | 975,782 | — | |||||||||||||||||||||||||
Non-agency backed | 22,503 | — | 22,503 | — | |||||||||||||||||||||||||
Asset-backed securities | 710 | — | 710 | — | |||||||||||||||||||||||||
Equity securities, available-for-sale | 81,044 | 24,484 | 21,674 | 34,886 | |||||||||||||||||||||||||
Equity securities, trading | 26,749 | 26,749 | — | — | |||||||||||||||||||||||||
Short term investments | 63,916 | 63,916 | — | — | |||||||||||||||||||||||||
Other investments | 31,186 | — | — | 31,186 | |||||||||||||||||||||||||
Life settlement contracts | 264,517 | — | — | 264,517 | |||||||||||||||||||||||||
$ | 4,720,686 | $ | 159,019 | $ | 4,231,078 | $ | 330,589 | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Equity securities sold but not yet purchased, market | $ | 13,052 | $ | 13,052 | $ | — | $ | — | |||||||||||||||||||||
Life settlement contract profit commission | 16,534 | — | — | 16,534 | |||||||||||||||||||||||||
Derivatives | 2,033 | — | 2,033 | — | |||||||||||||||||||||||||
$ | 31,619 | $ | 13,052 | $ | 2,033 | $ | 16,534 | ||||||||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
U.S. treasury securities | $ | 110,345 | $ | 110,345 | $ | — | $ | — | |||||||||||||||||||||
U.S. government securities | 10,489 | — | 10,489 | — | |||||||||||||||||||||||||
Municipal bonds | 446,183 | — | 446,183 | — | |||||||||||||||||||||||||
Foreign government | 160,105 | 160,105 | |||||||||||||||||||||||||||
Corporate bonds and other bonds: | |||||||||||||||||||||||||||||
Finance | 1,084,599 | — | 1,084,599 | — | |||||||||||||||||||||||||
Industrial | 754,417 | — | 754,417 | — | |||||||||||||||||||||||||
Utilities | 70,226 | — | 70,226 | — | |||||||||||||||||||||||||
Commercial mortgage backed securities | 28,566 | — | 28,566 | — | |||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||
Agency backed | 423,137 | — | 423,137 | — | |||||||||||||||||||||||||
Non-agency backed | 6,749 | — | 6,749 | — | |||||||||||||||||||||||||
Asset-backed securities | 6,120 | — | 6,120 | — | |||||||||||||||||||||||||
Equity securities | 15,148 | 15,148 | — | — | |||||||||||||||||||||||||
Short term investments | 114,202 | 114,202 | — | — | |||||||||||||||||||||||||
Other investments | 25,749 | — | — | 25,749 | |||||||||||||||||||||||||
Securities held as collateral | 311,518 | 48,915 | 262,603 | — | |||||||||||||||||||||||||
Life settlement contracts | 233,024 | — | — | 233,024 | |||||||||||||||||||||||||
$ | 3,800,577 | $ | 288,610 | $ | 3,253,194 | $ | 258,773 | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase, at contract value | 293,222 | — | 293,222 | — | |||||||||||||||||||||||||
Life settlement contract profit commission | 11,945 | — | — | 11,945 | |||||||||||||||||||||||||
Derivatives | 3,054 | — | 3,054 | — | |||||||||||||||||||||||||
$ | 308,221 | $ | — | $ | 296,276 | $ | 11,945 | ||||||||||||||||||||||
The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Balance as of January 1, 2014 | Net income | Other | Purchases and | Sales and | Net transfers | Balance as of December 31, 2014 | ||||||||||||||||||||||
(loss) | comprehensive | issuances | settlements | into (out of) | |||||||||||||||||||||||||
income (loss) | Level 3 | ||||||||||||||||||||||||||||
Other investments | $ | 25,749 | $ | 3,084 | $ | — | $ | 20,207 | $ | (17,854 | ) | $ | — | 31,186 | |||||||||||||||
Equity securities, available-for-sale | — | — | (7,079 | ) | 41,965 | — | — | 34,886 | |||||||||||||||||||||
Life settlement contracts | 233,024 | 61,110 | — | 25,418 | (55,035 | ) | — | 264,517 | |||||||||||||||||||||
Life settlement contract profit commission | (11,945 | ) | (4,589 | ) | — | — | — | — | (16,534 | ) | |||||||||||||||||||
Total | $ | 246,828 | $ | 59,605 | $ | (7,079 | ) | $ | 87,590 | $ | (72,889 | ) | $ | — | $ | 314,055 | |||||||||||||
(Amounts in Thousands) | Balance as of January 1, 2013 | Net income (loss) | Other comprehensive income (loss) | Purchases and | Sales and | Net transfers | Balance as of December 31, 2013 | ||||||||||||||||||||||
issuances | settlements | into (out of) | |||||||||||||||||||||||||||
Level 3 | |||||||||||||||||||||||||||||
Other investments | $ | 11,144 | $ | 1,813 | $ | 1,666 | $ | 17,228 | $ | (6,102 | ) | $ | — | $ | 25,749 | ||||||||||||||
Life settlement contracts | 193,927 | 47,245 | — | 11,906 | (20,054 | ) | — | 233,024 | |||||||||||||||||||||
Life settlement contract profit commission | (11,750 | ) | (195 | ) | — | — | — | — | (11,945 | ) | |||||||||||||||||||
Total | $ | 193,321 | $ | 48,863 | $ | 1,666 | $ | 29,134 | $ | (26,156 | ) | $ | — | $ | 246,828 | ||||||||||||||
The Company had no transfers among the levels of fair value hierarchy during the years ended December 31, 2014 and 2013. | |||||||||||||||||||||||||||||
A reconciliation of net income for life settlement contracts in the above table to (loss) gain on investment in life settlement contracts net of profit commission included in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Net income | $ | 61,110 | $ | 47,245 | |||||||||||||||||||||||||
Premium paid | (46,367 | ) | (38,933 | ) | |||||||||||||||||||||||||
Profit commission | (4,589 | ) | (195 | ) | |||||||||||||||||||||||||
Other expenses | 2,152 | (4,317 | ) | ||||||||||||||||||||||||||
Gain on investment in life settlement contracts | $ | 12,306 | $ | 3,800 | |||||||||||||||||||||||||
The Company uses the following methods and assumptions in estimating its fair value disclosures for financial instruments: | |||||||||||||||||||||||||||||
• | Equity and Fixed Income Investments: Fair value disclosures for these investments are disclosed elsewhere in Note 2. “Significant Accounting Policies”. The carrying values of cash, short term investments and investment income accrued approximate their fair values and are classified as Level 1 in the financial hierarchy. | ||||||||||||||||||||||||||||
• | Premiums Receivable: The carrying values reported in the accompanying balance sheets for these financial instruments approximate their fair values due to the short term nature of the asset and are classified as Level 1 in the financial hierarchy | ||||||||||||||||||||||||||||
• | Other investments: Other investments consisted primarily of investments in limited partnerships, an interest in a syndicated term loan, and annuities. Other investments accounted for approximately 0.6% of the Company's investment portfolio as of December 31, 2014. The Company estimates the fair value of other investments based on significant unobservable inputs in the valuation process. As a result, the Company classified the fair value estimates as Level 3 in the financial hierarchy. | ||||||||||||||||||||||||||||
• | Equity Investment in Unconsolidated Subsidiaries - Related Party: The Company has an approximate ownership percentage of 13.2% in NGHC, a publicly-held insurance holding company (Nasdaq: NGHC). The Company accounts for this investment under the equity method of accounting as it has the ability to exert significant influence on NGHC. The fair value and the carrying value of the investment was approximately $228,818 and $119,712, respectively, as of December 31, 2014. | ||||||||||||||||||||||||||||
• | Subordinated Debentures and Debt: The current fair value of the Company's5.5% 2021 convertible senior notes, 2.75% 2044 convertible senior notes, subordinated debentures and 6.125% Notes was $146,675, $210,831, $74,690 and $258,750 as of December 31, 2014, respectively. The 5.5% 2021 convertible senior notes, 2.75% 2044 convertible senior notes, and 6.125% Notes are publicly traded instruments and are classified as Level 1 in the fair value hierarchy. The fair value of the subordinated debentures was determined using the Black-Derman-Toy interest rate lattice model and is classified as Level 3 in the fair value hierarchy. | ||||||||||||||||||||||||||||
• | Derivatives: The Company classifies interest rate swaps as Level 2 hierarchy. The Company uses these interest rate swaps to hedge floating interest rates on its debt, thereby changing the variable rate exposure to a fixed rate exposure for interest on these obligations. The estimated fair value of the interest rate swaps, which is obtained from a third party pricing service, is measured using discounted cash flow analysis that incorporates significant observable inputs, including the LIBOR forward curve and a measurement of volatility. | ||||||||||||||||||||||||||||
• | Repurchase Agreements: The carrying value of repurchase agreements in the accompanying balance sheets represents their fair values and are classified as Level 2 in the financial hierarchy. | ||||||||||||||||||||||||||||
The fair value of life settlement contracts as well as life settlement profit commission liability is based on information available to the Company at the end of the reporting period. The Company considers the following factors in its fair value estimates: cost at date of purchase, recent purchases and sales of similar investments (if available and applicable), financial standing of the issuer, changes in economic conditions affecting the issuer, maintenance cost, premiums, benefits, standard actuarially developed mortality tables and life expectancy reports prepared by nationally recognized and independent third party medical underwriters. The Company estimates the fair value of a life insurance policy by applying an investment discount rate based on the cost of funding the Company's life settlement contracts as compared to returns on investments in asset classes with comparable credit quality, which the Company has determined to be 7.5%, to the expected cash flow generated by the policies in the Company's life settlement portfolio (death benefits less premium payments), net of policy specific adjustments and reserves. In order to confirm the integrity of their calculation of fair value, the Company, quarterly, retains an independent third-party actuary to verify that the actuarial modeling used by the Company to determine fair value was performed correctly and that the valuation, as determined through the Company's actuarial modeling, is consistent with other methodologies. The Company considers this information in its assessment of the reasonableness of the life expectancy and discount rate inputs used in the valuation of these investments. | |||||||||||||||||||||||||||||
The Company adjusts the standard mortality for each insured for the insured's life expectancy based on reviews of the insured's medical records. The Company establishes policy specific reserves for the following uncertainties: improvements in mortality, the possibility that the high net worth individuals represented in its portfolio may have access to better health care, the volatility inherent in determining the life expectancy of insureds with significant reported health impairments, the possibility that the issuer of the policy or a third party will contest the payment of the death benefit payable to the Company, and the future expenses related to the administration of the portfolio. The application of the investment discount rate to the expected cash flow generated by the portfolio, net of the policy specific reserves, yields the fair value of the portfolio. The effective discount rate reflects the relationship between the fair value and the expected cash flow gross of these reserves. | |||||||||||||||||||||||||||||
The following summarizes data utilized in estimating the fair value of the portfolio of life insurance policies as of December 31, 2014 and 2013 and, as described in Note 6. “Investments in Life Settlements”, only includes data for policies to which the Company assigned value at those dates: | |||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Average age of insured | 81.1 | 80.1 | |||||||||||||||||||||||||||
Average life expectancy, months (1) | 121 | 131 | |||||||||||||||||||||||||||
Average face amount per policy | $ | 6,624,000 | $ | 6,611,000 | |||||||||||||||||||||||||
Effective discount rate (2) | 14 | % | 14.2 | % | |||||||||||||||||||||||||
(1) | Standard life expectancy as adjusted for insured’s specific circumstances. | ||||||||||||||||||||||||||||
(2) | Effective Discount Rate (“EDR”) is the Company's estimated internal rate of return on its life settlement contract portfolio and is determined from the gross expected cash flows and valuation of the portfolio. The valuation of the portfolio is calculated net of all reserves using a 7.5% discount rate. The EDR is implicit of the reserves and the gross expected cash flows of the portfolio. The Company anticipates that the EDR's range is between 12.5% and 17.5% and reflects the uncertainty that exists surrounding the information available as of the reporting date. As the accuracy and reliability if information improves (declines), the EDR will decrease (increase). The change in the EDR from December 31, 2013 to December 31, 2014 resulted from routine updating of life expectancies and other factors relating to operational risk. | ||||||||||||||||||||||||||||
The Company's assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. The fair value measurements used in estimating the present value calculation are derived from valuation techniques generally used in the industry that include inputs for the asset that are not based on observable market data. The extent to which the fair value could reasonably vary in the near term has been quantified by evaluating the effect of changes in significant underlying assumptions used to estimate the fair value amount. If the life expectancies were increased or decreased by 4 months and the discount factors were increased or decreased by 1% while all other variables are held constant, the carrying value of the investment in life insurance policies would increase or (decrease) by the unaudited amounts summarized below for the years ended December 31, 2014 and 2013: | |||||||||||||||||||||||||||||
Change in life expectancy | |||||||||||||||||||||||||||||
Plus | Minus | ||||||||||||||||||||||||||||
4 Months | 4 Months | ||||||||||||||||||||||||||||
Investment in life policies: | |||||||||||||||||||||||||||||
December 31, 2014 | $ | (34,686 | ) | $ | 36,486 | ||||||||||||||||||||||||
December 31, 2013 | $ | (29,537 | ) | $ | 31,313 | ||||||||||||||||||||||||
Change in discount rate (1) | |||||||||||||||||||||||||||||
Plus 1% | Minus 1% | ||||||||||||||||||||||||||||
Investment in life policies: | |||||||||||||||||||||||||||||
December 31, 2014 | $ | (22,705 | ) | $ | 25,456 | ||||||||||||||||||||||||
December 31, 2013 | $ | (20,055 | ) | $ | 22,605 | ||||||||||||||||||||||||
(1) Discount rate is a present value calculation that considers legal risk, credit risk and liquidity risk and is a component of EDR. |
Acquisitions
Acquisitions | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Acquisitions | Acquisitions | ||||
The Company accounts for acquisitions pursuant to the acquisition method. In applying the acquisition method, the Company records the identifiable assets acquired and liabilities assumed at fair value and records the excess of the consideration paid over the value of the identified net assets acquired as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. | |||||
The following significant acquisitions occurred during the years ended December 31, 2014 and 2013: | |||||
Comp Options Insurance Company, Inc. | |||||
On October 1, 2014, the Company acquired Comp Options Insurance Company, Inc. ("Comp Options"), a Florida-based workers' compensation insurer, from an affiliate of Blue Cross & Blue Shield of Florida, for approximately $34,291 in cash. Comp Options offers workers' compensation insurance to small businesses with low-hazard risk profiles in the state of Florida. | |||||
A summary of the preliminary assets acquired and liabilities assumed for Comp Options are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 80,051 | |||
Premium receivables | 33,530 | ||||
Prepaid expenses and other assets | 6,642 | ||||
Deferred tax asset | 5,024 | ||||
Goodwill and intangible assets | 17,353 | ||||
Total assets | $ | 142,600 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 55,752 | |||
Unearned premiums | 34,364 | ||||
Accrued expenses and other current liabilities | 16,561 | ||||
Deferred tax liability | 1,632 | ||||
Total liabilities | $ | 108,309 | |||
Cash paid | $ | 34,291 | |||
The goodwill and intangible assets, as well as Comp Options' results of operations, are included as a component of the Small Commercial Business segment. The Company is in the process of completing its acquisition accounting and expects to have it completed in 2015. | |||||
In accordance with FASB ASC 944-805 Business Combinations, the Company adjusted to fair value Comp Option's loss and LAE reserves by taking the acquired loss reserves recorded and discounting them based on expected reserve payout pattern using a current risk free rate. This risk free interest rate was then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company's best estimate of the fair value of such reserves at acquisition date is recorded as an intangible asset and is amortized proportionately to the decrease in the acquired loss and LAE reserves and was approximately $1,612. | |||||
As a result of this acquisition, the Company recorded approximately $18,653 of written premium and $951 of service and fee income related to Comp Options in 2014. | |||||
The Insco Dico Group | |||||
On January 3, 2014, the Company completed the acquisition of Insco Insurance Services, Inc. ("Insco Dico") and its subsidiaries for a purchase price of approximately $88,700. Insco Dico's subsidiaries include Developers Surety and Indemnity Company and Indemnity Company of California, which offer surety insurance to developers and contractors in all 50 states with California as the largest state. In addition, Insco Dico's subsidiary, Builders Insurance Services, markets general liability insurance policies to contractors in several states in the western region of the U.S. | |||||
A summary of the assets acquired and liabilities assumed for Insco Dico are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 130,031 | |||
Premium receivables | 8,684 | ||||
Reinsurance recoverable | 5,799 | ||||
Prepaid expenses and other assets | 1,783 | ||||
Deferred tax asset | 3,104 | ||||
Property and equipment | 1,190 | ||||
Goodwill and intangible assets | 17,765 | ||||
Total assets | $ | 168,356 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 25,210 | |||
Unearned premiums | 25,715 | ||||
Funds held for policyholders | 5,864 | ||||
Accrued expenses and other current liabilities | 10,210 | ||||
Deferred tax liability | 2,657 | ||||
Notes payable | 10,000 | ||||
Total liabilities | $ | 79,656 | |||
Cash paid | $ | 88,700 | |||
The goodwill and intangible assets, as well as Insco Dico's results of operations, are included as a component of the Small Commercial Business segment. The identifiable intangible assets consist of agency relationships, which have a 20 year life, and licenses that have an indefinite life. The Company completed its acquisition accounting in 2014. | |||||
As a result of this transaction, the Company recorded approximately $55,511 of written premium and approximately $3,743 of service and fee income during the year ended December 31, 2014 related to Insco Dico. | |||||
Sagicor Europe Limited | |||||
On December 23, 2013, the Company, through one of its subsidiaries, completed the acquisition of Sagicor Europe Limited and its wholly owned subsidiaries, including Sagicor at Lloyd's Limited ("Sagicor"), from Sagicor Financial Corporation for approximately $93,113. Sagicor Europe Limited and Sagicor at Lloyd's Limited subsequently changed their names to AmTrust Lloyd's Holdings Limited and AmTrust at Lloyd's Limited, respectively. AmTrust at Lloyd's Limited is a managing agency and owner of Lloyd's property/casualty insurance syndicate 1206 with stamp capacity of $330,000 and Lloyd's life insurance syndicate 44 with stamp capacity of $16,500. | |||||
A summary of the assets acquired and liabilities assumed for AmTrust Lloyd's Holdings Limited are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 429,476 | |||
Prepaid insurance | 122,673 | ||||
Premium receivable | 89,801 | ||||
Deferred tax asset | 29,916 | ||||
Prepaid expenses and other assets | 64,981 | ||||
Property and equipment | 5,010 | ||||
Goodwill and intangible assets | 33,539 | ||||
Total assets | $ | 775,396 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 496,836 | |||
Unearned premium | 113,182 | ||||
Ceded reinsurance premiums payable | 16,315 | ||||
Accrued expense and other current liabilities | 55,950 | ||||
Total liabilities | $ | 682,283 | |||
Cash paid | $ | 93,113 | |||
The goodwill and intangible assets, as well as AmTrust Lloyd's Holdings Limited's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment. The Company completed its acquisition accounting in 2014. | |||||
As a result of this transaction, the Company recorded approximately $322,817 of written premium during the year ended December 31, 2014 related to Sagicor. | |||||
Mutual Insurers Holding Company | |||||
On May 13, 2013, the Company completed the acquisition of Mutual Insurers Holding Company (“MIHC”) and its subsidiaries. MIHC's primary operating subsidiary, First Nonprofit Insurance Company (“FNIC”), is a provider of property and casualty insurance products to nonprofit organizations in the U.S. Immediately prior to the acquisition, MIHC converted from a mutual form to a stock form of ownership in a transaction “sponsored” by the Company. As required by the plan of conversion and applicable Delaware law, the Company offered shares of its common stock, at a discount to the market price, to the members of MIHC who held policies as of December 31, 2012 and the directors, officers and employees of MIHC and its subsidiaries. The Company received subscriptions for approximately $472, resulting in the issuance by the Company of 18,052 shares of its common stock at a discounted price of 20% from the Company's market trading price, or approximately $118. Pursuant to the stock purchase agreement, after the expiration of the offering, the Company purchased all of the authorized shares of capital stock of MIHC at a purchase price equal to the greater of the gross proceeds received by the Company in the offering, and $8,000. The Company made a payment to MIHC of $48,500, which included the $472 in proceeds the Company received in the offering, for the stock of FNIC. Additionally, the Company as part of the transaction, was required to make a contribution to First Nonprofit Foundation, a tax exempt corporation principally funded by FNIC's predecessor and managed for the benefit of nonprofit organizations, in the amount of $7,882, which represented $8,000, as discussed above, less the discount of approximately $118 on the shares issued by the Company in the transaction. The remaining $40,618 of cash contributed to MIHC was retained by the Company. Additionally, the Company assumed $6,500 of debt in the transaction. In accordance with FASB ASC 805-10 Business Combinations, the Company recorded an acquisition price of approximately $14,500. | |||||
A summary of the assets acquired and liabilities assumed for MIHC are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 134,780 | |||
Premium receivable | 23,085 | ||||
Prepaid expenses and other assets | 43,714 | ||||
Deferred tax asset | 5,358 | ||||
Property and equipment | 2,684 | ||||
Intangible assets | 6,132 | ||||
Total assets | $ | 215,753 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 89,267 | |||
Unearned premiums | 27,760 | ||||
Accrued expenses and other current liabilities | 23,629 | ||||
Deferred tax liability | 2,146 | ||||
Notes payable | 6,500 | ||||
Total liabilities | $ | 149,302 | |||
Cash paid | $ | 48,500 | |||
Acquisition gain | $ | 17,951 | |||
The intangible assets consisted of state licenses and have an indefinite life. The intangible assets, as well as FNIC's results of operations, are included as a component of the Small Commercial Business segment. | |||||
In accordance with FASB ASC 944-805 Business Combinations, the Company adjusted to fair value FNIC's loss and LAE reserves by taking the acquired loss reserves recorded and discounting them based on expected reserve payout pattern using a current risk free rate. This risk free interest rate was then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company's best estimate of the fair value of such reserves at acquisition date is recorded as an intangible asset and is amortized proportionately to the decrease in the acquired loss and LAE reserves and was approximately $4,531. As a result of this transaction, the Company recorded an acquisition gain of approximately $17,951. | |||||
The Company recorded approximately $58,096 and $32,144 of written premium for the years ended December 31, 2014 and 2013, respectively, related to FNIC. | |||||
AMTCS Holdings, Inc. | |||||
On May 3, 2013, the Company, through its wholly-owned subsidiary AMT Warranty Corp., completed the acquisition of CPPNA Holdings, Inc. (“CPPNA”) from CPP Group LLC, a company based in the United Kingdom, for approximately $40,000. CPPNA subsequently changed its name to AMTCS Holdings, Inc. (“AMTCS”). AMTCS provides administrative services for consumer protection products in the United States, including identity theft protection and warranties related to credit card purchases, to customers of AMTCS's financial services partners. In accordance with FASB ASC 805-10 Business Combinations, the Company recorded a purchase price of approximately $40,000, which consisted primarily of goodwill and intangible assets of approximately $17,327 and $34,700, respectively, and a deferred tax liability of $12,145. The intangible asset consists of customer relationships and has a life of 12 years. The goodwill and intangibles, as well as AMTCS's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment from the date of acquisition. | |||||
The Company recorded approximately $58,360 and $44,540 of service and fee income during the years ended December 31, 2014 and 2013, respectively, related to AMTCS. | |||||
Sequoia Insurance Company | |||||
On April 19, 2013, the Company completed the acquisition of all the issued and outstanding shares of common stock of Sequoia Insurance Company and its subsidiaries, Sequoia Indemnity Company and Personal Express Insurance Company (“Sequoia”), for approximately $60,000. Sequoia offers low hazard, property/casualty insurance products, including workers' compensation and commercial package insurance, to small businesses in several western states, with California representing Sequoia's largest market. | |||||
A summary of the assets acquired and liabilities assumed for Sequoia are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 215,473 | |||
Premium receivable | 32,870 | ||||
Reinsurance recoverables | 43,793 | ||||
Prepaid expenses and other assets | 4,014 | ||||
Deferred tax asset | 1,242 | ||||
Property and equipment | 1,022 | ||||
Intangible assets | 11,848 | ||||
Total assets | $ | 310,262 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 165,487 | |||
Unearned premium | 59,773 | ||||
Accrued expenses and other current liabilities | 15,624 | ||||
Deferred tax liability | 4,147 | ||||
Total liabilities | $ | 245,031 | |||
Cash paid | $ | 60,000 | |||
Acquisition gain | $ | 5,231 | |||
The intangible assets consists primarily of licenses and trademarks and have an indefinite life. The intangible assets, as well as Sequoia's results of operations, are included as a component of the Small Commercial Business segment. | |||||
In accordance with FASB ASC 944-805 Business Combinations, the Company adjusted to fair value Sequoia's loss and LAE reserves by taking the acquired loss reserves recorded and discounting them based on expected reserve payout pattern using a current risk free rate. This risk free interest rate was then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company's best estimate of the fair value of such reserves at acquisition date is recorded as an intangible asset and is amortized proportionately to the decrease in the acquired loss and LAE reserves and was approximately $7,448. As a result of this transaction, the Company recorded an acquisition gain of approximately $5,231. | |||||
The Company recorded approximately $68,262 and $79,666 of written premium for the years ended December 31, 2014 and 2013, respectively, related to Sequoia. | |||||
Car Care | |||||
On February 28, 2013, the Company, through its wholly-owned subsidiary AmTrust International Limited, acquired all of the issued and outstanding shares of capital stock of Car Care Plan (Holdings) Limited (“CCPH”) from Ally Insurance Holdings, Inc (“AIH”). CCPH is an administrator, insurer and provider of auto extended warranty, guaranteed asset protection, Wholesale Floorplan Insurance and other complementary insurance products. CCPH underwrites its products and the products of third-party administrators through its subsidiary Motors Insurance Company Limited, a United Kingdom based insurer. CCPH has operations in the United Kingdom, Europe, China, North America and Latin America. The Company paid $72,412 for the purchase of CCPH. | |||||
Certain employees, former employees and retirees of CCPH participate in a defined benefit pension plan. The plan was frozen and curtailed in 2007. The impact of the plan on the Company's results of operations was immaterial. For further information on the pension plan, see "Note 18. Employee Benefit Plans". | |||||
A summary of the assets acquired and liabilities assumed for CCPH are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 253,257 | |||
Premium receivable | 26,001 | ||||
Reinsurance recoverables | 12,186 | ||||
Other assets | 2,979 | ||||
Property and equipment | 589 | ||||
Intangible assets | 34,337 | ||||
Total assets | $ | 329,349 | |||
Liabilities | |||||
Loss and loss expense reserves | 9,703 | ||||
Unearned premium | 131,494 | ||||
Accrued expenses and other current liabilities | 83,993 | ||||
Deferred tax liability | 6,215 | ||||
Total liabilities | $ | 231,405 | |||
Cash paid | $ | 72,412 | |||
Acquisition gain | $ | 25,532 | |||
The intangible assets consist primarily of customer relationships and have a life of fifteen years. The intangible assets, as well as CCPH's results of operations, are included as a component of the Specialty Risk and Extended Warranty segment from the date of acquisition. As a result of this transaction, the Company recognized a gain on the acquisition of approximately $25,532. | |||||
The Company recorded approximately $110,769 and $98,865 of written premium for the years ended December 31, 2014 and 2013, respectively. In addition, the Company recorded $42,435 and $31,568 of service and fee income for the years ended December 31, 2014 and 2013, respectively, related to CCPH. | |||||
AHL | |||||
During 2013, AmTrust Holdings Luxembourg S.A.R.L. (“AHL”) completed two acquisitions described below. AHL is a holding company that purchases Luxembourg-domiciled reinsurance entities. In connection with these transactions, the Company acquires cash and equalization reserves of the reinsurance companies. An equalization reserve is a catastrophe reserve in excess of required reserves established pursuant to Luxembourg law. Equalization reserves are required to be established for Luxembourg statutory and tax purposes, but are not recognized under U.S. GAAP. The equalization reserves originally established by the seller under Luxembourg law allowed the reinsurer to offset any taxable income. Equalization reserves are calculated on a line of business basis and are subject to a theoretical maximum amount, or cap, based on the expected premium volume described in the business plan of the reinsurance company as approved by the Luxembourg regulators and is subject to reassessment every five years. Each year, the Luxembourg reinsurer is required to adjust its equalization reserves by an amount equal to its statutory net income or net loss, determined based on premiums and investment income less incurred losses and other operating expenses. The yearly adjustment of the equalization reserve generally results in zero pretax income on a Luxembourg statutory and tax basis, as follows: in a year in which the reinsurer’s operations result in a statutory loss, the equalization reserves are taken down in an amount to balance the income statement to zero pretax income, and in a year in which the operations result in a gain, the equalization reserves are increased in an amount to balance the income statement to zero pretax income. If the reinsurer were to produce underwriting income in excess of the equalization reserve cap, or if the cap were to be reduced below the amount of the carried equalization reserves, the reinsurer would incur Luxembourg tax on the amount of such excess income or the amount by which the reserves exceeded the reduced cap, as applicable. | |||||
If a Luxembourg reinsurer can assume sufficient premium to maintain its equalization reserves or assume losses, which then reduce the equalization reserves, the reinsurer can permanently defer the income tax. Subsequent to the acquisition, the Company cedes premium and associated losses to the reinsurance companies through intercompany reinsurance arrangements. Provided the Company is able to cede business that generates a net loss to the reinsurance companies through intercompany reinsurance arrangements sufficient to offset the reinsurers’ required reductions of the equalization reserves, Luxembourg would not, under laws currently in effect, impose any income, corporation or profits tax on the reinsurance companies. However, if the reinsurance companies were to cease reinsuring business without exhausting the equalization reserves, they would be taxed by Luxembourg at a rate of approximately 30%. As of December 31, 2014, the Company had approximately $314,050 of unutilized equalization reserves and an associated deferred tax liability of approximately $94,215. During 2014, 2013 and 2012, the Company was able to reduce overall expenses by a net amount of $30,379, $214 and $9,274, respectively, to reflect the net reduction of the deferred tax liability offset by goodwill impairment charges related to the utilization of the equalization reserves. Under its business plans currently in effect, the Company expects that the ceded losses and expenses net of reinsurance premiums paid under the intercompany reinsurance agreements will cause the equalization reserves to be fully utilized in three to five years subsequent to the acquisition of the Luxembourg reinsurer, at which point the deferred tax liability relating to the equalization reserves will be extinguished. The effects of these intercompany reinsurance agreements are appropriately eliminated in consolidation and did not impact the Company's gross and net loss reserves or loss ratio. | |||||
In December 2013, AHL acquired all the issued and outstanding stock of Atlas COPCO Reinsurance S.A., a Luxembourg domiciled reinsurance company, from ATLAS COPCO AB. The purchase price of Atlas COPCO Reinsurance S.A. was approximately $80,700. The Company recorded approximately $89,100 of cash, goodwill of $16,900 and a deferred tax liability of $25,300. Atlas COPCO Reinsurance S.A. subsequently changed its name to AmTrust Re Aries S.A. | |||||
In November 2013, AHL acquired all the issued and outstanding stock of Re'A FIN S.A., a Luxembourg domiciled reinsurance company, from SRIW Finance SA and SPARXIS SA. The purchase price of Re'A FIN S.A. was approximately $93,400. The Company recorded approximately $102,800 of cash, goodwill of $18,700 and a deferred tax liability of $28,100. Re'A FIN S.A. subsequently changed its name to AmTrust Re Taurus S.A. |
Investment_in_Life_Settlements
Investment in Life Settlements | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investments, All Other Investments [Abstract] | ||||||||||||
Investment in Life Settlements | Investment in Life Settlements | |||||||||||
The Company currently has a 50% ownership interest in each of four entities for the purpose of acquiring life settlement contracts, with a subsidiary of NGHC owning the other 50%. A life settlement contract is a contract between the owner of a life insurance policy and a third-party who obtains the ownership and beneficiary rights of the underlying life insurance policy. The entities (collectively, the “LSC Entities”) are: | ||||||||||||
•Tiger Capital LLC (“Tiger”); | ||||||||||||
•AMT Capital Alpha, LLC (“AMT Alpha”); | ||||||||||||
•AMT Capital Holdings, S.A. (“AMTCH”); and | ||||||||||||
•AMT Capital Holdings II, S.A. (“AMTCH II”). | ||||||||||||
The LSC Entities may also acquire premium finance loans made in connection with the borrowers’ purchase of life insurance policies that are secured by the policies. The LSC Entities acquire the underlying policies through the borrowers’ voluntary surrender of the policy in satisfaction of the loan or foreclosure. A third party serves as the administrator of the Tiger and AMTCH II life settlement contract portfolios, for which it receives an administrative fee. The third party administrator is eligible to receive a percentage of profits after certain time and performance thresholds have been met. The Company provides certain actuarial and finance functions related to the LSC Entities. In conjunction with the Company’s 13.2% ownership percentage of NGHC, the Company ultimately receives 56.6% of the profits and losses of the LSC Entities. As such, in accordance with ASC 810-10, Consolidation, the Company has been deemed the primary beneficiary and, therefore, consolidate the LSC Entities. | ||||||||||||
The Company accounts for investments in life settlements in accordance with ASC 325-30, Investments in Insurance Contracts, which states that an investor shall elect to account for its investments in life settlement contracts by using either the investment method or the fair value method. The election is made on an instrument-by-instrument basis and is irrevocable. The Company has elected to account for these policies using the fair value method. The Company determines fair value based upon its estimate of the discounted cash flow related to policies (net of the reserves for improvements in mortality, the possibility that the high net worth individuals represented in its portfolio may have access to better health care, the volatility inherent in determining the life expectancy of insureds with significant reported health impairments, the possibility that the issuer of the policy or a third party will contest the payment of the death benefit payable to the Company, and the future expenses related to the administration of the portfolio), which incorporates current life expectancy assumptions, premium payments, the credit exposure to the insurance company that issued the life settlement contracts and the rate of return that a buyer would require on the contracts as no comparable market pricing is available. | ||||||||||||
Total capital contributions of $36,115 and $70,780 were committed to the LSC Entities during the years ended December 31, 2014 and 2013, respectively, for which the Company's proportionate share was approximately $17,907 and $35,380 in those same periods. $1,271 of this $17,907 capital contribution was funded in January 2015. The LSC Entities used the contributed capital to pay premiums and purchase policies. The Company’s investments in life settlements and premium finance loans were approximately $264,517 and $233,024 as of December 31, 2014 and 2013, respectively, and are included in Prepaid expenses and other assets on the Consolidated Balance Sheet. The Company recorded a gain on investment on investment in life settlement contracts net of profit commission of approximately $12,306, $3,800 and $13,822 for the years ended December 31, 2014, 2013 and 2012, respectively, related to the life settlement contracts. | ||||||||||||
As of December 31, 2014, the LSC Entities owned no premium finance loans. As of December 31, 2013, the LSC Entities owned two premium finance loans, which were secured by the underlying life insurance policies and were carried at a value of $0 at December 31, 2013. | ||||||||||||
The following tables describe the Company’s investment in life settlements as of December 31, 2014 and 2013: | ||||||||||||
(Amounts in thousands, except | Number of | Fair Value (1) | Face Value | |||||||||
Life Settlement Contracts) | Life Settlement | |||||||||||
Expected Maturity Term in Years | Contracts | |||||||||||
As of December 31, 2014 | ||||||||||||
0 – 1 | — | $ | — | $ | — | |||||||
1 – 2 | — | — | — | |||||||||
2 – 3 | 8 | 43,593 | 70,500 | |||||||||
3 – 4 | 5 | 10,081 | 22,500 | |||||||||
4 – 5 | 7 | 14,335 | 49,000 | |||||||||
Thereafter | 254 | 196,508 | 1,596,209 | |||||||||
Total | 274 | $ | 264,517 | $ | 1,738,209 | |||||||
As of December 31, 2013 | ||||||||||||
0 – 1 | — | $ | — | $ | — | |||||||
1 – 2 | — | — | — | |||||||||
2 – 3 | 1 | 2,726 | 5,000 | |||||||||
3 – 4 | 13 | 53,767 | 103,000 | |||||||||
4 – 5 | 2 | 5,622 | 13,000 | |||||||||
Thereafter | 255 | 170,909 | 1,641,409 | |||||||||
Total | 271 | $ | 233,024 | $ | 1,762,409 | |||||||
(1) The Company determined the fair value as of December 31, 2014 based on 218 policies out of 274 policies, as the Company assigned no value to 56 of the policies as of December 31, 2014. The Company determined the fair value as of December 31, 2013 based on 191 policies out of 271 policies, as the Company assigned no value to 80 of the policies as of December 31, 2013. The Company estimates the fair value of a life insurance policy using a cash flow model with an appropriate discount rate. In some cases, the cash flow model calculates the value of an individual policy to be negative, and therefore the fair value of the policy is zero as no liability exists when a negative value is calculated. The Company is not contractually bound to pay the premium on its life settlement contracts and, therefore, would not pay a willing buyer to assume title of these contracts. Additionally, certain of the Company’s acquired polices were structured to have low premium payments at inception of the policy term, which later escalate greatly towards the tail end of the policy term. At the current time, the Company expenses all premiums paid, even on policies with zero fair value. Once the premium payments escalate, the Company may allow the policies to lapse. In the event that death benefits are realized in the time frame between initial acquisition and premium escalation, it is a benefit to cash flow. | ||||||||||||
For these contracts where the Company determined the fair value to be negative and therefore assigned a fair value of zero, the table below details the amount of premiums paid and the death benefits received for the years ended December 31, 2014 and 2013: | ||||||||||||
2014 | 2013 | |||||||||||
Number of policies with a negative value from discounted cash flow model | 56 | 80 | ||||||||||
Premiums paid for the year ended | $ | 5,963 | $ | 9,371 | ||||||||
Death benefit received | $ | 4,950 | $ | 3,012 | ||||||||
Premiums to be paid by the LSC Entities for each of the five succeeding fiscal years to keep the life insurance policies in force as of December 31, 2014, are as follows: | ||||||||||||
(Amounts in Thousands) | Premiums | |||||||||||
Due on Life | ||||||||||||
Settlement | ||||||||||||
Contracts | ||||||||||||
2015 | $ | 40,961 | ||||||||||
2016 | 54,208 | |||||||||||
2017 | 52,291 | |||||||||||
2018 | 40,117 | |||||||||||
2019 | 39,777 | |||||||||||
Thereafter | 552,579 | |||||||||||
$ | 779,933 | |||||||||||
Deferred_Policy_Acquisition_Co
Deferred Policy Acquisition Costs | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs | ||||||||||||
The following table reflects the amounts of policy acquisition costs deferred and amortized for the years ended December 31, 2014, 2013 and 2012 as follows: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 468,404 | $ | 349,126 | $ | 280,991 | |||||||
Acquisition costs deferred | 698,689 | 486,566 | 311,022 | ||||||||||
Amortization | (538,710 | ) | (367,288 | ) | (242,887 | ) | |||||||
Balance, end of period | $ | 628,383 | $ | 468,404 | $ | 349,126 | |||||||
Intangible_Assets_and_Goodwill
Intangible Assets and Goodwill | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets and Goodwill | ||||||||||||||||
The composition of goodwill and intangible assets is summarized as follows: | |||||||||||||||||
(Amounts in Thousands) | Gross | Accumulated | Net Value | Useful Life | |||||||||||||
As of December 31, 2014 | Balance | Amortization | |||||||||||||||
Goodwill | $ | 352,685 | $ | — | $ | 352,685 | Indefinite Life | ||||||||||
Renewal rights | 62,367 | 16,732 | 45,635 | 7 – 17 years | |||||||||||||
Distribution networks | 115,480 | 36,009 | 79,471 | 5 – 20 years | |||||||||||||
Software | 3,547 | 2,101 | 1,446 | 3 - 20 years | |||||||||||||
Customer relationships | 132,744 | 31,807 | 100,937 | 8 – 18 years | |||||||||||||
Trademarks | 5,220 | 5,132 | 88 | 15 years | |||||||||||||
Trademarks | 6,327 | — | 6,327 | Indefinite Life | |||||||||||||
Licenses | 12,608 | 6,151 | 6,457 | 5 - 50 years | |||||||||||||
Licenses | 25,055 | — | 25,055 | Indefinite Life | |||||||||||||
Use rights | 41,468 | — | 41,468 | Indefinite Life | |||||||||||||
Other | 16,348 | 8,236 | 8,112 | 4 - 10 years | |||||||||||||
Total | $ | 773,849 | $ | 106,168 | $ | 667,681 | 13 years average | ||||||||||
(Amounts in Thousands) | Gross | Accumulated | Net Value | Useful Life | |||||||||||||
As of December 31, 2013 | Balance | Amortization | |||||||||||||||
Goodwill | $ | 373,591 | $ | — | $ | 373,591 | Indefinite Life | ||||||||||
Renewal rights | 30,880 | 11,438 | 19,442 | 7 – 17 years | |||||||||||||
Covenant not to compete | 7,756 | 7,692 | 64 | 3 – 9 years | |||||||||||||
Distribution networks | 100,163 | 28,136 | 72,027 | 10 – 20 years | |||||||||||||
Software | 2,266 | 2,076 | 190 | 20 years | |||||||||||||
Customer relationships | 132,266 | 18,215 | 114,051 | 8 – 18 years | |||||||||||||
Trademarks | 5,001 | 4,751 | 250 | 2 – 15 years | |||||||||||||
Trademarks | 6,460 | — | 6,460 | Indefinite Life | |||||||||||||
Licenses | 12,608 | 3,702 | 8,906 | 5 - 50 years | |||||||||||||
Licenses | 21,540 | — | 21,540 | Indefinite Life | |||||||||||||
Use rights | 38,507 | — | 38,507 | Indefinite Life | |||||||||||||
Other | 14,736 | 4,371 | 10,365 | 4 -10 years | |||||||||||||
Total | $ | 745,774 | $ | 80,381 | $ | 665,393 | 14 years average | ||||||||||
The Company identifies reporting units for goodwill impairment testing in accordance with ASC 350-20-35 Intangibles - Goodwill and Other. The Company generally combines reporting units, which are a component of an operating segment, when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment. For the years ended December 31, 2014 and 2013, the Company had seven reporting units that it tested for goodwill impairment, which is tested as of October 1st. The Company had one reporting unit, Specialty Risk and Extended Warranty - Luxembourg reporting unit (“RU”), which was at risk of failing step 1 in the goodwill impairment test required under ASC 350 Intangibles - Goodwill and Other. This RU had $121,761 and $96,866 of goodwill as of the test date in 2014 and 2013, respectively. For the RU, a step 1 analysis was performed to determine whether an impairment existed using an October 1st measurement date. Since Luxembourg reinsurance companies are regularly bought and sold between third parties and the transaction data information is available, the Guideline Transactions Method of the Market Approach was utilized to determine the fair value of the RU. The Guideline Transactions Method is based on valuation multiples derived from actual transactions for comparable companies and was used to develop an estimate of value for the subject company. In applying this method, valuation multiples are derived from historical data of selected transactions, then evaluated and adjusted, if necessary, based on the strengths and weaknesses of the subject company relative to the derived market data. In the case of the RU, the most appropriate multiple to utilize was determined to be a Price to Invested Assets (“P/IA”) multiple, since invested assets and the corresponding regulatory reserves are metrics utilized by market participants to negotiate the purchase price of the transaction. These P/IA multiples are then applied to the appropriate invested assets of the subject company to arrive at an indication of fair value. Step 1 of the impairment test indicated that the RU’s carrying value exceeded its fair value. Accordingly, the Company performed a Step 2 impairment test and recorded a non-cash goodwill impairment charge of $61,512, $10,226 and $16,389 as of December 31, 2014, 2013, and 2012, respectively. Additionally, certain goodwill attributable to the Specialty Risk and Extended Warranty - Europe RU was impaired for $1,386 due to deterioration in a subsidiary's operating performance with which the goodwill was associated. | |||||||||||||||||
The changes in the carrying amount of goodwill by segment for the years ended December 31, 2014 and 2013 are as follows: | |||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty Program | Total | |||||||||||||
Commercial | Risk and | ||||||||||||||||
Business | Extended | ||||||||||||||||
Warranty | |||||||||||||||||
Balance as of January 1, 2013 | $ | 116,272 | $ | 194,554 | $ | 15,820 | $ | 326,646 | |||||||||
Goodwill additions | — | 54,932 | 2,121 | 57,053 | |||||||||||||
Goodwill impairment | — | (10,226 | ) | — | (10,226 | ) | |||||||||||
Foreign currency translation | — | 118 | — | 118 | |||||||||||||
Balance as of January 1, 2014 | $ | 116,272 | $ | 239,378 | $ | 17,941 | $ | 373,591 | |||||||||
Goodwill additions | 24,304 | 18,617 | 42,921 | ||||||||||||||
Goodwill impairment | — | (62,898 | ) | — | (62,898 | ) | |||||||||||
Foreign currency translation | — | (929 | ) | — | (929 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 140,576 | $ | 194,168 | $ | 17,941 | $ | 352,685 | |||||||||
Goodwill added during 2014 resulted primarily from the acquisitions of Insco Dico and Comp Options in the Small Commercial Business segment as well as certain insignificant acquisitions in the Specialty Risk and Extended Warranty segment. Goodwill added during 2013 resulted primarily from the acquisitions of AmTrust Re Aries S.A., AmTrust Re Taurus S.A., and AMTCS in the Specialty Risk and Extended Warranty segment. | |||||||||||||||||
Finite lived intangible assets are generally amortized under the straight-line method, except for renewal rights, which the Company amortizes using a 125% accelerated method, and certain customer relationships, which are amortized based on cash flows associated with the respective customer relationships. Amortization expense for 2014, 2013 and 2012 was $33,543, $31,667 and $17,169, respectively. The estimated aggregate amortization expense for each of the next five years is: | |||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
2015 | $ | 38,727 | |||||||||||||||
2016 | 35,972 | ||||||||||||||||
2017 | 30,336 | ||||||||||||||||
2018 | 25,249 | ||||||||||||||||
2019 | 23,501 | ||||||||||||||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Propert and Equipment, Net | Property and Equipment, Net | ||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||
As of December 31, | |||||||||
Land | $ | 7,593 | $ | 7,593 | |||||
Building | 25,478 | 23,284 | |||||||
Software | 92,211 | 65,699 | |||||||
Computer equipment | 41,924 | 27,575 | |||||||
Other equipment | 53,529 | 19,881 | |||||||
Leasehold improvements | 25,691 | 22,968 | |||||||
246,426 | 167,000 | ||||||||
Less: Accumulated depreciation and amortization | (92,251 | ) | (62,701 | ) | |||||
$ | 154,175 | $ | 104,299 | ||||||
Depreciation expense was $29,550, $21,451 and $13,221 for the years ended December 31, 2014, 2013 and 2012. |
Liability_for_Unpaid_Loss_and_
Liability for Unpaid Loss and LAE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Liability for Unpaid Loss and LAE | Liability for Unpaid Loss and LAE | ||||||||||||
The following table provides a reconciliation of the beginning and ending balances for unpaid losses and LAE, reported in the accompanying consolidated balance sheets as of December 31, 2014, 2013 and 2012: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Unpaid losses and LAE, gross of related reinsurance recoverables at beginning of year | $ | 4,368,234 | $ | 2,426,400 | $ | 1,879,175 | |||||||
Less: Reinsurance recoverables at beginning of year | 1,739,689 | 1,180,212 | 972,392 | ||||||||||
Net balance, beginning of year | 2,628,545 | 1,246,188 | 906,783 | ||||||||||
Incurred related to: | |||||||||||||
Current year | 2,324,062 | 1,486,418 | 909,818 | ||||||||||
Prior year | 18,557 | 30,943 | 12,857 | ||||||||||
Total incurred losses during the year | 2,342,619 | 1,517,361 | 922,675 | ||||||||||
Paid losses and LAE related to: | |||||||||||||
Current year | (886,724 | ) | (617,539 | ) | (406,238 | ) | |||||||
Prior year | (554,495 | ) | (335,621 | ) | (285,479 | ) | |||||||
Total payments for losses and LAE | (1,441,219 | ) | (953,160 | ) | (691,717 | ) | |||||||
Commuted loss reserves | — | — | 91,529 | ||||||||||
Acquired outstanding loss and loss adjustment reserve | 71,755 | 807,592 | 13,137 | ||||||||||
Effect of foreign exchange rates | (86,939 | ) | 10,564 | 3,781 | |||||||||
Net balance, December 31 | 3,514,761 | 2,628,545 | 1,246,188 | ||||||||||
Plus reinsurance recoverables at end of year | 2,149,444 | 1,739,689 | 1,180,212 | ||||||||||
Unpaid losses and LAE, gross of related reinsurance recoverables at end of year | $ | 5,664,205 | $ | 4,368,234 | $ | 2,426,400 | |||||||
In 2014, 2013 and 2012, the Company’s liabilities for unpaid losses and LAE attributable to prior years increased by $18,557, $30,943 and $12,857, respectively, primarily as a result of unfavorable loss development due to higher actuarial estimates based on actual losses. The percentage of the Company's unpaid losses and LAE related to IBNR was 49.6%, 42.4% and 34.5% as of December 31, 2014, 2013 and 2012, respectively. In setting its reserves, the Company utilizes a combination of Company loss development factors and industry-wide loss development factors. In the event that the Company’s losses develop more favorably than the industry, as a whole, the Company’s liabilities for unpaid losses and LAE should decrease. Management believes that its use of both its historical experience and industry-wide loss development factors provide a reasonable basis for estimating future losses. As the Company has written more business and developed more credible data, the Company has assigned more weight to its historical experience than to industry-wide results. In either case, future events beyond the control of management, such as changes in law, judicial interpretations of law, and inflation may favorably or unfavorably impact the ultimate settlement of the Company’s loss and LAE. | |||||||||||||
The anticipated effect of inflation is implicitly considered when estimating liabilities for losses and LAE. While anticipated changes in claim costs due to inflation are considered in estimating the ultimate claim costs, the increase in average severity of claims is caused by a number of factors that vary with the individual type of policy written. Future average severities are projected based on historical trends adjusted for implemented changes in underwriting standards, policy provisions, and general economic trends. Those anticipated trends are monitored based on actual development and are modified if necessary. |
Accrued_Expenses_and_Other_Lia
Accrued Expenses and Other Liabilities | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Payable and Accrued Liabilities [Abstract] | |||||||||
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities | ||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||
As of December 31, | |||||||||
Premium taxes, assessments and surcharges payable | $ | 171,512 | $ | 173,274 | |||||
Accounts and commissions payable | 157,232 | 100,780 | |||||||
Deferred warranty revenue | 138,592 | 84,230 | |||||||
Redeemable contractual obligations | 111,748 | 132,608 | |||||||
Income tax payable | 100,410 | 9,181 | |||||||
Other accrued expenses and liabilities | 116,383 | 172,502 | |||||||
$ | 795,877 | $ | 672,575 | ||||||
Debt
Debt | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Debt | Debt | ||||||||||||||||||||||||
The Company’s outstanding debt consisted of the following at December 31, 2014 and 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
Revolving credit facility | $ | 120,000 | $ | — | |||||||||||||||||||||
5.5% Convertible senior notes due 2021 (the "2021 Notes") | 56,745 | 164,218 | |||||||||||||||||||||||
2.75% Convertible senior notes due 2044 (the "2044 Notes") | 157,679 | — | |||||||||||||||||||||||
6.125% Notes due 2023 | 250,000 | 250,000 | |||||||||||||||||||||||
Subordinated debentures | 123,714 | 123,714 | |||||||||||||||||||||||
Secured loan agreements | 35,233 | 7,742 | |||||||||||||||||||||||
Promissory notes | 14,500 | 14,500 | |||||||||||||||||||||||
$ | 757,871 | $ | 560,174 | ||||||||||||||||||||||
Aggregate scheduled maturities of the Company’s outstanding debt at December 31, 2014 are: | |||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||
2015 | $ | 168,689 | (1) | ||||||||||||||||||||||
2016 | 7,186 | ||||||||||||||||||||||||
2017 | 7,377 | ||||||||||||||||||||||||
2018 | 9,400 | ||||||||||||||||||||||||
2019 | 4,269 | ||||||||||||||||||||||||
Thereafter | 560,950 | (2) | |||||||||||||||||||||||
(1) | Amount includes debt outstanding under revolving credit facility as of December 31, 2014 that was paid down in 2015, amount of 2021 Notes, net of $8,417 unamortized original issue discount, submitted for conversion in 2014 that were settled in 2015 as discussed in Note 27. "Subsequent Events", as well as principal payments under our secured loan agreements. | ||||||||||||||||||||||||
(2) | Amount reflected in balance sheet for the 2021 Notes and the 2044 Notes is net of unamortized original issue discount of $2,957 and $53,245, respectively. | ||||||||||||||||||||||||
Revolving Credit Agreement | |||||||||||||||||||||||||
On September 12, 2014, the Company entered into a five-year, $350,000 credit agreement (the “Credit Agreement”), among JPMorgan Chase Bank, N.A., as Administrative Agent, KeyBank National Association and SunTrust Bank, as Co-Syndication Agents, Lloyd's Bank PLC and Associated Bank, as Co-Documentation Agents and the various lending institutions party thereto. The credit facility is a revolving credit facility with a letter of credit sublimit of $175,000 and an expansion feature of not more than an additional $150,000. The Credit Agreement has a maturity date of September 12, 2019. In connection with entering into the Credit Agreement, the Company terminated its existing $200,000 credit agreement (the "Preceding Credit Agreement"), dated August 10, 2012, with JPMorgan Chase Bank, N.A., as Administrative Agent, KeyBank National Association and SunTrust Bank, as Co-Syndication Agents, Associated Bank, National Association and Lloyds Securities Inc., as Co-Documentation Agents, and the various lending institutions party thereto. Letters of credit issued and outstanding under the Preceding Credit Agreement were deemed issued and outstanding under the Credit Agreement. Deferred origination costs associated with the Credit Agreement were approximately $967 and are being amortized into interest expense over the term of the Credit Agreement. | |||||||||||||||||||||||||
The Credit Agreement contains certain restrictive covenants customary for facilities of this type (subject to negotiated exceptions and baskets), including restrictions on indebtedness, liens, acquisitions and investments, restricted payments and dispositions. There are also financial covenants that require the Company to maintain a minimum consolidated net worth, a maximum consolidated leverage ratio, a minimum consolidated fixed charge coverage ratio, a minimum consolidated risk-based capital and a minimum consolidated statutory surplus. The Company was in compliance with all of its covenants as of December 31, 2014. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had $120,000 of borrowings and $97,346 letters of credit outstanding under this Credit Agreement, which reduced the availability for letters of credit to $77,654, and the total aggregate availability under the facility to $132,654. | |||||||||||||||||||||||||
Borrowings under the Credit Agreement bear interest at either the Alternate Base Rate or the LIBO rate. Borrowings bearing interest at a rate determined by reference to the Alternate Base Rate will bear interest at (x) the greatest of (a) the administrative agent’s prime rate, (b) the federal funds effective rate plus 0.5%, or (c) the adjusted LIBO rate for a one-month interest period on such day plus 1.0%, plus (y) a margin ranging from 0.125% to 0.625%, adjusted on the basis of the Company’s consolidated leverage ratio. Eurodollar borrowings will bear interest at the adjusted LIBO rate for the interest period in effect plus a margin ranging from 1.125% to 1.625%, adjusted on the basis of the Company’s consolidated leverage ratio. The interest rate on the outstanding borrowings under this credit facility as of December 31, 2014 range from 1.563% to 3.625%. | |||||||||||||||||||||||||
Fees payable by the Company under the Credit Agreement include a letter of credit participation fee (equal to the margin applicable to Eurodollar borrowings), a letter of credit fronting fee with respect to each letter of credit (0.125%) and a commitment fee on the available commitments of the lenders (a range of 0.15% to 0.25% based on the Company’s consolidated leverage ratio, which was 0.175%). | |||||||||||||||||||||||||
Interest expense, including amortization of the deferred origination costs and fees associated with the letters of credit under the Credit Agreement and the Preceding Credit Agreement, was approximately $1,662, $1,752, and $1,884 for the year ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
Convertible Senior Notes | |||||||||||||||||||||||||
5.5% Convertible Senior Notes due 2021 | |||||||||||||||||||||||||
In December 2011 and January 2012, the Company issued $200,000 in aggregate principal amount of its 2021 Notes. The 2021 Notes will mature on December 15, 2021 (the “Maturity Date”), unless earlier purchased by the Company or converted into shares of the Company’s common stock, par value $0.01 per share (the “Common Stock”). Prior to September 15, 2021, the 2021 Notes will be convertible only in the following circumstances: (i) during any fiscal quarter, and only during any such fiscal quarter, if the last reported sale price of the Company’s Common Stock was greater than or equal to 130% of the applicable conversion price for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on the last trading day of the previous fiscal quarter (the “Sale Price Condition”); (ii) during the five consecutive business day period following any five consecutive trading day period in which, for each day of that period, the trading price for the 2021 Notes was less than 98% of the product of the last reported sale price of the Company’s Common Stock and the applicable conversion rate on such trading day; or (iii) upon the occurrence of specified corporate transactions. On or after September 15, 2021, the 2021 Notes will be convertible at any time prior to the close of business on the second scheduled trading day immediately preceding the Maturity Date. The conversion rate at December 31, 2014 is equal to 38.5985 shares of Common Stock per $1,000 principal amount of 2021 Notes, which corresponds to a conversion price of approximately $25.91 per share of Common Stock. The conversion rate is subject to adjustment upon the occurrence of certain events as set forth in the indenture governing the 2021 Notes. Upon conversion of the 2021 Notes, the Company will, at its election, pay or deliver, as the case may be, cash, shares of Common Stock, or a combination of cash and shares of Common Stock. As of October 1, 2014, the 2021 Notes were convertible under the Sale Price Condition. | |||||||||||||||||||||||||
Upon the occurrence of a fundamental change (as defined in the indenture governing the notes) involving the Company, holders of the 2021 Notes will have the right to require the Company to repurchase their 2021 Notes for cash, in whole or in part, at 100% of the principal amount of the 2021 Notes to be repurchased, plus any accrued and unpaid interest, if any, to, but excluding, the fundamental change purchase date. | |||||||||||||||||||||||||
During 2014, the Company entered into separate, privately negotiated exchange agreements under which the Company retired $131,881 in aggregate principal amount of its outstanding 2021 Notes in exchange for the issuance of 2044 Notes in an aggregate principal amount of $158,257 and the issuance of 2,731,727 shares of Common Stock. As of December 31, 2014, $68,119 in aggregate principal amount of the 2021 Notes remain outstanding with terms unchanged. Please see the description of the 2044 Notes below. | |||||||||||||||||||||||||
As of December 31, 2014, certain of the remaining 2021 Notes holders had submitted approximately $50,105 of the remaining $68,119 2021 Notes for conversion under the Sale Price Condition described above. Based on the terms of the 2021 Notes, the conversions will settle during the first three months of 2015. | |||||||||||||||||||||||||
The Company separately allocated the proceeds for the issuance of the 2021 Notes to a liability component and an equity component, which is the embedded conversion option. The equity component was reported as an adjustment to paid-in-capital, net of tax, and is reflected as an original issue discount (“OID”). The OID of $41,679 and deferred origination costs relating to the liability component of $4,750 are being amortized into interest expense over the term of the 2021 Notes. After considering the contractual interest payments and amortization of the original discount, the effective interest rate of the 2021 Notes was 8.57%. Transaction costs of $1,250 associated with the equity component were netted in paid-in-capital. Interest expense, including amortization of OID and deferred origination costs, recognized on the 2021 Notes was $13,933, $14,476, and $14,031 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||||||
2.75% Convertible Senior Notes due 2044 | |||||||||||||||||||||||||
As described above, during 2014, the Company entered into separate, privately negotiated exchange agreements under which the Company retired $131,881 in aggregate principal amount of the outstanding 2021 Notes in exchange for issuance of a new series of 2.75% 2044 Notes in an aggregate principal amount of $158,257 and the issuance of 2,731,727 shares of Common Stock. The Company also entered into separate, privately negotiated purchase agreements (the “Purchase Agreements”) to issue an additional $76,000 in aggregate principal amount of the 2044 Notes for a price equal to 90% of their face value. | |||||||||||||||||||||||||
The principal amount of the 2044 Notes accretes at a rate of 6% per year compounding on a semi-annual basis, until December 15, 2024. The accreted portion of the principal is payable in cash upon maturity but does not bear cash interest and is not convertible into shares of Common Stock. The 2044 Notes will mature on December 15, 2044 (the “Maturity Date”), unless earlier repurchased or redeemed by the Company or converted. On or before December 15, 2018, the 2044 Notes will be subject to redemption for cash, in whole or in part, at the Company’s option, provided the trading price of Common Stock equals or exceeds $97.50 (or 130% of the then applicable conversion price) for the required measurement period, at a redemption price equal to 100% of the principal amount of the 2044 Notes to be redeemed, plus any accrued and unpaid interest. Thereafter, the 2044 Notes will be subject to redemption for cash, in whole or in part, at the Company’s option at a redemption price equal to 100% of the accreted amount of the 2044 Notes to be redeemed, plus any accrued and unpaid interest. In addition, holders of the 2044 Notes will have the right to require the Company to purchase their 2044 Notes for cash, in whole or in part, on December 15, 2024 or upon the occurrence of a fundamental change. In each such case, the repurchase price would be 100% of the principal amount of the 2044 Notes being repurchased, plus any accrued and unpaid interest. | |||||||||||||||||||||||||
The 2044 Notes will bear interest at a rate of 2.75% per annum, payable semi-annually in arrears on June 15th and December 15th of each year, beginning on June 15, 2015. Beginning with the six-month period starting December 15, 2021, holders of the 2044 Notes will receive contingent interest for certain periods if the trading price of the 2044 Notes is greater than or equal to 130% of the principal amount of the 2044 Notes. The amount of contingent interest payable per $1,000 principal amount of 2044 Notes in respect of any contingent interest period is equal to 0.25% of the average trading price of the 2044 Notes during the specified measurement period. Any contingent interest payable on the 2044 Notes will be in addition to the regular interest payable on the 2044 Notes. The 2044 Notes will rank pari passu with the Company’s existing and future senior unsecured debt, including the 2021 Notes that will remain outstanding. The 2044 Notes will be effectively subordinated to the existing and future secured indebtedness of the Company to the extent of the value of the collateral securing those obligations and structurally subordinated to the existing and future indebtedness of the Company’s subsidiaries. | |||||||||||||||||||||||||
Each $1,000 principal amount at maturity of 2044 Notes will have an issue price of $900 for purposes of the indenture for the 2044 Notes. An amount equal to the difference between the issue price and the principal amount at maturity will accrue in accordance with a schedule to be set forth in the indenture. The issue price plus such accrued amount per $1,000 principal amount at maturity of 2044 Notes is referred to herein as the “accreted principal amount.” | |||||||||||||||||||||||||
Pursuant to ASC 470-50 Debt - Modifications and Extinguishments, this exchange transaction is being accounted for as an extinguishment of debt because the terms of the two debt instruments are substantially different under the accounting rules. The Company retired $131,881of the outstanding 2021 Notes with a carrying value of $110,346 and wrote-off unamortized debt issuance costs of $2,195. The 2044 Notes issued as part of the exchange had a fair value of $117,982 which resulted in a loss on the early extinguishment of debt of $9,831. | |||||||||||||||||||||||||
The Company separately accounts for the liability and equity components of its 2044 Notes in a manner that reflects the Company's nonconvertible debt borrowing rate when interest is recognized in subsequent periods. The Company measured the debt component of the 2044 Notes using an effective interest rate of 7.46%. Upon issuance of the 2044 Notes in December 2014, in accordance with accounting standards related to convertible debt instruments that may be settled in cash upon conversion, the Company recorded an OID of $53,374, thereby reducing the initial carrying the value of the 2044 Notes from $210,831to $157,457 and recorded an equity component net of tax of $34,693. Interest expense, including amortization of OID and deferred origination costs, recognized on the 2044 Notes was $503 for the year ended December 31, 2014. | |||||||||||||||||||||||||
The following table shows the amounts recorded for the 2021 Notes and 2044 Notes as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Amounts in Thousands) | Outstanding Principal | Unamortized OID | Net Carrying Amount | Outstanding Principal | Unamortized OID | Net Carrying Amount | |||||||||||||||||||
2021 Notes | $ | 68,119 | $ | (11,374 | ) | $ | 56,745 | $ | 200,000 | $ | (35,782 | ) | $ | 164,218 | |||||||||||
2044 Notes | 210,924 | (53,245 | ) | 157,679 | — | — | — | ||||||||||||||||||
$ | 279,043 | $ | (64,619 | ) | $ | 214,424 | $ | 200,000 | $ | (35,782 | ) | $ | 164,218 | ||||||||||||
6.125% Notes due 2023 | |||||||||||||||||||||||||
In August 2013, the Company issued $250,000 aggregate principal amount of its 6.125% notes due 2023 (the "2023 Notes") to certain initial purchasers in a private placement. The 2023 Notes bear interest at a rate equal to 6.125% per year, payable semiannually in arrears on February 15th and August 15th of each year. The 2023 Notes will mature August 15, 2023, unless earlier purchased by the Company. Fees associated with the Notes we approximately $2,740. The indenture governing the Notes contains covenants whereby the interest rates will increase by 0.50% per year if the Company's consolidated leverage ratio exceeds 30% and does not exceed 35% and will increase an additional 1.00% per year (for an aggregate increase of 1.50% per year) if the consolidated leverage ratio exceeds 35%. The consolidated leverage ratio, as calculated under this agreement, was less than 30% as of December 31, 2014. It is an event of default if the Company has a consolidated leverage ratio in excess of 35% for a period of 30 days, unless in connection with an acquisition, in which case the grace period is 18 months. The indenture governing the 2023 Notes also contains customary covenants, such as reporting of annual and quarterly financial results, and restrictions on certain mergers and consolidations, a limitation on liens, and a limitation on the disposition of stock of certain of the Company's subsidiaries. The 2023 Notes rank equally with existing and future unsecured and unsubordinated indebtedness, including the Company's convertible senior notes and amounts under the Credit Agreement. Interest expense, including amortization of deferred origination costs, recognized on the 2023 Notes was approximately $15,587 and $5,845 for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Junior Subordinated Debt | |||||||||||||||||||||||||
The Company has established four special purpose trusts for the purpose of issuing trust preferred securities. The proceeds from such issuances, together with the proceeds of the related issuances of common securities of the trusts, were invested by the trusts in junior subordinated debentures issued by the Company. In accordance with FASB ASC 810-10-25, the Company does not consolidate such special purpose trusts, as the Company is not considered to be the primary beneficiary. The equity investment, totaling $3,714 as of December 31, 2014 on the Company’s consolidated balance sheet, represents the Company’s ownership of common securities issued by the trusts. The debentures require interest-only payments to be made on a quarterly basis, with principal due at maturity. The debentures contain covenants that restrict declaration of dividends on the Company’s common stock under certain circumstances, including default of payment. The Company incurred $2,605 of placement fees in connection with these issuances which is being amortized over thirty years. The Company recorded $8,100, $8,099 and $8,297 of interest expense for the years ended December 31, 2014, 2013 and 2012, respectively, related to these trust preferred securities. | |||||||||||||||||||||||||
The table below summarizes the Company’s trust preferred securities as of December 31, 2014: | |||||||||||||||||||||||||
(Amounts in Thousands) | Aggregate | Aggregate | Aggregate | Stated | Per Annum | ||||||||||||||||||||
Name of Trust | Liquidation | Liquidation | Principal | Maturity of | Interest | ||||||||||||||||||||
Amount of | Amount of | Amount of | Notes | Rate of | |||||||||||||||||||||
Trust Preferred | Common | Notes | Notes | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
AmTrust Capital Financing Trust I | $ | 25,000 | $ | 774 | $ | 25,774 | 3/17/35 | 8.275 | (1) | ||||||||||||||||
AmTrust Capital Financing Trust II | 25,000 | 774 | 25,774 | 6/15/35 | 7.71 | (1) | |||||||||||||||||||
AmTrust Capital Financing Trust III | 30,000 | 928 | 30,928 | 9/15/36 | 3.541 | (2) | |||||||||||||||||||
AmTrust Capital Financing Trust IV | 40,000 | 1,238 | 41,238 | 3/15/37 | 3.241 | (3) | |||||||||||||||||||
Total trust preferred securities | $ | 120,000 | $ | 3,714 | $ | 123,714 | |||||||||||||||||||
-1 | The interest rate will change to three-month LIBOR plus 3.40% after the tenth anniversary in 2015. | ||||||||||||||||||||||||
-2 | The interest rate is LIBOR plus 3.30%. | ||||||||||||||||||||||||
-3 | The interest rate is LIBOR plus 3.00%. | ||||||||||||||||||||||||
The Company entered into two interest rate swap agreements related to these junior subordinated debentures, which effectively convert the interest rate on the trust preferred securities from a variable rate to a fixed rate. Each agreement is for a period of 5 years and commenced on September 15, 2011 for tranche III and March 15, 2012 for tranche IV. | |||||||||||||||||||||||||
Secured Loan Agreements | |||||||||||||||||||||||||
The Company, through a wholly-owned subsidiary, has a seven year secured loan agreement with Bank of America Leasing & Capital, LLC in the aggregate amount of $10,800 to finance the purchase of an aircraft. The loan bears interest at a fixed rate of 4.45%, requires monthly installment payments of approximately $117 through February 25, 2018, and a balloon payment of $2,970 at the maturity date. The Company recorded interest expense of approximately $330, $380 and $432 for the years ended December 31, 2014, 2013 and 2012, respectively, related to this agreement. The loan is secured by the aircraft. | |||||||||||||||||||||||||
The agreement contains certain covenants that are similar to the Credit Agreement. Additionally, subsequent to February 25, 2012, but prior to payment in full, if the outstanding balance of this loan exceeds 90% of the fair value of the aircraft, the Company is required to pay the lender the entire amount necessary to reduce the outstanding principal balance to be equal to or less than 90% of the fair value of the aircraft. During 2013, the Company paid an additional $270 to reduce the outstanding principal balance as required by these terms. The agreement allows the Company, under certain conditions, to repay the entire outstanding principal balance of this loan without penalty. | |||||||||||||||||||||||||
On August 29, 2014, the Company entered into a five-year secured loan agreement with Key Equipment Finance, which was subsequently assigned to RBS Citizens Bank, in the aggregate amount of $30,500 to finance the purchase of an aircraft. The loan bears interest at a fixed rate of 2.27% per annum and requires monthly installment payments of approximately $538 through August 31, 2019. The Company recorded interest expense of approximately $227 for the year ended December 31, 2014. The loan is secured by the aircraft. | |||||||||||||||||||||||||
Promissory Notes | |||||||||||||||||||||||||
In September 2012, as part of its participation in the New Market Tax Credit Program discussed in Note 21. "New Market Tax Credit", the Company entered into two promissory notes totaling $8,000. The loans are for a period of 15 years and have an average interest rate of 1.7% per annum. The Company recorded approximately $1,430 of deferred origination costs associated with the promissory notes. The Company recorded interest expense of approximately $312, $290, and $100 for the years ended December 31, 2014, 2013 and 2012, respectively, related to the promissory notes. | |||||||||||||||||||||||||
The Company assumed two promissory notes in 2013 totaling $6,500 as a result of its acquisition of MIHC as discussed in Note 5. "Significant Acquisitions". The principal of these notes is due in 2034 and 2035. The notes require the payment of interest on a quarterly basis and have an interest rate of 3.8% plus the three months LIBOR per annum, which was 4.1% as of December 31, 2014. The Company recorded $365 and $210 of interest expense related to these notes for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||||||||||||||
ING Credit Agreement | |||||||||||||||||||||||||
On November 25, 2014, AmTrust Financial Services, Inc. (as Guarantor), and four of its wholly-owned subsidiaries, AmTrust International Insurance, Ltd. (as Account Party), AmTrust Corporate Capital Limited, AmTrust Corporate Member Limited and AmTrust Corporate Member Two Limited (as Corporate Members and collectively with the Guarantor and the Account Party, the “Company”) entered into an Amended and Restated Agreement ("Amended and Restated Credit Facility") relating to its £200,000 credit facility agreement ("Preceding Credit Facility") with ING Bank, N.V., London Branch, individually and as Agent and Security Trustee. The Amended and Restated Credit Facility increases the maximum amount of the letter of credit facility to £235,000 to be used to support the Company’s capacity at Lloyd’s as a member and/or reinsurer of Syndicates 2526, 1206 and 44 for the 2015 underwriting year of account, as well as prior open years of account. Letters of credit issued and outstanding under the Preceding Credit Facility were deemed issued and outstanding under the Amended and Restated Credit Facility. | |||||||||||||||||||||||||
The Amended and Restated Credit Facility contains customary covenants for facilities of this type, including restrictions on indebtedness and liens, limitations on mergers, transactions with affiliates and the sale of assets, and requirements to maintain certain consolidated net worth, statutory surplus, leverage and fixed charge coverage ratios. The Amended and Restated Credit Facility also provides for customary events of default, including, without limitation, failure to pay principal, interest or fees when due, failure to comply with certain covenants, any representation or warranty made by the Company being false or misleading in any material respect, default under certain other indebtedness, certain insolvency or receivership events affecting the Company and its subsidiaries, the occurrence of certain material judgments, or a change in control of the Account Party or the Corporate Member. Upon an event of default, the lender may immediately terminate its obligations to issue letters of credit, declare the Company’s obligations under the amended and restated credit facility to become immediately due and payable, and require the Company to deposit collateral with a value equal to 100%of the aggregate face amount of any outstanding letters of credit consisting of cash or other specified collateral including time deposits, certificates of deposit, money market deposits and U.S. government securities subject to varying advance rates. | |||||||||||||||||||||||||
The ability to have letters of credit issued under this amended and restated facility expires on December 31, 2015 and the maturity date for the facility is July 31, 2019. The facility is 40% secured by a pledge of a collateral account established in the United States pursuant to a pledge and security agreement and in the United Kingdom pursuant to a Deed of Charge dated as of November 26, 2013. In addition to upon an event of default as discussed above, the collateral account will be required to be 100% funded upon the occurrence of certain specified events, including the A.M. Best financial strength rating of the Account Party falling below A-, the forecast underwriting losses exceeding a certain level for any year supported by a letter of credit, or any non-extension notice is given with respect to any letter of credit. | |||||||||||||||||||||||||
Fees payable by the Company under the Amended and Restated Credit Facility include a letter of credit issuance fee, payable quarterly in arrears, on the secured portion of the letters of credit at the rate of 0.50% and on the unsecured potion of the letters of credit determined based on the Account Party’s then-current financial strength rating issued by A.M. Best. As of December 31, 2014, the applicable letter of credit fee rate on the unsecured portion was 1.15% based on the Account Party’s A.M. Best financial strength rating of “A”. The Company also pays a commitment fee of 0.35% per year on the aggregate unutilized and un-canceled amount of the facility, and a facility fee upon closing of 0.15% of the total aggregate commitment. | |||||||||||||||||||||||||
As of December 31, 2014, the Company had outstanding letters of credit of £227,989 (or $355,178) in place under the Amended and Restated Credit Facility. The aggregate unutilized amount under this facility was £7,011 (or $10,923) as of December 31, 2014. The Company recorded total interest expense of $2,795 for the year ended December 31, 2014 under the Amended and Restated Credit Facility. Interest expense recorded in 2013 under the Preceding Credit Facility was not material. | |||||||||||||||||||||||||
Other Letters of Credit | |||||||||||||||||||||||||
The Company, through one of its subsidiaries, has a secured letter of credit facility with Comerica Bank.The Company utilizes this letter of credit facility to comply with the deposit requirements of the State of California and the U.S. Department of Labor as security for the Company's obligations to workers' compensation and Federal Longshore and Harbor Workers' Compensation Act policyholders. The credit limit is for $75,000, of which $48,467 was utilized as of December 31, 2014. The Company is required to pay a letter of credit participation fee for each letter of credit in the amount of 0.40%. | |||||||||||||||||||||||||
The Company, through certain subsidiaries, has additional existing stand-by letters of credit with various lenders in the amount of $6,265 as of December 31, 2014. |
Reinsurance
Reinsurance | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||
Reinsurance | Reinsurance | ||||||||||||||||||||||||
The Company structures its reinsurance programs by analyzing its tolerance for risk in each line of business and on an overall consolidated basis, based on a number of factors, including market conditions, pricing, competition and the inherent risks associated with each business type. Based on its analysis of these factors, the Company may determine not to purchase reinsurance for some lines of business. The Company generally purchases reinsurance to reduce its net liability on individual risks and to protect against catastrophe losses and volatility. The Company retains underwriting risk in certain lines of business in order to retain a greater proportion of expected underwriting profits. The Company has chosen not to purchase any reinsurance on businesses where volatility or catastrophe risks are considered remote and policy limits are within its risk tolerance. | |||||||||||||||||||||||||
The Company purchases reinsurance on a proportional basis to cover loss frequency, individual risk severity and catastrophe exposure. The Company also purchases reinsurance on an excess of loss basis to cover individual risk, severity and catastrophe exposure. Additionally, the Company may obtain facultative reinsurance protection on a single risk. The type and amount of reinsurance the Company purchases varies year to year based on its risk assessment, its desired retention levels based on profitability and other considerations, and the market availability of quality reinsurance at prices the Company considers acceptable. Our reinsurance programs renew throughout the year, and the price changes in recent years have not been material to the Company's net underwriting results. The Company's reinsurance generally does not cover war or nuclear, biological, chemical or radiological terrorism risks. | |||||||||||||||||||||||||
In its proportional reinsurance programs, the Company generally receives a commission on the premium ceded to reinsurers. This “ceding commission” compensates the Company's insurance companies for the direct costs associated with production of the business, the servicing of the business during the term of the policies ceded, and the costs associated with placement of reinsurance that benefits the proportional programs. In addition, certain of the Company's reinsurance treaties allow it to share in any net profits generated under such treaties with the reinsurers. Various reinsurance brokers may arrange for the placement of this reinsurance coverage on the Company's behalf and are compensated, directly or indirectly, by the reinsurers. The Company also places reinsurance with direct markets and enters reinsurance relationships with third-party captives formed by agents and other business partners as a mechanism for sharing risk and profit. | |||||||||||||||||||||||||
In order to reduce its exposure to reinsurance credit risk, the Company evaluates the financial condition of its reinsurers and places its reinsurance with a diverse group of companies and syndicates that it believes to be financially sound. The Company carefully monitors the credit quality of its reinsurers when the Company places new and renewal reinsurance, as well as on an ongoing, current basis. The Company uses objective criteria to select and retain its reinsurers, including requiring minimum surplus of $500,000 and a financial strength rating of “A-” or better from A.M. Best Company, Inc. or Standard & Poor's Corporation. The Company approves exceptions to these criteria when warranted. | |||||||||||||||||||||||||
The Company monitors its financial exposure to the reinsurance market and takes necessary actions in an attempt to mitigate its exposure to possible loss. The Company limits its liquidity exposure for uncollected recoverables by holding funds, letters of credit or other security, with the result that net balances due from reinsurers are significantly less than the gross balances shown in its consolidated balance sheets. The Company monitors the collectability of its reinsurance recoverables and records a reserve for uncollectible reinsurance when it determines an amount is potentially uncollectible. The Company's evaluation is based on its periodic reviews of its disputed and aged recoverables, as well as its assessment of recoverables due from reinsurers known to be in financial difficulty. In some cases, the Company makes estimates as to what portion of a recoverable may be uncollectible. The Company's estimates and judgment about the collectability of the recoverables and the financial condition of reinsurers can change, and these changes can affect the level of reserve required. | |||||||||||||||||||||||||
Reinsurance Programs and Retentions | |||||||||||||||||||||||||
The following tables provide a summary of the Company's primary reinsurance programs as of December 31, 2014 for the United States and internationally: | |||||||||||||||||||||||||
(Amounts in Thousands) | 2014 Domestic Reinsurance Program | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Workers’ Compensation, Excess of Loss | $ | 5,000 | $ | 510,000 | 98.5% of $505,000 | ||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 2,000 | $ | 30,000 | 95% of $28,000 | ||||||||||||||||||||
Property, Occurrence Excess of loss | $ | 20,000 | $ | 400,000 | 99% of $380,000 | ||||||||||||||||||||
Surety, Excess of Loss | $ | 500 | $ | 20,000 | 70% of $19,500 | ||||||||||||||||||||
Casualty/Umbrella, Excess of Loss and Quota Share | $ | 2,500 | $ | 50,000 | 95% of $50,000 | ||||||||||||||||||||
Equipment Breakdown, Quota Share | $ | — | $ | 100,000 | 100% of $100,000 | ||||||||||||||||||||
(Amounts in Thousands) | 2014 International Reinsurance Program | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 800 | $ | 4,400 | 100% of $3,600 | ||||||||||||||||||||
Property, Occurrence Excess of Loss | $ | 8,000 | $ | 160,000 | 97% of $152,000 | ||||||||||||||||||||
Surety, Excess of Loss and Quota Share | $ | 4,500 | $ | 45,000 | 100% of $41,500 | ||||||||||||||||||||
Casualty, Excess of Loss | $ | 3,000 | $ | 15,000 | 100% of $12,000 | ||||||||||||||||||||
Latent Defect, Excess of Loss | $ | 3,200 | $ | 40,000 | 100% of $36,800 | ||||||||||||||||||||
Accident and Health, Excess of Loss | $ | 800 | $ | 32,000 | 100% of $31,200 | ||||||||||||||||||||
Car Care, Excess of Loss | $ | 1,000 | $ | 105,000 | 97.5% of $104,000 | ||||||||||||||||||||
Medical Malpractice, Quota Share | $ | 7,800 | $ | 13,000 | 40% of $13,000 | ||||||||||||||||||||
(Amounts in Thousands) | 2014 AmTrust at Lloyds Reinsurance Programs | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 1,600 | $ | 8,000 | 100% of $6,400 | ||||||||||||||||||||
Property, Occurrence Excess of Loss | $ | 20,000 | $ | 120,000 | 98% of $90,000 | ||||||||||||||||||||
Casualty, Excess of Loss | $ | 4,000 | $ | 20,000 | 100% of $16,000 | ||||||||||||||||||||
Personal Accident, Excess of Loss | $ | 2,000 | $ | 50,000 | 100% of $48,000 | ||||||||||||||||||||
Pecuniary Risks | $ | 5,000 | $ | 35,000 | 100% of $30,000 | ||||||||||||||||||||
If the Company incurs catastrophe losses and loss settlement expenses that exceed the coverage limits of its reinsurance program, many of its property catastrophe programs have built in a fixed number of reinstatement of limits. For example, if the Company incurs a property catastrophe loss, it is required to pay the reinsurers a reinstatement premium equal to the percentage of the limit exhausted by the loss, multiplied by the amount of the original reinsurance premium. | |||||||||||||||||||||||||
During the third quarter of 2007, the Company entered into a master agreement with Maiden, as amended, by which its Bermuda subsidiary, AII, and Maiden Reinsurance entered into a quota share reinsurance agreement, as amended (the “Maiden Quota Share”). For a description of this agreement, see Note 14. “Related Party Transactions.” | |||||||||||||||||||||||||
The effect of reinsurance with unrelated companies on premiums and losses for 2014, 2013 and 2012 are as follows: | |||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Amounts in Thousands) | Written | Earned | Written | Earned | Written | Earned | |||||||||||||||||||
Premiums: | |||||||||||||||||||||||||
Direct | $ | 5,422,484 | $ | 4,816,607 | $ | 3,869,893 | $ | 3,308,136 | $ | 2,494,846 | $ | 2,067,635 | |||||||||||||
Assumed | 665,481 | 562,193 | 247,018 | 254,863 | 254,480 | 270,008 | |||||||||||||||||||
Ceded | (2,131,347 | ) | (1,852,236 | ) | (1,551,238 | ) | (1,297,009 | ) | (1,101,289 | ) | (918,791 | ) | |||||||||||||
$ | 3,956,618 | $ | 3,526,564 | $ | 2,565,673 | $ | 2,265,990 | $ | 1,648,037 | $ | 1,418,852 | ||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Amounts in Thousands) | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | |||||||||||||||||||
Loss and LAE reserves | $ | 623,193 | $ | (2,149,444 | ) | $ | 378,564 | $ | (1,739,689 | ) | $ | 503,174 | $ | (1,185,056 | ) | ||||||||||
Unearned premiums | 211,177 | (1,302,848 | ) | 103,878 | (1,011,304 | ) | 108,679 | (754,844 | ) | ||||||||||||||||
Loss and LAE expense incurred | 424,754 | (1,217,593 | ) | 91,109 | (975,434 | ) | 166,191 | (638,595 | ) | ||||||||||||||||
The Company continuously updates the reserves on these lines of business based on information available from the ceding insurers. During 2014 and 2013, the Company had no commutations related to workers’ compensation that were included in ceded reinsurance treaties. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Related Party Transactions | Related Party Transactions | ||||||||||||
Significant Transactions with Maiden Holdings, Ltd. | |||||||||||||
The Company has various reinsurance and service agreements with Maiden Holdings, Ltd. (“Maiden”). Maiden is a publicly-held Bermuda insurance holding company (Nasdaq: MHLD) formed by Michael Karfunkel, George Karfunkel and Barry Zyskind, principal stockholders, and, respectively, the Chairman of the Board of Directors, a Director, and the Chief Executive Officer and director of the Company. As of December 31, 2014, our principal stockholders, Michael Karfunkel, Leah Karfunkel (wife of Michael Karfunkel and sole trustee of the Michael Karfunkel 2005 Grantor Retained Annuity Trust), George Karfunkel and Barry Zyskind, own or control approximately 6.2%, 7.6%, 9.3% and 5.1%, respectively, of the issued and outstanding capital stock of Maiden. Mr. Zyskind serves as the non-executive chairman of the board of Maiden’s board of directors. Maiden Reinsurance Ltd. ("Maiden Reinsurance"), formerly known as Maiden Insurance Company, Ltd, a wholly-owned subsidiary of Maiden, is a Bermuda reinsurer. The following section describes the agreements in place between the Company and its subsidiaries and Maiden and its subsidiaries. | |||||||||||||
Reinsurance Agreements with Maiden Holdings, Ltd. | |||||||||||||
In 2007, the Company and Maiden entered into a master agreement, as amended, by which the parties caused the Company’s Bermuda subsidiary, AmTrust International Insurance, Ltd. (“AII”) and Maiden Reinsurance to enter into a quota share reinsurance agreement (the “Maiden Quota Share”), as amended, by which AII retrocedes to Maiden Reinsurance an amount equal to 40% of the premium written by the Company’s U.S., Irish and U.K. insurance companies (the “AmTrust Ceding Insurers”), net of the cost of unaffiliated inuring reinsurance (and in the case of the Company’s U.K. insurance subsidiary, AmTrust Europe Ltd. ("AEL"), net of commissions). AII also retrocedes 40% of losses. Certain business that the Company commenced writing after the effective date, including the Company's European medical liability business discussed below, business assumed from Tower Group International, Ltd. pursuant to the cut-through quota share reinsurance agreement, and risks, other than workers’ compensation risks and certain business written by the Company’s Irish subsidiary, AmTrust International Underwriters Limited (“AIU”), for which the AmTrust Ceding Insurers’ net retention exceeds $5,000 is not ceded to Maiden Insurance (ceded business defined as “Covered Business”). | |||||||||||||
Effective January 1, 2013, AII receives a ceding commission of 31% of ceded written premiums with respect to all Covered Business other than retail commercial package business, for which the ceding commission remains 34.375%. With regards to the Specialty Program portion of Covered Business only, the Company will be responsible for ultimate net loss otherwise recoverable from Maiden Reinsurance to the extent that the loss ratio to Maiden Reinsurance, which shall be determined on an inception to date basis from July 1, 2007 through the date of calculation, is between 81.5% and 95% (the “Specialty Program Loss Corridor”). For the purpose of determining whether the loss ratio falls within the Specialty Program Loss Corridor, workers' compensation business written in the Company's Specialty Program segment from July 1, 2007 through December 31, 2012 is excluded from the loss ratio calculation. | |||||||||||||
The Maiden Quota Share was renewed through July 1, 2016 and will automatically renew for successive three-year terms unless either AII or Maiden Reinsurance notifies the other of its election not to renew not less than nine months prior to the end of any such three-year term. In addition, either party is entitled to terminate on thirty days’ notice or less upon the occurrence of certain early termination events, which include a default in payment, insolvency, change in control of AII or Maiden Reinsurance, run-off, or a reduction of 50% or more of the stockholders’ equity of Maiden Reinsurance or the combined stockholders’ equity of AII and the AmTrust Ceding Insurers. | |||||||||||||
Effective April 1, 2011, the Company, through its subsidiaries AEL and AIU, entered into a reinsurance agreement with Maiden Reinsurance by which the Company cedes to Maiden Reinsurance 40% of its European medical liability business, including business in force at April 1, 2011. The quota share had an initial term of one year and was renewed through March 31, 2016. The agreement can be terminated by either party on four months’ prior written notice. Maiden Reinsurance pays the Company a 5% ceding commission, and the Company will earn a profit commission of 50% of the amount by which the ceded loss ratio is lower than 65%. | |||||||||||||
The following is the effect on the Company’s results of operations for the years ended December 31, 2014, 2013 and 2012 related to the Maiden Quota Share agreement: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Results of operations: | |||||||||||||
Premium written – ceded | $ | (1,592,457 | ) | $ | (1,150,394 | ) | $ | (846,491 | ) | ||||
Change in unearned premium – ceded | 211,897 | 162,846 | 116,168 | ||||||||||
Earned premium – ceded | $ | (1,380,560 | ) | $ | (987,548 | ) | $ | (730,323 | ) | ||||
Ceding commission on premium written | $ | 493,342 | $ | 330,186 | $ | 223,111 | |||||||
Ceding commission – deferred | (88,271 | ) | (53,630 | ) | (26,129 | ) | |||||||
Ceding commission – earned | $ | 405,071 | $ | 276,556 | $ | 196,982 | |||||||
Incurred loss and loss adjustment expense – ceded | $ | 885,362 | $ | 715,832 | $ | 526,210 | |||||||
Note Payable to Maiden — Collateral for Proportionate Share of Reinsurance Obligations | |||||||||||||
In conjunction with the Maiden Quota Share, as described above, the Company entered into a loan agreement with Maiden Reinsurance during the fourth quarter of 2007, whereby Maiden Reinsurance loaned to the Company the amount equal to AII's quota share of the obligations of the AmTrust Ceding Insurers that AII was then obligated to secure. The loan agreement provides for interest at a rate of LIBOR plus 90 basis points and is payable on a quarterly basis. Advances under the loan are secured by a promissory note and totaled $167,975 as of December 31, 2014 and 2013. The Company recorded $1,797, $1,852 and $1,951 of interest expense during the years ended December 31, 2014, 2013 and 2012, respectively. Effective December 1, 2008, AII and Maiden Reinsurance entered into a Reinsurer Trust Assets Collateral agreement whereby Maiden Reinsurance is required to provide AII the assets required to secure Maiden’s proportional share of the Company’s obligations to its U.S. subsidiaries. The amount of this collateral as of December 31, 2014 was approximately $1,936,128. Maiden retains ownership of the collateral in the trust account. | |||||||||||||
Reinsurance Brokerage Agreement | |||||||||||||
Effective July 1, 2007, the Company, through a subsidiary, entered into a reinsurance brokerage agreement with Maiden. Pursuant to the brokerage agreement, the Company provides brokerage services relating to the Maiden Quota Share for a fee equal to 1.25% of reinsured premium. The Company recorded $19,896, $17,498 and $8,759 of brokerage commission during the years ended December 31, 2014, 2013 and 2012, respectively. The brokerage commission was recorded as a component of service and fee income. | |||||||||||||
Asset Management Agreement | |||||||||||||
Effective July 1, 2007, a subsidiary of the Company entered into an asset management agreement with Maiden Reinsurance, pursuant to which the Company provides investment management services to Maiden Reinsurance and certain of its affiliates. As of December 31, 2014, the Company managed approximately $3,653,758 of assets related to this agreement. The asset management services fee is an annual rate of 0.20% for periods in which average invested assets are $1,000,000 or less and an annual rate of 0.15% for periods in which the average invested assets exceed $1,000,000. As a result of this agreement, the Company recorded approximately $5,213, $4,388 and $3,697 of asset management fees for the years ended December 31, 2014, 2013 and 2012, respectively. The asset management fees were recorded as a component of service and fee income. | |||||||||||||
Significant Transactions with National General Holding Corp. | |||||||||||||
The Company has a 13.2% ownership interest in NGHC. NGHC is a publicly-held insurance holding company (Nasdaq: NGHC) that operates fifteen insurance companies in the United States and writes consumer property and casualty insurance business through independent agents for automobiles. Its coverages include standard/preferred auto, RVs, non-standard auto and commercial auto. NGHC's two largest stockholders are The Michael Karfunkel 2005 Grantor Retained Annuity Trust (the “Trust”) and Michael Karfunkel individually. Michael Karfunkel is the Chairman of the Board of Directors of the Company and the father-in-law of Barry D. Zyskind, the Chief Executive Officer of the Company. The ultimate beneficiaries of the Trust include Michael Karfunkel’s children, one of whom is married to Mr. Zyskind. In addition, Michael Karfunkel is the chairman, president and chief executive officer of NGHC. In accordance with ASC 323-10-15, Investments-Equity Method and Joint Ventures, the Company accounts for its investment in NGHC under the equity method as it has the ability to exert significant influence on NGHC's operations. | |||||||||||||
In February 2014, NGHC issued approximately 13,600,000 shares in a follow on Rule 144A offering, which resulted in the Company reducing its ownership percentage in NGHC from 15.4% to 13.2%. As a result of the stock issuance, the Company recognized a gain on sale of its equity investment of $14,712, which is included in equity in earnings of unconsolidated subsidiary. In total, the Company recorded $28,351, $11,566 and $9,295 of income during the years ended December 31, 2014, 2013 and 2012, respectively related to its equity investment in NGHC. | |||||||||||||
Master Services Agreement | |||||||||||||
The Company provides NGHC and its affiliates information technology development services in connection with the development and licensing of a policy management system at a cost that is currently 1.25% of gross premiums written of NGHC and its affiliates plus the Company’s costs for development and support services. In addition, the Company provides NGHC and its affiliates printing and mailing services at a per piece cost for policy and policy related materials, such as invoices, quotes, notices and endorsements, associated with the policies the Company processes for NGHC and its affiliates on the policy management system. The Company recorded approximately $25,632, $24,196 and $14,444 of fee income for the years ended December 31, 2014, 2013 and 2012, respectively, related to this agreement. Additionally, the Company provided certain consulting services to NGHC related to Luxembourg-domiciled reinsurance entities in 2014, for which the Company received $1,057 for the year ended December 31, 2014. The fees for these services were recorded as a component of service and fee income. | |||||||||||||
Asset Management Agreement | |||||||||||||
A subsidiary of the Company manages the assets of NGHC and certain of its subsidiaries, including the assets of reciprocal insurers managed by subsidiaries of NGHC, for an annual fee equal to 0.20% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for the preceding quarter is $1,000,000 or less and 0.15% of the average aggregate value of the assets under management for the preceding quarter if the average aggregate value for that quarter is more than $1,000,000. The Company managed approximately $1,433,705 of assets as of December 31, 2014 related to this agreement. As a result of this agreement, the Company earned approximately $2,006, $1,725 and $1,503 of asset management fees for the years ended December 31, 2014, 2013 and 2012, respectively. The asset management fees were recorded as a component of service and fee income. | |||||||||||||
As a result of the above service agreements with NGHC, the Company recorded fees totaling approximately $28,695, $25,921 and $15,947 for the years ended December 31, 2014, 2013 and 2012, respectively. As of December 31, 2014, the outstanding balance payable by NGHC related to these service fees and reimbursable costs was approximately $16,409. | |||||||||||||
800 Superior, LLC | |||||||||||||
In 2011, the Company formed 800 Superior, LLC with a subsidiary of NGHC for the purposes of acquiring an office building in Cleveland, Ohio. The Company and NGHC each have a fifty percent ownership interest in 800 Superior, LLC. The cost of the building was approximately $7,500. The Company has been appointed managing member of the LLC. Additionally, in conjunction with the Company’s 13.2% ownership percentage of NGHC, the Company ultimately receives 57.7% of the profits and losses of 800 Superior, LLC. As such, in accordance with ASC 810-10, Consolidation, the Company has been deemed the primary beneficiary and, therefore, consolidates this entity. | |||||||||||||
In 2012, NGHC entered into an office lease with 800 Superior, LLC for approximately 134,000 square feet. The lease period is for 15 years and NGHC paid 800 Superior, LLC $2,056, $2,329, and $1,391 for the years ended December 31, 2014, 2013 and 2012, respectively. As discussed in Note 21. "New Market Tax Credit," 800 Superior, LLC, the Company and NGHC participated in a financing transaction related to capital improvements on the office building. As part of that transaction, NGHC and the Company entered into an agreement related to the payment and performance guaranties provided by the Company to the various parties to the financing transaction whereby NGHC has agreed to contribute 50% toward any payments the Company is required to make pursuant to the guaranties. | |||||||||||||
Sale of Personal Express Insurance Company | |||||||||||||
In April 2014, the Company completed the sale of Personal Express Insurance Company (“PEIC”), a California-domiciled property and casualty insurance carrier that offers retail personal lines insurance products in California, and its captive insurance agency Personal Express Insurance Services, Inc. (“PEIS” and, together with PEIC, the “Personal Express Companies”) to Integon National Insurance Company ("Integon"), a subsidiary of NGHC, for approximately $21,743. As a result of the sale, the Company recorded a gain on sale of approximately $6,631. The Personal Express Companies were wholly-owned subsidiaries of Sequoia Insurance Company, which is one of the Company’s wholly-owned subsidiaries. | |||||||||||||
Personal Lines Quota Share | |||||||||||||
The Company was a party to a quota share reinsurance agreement (“Personal Lines Quota Share”) with Integon. On August 1, 2013, the Company and its wholly-owned subsidiary, Technology Insurance Company, Inc. (“TIC”), received a termination notice related to TIC's participation in the Personal Lines Quota Share effective August 1, 2013. The termination was on a run-off basis, meaning the Company is involved with the continuing cash flows associated with this business with respect to policies in force as of July 31, 2013. As such, the Personal Lines Reinsurance segment, which contains the results of operations from the Personal Lines Quota Share, is not presented as a discontinued operation in accordance with ASC 205-20, Discontinued Operations. The overall results of the Personal Lines Reinsurance segment were immaterial for the years ended December 31, 2014 and 2013. | |||||||||||||
Significant Transactions with ACP Re, Ltd. | |||||||||||||
ACP Re, Ltd. (“ACP Re”) is a privately-held Bermuda reinsurance holding company formed by Michael Karfunkel, the Chairman of the Board of the Company. ACP Re operates 10 insurance companies in the United States and Bermuda as a result of its merger with Tower Group International, Ltd. ("Tower") during the third quarter of 2014. The following section describes the agreements in place between the Company and its subsidiaries and ACP Re and its subsidiaries. | |||||||||||||
Asset Management Agreement | |||||||||||||
A subsidiary of the Company provides asset management services to ACP Re, Ltd. and certain of its subsidiaries at (i) an annual rate of 0.20% of the average value of the invested assets under management, excluding investment in AmTrust stock, for the preceding calendar quarter if the average value of such assets for the quarter was $1,000,000 or less, or (ii) an annual rate of 0.15% of the average value of invested assets under management, excluding investments in the Company's stock, for the preceding calendar quarter if the average value of such assets for the quarter was greater than $1,000,000. The Company managed approximately $53,670 of assets as of December 31, 2014. The Company recorded approximately $214, $238, and $638 for these services for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
Agreements as a result of ACP Re / Tower Merger | |||||||||||||
In January 2014, ACP Re, through a subsidiary, agreed to acquire 100% of the outstanding stock of Tower and merge with Tower on September 15, 2014 (the “Merger”). As a result of the Merger, the Company and ACP Re entered into the agreements and transactions described below, as well as an asset management agreement described above. | |||||||||||||
Commercial Lines Master Agreement | |||||||||||||
On July 23, 2014, the Company and ACP Re entered into the Amended and Restated Commercial Lines Master Agreement (the “Master Agreement”), which provides for the implementation of the various transactions associated with the acquisition of Tower by ACP Re pursuant to the Merger, including entering into the agreements described below, all of which became effective on September 15, 2014. In addition, the Master Agreement requires the Company to pay ACP Re contingent consideration in the form of a three year earn-out (the “Contingent Payments”), payable semi-annually on the last day of January and July, of 3% of gross written premium of the Tower commercial lines business written or assumed by the Company following the Merger. The Contingent Payments to be made by the Company are subject to a maximum of $30,000, in the aggregate, over the three-year period. NGHC will pay contingent consideration to ACP Re on the same terms. As a result of entering into this agreement, the Company initially assigned a value of $26,200 to the renewal rights, $700 to goodwill, and $26,900 to the contingent consideration, which is recorded as a component of accrued expense and other liability. In addition, as a result of the renewal rights transaction, the Company generated approximately $133,424 of gross written premium for the year ended December 31, 2014. | |||||||||||||
Commercial Lines Reinsurance Agreements | |||||||||||||
TIC entered into the Commercial Lines Quota Share Reinsurance Agreement (the “CL Reinsurance Agreement”) with Tower’s ten statutory insurance companies (the “Tower Companies”) pursuant to which TIC will reinsure 100% of all losses under the Tower Companies’ new and renewal commercial lines business written after September 15, 2014. The ceding commission payable by TIC under the CL Reinsurance Agreement is equal to the sum of (i) reimbursement of the Tower Companies’ acquisition costs in respect of the business covered, including commission payable to AmTrust North America, Inc., a subsidiary of the Company (“ANA”), pursuant to the CL MGA Agreement described below, and premium taxes and (ii) 2%of gross written premium (net of cancellations and return premiums) collected pursuant to the CL MGA Agreement described below. The CL Reinsurance Agreement will remain in effect until termination of the CL MGA Agreement. The Company assumed $17,404 of premium under the CL Reinsurance Agreement during the year ended December 31, 2014. | |||||||||||||
In connection with the execution of the CL Reinsurance Agreement, the Commercial Lines Cut-Through Quota Share Reinsurance Agreement, dated January 3, 2014, between TIC and the Tower Companies whereby TIC, through a 100% quota share, reinsured at least 60% of the Tower Companies’ then in-force commercial lines policies and most new and renewal commercial lines business from January 3, 2014 forward, was terminated on a run-off basis, with the reinsurance of all policies reinsured under that agreement remaining in effect. During the year ended December 31, 2014, TIC assumed $475,038 of premium under the cut-through reinsurance agreement. During the year ended December 31, 2014, the Company earned approximately $386,609 of premium and incurred approximately $224,961 of loss and loss adjustment expense, respectively, related to the cut-through reinsurance agreement. During the year ended December 31, 2014, the Company incurred approximately $91,502 of commission expense and approximately $15,926 of unallocated claims expense as part of the agreement. Additionally, the Company recorded approximately $8,915 of prepaid claim expense as of December 31, 2014, which is reported as a component of other assets. | |||||||||||||
Commercial Lines MGA Agreement | |||||||||||||
ANA produces and manages all new and renewal commercial lines business written by the Tower Companies pursuant to the Commercial Lines Managing General Agency Agreement (the “CL MGA Agreement”). As described above, all post-September 15, 2014 commercial lines business written by the Tower Companies will be reinsured by TIC pursuant to the CL Reinsurance Agreement. The Tower Companies pay ANA a 10% commission on all business written pursuant to the CL MGA Agreement and reimburse ANA for commissions payable to agents producing such business. All payments by the Tower Companies to ANA pursuant to the CL MGA Agreement will be netted out of the ceding commission payable by TIC to the Tower Companies pursuant to the CL Reinsurance Agreement. The CL MGA Agreement has a term of ten years. The Company recorded $1,751 of commission under the CL MGA Agreement during the year ended December 31, 2014. The commission income was recorded as a component of service and fee income. | |||||||||||||
Commercial Lines Administrative Services Agreement | |||||||||||||
ANA, the Tower Companies and CastlePoint Reinsurance Company, Ltd. (“CP Re”, a subsidiary of ACP Re) entered into the Commercial Lines LPTA Administrative Services Agreement (the “CL Administrative Agreement”) pursuant to which ANA administers the runoff of CP Re’s and the Tower Companies’ commercial lines business written prior to September 15, 2014 at cost. CP Re and the Tower Companies reimburse ANA for its actual costs, including costs incurred in connection with claims operations, out-of-pocket expenses, costs incurred in connection with any required modifications to ANA’s claims systems and an allocated portion of the claims service expenses paid by TIC to the Tower Companies pursuant to the CL Reinsurance Agreement. The CL Administrative Agreement will remain in effect until the first to occur of (i) the completed performance of all obligations and duties arising under the agreement, or (ii) mutual written consent. The Company did not receive any reimbursement as a result of the CL Administrative Agreement during the year ended December 31, 2014. | |||||||||||||
Stop-Loss and Retrocession Agreements | |||||||||||||
AII and National General Re, Ltd., a subsidiary of NGHC (“NG Re Ltd.”), as reinsurers, entered into a $250,000 Aggregate Stop Loss Reinsurance Agreement (the “Stop-Loss Agreement”) with CP Re. AII and NG Re Ltd. also entered into an Aggregate Stop Loss Retrocession Contract (the “Retrocession Agreement”) with ACP Re pursuant to which ACP Re will reinsure the full amount of any payments that AII and NG Re Ltd. are obligated to make to CP Re under the Stop-Loss Agreement. Pursuant to the Stop-Loss Agreement, each of the Company and NGHC will provide, severally, $125,000 of stop loss coverage with respect to the run-off of the Tower business written on or before September 15, 2014. The reinsurers’ obligation to indemnify CP Re under the Stop-Loss Agreement will be triggered only at such time as CP Re’s ultimate net loss related to the run-off of the pre-September 15, 2014 Tower business exceeds a retention equal to the Tower Companies’ loss and loss adjustment reserves and unearned premium reserves as of September 15, 2014. CP Re will pay AII and NG Re Ltd. total premium of $56,000 on the five-year anniversary of the Stop-Loss Agreement. The premium payable by AII and NG Re Ltd. to ACP Re pursuant to the Retrocession Agreement will be $56,000 in the aggregate, less a ceding commission of 5.5% to be retained by AII and NG Re Ltd. | |||||||||||||
Credit Agreement | |||||||||||||
The Company, AII, and NG Re Ltd. entered into a credit agreement (the “ACP Re Credit Agreement”) among the Company, as Administrative Agent, ACP Re and Tower, now a wholly-owned subsidiary of ACP Re, as the borrowers (collectively, the “Borrowers”), ACP Re Holdings, LLC, as Guarantor, and AII and NG Re Ltd., as Lenders, pursuant to which the Lenders made a $250,000 loan ($125,000 made by each Lender) to the Borrowers. ACP Re used the proceeds of such loan to (i) finance the Merger, (ii) repay certain indebtedness of Tower and its related companies in connection with the Merger, and (iii) pay certain transaction costs and expenses incurred by the Borrowers in connection with the Merger. | |||||||||||||
The loan issued pursuant to the ACP Re Credit Agreement has a maturity date of September 15, 2021. Outstanding borrowings under the ACP Re Credit Agreement will bear interest at a fixed annual rate of 7%, payable semi-annually on the last day of January and July. Fees payable to the Company for its service as Administrative Agent include an annual fee equal to $30, plus reimbursement of costs, expenses and certain other charges. The obligations of the Borrowers are secured by (i) a first-priority pledge of 100% of the stock of ACP Re and ACP Re’s U.S. subsidiaries and 65% of the stock of certain of ACP Re’s foreign subsidiaries, and (ii) a first-priority lien on all of the assets of the Borrowers and Guarantor and certain of the assets of ACP Re’s subsidiaries (other than the Tower Companies). | |||||||||||||
The Borrowers have the right to prepay the amounts borrowed, in whole or in part. The Borrowers are required to prepay the amounts borrowed within thirty (30) days from the receipt of net cash proceeds received by ACP Re from (i) certain asset sales, (ii) the disposition of certain equity interests, (iii) the issuance or incurrence of certain debt, (iv) any dividend or distribution from Tower subsidiaries to ACP Re, (v) premiums and other payments received pursuant to the Retrocession Agreement, and (vi) any tax refunds, pension plan reversions, insurance proceeds, indemnity payments, purchase price adjustments (excluding working capital adjustments) under acquisition agreements, litigation proceeds and other similar receipts received by the Borrowers after the effective date of the ACP Re Credit Agreement, unless any of the foregoing proceeds (other than payments received pursuant to the Retrocession Agreement) are required for the ordinary course business operations of the Borrowers. The Borrowers are also required to deposit any excess cash flow (including payments under the Master Agreement) into a reserve account that also secures Borrowers’ obligations under the ACP Re Credit Agreement. Any funds in the reserve account after January 1, 2018 that exceed the amount of interest payable by the Borrowers for the remainder of the term of the ACP Re Credit Agreement must be applied by the Borrowers as a prepayment of principal under the ACP Re Credit Agreement. | |||||||||||||
The ACP Re Credit Agreement contains certain customary restrictive covenants (subject to negotiated exceptions and baskets), including restrictions on indebtedness, liens, acquisitions and investments, dispositions, creation of subsidiaries and restricted payments. There are also financial covenants that require ACP Re to maintain minimum current assets, a maximum leverage ratio, and a minimum fixed charge coverage ratio. If ACP Re fails to comply with the leverage ratio or fixed charge coverage ratio covenants as of any measurement date, the Borrowers may cure such breach by making a capital contribution to ACP Re sufficient to bring the Borrowers into compliance. | |||||||||||||
The ACP Re Credit Agreement also provides for customary events of default, with grace periods where appropriate, including failure to pay principal when due, failure to pay interest or fees within three business days after becoming due, failure to comply with covenants, breaches of representations and warranties, default under certain other indebtedness, certain insolvency, receivership or insurance regulatory events affecting the Borrowers, the occurrence of certain material judgments, certain amounts of reportable ERISA or foreign pension plan noncompliance events, a change in control of the Guarantor, any security interest created under the ACP Re Credit Agreement ceases to be in full force and effect, or if ACP Re defaults on its obligations under the Retrocession Agreement. Upon the occurrence and during the continuation of an event of default, the Company, as Administrative Agent, upon the request of any Lender, will declare the Borrowers’ obligations under the ACP Re Credit Agreement immediately due and payable and/or exercise any and all remedies and other rights under the ACP Re Credit Agreement. | |||||||||||||
As of December 31, 2014, the Company recorded $127,601 of loan and related interest receivable as a component of other assets on the condensed consolidated balance sheet. The Company recorded total interest income of approximately $2,601 for the year ended December 31, 2014 under the ACP Re Credit Agreement. | |||||||||||||
Other Related Party Transactions | |||||||||||||
Lease Agreements | |||||||||||||
The Company has an office lease for its office space at 59 Maiden Lane in New York, New York from 59 Maiden Lane Associates, LLC, an entity that is wholly-owned by Michael Karfunkel and George Karfunkel. The Company currently leases 39,992 square feet of office space and the lease term is through May 2023. The Company paid approximately $1,880, $730 and $733 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
The Company leases 15,765 square feet of office space in Chicago, Illinois from 135 LaSalle Property, LLC, an entity that is wholly-owned by entities controlled by Michael Karfunkel and George Karfunkel. The lease term is through November 30, 2022. The Company paid approximately $444 and $480 for this lease for the years ended December 31, 2014 and 2013, respectively. | |||||||||||||
Use of Company Aircraft | |||||||||||||
The Company and its wholly-owned subsidiary, AmTrust Underwriters, Inc. (“AUI”), are each a party to aircraft time share agreements with each of Maiden and NGHC. The agreements provide for payment to the Company or AUI for usage of their respective company-owned aircraft and cover actual expenses incurred and permissible under federal aviation regulations, including travel and lodging expenses of the crew, in-flight catering, flight planning and weather contract services, ground transportation, fuel, landing and hanger fees, and airport taxes, among others. Neither the Company nor AUI charges Maiden or NGHC for the fixed costs that would be incurred in any event to operate the aircrafts (for example, aircraft purchase costs, insurance and flight crew salaries). During the years ended December 31, 2014, 2013 and 2012, Maiden paid AUI $26, $38, and $59, respectively, and NGHC paid AUI $133, $140, and $165, respectively, for the use of AUI’s aircraft under these agreements. During the year ended December 31, 2014, Maiden paid the Company $26 for the use of the Company's aircraft. | |||||||||||||
In addition, for personal travel, Mr. Zyskind, the Company’s President and Chief Executive Officer and Mr. Michael Karfunkel, the Chairman of the Board, each entered into an aircraft reimbursement agreement with the Company and, since entering into such agreements, has fully reimbursed the Company for the incremental cost billed by the Company for their personal use of the company-owned aircraft. Mr. Zyskind reimbursed the Company $235, $74, and $192 respectively, for his personal use of the aircraft during the years ended December 31, 2014, 2013 and 2012. Mr. Karfunkel reimbursed the Company $55 during the year ended December 31, 2013 for his personal use of the aircraft. Mr. Karfunkel did not use the aircraft for personal use in 2014 or 2012. |
Acquisition_Costs_and_Other_Un
Acquisition Costs and Other Underwriting Expenses | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Acquisition Costs and Other Underwriting Expenses | Acquisition Costs and Other Underwriting Expenses | ||||||||||||
The following table summarizes the components of acquisition costs and other underwriting expenses for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Policy acquisition expenses | $ | 460,010 | $ | 244,461 | $ | 178,633 | |||||||
Salaries and benefits | 367,549 | 247,173 | 155,441 | ||||||||||
Other insurance general and administrative expense | 29,364 | 41,528 | 21,931 | ||||||||||
$ | 856,923 | $ | 533,162 | $ | 356,005 | ||||||||
Share_Based_Compensation
Share Based Compensation | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||
Share Based Compensation | Share Based Compensation | ||||||||||||||||||||
The Company's 2010 Omnibus Incentive Plan (the “Plan”), which permits the Company to grant to officers, employees and non-employee directors incentive compensation directly linked to the price of the Company’s stock, authorizes up to an aggregate of 7,315,068 shares of Company stock for awards of options to purchase shares of the Company’s common stock, restricted stock, restricted stock units (“RSU”), performance share units ("PSU") or appreciation rights. Shares used may be either newly issued shares or treasury shares or both. The aggregate number of shares of common stock for which awards may be issued may not exceed 7,315,068 shares, subject to the authority of the Company’s Board of Directors to adjust this amount in the event of a consolidation, reorganization, stock dividend, stock split, recapitalization or similar transaction affecting the Company’s common stock. As of December 31, 2014, approximately 4,600,000 shares of Company common stock remained available for grants under the Plan. | |||||||||||||||||||||
The Company recognizes compensation expense under FASB ASC 718-10-25 for its share-based payments based on the fair value of the awards. The Company grants stock options at prices equal to the closing stock price of the Company’s stock on the dates the options are granted. The options have a term of ten years from the date of grant and vest primarily in equal annual installments over the four years period following the date of grant for employee options. The Company uses the simplified method in determining the expected life. Employees have three months after the employment relationship ends to exercise all vested options. The fair value of each option grant is separately estimated for each vesting date. The fair value of each option is amortized into compensation expense on a straight-line basis between the grant date for the award and each vesting date. The Company has estimated the fair value of all stock option awards as of the date of the grant by applying the Black-Scholes-Merton multiple-option pricing valuation model. The application of this valuation model involves assumptions that are judgmental and highly sensitive in the determination of compensation expense. The Company grants restricted shares, RSUs and PSUs with a grant date value equal to the closing stock price of the Company's stock on the dates the shares or units are granted and the restricted shares and RSUs vest over a period of two to four years, while PSUs vest based on terms of the awards. | |||||||||||||||||||||
The Company paid a ten percent stock dividend in 2013 and 2012. At the dividend date, all options outstanding were adjusted by ten percent and their respective exercise prices were reduced by ten percent, which ultimately resulted in each outstanding share having the same fair value immediately prior to and subsequent to the dividend date. Therefore, the Company did not record any additional compensation expense as a result of either stock dividend. The Company also adjusted outstanding RSUs, unvested restricted stock and PSUs, resulting in no additional compensation expense. | |||||||||||||||||||||
The following schedule shows all options granted, exercised, and expired under the Plan for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding at beginning of year | 2,997,460 | $ | 10.49 | 3,675,776 | $ | 9.41 | 4,546,678 | $ | 9.06 | ||||||||||||
Granted | 37,500 | 37.87 | 78,001 | 29.78 | 45,981 | 23.63 | |||||||||||||||
Exercised | (1,092,120 | ) | 9.5 | (747,272 | ) | 7.21 | (821,745 | ) | 7.98 | ||||||||||||
Forfeited | (8,470 | ) | 7.03 | (9,045 | ) | 8.9 | (95,138 | ) | 11.87 | ||||||||||||
Outstanding at end of year | 1,934,370 | $ | 11.6 | 2,997,460 | $ | 10.49 | 3,675,776 | $ | 9.41 | ||||||||||||
The fair value was estimated at the date of grant with the following weighted average assumptions for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Volatility | 41.89 | % | 33.09 | % | 32.68 | % | |||||||||||||||
Risk-free interest rate | 2.73 | % | 0.88 | % | 0.73 | % | |||||||||||||||
Weighted average expected lives in years | 6.25 | 6.25 | 6.25 | ||||||||||||||||||
Dividend rate | 1.9 | % | 1.68 | % | 1.37 | % | |||||||||||||||
Forfeiture rate | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||||||||
The weighted average grant date fair value of options granted was $14.69, $8.10 and $8.44 during 2014, 2013 and 2012, respectively. As of December 31, 2014 and 2013, all option grants outstanding had an approximate weighted average remaining life of 3.4 and 4.4 years, respectively. As of December 31, 2014 and 2013, there were approximately 1,800,000 options and 2,800,000 options, respectively, with a weighted average exercise price of $10.49 and $9.69, respectively, which were exercisable. | |||||||||||||||||||||
A summary of the Company’s restricted stock and RSU activity for the years ended December 31, 2014, 2013 and 2012 is shown below: | |||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares or | Weighted | Shares or | Weighted | Shares or | Weighted Average | ||||||||||||||||
Units | Average | Units | Average | Units | Grant Date Fair Value | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Non-vested at beginning of year | 917,015 | $ | 24.43 | 888,197 | $ | 20.86 | 352,453 | $ | 15.14 | ||||||||||||
Granted | 902,358 | 39.21 | 291,430 | 31.17 | 638,177 | 23.04 | |||||||||||||||
Vested | (497,534 | ) | 27.38 | (262,031 | ) | 19.81 | (101,681 | ) | 14.7 | ||||||||||||
Forfeited | (16,328 | ) | 33.19 | (581 | ) | 29.31 | (752 | ) | 20.86 | ||||||||||||
Non-vested at end of year | 1,305,511 | $ | 33.41 | 917,015 | $ | 24.43 | 888,197 | $ | 20.86 | ||||||||||||
The Company has 274,835 PSUs outstanding as of December 31, 2014. PSUs are conditional grants of a specified maximum number of common shares. In general, grants are earned, subject to the attainment of pre-specified performance goals at the end of a pre-determined period. The fair value of PSUs granted in 2014 and 2013 was $7,640 and $4,687, respectively. | |||||||||||||||||||||
Compensation expense for all share-based payments under ASC 718-10-30 was approximately $19,114, $11,186 and $7,172 for the years ended December 31, 2014, 2013 and 2012, respectively. The Company had approximately $36,882, $23,857 and $20,665 of unrecognized compensation cost related to all share based compensation as of December 31, 2014, 2013 and 2012, respectively. | |||||||||||||||||||||
The intrinsic value of stock options exercised during 2014, 2013 and 2012 was $35,597, $19,352 and $12,061, respectively. The intrinsic value of stock options that were outstanding as December 31, 2014, 2013 and 2012 was $86,374, $66,559 and $70,860, respectively. | |||||||||||||||||||||
Cash received from options exercised was $10,589, $5,387 and $8,873 during 2014, 2013 and 2012 respectively. The excess tax benefit from award exercises was approximately $10,281 and $5,109 for the years ended December 31, 2014 and 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
The provision for income taxes consists of the following for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Income Tax Provision (Benefit) | |||||||||||||
Current expense (benefit) | |||||||||||||
Federal | $ | 219,413 | $ | 49,565 | $ | 6,402 | |||||||
Foreign | 26,142 | 29,935 | 21,052 | ||||||||||
Total current tax expense | 245,555 | 79,500 | 27,454 | ||||||||||
Deferred expense (benefit) | |||||||||||||
Federal | $ | (8,376 | ) | $ | 13,741 | $ | 9,919 | ||||||
Foreign | (183,493 | ) | 4,778 | (16,081 | ) | ||||||||
Total deferred tax expense | (191,869 | ) | 18,519 | (6,162 | ) | ||||||||
Total income tax expense | $ | 53,686 | $ | 98,019 | $ | 21,292 | |||||||
The following table is a reconciliation of the Company’s statutory income tax expense to its effective tax rate for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Income before equity in earnings (loss) of unconsolidated subsidiaries | $ | 471,933 | $ | 367,046 | $ | 196,857 | |||||||
Tax at federal statutory rate of 35% | $ | 165,177 | $ | 128,466 | $ | 68,900 | |||||||
Tax effects resulting from: | |||||||||||||
Net income of non-includible foreign subsidiaries | (99,904 | ) | (45,075 | ) | (43,806 | ) | |||||||
Other, net | (11,587 | ) | 14,628 | (3,802 | ) | ||||||||
$ | 53,686 | $ | 98,019 | $ | 21,292 | ||||||||
Effective tax rate | 11.4 | % | 26.7 | % | 10.8 | % | |||||||
The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2014 and 2013 are shown below: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Unearned premiums | $ | 117,922 | $ | 83,410 | |||||||||
Ceding commission | 107,739 | 82,554 | |||||||||||
Loss and LAE reserves | 49,583 | 43,452 | |||||||||||
Other | 62,346 | 60,673 | |||||||||||
Deferred compensation | 7,774 | 7,183 | |||||||||||
Bad debt | 13,027 | 8,790 | |||||||||||
Net operating loss carryforward | 101,230 | 2,133 | |||||||||||
Unrealized loss on investments | — | 4,396 | |||||||||||
$ | 459,621 | $ | 292,591 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred acquisition costs | $ | (295,121 | ) | $ | (239,293 | ) | |||||||
Equalization reserves | (94,215 | ) | (186,576 | ) | |||||||||
Intangible assets | (51,619 | ) | (64,090 | ) | |||||||||
Unrealized gain on investments | (30,219 | ) | — | ||||||||||
Other | (16,790 | ) | (19,578 | ) | |||||||||
Depreciation | (31,350 | ) | (31,396 | ) | |||||||||
Equity results which cannot be liquidated tax free | (41,497 | ) | (21,200 | ) | |||||||||
Accrual market discount | (3,123 | ) | (3,020 | ) | |||||||||
Cash surrender value on insurance | (2,050 | ) | (1,957 | ) | |||||||||
(565,984 | ) | (567,110 | ) | ||||||||||
Deferred tax liability, net | $ | (106,363 | ) | $ | (274,519 | ) | |||||||
The Company’s management believes that it will realize the benefits of its deferred tax assets, which are included as a component of the Company's net deferred tax liability, and accordingly, no valuation allowance has been recorded for the periods presented. The earnings of certain of the Company's foreign subsidiaries have been indefinitely reinvested in foreign operations. Therefore, no provision has been made for any U.S. taxes or foreign withholding taxes that may be applicable upon any repatriation or disposition. The determination of any unrecognized deferred tax liability for temporary differences related to investments in certain of the Company’s foreign subsidiaries is not practicable. At December 31, 2014 and 2013, the financial reporting basis in excess of the tax basis for which no deferred taxes have been recognized was approximately $257,587 and $112,263, respectively. | |||||||||||||
The Company has U.S. Net Operating Losses (“NOLs”) of $26,079 that expire beginning in 2019 through 2033. In addition, these NOLs are subject to certain limitations under Section 382 of the Internal Revenue Code due to changes in ownership of $1,723 per year. The Company also has foreign NOLs of $307,288 that currently have no expiration. | |||||||||||||
The Company’s major taxing jurisdictions include the U.S. (federal and state), the United Kingdom and Ireland. The years subject to potential audit vary depending on the tax jurisdiction. Generally, the Company’s statute of limitation is open for tax years ended December 31, 2009 and forward. Listed below are the tax years that remain subject to examination by major tax jurisdictions: | |||||||||||||
Open Tax Years | |||||||||||||
Major tax jurisdictions: | |||||||||||||
United States | 2010-2013 | ||||||||||||
United Kingdom | 2011-2013 | ||||||||||||
Ireland | 2009-2013 | ||||||||||||
As permitted by FASB ASC 740-10 Income Taxes, the Company recognizes interest and penalties, if any, related to unrecognized tax benefits in its income tax provision. The Company does not have any unrecognized tax benefits and, therefore, has not recorded any unrecognized tax benefits, or any related interest and penalties, as of December 31, 2014 and 2013. No interest or penalties have been recorded by the Company for the years ended December 31, 2014, 2013 and 2012. The Company does not anticipate any significant changes to its total unrecognized tax benefits in the next 12 months. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans | ||||||||||||||||
Defined Benefit Plan | |||||||||||||||||
In association with the acquisition of CCPH in 2013, the Company assumed a frozen defined benefit pension plan on February 28, 2013. The plan is funded and covers approximately 300 participants in the United Kingdom. | |||||||||||||||||
Changes in benefit obligations and plan assets as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Change in Benefit Obligation | |||||||||||||||||
Benefit obligation at January 1, 2014 and February 28, 2013 | $ | 46,873 | $ | 39,877 | |||||||||||||
Interest cost | 2,074 | 1,608 | |||||||||||||||
Actuarial loss | 4,621 | 2,074 | |||||||||||||||
Benefits paid net of retiree contributions | (820 | ) | (553 | ) | |||||||||||||
Exchange rate changes | (3,202 | ) | 3,867 | ||||||||||||||
Benefit Obligation at End of Year | 49,546 | $ | 46,873 | ||||||||||||||
Change in Plan Assets | |||||||||||||||||
Fair Value of Plan Assets at January 1, 2014 and February 28, 2013 | 43,592 | $ | 34,832 | ||||||||||||||
Actual return on assets | 5,974 | 1,820 | |||||||||||||||
Employer contributions | 1,004 | 3,958 | |||||||||||||||
Benefits and expenses paid net of retiree contributions | (820 | ) | (553 | ) | |||||||||||||
Exchange rate changes | (3,016 | ) | 3,535 | ||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 46,734 | $ | 43,592 | |||||||||||||
Funded Status at December 31, 2014 and 2013 | $ | (2,812 | ) | $ | (3,281 | ) | |||||||||||
Net periodic benefit cost for the year ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Net Periodic Benefit Costs | |||||||||||||||||
Interest costs on benefit obligation | $ | 2,074 | $ | 1,608 | |||||||||||||
Assumed return on plan assets | (2,600 | ) | (1,900 | ) | |||||||||||||
Total | $ | (526 | ) | $ | (292 | ) | |||||||||||
The Company made $1,004 and $3,958 in contributions to its plans during 2014 and 2013, respectively. The Company anticipates that it will be required to make a contribution to its pension plans of approximately $950 in 2015 and have pension income of approximately $614 in 2015. | |||||||||||||||||
Estimated future benefit payments to retirees from the Company's Non-U.S. pension trust are as follows: | |||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
2015 | $ | 749 | |||||||||||||||
2016 | 858 | ||||||||||||||||
2017 | 910 | ||||||||||||||||
2018 | 815 | ||||||||||||||||
2019 | 1,055 | ||||||||||||||||
2020 - 2024 | 7,531 | ||||||||||||||||
Information regarding the pension plan with projected benefit obligations and accumulated benefit obligations in excess of the fair value of plan assets as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Non-U.S. Pension Plan | |||||||||||||||||
Projected benefit obligation and accumulated benefit obligation | $ | 49,546 | $ | 46,873 | |||||||||||||
Fair value of plan assets | 46,734 | 43,592 | |||||||||||||||
Excess of projected benefit obligation and accumulated benefit obligation over plan assets | $ | 2,812 | $ | 3,281 | |||||||||||||
Weighted average assumptions used to measure the benefit obligation for the Company's defined benefit plan as of December 31, 2014 and 2013 is as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted Average Assumptions | |||||||||||||||||
Discount rate used for liability determination | 3.75 | % | 4.5 | % | |||||||||||||
Measurement date | September 30 | September 30 | |||||||||||||||
Weighted average assumptions used to measure the net periodic benefit cost for the Company's defined benefit plan for the year ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted Average Assumptions | |||||||||||||||||
Discount rate used for expense determination | 4.5 | % | 4.75 | % | |||||||||||||
Long term rate of return on assets | 6 | % | 6 | % | |||||||||||||
Assumed rate of increase for pension payments | 3.25 | % | 3.25 | % | |||||||||||||
Actual and target allocation of the plan assets for 2014 and 2013 by asset category are as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Target Allocation | Actual Allocation | Target Allocation | Actual Allocation | ||||||||||||||
Asset Category | |||||||||||||||||
Equity securities | 47.5 | % | 48 | % | 47.5 | % | 51 | % | |||||||||
Fixed income securities | 40 | % | 42 | % | 40 | % | 39 | % | |||||||||
Real estate partnerships | 12.5 | % | 10 | % | 12.5 | % | 10 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
The following table sets forth, by level within the fair value hierarchy, the Company's defined benefit plan assets as of December 31, 2014 and 2013: | |||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
As of December 31, 2014 | |||||||||||||||||
Money market funds | $ | 185 | $ | 185 | $ | — | $ | — | |||||||||
Registered investment companies: | |||||||||||||||||
Equity mutual funds | 22,376 | 22,376 | — | — | |||||||||||||
Fixed income mutual funds | 19,423 | 19,423 | — | — | |||||||||||||
Total registered investment companies | 41,799 | 41,799 | — | — | |||||||||||||
Real estate partnerships | 4,750 | 4,750 | — | ||||||||||||||
$ | 46,734 | $ | 41,984 | $ | 4,750 | $ | — | ||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||
Money market funds | $ | 196 | $ | 196 | $ | — | $ | — | |||||||||
Registered investment companies: | |||||||||||||||||
Equity mutual funds | 22,159 | 22,159 | — | — | |||||||||||||
Fixed income mutual funds | 16,871 | 16,871 | — | — | |||||||||||||
Total registered investment companies | 39,030 | 39,030 | — | — | |||||||||||||
Real estate partnerships | 4,366 | — | 4,366 | — | |||||||||||||
$ | 43,592 | $ | 39,226 | $ | 4,366 | $ | — | ||||||||||
Defined Contribution Plans | |||||||||||||||||
The Company sponsors multiple defined contribution pension plans, which are available to a majority of its employees. Contributions to these plans were based on a percentage of employee contributions or earnings. The cost of the Company's domestic plan was approximately $4,241, $2,561 and $1,919 for the years ended December 31, 2014, 2013 and 2012, respectively. The cost of the Company's European plans was approximately $6,167, $2,575, and $1,054 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share | Earnings per Share | ||||||||||||
Effective January 1, 2009, the Company adopted ASC subtopic 260-10, Determining Whether Instruments Granted in Share-Based Payments Transactions Are Participating Securities. ASC 260-10 provides that unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents, whether paid or unpaid, are participating securities and are to be included in the computation of earnings per share under the two-class method. The Company’s unvested restricted shares contain rights to receive nonforfeitable dividends and are participating securities, requiring the two-class method of computing earnings per share. | |||||||||||||
The Company paid a ten percent stock dividend on September 4, 2013 and September 20, 2012 As such, the weighted average number of shares used for basic and diluted earnings per share have been adjusted retroactively in the prior periods. | |||||||||||||
The following, is a summary of the elements used in calculating basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||
(Amounts in Thousands, except for earnings per share) | 2014 | 2013 | 2012 | ||||||||||
Basics earnings per share: | |||||||||||||
Net income attributable to AmTrust common stockholders | $ | 434,276 | $ | 278,237 | $ | 177,987 | |||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||||
Net income allocated to AmTrust common stockholders | $ | 433,059 | $ | 277,806 | $ | 177,281 | |||||||
Weighted average common shares outstanding – basic | 75,144 | 74,278 | 73,534 | ||||||||||
Less: Weighted average participating shares outstanding | 211 | 115 | 265 | ||||||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||||
Net income per AmTrust common shares – basic | $ | 5.78 | $ | 3.75 | $ | 2.42 | |||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to AmTrust common stockholders | $ | 434,276 | $ | 278,237 | $ | 177,987 | |||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||||
Net income allocated to AmTrust common stockholders | $ | 433,059 | $ | 277,806 | $ | 177,281 | |||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||||
Plus: Dilutive effect of stock options, convertible debt, other | 4,584 | 3,821 | 2,351 | ||||||||||
Weighted average common shares outstanding – dilutive | 79,517 | 77,984 | 75,620 | ||||||||||
Net income per AmTrust common shares – diluted | $ | 5.45 | $ | 3.56 | $ | 2.34 | |||||||
As of December 31, 2014, there were less than 8,000 anti-dilutive securities excluded from diluted earnings per share. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||
Stockholders' Equity | Stockholders' Equity | ||||||||||||||||||||
Preferred Stock Issuances | |||||||||||||||||||||
On June 10, 2013, the Company issued 4,600,000 shares of 6.75% Non-Cumulative Series A Preferred Stock (the “Preferred Stock”). Dividends on the Preferred Stock when, as and if declared by the Company’s Board of Directors or a duly authorized committee of the Board will accrue and be payable on the liquidation preference amount ($25), on a non-cumulative basis, quarterly in arrears on the 15th day of March, June, September and December of each year (each, a “dividend payment date”), at an annual rate of 6.75%. During the year ended December 31, 2013, the Company paid dividends on the Preferred Stock in the amount of $3,989. | |||||||||||||||||||||
Dividends on the Preferred Stock are not cumulative. Accordingly, in the event dividends are not declared on the Preferred Stock for payment on any dividend payment date, then those dividends will not accumulate and will not be payable. If the Company has not declared a dividend before the dividend payment date for any dividend period, the Company will have no obligation to pay dividends for that dividend period, whether or not dividends on the Preferred Stock are declared for any future dividend payment. During any dividend period, so long as any shares of Preferred Stock remain outstanding, unless the full dividends for the latest completed dividend period on all outstanding shares of Preferred Stock have been declared and paid, no dividend shall be paid or declared on the shares of common stock. | |||||||||||||||||||||
The shares of Preferred Stock have no stated maturity date and are redeemable in whole or in part at the Company’s option any time after June 10, 2018 at a redemption price of $25 per share plus any declared and unpaid dividends, without accumulation of any undeclared dividends. The holders of the Preferred Stock have no voting rights other than the right to elect up to two directors if dividends on the Preferred Stock are not declared and paid for six or more dividend periods. Holders of Preferred Stock have no right to convert the Preferred Stock into, or exchange Preferred Stock for, any other securities or property of the Company. | |||||||||||||||||||||
Upon any dissolution, liquidation or “winding up” of the Company, holders of Preferred Stock will be entitled to receive out of the Company’s assets, whether from capital, surplus or earnings, and before any distribution of any assets is made on the Company’s common stock, the liquidation preference of $25 per share, plus unpaid dividends, if any, to the date fixed for distribution. Holders of Preferred Stock will be entitled to no further participation in any distribution made in conjunction with any dissolution, liquidation or “winding up.” | |||||||||||||||||||||
On July 1, 2014, the Company completed a public offering of 4,000,000 of its depositary shares, each representing a 1/40th interest in a share of its 7.25% Non-Cumulative Preferred Stock, Series B, $0.01 par value per share (the "Series B Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in all rights and preferences of the Series B Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). Dividends on the Series B Preferred Stock represented by the depositary shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the Company’s Board of Directors, at a rate of 7.25% per annum, quarterly in arrears, on March 15, June 15, September 15, and December 15 of each year, beginning on September 15, 2014, from and including the date of original issuance. The Series B Preferred Stock represented by the depositary shares is not redeemable prior to July 1, 2019. After that date, the Company may redeem at its option, in whole or in part, the Series B Preferred Stock represented by the depositary shares at a redemption price of $1,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. On July 10, 2014, the underwriters exercised, in part, their over-allotment option with respect to 200,000 additional depositary shares, each representing a 1/40th interest in a share of Series B Preferred Stock, on the same terms and conditions as the original issuance. A total of 4,200,000 depositary shares (equivalent to 105,000 shares of Series B Preferred Stock) were issued. Net proceeds from this offering, including the over-allotment, were $101,702. In addition, the Company incurred $3,614 in underwriting discount and commissions and expenses, which were recognized as a reduction to additional paid-in capital. | |||||||||||||||||||||
On September 16, 2014, the Company completed a public offering of 3,200,000 of its depositary shares, each representing a 1/40th interest in a share of its 7.625% Non-Cumulative Preferred Stock, Series C, $0.01 par value per share (the "Series C Preferred Stock"), with a liquidation preference of $1,000 per share (equivalent to $25 per depositary share). Each depositary share entitles the holder to a proportional fractional interest in all rights and preferences of the Series C Preferred Stock represented thereby (including any dividend, liquidation, redemption and voting rights). Dividends on the Series C Preferred Stock represented by the depositary shares will be payable on the liquidation preference amount, on a non-cumulative basis, when, as and if declared by the Company’s Board of Directors, at a rate of 7.625% per annum, quarterly in arrears, on March 15, June 15, September 15, and December 15 of each year, beginning on December 15, 2014, from and including the date of original issuance. The Series C Preferred Stock represented by the depositary shares is not redeemable prior to September 16, 2019. After that date, the Company may redeem at its option, in whole or in part, the Series C Preferred Stock represented by the depositary shares at a redemption price of $1,000 per share (equivalent to $25 per depositary share) plus any declared and unpaid dividends for prior dividend periods and accrued but unpaid dividends (whether or not declared) for the then current dividend period. Net proceeds from this offering were $77,480. In addition, the Company incurred $2,745 in underwriting discount and commissions and expenses, which were recognized as a reduction to additional paid-in capital. | |||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||
The following tables summarize accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||||
(Amounts in Thousands) | Foreign | Unrealized | Interest Rate | Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity | Accumulated | ||||||||||||||||
Currency | Gains | Swap Hedge | Other | ||||||||||||||||||
Items | (Losses) on | Comprehensive | |||||||||||||||||||
Investments | Income (Loss) | ||||||||||||||||||||
Balance, December 31, 2011 | $ | (17,091 | ) | $ | 9,372 | $ | (2,280 | ) | $ | — | $ | (9,999 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 10,354 | 98,334 | (1,128 | ) | — | 107,560 | |||||||||||||||
Amounts reclassed from accumulated other comprehensive income (loss) | — | 6,640 | — | — | 6,640 | ||||||||||||||||
Income tax benefit (expense) | (3,624 | ) | (36,741 | ) | 395 | — | (39,970 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 6,730 | 68,233 | (733 | ) | — | 74,230 | |||||||||||||||
Balance, December 31, 2012 | (10,361 | ) | 77,605 | (3,013 | ) | — | 64,231 | ||||||||||||||
Other comprehensive income (loss) before reclassification | 19,912 | (138,902 | ) | 1,581 | (2,257 | ) | (119,666 | ) | |||||||||||||
Amounts reclassed from accumulated other comprehensive income (loss) | — | 8,707 | — | — | 8,707 | ||||||||||||||||
Income tax benefit (expense) | (6,969 | ) | 45,567 | (553 | ) | 519 | 38,564 | ||||||||||||||
Net current-period other comprehensive income (loss) | 12,943 | (84,628 | ) | 1,028 | (1,738 | ) | (72,395 | ) | |||||||||||||
Balance, December 31, 2013 | 2,582 | (7,023 | ) | (1,985 | ) | (1,738 | ) | (8,164 | ) | ||||||||||||
Other comprehensive income (loss) before reclassification | (26,706 | ) | 133,775 | 1,022 | (1,623 | ) | 106,468 | ||||||||||||||
Amounts reclassed from accumulated other comprehensive income | — | (7,566 | ) | — | — | (7,566 | ) | ||||||||||||||
Income tax benefit (expense) | 9,348 | (44,173 | ) | (358 | ) | 568 | (34,615 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | (17,358 | ) | 82,036 | 664 | (1,055 | ) | 64,287 | ||||||||||||||
Balance, December 31, 2014 | $ | (14,776 | ) | $ | 75,013 | $ | (1,321 | ) | $ | (2,793 | ) | $ | 56,123 | ||||||||
During the years ended December 31, 2014, 2013 and 2012, amounts reclassed from accumulated other comprehensive income (loss) into net income were included in net realized gain on investment. |
New_Market_Tax_Credit
New Market Tax Credit | 12 Months Ended |
Dec. 31, 2014 | |
New Market Tax Credit [Abstract] | |
New Market Tax Credit | New Market Tax Credit |
In 2012, the Company's subsidiary, 800 Superior, LLC (an entity owned equally by the Company and NGHC), received $19,400 in net proceeds from a financing transaction the Company and NGHC entered into with Key Community Development Corporation (“KCDC”) related to a capital improvement project for an office building in Cleveland, Ohio owned by 800 Superior, LLC. The Company, NGHC and KCDC collectively made capital contributions (net of allocation fees) and loans to 800 Superior NMTC Investment Fund II and 800 Superior NMTC Investment Fund I LLC (collectively, the “Investment Funds”) under a qualified New Markets Tax Credit (“NMTC”) program. The NMTC program was provided for in the Community Renewal Tax Relief Act of 2000 (the “Act”) and is intended to induce capital investment in qualified lower income communities. The Act permits taxpayers to claim credits against their federal income taxes for up to 39% of qualified investments in the equity of community development entities (“CDEs”). CDEs are privately managed investment institutions that are certified to make qualified low-income community investments (“QLICIs”). | |
In addition to the capital contributions and loans from the Company, NGHC and KCDC, as part of the transaction, the Investment Funds received, directly and indirectly, proceeds of approximately $8,000 through two loans originating from state and local governments of Ohio. These loans are each for a period of 15 years and have an average interest rate of 1.7% per annum. | |
The Investment Funds then contributed the loan proceeds and capital contributions of $19,400 to two CDEs, which, in turn, loaned the funds on similar terms to 800 Superior, LLC. The proceeds of the loans from the CDEs (including loans representing the capital contribution made by KCDC, net of allocation fees) will be used to fund the capital improvement project. As collateral for these loans, the Company has granted a security interest in the assets acquired with the loan proceeds. | |
The Company and NGHC are each entitled to receive an equal portion of 49% of the benefits derived from the NMTCs generated by 800 Superior Investment Fund II LLC, while KCDC is entitled to the remaining 51%. The NMTC is subject to 100% recapture for a period of seven years as provided in the Internal Revenue Code. During this seven years compliance period, the entities involved are required to be in compliance with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in the projected tax benefits not being realized and, therefore, could require the Company to indemnify KCDC for any loss or recapture of NMTCs related to the financing until such time as the obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. In addition, this transaction includes a put/call provision whereby the Company may be obligated or entitled to repurchase KCDC's interest in the Investment Funds in September 2019 at the end of the recapture period. The Company believes that KCDC will exercise its put option and, therefore, attributed an insignificant value to the put/call. | |
The Company has determined that the Investment Funds are variable interest entities (“VIEs”). The ongoing activities of the Investment Funds - collecting and remitting interest and fees and NMTC compliance - were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the Investment Funds. When determining whether to consolidate the Investment Funds, Company management considered the contractual arrangements that obligate it to deliver tax benefits and provide various other guarantees to the structure, KCDC's lack of a material interest in the underlying economics of the project, and the fact that the Company is obligated to absorb losses of the Investment Funds. Also, the Company has a 13.2% ownership in NGHC. The Company concluded that it was the primary beneficiary and consolidated the Investment Funds, as VIEs, in accordance with the accounting standard for consolidation. KCDC's contribution, net of syndication fees, is included as an accrued liability in the accompanying consolidated balance sheets. Direct costs incurred in structuring the financing arrangement are deferred and will be recognized as expense over the term of the loans. Incremental costs to maintain the structure during the compliance period are recognized as incurred. |
Commitment_and_Contingencies
Commitment and Contingencies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Litigation | ||||
The Company’s insurance subsidiaries are named as defendants in various legal actions arising principally from claims made under insurance policies and contracts. Those actions are considered by the Company in estimating the loss and LAE reserves. The Company’s management believes the resolution of those actions will not have a material adverse effect on the Company’s financial position or results of operations. | ||||
Lease Commitments | ||||
The Company is obligated under approximately 95 leases for office space expiring at various dates through 2023. Future minimum lease payments as of December 31, 2014 under non-cancellable operating leases for each of the next five years are approximately as follows: | ||||
(Amounts in Thousands) | ||||
2015 | $ | 19,573 | ||
2016 | 17,478 | |||
2017 | 14,642 | |||
2018 | 11,787 | |||
2019 | 10,785 | |||
2020 and Thereafter | 28,443 | |||
$ | 102,708 | |||
Rent expense for the years ended December 31, 2014, 2013 and 2012 was $16,314, $15,658 and $11,518, respectively. | ||||
Employment Agreements | ||||
The Company has employment agreements with approximately 44 of its key executives and employees. The agreements terminate on varying dates through 2020, contain annual minimum levels of compensation, and contain bonuses based on the Company’s achieving certain financial targets. The annual future minimums in the aggregate are as follows through 2020: | ||||
(Amounts in Thousands) | ||||
2015 | $ | 13,616 | ||
2016 | 7,293 | |||
2017 | 3,818 | |||
2018 | 919 | |||
2019 | 602 | |||
2020 and Thereafter | 422 | |||
$ | 26,670 | |||
Statutory_Financial_Data_Risk_
Statutory Financial Data, Risk Based Capital and Dividend Restrictions | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Insurance [Abstract] | |||||||||||||||||
Statutory Financial Data, Risk Based Capital and Dividend Restrictions | Statutory Financial Data, Risk Based Capital and Dividend Restrictions | ||||||||||||||||
The Company’s insurance subsidiaries file financial statements in accordance with statutory accounting practices (“SAP”) prescribed or permitted by domestic or foreign insurance regulatory authorities. The differences between statutory financial statements and financial statements prepared in accordance with GAAP vary between domestic and foreign jurisdictions. The principal differences relate to (1) acquisition costs incurred in connection with acquiring new business which are charged to expense under SAP but under GAAP are deferred and amortized as the related premiums are earned; (2) limitation on net deferred tax assets created by the tax effects of temporary differences; (3) unpaid losses and loss expense, and unearned premium reserves are presented gross of reinsurance with a corresponding asset recorded; and (4) fixed maturity portfolios that are carried at fair value and changes in fair value are reflected directly in unassigned surplus, net of related deferred taxes. | |||||||||||||||||
Property and casualty insurance companies in the United States are subject to certain Risk-Based Capital (“RBC”) requirements as specified by the National Association of Insurance Commissioners ("NAIC"). Under such requirements, the amount of Statutory Capital and Surplus maintained by a property and casualty insurance company is to be determined on various risk factors. As of December 31, 2014 and 2013, the Statutory Capital and Surplus of the Company’s fifteen insurance subsidiaries domiciled in the United States exceeded the RBC requirements. | |||||||||||||||||
Statutory capital and surplus and required statutory capital and surplus for the Company's insurance subsidiaries as reported to regulatory authorities as of December 31, 2014 and 2013 were approximately as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Amounts in Thousands) | Statutory Capital | Required Statutory Capital and Surplus (1) | Statutory Capital | Required Statutory Capital and Surplus (1) | |||||||||||||
and Surplus | and Surplus | ||||||||||||||||
TIC (domestic) | $ | 479,437 | $ | 178,941 | $ | 236,528 | $ | 108,377 | |||||||||
RIC (domestic) | 82,350 | 31,082 | 58,845 | 22,587 | |||||||||||||
WIC (domestic) | 215,530 | 125,810 | 166,813 | 79,857 | |||||||||||||
AIIC (domestic) | 74,014 | 17,416 | 74,076 | 17,373 | |||||||||||||
SNIC (domestic) | 123,573 | 50,607 | 79,780 | 32,603 | |||||||||||||
MCIC (domestic) | 17,713 | 5,287 | 14,912 | 3,620 | |||||||||||||
ALIC (domestic) | 2,162 | 217 | 2,155 | 245 | |||||||||||||
AICK (domestic) | 19,304 | 6,752 | 15,275 | 5,307 | |||||||||||||
SIC (domestic) | 79,475 | 15,231 | 74,502 | 17,354 | |||||||||||||
SID (domestic) | 9,799 | 665 | 9,820 | 705 | |||||||||||||
FNIC (domestic) | 36,104 | 7,736 | 35,428 | 7,787 | |||||||||||||
DSIC (domestic) (2) | 82,243 | 11,361 | |||||||||||||||
ICC (domestic) (2) | 20,699 | 528 | |||||||||||||||
FATIC (domestic) (2) | 10,538 | 500 | |||||||||||||||
COIC (domestic) (2) | 29,011 | 8,424 | |||||||||||||||
AEL (United Kingdom) | 290,916 | 62,925 | 246,292 | 61,738 | |||||||||||||
AIU (Ireland) | 195,208 | 37,865 | 169,465 | 43,124 | |||||||||||||
AII (Bermuda) | 679,967 | 244,509 | 445,077 | 221,330 | |||||||||||||
AILSA (Luxembourg) | 6,874 | 6,526 | 7,204 | 6,165 | |||||||||||||
MIC (United Kingdom) | 130,169 | 20,122 | 95,649 | 22,957 | |||||||||||||
(1) For the Company's U.S. insurance companies and AIU, except FATIC, the amount is equal to the Regulatory Action Level ("RAL") as defined by NAIC or the minimum amount required to avoid regulatory oversight. For AEL, MIC, AII and AILSA, the amount is equal to the minimum capital required by their respective country's regulatory authority. For FATIC, the amount is equal to the minimum capital required by the regulatory authority in its state of domicile. | |||||||||||||||||
(2) As these entities were acquired in 2014, the 2013 information is not presented. | |||||||||||||||||
Statutory net income for the insurance subsidiaries for the years ended December 31, 2014, 2013 and 2012 as reported to regulatory authorities were approximately as follows: | |||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||
TIC (domestic) | $ | 21,418 | $ | 16,614 | $ | 45,621 | |||||||||||
RIC (domestic) | 9,440 | 8,158 | 1,129 | ||||||||||||||
WIC (domestic) | 14,150 | 21,447 | 9,263 | ||||||||||||||
AIIC (domestic) | 8,297 | 12,810 | 5,570 | ||||||||||||||
SNIC (domestic) | 30,666 | 14,350 | 10,624 | ||||||||||||||
MCIC (domestic) | 3,226 | 1,671 | 1,519 | ||||||||||||||
ALIC (domestic) | 2 | 18 | 15 | ||||||||||||||
AICK (domestic) | 4,081 | 3,413 | 1,198 | ||||||||||||||
SIC (domestic) (1) | 9,535 | 4,464 | |||||||||||||||
SID (domestic) (1) | 35 | 634 | |||||||||||||||
FNIC (domestic) (1) | (1,186 | ) | (4,596 | ) | |||||||||||||
DSIC (domestic) (1) | 4,124 | ||||||||||||||||
ICC (domestic) (1) | 1,565 | ||||||||||||||||
FATIC (domestic) (1) | (664 | ) | |||||||||||||||
COIC (domestic) (1) | (946 | ) | |||||||||||||||
AEL (United Kingdom) | 56,766 | 50,452 | 54,967 | ||||||||||||||
AIU (Ireland) | 50,697 | 34,223 | 20,767 | ||||||||||||||
AII (Bermuda) | 78,142 | 5,282 | 107,980 | ||||||||||||||
AILSA (Luxembourg) (1) | 207 | (27 | ) | ||||||||||||||
MIC (United Kingdom) (1) | 28,856 | 7,515 | |||||||||||||||
(1) Information is presented only for years the subsidiaries were owned by the Company. The amounts reported in year of acquisition are for the entire year and do not represent the statutory net income for the period of ownership. | |||||||||||||||||
The Company’s insurance subsidiaries are subject to statutory and regulatory restrictions applicable to insurance companies, and imposed by the states of domicile, which limit the amount of cash dividends or distributions that they may pay to approximately $844,037 and $473,253 as of December 31, 2014 and 2013, respectively. During 2014, 2013 and 2012, the Company received a dividend of approximately $7,400, $6,900 and $7,200, respectively, from one of its subsidiaries. In addition to the restrictions on the insurance subsidiaries, there are also restrictions in the Parent company's debt instruments, which require dividends to be limited to an amount that, after giving immediate effect to such dividend payments on a pro forma basis, would allow the Company to remain in compliance with its debt covenants. There were no other material restrictions on net assets in place as of December 31, 2014. Accordingly, the total amount of unrestricted net assets for consolidated subsidiaries as of December 31, 2014 and 2013 was $844,037 and $473,253, respectively. |
Geographic_Information
Geographic Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Geographic Information | Geographic Information | ||||||||||||
Four of the Company’s insurance subsidiaries (AII, AIU, MIC and AEL) operate outside the United States. Their assets and liabilities are located principally in the countries where the insurance risks are written or assumed. For 2014, 21% of the Company’s gross written premiums related to foreign risks, of which 43% were written from the United Kingdom. For 2013 and 2012, 27% and 29%, respectively, of the Company's gross written premiums related to foreign risks, of which 42% and 38%, respectively, were written from Italy and the United Kingdom, respectively. As of December 31, 2014 and 2013, approximately 45% and 51%, respectively, of the Company's consolidated assets were located outside the United States. For the years ended 2014, 2013 and 2012, approximately 66%, 83% and 72%, respectively, of the consolidated revenues earned by the Company were located in or derived from foreign countries. | |||||||||||||
The domestic and foreign components of Income before income tax and equity in earnings (loss) of unconsolidated subsidiaries for the years ended December 31, 2014, 2013 and 2012 are as follows: | |||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 267,486 | $ | 243,566 | $ | 79,638 | |||||||
Foreign | 204,447 | 123,480 | 117,219 | ||||||||||
$ | 471,933 | $ | 367,046 | $ | 196,857 | ||||||||
The following table summarizes the Company’s operations by major geographic segment: | |||||||||||||
(Amounts in Thousands) | Domestic | Bermuda | Other Foreign | ||||||||||
December 31, 2014: | |||||||||||||
Revenue | $ | 1,394,497 | $ | 1,417,781 | $ | 1,272,053 | |||||||
Property and equipment | 143,027 | — | 11,148 | ||||||||||
December 31, 2013: | |||||||||||||
Revenue | $ | 468,980 | $ | 1,600,809 | $ | 628,106 | |||||||
Property and equipment | 95,689 | — | 8,610 | ||||||||||
December 31, 2012: | |||||||||||||
Revenue | $ | 467,617 | $ | 984,582 | $ | 215,975 | |||||||
Property and equipment | 72,899 | — | 3,034 | ||||||||||
Segments
Segments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Segments | Segments | ||||||||||||||||||||||||
The Company currently operates three business segments, Small Commercial Business; Specialty Risk and Extended Warranty; and Specialty Program. The Company also has a segment, Personal Lines Reinsurance, which is in run-off. The “Corporate & Other” segment represents the activities of the holding company as well as a portion of service and fee revenue. In determining total assets (excluding cash and invested assets) by segment, the Company identifies those assets that are attributable to a particular segment such as deferred acquisition cost, reinsurance recoverable, goodwill, intangible assets and prepaid reinsurance while the remaining assets are allocated based on gross written premium by segment. In determining cash and invested assets by segment, the Company matches certain identifiable liabilities such as unearned premium and loss and loss adjustment expense reserves by segment. The remaining cash and invested assets are then allocated based on gross written premium by segment. Investment income and realized gains (losses) are determined by calculating an overall annual return on cash and invested assets and applying that overall return to the cash and invested assets by segment. Ceding commission revenue is allocated to each segment based on that segment’s proportionate share of the Company’s overall acquisition costs. Interest expense is allocated based on gross written premium by segment. Income taxes are allocated on a pro-rata basis based on the Company’s effective tax rate. Additionally, management reviews the performance of underwriting income in assessing the performance of and making decisions regarding the allocation of resources to the segments. Underwriting income excludes, primarily, service and fee revenue, investment income and other revenues, other expenses, interest expense and income taxes. Management believes that providing this information in this manner is essential to providing Company’s stockholders with an understanding of the Company’s business and operating performance. | |||||||||||||||||||||||||
During the years ended December 31, 2014, 2013 and 2012, the Company’s Specialty Risk and Extended Warranty segment derived over ten percent of its total revenue from one broker. During the years ended 2014 and 2013, the Company’s Specialty Program segment derived over ten percent of its total revenue from one broker and in 2012 the segment derived over ten percent of its total revenue from two brokers. | |||||||||||||||||||||||||
The following tables summarize business segments as follows for 2014, 2013 and 2012: | |||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||
Gross written premium | $ | 2,999,714 | $ | 1,983,052 | $ | 1,105,199 | $ | — | $ | — | $ | 6,087,965 | |||||||||||||
Net written premium | $ | 1,882,383 | $ | 1,333,747 | $ | 740,488 | $ | — | $ | — | $ | 3,956,618 | |||||||||||||
Change in unearned premium | (275,578 | ) | (101,509 | ) | (61,876 | ) | 8,909 | — | (430,054 | ) | |||||||||||||||
Net earned premium | 1,606,805 | 1,232,238 | 678,612 | 8,909 | — | 3,526,564 | |||||||||||||||||||
Loss and loss adjustment expense | (1,055,521 | ) | (817,780 | ) | (456,422 | ) | (12,896 | ) | — | (2,342,619 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (416,965 | ) | (253,794 | ) | (183,541 | ) | (2,623 | ) | — | (856,923 | ) | ||||||||||||||
(1,472,486 | ) | (1,071,574 | ) | (639,963 | ) | (15,519 | ) | — | (3,199,542 | ) | |||||||||||||||
Underwriting income | 134,319 | 160,664 | 38,649 | (6,610 | ) | — | 327,022 | ||||||||||||||||||
Service and fee income | 95,430 | 253,220 | 428 | — | 60,665 | 409,743 | |||||||||||||||||||
Investment income and realized gain | 62,810 | 56,852 | 27,994 | 368 | — | 148,024 | |||||||||||||||||||
Other expenses | (215,002 | ) | (142,134 | ) | (79,214 | ) | — | — | (436,350 | ) | |||||||||||||||
Interest expense including loss on extinguishment of debt | (27,439 | ) | (18,139 | ) | (10,110 | ) | — | — | (55,688 | ) | |||||||||||||||
Foreign currency gain | — | 60,245 | — | — | — | 60,245 | |||||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 6,064 | 4,008 | 2,234 | — | — | 12,306 | |||||||||||||||||||
Gain on sale of subsidiary | 6,631 | — | — | — | — | 6,631 | |||||||||||||||||||
Provision for income taxes | (6,741 | ) | (40,211 | ) | 2,148 | 670 | (9,552 | ) | (53,686 | ) | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | — | — | — | — | 28,351 | 28,351 | |||||||||||||||||||
Net income | $ | 56,072 | $ | 334,505 | $ | (17,871 | ) | $ | (5,572 | ) | $ | 79,464 | $ | 446,598 | |||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||
Gross written premium | $ | 1,659,980 | $ | 1,511,649 | $ | 879,455 | $ | 65,827 | $ | — | $ | 4,116,911 | |||||||||||||
Net written premium | $ | 935,313 | $ | 944,081 | $ | 620,452 | $ | 65,827 | $ | — | $ | 2,565,673 | |||||||||||||
Change in unearned premium | (101,501 | ) | (132,244 | ) | (100,081 | ) | 34,143 | — | (299,683 | ) | |||||||||||||||
Net earned premium | 833,812 | 811,837 | 520,371 | 99,970 | — | 2,265,990 | |||||||||||||||||||
Loss and loss adjustment expense | (548,598 | ) | (545,516 | ) | (355,067 | ) | (68,180 | ) | — | (1,517,361 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (212,824 | ) | (151,188 | ) | (138,650 | ) | (30,500 | ) | — | (533,162 | ) | ||||||||||||||
(761,422 | ) | (696,704 | ) | (493,717 | ) | (98,680 | ) | — | (2,050,523 | ) | |||||||||||||||
Underwriting income | 72,390 | 115,133 | 26,654 | 1,290 | — | 215,467 | |||||||||||||||||||
Service and fee income | 87,519 | 191,941 | 114 | — | 51,985 | 331,559 | |||||||||||||||||||
Investment income and realized gain | 34,665 | 46,304 | 18,464 | 913 | — | 100,346 | |||||||||||||||||||
Other expenses | (117,583 | ) | (107,076 | ) | (62,295 | ) | (4,663 | ) | — | (291,617 | ) | ||||||||||||||
Interest expense | (13,987 | ) | (12,738 | ) | (7,411 | ) | (555 | ) | — | (34,691 | ) | ||||||||||||||
Foreign currency loss | — | (6,533 | ) | — | — | — | (6,533 | ) | |||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 1,532 | 1,395 | 812 | 61 | — | 3,800 | |||||||||||||||||||
Acquisition gain on purchase | 23,183 | 25,532 | — | — | — | 48,715 | |||||||||||||||||||
Provision for income taxes | (24,389 | ) | (64,281 | ) | 5,989 | 748 | (16,086 | ) | (98,019 | ) | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | — | — | — | — | 11,566 | 11,566 | |||||||||||||||||||
Net income | $ | 63,330 | $ | 189,677 | $ | (17,673 | ) | $ | (2,206 | ) | $ | 47,465 | $ | 280,593 | |||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||||||
Total gross written premium | $ | 933,740 | $ | 1,118,710 | $ | 578,735 | $ | 118,141 | $ | — | $ | 2,749,326 | |||||||||||||
Net written premium | $ | 474,381 | $ | 624,555 | $ | 430,960 | $ | 118,141 | $ | — | $ | 1,648,037 | |||||||||||||
Change in unearned premium | (57,816 | ) | (82,982 | ) | (82,392 | ) | (5,995 | ) | — | (229,185 | ) | ||||||||||||||
Net earned premium | 416,565 | 541,573 | 348,568 | 112,146 | 1,418,852 | ||||||||||||||||||||
Loss and loss adjustment expense | (270,843 | ) | (341,196 | ) | (238,302 | ) | (72,334 | ) | — | (922,675 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (110,895 | ) | (112,491 | ) | (98,415 | ) | (34,204 | ) | — | (356,005 | ) | ||||||||||||||
(381,738 | ) | (453,687 | ) | (336,717 | ) | (106,538 | ) | (1,278,680 | ) | ||||||||||||||||
Underwriting income | 34,827 | 87,886 | 11,851 | 5,608 | — | 140,172 | |||||||||||||||||||
Service and fee income | 53,886 | 86,672 | 1,342 | — | 30,274 | 172,174 | |||||||||||||||||||
Investment income and realized gain | 27,217 | 30,952 | 16,362 | 2,617 | — | 77,148 | |||||||||||||||||||
Other expenses | (54,788 | ) | (82,031 | ) | (33,958 | ) | (6,932 | ) | — | (177,709 | ) | ||||||||||||||
Interest expense | (9,682 | ) | (11,600 | ) | (6,001 | ) | (1,225 | ) | — | (28,508 | ) | ||||||||||||||
Foreign currency loss | — | (242 | ) | — | — | — | (242 | ) | |||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 4,694 | 5,624 | 2,910 | 594 | — | 13,822 | |||||||||||||||||||
Acquisition gain on purchase | — | — | — | — | — | — | |||||||||||||||||||
Provision for income taxes | (5,800 | ) | (12,109 | ) | 774 | (68 | ) | (4,089 | ) | (21,292 | ) | ||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | $ | — | $ | — | $ | — | $ | — | $ | 9,295 | $ | 9,295 | |||||||||||||
Net income | $ | 50,354 | $ | 105,152 | $ | (6,720 | ) | $ | 594 | $ | 35,480 | $ | 184,860 | ||||||||||||
The following tables summarize net earned premium by major line of business, by segment, for 2014, 2013 and 2012: | |||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Total | ||||||||||||||||||||
Commercial | Risk and | Program | Lines | ||||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||
Workers' compensation | $ | 1,061,130 | $ | — | $ | 260,756 | $ | — | $ | 1,321,886 | |||||||||||||||
Warranty | — | 433,710 | 234 | — | 433,944 | ||||||||||||||||||||
Other liability | 98,846 | 198,505 | 127,364 | — | 424,715 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 162,377 | 25,255 | 116,528 | 1,563 | 305,723 | ||||||||||||||||||||
Medical malpractice | — | 176,608 | — | — | 176,608 | ||||||||||||||||||||
Other | 284,452 | 398,160 | 173,730 | 7,346 | 863,688 | ||||||||||||||||||||
Total net earned premium | $ | 1,606,805 | $ | 1,232,238 | $ | 678,612 | $ | 8,909 | $ | 3,526,564 | |||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||
Workers' compensation | $ | 665,087 | $ | — | $ | 166,071 | $ | — | $ | 831,158 | |||||||||||||||
Warranty | — | 397,978 | 1,952 | — | 399,930 | ||||||||||||||||||||
Other liability | 37,308 | 108,018 | 125,827 | 7 | 271,160 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 51,623 | 13,631 | 108,962 | 8,612 | 182,828 | ||||||||||||||||||||
Medical malpractice | — | 191,217 | — | — | 191,217 | ||||||||||||||||||||
Other | 79,794 | 100,993 | 117,559 | 91,351 | 389,697 | ||||||||||||||||||||
Total net earned premium | $ | 833,812 | $ | 811,837 | $ | 520,371 | $ | 99,970 | $ | 2,265,990 | |||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||||||
Workers' compensation | $ | 340,221 | $ | — | $ | 96,326 | $ | — | $ | 436,547 | |||||||||||||||
Warranty | — | 226,559 | 10,303 | — | 236,862 | ||||||||||||||||||||
Other liability | 25,996 | 93,914 | 71,526 | 7 | 191,443 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 26,893 | 8,516 | 89,599 | 7,108 | 132,116 | ||||||||||||||||||||
Medical malpractice | — | 170,078 | — | — | 170,078 | ||||||||||||||||||||
Other | 23,455 | 42,506 | 80,814 | 105,031 | 251,806 | ||||||||||||||||||||
Total net earned premium | $ | 416,565 | $ | 541,573 | $ | 348,568 | $ | 112,146 | $ | 1,418,852 | |||||||||||||||
The following tables summarize total asses and long lived assets, by segment, as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and other | |||||||||||||||||||||
Business | Extended | Reinsurance | |||||||||||||||||||||||
Warranty | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Fixed assets | $ | 75,966 | $ | 50,220 | $ | 27,989 | $ | — | $ | — | $ | 154,175 | |||||||||||||
Goodwill and intangible assets | 285,583 | 348,216 | 33,882 | — | — | 667,681 | |||||||||||||||||||
Total assets | 6,142,645 | 5,441,378 | 2,248,901 | 14,444 | — | 13,847,368 | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Fixed assets | $ | 42,054 | $ | 38,297 | $ | 22,280 | $ | 1,668 | $ | — | $ | 104,299 | |||||||||||||
Goodwill and intangible assets | 233,566 | 399,954 | 31,873 | — | — | 665,393 | |||||||||||||||||||
Total assets | 4,261,764 | 5,036,121 | 1,894,538 | 86,703 | — | 11,279,126 | |||||||||||||||||||
Quarterly_Financial_Data_Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) | ||||||||||||||||
The Company paid a ten percent stock dividend on September 4, 2013. As such, the weighted average number of shares used for basic and diluted earnings per share have been adjusted retroactively for all periods presented and the prior quarters' basic and diluted earnings per share has been adjusted. | |||||||||||||||||
During the three months ended June 30, 2014, the Company retrospectively adjusted its gains related to its acquisitions of Sequoia and FNIC from $13,309 to $5,231 and from $18,511 to $17,951, respectively, for the three months ended June 30, 2013. | |||||||||||||||||
The following is a summary of the unaudited quarterly results of operations: | |||||||||||||||||
2014 | |||||||||||||||||
(Amounts in Thousands) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Earned premium | $ | 829,051 | $ | 874,937 | $ | 914,413 | $ | 908,163 | |||||||||
Investment income | 28,527 | 32,594 | 34,552 | 35,928 | |||||||||||||
Total revenue | 953,975 | 1,010,979 | 1,071,634 | 1,047,743 | |||||||||||||
Loss and loss adjustment expense | 558,570 | 587,233 | 609,352 | 587,464 | |||||||||||||
Acquisition costs and other underwriting expense | 186,609 | 208,060 | 225,512 | 236,742 | |||||||||||||
Other expense | 87,591 | 87,588 | 103,493 | 157,678 | |||||||||||||
Provision for income taxes | 27,444 | 17,966 | (7,664 | ) | 15,940 | ||||||||||||
Net income | 101,728 | 104,189 | 157,156 | 83,525 | |||||||||||||
Income attributable to Common Stockholders | 99,851 | 106,274 | 156,590 | 71,561 | |||||||||||||
Basic EPS | $1.34 | $1.41 | $2.09 | $0.94 | |||||||||||||
Diluted EPS | $1.27 | $1.33 | $1.97 | $0.88 | |||||||||||||
2013 | |||||||||||||||||
(Amounts in Thousands) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Earned premium | $ | 407,994 | $ | 536,539 | $ | 613,895 | $ | 707,562 | |||||||||
Investment income | 18,095 | 22,634 | 23,290 | 20,800 | |||||||||||||
Total revenue | 503,886 | 649,342 | 728,278 | 816,389 | |||||||||||||
Loss and loss adjustment expense | 272,256 | 364,110 | 410,579 | 470,416 | |||||||||||||
Acquisition costs and other underwriting expense | 100,285 | 129,946 | 137,186 | 165,745 | |||||||||||||
Other expense | 52,152 | 80,985 | 90,195 | 68,285 | |||||||||||||
Provision for income taxes | 16,109 | 27,402 | 23,880 | 30,628 | |||||||||||||
Net income | 83,001 | 71,397 | 59,689 | 66,506 | |||||||||||||
Income attributable to Common Stockholders | 83,878 | 71,397 | 58,238 | 64,724 | |||||||||||||
Basic EPS | $1.13 | $0.96 | $0.78 | $0.87 | |||||||||||||
Diluted EPS | $1.08 | $0.93 | $0.74 | $0.82 | |||||||||||||
Due to changes in number of shares outstanding from quarter to quarter, the total earnings per share of the four quarters may not necessarily equal the earnings per share for the year. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events |
Conversion of 2021 Notes | |
During the fourth quarter of 2014, certain holders of 2021 Notes submitted for conversion approximately $50,105 of notes under the Sale Price Condition discussed in Note 12. "Debt". Based on the terms of the 2021 Notes, $31,011 of these notes were settled prior to the filing of the Company's Annual Report on Form 10-K for the year ended December 31, 2014, which resulted in the Company paying $31,011 of cash and issuing 616,202 shares of the Company's common stock. The remainder of the 2021 Notes submitted for conversion during the fourth quarter of 2014 will settle during the three months ended March 31, 2015. In addition, approximately $3,500 of 2021 Notes were submitted for conversion subsequent to December 31, 2014. These notes will be settled during the three months ended March 31, 2015. | |
Issuance of Common Stock | |
During January and February 2015, the Company completed the sale of an aggregate of 3,450,000 shares of Common Stock in an underwritten public offering. Proceeds received from this offering were $172,500. Fees and expenses related to the offering were approximately $250. | |
Acquisition of TMI Solutions, LLC | |
On January 6, 2015, the Company acquired all of the issued and outstanding stock of TMI Solutions, LLC ("TMIS") for approximately $29,000 in cash as well as an earn-out provision that is contingent on TMIS meeting certain performance conditions. TMIS offers monthly billed warranty solutions for a variety of consumer electronics as well as consumer protection services. TMIS's warranties are primarily distributed in conjunction with large telecommunication monthly customer billing services. TMIS's established customers include Fortune 500 companies. TMIS’s results of operation will be included as a component of the Specialty Risk and Extended Warranty segment. | |
Acquisition of Oryx Insurance Brokerage, Inc. | |
On January 6, 2015, the Company acquired all of the issued and outstanding stock of Oryx Insurance Brokerage, Inc. ("Oryx") from Oryx's principals for approximately $29,700 in cash as well as an earn-out provision that is contingent on Oryx meeting certain performance conditions. Oryx, established in 1996, is a privately held managing general agent and wholesaler providing insurance products to the construction industry in upstate New York. For 2014, Oryx placed $80,000 in premiums through over 135 agencies with the majority of business underwritten by the Company. Oryx’s results of operation will be included as a component of the Specialty Program segment. |
Schedule_I_Summary_of_Investme
Schedule I - Summary of Investments Other Than Investments in Related Parties | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Summary of Investments, Other than Investments in Related Parties [Abstract] | |||||||||||||
Schedule I - Summary of Investments Other than Investments in Related Parties | SUMMARY OF INVESTMENTS | ||||||||||||
OTHER THAN INVESTMENTS IN RELATED PARTIES | |||||||||||||
At December 31, 2014 | Cost(1) | Value | Amount | ||||||||||
Type of Investment | at which | ||||||||||||
Shown in the | |||||||||||||
Balance Sheet | |||||||||||||
(In Thousands) | |||||||||||||
Fixed Maturities: | |||||||||||||
Bonds: | |||||||||||||
United States government and government agencies & authorities | $ | 1,009,704 | $ | 1,033,190 | $ | 1,033,190 | |||||||
States, municipalities and political subdivisions | 469,646 | 482,041 | 482,041 | ||||||||||
Foreign governments | 106,054 | 112,731 | 112,731 | ||||||||||
Public utilities | 137,169 | 138,692 | 138,692 | ||||||||||
All other corporate bonds | 2,414,573 | 2,486,620 | 2,486,620 | ||||||||||
Redeemable preferred stock | — | — | — | ||||||||||
Total fixed maturities | 4,137,146 | 4,253,274 | 4,253,274 | ||||||||||
Equity securities: | |||||||||||||
Common stocks: | |||||||||||||
Public utilities, Banks, trust and insurance companies | 13,323 | 13,712 | 13,712 | ||||||||||
Industrial, miscellaneous and all other Nonredeemable preferred stocks | 96,159 | 94,081 | 94,081 | ||||||||||
Total equity securities | 109,482 | 107,793 | 107,793 | ||||||||||
Short-term investments, at cost (approximates market value) | 63,916 | 63,916 | 63,916 | ||||||||||
Other invested assets (approximates market value) | 31,186 | 31,186 | 31,186 | ||||||||||
Total investments | $ | 4,341,730 | $ | 4,456,169 | $ | 4,456,169 | |||||||
-1 | Original cost of equity securities and, as to fixed maturities, original cost reduced by repayments and adjusted for amortization of premiums or accrual of discounts. |
Schedule_II_Condensed_Financia
Schedule II -Condensed Financial Information of Registrant | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule II - Condensed Financial Information of Registrant | AMTRUST FINANCIAL SERVICES | ||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
BALANCE SHEET — PARENT COMPANY ONLY | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(In Thousands) | |||||||||||||
Assets: | |||||||||||||
Cash | $ | 7,690 | $ | 1,495 | |||||||||
Invested assets | 1,353 | 67 | |||||||||||
Carrying value of subsidiaries, at equity | 2,826,090 | 1,949,997 | |||||||||||
Other assets | 549,780 | 358,881 | |||||||||||
Total Assets | 3,384,913 | 2,310,440 | |||||||||||
Liabilities: | |||||||||||||
Due to affiliates – net | 322,243 | 207,540 | |||||||||||
6.125% Notes due 2023 | 250,000 | 250,000 | |||||||||||
5.5% due 2021 Convertible senior notes | 56,745 | 164,218 | |||||||||||
2.75% due 2044 Convertible senior notes | 157,679 | — | |||||||||||
Junior subordinated debt | 123,714 | 123,714 | |||||||||||
Revolving credit facility borrowing | 120,000 | — | |||||||||||
Secured loan | 28,572 | — | |||||||||||
Other liabilities | 288,940 | 123,963 | |||||||||||
Total Liabilities | 1,347,893 | 869,435 | |||||||||||
Stockholders’ Equity | |||||||||||||
Common stock | 980 | 980 | |||||||||||
Preferred stock | 300,000 | 115,000 | |||||||||||
Paid-in and contributed capital | 1,022,769 | 1,033,084 | |||||||||||
Treasury shares | (297,586 | ) | (284,891 | ) | |||||||||
Accumulated other comprehensive income | 56,123 | (8,164 | ) | ||||||||||
Retained earnings | 954,734 | 584,996 | |||||||||||
Total Stockholders’ Equity | 2,037,020 | 1,441,005 | |||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,384,913 | $ | 2,310,440 | |||||||||
STATEMENT OF INCOME — PARENT COMPANY ONLY | |||||||||||||
Year Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands) | |||||||||||||
Income: | |||||||||||||
Investment income | $ | 183 | $ | 207 | $ | 227 | |||||||
Equity in undistributed net income of consolidated subsidiaries and partially-owned companies | 539,915 | 319,738 | 218,123 | ||||||||||
Acquisition gain on purchase | — | 23,183 | — | ||||||||||
Miscellaneous income | 641 | 6 | 12 | ||||||||||
Total Income | 540,739 | 343,134 | 218,362 | ||||||||||
Expenses: | |||||||||||||
Interest expense | 32,016 | 22,178 | 16,159 | ||||||||||
Loss on extinguishment of debt | 9,831 | — | — | ||||||||||
Federal tax (benefit) expense | (4,800 | ) | 10,087 | (1,099 | ) | ||||||||
Other expenses from operations | 57,094 | 30,276 | 18,442 | ||||||||||
Total Expenses | 94,141 | 62,541 | 33,502 | ||||||||||
Net Income | $ | 446,598 | $ | 280,593 | $ | 184,860 | |||||||
Schedule II | |||||||||||||
AMTRUST FINANCIAL SERVICES | |||||||||||||
CONDENSED FINANCIAL INFORMATION OF REGISTRANT | |||||||||||||
STATEMENT OF CASH FLOWS — PARENT COMPANY ONLY | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(In Thousands) | |||||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 446,598 | $ | 280,593 | $ | 184,860 | |||||||
Depreciation and amortization | 6,678 | 3,593 | 830 | ||||||||||
Stock option compensation | 19,114 | 11,186 | 7,172 | ||||||||||
Discount on note | 3,095 | 3,000 | (2,150 | ) | |||||||||
Dividend from equity investment | — | 12,203 | — | ||||||||||
Loss on extinguishment of debt | 9,831 | — | — | ||||||||||
Adjustments to reconcile net income to net cash changes in assets (increase) decrease: | |||||||||||||
Carrying value of equity interest in subsidiaries | (414,021 | ) | (449,176 | ) | (227,632 | ) | |||||||
Equity (earnings) losses and gain on investments in unconsolidated subsidiaries | (28,351 | ) | (11,566 | ) | (9,295 | ) | |||||||
Other assets | (128,866 | ) | (135,799 | ) | (80,993 | ) | |||||||
Changes in liabilities increase (decrease): | |||||||||||||
Due to (due from) affiliates | 114,703 | (14,636 | ) | 179,522 | |||||||||
Other liabilities | 146,715 | 64,774 | 3,397 | ||||||||||
Net cash provided by (used in) operating activities | 175,496 | (235,828 | ) | 55,711 | |||||||||
Cash flows from investing activities: | |||||||||||||
Capital expenditures | (31,097 | ) | (2,455 | ) | (107 | ) | |||||||
Investment purchased | (1,286 | ) | — | — | |||||||||
Investment in subsidiary | (285,783 | ) | (22,605 | ) | (1,455 | ) | |||||||
Acquisition of subsidiary companies, net of cash acquired | (123,887 | ) | (78,193 | ) | (42,694 | ) | |||||||
Net cash used in investing activities | (442,053 | ) | (103,253 | ) | (44,256 | ) | |||||||
Cash flows from financing activities: | |||||||||||||
Issuance of debt | 318,900 | 250,000 | 25,000 | ||||||||||
Payment of debt | (101,928 | ) | — | (7,500 | ) | ||||||||
Financing fees | (4,143 | ) | (2,740 | ) | (750 | ) | |||||||
Common share (repurchase) issuance, net | (50,379 | ) | 8,534 | 8,873 | |||||||||
Net proceeds from issuance of preferred stock | 178,641 | 111,130 | — | ||||||||||
Dividends paid on common stock | (55,601 | ) | (29,236 | ) | (30,201 | ) | |||||||
Dividends paid on preferred stock | (12,738 | ) | (3,989 | ) | — | ||||||||
Net cash (used in) provided by financing activities | 272,752 | 333,699 | (4,578 | ) | |||||||||
Net increase (decrease) in cash and cash equivalents | 6,195 | (5,382 | ) | 6,877 | |||||||||
Cash and cash equivalents, beginning of the year | 1,495 | 6,877 | — | ||||||||||
Cash and cash equivalents, end of period | $ | 7,690 | $ | 1,495 | $ | 6,877 | |||||||
Schedule_III_Supplementary_Ins
Schedule III - Supplementary Insurance Information | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Supplementary Insurance Information [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule III - Supplementary Insurance Information | AMTRUST FINANCIAL SERVICES, INC. | ||||||||||||||||||||||||||||||||||||
AND SUBSIDIARIES SUPPLEMENTARY INSURANCE INFORMATION | |||||||||||||||||||||||||||||||||||||
At December 31, 2014, 2013 and 2012 and for the years then ended: | |||||||||||||||||||||||||||||||||||||
Segment | Deferred | Reserves for | Reserves for | Premium | Net | Losses and | Amortization | Other | Net | ||||||||||||||||||||||||||||
Policy | Losses and | Unearned | Revenue | Investment | Loss Expenses | of Deferred Policy | Operating | Premiums | |||||||||||||||||||||||||||||
Acquisition | Loss Expenses, | Premiums | Income | Incurred, | Acquisition | Expenses | Written | ||||||||||||||||||||||||||||||
Costs | Future Policy | Benefits | Costs | ||||||||||||||||||||||||||||||||||
Benefits | |||||||||||||||||||||||||||||||||||||
(In Thousands) | |||||||||||||||||||||||||||||||||||||
2014 | |||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | 179,771 | $ | 2,854,379 | $ | 1,193,628 | $ | 1,606,805 | $ | 55,842 | 1,055,521 | $ | 276,876 | $ | 140,089 | $ | 1,882,383 | ||||||||||||||||||||
Specialty Risk and Extended Warranty | 389,763 | 1,669,293 | 1,832,560 | 1,232,238 | 50,544 | 817,780 | 152,141 | 101,653 | 1,333,747 | ||||||||||||||||||||||||||||
Specialty Program | 58,502 | 1,126,436 | 421,015 | 678,612 | 24,888 | 456,422 | 107,074 | 76,467 | 740,488 | ||||||||||||||||||||||||||||
Personal Lines Reinsurance | 347 | 14,097 | — | 8,909 | 327 | 12,896 | 2,619 | 4 | — | ||||||||||||||||||||||||||||
Total | $ | 628,383 | $ | 5,664,205 | $ | 3,447,203 | $ | 3,526,564 | $ | 131,601 | $ | 2,342,619 | $ | 538,710 | $ | 318,213 | $ | 3,956,618 | |||||||||||||||||||
2013 | |||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | 98,275 | $ | 1,982,977 | $ | 704,234 | $ | 833,812 | $ | 29,301 | 548,598 | $ | 143,036 | $ | 69,788 | $ | 935,313 | ||||||||||||||||||||
Specialty Risk and Extended Warranty | 310,230 | 1,537,887 | 1,599,167 | 811,837 | 39,139 | 545,516 | 114,662 | 36,526 | 944,081 | ||||||||||||||||||||||||||||
Specialty Program | 56,949 | 817,272 | 368,673 | 520,371 | 15,607 | 355,067 | 86,317 | 52,333 | 620,452 | ||||||||||||||||||||||||||||
Personal Lines Reinsurance | 2,950 | 30,098 | 8,908 | 99,970 | 772 | 68,180 | 23,273 | 7,227 | 65,827 | ||||||||||||||||||||||||||||
Total | $ | 468,404 | $ | 4,368,234 | $ | 2,680,982 | $ | 2,265,990 | $ | 84,819 | $ | 1,517,361 | $ | 367,288 | $ | 165,874 | $ | 2,565,673 | |||||||||||||||||||
2012 | |||||||||||||||||||||||||||||||||||||
Small Commercial Business | $ | 58,690 | $ | 1,266,261 | $ | 413,707 | $ | 416,565 | $ | 24,049 | $ | 270,843 | $ | 60,709 | $ | 49,866 | $ | 474,381 | |||||||||||||||||||
Specialty Risk and Extended Warranty | 234,490 | 605,366 | 1,063,999 | 541,573 | 27,349 | 341,196 | 94,945 | 17,546 | 624,555 | ||||||||||||||||||||||||||||
Specialty Program | 42,468 | 524,928 | 252,835 | 348,568 | 14,457 | 238,302 | 63,775 | 34,640 | 430,960 | ||||||||||||||||||||||||||||
Personal Lines Reinsurance | 13,478 | 29,845 | 43,052 | 112,146 | 2,312 | 72,334 | 23,458 | 10,746 | 118,141 | ||||||||||||||||||||||||||||
Total | $ | 349,126 | $ | 2,426,400 | $ | 1,773,593 | $ | 1,418,852 | $ | 68,167 | $ | 922,675 | $ | 242,887 | $ | 112,798 | $ | 1,648,037 | |||||||||||||||||||
Schedule_IV_Reinsurance
Schedule IV - Reinsurance | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |||||||||||||||||||
Schedule IV - Reinsurance | AMTRUST FINANCIAL SERVICES, INC. | ||||||||||||||||||
AND SUBSIDIARIES REINSURANCE | |||||||||||||||||||
For the year ended December 31, 2014, 2013 and 2012: | |||||||||||||||||||
Gross | Ceded to | Amount | Net Amount | Percent of | |||||||||||||||
Amount | Other | from Other | Amount | ||||||||||||||||
Companies | Companies | Assumed to | |||||||||||||||||
Net | |||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||
2014 | |||||||||||||||||||
Premiums: | |||||||||||||||||||
General Insurance | $ | 5,422,484 | $ | 2,131,347 | $ | 665,481 | $ | 3,956,618 | 16.8 | % | |||||||||
2013 | |||||||||||||||||||
Premiums: | |||||||||||||||||||
General Insurance | $ | 3,869,893 | $ | 1,551,238 | $ | 247,018 | $ | 2,565,673 | 9.6 | % | |||||||||
2012 | |||||||||||||||||||
Premiums: | |||||||||||||||||||
General Insurance | $ | 2,494,846 | $ | 1,101,289 | $ | 254,480 | $ | 1,648,037 | 15.4 | % | |||||||||
Schedule_V_Consolidated_Supple
Schedule V - Consolidated Supplementary Property and Casulty Insurance Information | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||||||||||||
Schedule V - Consolidated Supplementary Property and Casualty Insurance Information | AMTRUST FINANCIAL SERVICES, INC. | ||||||||||||
CONSOLIDATED SUPPLEMENTARY PROPERTY | |||||||||||||
AND CASUALTY INSURANCE INFORMATION | |||||||||||||
(In Thousands) | |||||||||||||
Losses and Loss Adjustment | Paid Losses and | ||||||||||||
Expenses Incurred Related to | Loss Adjustment | ||||||||||||
Year Ended December 31, | Current Year | Prior Years | Expenses | ||||||||||
2014 | $ | 2,324,062 | $ | 18,557 | $ | 1,441,219 | |||||||
2013 | $ | 1,486,418 | $ | 30,943 | $ | 953,160 | |||||||
2012 | $ | 909,818 | $ | 12,857 | $ | 691,717 | |||||||
Significant_Accounting_Policie
Significant Accounting Policies (Policies) | 12 Months Ended | ||
Dec. 31, 2014 | |||
Accounting Policies [Abstract] | |||
Basis of Reporting | Basis of Reporting — The consolidated financial statements of the Company have been prepared in conformity with accounting principles generally accepted in the United States of America. The consolidated financial statements include the accounts of the Company and its domestic and foreign subsidiaries. The Company uses the equity method of accounting for its investment in National General Holding Corp. (“NGHC”) in which it owns a 13.2% ownership interest. All significant intercompany transactions and accounts have been eliminated in the consolidated financial statements. | ||
Premiums | Premiums — Insurance premiums, except for certain specialty risk and extended warranty programs, are recognized as earned on the straight-line basis over the contract period. Insurance premiums on specialty risk and extended warranty programs are earned based on an estimated program coverage period. These estimates are based on the expected distribution of coverage periods by contract at inception, and because a single contract may contain multiple coverage period options, these estimates are revised based on the actual coverage period selected by the insured. Unearned premiums represent the portion of premiums written which is applicable to the unexpired term of the contract or policy in force. Premium adjustments on contracts and audit premiums are based on estimates made over the contract period. Premiums earned but not yet billed to insureds are estimated and accrued, net of related costs. These estimates are subject to the effects of trends in payroll audit adjustments. Although considerable variability is inherent in such estimates, management believes that the accrual for earned but unbilled premiums is reasonable. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in current operations. The Company historically has used a percentage of premium for establishing its allowance for doubtful accounts. The Company reviews its bad debt write-offs at least annually and adjusts its premium percentage as required. Allowance for doubtful accounts were approximately $45,024 and $32,132 at December 31, 2014 and 2013, respectively. | ||
Loss and LAE | Loss and Loss Adjustment Expenses — Loss and loss adjustment expenses (“LAE”) represent the estimated ultimate net costs of all reported and unreported losses incurred through December 31, 2014. The reserves for unpaid losses and LAE are estimated using individual case-basis valuations and statistical analysis and are not discounted. Although considerable variability is inherent in the estimates of reserves for losses and LAE, management believes that the reserves for losses and LAE are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known. Such adjustments are included in current operations. | ||
Fair Value of Financial Instruments | Fair Value of Financial Instruments — The Company’s estimates of fair value for financial assets and financial liabilities are based on the framework established in ASC 820 Fair Value Measurements and Disclosures. The framework is based on the inputs used in valuation and gives the highest priority to quoted prices in active markets and requires that observable inputs be used in the valuations when available. The disclosure of fair value estimates in the ASC 820 hierarchy is based on whether the significant inputs into the valuation are observable. In determining the level of the hierarchy in which the estimate is disclosed, the highest priority is given to unadjusted quoted prices in active markets and the lowest priority to unobservable inputs that reflect the Company’s significant market assumptions. Additionally, valuation of fixed maturity investments is more subjective when markets are less liquid due to lack of market based inputs, which may increase the potential that the estimated fair value of an investment is not reflective of the price at which an actual transaction could occur. Fair values of other financial instruments approximate their carrying values. | ||
For investments that have quoted market prices in active markets, the Company uses the quoted market prices as fair value and includes these prices in the amounts disclosed in the Level 1 hierarchy. The Company receives the quoted market prices from nationally recognized third-party pricing services (“pricing service”). When quoted market prices are unavailable, the Company utilizes a pricing service to determine an estimate of fair value. This pricing method is used, primarily, for fixed maturities. The fair value estimates provided by the pricing service are included in the Level 2 hierarchy. If the Company determines that the fair value estimate provided by the pricing service does not represent fair value or if quoted market prices and an estimate from pricing services are unavailable, the Company produces an estimate of fair value based on dealer quotations of the bid price for recent activity in positions with the same or similar characteristics to that being valued or through consensus pricing of a pricing service. Depending on the level of observable inputs, the Company will then determine if the estimate is Level 2 or Level 3 hierarchy. | |||
Fixed Maturities | Fixed Maturities. The Company utilizes a pricing service to estimate fair value measurements for all of its fixed maturities. The pricing service utilizes market quotations for fixed maturity securities that have quoted market prices in active markets. Since fixed maturities other than U.S. treasury securities generally do not trade on a daily basis, the pricing service prepares estimates of fair value measurements using relevant market data, benchmark curves, sector groupings and matrix pricing. The pricing service utilized by the Company has indicated it will produce an estimate of fair value only if there is verifiable information to produce a valuation. As the fair value estimates of most fixed maturity investments are based on observable market information rather than market quotes, the estimates of fair value other than U.S. Treasury securities are included in Level 2 of the hierarchy. U.S. Treasury securities are included in the amount disclosed in Level 1 as the estimates are based on unadjusted prices. The Company’s Level 2 investments include obligations of U.S. government agencies, municipal bonds, corporate debt securities and other mortgage backed securities. | ||
Equity Securities. The Company utilizes a pricing service to estimate the fair value of the majority of its available-for-sale and trading equity securities. The pricing service utilizes market quotations for equity securities that have quoted market prices in active markets and their respective quoted prices are provided as fair value. The Company classifies the values of these equity securities as Level 1. The pricing service also provides fair value estimates for certain equity securities whose fair value is based on observable market information rather than market quotes. The Company classifies the value of these equity securities as Level 2. The Company also holds certain equity securities that are issued by privately-held entities or direct equity investments that do not have an active market. The Company estimates the fair value of these securities primarily based on inputs such as third party broker quotes, issuers' book value, market multiples, and other inputs. These equity securities are classified as Level 3 due to significant unobservable inputs used in the valuation. | |||
Other Investments. Other investments consisted primarily of investments in limited partnerships, an interest in syndicated term loan, and annuities. Other investments accounted for approximately 0.6% of the Company's investment portfolio as of December 31, 2014. The Company estimates the fair value of other investments based on significant unobservable inputs in the valuation process. As a result, the Company classified the fair value estimates as Level 3 in the financial hierarchy. The Company has determined that its investments in Level 3 securities are not material to its financial position or results of operations. | |||
Investments — The Company accounts for its investments in accordance with the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 320 Investments — Debt and Equity Securities, which requires that fixed-maturity and equity securities that have readily determined fair values be segregated into categories based upon the Company’s intention for those securities. In accordance with ASC 320, the Company has classified its fixed-maturities and certain equity securities as available-for-sale. The Company may sell its available-for-sale securities in response to changes in interest rates, risk/reward characteristics, liquidity needs or other factors. Available for sale fixed-maturity securities and equity securities are reported at their estimated fair values based on quoted market prices or a recognized pricing service, with unrealized gains and losses, net of tax effects, reported as a separate component of comprehensive income in stockholders’ equity. Additionally, the Company classified certain equity securities as trading securities. Unrealized gains and losses on trading securities are reported within realized gains and losses. Realized gains and losses are determined on the specific identification method. | |||
Quarterly, the Company’s Investment Committee (“Committee”) evaluates each security that has an unrealized loss as of the end of the subject reporting period for other-than-temporary-impairment (“OTTI”). The Company generally considers an investment to be impaired when it has been in a significant unrealized loss position (in excess of 35% of cost if the issuer has a market capitalization of under $1 billion and in excess of 25% of cost if the issuer has a market capitalization of $1 billion or more) for over 24 months. In addition, the Committee uses a set of quantitative and qualitative criteria to review the Company's investment portfolio to evaluate the necessity of recording impairment losses for other-than-temporary declines in the fair value of our investments. The criteria the Committee primarily considers include: | |||
• | the current fair value compared to amortized cost; | ||
• | the length of time the security’s fair value has been below its amortized cost; | ||
• | specific credit issues related to the issuer such as changes in credit rating, reduction or elimination of dividends or non-payment of scheduled interest payments; | ||
• | whether management intends to sell the security and, if not, whether it is not more than likely than not that the Company will be required to sell the security before recovery of its amortized cost basis; | ||
• | the financial condition and near-term prospects of the issuer of the security, including any specific events that may affect its operations or earnings; | ||
• | the occurrence of a discrete credit event resulting in the issuer defaulting on material outstanding obligations or the issuer seeking protection under bankruptcy laws; and | ||
• | other items, including company management, media exposure, sponsors, marketing and advertising agreements, debt restructuring, regulatory changes, acquisitions and dispositions, pending litigation, distribution agreements and general industry trends. | ||
Impairment of investment securities results in a charge to operations when a market decline below cost is deemed to be other-than-temporary. The Company writes down investments immediately that it considers to be impaired based on the above criteria collectively. | |||
Based on guidance in FASB ASC 320-10-65, in the event of the decline in fair value of a debt security, a holder of that security that does not intend to sell the debt security and for whom it is not more than likely than not that such holder will be required to sell the debt security before recovery of its amortized cost basis, is required to separate the decline in fair value into (a) the amount representing the credit loss and (b) the amount related to other factors. The amount of total decline in fair value related to the credit loss shall be recognized in earnings as an OTTI with the amount related to other factors recognized in accumulated other comprehensive loss net loss, net of tax. OTTI credit losses result in a permanent reduction of the cost basis of the underlying investment. The determination of OTTI is a subjective process, and different judgments and assumptions could affect the timing of the loss realization. | |||
In 2014, the Company also classified certain of its equity securities as trading securities. Equity securities classified as trading securities are generally held for resale in anticipation of short-term market movement. Trading securities are stated at estimated fair market value. Gains and losses, both realized and unrealized, are included in the net realized gain or loss on investment on the Consolidated Statements of Income. | |||
The Company has the following types of investments: | |||
(a) | Short-term investments — Short term investments are carried at cost, which approximates fair value, and include investments with maturities between 91 days and less than 1 year at date of acquisition. As of December 31, 2014 and 2013, short term investments consisted primarily of money market investments. | ||
(b) | Fixed maturities and equity securities, available-for-sale — Fixed maturities and equity securities (common stocks, mutual funds and non-redeemable preferred stock) are classified as available-for-sale and carried at fair value. Unrealized gains or losses on available-for-sale securities are reported as a component of accumulated other comprehensive income. | ||
(c) | Equity securities, trading — Equity securities classified as trading are carried at estimated fair market value. Gains and losses, both realized and unrealized, are reported in the net realized gain or loss on investment. | ||
(d) | Mortgage and asset backed securities — For mortgage and asset backed securities, the Company recognizes income using the retrospective adjustment method based on prepayments and the estimated economic life of the securities. The effective yield reflects actual payments to date plus anticipated future payments. | ||
(e) | Limited partnerships — The Company uses the equity method of accounting for investments in limited partnerships in which its ownership interest of the limited partnership enables the Company to influence the operating or financial decisions of the investee company, but the Company’s interest in the limited partnership does not require consolidation. The Company’s proportionate share of equity in net income of these unconsolidated affiliates is reported in net investment income. | ||
(f) | Derivatives and hedging activities — The Company from time to time invests in a limited amount of derivatives and other financial instruments as part of its investment portfolio. Derivatives are financial arrangements among two or more parties with returns linked to an underlying equity, debt, commodity, asset, liability, foreign exchange rate or other index. Unless subject to a scope exclusion, the Company carries all derivatives on the consolidated balance sheet at fair value. For derivatives that do not qualify for hedge accounting, the changes in fair value of the derivative are presented as a component of operating income. The Company primarily utilizes interest rate swaps, which are valued in terms of the contract between the Company and the issuer of the swaps, are based on the difference between the stated floating rate of the underlying indebtedness, and a predetermined fixed rate for such indebtedness with the result that the indebtedness carries a net fixed interest rate. | ||
(g) | Securities sold under agreements to repurchase, at contract value — The Company from time to time invests in securities sold under agreements to repurchase, which are accounted for as collateralized borrowing transactions and are recorded at their contracted repurchase amounts, plus accrued interest. The Company minimizes the credit risk that counterparties to transactions might be unable to fulfill their contractual obligations by monitoring exposure and collateral value and generally requiring additional collateral to be deposited with the Company when necessary. | ||
Net investment income consists primarily of interest and dividends less expenses. Interest on fixed maturities, adjusted for any amortization of premium or discount, is recorded as income when earned. Investment expenses are accrued as incurred. Realized investment gains or losses are computed using the specific costs of securities sold, and, if applicable, include write-downs on investments having other-than-temporary declines in value. | |||
Derivatives | Derivatives. The Company estimates fair value using information provided by a pricing service for interest rate swaps and classifies derivatives as Level 2 hierarchy. | ||
Investment in Life Settlement | Investment in Life Settlements — When the Company becomes the owner of a life insurance policy either by direct purchase or following a default on a premium finance loan, the life insurance premium for such policy is accounted for as an investment in life settlements. Investments in life settlements are accounted for in accordance with ASC 325-30, Investments in Insurance Contracts, which states that an investor shall elect to account for its investments in life settlement contracts using either the investment method or the fair value method. The election is made on an instrument-by-instrument basis and is irrevocable. The Company has elected to account for these investments using the fair value method. Fair value of the investment in policies is determined using unobservable Level 3 inputs and is calculated by performing a net present value calculation of the face amount of the life policies less premiums for the total portfolio. The unobservable Level 3 inputs use new or updated information that affects the Company's assumptions about remaining life expectancy, credit worthiness of the policy issuer, funds needed to maintain the asset until maturity, and discount rates. | ||
Life Settlement Profit Commission — Investments in life settlements are accounted for in accordance with ASC 325-30, Investments in Insurance Contracts, and the Company has elected to account for its investment in life settlements using the fair value method. The Company retains a third party service provider to perform certain administration functions to effectively manage the life settlement contracts held by Tiger Capital, LLC and AMT Capital Holdings II S.A. and a portion of their fee is contingent on the overall profitability of the life settlement contracts. The Company accrues the related profit commission on life settlements at fair value, in relation to life settlements purchased prior to December 31, 2010. This profit commission is calculated based on the discounted anticipated cash flows and the provisions of the underlying contract. In addition, the Company accrues a best estimate in relation to profit commission due on certain life settlement contracts acquired subsequent to December 31, 2010 as no contractual relationship currently exists. | |||
Warranty Fee Revenue | Warranty Fee Revenue — The Company promotes and markets extended service plans (“ESP”) to consumers through retailers and certain other marketing organizations usually with terms of coverage ranging from one to three years, commencing at the expiration of the manufacturers’ warranty, if applicable. The Company generally insures the obligations under ESPs through contractual liability insurance issued by one of its insurance company subsidiaries. Under the terms of service agreements with various retailers, the Company provides for marketing and administrative services related to ESP. These agreements are generally for one-year terms and can be canceled by either party with thirty days advance notice. The Company recognizes revenue related to promotion, marketing and administration services at the time of the sale of ESP. However, the Company defers a portion of service revenue based upon an estimate of administrative services to be provided in future periods. | ||
Deferred Policy Acquisition Costs | Deferred Policy Acquisition Costs — The Company defers commission expenses, premium taxes and assessments as well as underwriting and safety costs that vary with and are primarily related to the successful acquisition of insurance policies. These acquisition costs are capitalized and charged to expense ratably as premiums are earned. The Company may realize deferred policy acquisition costs only if the ratio of loss and loss adjustment expense reserves (calculated on a discounted basis) to the premiums to be earned is less than 100%, as it historically has been. If, hypothetically, that ratio were to be above 100%, the Company could not continue to record deferred policy acquisition costs as an asset and may be required to establish a liability for a premium deficiency reserve. The Company considers anticipated investment income in determining whether a premium deficiency relating to short duration contracts exists. The change in net deferred acquisition costs was $159,979, $97,561 and $68,135 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Reinsurance | Reinsurance — Reinsurance premiums, losses and LAE ceded to other companies are accounted for on a basis consistent with those used in accounting for the original policies issued and pursuant to the terms of the reinsurance contracts. The Company records premiums earned and losses and LAE incurred and ceded to other companies as reductions of premium revenue and losses and LAE. The Company accounts for commissions allowed by reinsurers on business ceded as ceding commission, which is a reduction of acquisition of costs and other underwriting expenses. The Company earns commissions on reinsurance premiums ceded in a manner consistent with the recognition of the earned premium on the underlying insurance policies, on a pro rata basis over the terms of the policies reinsured. Reinsurance recoverables relate to the portion of reserves and paid losses and LAE that are ceded to other companies. The Company remains contingently liable for all loss payments in the event of failure to collect from the reinsurer. | ||
Ceding Commissions on Reinsurance Transactions — Ceding commissions on reinsurance transactions are commissions the Company receives from ceding gross written premiums to third party reinsurers. In connection with the Maiden Quota Share, which is the Company's primary source of ceding commissions, the amount the Company receives is a blended rate based on a contractual formula contained in the individual reinsurance agreements, and the rate may not correlate specifically to the cost structure of the individual segments. The ceding commissions the Company receives cover a portion of its capitalized direct acquisition costs and a portion of other underwriting expenses. Ceding commissions received from reinsurance transactions that represent recovery of capitalized direct acquisition costs are recorded as a reduction of capitalized unamortized deferred acquisition costs and the net amount is charged to expense in proportion to net premium revenue recognized. Ceding commissions received from reinsurance transactions that represent the recovery of other underwriting expenses are recognized in the income statement over the insurance contract period in proportion to the insurance protection provided and classified as a reduction of acquisition costs and other underwriting expenses. Ceding commissions received, but not yet earned, that represent the recovery of other underwriting expenses are classified as a component of accrued expenses and other current liabilities. The Company allocates earned ceding commissions to its segments based on each segment’s proportionate share of total acquisition costs and other underwriting expenses recognized during the period. | |||
Assessments | Assessments — Insurance related assessments are accrued in the period in which they have been incurred. A typical obligating event would be the issuance of an insurance policy or the occurrence of a claim. The Company is subject to a variety of assessments, such as assessments by state guaranty funds and workers’ compensation second injury funds. State guaranty funds assessments are used by state insurance regulators to cover losses of policyholders of insolvent insurance companies and for the operating expenses of such agencies. The Company uses estimated assessment rates in determining the appropriate assessment expense and accrual. The Company uses estimates derived from state regulators and/or National Association of Insurance Commissioners (“NAIC”) Tax and Assessments Guidelines. | ||
Property and Equipment | Property and Equipment — Property and equipment are recorded at cost. Maintenance and repairs are charged to operations as incurred. Depreciation is computed on a straight-line basis over the estimated useful lives of the assets, as follows: | ||
Building | 40 years | ||
Equipment | 5 to 7 years | ||
Computer equipment and software | 3 to 20 years (primarily 3 years) | ||
Leasehold improvements | Lesser of lease term or 15 years | ||
The Company accounts for its internal use software under ASC 350 Intangibles — Goodwill and Other. Accordingly, the Company capitalizes costs of computer software developed or obtained for internal use that is specifically identifiable, has determinable lives and relates to future use. | |||
Business Combinations | Business Combinations — The Company accounts for business combinations under the acquisition method of accounting, which requires the Company to record assets acquired, liabilities assumed and any non-controlling interest in the acquiree at their respective fair values as of the acquisition date in the Company's consolidated financial statements. The Company accounts for the insurance and reinsurance contracts under the acquisition method as new contracts, which requires the Company to record assets and liabilities at fair value. The Company adjusts the fair value loss and LAE reserves by recording the acquired loss reserves based on the Company’s existing accounting policies and then discounting them based on expected reserve payout patterns using a current risk-free rate of interest. This risk free interest rate is then adjusted based on different cash flow scenarios that use different payout and ultimate reserve assumptions deemed to be reasonably possible based upon the inherent uncertainties present in determining the amount and timing of payment of such reserves. The difference between the acquired loss and LAE reserves and the Company’s best estimate of the fair value of such reserves at the acquisition date is recorded either an an intangible asset or another liability, as applicable, and amortized proportionately to the decrease in the acquired loss and LAE reserves over the payout period for the acquired loss and LAE reserves. The Company records contingent consideration at fair value based on the terms of the purchase agreement with subsequent changes in fair value recorded through earnings. The determination of fair value may require management to make significant estimates and assumptions. The purchase price is the fair value of the total consideration conveyed to the seller and the Company records the excess of the purchase price over the fair value of the acquired net assets, where applicable, as goodwill. The Company assigns fair values to intangible assets based on valuation techniques including the income and market approaches. The Company expenses costs associated with the acquisition of a business in the period incurred. The Company includes the results of operations of an acquired business in its consolidated financial statements from the date of the acquisition. | ||
Goodwill and Intangible Assets | Goodwill and Intangible Assets — The Company accounts for goodwill and intangible assets in accordance with ASC 350 Intangibles — Goodwill and Other. Upon the completion of an acquisition, the Company completes purchase price accounting in accordance with ASC 805, Business Combinations, which requires an acquirer to assign values to the acquired assets and liabilities based on their fair value. In the event that a purchase price paid is in excess of the net assets acquired, any unidentified excess is deemed to be goodwill. Goodwill is not amortized. Additionally as a result of an acquisition, the Company may obtain identifiable intangible assets. Indefinite lived intangible assets are not amortized. Intangible assets with a finite life are amortized over the estimated useful life of the asset. Intangible assets with an indefinite useful life are not amortized. Goodwill and intangible assets with an indefinite useful life are tested for impairment on an annual basis or more frequently if changes in circumstances indicate that the carrying amount may not be recoverable. If the goodwill or intangible asset is impaired, it is written down to its realizable value with a corresponding expense reflected in the consolidated statement of operations. The Company tests for impairment of goodwill at the reporting unit level. The Company generally combines reporting units, which are a component of an operating segment when they have similar economic characteristics, nature of services, types of customer, distribution methods and regulatory environment | ||
Income Taxes | Income Taxes — The Company files a consolidated United States ("US") income tax return for its eligible domestic subsidiaries. The Company's non-domestic subsidiaries file income tax returns in their respective local jurisdictions. As part of the US consolidated income tax return filing, the Company is party to federal income tax allocation agreements amongst the includible entities. Under the tax allocation agreements, the Company pays to or receives from its subsidiaries the amount, if any, by which the group’s federal income tax liability was affected by virtue of inclusion of the subsidiary in the consolidated federal return. | ||
Deferred income taxes reflect the impact of “temporary differences” between the amount of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws and regulations. The deferred tax asset primarily consists of book versus tax differences for premiums earned, loss and loss adjustment expense reserve discounting, policy acquisition costs, earned but unbilled premiums, and unrealized holding gains and losses on marketable equity securities. Changes in deferred income tax assets and liabilities that are associated with components of other comprehensive income, primarily unrealized investment gains and losses, are recorded directly to other comprehensive income. Otherwise, changes in deferred income tax assets and liabilities are included as a component of income tax expense. | |||
In assessing the recoverability of deferred tax assets, management considers whether it is more likely than not that the Company will generate future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, tax planning strategies and projected future taxable income in making this assessment. If necessary, the Company establishes a valuation allowance to reduce the deferred tax assets to the amounts that are more likely than not to be realized. | |||
The Company recognizes tax benefits only for tax positions that are more likely than not to be sustained upon examination by taxing authorities. The Company’s policy is to prospectively classify accrued interest and penalties related to any unrecognized tax benefits in its income tax provision. The Company files its tax returns as prescribed by the tax laws of the jurisdictions in which it operates. Primarily tax years 2009 through 2013 are still subject to examination. The Company does not anticipate any significant changes to its total unrecognized tax benefits within the next 12 months. | |||
Foreign Currency | Foreign Currency — The Company assigns functional currencies to its foreign operations, which are generally the currencies of the local operating environment. Foreign currency amounts are remeasured to the functional currency and the resulting foreign exchange gains and losses are reflected in earnings. Functional currency amounts from the Company’s foreign operations are then translated into U.S. dollars. The change in unrealized foreign currency translation gain or loss during the year, net of tax, is a component of accumulated other changes in equity from nonowner sources. The foreign currency remeasurement and translation are calculated using current exchange rates for the items reported on the balance sheets and average exchange rates for items recorded in earnings. | ||
Stock Compensation Expense | Stock Compensation Expense — The Company follows ASC 720 Compensation — Stock Compensation and recognizes compensation expense for its share-based payments based on the fair value of the awards. Share-based payments include restricted stock, restricted stock units, performance share units and stock option grants under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan. ASC 720 requires share-based compensation expense recognized to be based on estimated grant date fair value. | ||
Earnings Per Share | Earnings Per Share — The Company accounts for earnings per share under the two-class method, as described in ASC 260, Earnings Per Share. Under the two-class method, earnings for the period are allocated between common stockholders and other stockholders based on their respective rights to receive dividends. Restricted stock awards granted to employees under the Company’s 2005 Equity Incentive Plan and 2010 Omnibus Incentive Plan are considered participating securities as they receive dividends on this stock. Additionally, the Company follows the treasury stock method related to its contingently convertible debt, as the Company has the ability to settle the conversion premium in either cash or stock. The Company had contingently convertible shares that were dilutive for the Company's earnings per share calculations in 2014 and 2013 and anti-dilutive in 2012. | ||
Treasury Stock | Treasury Stock — The Company accounts for the treasury stock at the repurchase price as a reduction to stockholders’ equity. | ||
Concentration and Credit Risk | Concentration and Credit Risk — Financial instruments that potentially subject the Company to concentration of credit risk are primarily cash and cash equivalents, investments and premium receivable. Investments are diversified through the types of investments, industry sectors and geographic regions. The Company limits the amount of credit exposure with any one financial institution and believes that no significant concentration of credit risk exists with respect to cash and investments. At December 31, 2014 and 2013, the outstanding premium receivable balance is generally diversified due to the number of entities composing the Company’s customer base. To reduce credit risk, the Company performs ongoing evaluations of its customers’ financial condition. The Company also has receivables from its reinsurers. Reinsurance contracts do not relieve the Company from its obligations to policyholders. Failure of reinsurers to honor their obligations could result in losses to the Company. The Company periodically evaluates the financial condition of its reinsurers to minimize its exposure to significant losses from reinsurer insolvencies. It is the policy of management to review all outstanding receivables at period end as well as the bad debt write-offs experienced in the past and establish an allowance for doubtful accounts, if deemed necessary. | ||
Non-Controlling Interest | Non-controlling Interest — The ownership interest in consolidated subsidiaries of non-controlling interests is reflected as non-controlling interest. The Company’s consolidation principles would also consolidate any entity in which the Company would be deemed a primary beneficiary. Non-controlling interest expense represents such non-controlling interests’ in the earnings of that entity. All significant transactions and account balances between the Company and its subsidiaries were eliminated during consolidation. | ||
Use of Estimates | Use of Estimates — The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates and assumptions, which include the reserves for losses and loss adjustment expenses, are subject to considerable estimation error due to the inherent uncertainty in projecting ultimate claim amounts that will be reported and settled over a period of many years. In addition, estimates and assumptions associated with the recognition and amortization of deferred policy acquisition costs, the determination of fair value of invested assets and related impairments, and the determination of goodwill and intangible impairments require considerable judgment by management. On an on-going basis, management reevaluates its assumptions and the methods of calculating its estimates. Actual results may differ from the estimates and assumptions used in preparing the consolidated financial statements. | ||
Reclassification | Reclassifications — Certain accounts in the prior years’ consolidated financial statements have been reclassified for comparative purposes to conform to the current year’s presentation. | ||
Recent Accounting Literature | Recent Accounting Literature | ||
In November 2014, the FASB issued Accounting Standards Update ("ASU") 2014-16, Derivative and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity, which requires an entity (an issuer or an investor) of hybrid financial instruments to determine the nature of the host contract by considering the economic characteristics and risks of the entire hybrid financial instrument, including the embedded derivative feature that is being evaluated for separate accounting from the host contract. The updated guidance is effective for the period ending March 15, 2016. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity. | |||
In June 2014, the FASB issued ASU 2014-11, Transfers and Serving (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures, which amends accounting for repurchase-to-maturity transactions and associated repurchase financing to secured borrowing. The revised guidance also requires expanded disclosure for certain transactions comprising (1) a transfer of a financial asset accounted for as a sale and (2) an agreement with the same transferee entered into in contemplation of the initial transfer that results in the transferor retaining substantially all of the exposure to the economic return on the transferred financial asset throughout the term of the transaction, as well as expands disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The updated guidance is effective for the period ending March 31, 2015. The adoption of this guidance is not expected to have a material effect on the Company's results of operations, financial position or liquidity. | |||
In June 2014, the FASB issued ASU 2014-12, Compensation-Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, to clarify how entities should treat performance targets that can be met after the requisite service period of a share-based payment award. The ASU states that the share-based payment award should be treated as a performance condition that affects vesting and, therefore, an entity would not record compensation expense (measured as of the grant date without taking into account the effect of the performance target) related to an award for which transfer to the employee is contingent on the entity’s satisfaction of a performance target until it becomes probable that the performance target will be met. No new disclosures are required under this ASU. ASU 2014-12 is effective beginning after December 15, 2015. Early adoption is permitted. In addition, all entities will have the option of applying the guidance either prospectively (i.e., only to awards granted or modified on or after the effective date of the issue) or retrospectively. Retrospective application would only apply to awards with performance targets outstanding at or after the beginning of the first annual period presented (i.e., the earliest presented comparative period). The adoption of this guidance is not expected to have an impact on the Company's results of operations, financial condition or liquidity. | |||
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify the principles for recognizing revenue. While insurance contracts are not within the scope of this updated guidance, the Company’s service and fee income will be subject to this updated guidance. The updated guidance requires an entity to recognize revenue as performance obligations are met, in order to reflect the transfer of promised goods or services to customers in an amount that reflects the consideration the entity is entitled to receive for those goods or services. The following steps are applied in the updated guidance: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. The updated guidance is effective for the quarter ending March 31, 2017. The Company is currently evaluating the impact this guidance will have on the Company's results of operations, financial position or liquidity. | |||
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statement (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity, which provides revised guidance to reduce diversity in practice for reporting discontinued operations. Under the previous guidance, any component of an entity that was a reportable segment, an operating segment, a reporting unit, a subsidiary, or an asset group was eligible for discontinued operations presentation. The revised guidance only allows disposals of components of an entity that represent a strategic shift (e.g., disposal of a major geographical area, a major line of business, a major equity method investment, or other major parts of an entity) and that have a major effect on a reporting entity’s operations and financial results to be reported as discontinued operations. The revised guidance also requires expanded disclosure in the financial statements for discontinued operations as well as for disposals of significant components of an entity that do not qualify for discontinued operations presentation. The updated guidance is effective for the period ending March 31, 2015. The adoption of this guidance is not expected to have a material effect on the Company’s results of operations, financial position or liquidity. | |||
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which provides guidance on the presentation of an unrecognized tax benefit when a net operating loss (“NOL”) carry-forward, a similar tax loss, or a tax credit carry-forward exists. Under the ASU, an entity must present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a NOL carry-forward, similar tax loss, or a tax credit carry-forward. There are two exceptions to this form of presentation as follows: | |||
• | To the extent a NOL carry-forward, a similar tax loss, or a tax credit carry-forward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position; and | ||
• | The entity does not intend to use the deferred tax asset for this purpose. | ||
If either of these conditions exists, an entity should present an unrecognized benefit in the financial statements as a liability and should net the unrecognizable tax benefit with a deferred tax asset. The amendments in this update were effective for fiscal years, and interim periods within those years, beginning after December 31, 2013. The adoption of this guidance did not have a material impact on the Company's results of operations, financial condition or liquidity. | |||
In March 2013, the FASB issued ASU 2013-05, Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, with the objective of resolving the diversity about whether ASC 810-10, Consolidation - Overall, or ASC 830-30, Foreign Currency Matters - Translation of Financial Statements, applies to the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in-substance real estate or conveyance of oil and gas mineral rights) within a foreign entity. | |||
Under this guidance, when a reporting entity that is also the parent entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) within a foreign entity, the parent is required to apply the guidance in ASC 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. Additionally, for an equity method investment that is a foreign entity, the partial sale guidance in ASC 830-30-40 continues to be applicable. As such, a pro rata portion of the cumulative translation adjustment should be released into net income upon a partial sale of such an equity method investment. However, this treatment does not apply to an equity method investment that is not a foreign entity. In those instances, the cumulative translation adjustment is released into net income only if the partial sale represents a complete or substantially complete liquidation of the foreign entity that contains the equity method investment. Furthermore, the amendments in this ASU clarify that the sale of an investment in a foreign entity includes both: (1) events that result in the loss of a controlling financial interest in a foreign entity (that is, irrespective of any retained investment); and (2) events that result in an acquirer obtaining control of an acquiree in which it held an equity interest immediately before the acquisition date (sometimes also referred to as a step acquisition). Accordingly, the cumulative translation adjustment should be released into net income upon the occurrence of those events. The amendments in this ASU are effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013. The update was adopted effective January 1, 2014. The adoption of this guidance did not have an impact on the Company's results of operations, financial condition or liquidity. |
Investments_Tables
Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||
Amortized Cost, Estimated Market Value and Gross Unrealized Appreciation and Depreciation of Available-for-sale Securities | The amortized cost, estimated fair value and gross unrealized appreciation and depreciation of fixed and equity securities are presented in the tables below: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | Original or | Gross | Gross | Fair | |||||||||||||||||||||||||||
As of December 31, 2014 | Amortized | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||||||||
Preferred stock | $ | 3,349 | $ | 158 | $ | (1 | ) | $ | 3,506 | ||||||||||||||||||||||
Common stock | 80,726 | 4,673 | (7,861 | ) | 77,538 | ||||||||||||||||||||||||||
U.S. treasury securities | 42,416 | 1,558 | (104 | ) | 43,870 | ||||||||||||||||||||||||||
U.S. government agencies | 12,968 | 575 | (5 | ) | 13,538 | ||||||||||||||||||||||||||
Municipal bonds | 469,646 | 13,950 | (1,555 | ) | 482,041 | ||||||||||||||||||||||||||
Foreign government | 106,054 | 6,760 | (83 | ) | 112,731 | ||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 1,167,011 | 60,322 | (5,471 | ) | 1,221,862 | ||||||||||||||||||||||||||
Industrial | 1,187,818 | 38,317 | (23,275 | ) | 1,202,860 | ||||||||||||||||||||||||||
Utilities | 137,169 | 3,200 | (1,677 | ) | 138,692 | ||||||||||||||||||||||||||
Commercial mortgage backed securities | 36,964 | 1,890 | (169 | ) | 38,685 | ||||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 954,320 | 23,340 | (1,878 | ) | 975,782 | ||||||||||||||||||||||||||
Non-agency backed | 22,071 | 696 | (264 | ) | 22,503 | ||||||||||||||||||||||||||
Asset backed securities | 709 | 2 | (1 | ) | 710 | ||||||||||||||||||||||||||
$ | 4,221,221 | $ | 155,441 | $ | (42,344 | ) | $ | 4,334,318 | |||||||||||||||||||||||
(Amounts in Thousands) | Original or | Gross | Gross | Fair | |||||||||||||||||||||||||||
As of December 31, 2013 | Amortized | Unrealized | Unrealized | Value | |||||||||||||||||||||||||||
Cost | Gains | Losses | |||||||||||||||||||||||||||||
Preferred stock | $ | 1,498 | $ | 82 | $ | (74 | ) | $ | 1,506 | ||||||||||||||||||||||
Common stock | 14,512 | 1,156 | (2,026 | ) | 13,642 | ||||||||||||||||||||||||||
U.S. treasury securities | 158,915 | 1,196 | (851 | ) | 159,260 | ||||||||||||||||||||||||||
U.S. government agencies | 10,466 | 107 | (84 | ) | 10,489 | ||||||||||||||||||||||||||
Municipal bonds | 461,325 | 4,781 | (19,923 | ) | 446,183 | ||||||||||||||||||||||||||
Foreign government | 160,459 | 971 | (1,325 | ) | 160,105 | ||||||||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 1,057,542 | 41,027 | (13,970 | ) | 1,084,599 | ||||||||||||||||||||||||||
Industrial | 768,161 | 7,695 | (21,439 | ) | 754,417 | ||||||||||||||||||||||||||
Utilities | 70,924 | 1,310 | (2,008 | ) | 70,226 | ||||||||||||||||||||||||||
Commercial mortgage backed securities | 28,970 | — | (404 | ) | 28,566 | ||||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 694,001 | 5,657 | (13,918 | ) | 685,740 | ||||||||||||||||||||||||||
Non-agency backed | 6,737 | 19 | (7 | ) | 6,749 | ||||||||||||||||||||||||||
Asset backed securities | 6,119 | 4 | (3 | ) | 6,120 | ||||||||||||||||||||||||||
$ | 3,439,629 | $ | 64,005 | $ | (76,032 | ) | $ | 3,427,602 | |||||||||||||||||||||||
Less: securities pledged | 316,576 | 506 | (5,564 | ) | 311,518 | ||||||||||||||||||||||||||
$ | 3,123,053 | $ | 63,499 | $ | (70,468 | ) | $ | 3,116,084 | |||||||||||||||||||||||
Summary of Available for Sale Fixed Securities by Contractual Maturity | A summary of the Company’s available-for-sale fixed securities as of December 31, 2014 and 2013, by contractual maturity, is shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. | ||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | Amortized | Fair | Amortized | Fair | |||||||||||||||||||||||||||
Cost | Value | Cost | Value | ||||||||||||||||||||||||||||
Due in one year or less | $ | 106,041 | $ | 105,839 | $ | 128,128 | $ | 128,214 | |||||||||||||||||||||||
Due after one through five years | 682,632 | 704,344 | 592,703 | 603,942 | |||||||||||||||||||||||||||
Due after five through ten years | 1,998,740 | 2,062,942 | 1,632,115 | 1,631,751 | |||||||||||||||||||||||||||
Due after ten years | 335,669 | 342,468 | 334,846 | 321,372 | |||||||||||||||||||||||||||
Mortgage and asset backed securities | 1,014,064 | 1,037,681 | 735,827 | 727,175 | |||||||||||||||||||||||||||
Total fixed maturities | $ | 4,137,146 | $ | 4,253,274 | $ | 3,423,619 | $ | 3,412,454 | |||||||||||||||||||||||
Net Investment Income | Net investment income for the years ended December 31, 2014, 2013 and 2012 was derived from the following sources: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 124,976 | $ | 82,392 | $ | 67,182 | |||||||||||||||||||||||||
Equity securities, available-for-sale | 1,346 | 2,119 | 127 | ||||||||||||||||||||||||||||
Equity securities, trading | 29 | — | — | ||||||||||||||||||||||||||||
Cash and short term investments | 5,442 | 2,200 | 1,778 | ||||||||||||||||||||||||||||
131,793 | 86,711 | 69,087 | |||||||||||||||||||||||||||||
Less: Investment expenses and interest expense on securities sold under agreement to repurchase | (192 | ) | (1,892 | ) | (920 | ) | |||||||||||||||||||||||||
$ | 131,601 | 84,819 | $ | 68,167 | |||||||||||||||||||||||||||
Other than Temporary Impairment, Credit Losses Recognized in Earnings | OTTI charges of our fixed-maturities and equity securities for the years ended December 31, 2014, 2013 and 2012 are presented in the table below: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Equity securities recognized in earnings | $ | 2,646 | $ | 2,869 | $ | 2,965 | |||||||||||||||||||||||||
Fixed maturity securities recognized in earnings | 5,393 | — | — | ||||||||||||||||||||||||||||
$ | 8,039 | $ | 2,869 | $ | 2,965 | ||||||||||||||||||||||||||
Summary of Gross Unrealized Losses of Fixed-maturities and Equity Securities | The tables below summarize the gross unrealized losses of our fixed maturity and equity securities by length of time the security has continuously been in an unrealized loss position as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Fair | Unrealized | No. of | Fair | Unrealized | No. of | Fair | Unrealized | |||||||||||||||||||||||
31-Dec-14 | Market | Losses | Positions | Market | Losses | Positions | Market | Losses | |||||||||||||||||||||||
Value | Held | Value | Held | Value | |||||||||||||||||||||||||||
Common and preferred stock | $ | 38,970 | $ | (7,764 | ) | 21 | $ | 400 | $ | (98 | ) | 2 | $ | 39,370 | $ | (7,862 | ) | ||||||||||||||
U.S. treasury securities | 1,030 | (54 | ) | 7 | 3,219 | (50 | ) | 9 | 4,249 | (104 | ) | ||||||||||||||||||||
U.S. government agencies | 1,736 | (3 | ) | 3 | 222 | (2 | ) | 4 | 1,958 | (5 | ) | ||||||||||||||||||||
Municipal bonds | 24,695 | (240 | ) | 64 | 93,201 | (1,315 | ) | 98 | 117,896 | (1,555 | ) | ||||||||||||||||||||
Foreign government | 7,644 | (83 | ) | 4 | — | — | — | 7,644 | (83 | ) | |||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 192,520 | (4,297 | ) | 143 | 66,715 | (1,174 | ) | 27 | 259,235 | (5,471 | ) | ||||||||||||||||||||
Industrial | 236,845 | (17,230 | ) | 194 | 60,511 | (6,045 | ) | 43 | 297,356 | (23,275 | ) | ||||||||||||||||||||
Utilities | 12,188 | (490 | ) | 22 | 13,908 | (1,187 | ) | 3 | 26,096 | (1,677 | ) | ||||||||||||||||||||
Commercial mortgage backed securities | 15 | — | 2 | 4,729 | (169 | ) | 8 | 4,744 | (169 | ) | |||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 41,187 | (101 | ) | 10 | 66,172 | (1,777 | ) | 29 | 107,359 | (1,878 | ) | ||||||||||||||||||||
Non-agency backed | 5,092 | (263 | ) | 3 | 28 | (1 | ) | 2 | 5,120 | (264 | ) | ||||||||||||||||||||
Asset-backed securities | 148 | — | 1 | 110 | (1 | ) | 2 | 258 | (1 | ) | |||||||||||||||||||||
Total temporarily impaired | $ | 562,070 | $ | (30,525 | ) | 474 | $ | 309,215 | $ | (11,819 | ) | 227 | $ | 871,285 | $ | (42,344 | ) | ||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||||||||
(Amounts in Thousands) | Fair | Unrealized | No. of | Fair | Unrealized | No. of | Fair | Unrealized | |||||||||||||||||||||||
31-Dec-13 | Market | Losses | Positions | Market | Losses | Positions | Market | Losses | |||||||||||||||||||||||
Value | Held | Value | Held | Value | |||||||||||||||||||||||||||
Common and preferred stock | $ | 4,875 | $ | (2,100 | ) | 51 | $ | — | $ | — | — | $ | 4,875 | $ | (2,100 | ) | |||||||||||||||
U.S. treasury securities | 52,757 | (851 | ) | 18 | — | — | — | 52,757 | (851 | ) | |||||||||||||||||||||
U.S. government agencies | 4,135 | (84 | ) | 11 | — | — | 4,135 | (84 | ) | ||||||||||||||||||||||
Municipal bonds | 254,219 | (17,986 | ) | 302 | 24,169 | (1,937 | ) | 9 | 278,388 | (19,923 | ) | ||||||||||||||||||||
Foreign government | 68,102 | (1,324 | ) | 16 | 999 | (1 | ) | 1 | 69,101 | (1,325 | ) | ||||||||||||||||||||
Corporate bonds: | |||||||||||||||||||||||||||||||
Finance | 500,564 | (13,402 | ) | 182 | 58,923 | (568 | ) | 9 | 559,487 | (13,970 | ) | ||||||||||||||||||||
Industrial | 500,366 | (21,203 | ) | 263 | 3,383 | (236 | ) | 2 | 503,749 | (21,439 | ) | ||||||||||||||||||||
Utilities | 45,663 | (2,008 | ) | 21 | — | — | — | 45,663 | (2,008 | ) | |||||||||||||||||||||
Commercial mortgage backed securities | 28,552 | (404 | ) | 18 | — | — | — | 28,552 | (404 | ) | |||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||||
Agency backed | 492,740 | (13,918 | ) | 120 | — | — | — | 492,740 | (13,918 | ) | |||||||||||||||||||||
Non-agency backed | 205 | (5 | ) | 6 | 23 | (2 | ) | 1 | 228 | (7 | ) | ||||||||||||||||||||
Asset-backed securities | 1,463 | (3 | ) | 4 | — | — | — | 1,463 | (3 | ) | |||||||||||||||||||||
Total temporarily impaired | $ | 1,953,641 | $ | (73,288 | ) | 1,012 | $ | 87,497 | $ | (2,744 | ) | 22 | $ | 2,041,138 | $ | (76,032 | ) | ||||||||||||||
Realized Gain (Loss) on Investments | The tables below summarize the gross realized gains and (losses) for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2014 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 16,611 | $ | (4,946 | ) | $ | 11,665 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 14,121 | (3,928 | ) | 10,193 | |||||||||||||||||||||||||||
Equity securities, trading | 10,475 | (7,871 | ) | 2,604 | |||||||||||||||||||||||||||
Write-down of fixed maturities, available-for-sale | — | (5,393 | ) | (5,393 | ) | ||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,646 | ) | (2,646 | ) | ||||||||||||||||||||||||||
$ | 41,207 | $ | (24,784 | ) | $ | 16,423 | |||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2013 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 28,696 | $ | (18,066 | ) | $ | 10,630 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 11,264 | (3,498 | ) | 7,766 | |||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,869 | ) | (2,869 | ) | ||||||||||||||||||||||||||
$ | 39,960 | $ | (24,433 | ) | $ | 15,527 | |||||||||||||||||||||||||
(Amounts in Thousands) | Gross Gains | Gross Losses | Net Gains | ||||||||||||||||||||||||||||
Year Ended December 31, 2012 | and (Losses) | ||||||||||||||||||||||||||||||
Fixed maturities, available-for-sale | $ | 10,310 | $ | (1,066 | ) | $ | 9,244 | ||||||||||||||||||||||||
Equity securities, available-for-sale | 7,718 | (5,016 | ) | 2,702 | |||||||||||||||||||||||||||
Write-down of equity securities, available-for-sale | — | (2,965 | ) | (2,965 | ) | ||||||||||||||||||||||||||
$ | 18,028 | $ | (9,047 | ) | $ | 8,981 | |||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | The net unrealized gains (losses) on available-for-sale securities for for the years ended December 31, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||||||||
Fixed maturity securities | $ | 116,128 | $ | (11,165 | ) | $ | 117,582 | ||||||||||||||||||||||||
Equity securities | (3,031 | ) | (862 | ) | (478 | ) | |||||||||||||||||||||||||
Total net unrealized gain (loss) | 113,097 | (12,027 | ) | 117,104 | |||||||||||||||||||||||||||
Deferred income tax benefit (expense) | (39,584 | ) | 4,209 | (40,986 | ) | ||||||||||||||||||||||||||
Cumulative net unrealized gain (loss), net of deferred income tax as of December 31 | 73,513 | (7,818 | ) | 76,118 | |||||||||||||||||||||||||||
Increase (decrease) in net unrealized gains, net of deferred income tax | $ | 81,331 | $ | (83,936 | ) | $ | 67,708 | ||||||||||||||||||||||||
Trading Securities | The amortized cost, estimated market value and gross unrealized appreciation and depreciation of trading securities as of December 31, 2014 are presented in the table below: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | Original or amortized cost | Gross unrealized gains | Gross unrealized losses | Market value | |||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||||
Common stock | $ | 25,407 | $ | 1,614 | $ | (272 | ) | $ | 26,749 | ||||||||||||||||||||||
Notional Amounts of Interest Rate Swaps by Remaining Maturity | The following table presents the notional amounts by remaining maturity of the Company’s Interest Rate Swaps as of December 31, 2014: | ||||||||||||||||||||||||||||||
Remaining Life of Notional Amount(1) | |||||||||||||||||||||||||||||||
(Amounts in Thousands) | One Year | Two Through | Six Through | After | Total | ||||||||||||||||||||||||||
Five Years | Ten Years | Ten Years | |||||||||||||||||||||||||||||
Interest rate swaps | $ | — | $ | 70,000 | $ | — | $ | — | $ | 70,000 | |||||||||||||||||||||
-1 | Notional amount is not representative of either market risk or credit risk and is not recorded in the consolidated balance sheet. | ||||||||||||||||||||||||||||||
Fair Values of Restricted Assets | The fair values of our restricted assets as of December 31, 2014 and 2013 are as follows: | ||||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||||||||
Restricted cash | $ | 186,225 | $ | 100,439 | |||||||||||||||||||||||||||
Restricted investments | 734,271 | 978,910 | |||||||||||||||||||||||||||||
Total restricted cash and investments | $ | 920,496 | $ | 1,079,349 | |||||||||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||
Fair Value Measurement of Financial Assets and Financial Liabilities on Recurring Basis | The following tables present the level within the fair value hierarchy at which the Company’s financial assets and financial liabilities are measured on a recurring basis as of December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
U.S. treasury securities | $ | 43,870 | $ | 43,870 | $ | — | $ | — | |||||||||||||||||||||
U.S. government securities | 13,538 | — | 13,538 | — | |||||||||||||||||||||||||
Municipal bonds | 482,041 | — | 482,041 | — | |||||||||||||||||||||||||
Foreign government | 112,731 | — | 112,731 | — | |||||||||||||||||||||||||
Corporate bonds and other bonds: | |||||||||||||||||||||||||||||
Finance | 1,221,862 | — | 1,221,862 | — | |||||||||||||||||||||||||
Industrial | 1,202,860 | — | 1,202,860 | — | |||||||||||||||||||||||||
Utilities | 138,692 | — | 138,692 | — | |||||||||||||||||||||||||
Commercial mortgage backed securities | 38,685 | — | 38,685 | — | |||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||
Agency backed | 975,782 | — | 975,782 | — | |||||||||||||||||||||||||
Non-agency backed | 22,503 | — | 22,503 | — | |||||||||||||||||||||||||
Asset-backed securities | 710 | — | 710 | — | |||||||||||||||||||||||||
Equity securities, available-for-sale | 81,044 | 24,484 | 21,674 | 34,886 | |||||||||||||||||||||||||
Equity securities, trading | 26,749 | 26,749 | — | — | |||||||||||||||||||||||||
Short term investments | 63,916 | 63,916 | — | — | |||||||||||||||||||||||||
Other investments | 31,186 | — | — | 31,186 | |||||||||||||||||||||||||
Life settlement contracts | 264,517 | — | — | 264,517 | |||||||||||||||||||||||||
$ | 4,720,686 | $ | 159,019 | $ | 4,231,078 | $ | 330,589 | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Equity securities sold but not yet purchased, market | $ | 13,052 | $ | 13,052 | $ | — | $ | — | |||||||||||||||||||||
Life settlement contract profit commission | 16,534 | — | — | 16,534 | |||||||||||||||||||||||||
Derivatives | 2,033 | — | 2,033 | — | |||||||||||||||||||||||||
$ | 31,619 | $ | 13,052 | $ | 2,033 | $ | 16,534 | ||||||||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
U.S. treasury securities | $ | 110,345 | $ | 110,345 | $ | — | $ | — | |||||||||||||||||||||
U.S. government securities | 10,489 | — | 10,489 | — | |||||||||||||||||||||||||
Municipal bonds | 446,183 | — | 446,183 | — | |||||||||||||||||||||||||
Foreign government | 160,105 | 160,105 | |||||||||||||||||||||||||||
Corporate bonds and other bonds: | |||||||||||||||||||||||||||||
Finance | 1,084,599 | — | 1,084,599 | — | |||||||||||||||||||||||||
Industrial | 754,417 | — | 754,417 | — | |||||||||||||||||||||||||
Utilities | 70,226 | — | 70,226 | — | |||||||||||||||||||||||||
Commercial mortgage backed securities | 28,566 | — | 28,566 | — | |||||||||||||||||||||||||
Residential mortgage backed securities: | |||||||||||||||||||||||||||||
Agency backed | 423,137 | — | 423,137 | — | |||||||||||||||||||||||||
Non-agency backed | 6,749 | — | 6,749 | — | |||||||||||||||||||||||||
Asset-backed securities | 6,120 | — | 6,120 | — | |||||||||||||||||||||||||
Equity securities | 15,148 | 15,148 | — | — | |||||||||||||||||||||||||
Short term investments | 114,202 | 114,202 | — | — | |||||||||||||||||||||||||
Other investments | 25,749 | — | — | 25,749 | |||||||||||||||||||||||||
Securities held as collateral | 311,518 | 48,915 | 262,603 | — | |||||||||||||||||||||||||
Life settlement contracts | 233,024 | — | — | 233,024 | |||||||||||||||||||||||||
$ | 3,800,577 | $ | 288,610 | $ | 3,253,194 | $ | 258,773 | ||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase, at contract value | 293,222 | — | 293,222 | — | |||||||||||||||||||||||||
Life settlement contract profit commission | 11,945 | — | — | 11,945 | |||||||||||||||||||||||||
Derivatives | 3,054 | — | 3,054 | — | |||||||||||||||||||||||||
$ | 308,221 | $ | — | $ | 296,276 | $ | 11,945 | ||||||||||||||||||||||
Changes in Fair Value of Level 3 Financial Assets And Liabilities | The following table provides a summary of changes in fair value of the Company’s Level 3 financial assets and liabilities for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
(Amounts in Thousands) | Balance as of January 1, 2014 | Net income | Other | Purchases and | Sales and | Net transfers | Balance as of December 31, 2014 | ||||||||||||||||||||||
(loss) | comprehensive | issuances | settlements | into (out of) | |||||||||||||||||||||||||
income (loss) | Level 3 | ||||||||||||||||||||||||||||
Other investments | $ | 25,749 | $ | 3,084 | $ | — | $ | 20,207 | $ | (17,854 | ) | $ | — | 31,186 | |||||||||||||||
Equity securities, available-for-sale | — | — | (7,079 | ) | 41,965 | — | — | 34,886 | |||||||||||||||||||||
Life settlement contracts | 233,024 | 61,110 | — | 25,418 | (55,035 | ) | — | 264,517 | |||||||||||||||||||||
Life settlement contract profit commission | (11,945 | ) | (4,589 | ) | — | — | — | — | (16,534 | ) | |||||||||||||||||||
Total | $ | 246,828 | $ | 59,605 | $ | (7,079 | ) | $ | 87,590 | $ | (72,889 | ) | $ | — | $ | 314,055 | |||||||||||||
(Amounts in Thousands) | Balance as of January 1, 2013 | Net income (loss) | Other comprehensive income (loss) | Purchases and | Sales and | Net transfers | Balance as of December 31, 2013 | ||||||||||||||||||||||
issuances | settlements | into (out of) | |||||||||||||||||||||||||||
Level 3 | |||||||||||||||||||||||||||||
Other investments | $ | 11,144 | $ | 1,813 | $ | 1,666 | $ | 17,228 | $ | (6,102 | ) | $ | — | $ | 25,749 | ||||||||||||||
Life settlement contracts | 193,927 | 47,245 | — | 11,906 | (20,054 | ) | — | 233,024 | |||||||||||||||||||||
Life settlement contract profit commission | (11,750 | ) | (195 | ) | — | — | — | — | (11,945 | ) | |||||||||||||||||||
Total | $ | 193,321 | $ | 48,863 | $ | 1,666 | $ | 29,134 | $ | (26,156 | ) | $ | — | $ | 246,828 | ||||||||||||||
Fair Value of Portfolio of Life Insurance Policies | The following summarizes data utilized in estimating the fair value of the portfolio of life insurance policies as of December 31, 2014 and 2013 and, as described in Note 6. “Investments in Life Settlements”, only includes data for policies to which the Company assigned value at those dates: | ||||||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||||||
Average age of insured | 81.1 | 80.1 | |||||||||||||||||||||||||||
Average life expectancy, months (1) | 121 | 131 | |||||||||||||||||||||||||||
Average face amount per policy | $ | 6,624,000 | $ | 6,611,000 | |||||||||||||||||||||||||
Effective discount rate (2) | 14 | % | 14.2 | % | |||||||||||||||||||||||||
(1) | Standard life expectancy as adjusted for insured’s specific circumstances. | ||||||||||||||||||||||||||||
(2) | Effective Discount Rate (“EDR”) is the Company's estimated internal rate of return on its life settlement contract portfolio and is determined from the gross expected cash flows and valuation of the portfolio. The valuation of the portfolio is calculated net of all reserves using a 7.5% discount rate. The EDR is implicit of the reserves and the gross expected cash flows of the portfolio. The Company anticipates that the EDR's range is between 12.5% and 17.5% and reflects the uncertainty that exists surrounding the information available as of the reporting date. As the accuracy and reliability if information improves (declines), the EDR will decrease (increase). The change in the EDR from December 31, 2013 to December 31, 2014 resulted from routine updating of life expectancies and other factors relating to operational risk. | ||||||||||||||||||||||||||||
Increase or (Decrease) in Carrying Value of Investment in Life Insurance Policies | The Company's assumptions are, by their nature, inherently uncertain and the effect of changes in estimates may be significant. The fair value measurements used in estimating the present value calculation are derived from valuation techniques generally used in the industry that include inputs for the asset that are not based on observable market data. The extent to which the fair value could reasonably vary in the near term has been quantified by evaluating the effect of changes in significant underlying assumptions used to estimate the fair value amount. If the life expectancies were increased or decreased by 4 months and the discount factors were increased or decreased by 1% while all other variables are held constant, the carrying value of the investment in life insurance policies would increase or (decrease) by the unaudited amounts summarized below for the years ended December 31, 2014 and 2013: | ||||||||||||||||||||||||||||
Change in life expectancy | |||||||||||||||||||||||||||||
Plus | Minus | ||||||||||||||||||||||||||||
4 Months | 4 Months | ||||||||||||||||||||||||||||
Investment in life policies: | |||||||||||||||||||||||||||||
December 31, 2014 | $ | (34,686 | ) | $ | 36,486 | ||||||||||||||||||||||||
December 31, 2013 | $ | (29,537 | ) | $ | 31,313 | ||||||||||||||||||||||||
Change in discount rate (1) | |||||||||||||||||||||||||||||
Plus 1% | Minus 1% | ||||||||||||||||||||||||||||
Investment in life policies: | |||||||||||||||||||||||||||||
December 31, 2014 | $ | (22,705 | ) | $ | 25,456 | ||||||||||||||||||||||||
December 31, 2013 | $ | (20,055 | ) | $ | 22,605 | ||||||||||||||||||||||||
(1) Discount rate is a present value calculation that considers legal risk, credit risk and liquidity risk and is a component of EDR. | |||||||||||||||||||||||||||||
Schedule of Life Settlement Contracts Gain (Loss) | A reconciliation of net income for life settlement contracts in the above table to (loss) gain on investment in life settlement contracts net of profit commission included in the Consolidated Statements of Income for the years ended December 31, 2014 and 2013 is as follows: | ||||||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||||||
Net income | $ | 61,110 | $ | 47,245 | |||||||||||||||||||||||||
Premium paid | (46,367 | ) | (38,933 | ) | |||||||||||||||||||||||||
Profit commission | (4,589 | ) | (195 | ) | |||||||||||||||||||||||||
Other expenses | 2,152 | (4,317 | ) | ||||||||||||||||||||||||||
Gain on investment in life settlement contracts | $ | 12,306 | $ | 3,800 | |||||||||||||||||||||||||
Acquisitions_Acquisitions_Tabl
Acquisitions Acquisitions (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Business Combinations [Abstract] | |||||
Summary of assets acquired and liabilities assumed | A summary of the assets acquired and liabilities assumed for Sequoia are as follows: | ||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 215,473 | |||
Premium receivable | 32,870 | ||||
Reinsurance recoverables | 43,793 | ||||
Prepaid expenses and other assets | 4,014 | ||||
Deferred tax asset | 1,242 | ||||
Property and equipment | 1,022 | ||||
Intangible assets | 11,848 | ||||
Total assets | $ | 310,262 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 165,487 | |||
Unearned premium | 59,773 | ||||
Accrued expenses and other current liabilities | 15,624 | ||||
Deferred tax liability | 4,147 | ||||
Total liabilities | $ | 245,031 | |||
Cash paid | $ | 60,000 | |||
Acquisition gain | $ | 5,231 | |||
A summary of the assets acquired and liabilities assumed for CCPH are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 253,257 | |||
Premium receivable | 26,001 | ||||
Reinsurance recoverables | 12,186 | ||||
Other assets | 2,979 | ||||
Property and equipment | 589 | ||||
Intangible assets | 34,337 | ||||
Total assets | $ | 329,349 | |||
Liabilities | |||||
Loss and loss expense reserves | 9,703 | ||||
Unearned premium | 131,494 | ||||
Accrued expenses and other current liabilities | 83,993 | ||||
Deferred tax liability | 6,215 | ||||
Total liabilities | $ | 231,405 | |||
Cash paid | $ | 72,412 | |||
Acquisition gain | $ | 25,532 | |||
A summary of the assets acquired and liabilities assumed for MIHC are as follows: | |||||
(Amounts in Thousands) | |||||
Assets | |||||
Cash and investments | $ | 134,780 | |||
Premium receivable | 23,085 | ||||
Prepaid expenses and other assets | 43,714 | ||||
Deferred tax asset | 5,358 | ||||
Property and equipment | 2,684 | ||||
Intangible assets | 6,132 | ||||
Total assets | $ | 215,753 | |||
Liabilities | |||||
Loss and loss expense reserves | $ | 89,267 | |||
Unearned premiums | 27,760 | ||||
Accrued expenses and other current liabilities | 23,629 | ||||
Deferred tax liability | 2,146 | ||||
Notes payable | 6,500 | ||||
Total liabilities | $ | 149,302 | |||
Cash paid | $ | 48,500 | |||
Acquisition gain | $ | 17,951 | |||
Investment_in_Life_Settlements1
Investment in Life Settlements (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Investments, All Other Investments [Abstract] | ||||||||||||
Investment in Life Settlements | The following tables describe the Company’s investment in life settlements as of December 31, 2014 and 2013: | |||||||||||
(Amounts in thousands, except | Number of | Fair Value (1) | Face Value | |||||||||
Life Settlement Contracts) | Life Settlement | |||||||||||
Expected Maturity Term in Years | Contracts | |||||||||||
As of December 31, 2014 | ||||||||||||
0 – 1 | — | $ | — | $ | — | |||||||
1 – 2 | — | — | — | |||||||||
2 – 3 | 8 | 43,593 | 70,500 | |||||||||
3 – 4 | 5 | 10,081 | 22,500 | |||||||||
4 – 5 | 7 | 14,335 | 49,000 | |||||||||
Thereafter | 254 | 196,508 | 1,596,209 | |||||||||
Total | 274 | $ | 264,517 | $ | 1,738,209 | |||||||
As of December 31, 2013 | ||||||||||||
0 – 1 | — | $ | — | $ | — | |||||||
1 – 2 | — | — | — | |||||||||
2 – 3 | 1 | 2,726 | 5,000 | |||||||||
3 – 4 | 13 | 53,767 | 103,000 | |||||||||
4 – 5 | 2 | 5,622 | 13,000 | |||||||||
Thereafter | 255 | 170,909 | 1,641,409 | |||||||||
Total | 271 | $ | 233,024 | $ | 1,762,409 | |||||||
(1) The Company determined the fair value as of December 31, 2014 based on 218 policies out of 274 policies, as the Company assigned no value to 56 of the policies as of December 31, 2014. The Company determined the fair value as of December 31, 2013 based on 191 policies out of 271 policies, as the Company assigned no value to 80 of the policies as of December 31, 2013. The Company estimates the fair value of a life insurance policy using a cash flow model with an appropriate discount rate. In some cases, the cash flow model calculates the value of an individual policy to be negative, and therefore the fair value of the policy is zero as no liability exists when a negative value is calculated. The Company is not contractually bound to pay the premium on its life settlement contracts and, therefore, would not pay a willing buyer to assume title of these contracts. Additionally, certain of the Company’s acquired polices were structured to have low premium payments at inception of the policy term, which later escalate greatly towards the tail end of the policy term. At the current time, the Company expenses all premiums paid, even on policies with zero fair value. Once the premium payments escalate, the Company may allow the policies to lapse. In the event that death benefits are realized in the time frame between initial acquisition and premium escalation, it is a benefit to cash flow. | ||||||||||||
For these contracts where the Company determined the fair value to be negative and therefore assigned a fair value of zero, the table below details the amount of premiums paid and the death benefits received for the years ended December 31, 2014 and 2013: | ||||||||||||
2014 | 2013 | |||||||||||
Number of policies with a negative value from discounted cash flow model | 56 | 80 | ||||||||||
Premiums paid for the year ended | $ | 5,963 | $ | 9,371 | ||||||||
Death benefit received | $ | 4,950 | $ | 3,012 | ||||||||
Premiums to be Paid for Each of Five Succeeding Fiscal Years to keep Life Insurance Policies in Force | Premiums to be paid by the LSC Entities for each of the five succeeding fiscal years to keep the life insurance policies in force as of December 31, 2014, are as follows: | |||||||||||
(Amounts in Thousands) | Premiums | |||||||||||
Due on Life | ||||||||||||
Settlement | ||||||||||||
Contracts | ||||||||||||
2015 | $ | 40,961 | ||||||||||
2016 | 54,208 | |||||||||||
2017 | 52,291 | |||||||||||
2018 | 40,117 | |||||||||||
2019 | 39,777 | |||||||||||
Thereafter | 552,579 | |||||||||||
$ | 779,933 | |||||||||||
Deferred_Policy_Acquisition_Co1
Deferred Policy Acquisition Costs (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Deferred Policy Acquisition Costs | The following table reflects the amounts of policy acquisition costs deferred and amortized for the years ended December 31, 2014, 2013 and 2012 as follows: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Balance, beginning of period | $ | 468,404 | $ | 349,126 | $ | 280,991 | |||||||
Acquisition costs deferred | 698,689 | 486,566 | 311,022 | ||||||||||
Amortization | (538,710 | ) | (367,288 | ) | (242,887 | ) | |||||||
Balance, end of period | $ | 628,383 | $ | 468,404 | $ | 349,126 | |||||||
Intangible_Assets_and_Goodwill1
Intangible Assets and Goodwill (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||
Schedule of Acquired Finite-Lived Intangible Assets by Major Class | The composition of goodwill and intangible assets is summarized as follows: | ||||||||||||||||
(Amounts in Thousands) | Gross | Accumulated | Net Value | Useful Life | |||||||||||||
As of December 31, 2014 | Balance | Amortization | |||||||||||||||
Goodwill | $ | 352,685 | $ | — | $ | 352,685 | Indefinite Life | ||||||||||
Renewal rights | 62,367 | 16,732 | 45,635 | 7 – 17 years | |||||||||||||
Distribution networks | 115,480 | 36,009 | 79,471 | 5 – 20 years | |||||||||||||
Software | 3,547 | 2,101 | 1,446 | 3 - 20 years | |||||||||||||
Customer relationships | 132,744 | 31,807 | 100,937 | 8 – 18 years | |||||||||||||
Trademarks | 5,220 | 5,132 | 88 | 15 years | |||||||||||||
Trademarks | 6,327 | — | 6,327 | Indefinite Life | |||||||||||||
Licenses | 12,608 | 6,151 | 6,457 | 5 - 50 years | |||||||||||||
Licenses | 25,055 | — | 25,055 | Indefinite Life | |||||||||||||
Use rights | 41,468 | — | 41,468 | Indefinite Life | |||||||||||||
Other | 16,348 | 8,236 | 8,112 | 4 - 10 years | |||||||||||||
Total | $ | 773,849 | $ | 106,168 | $ | 667,681 | 13 years average | ||||||||||
(Amounts in Thousands) | Gross | Accumulated | Net Value | Useful Life | |||||||||||||
As of December 31, 2013 | Balance | Amortization | |||||||||||||||
Goodwill | $ | 373,591 | $ | — | $ | 373,591 | Indefinite Life | ||||||||||
Renewal rights | 30,880 | 11,438 | 19,442 | 7 – 17 years | |||||||||||||
Covenant not to compete | 7,756 | 7,692 | 64 | 3 – 9 years | |||||||||||||
Distribution networks | 100,163 | 28,136 | 72,027 | 10 – 20 years | |||||||||||||
Software | 2,266 | 2,076 | 190 | 20 years | |||||||||||||
Customer relationships | 132,266 | 18,215 | 114,051 | 8 – 18 years | |||||||||||||
Trademarks | 5,001 | 4,751 | 250 | 2 – 15 years | |||||||||||||
Trademarks | 6,460 | — | 6,460 | Indefinite Life | |||||||||||||
Licenses | 12,608 | 3,702 | 8,906 | 5 - 50 years | |||||||||||||
Licenses | 21,540 | — | 21,540 | Indefinite Life | |||||||||||||
Use rights | 38,507 | — | 38,507 | Indefinite Life | |||||||||||||
Other | 14,736 | 4,371 | 10,365 | 4 -10 years | |||||||||||||
Total | $ | 745,774 | $ | 80,381 | $ | 665,393 | 14 years average | ||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by segment for the years ended December 31, 2014 and 2013 are as follows: | ||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty Program | Total | |||||||||||||
Commercial | Risk and | ||||||||||||||||
Business | Extended | ||||||||||||||||
Warranty | |||||||||||||||||
Balance as of January 1, 2013 | $ | 116,272 | $ | 194,554 | $ | 15,820 | $ | 326,646 | |||||||||
Goodwill additions | — | 54,932 | 2,121 | 57,053 | |||||||||||||
Goodwill impairment | — | (10,226 | ) | — | (10,226 | ) | |||||||||||
Foreign currency translation | — | 118 | — | 118 | |||||||||||||
Balance as of January 1, 2014 | $ | 116,272 | $ | 239,378 | $ | 17,941 | $ | 373,591 | |||||||||
Goodwill additions | 24,304 | 18,617 | 42,921 | ||||||||||||||
Goodwill impairment | — | (62,898 | ) | — | (62,898 | ) | |||||||||||
Foreign currency translation | — | (929 | ) | — | (929 | ) | |||||||||||
Balance as of December 31, 2014 | $ | 140,576 | $ | 194,168 | $ | 17,941 | $ | 352,685 | |||||||||
Schedule of Expected Amortization Expense | The estimated aggregate amortization expense for each of the next five years is: | ||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
2015 | $ | 38,727 | |||||||||||||||
2016 | 35,972 | ||||||||||||||||
2017 | 30,336 | ||||||||||||||||
2018 | 25,249 | ||||||||||||||||
2019 | 23,501 | ||||||||||||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | |||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||
As of December 31, | |||||||||
Land | $ | 7,593 | $ | 7,593 | |||||
Building | 25,478 | 23,284 | |||||||
Software | 92,211 | 65,699 | |||||||
Computer equipment | 41,924 | 27,575 | |||||||
Other equipment | 53,529 | 19,881 | |||||||
Leasehold improvements | 25,691 | 22,968 | |||||||
246,426 | 167,000 | ||||||||
Less: Accumulated depreciation and amortization | (92,251 | ) | (62,701 | ) | |||||
$ | 154,175 | $ | 104,299 | ||||||
Liability_for_Unpaid_Loss_and_1
Liability for Unpaid Loss and LAE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Schedule of Liability for Unpaid Claims and Claims Adjustment Expense | The following table provides a reconciliation of the beginning and ending balances for unpaid losses and LAE, reported in the accompanying consolidated balance sheets as of December 31, 2014, 2013 and 2012: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Unpaid losses and LAE, gross of related reinsurance recoverables at beginning of year | $ | 4,368,234 | $ | 2,426,400 | $ | 1,879,175 | |||||||
Less: Reinsurance recoverables at beginning of year | 1,739,689 | 1,180,212 | 972,392 | ||||||||||
Net balance, beginning of year | 2,628,545 | 1,246,188 | 906,783 | ||||||||||
Incurred related to: | |||||||||||||
Current year | 2,324,062 | 1,486,418 | 909,818 | ||||||||||
Prior year | 18,557 | 30,943 | 12,857 | ||||||||||
Total incurred losses during the year | 2,342,619 | 1,517,361 | 922,675 | ||||||||||
Paid losses and LAE related to: | |||||||||||||
Current year | (886,724 | ) | (617,539 | ) | (406,238 | ) | |||||||
Prior year | (554,495 | ) | (335,621 | ) | (285,479 | ) | |||||||
Total payments for losses and LAE | (1,441,219 | ) | (953,160 | ) | (691,717 | ) | |||||||
Commuted loss reserves | — | — | 91,529 | ||||||||||
Acquired outstanding loss and loss adjustment reserve | 71,755 | 807,592 | 13,137 | ||||||||||
Effect of foreign exchange rates | (86,939 | ) | 10,564 | 3,781 | |||||||||
Net balance, December 31 | 3,514,761 | 2,628,545 | 1,246,188 | ||||||||||
Plus reinsurance recoverables at end of year | 2,149,444 | 1,739,689 | 1,180,212 | ||||||||||
Unpaid losses and LAE, gross of related reinsurance recoverables at end of year | $ | 5,664,205 | $ | 4,368,234 | $ | 2,426,400 | |||||||
Accrued_Expenses_and_Other_Lia1
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Accounts Payable and Accrued Liabilities [Abstract] | |||||||||
Schedule of Accounts Payable and Accrued Liabilities | |||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||
As of December 31, | |||||||||
Premium taxes, assessments and surcharges payable | $ | 171,512 | $ | 173,274 | |||||
Accounts and commissions payable | 157,232 | 100,780 | |||||||
Deferred warranty revenue | 138,592 | 84,230 | |||||||
Redeemable contractual obligations | 111,748 | 132,608 | |||||||
Income tax payable | 100,410 | 9,181 | |||||||
Other accrued expenses and liabilities | 116,383 | 172,502 | |||||||
$ | 795,877 | $ | 672,575 | ||||||
Debt_Tables
Debt (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||
Borrowings | The Company’s outstanding debt consisted of the following at December 31, 2014 and 2013: | ||||||||||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||||||||||
As of December 31, | |||||||||||||||||||||||||
Revolving credit facility | $ | 120,000 | $ | — | |||||||||||||||||||||
5.5% Convertible senior notes due 2021 (the "2021 Notes") | 56,745 | 164,218 | |||||||||||||||||||||||
2.75% Convertible senior notes due 2044 (the "2044 Notes") | 157,679 | — | |||||||||||||||||||||||
6.125% Notes due 2023 | 250,000 | 250,000 | |||||||||||||||||||||||
Subordinated debentures | 123,714 | 123,714 | |||||||||||||||||||||||
Secured loan agreements | 35,233 | 7,742 | |||||||||||||||||||||||
Promissory notes | 14,500 | 14,500 | |||||||||||||||||||||||
$ | 757,871 | $ | 560,174 | ||||||||||||||||||||||
Aggregate Scheduled Maturities of Borrowings | Aggregate scheduled maturities of the Company’s outstanding debt at December 31, 2014 are: | ||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||
2015 | $ | 168,689 | (1) | ||||||||||||||||||||||
2016 | 7,186 | ||||||||||||||||||||||||
2017 | 7,377 | ||||||||||||||||||||||||
2018 | 9,400 | ||||||||||||||||||||||||
2019 | 4,269 | ||||||||||||||||||||||||
Thereafter | 560,950 | (2) | |||||||||||||||||||||||
(1) | Amount includes debt outstanding under revolving credit facility as of December 31, 2014 that was paid down in 2015, amount of 2021 Notes, net of $8,417 unamortized original issue discount, submitted for conversion in 2014 that were settled in 2015 as discussed in Note 27. "Subsequent Events", as well as principal payments under our secured loan agreements. | ||||||||||||||||||||||||
(2) | Amount reflected in balance sheet for the 2021 Notes and the 2044 Notes is net of unamortized original issue discount of $2,957 and $53,245, respectively. | ||||||||||||||||||||||||
The annual future minimums in the aggregate are as follows through 2020: | |||||||||||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||||||||||
2015 | $ | 13,616 | |||||||||||||||||||||||
2016 | 7,293 | ||||||||||||||||||||||||
2017 | 3,818 | ||||||||||||||||||||||||
2018 | 919 | ||||||||||||||||||||||||
2019 | 602 | ||||||||||||||||||||||||
2020 and Thereafter | 422 | ||||||||||||||||||||||||
$ | 26,670 | ||||||||||||||||||||||||
Amounts Recorded for Notes | The following table shows the amounts recorded for the 2021 Notes and 2044 Notes as of December 31, 2014 and 2013: | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(Amounts in Thousands) | Outstanding Principal | Unamortized OID | Net Carrying Amount | Outstanding Principal | Unamortized OID | Net Carrying Amount | |||||||||||||||||||
2021 Notes | $ | 68,119 | $ | (11,374 | ) | $ | 56,745 | $ | 200,000 | $ | (35,782 | ) | $ | 164,218 | |||||||||||
2044 Notes | 210,924 | (53,245 | ) | 157,679 | — | — | — | ||||||||||||||||||
$ | 279,043 | $ | (64,619 | ) | $ | 214,424 | $ | 200,000 | $ | (35,782 | ) | $ | 164,218 | ||||||||||||
Trust Preferred Securities | The table below summarizes the Company’s trust preferred securities as of December 31, 2014: | ||||||||||||||||||||||||
(Amounts in Thousands) | Aggregate | Aggregate | Aggregate | Stated | Per Annum | ||||||||||||||||||||
Name of Trust | Liquidation | Liquidation | Principal | Maturity of | Interest | ||||||||||||||||||||
Amount of | Amount of | Amount of | Notes | Rate of | |||||||||||||||||||||
Trust Preferred | Common | Notes | Notes | ||||||||||||||||||||||
Securities | Securities | ||||||||||||||||||||||||
AmTrust Capital Financing Trust I | $ | 25,000 | $ | 774 | $ | 25,774 | 3/17/35 | 8.275 | (1) | ||||||||||||||||
AmTrust Capital Financing Trust II | 25,000 | 774 | 25,774 | 6/15/35 | 7.71 | (1) | |||||||||||||||||||
AmTrust Capital Financing Trust III | 30,000 | 928 | 30,928 | 9/15/36 | 3.541 | (2) | |||||||||||||||||||
AmTrust Capital Financing Trust IV | 40,000 | 1,238 | 41,238 | 3/15/37 | 3.241 | (3) | |||||||||||||||||||
Total trust preferred securities | $ | 120,000 | $ | 3,714 | $ | 123,714 | |||||||||||||||||||
-1 | The interest rate will change to three-month LIBOR plus 3.40% after the tenth anniversary in 2015. | ||||||||||||||||||||||||
-2 | The interest rate is LIBOR plus 3.30%. | ||||||||||||||||||||||||
-3 | The interest rate is LIBOR plus 3.00%. |
Reinsurance_Tables
Reinsurance (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Reinsurance Disclosures [Abstract] | |||||||||||||||||||||||||
Schedule of Primary Reinsurance Programs | The following tables provide a summary of the Company's primary reinsurance programs as of December 31, 2014 for the United States and internationally: | ||||||||||||||||||||||||
(Amounts in Thousands) | 2014 Domestic Reinsurance Program | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Workers’ Compensation, Excess of Loss | $ | 5,000 | $ | 510,000 | 98.5% of $505,000 | ||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 2,000 | $ | 30,000 | 95% of $28,000 | ||||||||||||||||||||
Property, Occurrence Excess of loss | $ | 20,000 | $ | 400,000 | 99% of $380,000 | ||||||||||||||||||||
Surety, Excess of Loss | $ | 500 | $ | 20,000 | 70% of $19,500 | ||||||||||||||||||||
Casualty/Umbrella, Excess of Loss and Quota Share | $ | 2,500 | $ | 50,000 | 95% of $50,000 | ||||||||||||||||||||
Equipment Breakdown, Quota Share | $ | — | $ | 100,000 | 100% of $100,000 | ||||||||||||||||||||
(Amounts in Thousands) | 2014 International Reinsurance Program | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 800 | $ | 4,400 | 100% of $3,600 | ||||||||||||||||||||
Property, Occurrence Excess of Loss | $ | 8,000 | $ | 160,000 | 97% of $152,000 | ||||||||||||||||||||
Surety, Excess of Loss and Quota Share | $ | 4,500 | $ | 45,000 | 100% of $41,500 | ||||||||||||||||||||
Casualty, Excess of Loss | $ | 3,000 | $ | 15,000 | 100% of $12,000 | ||||||||||||||||||||
Latent Defect, Excess of Loss | $ | 3,200 | $ | 40,000 | 100% of $36,800 | ||||||||||||||||||||
Accident and Health, Excess of Loss | $ | 800 | $ | 32,000 | 100% of $31,200 | ||||||||||||||||||||
Car Care, Excess of Loss | $ | 1,000 | $ | 105,000 | 97.5% of $104,000 | ||||||||||||||||||||
Medical Malpractice, Quota Share | $ | 7,800 | $ | 13,000 | 40% of $13,000 | ||||||||||||||||||||
(Amounts in Thousands) | 2014 AmTrust at Lloyds Reinsurance Programs | ||||||||||||||||||||||||
Type of Reinsurance | Retention | Event Protection | Coverage | ||||||||||||||||||||||
Property, Per Risk Excess of Loss | $ | 1,600 | $ | 8,000 | 100% of $6,400 | ||||||||||||||||||||
Property, Occurrence Excess of Loss | $ | 20,000 | $ | 120,000 | 98% of $90,000 | ||||||||||||||||||||
Casualty, Excess of Loss | $ | 4,000 | $ | 20,000 | 100% of $16,000 | ||||||||||||||||||||
Personal Accident, Excess of Loss | $ | 2,000 | $ | 50,000 | 100% of $48,000 | ||||||||||||||||||||
Pecuniary Risks | $ | 5,000 | $ | 35,000 | 100% of $30,000 | ||||||||||||||||||||
Schedule of Effect of Reinsurance with Unrelated Companies on Premiums and Losses | The effect of reinsurance with unrelated companies on premiums and losses for 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Amounts in Thousands) | Written | Earned | Written | Earned | Written | Earned | |||||||||||||||||||
Premiums: | |||||||||||||||||||||||||
Direct | $ | 5,422,484 | $ | 4,816,607 | $ | 3,869,893 | $ | 3,308,136 | $ | 2,494,846 | $ | 2,067,635 | |||||||||||||
Assumed | 665,481 | 562,193 | 247,018 | 254,863 | 254,480 | 270,008 | |||||||||||||||||||
Ceded | (2,131,347 | ) | (1,852,236 | ) | (1,551,238 | ) | (1,297,009 | ) | (1,101,289 | ) | (918,791 | ) | |||||||||||||
$ | 3,956,618 | $ | 3,526,564 | $ | 2,565,673 | $ | 2,265,990 | $ | 1,648,037 | $ | 1,418,852 | ||||||||||||||
As of December 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(Amounts in Thousands) | Assumed | Ceded | Assumed | Ceded | Assumed | Ceded | |||||||||||||||||||
Loss and LAE reserves | $ | 623,193 | $ | (2,149,444 | ) | $ | 378,564 | $ | (1,739,689 | ) | $ | 503,174 | $ | (1,185,056 | ) | ||||||||||
Unearned premiums | 211,177 | (1,302,848 | ) | 103,878 | (1,011,304 | ) | 108,679 | (754,844 | ) | ||||||||||||||||
Loss and LAE expense incurred | 424,754 | (1,217,593 | ) | 91,109 | (975,434 | ) | 166,191 | (638,595 | ) | ||||||||||||||||
Related_Party_Transactions_Tab
Related Party Transactions (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Text Block [Abstract] | |||||||||||||
Results of Operations Related to Reinsurance Agreements | The following is the effect on the Company’s results of operations for the years ended December 31, 2014, 2013 and 2012 related to the Maiden Quota Share agreement: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Results of operations: | |||||||||||||
Premium written – ceded | $ | (1,592,457 | ) | $ | (1,150,394 | ) | $ | (846,491 | ) | ||||
Change in unearned premium – ceded | 211,897 | 162,846 | 116,168 | ||||||||||
Earned premium – ceded | $ | (1,380,560 | ) | $ | (987,548 | ) | $ | (730,323 | ) | ||||
Ceding commission on premium written | $ | 493,342 | $ | 330,186 | $ | 223,111 | |||||||
Ceding commission – deferred | (88,271 | ) | (53,630 | ) | (26,129 | ) | |||||||
Ceding commission – earned | $ | 405,071 | $ | 276,556 | $ | 196,982 | |||||||
Incurred loss and loss adjustment expense – ceded | $ | 885,362 | $ | 715,832 | $ | 526,210 | |||||||
Acquisition_Costs_and_Other_Un1
Acquisition Costs and Other Underwriting Expenses (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Insurance [Abstract] | |||||||||||||
Components of acquisition costs and other underwriting expenses | The following table summarizes the components of acquisition costs and other underwriting expenses for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Policy acquisition expenses | $ | 460,010 | $ | 244,461 | $ | 178,633 | |||||||
Salaries and benefits | 367,549 | 247,173 | 155,441 | ||||||||||
Other insurance general and administrative expense | 29,364 | 41,528 | 21,931 | ||||||||||
$ | 856,923 | $ | 533,162 | $ | 356,005 | ||||||||
Share_Based_Compensation_Table
Share Based Compensation (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Share-based Compensation [Abstract] | |||||||||||||||||||||
Schedule of Option Granted, Exercised and Expired | The following schedule shows all options granted, exercised, and expired under the Plan for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares | Weighted | Shares | Weighted | Shares | Weighted | ||||||||||||||||
Average | Average | Average | |||||||||||||||||||
Exercise | Exercise | Exercise | |||||||||||||||||||
Price | Price | Price | |||||||||||||||||||
Outstanding at beginning of year | 2,997,460 | $ | 10.49 | 3,675,776 | $ | 9.41 | 4,546,678 | $ | 9.06 | ||||||||||||
Granted | 37,500 | 37.87 | 78,001 | 29.78 | 45,981 | 23.63 | |||||||||||||||
Exercised | (1,092,120 | ) | 9.5 | (747,272 | ) | 7.21 | (821,745 | ) | 7.98 | ||||||||||||
Forfeited | (8,470 | ) | 7.03 | (9,045 | ) | 8.9 | (95,138 | ) | 11.87 | ||||||||||||
Outstanding at end of year | 1,934,370 | $ | 11.6 | 2,997,460 | $ | 10.49 | 3,675,776 | $ | 9.41 | ||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The fair value was estimated at the date of grant with the following weighted average assumptions for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Volatility | 41.89 | % | 33.09 | % | 32.68 | % | |||||||||||||||
Risk-free interest rate | 2.73 | % | 0.88 | % | 0.73 | % | |||||||||||||||
Weighted average expected lives in years | 6.25 | 6.25 | 6.25 | ||||||||||||||||||
Dividend rate | 1.9 | % | 1.68 | % | 1.37 | % | |||||||||||||||
Forfeiture rate | 0.5 | % | 0.5 | % | 0.5 | % | |||||||||||||||
Summary of Restricted Stock and RSU Activity | A summary of the Company’s restricted stock and RSU activity for the years ended December 31, 2014, 2013 and 2012 is shown below: | ||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||
Shares or | Weighted | Shares or | Weighted | Shares or | Weighted Average | ||||||||||||||||
Units | Average | Units | Average | Units | Grant Date Fair Value | ||||||||||||||||
Grant Date | Grant Date | ||||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||||
Non-vested at beginning of year | 917,015 | $ | 24.43 | 888,197 | $ | 20.86 | 352,453 | $ | 15.14 | ||||||||||||
Granted | 902,358 | 39.21 | 291,430 | 31.17 | 638,177 | 23.04 | |||||||||||||||
Vested | (497,534 | ) | 27.38 | (262,031 | ) | 19.81 | (101,681 | ) | 14.7 | ||||||||||||
Forfeited | (16,328 | ) | 33.19 | (581 | ) | 29.31 | (752 | ) | 20.86 | ||||||||||||
Non-vested at end of year | 1,305,511 | $ | 33.41 | 917,015 | $ | 24.43 | 888,197 | $ | 20.86 | ||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The provision for income taxes consists of the following for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Income Tax Provision (Benefit) | |||||||||||||
Current expense (benefit) | |||||||||||||
Federal | $ | 219,413 | $ | 49,565 | $ | 6,402 | |||||||
Foreign | 26,142 | 29,935 | 21,052 | ||||||||||
Total current tax expense | 245,555 | 79,500 | 27,454 | ||||||||||
Deferred expense (benefit) | |||||||||||||
Federal | $ | (8,376 | ) | $ | 13,741 | $ | 9,919 | ||||||
Foreign | (183,493 | ) | 4,778 | (16,081 | ) | ||||||||
Total deferred tax expense | (191,869 | ) | 18,519 | (6,162 | ) | ||||||||
Total income tax expense | $ | 53,686 | $ | 98,019 | $ | 21,292 | |||||||
Reconciliation of Statutory Income Tax Rate to Effective Tax Rate | The following table is a reconciliation of the Company’s statutory income tax expense to its effective tax rate for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Income before equity in earnings (loss) of unconsolidated subsidiaries | $ | 471,933 | $ | 367,046 | $ | 196,857 | |||||||
Tax at federal statutory rate of 35% | $ | 165,177 | $ | 128,466 | $ | 68,900 | |||||||
Tax effects resulting from: | |||||||||||||
Net income of non-includible foreign subsidiaries | (99,904 | ) | (45,075 | ) | (43,806 | ) | |||||||
Other, net | (11,587 | ) | 14,628 | (3,802 | ) | ||||||||
$ | 53,686 | $ | 98,019 | $ | 21,292 | ||||||||
Effective tax rate | 11.4 | % | 26.7 | % | 10.8 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of deferred tax assets and liabilities as of December 31, 2014 and 2013 are shown below: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||
Deferred tax assets: | |||||||||||||
Unearned premiums | $ | 117,922 | $ | 83,410 | |||||||||
Ceding commission | 107,739 | 82,554 | |||||||||||
Loss and LAE reserves | 49,583 | 43,452 | |||||||||||
Other | 62,346 | 60,673 | |||||||||||
Deferred compensation | 7,774 | 7,183 | |||||||||||
Bad debt | 13,027 | 8,790 | |||||||||||
Net operating loss carryforward | 101,230 | 2,133 | |||||||||||
Unrealized loss on investments | — | 4,396 | |||||||||||
$ | 459,621 | $ | 292,591 | ||||||||||
Deferred tax liabilities: | |||||||||||||
Deferred acquisition costs | $ | (295,121 | ) | $ | (239,293 | ) | |||||||
Equalization reserves | (94,215 | ) | (186,576 | ) | |||||||||
Intangible assets | (51,619 | ) | (64,090 | ) | |||||||||
Unrealized gain on investments | (30,219 | ) | — | ||||||||||
Other | (16,790 | ) | (19,578 | ) | |||||||||
Depreciation | (31,350 | ) | (31,396 | ) | |||||||||
Equity results which cannot be liquidated tax free | (41,497 | ) | (21,200 | ) | |||||||||
Accrual market discount | (3,123 | ) | (3,020 | ) | |||||||||
Cash surrender value on insurance | (2,050 | ) | (1,957 | ) | |||||||||
(565,984 | ) | (567,110 | ) | ||||||||||
Deferred tax liability, net | $ | (106,363 | ) | $ | (274,519 | ) | |||||||
Summary of Income Tax Examinations | Listed below are the tax years that remain subject to examination by major tax jurisdictions: | ||||||||||||
Open Tax Years | |||||||||||||
Major tax jurisdictions: | |||||||||||||
United States | 2010-2013 | ||||||||||||
United Kingdom | 2011-2013 | ||||||||||||
Ireland | 2009-2013 |
Employee_Benefit_Plans_Employe
Employee Benefit Plans Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||
Changes in Projected Benefit Obligations, Fair Value of Plan Assets, and Funded Status of Plan | Changes in benefit obligations and plan assets as of December 31, 2014 and 2013 is as follows: | ||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Change in Benefit Obligation | |||||||||||||||||
Benefit obligation at January 1, 2014 and February 28, 2013 | $ | 46,873 | $ | 39,877 | |||||||||||||
Interest cost | 2,074 | 1,608 | |||||||||||||||
Actuarial loss | 4,621 | 2,074 | |||||||||||||||
Benefits paid net of retiree contributions | (820 | ) | (553 | ) | |||||||||||||
Exchange rate changes | (3,202 | ) | 3,867 | ||||||||||||||
Benefit Obligation at End of Year | 49,546 | $ | 46,873 | ||||||||||||||
Change in Plan Assets | |||||||||||||||||
Fair Value of Plan Assets at January 1, 2014 and February 28, 2013 | 43,592 | $ | 34,832 | ||||||||||||||
Actual return on assets | 5,974 | 1,820 | |||||||||||||||
Employer contributions | 1,004 | 3,958 | |||||||||||||||
Benefits and expenses paid net of retiree contributions | (820 | ) | (553 | ) | |||||||||||||
Exchange rate changes | (3,016 | ) | 3,535 | ||||||||||||||
Fair Value of Plan Assets at End of Year | $ | 46,734 | $ | 43,592 | |||||||||||||
Funded Status at December 31, 2014 and 2013 | $ | (2,812 | ) | $ | (3,281 | ) | |||||||||||
Schedule of Net Benefit Costs | Net periodic benefit cost for the year ended December 31, 2014 and 2013 is as follows: | ||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Net Periodic Benefit Costs | |||||||||||||||||
Interest costs on benefit obligation | $ | 2,074 | $ | 1,608 | |||||||||||||
Assumed return on plan assets | (2,600 | ) | (1,900 | ) | |||||||||||||
Total | $ | (526 | ) | $ | (292 | ) | |||||||||||
Schedule of Expected Benefit Payments | Estimated future benefit payments to retirees from the Company's Non-U.S. pension trust are as follows: | ||||||||||||||||
(Amounts in Thousands) | |||||||||||||||||
2015 | $ | 749 | |||||||||||||||
2016 | 858 | ||||||||||||||||
2017 | 910 | ||||||||||||||||
2018 | 815 | ||||||||||||||||
2019 | 1,055 | ||||||||||||||||
2020 - 2024 | 7,531 | ||||||||||||||||
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information regarding the pension plan with projected benefit obligations and accumulated benefit obligations in excess of the fair value of plan assets as of December 31, 2014 and 2013 is as follows: | ||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | |||||||||||||||
Non-U.S. Pension Plan | |||||||||||||||||
Projected benefit obligation and accumulated benefit obligation | $ | 49,546 | $ | 46,873 | |||||||||||||
Fair value of plan assets | 46,734 | 43,592 | |||||||||||||||
Excess of projected benefit obligation and accumulated benefit obligation over plan assets | $ | 2,812 | $ | 3,281 | |||||||||||||
Schedule of Assumptions Used | Weighted average assumptions used to measure the benefit obligation for the Company's defined benefit plan as of December 31, 2014 and 2013 is as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted Average Assumptions | |||||||||||||||||
Discount rate used for liability determination | 3.75 | % | 4.5 | % | |||||||||||||
Measurement date | September 30 | September 30 | |||||||||||||||
Weighted average assumptions used to measure the net periodic benefit cost for the Company's defined benefit plan for the year ended December 31, 2014 and 2013 is as follows: | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Weighted Average Assumptions | |||||||||||||||||
Discount rate used for expense determination | 4.5 | % | 4.75 | % | |||||||||||||
Long term rate of return on assets | 6 | % | 6 | % | |||||||||||||
Assumed rate of increase for pension payments | 3.25 | % | 3.25 | % | |||||||||||||
Schedule of Allocation of Plan Assets | Actual and target allocation of the plan assets for 2014 and 2013 by asset category are as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
Target Allocation | Actual Allocation | Target Allocation | Actual Allocation | ||||||||||||||
Asset Category | |||||||||||||||||
Equity securities | 47.5 | % | 48 | % | 47.5 | % | 51 | % | |||||||||
Fixed income securities | 40 | % | 42 | % | 40 | % | 39 | % | |||||||||
Real estate partnerships | 12.5 | % | 10 | % | 12.5 | % | 10 | % | |||||||||
Total | 100 | % | 100 | % | 100 | % | 100 | % | |||||||||
Schedule of Changes in Fair Value of Plan Assets | The following table sets forth, by level within the fair value hierarchy, the Company's defined benefit plan assets as of December 31, 2014 and 2013: | ||||||||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
As of December 31, 2014 | |||||||||||||||||
Money market funds | $ | 185 | $ | 185 | $ | — | $ | — | |||||||||
Registered investment companies: | |||||||||||||||||
Equity mutual funds | 22,376 | 22,376 | — | — | |||||||||||||
Fixed income mutual funds | 19,423 | 19,423 | — | — | |||||||||||||
Total registered investment companies | 41,799 | 41,799 | — | — | |||||||||||||
Real estate partnerships | 4,750 | 4,750 | — | ||||||||||||||
$ | 46,734 | $ | 41,984 | $ | 4,750 | $ | — | ||||||||||
(Amounts in Thousands) | Total | Level 1 | Level 2 | Level 3 | |||||||||||||
As of December 31, 2013 | |||||||||||||||||
Money market funds | $ | 196 | $ | 196 | $ | — | $ | — | |||||||||
Registered investment companies: | |||||||||||||||||
Equity mutual funds | 22,159 | 22,159 | — | — | |||||||||||||
Fixed income mutual funds | 16,871 | 16,871 | — | — | |||||||||||||
Total registered investment companies | 39,030 | 39,030 | — | — | |||||||||||||
Real estate partnerships | 4,366 | — | 4,366 | — | |||||||||||||
$ | 43,592 | $ | 39,226 | $ | 4,366 | $ | — | ||||||||||
Earnings_Per_Share_Earnings_Pe
Earnings Per Share Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Summary of Elements Used in Calculating Basic and Diluted Earnings Per Share | The following, is a summary of the elements used in calculating basic and diluted earnings per share for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||
(Amounts in Thousands, except for earnings per share) | 2014 | 2013 | 2012 | ||||||||||
Basics earnings per share: | |||||||||||||
Net income attributable to AmTrust common stockholders | $ | 434,276 | $ | 278,237 | $ | 177,987 | |||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||||
Net income allocated to AmTrust common stockholders | $ | 433,059 | $ | 277,806 | $ | 177,281 | |||||||
Weighted average common shares outstanding – basic | 75,144 | 74,278 | 73,534 | ||||||||||
Less: Weighted average participating shares outstanding | 211 | 115 | 265 | ||||||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||||
Net income per AmTrust common shares – basic | $ | 5.78 | $ | 3.75 | $ | 2.42 | |||||||
Diluted earnings per share: | |||||||||||||
Net income attributable to AmTrust common stockholders | $ | 434,276 | $ | 278,237 | $ | 177,987 | |||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||||
Net income allocated to AmTrust common stockholders | $ | 433,059 | $ | 277,806 | $ | 177,281 | |||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||||
Plus: Dilutive effect of stock options, convertible debt, other | 4,584 | 3,821 | 2,351 | ||||||||||
Weighted average common shares outstanding – dilutive | 79,517 | 77,984 | 75,620 | ||||||||||
Net income per AmTrust common shares – diluted | $ | 5.45 | $ | 3.56 | $ | 2.34 | |||||||
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||
Statement of Comprehensive Income [Abstract] | |||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables summarize accumulated other comprehensive income (loss) for the years ended December 31, 2014, 2013 and 2012: | ||||||||||||||||||||
(Amounts in Thousands) | Foreign | Unrealized | Interest Rate | Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity | Accumulated | ||||||||||||||||
Currency | Gains | Swap Hedge | Other | ||||||||||||||||||
Items | (Losses) on | Comprehensive | |||||||||||||||||||
Investments | Income (Loss) | ||||||||||||||||||||
Balance, December 31, 2011 | $ | (17,091 | ) | $ | 9,372 | $ | (2,280 | ) | $ | — | $ | (9,999 | ) | ||||||||
Other comprehensive income (loss) before reclassifications | 10,354 | 98,334 | (1,128 | ) | — | 107,560 | |||||||||||||||
Amounts reclassed from accumulated other comprehensive income (loss) | — | 6,640 | — | — | 6,640 | ||||||||||||||||
Income tax benefit (expense) | (3,624 | ) | (36,741 | ) | 395 | — | (39,970 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | 6,730 | 68,233 | (733 | ) | — | 74,230 | |||||||||||||||
Balance, December 31, 2012 | (10,361 | ) | 77,605 | (3,013 | ) | — | 64,231 | ||||||||||||||
Other comprehensive income (loss) before reclassification | 19,912 | (138,902 | ) | 1,581 | (2,257 | ) | (119,666 | ) | |||||||||||||
Amounts reclassed from accumulated other comprehensive income (loss) | — | 8,707 | — | — | 8,707 | ||||||||||||||||
Income tax benefit (expense) | (6,969 | ) | 45,567 | (553 | ) | 519 | 38,564 | ||||||||||||||
Net current-period other comprehensive income (loss) | 12,943 | (84,628 | ) | 1,028 | (1,738 | ) | (72,395 | ) | |||||||||||||
Balance, December 31, 2013 | 2,582 | (7,023 | ) | (1,985 | ) | (1,738 | ) | (8,164 | ) | ||||||||||||
Other comprehensive income (loss) before reclassification | (26,706 | ) | 133,775 | 1,022 | (1,623 | ) | 106,468 | ||||||||||||||
Amounts reclassed from accumulated other comprehensive income | — | (7,566 | ) | — | — | (7,566 | ) | ||||||||||||||
Income tax benefit (expense) | 9,348 | (44,173 | ) | (358 | ) | 568 | (34,615 | ) | |||||||||||||
Net current-period other comprehensive income (loss) | (17,358 | ) | 82,036 | 664 | (1,055 | ) | 64,287 | ||||||||||||||
Balance, December 31, 2014 | $ | (14,776 | ) | $ | 75,013 | $ | (1,321 | ) | $ | (2,793 | ) | $ | 56,123 | ||||||||
Commitment_and_Contingencies_T
Commitment and Contingencies (Tables) | 12 Months Ended | |||||
Dec. 31, 2014 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||
Schedule of Future Minimum Rental Payments for Operating Leases | Future minimum lease payments as of December 31, 2014 under non-cancellable operating leases for each of the next five years are approximately as follows: | |||||
(Amounts in Thousands) | ||||||
2015 | $ | 19,573 | ||||
2016 | 17,478 | |||||
2017 | 14,642 | |||||
2018 | 11,787 | |||||
2019 | 10,785 | |||||
2020 and Thereafter | 28,443 | |||||
$ | 102,708 | |||||
Annual Future Minimum Payments as per Employee Agreements | Aggregate scheduled maturities of the Company’s outstanding debt at December 31, 2014 are: | |||||
(Amounts in Thousands) | ||||||
2015 | $ | 168,689 | (1) | |||
2016 | 7,186 | |||||
2017 | 7,377 | |||||
2018 | 9,400 | |||||
2019 | 4,269 | |||||
Thereafter | 560,950 | (2) | ||||
(1) | Amount includes debt outstanding under revolving credit facility as of December 31, 2014 that was paid down in 2015, amount of 2021 Notes, net of $8,417 unamortized original issue discount, submitted for conversion in 2014 that were settled in 2015 as discussed in Note 27. "Subsequent Events", as well as principal payments under our secured loan agreements. | |||||
(2) | Amount reflected in balance sheet for the 2021 Notes and the 2044 Notes is net of unamortized original issue discount of $2,957 and $53,245, respectively. | |||||
The annual future minimums in the aggregate are as follows through 2020: | ||||||
(Amounts in Thousands) | ||||||
2015 | $ | 13,616 | ||||
2016 | 7,293 | |||||
2017 | 3,818 | |||||
2018 | 919 | |||||
2019 | 602 | |||||
2020 and Thereafter | 422 | |||||
$ | 26,670 | |||||
Statutory_Financial_Data_Risk_1
Statutory Financial Data, Risk Based Capital and Dividend Restrictions (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Insurance [Abstract] | |||||||||||||||||
Statutory Accounting Practices Disclosure | Statutory capital and surplus and required statutory capital and surplus for the Company's insurance subsidiaries as reported to regulatory authorities as of December 31, 2014 and 2013 were approximately as follows: | ||||||||||||||||
2014 | 2013 | ||||||||||||||||
(Amounts in Thousands) | Statutory Capital | Required Statutory Capital and Surplus (1) | Statutory Capital | Required Statutory Capital and Surplus (1) | |||||||||||||
and Surplus | and Surplus | ||||||||||||||||
TIC (domestic) | $ | 479,437 | $ | 178,941 | $ | 236,528 | $ | 108,377 | |||||||||
RIC (domestic) | 82,350 | 31,082 | 58,845 | 22,587 | |||||||||||||
WIC (domestic) | 215,530 | 125,810 | 166,813 | 79,857 | |||||||||||||
AIIC (domestic) | 74,014 | 17,416 | 74,076 | 17,373 | |||||||||||||
SNIC (domestic) | 123,573 | 50,607 | 79,780 | 32,603 | |||||||||||||
MCIC (domestic) | 17,713 | 5,287 | 14,912 | 3,620 | |||||||||||||
ALIC (domestic) | 2,162 | 217 | 2,155 | 245 | |||||||||||||
AICK (domestic) | 19,304 | 6,752 | 15,275 | 5,307 | |||||||||||||
SIC (domestic) | 79,475 | 15,231 | 74,502 | 17,354 | |||||||||||||
SID (domestic) | 9,799 | 665 | 9,820 | 705 | |||||||||||||
FNIC (domestic) | 36,104 | 7,736 | 35,428 | 7,787 | |||||||||||||
DSIC (domestic) (2) | 82,243 | 11,361 | |||||||||||||||
ICC (domestic) (2) | 20,699 | 528 | |||||||||||||||
FATIC (domestic) (2) | 10,538 | 500 | |||||||||||||||
COIC (domestic) (2) | 29,011 | 8,424 | |||||||||||||||
AEL (United Kingdom) | 290,916 | 62,925 | 246,292 | 61,738 | |||||||||||||
AIU (Ireland) | 195,208 | 37,865 | 169,465 | 43,124 | |||||||||||||
AII (Bermuda) | 679,967 | 244,509 | 445,077 | 221,330 | |||||||||||||
AILSA (Luxembourg) | 6,874 | 6,526 | 7,204 | 6,165 | |||||||||||||
MIC (United Kingdom) | 130,169 | 20,122 | 95,649 | 22,957 | |||||||||||||
(1) For the Company's U.S. insurance companies and AIU, except FATIC, the amount is equal to the Regulatory Action Level ("RAL") as defined by NAIC or the minimum amount required to avoid regulatory oversight. For AEL, MIC, AII and AILSA, the amount is equal to the minimum capital required by their respective country's regulatory authority. For FATIC, the amount is equal to the minimum capital required by the regulatory authority in its state of domicile. | |||||||||||||||||
(2) As these entities were acquired in 2014, the 2013 information is not presented. | |||||||||||||||||
Statutory net income for the insurance subsidiaries for the years ended December 31, 2014, 2013 and 2012 as reported to regulatory authorities were approximately as follows: | |||||||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||||||
TIC (domestic) | $ | 21,418 | $ | 16,614 | $ | 45,621 | |||||||||||
RIC (domestic) | 9,440 | 8,158 | 1,129 | ||||||||||||||
WIC (domestic) | 14,150 | 21,447 | 9,263 | ||||||||||||||
AIIC (domestic) | 8,297 | 12,810 | 5,570 | ||||||||||||||
SNIC (domestic) | 30,666 | 14,350 | 10,624 | ||||||||||||||
MCIC (domestic) | 3,226 | 1,671 | 1,519 | ||||||||||||||
ALIC (domestic) | 2 | 18 | 15 | ||||||||||||||
AICK (domestic) | 4,081 | 3,413 | 1,198 | ||||||||||||||
SIC (domestic) (1) | 9,535 | 4,464 | |||||||||||||||
SID (domestic) (1) | 35 | 634 | |||||||||||||||
FNIC (domestic) (1) | (1,186 | ) | (4,596 | ) | |||||||||||||
DSIC (domestic) (1) | 4,124 | ||||||||||||||||
ICC (domestic) (1) | 1,565 | ||||||||||||||||
FATIC (domestic) (1) | (664 | ) | |||||||||||||||
COIC (domestic) (1) | (946 | ) | |||||||||||||||
AEL (United Kingdom) | 56,766 | 50,452 | 54,967 | ||||||||||||||
AIU (Ireland) | 50,697 | 34,223 | 20,767 | ||||||||||||||
AII (Bermuda) | 78,142 | 5,282 | 107,980 | ||||||||||||||
AILSA (Luxembourg) (1) | 207 | (27 | ) | ||||||||||||||
MIC (United Kingdom) (1) | 28,856 | 7,515 | |||||||||||||||
(1) Information is presented only for years the subsidiaries were owned by the Company. The amounts reported in year of acquisition are for the entire year and do not represent the statutory net income for the period of ownership. | |||||||||||||||||
Geographic_Information_Tables
Geographic Information (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Schedule of Income before Equity Earnings, Domestic and Foreign | The domestic and foreign components of Income before income tax and equity in earnings (loss) of unconsolidated subsidiaries for the years ended December 31, 2014, 2013 and 2012 are as follows: | ||||||||||||
(Amounts in Thousands) | 2014 | 2013 | 2012 | ||||||||||
Domestic | $ | 267,486 | $ | 243,566 | $ | 79,638 | |||||||
Foreign | 204,447 | 123,480 | 117,219 | ||||||||||
$ | 471,933 | $ | 367,046 | $ | 196,857 | ||||||||
Schedule of Operations, by Geographical Segment | The following table summarizes the Company’s operations by major geographic segment: | ||||||||||||
(Amounts in Thousands) | Domestic | Bermuda | Other Foreign | ||||||||||
December 31, 2014: | |||||||||||||
Revenue | $ | 1,394,497 | $ | 1,417,781 | $ | 1,272,053 | |||||||
Property and equipment | 143,027 | — | 11,148 | ||||||||||
December 31, 2013: | |||||||||||||
Revenue | $ | 468,980 | $ | 1,600,809 | $ | 628,106 | |||||||
Property and equipment | 95,689 | — | 8,610 | ||||||||||
December 31, 2012: | |||||||||||||
Revenue | $ | 467,617 | $ | 984,582 | $ | 215,975 | |||||||
Property and equipment | 72,899 | — | 3,034 | ||||||||||
Segments_Tables
Segments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||
Results of Operations of Business Segments | The following tables summarize business segments as follows for 2014, 2013 and 2012: | ||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||
Gross written premium | $ | 2,999,714 | $ | 1,983,052 | $ | 1,105,199 | $ | — | $ | — | $ | 6,087,965 | |||||||||||||
Net written premium | $ | 1,882,383 | $ | 1,333,747 | $ | 740,488 | $ | — | $ | — | $ | 3,956,618 | |||||||||||||
Change in unearned premium | (275,578 | ) | (101,509 | ) | (61,876 | ) | 8,909 | — | (430,054 | ) | |||||||||||||||
Net earned premium | 1,606,805 | 1,232,238 | 678,612 | 8,909 | — | 3,526,564 | |||||||||||||||||||
Loss and loss adjustment expense | (1,055,521 | ) | (817,780 | ) | (456,422 | ) | (12,896 | ) | — | (2,342,619 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (416,965 | ) | (253,794 | ) | (183,541 | ) | (2,623 | ) | — | (856,923 | ) | ||||||||||||||
(1,472,486 | ) | (1,071,574 | ) | (639,963 | ) | (15,519 | ) | — | (3,199,542 | ) | |||||||||||||||
Underwriting income | 134,319 | 160,664 | 38,649 | (6,610 | ) | — | 327,022 | ||||||||||||||||||
Service and fee income | 95,430 | 253,220 | 428 | — | 60,665 | 409,743 | |||||||||||||||||||
Investment income and realized gain | 62,810 | 56,852 | 27,994 | 368 | — | 148,024 | |||||||||||||||||||
Other expenses | (215,002 | ) | (142,134 | ) | (79,214 | ) | — | — | (436,350 | ) | |||||||||||||||
Interest expense including loss on extinguishment of debt | (27,439 | ) | (18,139 | ) | (10,110 | ) | — | — | (55,688 | ) | |||||||||||||||
Foreign currency gain | — | 60,245 | — | — | — | 60,245 | |||||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 6,064 | 4,008 | 2,234 | — | — | 12,306 | |||||||||||||||||||
Gain on sale of subsidiary | 6,631 | — | — | — | — | 6,631 | |||||||||||||||||||
Provision for income taxes | (6,741 | ) | (40,211 | ) | 2,148 | 670 | (9,552 | ) | (53,686 | ) | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | — | — | — | — | 28,351 | 28,351 | |||||||||||||||||||
Net income | $ | 56,072 | $ | 334,505 | $ | (17,871 | ) | $ | (5,572 | ) | $ | 79,464 | $ | 446,598 | |||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||
Gross written premium | $ | 1,659,980 | $ | 1,511,649 | $ | 879,455 | $ | 65,827 | $ | — | $ | 4,116,911 | |||||||||||||
Net written premium | $ | 935,313 | $ | 944,081 | $ | 620,452 | $ | 65,827 | $ | — | $ | 2,565,673 | |||||||||||||
Change in unearned premium | (101,501 | ) | (132,244 | ) | (100,081 | ) | 34,143 | — | (299,683 | ) | |||||||||||||||
Net earned premium | 833,812 | 811,837 | 520,371 | 99,970 | — | 2,265,990 | |||||||||||||||||||
Loss and loss adjustment expense | (548,598 | ) | (545,516 | ) | (355,067 | ) | (68,180 | ) | — | (1,517,361 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (212,824 | ) | (151,188 | ) | (138,650 | ) | (30,500 | ) | — | (533,162 | ) | ||||||||||||||
(761,422 | ) | (696,704 | ) | (493,717 | ) | (98,680 | ) | — | (2,050,523 | ) | |||||||||||||||
Underwriting income | 72,390 | 115,133 | 26,654 | 1,290 | — | 215,467 | |||||||||||||||||||
Service and fee income | 87,519 | 191,941 | 114 | — | 51,985 | 331,559 | |||||||||||||||||||
Investment income and realized gain | 34,665 | 46,304 | 18,464 | 913 | — | 100,346 | |||||||||||||||||||
Other expenses | (117,583 | ) | (107,076 | ) | (62,295 | ) | (4,663 | ) | — | (291,617 | ) | ||||||||||||||
Interest expense | (13,987 | ) | (12,738 | ) | (7,411 | ) | (555 | ) | — | (34,691 | ) | ||||||||||||||
Foreign currency loss | — | (6,533 | ) | — | — | — | (6,533 | ) | |||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 1,532 | 1,395 | 812 | 61 | — | 3,800 | |||||||||||||||||||
Acquisition gain on purchase | 23,183 | 25,532 | — | — | — | 48,715 | |||||||||||||||||||
Provision for income taxes | (24,389 | ) | (64,281 | ) | 5,989 | 748 | (16,086 | ) | (98,019 | ) | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | — | — | — | — | 11,566 | 11,566 | |||||||||||||||||||
Net income | $ | 63,330 | $ | 189,677 | $ | (17,673 | ) | $ | (2,206 | ) | $ | 47,465 | $ | 280,593 | |||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and Other | |||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||||||
Total gross written premium | $ | 933,740 | $ | 1,118,710 | $ | 578,735 | $ | 118,141 | $ | — | $ | 2,749,326 | |||||||||||||
Net written premium | $ | 474,381 | $ | 624,555 | $ | 430,960 | $ | 118,141 | $ | — | $ | 1,648,037 | |||||||||||||
Change in unearned premium | (57,816 | ) | (82,982 | ) | (82,392 | ) | (5,995 | ) | — | (229,185 | ) | ||||||||||||||
Net earned premium | 416,565 | 541,573 | 348,568 | 112,146 | 1,418,852 | ||||||||||||||||||||
Loss and loss adjustment expense | (270,843 | ) | (341,196 | ) | (238,302 | ) | (72,334 | ) | — | (922,675 | ) | ||||||||||||||
Acquisition costs and other underwriting expenses | (110,895 | ) | (112,491 | ) | (98,415 | ) | (34,204 | ) | — | (356,005 | ) | ||||||||||||||
(381,738 | ) | (453,687 | ) | (336,717 | ) | (106,538 | ) | (1,278,680 | ) | ||||||||||||||||
Underwriting income | 34,827 | 87,886 | 11,851 | 5,608 | — | 140,172 | |||||||||||||||||||
Service and fee income | 53,886 | 86,672 | 1,342 | — | 30,274 | 172,174 | |||||||||||||||||||
Investment income and realized gain | 27,217 | 30,952 | 16,362 | 2,617 | — | 77,148 | |||||||||||||||||||
Other expenses | (54,788 | ) | (82,031 | ) | (33,958 | ) | (6,932 | ) | — | (177,709 | ) | ||||||||||||||
Interest expense | (9,682 | ) | (11,600 | ) | (6,001 | ) | (1,225 | ) | — | (28,508 | ) | ||||||||||||||
Foreign currency loss | — | (242 | ) | — | — | — | (242 | ) | |||||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 4,694 | 5,624 | 2,910 | 594 | — | 13,822 | |||||||||||||||||||
Acquisition gain on purchase | — | — | — | — | — | — | |||||||||||||||||||
Provision for income taxes | (5,800 | ) | (12,109 | ) | 774 | (68 | ) | (4,089 | ) | (21,292 | ) | ||||||||||||||
Equity in earnings of unconsolidated subsidiaries – related party | $ | — | $ | — | $ | — | $ | — | $ | 9,295 | $ | 9,295 | |||||||||||||
Net income | $ | 50,354 | $ | 105,152 | $ | (6,720 | ) | $ | 594 | $ | 35,480 | $ | 184,860 | ||||||||||||
The following tables summarize net earned premium by major line of business, by segment, for 2014, 2013 and 2012: | |||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Total | ||||||||||||||||||||
Commercial | Risk and | Program | Lines | ||||||||||||||||||||||
Business | Extended | Reinsurance - | |||||||||||||||||||||||
Warranty | Run off | ||||||||||||||||||||||||
Year Ended December 31, 2014: | |||||||||||||||||||||||||
Workers' compensation | $ | 1,061,130 | $ | — | $ | 260,756 | $ | — | $ | 1,321,886 | |||||||||||||||
Warranty | — | 433,710 | 234 | — | 433,944 | ||||||||||||||||||||
Other liability | 98,846 | 198,505 | 127,364 | — | 424,715 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 162,377 | 25,255 | 116,528 | 1,563 | 305,723 | ||||||||||||||||||||
Medical malpractice | — | 176,608 | — | — | 176,608 | ||||||||||||||||||||
Other | 284,452 | 398,160 | 173,730 | 7,346 | 863,688 | ||||||||||||||||||||
Total net earned premium | $ | 1,606,805 | $ | 1,232,238 | $ | 678,612 | $ | 8,909 | $ | 3,526,564 | |||||||||||||||
Year Ended December 31, 2013: | |||||||||||||||||||||||||
Workers' compensation | $ | 665,087 | $ | — | $ | 166,071 | $ | — | $ | 831,158 | |||||||||||||||
Warranty | — | 397,978 | 1,952 | — | 399,930 | ||||||||||||||||||||
Other liability | 37,308 | 108,018 | 125,827 | 7 | 271,160 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 51,623 | 13,631 | 108,962 | 8,612 | 182,828 | ||||||||||||||||||||
Medical malpractice | — | 191,217 | — | — | 191,217 | ||||||||||||||||||||
Other | 79,794 | 100,993 | 117,559 | 91,351 | 389,697 | ||||||||||||||||||||
Total net earned premium | $ | 833,812 | $ | 811,837 | $ | 520,371 | $ | 99,970 | $ | 2,265,990 | |||||||||||||||
Year Ended December 31, 2012: | |||||||||||||||||||||||||
Workers' compensation | $ | 340,221 | $ | — | $ | 96,326 | $ | — | $ | 436,547 | |||||||||||||||
Warranty | — | 226,559 | 10,303 | — | 236,862 | ||||||||||||||||||||
Other liability | 25,996 | 93,914 | 71,526 | 7 | 191,443 | ||||||||||||||||||||
Commercial auto and liability, physical damage | 26,893 | 8,516 | 89,599 | 7,108 | 132,116 | ||||||||||||||||||||
Medical malpractice | — | 170,078 | — | — | 170,078 | ||||||||||||||||||||
Other | 23,455 | 42,506 | 80,814 | 105,031 | 251,806 | ||||||||||||||||||||
Total net earned premium | $ | 416,565 | $ | 541,573 | $ | 348,568 | $ | 112,146 | $ | 1,418,852 | |||||||||||||||
The following tables summarize total asses and long lived assets, by segment, as of December 31, 2014 and 2013: | |||||||||||||||||||||||||
(Amounts in Thousands) | Small | Specialty | Specialty | Personal | Corporate | Total | |||||||||||||||||||
Commercial | Risk and | Program | Lines | and other | |||||||||||||||||||||
Business | Extended | Reinsurance | |||||||||||||||||||||||
Warranty | |||||||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Fixed assets | $ | 75,966 | $ | 50,220 | $ | 27,989 | $ | — | $ | — | $ | 154,175 | |||||||||||||
Goodwill and intangible assets | 285,583 | 348,216 | 33,882 | — | — | 667,681 | |||||||||||||||||||
Total assets | 6,142,645 | 5,441,378 | 2,248,901 | 14,444 | — | 13,847,368 | |||||||||||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Fixed assets | $ | 42,054 | $ | 38,297 | $ | 22,280 | $ | 1,668 | $ | — | $ | 104,299 | |||||||||||||
Goodwill and intangible assets | 233,566 | 399,954 | 31,873 | — | — | 665,393 | |||||||||||||||||||
Total assets | 4,261,764 | 5,036,121 | 1,894,538 | 86,703 | — | 11,279,126 | |||||||||||||||||||
Quarterly_Financial_Data_Unaud1
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Summary of Quarterly Financial Information | The following is a summary of the unaudited quarterly results of operations: | ||||||||||||||||
2014 | |||||||||||||||||
(Amounts in Thousands) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Earned premium | $ | 829,051 | $ | 874,937 | $ | 914,413 | $ | 908,163 | |||||||||
Investment income | 28,527 | 32,594 | 34,552 | 35,928 | |||||||||||||
Total revenue | 953,975 | 1,010,979 | 1,071,634 | 1,047,743 | |||||||||||||
Loss and loss adjustment expense | 558,570 | 587,233 | 609,352 | 587,464 | |||||||||||||
Acquisition costs and other underwriting expense | 186,609 | 208,060 | 225,512 | 236,742 | |||||||||||||
Other expense | 87,591 | 87,588 | 103,493 | 157,678 | |||||||||||||
Provision for income taxes | 27,444 | 17,966 | (7,664 | ) | 15,940 | ||||||||||||
Net income | 101,728 | 104,189 | 157,156 | 83,525 | |||||||||||||
Income attributable to Common Stockholders | 99,851 | 106,274 | 156,590 | 71,561 | |||||||||||||
Basic EPS | $1.34 | $1.41 | $2.09 | $0.94 | |||||||||||||
Diluted EPS | $1.27 | $1.33 | $1.97 | $0.88 | |||||||||||||
2013 | |||||||||||||||||
(Amounts in Thousands) | March 31, | June 30, | September 30, | December 31, | |||||||||||||
Earned premium | $ | 407,994 | $ | 536,539 | $ | 613,895 | $ | 707,562 | |||||||||
Investment income | 18,095 | 22,634 | 23,290 | 20,800 | |||||||||||||
Total revenue | 503,886 | 649,342 | 728,278 | 816,389 | |||||||||||||
Loss and loss adjustment expense | 272,256 | 364,110 | 410,579 | 470,416 | |||||||||||||
Acquisition costs and other underwriting expense | 100,285 | 129,946 | 137,186 | 165,745 | |||||||||||||
Other expense | 52,152 | 80,985 | 90,195 | 68,285 | |||||||||||||
Provision for income taxes | 16,109 | 27,402 | 23,880 | 30,628 | |||||||||||||
Net income | 83,001 | 71,397 | 59,689 | 66,506 | |||||||||||||
Income attributable to Common Stockholders | 83,878 | 71,397 | 58,238 | 64,724 | |||||||||||||
Basic EPS | $1.13 | $0.96 | $0.78 | $0.87 | |||||||||||||
Diluted EPS | $1.08 | $0.93 | $0.74 | $0.82 | |||||||||||||
Due to changes in number of shares outstanding from quarter to quarter, the total earnings per share of the four quarters may not necessarily equal the earnings per share for the year. |
Nature_of_Operations_Nature_of
Nature of Operations Nature of Operations (Details) | Dec. 31, 2014 |
subsidiary | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of subsidiaries | 15 |
Number of foreign subsidiaries | 5 |
Significant_Accounting_Policie1
Significant Accounting Policies (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 28, 2014 | Jan. 31, 2014 | Aug. 31, 2011 |
Change in Accounting Estimate [Line Items] | ||||||||||||||
Allowance for doubtful accounts | $45,024 | $32,132 | $45,024 | $32,132 | ||||||||||
Percentage of investments in portfolio | 0.60% | |||||||||||||
Increase in deferred policy acquisition costs | 159,979 | 97,561 | 68,135 | |||||||||||
Amortization | 538,710 | 367,288 | 242,887 | |||||||||||
Assessment expenses | 23,205 | 33,772 | 39,546 | |||||||||||
Impairment of goodwill | 62,898 | 10,226 | 16,389 | |||||||||||
Income tax benefit (expense) | -15,940 | 7,664 | -17,966 | -27,444 | -30,628 | -23,880 | -27,402 | -16,109 | -53,686 | -98,019 | -21,292 | |||
Increase in total assets due to reclassification of intangible to goodwill | 13,847,368 | 11,279,126 | 13,847,368 | 11,279,126 | ||||||||||
Amount reclassified from fixed maturities available-for-sale | 0 | 311,518 | 0 | 311,518 | ||||||||||
Percentage of stock dividend paid | 10.00% | |||||||||||||
Minimum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Investment maturity | 91 days | |||||||||||||
Maximum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Investment maturity | 1 year | |||||||||||||
Market Capitalization under $1 billion | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Percentage of Cost | 35.00% | 35.00% | ||||||||||||
Market Capitalization | 1,000,000 | 1,000,000 | ||||||||||||
Market Capitalization over $1 billion | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Percentage of Cost | 25.00% | 25.00% | ||||||||||||
Market Capitalization | $1,000,000 | $1,000,000 | ||||||||||||
Building | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 40 years | |||||||||||||
Equipment | Minimum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 5 years | |||||||||||||
Equipment | Maximum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 7 years | |||||||||||||
Computer Equipment | Minimum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 3 years | |||||||||||||
Computer Equipment | Maximum | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 20 years | |||||||||||||
Leasehold Improvements | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Useful life | 15 years | |||||||||||||
NGHC | ||||||||||||||
Change in Accounting Estimate [Line Items] | ||||||||||||||
Percentage of ownership interests | 13.20% | 13.20% | 13.20% | 13.20% | 15.40% | |||||||||
Percentage of ownership interest | 13.20% | 13.20% | 13.20% |
Investments_Amortized_Cost_Est
Investments (Amortized Cost, Estimated Market Value and Gross Unrealized Appreciation and Depreciation of Available-for-sale Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | $4,221,221 | $3,439,629 |
Gross unrealized gains | 155,441 | 64,005 |
Gross unrealized losses | -42,344 | -76,032 |
Fair value | 4,334,318 | 3,427,602 |
Securities pledged, original or amortized cost | 0 | 316,576 |
Gross unrealized gains, securities pledged | 506 | |
Gross unrealized loss, securities pledged | -5,564 | |
Securities pledged (amortized cost of $0; $316,576) | 0 | 311,518 |
Available-for-sale Securities, Net of Securities Pledged, Amortized Cost | 3,123,053 | |
Available For Sale Securities Gross Unrealized Gain Accumulated In Investments, Net of Unrealized Gain for Securities Pledged | 63,499 | |
Available For Sale Securities Gross Unrealized Loss Accumulated In Investments, Net of Securities Pledged | 70,468 | |
Available-for-sale Securities, Net of Securities Pledged | 3,116,084 | |
Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 3,349 | 1,498 |
Gross unrealized gains | 158 | 82 |
Gross unrealized losses | -1 | -74 |
Fair value | 3,506 | 1,506 |
Common stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 80,726 | 14,512 |
Gross unrealized gains | 4,673 | 1,156 |
Gross unrealized losses | -7,861 | -2,026 |
Fair value | 77,538 | 13,642 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 42,416 | 158,915 |
Gross unrealized gains | 1,558 | 1,196 |
Gross unrealized losses | -104 | -851 |
Fair value | 43,870 | 159,260 |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 12,968 | 10,466 |
Gross unrealized gains | 575 | 107 |
Gross unrealized losses | -5 | -84 |
Fair value | 13,538 | 10,489 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 469,646 | 461,325 |
Gross unrealized gains | 13,950 | 4,781 |
Gross unrealized losses | -1,555 | -19,923 |
Fair value | 482,041 | 446,183 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 106,054 | 160,459 |
Gross unrealized gains | 6,760 | 971 |
Gross unrealized losses | -83 | -1,325 |
Fair value | 112,731 | 160,105 |
Commercial mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 36,964 | 28,970 |
Gross unrealized gains | 1,890 | 0 |
Gross unrealized losses | -169 | -404 |
Fair value | 38,685 | 28,566 |
Agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 954,320 | 694,001 |
Gross unrealized gains | 23,340 | 5,657 |
Gross unrealized losses | -1,878 | -13,918 |
Fair value | 975,782 | 685,740 |
Non-agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 22,071 | 6,737 |
Gross unrealized gains | 696 | 19 |
Gross unrealized losses | -264 | -7 |
Fair value | 22,503 | 6,749 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 709 | 6,119 |
Gross unrealized gains | 2 | 4 |
Gross unrealized losses | -1 | -3 |
Fair value | 710 | 6,120 |
Corporate bonds | Finance | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 1,167,011 | 1,057,542 |
Gross unrealized gains | 60,322 | 41,027 |
Gross unrealized losses | -5,471 | -13,970 |
Fair value | 1,221,862 | 1,084,599 |
Corporate bonds | Industrial | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 1,187,818 | 768,161 |
Gross unrealized gains | 38,317 | 7,695 |
Gross unrealized losses | -23,275 | -21,439 |
Fair value | 1,202,860 | 754,417 |
Corporate bonds | Utilities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Original or amortized cost | 137,169 | 70,924 |
Gross unrealized gains | 3,200 | 1,310 |
Gross unrealized losses | -1,677 | -2,008 |
Fair value | $138,692 | $70,226 |
Investments_Summary_of_Availab
Investments (Summary of Available for Sale Fixed Securities by Contractual Maturity) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total fixed maturities | $4,137,146 | $3,107,043 |
Total fixed maturities | 4,253,274 | 3,100,936 |
Fixed maturities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Due in one year or less | 106,041 | 128,128 |
Due after one through five years | 682,632 | 592,703 |
Due after five through ten years | 1,998,740 | 1,632,115 |
Due after ten years | 335,669 | 334,846 |
Mortgage and asset backed securities | 1,014,064 | 735,827 |
Total fixed maturities | 4,137,146 | 3,423,619 |
Due in one year or less | 105,839 | 128,214 |
Due after one through five years | 704,344 | 603,942 |
Due after five through ten years | 2,062,942 | 1,631,751 |
Due after ten years | 342,468 | 321,372 |
Mortgage and asset backed securities | 1,037,681 | 727,175 |
Total fixed maturities | $4,253,274 | $3,412,454 |
Investments_Other_Than_Tempora
Investments (Other Than Temporary Investment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | $8,039 | $2,869 | $2,965 |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | 2,646 | 2,869 | 2,965 |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Other-than-temporary impairment charges | $5,393 | $0 | $0 |
Investments_Summary_of_Gross_U
Investments (Summary of Gross Unrealized Losses of Fixed-maturities and Equity Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | Contract | Contract |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | $562,070 | $1,953,641 |
Unrealized Losses, Less than 12 Months | -30,525 | -73,288 |
No. of Positions Held, Less than 12 Months | 474 | 1,012 |
Fair Market Value, 12 Months or More | 309,215 | 87,497 |
Unrealized Losses, 12 Months or More | -11,819 | -2,744 |
No. of Positions Held, 12 Months or More | 227 | 22 |
Total Fair Market Value | 871,285 | 2,041,138 |
Total Unrealized Losses | -42,344 | -76,032 |
Common and Preferred stock | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 38,970 | 4,875 |
Unrealized Losses, Less than 12 Months | -7,764 | -2,100 |
No. of Positions Held, Less than 12 Months | 21 | 51 |
Fair Market Value, 12 Months or More | 400 | 0 |
Unrealized Losses, 12 Months or More | -98 | 0 |
No. of Positions Held, 12 Months or More | 2 | 0 |
Total Fair Market Value | 39,370 | 4,875 |
Total Unrealized Losses | -7,862 | -2,100 |
U.S. treasury securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 1,030 | 52,757 |
Unrealized Losses, Less than 12 Months | -54 | -851 |
No. of Positions Held, Less than 12 Months | 7 | 18 |
Fair Market Value, 12 Months or More | 3,219 | 0 |
Unrealized Losses, 12 Months or More | -50 | 0 |
No. of Positions Held, 12 Months or More | 9 | 0 |
Total Fair Market Value | 4,249 | 52,757 |
Total Unrealized Losses | -104 | -851 |
U.S. government agencies | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 1,736 | 4,135 |
Unrealized Losses, Less than 12 Months | -3 | -84 |
No. of Positions Held, Less than 12 Months | 3 | 11 |
Fair Market Value, 12 Months or More | 222 | 0 |
Unrealized Losses, 12 Months or More | -2 | 0 |
No. of Positions Held, 12 Months or More | 4 | |
Total Fair Market Value | 1,958 | 4,135 |
Total Unrealized Losses | -5 | -84 |
Municipal bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 24,695 | 254,219 |
Unrealized Losses, Less than 12 Months | -240 | -17,986 |
No. of Positions Held, Less than 12 Months | 64 | 302 |
Fair Market Value, 12 Months or More | 93,201 | 24,169 |
Unrealized Losses, 12 Months or More | -1,315 | -1,937 |
No. of Positions Held, 12 Months or More | 98 | 9 |
Total Fair Market Value | 117,896 | 278,388 |
Total Unrealized Losses | -1,555 | -19,923 |
Foreign government | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 7,644 | 68,102 |
Unrealized Losses, Less than 12 Months | -83 | -1,324 |
No. of Positions Held, Less than 12 Months | 4 | 16 |
Fair Market Value, 12 Months or More | 0 | 999 |
Unrealized Losses, 12 Months or More | 0 | -1 |
No. of Positions Held, 12 Months or More | 0 | 1 |
Total Fair Market Value | 7,644 | 69,101 |
Total Unrealized Losses | -83 | -1,325 |
Finance | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 192,520 | 500,564 |
Unrealized Losses, Less than 12 Months | -4,297 | -13,402 |
No. of Positions Held, Less than 12 Months | 143 | 182 |
Fair Market Value, 12 Months or More | 66,715 | 58,923 |
Unrealized Losses, 12 Months or More | -1,174 | -568 |
No. of Positions Held, 12 Months or More | 27 | 9 |
Total Fair Market Value | 259,235 | 559,487 |
Total Unrealized Losses | -5,471 | -13,970 |
Industrial | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 236,845 | 500,366 |
Unrealized Losses, Less than 12 Months | -17,230 | -21,203 |
No. of Positions Held, Less than 12 Months | 194 | 263 |
Fair Market Value, 12 Months or More | 60,511 | 3,383 |
Unrealized Losses, 12 Months or More | -6,045 | -236 |
No. of Positions Held, 12 Months or More | 43 | 2 |
Total Fair Market Value | 297,356 | 503,749 |
Total Unrealized Losses | -23,275 | -21,439 |
Utilities | Corporate bonds | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 12,188 | 45,663 |
Unrealized Losses, Less than 12 Months | -490 | -2,008 |
No. of Positions Held, Less than 12 Months | 22 | 21 |
Fair Market Value, 12 Months or More | 13,908 | 0 |
Unrealized Losses, 12 Months or More | -1,187 | 0 |
No. of Positions Held, 12 Months or More | 3 | 0 |
Total Fair Market Value | 26,096 | 45,663 |
Total Unrealized Losses | -1,677 | -2,008 |
Commercial mortgage backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 15 | 28,552 |
Unrealized Losses, Less than 12 Months | 0 | -404 |
No. of Positions Held, Less than 12 Months | 2 | 18 |
Fair Market Value, 12 Months or More | 4,729 | 0 |
Unrealized Losses, 12 Months or More | -169 | 0 |
No. of Positions Held, 12 Months or More | 8 | 0 |
Total Fair Market Value | 4,744 | 28,552 |
Total Unrealized Losses | -169 | -404 |
Agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 41,187 | 492,740 |
Unrealized Losses, Less than 12 Months | -101 | -13,918 |
No. of Positions Held, Less than 12 Months | 10 | 120 |
Fair Market Value, 12 Months or More | 66,172 | 0 |
Unrealized Losses, 12 Months or More | -1,777 | 0 |
No. of Positions Held, 12 Months or More | 29 | 0 |
Total Fair Market Value | 107,359 | 492,740 |
Total Unrealized Losses | -1,878 | -13,918 |
Non-agency backed | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 5,092 | 205 |
Unrealized Losses, Less than 12 Months | -263 | -5 |
No. of Positions Held, Less than 12 Months | 3 | 6 |
Fair Market Value, 12 Months or More | 28 | 23 |
Unrealized Losses, 12 Months or More | -1 | -2 |
No. of Positions Held, 12 Months or More | 2 | 1 |
Total Fair Market Value | 5,120 | 228 |
Total Unrealized Losses | -264 | -7 |
Asset-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Market Value, Less than 12 Months | 148 | 1,463 |
Unrealized Losses, Less than 12 Months | 0 | -3 |
No. of Positions Held, Less than 12 Months | 1 | 4 |
Fair Market Value, 12 Months or More | 110 | 0 |
Unrealized Losses, 12 Months or More | -1 | 0 |
No. of Positions Held, 12 Months or More | 2 | 0 |
Total Fair Market Value | 258 | 1,463 |
Total Unrealized Losses | ($1) | ($3) |
Investments_Unrealized_Gain_an
Investments (Unrealized Gain and Losses) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gain (loss) | $113,097 | ($12,027) | $117,104 |
Deferred income tax benefit (expense) | -39,584 | 4,209 | -40,986 |
Cumulative net unrealized gain (loss), net of deferred income tax as of December 31 | 73,513 | -7,818 | 76,118 |
Increase (decrease) in net unrealized gains, net of deferred income tax | 81,331 | -83,936 | 67,708 |
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gain (loss) | 116,128 | -11,165 | 117,582 |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Total net unrealized gain (loss) | ($3,031) | ($862) | ($478) |
Investments_Trading_Securities
Investments (Trading Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Original or amortized cost | $25,407 | $0 |
Market value | 26,749 | 0 |
Common stock | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Original or amortized cost | 25,407 | |
Gross unrealized gains | 1,614 | |
Gross unrealized losses | 272 | |
Market value | $26,749 |
Investments_Net_Investment_Inc
Investments (Net Investment Income) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $131,793 | $86,711 | $69,087 | ||||||||
Less: Investment expenses and interest expense on securities sold under agreement to repurchase | -192 | -1,892 | -920 | ||||||||
Net investment income | 35,928 | 34,552 | 32,594 | 28,527 | 20,800 | 23,290 | 22,634 | 18,095 | 131,601 | 84,819 | 68,167 |
Fixed maturities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 124,976 | 82,392 | 67,182 | ||||||||
Equity securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 1,346 | 2,119 | 127 | ||||||||
Trading Securities | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | 29 | 0 | |||||||||
Cash and cash equivalents | |||||||||||
Schedule of Investment Income, Reported Amounts, by Category [Line Items] | |||||||||||
Gross Investment Income, Operating | $5,442 | $2,200 | $1,778 |
Investments_Summary_of_Realize
Investments (Summary of Realized Gain and Loss) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | $41,207 | ||
Write-down | -8,039 | -2,869 | -2,965 |
Total of gross loss and write-downs | -24,784 | ||
Net gain and losses, including write-down | 16,423 | ||
Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Write-down | -5,393 | 0 | 0 |
Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Write-down | -2,646 | -2,869 | -2,965 |
Available-for-sale Securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 39,960 | 18,028 | |
Total of gross loss and write-downs | -24,433 | -9,047 | |
Net gain and losses, including write-down | 15,527 | 8,981 | |
Available-for-sale Securities | Fixed maturities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 16,611 | 28,696 | 10,310 |
Gross Losses | -4,946 | -18,066 | -1,066 |
Net Gain and Losses | 11,665 | 10,630 | 9,244 |
Write-down | -5,393 | -2,965 | |
Available-for-sale Securities | Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 14,121 | 11,264 | 7,718 |
Gross Losses | -3,928 | -3,498 | -5,016 |
Net Gain and Losses | 10,193 | 7,766 | 2,702 |
Write-down | -2,646 | -2,869 | |
Trading Securities | Equity securities | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Gross Gains | 10,475 | ||
Gross Losses | -7,871 | ||
Net Gain and Losses | $2,604 |
Investments_Notional_Amounts_o
Investments (Notional Amounts of Interest Rate Swaps by Remaining Maturity) (Details) (Interest Rate Swap, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Interest Rate Swap | |
Schedule of Available-for-sale Securities [Line Items] | |
One Year | $0 |
Two Through Five Years | 70,000 |
Six Through Ten Years | 0 |
After Ten years | 0 |
Total | $70,000 |
Investments_Fair_Values_of_Res
Investments (Fair Values of Restricted Assets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Investments, Debt and Equity Securities [Abstract] | ||
Restricted cash and cash equivalents | $186,225 | $100,439 |
Restricted investments | 734,271 | 978,910 |
Total restricted cash and investments | $920,496 | $1,079,349 |
Investments_Additional_Informa
Investments (Additional Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Derivative | agreements | ||
Investment | Investment | ||
agreements | |||
Investment [Line Items] | |||
Transfers to trading, fair market value | $16,830 | ||
Proceeds from sale of investment in trading securities | 78,974 | ||
Proceeds from the sale of investments in available-for-sale securities | 1,962,558 | 1,681,165 | 953,188 |
Number of securities account for gross unrealized loss | 701 | 1,034 | |
Number of interest rate swaps | 2 | ||
Interest rate swaps liability | 2,033 | 3,054 | |
Fair value of securities sold but not yet purchased | 13,052 | 0 | |
Number of repurchase agreements | 12 | ||
Securities sold under agreements to repurchase, principal amount | 0 | 293,222 | |
Securities sold under agreements to repurchase, interest expense | 283 | 777 | |
Collateral pledged in support of the repurchase agreements | 311,518 | ||
Minimum | |||
Investment [Line Items] | |||
Securities sold under agreements to repurchase, interest rates | 0.12% | ||
Maximum | |||
Investment [Line Items] | |||
Securities sold under agreements to repurchase, interest rates | 0.47% | ||
Securities sold under agreements to repurchase, at contract value | |||
Investment [Line Items] | |||
Securities sold under agreements to repurchase, accrued interest | 0 | ||
Equity securities | |||
Investment [Line Items] | |||
Fair value of securities sold but not yet purchased | 13,052 | ||
Counterparty One | |||
Investment [Line Items] | |||
Number of repurchase agreements | 9 | ||
Securities sold under agreements to repurchase, principal amount | 242,304 | ||
Counterparty Two | |||
Investment [Line Items] | |||
Number of repurchase agreements | 3 | ||
Securities sold under agreements to repurchase, principal amount | $50,918 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Financial Assets and Financial Liabilities on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | $4,720,686 | $3,800,577 |
Fair Value of liabilities | 31,619 | 308,221 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 159,019 | 288,610 |
Fair Value of liabilities | 13,052 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 4,231,078 | 3,253,194 |
Fair Value of liabilities | 2,033 | 296,276 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 330,589 | 258,773 |
Fair Value of liabilities | 16,534 | 11,945 |
U.S. treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 43,870 | 110,345 |
U.S. treasury securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 43,870 | 110,345 |
U.S. treasury securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
U.S. treasury securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 13,538 | 10,489 |
U.S. government agencies | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
U.S. government agencies | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 13,538 | 10,489 |
U.S. government agencies | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Municipal bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 482,041 | 446,183 |
Municipal bonds | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Municipal bonds | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 482,041 | 446,183 |
Municipal bonds | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Foreign government | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 112,731 | 160,105 |
Foreign government | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Foreign government | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 112,731 | 160,105 |
Foreign government | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Commercial mortgage backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 38,685 | 28,566 |
Commercial mortgage backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Commercial mortgage backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 38,685 | 28,566 |
Commercial mortgage backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Agency backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 975,782 | 423,137 |
Agency backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Agency backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 975,782 | 423,137 |
Agency backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Non-agency backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 22,503 | 6,749 |
Non-agency backed | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Non-agency backed | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 22,503 | 6,749 |
Non-agency backed | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Asset-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 710 | 6,120 |
Asset-backed securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Asset-backed securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 710 | 6,120 |
Asset-backed securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 15,148 | |
Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 15,148 | |
Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Short term investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 63,916 | 114,202 |
Short term investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 63,916 | 114,202 |
Short term investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Short term investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Other investments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 31,186 | 25,749 |
Other investments | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Other investments | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Other investments | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 31,186 | 25,749 |
Securities Pledged as Collateral | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 311,518 | |
Securities Pledged as Collateral | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 48,915 | |
Securities Pledged as Collateral | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 262,603 | |
Securities Pledged as Collateral | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Life settlement contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 264,517 | 233,024 |
Life settlement contracts | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Life settlement contracts | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Life settlement contracts | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 264,517 | 233,024 |
Corporate bonds | Finance | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,221,862 | 1,084,599 |
Corporate bonds | Finance | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Corporate bonds | Finance | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,221,862 | 1,084,599 |
Corporate bonds | Finance | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Corporate bonds | Industrial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,202,860 | 754,417 |
Corporate bonds | Industrial | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Corporate bonds | Industrial | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 1,202,860 | 754,417 |
Corporate bonds | Industrial | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Corporate bonds | Utilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 138,692 | 70,226 |
Corporate bonds | Utilities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Corporate bonds | Utilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 138,692 | 70,226 |
Corporate bonds | Utilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | 0 |
Equity securities sold but not yet purchased, market | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 13,052 | |
Equity securities sold but not yet purchased, market | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 13,052 | |
Equity securities sold but not yet purchased, market | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | |
Equity securities sold but not yet purchased, market | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | |
Securities sold under agreements to repurchase, at contract value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 293,222 | |
Securities sold under agreements to repurchase, at contract value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | |
Securities sold under agreements to repurchase, at contract value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 293,222 | |
Securities sold under agreements to repurchase, at contract value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | |
Life settlement contract profit commission | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 16,534 | 11,945 |
Life settlement contract profit commission | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | 0 |
Life settlement contract profit commission | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | 0 |
Life settlement contract profit commission | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 16,534 | 11,945 |
Derivatives | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 2,033 | 3,054 |
Derivatives | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | 0 |
Derivatives | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 2,033 | 3,054 |
Derivatives | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value of liabilities | 0 | 0 |
Available-for-sale Securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 81,044 | |
Available-for-sale Securities | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 24,484 | |
Available-for-sale Securities | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 21,674 | |
Available-for-sale Securities | Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 34,886 | |
Trading Securities | Equity securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 26,749 | |
Trading Securities | Equity securities | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 26,749 | |
Trading Securities | Equity securities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | 0 | |
Trading Securities | Equity securities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value of assets | $0 |
Fair_Value_of_Financial_Instru3
Fair Value of Financial Instruments (Changes in Fair Value of Level 3 Financial Assets And Liabilities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | $246,828 | $193,321 |
Net income (loss) | 59,605 | 48,863 |
Other comprehensive income (loss) | 7,079 | -1,666 |
Purchases and issuances | 87,590 | 29,134 |
Sales and settlements | -72,889 | -26,156 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 314,055 | 246,828 |
Other investments | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 25,749 | 11,144 |
Net income (loss) | 3,084 | 1,813 |
Other comprehensive income (loss) | 0 | -1,666 |
Purchases and issuances | 20,207 | 17,228 |
Sales and settlements | -17,854 | -6,102 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 31,186 | 25,749 |
Equity securities | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 0 | |
Net income (loss) | 0 | |
Other comprehensive income (loss) | 7,079 | |
Purchases and issuances | 41,965 | |
Sales and settlements | 0 | |
Net transfers into (out of) Level 3 | 0 | |
Ending Balance | 34,886 | |
Life settlement contracts | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | 233,024 | 193,927 |
Net income (loss) | 61,110 | 47,245 |
Other comprehensive income (loss) | 0 | 0 |
Purchases and issuances | 25,418 | 11,906 |
Sales and settlements | -55,035 | -20,054 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | 264,517 | 233,024 |
Life settlement contract profit commission | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Beginning Balance | -11,945 | -11,750 |
Net income (loss) | -4,589 | -195 |
Other comprehensive income (loss) | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 0 |
Net transfers into (out of) Level 3 | 0 | 0 |
Ending Balance | ($16,534) | ($11,945) |
Fair_Value_of_Financial_Instru4
Fair Value of Financial Instruments (Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | $59,605 | $48,863 | |
Gain on investment in life settlement contracts net of profit commission | 12,306 | 3,800 | 13,822 |
Life settlement contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | 61,110 | 47,245 | |
Premium paid | 46,367 | 38,933 | |
Other expenses | 2,152 | -4,317 | |
Gain on investment in life settlement contracts net of profit commission | 12,306 | 3,800 | |
Life settlement contract profit commission | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Net income (loss) | ($4,589) | ($195) |
Fair_Value_of_Financial_Instru5
Fair Value of Financial Instruments (Portfolio of Life Insurance Policies) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Assets, Fair Value Disclosure [Abstract] | ||
Average age of insured | 81 years 1 month 6 days | 80 years 1 month 6 days |
Average life expectancy, months | 121 months | 131 months |
Average face amount per policy | $6,624 | $6,611 |
Fair value discount rate | 7.50% | |
Internal rate of return | 14.00% | 14.20% |
Fair_Value_of_Financial_Instru6
Fair Value of Financial Instruments (Increase or (Decrease) in Carrying Value of Investment in Life Insurance Policies) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value Disclosures [Abstract] | ||
Life expectancy Plus 4 Months | ($34,686) | ($29,537) |
Life expectancy Minus 4 Months | 36,486 | 31,313 |
Discount Plus 1% | -22,705 | -20,055 |
Discount Minus 1% | $25,456 | $22,605 |
Fair_Value_of_Financial_Instru7
Fair Value of Financial Instruments (Additional Information) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Feb. 28, 2014 | Jan. 31, 2014 | Aug. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Percentage of investments in portfolio | 0.60% | |||||
Internal rate of return | 14.00% | 14.20% | ||||
Subordinate Debenture | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value | 74,690 | |||||
NGHC | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Percentage of ownership interests | 13.20% | 13.20% | 13.20% | 15.40% | ||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Internal rate of return | 12.50% | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Internal rate of return | 17.50% | |||||
6.125% Notes due 2023 | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 6.13% | 6.13% | ||||
Fair value | 258,750 | |||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 5.50% | |||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value | 146,675 | |||||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | Convertible Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Debt instrument, stated interest rate (percentage) | 2.75% | |||||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | Senior Notes | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Fair value | 210,831 | |||||
Reported Value Measurement [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investments, fair value disclosure | 119,712 | |||||
Estimate of Fair Value Measurement [Member] | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Equity method investments, fair value disclosure | 228,818 |
Acquisitions_Additional_Inform
Acquisitions (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2014 | Jan. 03, 2014 | 3-May-13 | Apr. 19, 2013 | Feb. 28, 2013 | Dec. 23, 2013 | 13-May-13 |
employee | employee | State | ||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Amortization of Intangible Assets | $1,612 | |||||||||||||||||
Earned premium | 908,163 | 914,413 | 874,937 | 829,051 | 707,562 | 613,895 | 536,539 | 407,994 | 3,526,564 | 2,265,990 | 1,418,852 | |||||||
Acquisition gain | 0 | 48,715 | 0 | |||||||||||||||
Goodwill | 352,685 | 373,591 | 352,685 | 373,591 | 326,646 | |||||||||||||
Revenues | 4,084,331 | 2,697,895 | 1,668,174 | |||||||||||||||
Number of employees | 44 | 44 | ||||||||||||||||
Net written premium | 3,956,618 | 2,565,673 | 1,648,037 | |||||||||||||||
Service, fee and other revenues | 409,743 | 331,559 | 172,174 | |||||||||||||||
Investments in life settlements and cash value loans | 264,517 | 233,024 | 264,517 | 233,024 | ||||||||||||||
Gain on investment in life settlement contracts net of profit commission | 12,306 | 3,800 | 13,822 | |||||||||||||||
Minimum | Customer Relationships | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Useful life | 8 years | 8 years | ||||||||||||||||
Minimum | Renewal Rights | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Useful life | 7 years | 7 years | ||||||||||||||||
Useful life of intangible | 5 years | |||||||||||||||||
Maximum | Customer Relationships | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Useful life | 18 years | 10 years | ||||||||||||||||
Maximum | Renewal Rights | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Useful life | 17 years | 17 years | ||||||||||||||||
Useful life of intangible | 10 years | |||||||||||||||||
Comp Options Insurance Company, Inc. | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 34,291 | |||||||||||||||||
Deferred tax liability | 1,632 | |||||||||||||||||
Net written premium | 18,653 | |||||||||||||||||
Service, fee and other revenues | 951 | |||||||||||||||||
Insco Dico Group | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 88,700 | |||||||||||||||||
Number of states in which entity operates | 50 | |||||||||||||||||
Deferred tax liability | 2,657 | |||||||||||||||||
Net written premium | 55,511 | |||||||||||||||||
Service, fee and other revenues | 3,743 | |||||||||||||||||
Llyods Property and Casualty Insurance [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Stamp capacity | 330,000 | |||||||||||||||||
Llyods Life Insurance [Member] | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Stamp capacity | 16,500 | |||||||||||||||||
AMTCS Holdings, Inc | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 40,000 | |||||||||||||||||
Goodwill | 17,327 | |||||||||||||||||
Useful life | 12 years | |||||||||||||||||
Deferred tax liability | 12,145 | |||||||||||||||||
Assigned to intangible assets | 34,700 | |||||||||||||||||
Service, fee and other revenues | 58,360 | 44,540 | ||||||||||||||||
Sequoia Insurance Company | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 60,000 | |||||||||||||||||
Accrued loss reserves | 7,448 | 7,448 | ||||||||||||||||
Acquisition gain | 5,231 | 5,231 | ||||||||||||||||
Deferred tax liability | 4,147 | |||||||||||||||||
Assigned to intangible assets | 11,848 | |||||||||||||||||
Net written premium | 68,262 | 79,666 | ||||||||||||||||
Car Care Plan (Holding) Limited | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 72,412 | |||||||||||||||||
Acquisition gain | 25,532 | |||||||||||||||||
Deferred tax liability | 6,215 | |||||||||||||||||
Assigned to intangible assets | 34,337 | |||||||||||||||||
Net written premium | 110,769 | 98,865 | ||||||||||||||||
Service, fee and other revenues | 42,435 | 31,568 | ||||||||||||||||
Car Care Plan (Holding) Limited | Customer Relationships | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Useful life of intangible | 15 years | |||||||||||||||||
Sagicor Europe Limited | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 93,113 | |||||||||||||||||
Net written premium | 322,817 | |||||||||||||||||
MIHC | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Cash paid | 48,500 | |||||||||||||||||
Cash paid | 14,500 | |||||||||||||||||
Accrued loss reserves | 4,531 | 4,531 | ||||||||||||||||
Acquisition gain | 17,951 | |||||||||||||||||
Deferred tax liability | 2,146 | |||||||||||||||||
Assigned to intangible assets | 6,132 | |||||||||||||||||
Net written premium | 58,096 | 32,144 | ||||||||||||||||
Small Commercial Business | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Goodwill | 140,576 | 116,272 | 140,576 | 116,272 | 116,272 | |||||||||||||
Parent | ||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||
Acquisition gain | 0 | 23,183 | 0 | |||||||||||||||
Revenues | $540,739 | $343,134 | $218,362 |
Acquisitions_Purchase_Price_Al
Acquisitions - Purchase Price Allocation (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | 1 Months Ended | 3 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Oct. 01, 2014 | Jan. 03, 2014 | Dec. 23, 2013 | 13-May-13 | Apr. 19, 2013 | Dec. 31, 2014 | Feb. 28, 2013 |
Business Acquisition [Line Items] | ||||||||||
Acquisition gain | $0 | $48,715 | $0 | |||||||
Comp Options Insurance Company, Inc. | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 80,051 | |||||||||
Premium receivable | 33,530 | |||||||||
Other assets | 6,642 | |||||||||
Deferred tax asset | 5,024 | |||||||||
Goodwill and intangible assets | 17,353 | |||||||||
Total assets | 142,600 | |||||||||
Loss and loss expense reserves | 34,364 | |||||||||
Unearned premium | 55,752 | |||||||||
Accrued expenses and other current liabilities | 16,561 | |||||||||
Deferred tax liability | 1,632 | |||||||||
Total liabilities | 108,309 | |||||||||
Cash paid | 34,291 | |||||||||
Insco Dico Group | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 130,031 | |||||||||
Premium receivable | 8,684 | |||||||||
Reinsurance recoverables | 5,799 | |||||||||
Other assets | 1,783 | |||||||||
Deferred tax asset | 3,104 | |||||||||
Property and equipment | 1,190 | |||||||||
Goodwill and intangible assets | 17,765 | |||||||||
Total assets | 168,356 | |||||||||
Loss and loss expense reserves | 25,210 | |||||||||
Unearned premium | 25,715 | |||||||||
Accrued expenses and other current liabilities | 10,210 | |||||||||
Deferred tax liability | 2,657 | |||||||||
Notes payable | 10,000 | |||||||||
Funds held for policyholders | 5,864 | |||||||||
Total liabilities | 79,656 | |||||||||
Cash paid | 88,700 | |||||||||
Sagicor Europe Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 429,476 | |||||||||
Prepaid insurance | 122,673 | |||||||||
Premium receivable | 89,801 | |||||||||
Other assets | 64,981 | |||||||||
Deferred tax asset | 29,916 | |||||||||
Property and equipment | 5,010 | |||||||||
Goodwill and intangible assets | 33,539 | |||||||||
Total assets | 775,396 | |||||||||
Loss and loss expense reserves | 496,836 | |||||||||
Unearned premium | 113,182 | |||||||||
Accrued expenses and other current liabilities | 55,950 | |||||||||
Ceded reinsurance premiums payable | 16,315 | |||||||||
Total liabilities | 682,283 | |||||||||
Cash paid | 93,113 | |||||||||
MIHC | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 134,780 | |||||||||
Premium receivable | 23,085 | |||||||||
Other assets | 43,714 | |||||||||
Deferred tax asset | 5,358 | |||||||||
Property and equipment | 2,684 | |||||||||
Intangible assets | 6,132 | |||||||||
Total assets | 215,753 | |||||||||
Loss and loss expense reserves | 89,267 | |||||||||
Unearned premium | 27,760 | |||||||||
Accrued expenses and other current liabilities | 23,629 | |||||||||
Deferred tax liability | 2,146 | |||||||||
Notes payable | 6,500 | |||||||||
Total liabilities | 149,302 | |||||||||
Cash paid | 14,500 | |||||||||
Cash paid | 48,500 | |||||||||
Acquisition gain | 17,951 | |||||||||
Sequoia Insurance Company | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 215,473 | |||||||||
Premium receivable | 32,870 | |||||||||
Reinsurance recoverables | 43,793 | |||||||||
Other assets | 4,014 | |||||||||
Deferred tax asset | 1,242 | |||||||||
Property and equipment | 1,022 | |||||||||
Intangible assets | 11,848 | |||||||||
Total assets | 310,262 | |||||||||
Loss and loss expense reserves | 165,487 | |||||||||
Unearned premium | 59,773 | |||||||||
Accrued expenses and other current liabilities | 15,624 | |||||||||
Deferred tax liability | 4,147 | |||||||||
Total liabilities | 245,031 | |||||||||
Cash paid | 60,000 | |||||||||
Acquisition gain | 5,231 | 5,231 | ||||||||
Car Care Plan (Holding) Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash and investments | 253,257 | |||||||||
Premium receivable | 26,001 | |||||||||
Reinsurance recoverables | 12,186 | |||||||||
Other assets | 2,979 | |||||||||
Property and equipment | 589 | |||||||||
Intangible assets | 34,337 | |||||||||
Total assets | 329,349 | |||||||||
Loss and loss expense reserves | 9,703 | |||||||||
Unearned premium | 131,494 | |||||||||
Accrued expenses and other current liabilities | 83,993 | |||||||||
Deferred tax liability | 6,215 | |||||||||
Total liabilities | 231,405 | |||||||||
Cash paid | 72,412 | |||||||||
Acquisition gain | $25,532 |
Acquisitions_Mutual_Insurance_
Acquisitions (Mutual Insurance) (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 13-May-13 |
Business Acquisition [Line Items] | ||||
Proceeds from issuance of common stock | ($59,155) | $472 | $0 | |
Acquisition gain | 0 | 48,715 | 0 | |
Net written premium | 3,956,618 | 2,565,673 | 1,648,037 | |
Revenues | 4,084,331 | 2,697,895 | 1,668,174 | |
MIHC | ||||
Business Acquisition [Line Items] | ||||
Proceeds from issuance of common stock | 472 | 472 | ||
Shares issued during the period, shares | 18,000 | |||
Discount on market price of common stock | 20.00% | |||
Discount on market price of common stock, value | 118 | 118 | ||
Stock purchased | 8,000 | |||
Cash paid | 48,500 | |||
Cash contribution retained | 40,618 | |||
Consideration transferred, liabilities incurred | 6,500 | |||
Purchase price | 14,500 | |||
Accrued loss reserves | 4,531 | |||
Acquisition gain | 17,951 | |||
Net written premium | 58,096 | 32,144 | ||
First Nonprofit Foundation | MIHC | ||||
Business Acquisition [Line Items] | ||||
Contribution to nonprofit organization | $7,882 |
Acquisitions_AHL_Details
Acquisitions (AHL) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Nov. 30, 2013 |
Business Acquisition [Line Items] | |||||
Equalization reserves | $94,215 | $186,576 | $186,576 | ||
Goodwill | 352,685 | 373,591 | 326,646 | 373,591 | |
AmTrust Holdings Luxembourg | |||||
Business Acquisition [Line Items] | |||||
Unutilized equalization reserve | 314,050 | ||||
Equalization reserves | 94,215 | ||||
Increase (decrease) in overall expenses | 30,379 | 214 | 9,274 | ||
AmTrust Holdings Luxembourg | Atlas COPCO Reinsurance S.A | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 80,700 | ||||
Cash upon acquisition | 89,100 | 89,100 | |||
Goodwill | 16,900 | 16,900 | |||
Deferred tax liability | 25,300 | 25,300 | |||
AmTrust Holdings Luxembourg | Re'A FIN S.A | |||||
Business Acquisition [Line Items] | |||||
Purchase price | 93,400 | ||||
Cash upon acquisition | 102,800 | ||||
Goodwill | 18,700 | ||||
Deferred tax liability | $28,100 |
Investment_in_Life_Settlements2
Investment in Life Settlements (Additional Information) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Aug. 31, 2011 |
Contract | Contract | |||
policy | policy | |||
Schedule of Cost-method Investments [Line Items] | ||||
Investments in life settlements and cash value loans | $264,517 | $233,024 | ||
Gain on investment in life settlement contracts net of profit commission | 12,306 | 3,800 | 13,822 | |
Number of life settlement contracts | 274 | 271 | ||
Face value of life settlement contracts | 1,738,209 | 1,762,409 | ||
Tiger Capital | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Number of premium finance loans | 2 | |||
Face value of premium finance loans | 0 | |||
NGHC | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Percentage of ownership interest | 13.20% | 13.20% | ||
AMTCH | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Percentage of ownership interest | 50.00% | |||
Tiger Capital | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Percentage of ownership interest | 50.00% | |||
AMT Alpha | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Percentage of ownership interest | 50.00% | |||
LSC | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Profits and losses of investment in life insurance policies and premium finance loans | 56.60% | |||
Capital contribution for LSC | 36,115 | 70,780 | ||
LSC | Parent | ||||
Schedule of Cost-method Investments [Line Items] | ||||
Capital contribution for LSC | $17,907 | $35,380 |
Investment_in_Life_Settlements3
Investment in Life Settlements (Investments in Life Settlements) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
policy | policy | |
Contract | Contract | |
Number of Life Settlement Contracts | ||
Expected Maturity Term in Years, 0-1 | 0 | 0 |
Expected Maturity Term in Years, 1-2 | 0 | 0 |
Expected Maturity Term in Years, 2-3 | 8 | 1 |
Expected Maturity Term in Years, 3-4 | 5 | 13 |
Expected Maturity Term in Years, 4-5 | 7 | 2 |
Thereafter | 254 | 255 |
Total | 274 | 271 |
Fair Value | ||
Expected Maturity Term in Years, 0-1 | $0 | $0 |
Expected Maturity Term in Years, 1-2 | 0 | 0 |
Expected Maturity Term in Years, 2-3 | 43,593 | 2,726 |
Expected Maturity Term in Years, 3-4 | 10,081 | 53,767 |
Expected Maturity Term in Years, 4-5 | 14,335 | 5,622 |
Thereafter | 196,508 | 170,909 |
Total | 264,517 | 233,024 |
Face Value | ||
Expected Maturity Term in Years, 0-1 | 0 | 0 |
Expected Maturity Term in Years, 1-2 | 0 | 0 |
Expected Maturity Term in Years, 2-3 | 70,500 | 5,000 |
Expected Maturity Term in Years, 3-4 | 22,500 | 103,000 |
Expected Maturity Term in Years, 4-5 | 49,000 | 13,000 |
Thereafter | 1,596,209 | 1,641,409 |
Total | 1,738,209 | 1,762,409 |
Life settlement contracts, number of contracts with fair value | 218 | 191 |
Number of policies with a negative value from discounted cash flow model | 56 | 80 |
Premiums paid for the year ended | 5,963 | 9,371 |
Death benefit received | $4,950 | $3,012 |
Investment_in_Life_Settlements4
Investment in Life Settlements (Premiums to be Paid) (Details) (Premiums Due On Life Settlement Contracts, USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Premiums Due On Life Settlement Contracts | |
Life Insurance Premiums and Related Investment Income [Line Items] | |
2015 | $40,961 |
2016 | 54,208 |
2017 | 52,291 |
2018 | 40,117 |
2019 | 39,777 |
Thereafter | 552,579 |
Total | $779,933 |
Deferred_Policy_Acquisition_Co2
Deferred Policy Acquisition Costs (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Movement Analysis of Deferred Policy Acquisition Costs [Roll Forward] | |||
Beginning balance | $468,404 | $349,126 | $280,991 |
Acquisition costs deferred | 698,689 | 486,566 | 311,022 |
Amortization | -538,710 | -367,288 | -242,887 |
Ending balance | $628,383 | $468,404 | $349,126 |
Intangible_Assets_and_Goodwill2
Intangible Assets and Goodwill (Schedule of Finite lived and Indefinite-lived Intangible Assets, Including Goodwill) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 352,685 | 373,591 | $326,646 |
Finite-lived intangible assets, Accumulated Amortization | 106,168 | 80,381 | |
Indefinite-lived and finite-lived intangibles, including goodwill, Gross | 773,849 | 745,774 | |
Goodwill and intangible assets, Net Value | 667,681 | 665,393 | |
Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 6,327 | 6,460 | |
Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 25,055 | 21,540 | |
Use rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 38,507 | ||
Renewal Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 62,367 | 30,880 | |
Finite-lived intangible assets, Accumulated Amortization | 16,732 | 11,438 | |
Finite-lived intangible assets, Net Value | 45,635 | 19,442 | |
Renewal Rights | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 7 years | 7 years | |
Renewal Rights | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 17 years | 17 years | |
Noncompete Agreements | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 7,756 | ||
Finite-lived intangible assets, Accumulated Amortization | 7,692 | ||
Finite-lived intangible assets, Net Value | 64 | ||
Noncompete Agreements | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Noncompete Agreements | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 9 years | ||
Distribution Networks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 115,480 | 100,163 | |
Finite-lived intangible assets, Accumulated Amortization | 36,009 | 28,136 | |
Finite-lived intangible assets, Net Value | 79,471 | 72,027 | |
Distribution Networks | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | 10 years | |
Distribution Networks | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 20 years | 20 years | |
Software | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 3,547 | 2,266 | |
Finite-lived intangible assets, Accumulated Amortization | 2,101 | 2,076 | |
Finite-lived intangible assets, Net Value | 1,446 | 190 | |
Useful life | 20 years | 20 years | |
Software | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 3 years | ||
Customer Relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 132,744 | 132,266 | |
Finite-lived intangible assets, Accumulated Amortization | 31,807 | 18,215 | |
Finite-lived intangible assets, Net Value | 100,937 | 114,051 | |
Customer Relationships | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 8 years | 8 years | |
Customer Relationships | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 18 years | 10 years | |
Trademarks | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 5,220 | 5,001 | |
Finite-lived intangible assets, Accumulated Amortization | 5,132 | 4,751 | |
Finite-lived intangible assets, Net Value | 88 | 250 | |
Trademarks | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 2 years | ||
Trademarks | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 15 years | 15 years | |
Licenses | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 12,608 | 12,608 | |
Finite-lived intangible assets, Accumulated Amortization | 6,151 | 3,702 | |
Finite-lived intangible assets, Net Value | 6,457 | 8,906 | |
Licenses | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 5 years | 5 years | |
Licenses | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 50 years | 50 years | |
Use rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 41,468 | ||
Finite-lived intangible assets, Accumulated Amortization | 0 | ||
Finite-lived intangible assets, Net Value | 41,468 | ||
Other | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, Gross Balance | 16,348 | 14,736 | |
Finite-lived intangible assets, Accumulated Amortization | 8,236 | 4,371 | |
Finite-lived intangible assets, Net Value | 8,112 | 10,365 | |
Other | Minimum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 4 years | 4 years | |
Other | Maximum | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Useful life | 10 years | 10 years |
Intangible_Assets_and_Goodwill3
Intangible Assets and Goodwill (Goodwill Rollforward) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Goodwill [Roll Forward] | |||
Beginning balance | $373,591 | $326,646 | |
Goodwill additions | 42,921 | 57,053 | |
Impairment of goodwill | -62,898 | -10,226 | -16,389 |
Foreign currecy translation | -929 | 118 | |
Ending balance | 352,685 | 373,591 | 326,646 |
Small Commercial Business | |||
Goodwill [Roll Forward] | |||
Beginning balance | 116,272 | 116,272 | |
Goodwill additions | 24,304 | 0 | |
Impairment of goodwill | 0 | ||
Foreign currecy translation | 0 | 0 | |
Ending balance | 140,576 | 116,272 | |
Specialty Risk and Extended Warranty | |||
Goodwill [Roll Forward] | |||
Beginning balance | 239,378 | 194,554 | |
Goodwill additions | 18,617 | 54,932 | |
Impairment of goodwill | -62,898 | -10,226 | -16,389 |
Foreign currecy translation | -929 | 118 | |
Ending balance | 194,168 | 239,378 | 194,554 |
Specialty Program | |||
Goodwill [Roll Forward] | |||
Beginning balance | 17,941 | 15,820 | |
Goodwill additions | 2,121 | ||
Impairment of goodwill | 0 | ||
Foreign currecy translation | 0 | 0 | |
Ending balance | $17,941 | $17,941 |
Intangible_Assets_and_Goodwill4
Intangible Assets and Goodwill (Amortization Expense) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2015 | $38,727 |
2016 | 35,972 |
2017 | 30,336 |
2018 | 25,249 |
2019 | $23,501 |
Intangible_Assets_and_Goodwill5
Intangible Assets and Goodwill (Impairment Charge and Amortization Expense) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $33,543 | $31,667 | $17,169 |
Renewal Rights | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Percentage used for amortization of renewal rights | 125.00% |
Intangible_Assets_and_Goodwill6
Intangible Assets and Goodwill (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | $352,685 | $373,591 | $326,646 |
Impairment of goodwill | 62,898 | 10,226 | 16,389 |
Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 194,168 | 239,378 | 194,554 |
Impairment of goodwill | 62,898 | 10,226 | 16,389 |
LUXEMBOURG | Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Goodwill | 121,761 | 96,866 | |
Domestic | Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | 61,512 | ||
Europe | Specialty Risk and Extended Warranty | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | $1,386 |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $246,426 | $167,000 | |
Less: Accumulated depreciation and amortization | -92,251 | -62,701 | |
Property and equipment, net | 154,175 | 104,299 | |
Depreciation expense | 29,550 | 21,451 | 13,221 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 7,593 | 7,593 | |
Building | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 25,478 | 23,284 | |
Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 92,211 | 65,699 | |
Computer Equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 41,924 | 27,575 | |
Other equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 53,529 | 19,881 | |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $25,691 | $22,968 |
Liability_for_Unpaid_Loss_and_2
Liability for Unpaid Loss and LAE (Reconciliation of the beginning and ending balances for unpaid losses and LAE) (Details) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||||
Unpaid losses and LAE, gross of related reinsurance recoverables at beginning of year | $4,368,234 | $2,426,400 | $1,879,175 | |
Less: Reinsurance recoverables at beginning of year | 2,149,444 | 1,739,689 | 1,180,212 | 972,392 |
Net balance, beginning of year | 2,628,545 | 1,246,188 | 906,783 | |
Incurred related to: | ||||
Current year | 2,324,062 | 1,486,418 | 909,818 | |
Prior year | 18,557 | 30,943 | 12,857 | |
Total incurred losses during the year | 2,342,619 | 1,517,361 | 922,675 | |
Paid losses and LAE related to: | ||||
Current year | -886,724 | -617,539 | -406,238 | |
Prior year | -554,495 | -335,621 | -285,479 | |
Total payments for losses and LAE | -1,441,219 | -953,160 | -691,717 | |
Commuted loss reserve | 0 | 0 | 91,529 | |
Acquired outstanding loss and loss adjustment reserve | 71,755 | 807,592 | 13,137 | |
Effect of foreign exchange rates | -86,939 | 10,564 | 3,781 | |
Net balance, end of the year | 3,514,761 | 2,628,545 | 1,246,188 | |
Plus: Reinsurance recoverables at end of year | 2,149,444 | 1,739,689 | 1,180,212 | 972,392 |
Unpaid losses and LAE, gross of related reinsurance recoverables at end of year | $5,664,205 | $4,368,234 | $2,426,400 | |
Unpaid losses and LAE related to IBNR, percentage | 49.60% | 42.40% | 34.50% |
Accrued_Expenses_and_Other_Lia2
Accrued Expenses and Other Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts Payable and Accrued Liabilities [Abstract] | ||
Premium taxes, assessments and surchage payable | $171,512 | $173,274 |
Accounts and commissions payable | 157,232 | 100,780 |
Deferred warranty revenue | 138,592 | 84,230 |
Redeemable contractual obligations | 111,748 | 132,608 |
Income tax payable | 100,410 | 9,181 |
Other accrued expenses and liabilities | 116,383 | 172,502 |
Other Liabilities | $795,877 | $672,575 |
Debt_Borrowings_Details
Debt (Borrowings) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Aug. 31, 2013 |
In Thousands, unless otherwise specified | |||
Debt Instrument [Line Items] | |||
Revolving credit facility | $120,000 | $0 | |
Convertible senior notes | 214,424 | 164,218 | |
6.125% Notes due 2023 | 250,000 | 250,000 | |
Subordinated debentures | 123,714 | 123,714 | |
Secured loan agreements | 35,233 | 7,742 | |
Promissory notes | 14,500 | 14,500 | |
Debt, Long-term and Short-term, Combined Amount, Total | 757,871 | 560,174 | |
5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | 56,745 | 164,218 | |
2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | 157,679 | 0 | |
Senior Notes | 6.125% Notes due 2023 | |||
Debt Instrument [Line Items] | |||
Per annum interest rate of notes (percentage) | 6.13% | 6.13% | |
Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | |||
Debt Instrument [Line Items] | |||
Per annum interest rate of notes (percentage) | 5.50% | ||
Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | |||
Debt Instrument [Line Items] | |||
Convertible senior notes | $157,457 | ||
Per annum interest rate of notes (percentage) | 2.75% |
Debt_Aggregate_Scheduled_Matur
Debt (Aggregate Scheduled Maturities of Borrowings) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | |
2015 | $168,689 |
2016 | 7,186 |
2017 | 7,377 |
2018 | 9,400 |
2019 | 4,269 |
Thereafter | $560,950 |
Debt_Aggregate_Scheduled_Matur1
Debt (Aggregate Scheduled Maturities of Borrowings Footnotes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ||
Unamortized original issue discount | $64,619 | $35,782 |
Debt_Amounts_Recorded_for_Note
Debt (Amounts Recorded for Notes) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Outstanding principal | $279,043 | $200,000 |
Unamortized OID | -64,619 | -35,782 |
Liability component | 214,424 | 164,218 |
5.5% Convertible senior notes due 2021 (the 2021 Notes) | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 68,119 | 200,000 |
Unamortized OID | -11,374 | -35,782 |
Liability component | 56,745 | 164,218 |
2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||
Debt Instrument [Line Items] | ||
Outstanding principal | 210,924 | 0 |
Unamortized OID | -53,245 | 0 |
Liability component | $157,679 | $0 |
Debt_Trust_Preferred_Securitie
Debt (Trust Preferred Securities) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ||
Aggregate Liquidation Amount of Trust Preferred Securities | $120,000 | |
Aggregate Liquidation Amount of Common Securities | 3,714 | |
Aggregate Principal Amount of Notes | 123,714 | 123,714 |
AmTrust Capital Financing Trust I | ||
Debt Instrument [Line Items] | ||
Aggregate Liquidation Amount of Trust Preferred Securities | 25,000 | |
Aggregate Liquidation Amount of Common Securities | 774 | |
Aggregate Principal Amount of Notes | 25,774 | |
Stated Maturity of Notes | 17-Mar-35 | |
Per annum interest rate of notes (percentage) | 827.50% | |
AmTrust Capital Financing Trust II | ||
Debt Instrument [Line Items] | ||
Aggregate Liquidation Amount of Trust Preferred Securities | 25,000 | |
Aggregate Liquidation Amount of Common Securities | 774 | |
Aggregate Principal Amount of Notes | 25,774 | |
Stated Maturity of Notes | 15-Jun-35 | |
Per annum interest rate of notes (percentage) | 771.00% | |
AmTrust Capital Financing Trust III | ||
Debt Instrument [Line Items] | ||
Aggregate Liquidation Amount of Trust Preferred Securities | 30,000 | |
Aggregate Liquidation Amount of Common Securities | 928 | |
Aggregate Principal Amount of Notes | 30,928 | |
Stated Maturity of Notes | 15-Sep-36 | |
Per annum interest rate of notes (percentage) | 354.06% | |
AmTrust Capital Financing Trust IV | ||
Debt Instrument [Line Items] | ||
Aggregate Liquidation Amount of Trust Preferred Securities | 40,000 | |
Aggregate Liquidation Amount of Common Securities | 1,238 | |
Aggregate Principal Amount of Notes | $41,238 | |
Stated Maturity of Notes | 15-Mar-37 | |
Per annum interest rate of notes (percentage) | 324.06% |
Debt_Trust_Preferred_Securitie1
Debt (Trust Preferred Securities Footnotes) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
After tenth anniversary in 2015 | Three Month LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.40% |
After fifth anniversary in 2011 | LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.30% |
After fifth anniversary in 2012 | LIBOR | |
Debt Instrument [Line Items] | |
Debt instrument interest rate, margin | 3.00% |
Debt_Revolving_Credit_Agreemen
Debt (Revolving Credit Agreement) (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 12, 2014 | Sep. 11, 2014 | |
Line of Credit Facility [Line Items] | |||||
Term of debt instrument | 5 years | ||||
Revolving credit facility | $120,000,000 | $0 | |||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest expense | 1,662,000 | 1,752,000 | 1,884,000 | ||
LIBOR | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, interest rate (percentage) | 4.10% | ||||
Sagicor Europe Limited | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.15% | ||||
Line of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit, outstanding amount | 97,346,000 | ||||
Line of Credit | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Term of debt instrument | 5 years | ||||
Line of credit, maximum borrowing capacity | 350,000,000 | ||||
Credit agreement, remaining borrowing capacity | 132,654,000 | 200,000,000 | |||
Deferred finance costs | 967,000 | ||||
Revolving credit facility | 120,000,000 | ||||
Commitment fee percentage | 0.18% | ||||
Effective interest rate, minimum, percentage | 1.56% | ||||
Effective interest rate, maximum, percentage | 3.63% | ||||
Line of Credit | Letter of Credit | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit, maximum borrowing capacity | 175,000,000 | ||||
Additional borrowing capacity | 150,000,000 | ||||
Credit agreement, remaining borrowing capacity | $77,654,000 | ||||
Line of Credit | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Line of Credit | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.15% | ||||
Line of Credit | Federal Funds Effective Swap Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 0.50% | ||||
Line of Credit | LIBOR | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 1.63% | ||||
Line of Credit | LIBOR | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 1.13% | ||||
Line of Credit | One Month London Interbank Offered Rate | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 1.00% | ||||
Line of Credit | Base Rate | Maximum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 0.63% | ||||
Line of Credit | Base Rate | Minimum | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Interest rate, variable, percentage | 0.13% |
Debt_Convertible_Senior_Notes_
Debt (Convertible Senior Notes) (Details) (USD $) | 12 Months Ended | 2 Months Ended | 3 Months Ended | 1 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jan. 31, 2012 | Dec. 31, 2014 | Aug. 31, 2013 | |
day | ||||||
Debt Instrument [Line Items] | ||||||
Common stock, par value (per share) | $0.01 | $0.01 | $0.01 | |||
Outstanding principal | $279,043,000 | $200,000,000 | $279,043,000 | |||
Convertible senior notes | 214,424,000 | 164,218,000 | 214,424,000 | |||
Loss on extinguishment of debt | -9,831,000 | 0 | 0 | |||
Unamortized original issue discount | 64,619,000 | 35,782,000 | 64,619,000 | |||
Debt issuance cost | 2,605,000 | |||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 68,119,000 | 200,000,000 | 68,119,000 | |||
Convertible senior notes | 56,745,000 | 164,218,000 | 56,745,000 | |||
Unamortized original issue discount | 11,374,000 | 35,782,000 | 11,374,000 | |||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding principal | 210,924,000 | 0 | 210,924,000 | |||
Convertible senior notes | 157,679,000 | 0 | 157,679,000 | |||
Unamortized original issue discount | 53,245,000 | 0 | 53,245,000 | |||
Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Convertible senior notes effective interest rate | 7.46% | 7.46% | ||||
Equity component, net of tax | 34,693,000 | 34,693,000 | ||||
Debt issuance cost | 503,000 | |||||
Convertible Senior Notes | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 200,000,000 | |||||
Common stock, par value (per share) | $0.01 | $0.01 | ||||
Debt conversion earlier date | 15-Sep-21 | |||||
Threshold percentage of stock price trigger | 130.00% | |||||
Threshold consecutive trading days | 30 years | |||||
Threshold consecutive trading days | 20 | |||||
Principal amount per note used in conversion rate | 1,000 | |||||
Initial conversion price of per share of Common Stock | $25.91 | $25.91 | ||||
Conversion rate for conversion of convertible senior notes | 38.5985 | |||||
Notes submitted for conversion, amount | 50,105,000 | |||||
Per annum interest rate of notes (percentage) | 5.50% | 5.50% | ||||
Deferred origination costs relating to the liability component | 4,750,000 | 4,750,000 | ||||
Convertible senior notes effective interest rate | 8.57% | 8.57% | ||||
Transaction costs associated with the equity component | 1,250,000 | |||||
Interest expense | 13,933,000 | 14,476,000 | 14,031,000 | |||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||
Unamortized OID | 41,679,000 | 41,679,000 | ||||
Unamortized original issue discount | 2,957,000 | 2,957,000 | ||||
Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 158,257,000 | 158,257,000 | ||||
Conversion rate for conversion of convertible senior notes | 2,731,727 | |||||
Outstanding principal | 210,831,000 | 210,831,000 | ||||
Per annum interest rate of notes (percentage) | 2.75% | 2.75% | ||||
Issuance of additional convertible senior notes | 76,000,000 | |||||
Percentage of face amount | 0.9 | 0.9 | ||||
Rate of accretion, percentage | 0.06 | 0.06 | ||||
Contingent interest, percentage of principal amount | 130.00% | |||||
Contingent payment of principal or interest, amount | 1,000 | |||||
Average trading price, percentage | 0.25% | |||||
Principal amount at maturity | 1,000 | 1,000 | ||||
Issue price for indenture at maturity | 900 | 900 | ||||
Convertible senior notes | 157,457,000 | 157,457,000 | ||||
Unamortized OID | 53,374,000 | 53,374,000 | ||||
Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument, face amount | 250,000,000 | |||||
Per annum interest rate of notes (percentage) | 6.13% | 6.13% | 6.13% | |||
Commitment fees and debt issuance costs | 2,740,000 | |||||
Interest and debt expense | 15,587,000 | 5,845,000 | ||||
Minimum | Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in interest rate | 1.00% | |||||
Ratio of indebtedness to net capital | 0.3 | |||||
Maximum | Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Ratio of indebtedness to net capital | 0.35 | |||||
Increase in Leveraged Ratio by More than 35 Percent [Member] | Minimum | Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in interest rate | 0.50% | |||||
Increase in Leveraged Ratio by 30 Percent to 35 Percent | Minimum | Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Increase (decrease) in interest rate | 1.50% | |||||
Event of Default | Maximum | Senior Notes | 6.125% Notes due 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Grace period in case of acquisition | 18 months | |||||
On or before December 15, 2018 | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger | 130.00% | |||||
On or before December 15, 2018 | Minimum | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Stock price trigger | $97.50 | |||||
After December 15, 2024 | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||
On or Before December Fifteen Twenty Eighteen [Member] | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||
After December Fifteen Twenty Eighteen [Member] | Convertible Senior Notes | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Redemption price, percentage of principal amount redeemed | 100.00% | |||||
2.75% Convertible senior notes due 2044 (the 2044 Notes) | Convertible Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Notes retired, amount | 131,881,000 | |||||
Convertible senior notes | 110,346,000 | 110,346,000 | ||||
Write off of issuance cost | 2,195,000 | |||||
Convertible debt, fair value disclosures | 117,982,000 | 117,982,000 | ||||
Loss on extinguishment of debt | $9,831,000 |
Debt_Junior_Subordinate_Debt_D
Debt (Junior Subordinate Debt) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Entity | |||
Debt Instrument [Line Items] | |||
Term of debt instrument | 5 years | ||
Number of special purpose trusts established | 4 | ||
Trust equity investment | $3,714 | ||
Placement fees in connection with common securities issuance | 2,605 | ||
Interest expense related to trust preferred securities | $8,100 | $8,099 | $8,297 |
Junior Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Term of debt instrument | 30 years |
Debt_Secured_Loan_Agreement_De
Debt (Secured Loan Agreement) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 3 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Aug. 29, 2014 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||||
Term loan, maturity period | 5 years | |||||
Percentage of outstanding balance of loan in excess of fair value of aircraft | 90.00% | |||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maturity period | 7 years | |||||
Debt instrument, face amount | $10,800,000 | |||||
Debt instrument, stated interest rate (percentage) | 4.45% | |||||
Monthly installment payment | 117,000 | |||||
Balloon payment at maturity date | 2,970,000 | |||||
Interest expense | 330,000 | 380,000 | 432,000 | |||
Repayments of debt | 270,000 | |||||
KEY Equipment Finance [Member] | Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Term loan, maturity period | 5 years | |||||
Debt instrument, face amount | 30,500,000 | |||||
Debt instrument, stated interest rate (percentage) | 2.27% | |||||
Monthly installment payment | 538,000 | |||||
Interest expense | $227,000 |
Debt_Additional_Information_De
Debt (Additional Information) (Details) | 12 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2014 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2012 | Sep. 30, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Nov. 26, 2013 | Dec. 31, 2014 | |
USD ($) | USD ($) | USD ($) | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | Junior Subordinated Debt | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | Convertible Senior Notes | MIHC | MIHC | MIHC | LIBOR | State and Local Government of Ohio | State and Local Government of Ohio | State and Local Government of Ohio | State and Local Government of Ohio | State and Local Government of Ohio | State and Local Government of Ohio | State and Local Government of Ohio | Sagicor Europe Limited | ING Bank, N.V. | ING Bank, N.V. | ING Bank, N.V. | ING Bank, N.V. | Comerica Bank | |
Derivative | USD ($) | USD ($) | USD ($) | USD ($) | debt_instrument | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 5.5% Convertible senior notes due 2021 (the 2021 Notes) | 2.75% Convertible senior notes due 2044 (the 2044 Notes) | USD ($) | USD ($) | Notes Payable, Other Payables | USD ($) | Notes Payable, Other Payables | Notes Payable, Other Payables | Notes Payable, Other Payables | Notes Payable, Other Payables | 800 Superior LLC | 800 Superior LLC | Comerica Letter of Credit Facility | Comerica Letter of Credit Facility | Comerica Letter of Credit Facility | Comerica Letter of Credit Facility | Comerica Letter of Credit Facility | ||||||
USD ($) | USD ($) | USD ($) | promissory_note | USD ($) | USD ($) | USD ($) | USD ($) | Notes Payable, Other Payables | USD ($) | GBP (£) | GBP (£) | USD ($) | ||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||||||||
Unamortized discount, notes submitted for conversion | $8,417,000 | |||||||||||||||||||||||||||||
Unamortized original issue discount | 64,619,000 | 35,782,000 | 11,374,000 | 35,782,000 | 53,245,000 | 0 | 2,957,000 | |||||||||||||||||||||||
Number of debt instruments | 2 | 2 | ||||||||||||||||||||||||||||
Number of derivative instruments held | 2 | |||||||||||||||||||||||||||||
Promissory notes | 14,500,000 | 14,500,000 | 6,500,000 | 8,000,000 | ||||||||||||||||||||||||||
Deferred costs | 1,430,000 | |||||||||||||||||||||||||||||
Availability of letter of credit | 6,265,000 | |||||||||||||||||||||||||||||
Term of debt instrument | 5 years | 30 years | 15 years | 15 years | ||||||||||||||||||||||||||
Interest rate | 1.70% | |||||||||||||||||||||||||||||
Interest expense | 45,857,000 | 34,691,000 | 28,508,000 | 312,000 | 290,000 | 100,000 | ||||||||||||||||||||||||
Debt instrument, stated interest rate (percentage) | 5.50% | 2.75% | 3.80% | |||||||||||||||||||||||||||
Debt instrument, interest rate (percentage) | 7.46% | 8.57% | 4.10% | |||||||||||||||||||||||||||
Interest expense | 13,933,000 | 14,476,000 | 14,031,000 | 365,000 | 210,000 | |||||||||||||||||||||||||
Line of credit, maximum borrowing capacity | 235,000,000 | 200,000,000 | 75,000,000 | |||||||||||||||||||||||||||
Percentage of face amount | 0.9 | 1 | ||||||||||||||||||||||||||||
Funding percentage of collateral account | 40.00% | |||||||||||||||||||||||||||||
Fee payable on secured portion of debt, percentage | 0.50% | |||||||||||||||||||||||||||||
Fee payable on unsecured portion of debt, percentage | 1.15% | |||||||||||||||||||||||||||||
Unused capacity, commitment fee percentage | 0.35% | |||||||||||||||||||||||||||||
Commitment fee percentage | 0.15% | 0.40% | ||||||||||||||||||||||||||||
Letters of credit, outstanding amount | 355,178,000 | 227,989,000 | 48,467,000 | |||||||||||||||||||||||||||
Credit agreement, remaining borrowing capacity | 10,923,000 | 7,011,000 | ||||||||||||||||||||||||||||
Interest and debt expense | $2,795,000 |
Reinsurance_Reinsurance_Detail
Reinsurance Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reinsurance Retention Policy [Line Items] | ||||||||||||
Minimum surplus required to retain reinsurer | $500,000 | $500,000 | ||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Direct Premiums Written | 5,422,484 | 3,869,893 | 2,494,846 | |||||||||
Direct Premiums Earned | 4,816,607 | 3,308,136 | 2,067,635 | |||||||||
Assumed Premiums Written | 665,481 | 247,018 | 254,480 | |||||||||
Assumed Premiums Earned | 562,193 | 254,863 | 270,008 | |||||||||
Ceded Premiums Written | -2,131,347 | -1,551,238 | -1,101,289 | |||||||||
Ceded Premiums Earned | -1,852,236 | -1,297,009 | -918,791 | |||||||||
Premiums Written, Net | 3,956,618 | 2,565,673 | 1,648,037 | |||||||||
Net earned premium | 908,163 | 914,413 | 874,937 | 829,051 | 707,562 | 613,895 | 536,539 | 407,994 | 3,526,564 | 2,265,990 | 1,418,852 | |
Losses and LAE reserves | 5,664,205 | 4,368,234 | 5,664,205 | 4,368,234 | 2,426,400 | 1,879,175 | ||||||
Unearned premiums | 3,447,203 | 2,680,982 | 3,447,203 | 2,680,982 | ||||||||
Assumed | ||||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Losses and LAE reserves | 623,193 | 378,564 | 623,193 | 378,564 | 503,174 | |||||||
Unearned premiums | 211,177 | 103,878 | 211,177 | 103,878 | 108,679 | |||||||
Loss and LAE expense incurred | 424,754 | 91,109 | 166,191 | |||||||||
Ceded | ||||||||||||
Effect of reinsurance with unrelated companies | ||||||||||||
Losses and LAE reserves | -2,149,444 | -1,739,689 | -2,149,444 | -1,739,689 | -1,185,056 | |||||||
Unearned premiums | -1,302,848 | -1,011,304 | -1,302,848 | -1,011,304 | -754,844 | |||||||
Loss and LAE expense incurred | -1,217,593 | -975,434 | -638,595 | |||||||||
2014 International Reinsurance Program | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, percentage | 40.00% | |||||||||||
2014 International Reinsurance Program | Medical Malpractice, Quota Share | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 13,000 | |||||||||||
2014 International Reinsurance Program | Medical Malpractice, Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 13,000 | |||||||||||
2014 International Reinsurance Program | Medical Malpractice, Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 7,800 | |||||||||||
2014 International Reinsurance Program | Accident and Health, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 31,200 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 International Reinsurance Program | Accident and Health, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 32,000 | |||||||||||
2014 International Reinsurance Program | Accident and Health, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 800 | |||||||||||
2014 International Reinsurance Program | Car Care, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 104,000 | |||||||||||
Coverage, percentage | 97.50% | |||||||||||
2014 International Reinsurance Program | Car Care, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 105,000 | |||||||||||
2014 International Reinsurance Program | Car Care, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 1,000 | |||||||||||
2014 International Reinsurance Program | Latent Defect, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 36,800 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 International Reinsurance Program | Latent Defect, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 40,000 | |||||||||||
2014 International Reinsurance Program | Latent Defect, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 3,200 | |||||||||||
2014 International Reinsurance Program | Surety, Excess of Loss and Quota Share | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 41,500 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 International Reinsurance Program | Surety, Excess of Loss and Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 45,000 | |||||||||||
2014 International Reinsurance Program | Surety, Excess of Loss and Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 4,500 | |||||||||||
2014 International Reinsurance Program | Casualty, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 12,000 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 International Reinsurance Program | Casualty, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 15,000 | |||||||||||
2014 International Reinsurance Program | Casualty, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 3,000 | |||||||||||
2014 International Reinsurance Program | Property, Occurrence Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 152,000 | |||||||||||
Coverage, percentage | 97.00% | |||||||||||
2014 International Reinsurance Program | Property, Occurrence Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 160,000 | |||||||||||
2014 International Reinsurance Program | Property, Occurrence Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 8,000 | |||||||||||
2014 International Reinsurance Program | Property, Per Risk Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 3,600 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 International Reinsurance Program | Property, Per Risk Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 4,400 | |||||||||||
2014 International Reinsurance Program | Property, Per Risk Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 800 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Casualty, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 16,000 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Casualty, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 20,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Casualty, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 4,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Personal Accident, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 48,000 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Personal Accident, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 50,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Personal Accident, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 2,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Occurrence Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 90,000 | |||||||||||
Coverage, percentage | 98.00% | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Occurrence Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 120,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Occurrence Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 20,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Per Risk Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 6,400 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Per Risk Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 8,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Property, Per Risk Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 1,600 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Pecuniary Risks | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 30,000 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Pecuniary Risks | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 35,000 | |||||||||||
2014 AmTrust at Lloyds Reinsurance Programs | Pecuniary Risks | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 5,000 | |||||||||||
2014 Domestic Reinsurance Program | Surety, Excess of Loss and Quota Share | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 19,500 | |||||||||||
Coverage, percentage | 70.00% | |||||||||||
2014 Domestic Reinsurance Program | Surety, Excess of Loss and Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 20,000 | |||||||||||
2014 Domestic Reinsurance Program | Surety, Excess of Loss and Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 500 | |||||||||||
2014 Domestic Reinsurance Program | Casualty, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 50,000 | |||||||||||
Coverage, percentage | 95.00% | |||||||||||
2014 Domestic Reinsurance Program | Casualty, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 50,000 | |||||||||||
2014 Domestic Reinsurance Program | Casualty, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 2,500 | |||||||||||
2014 Domestic Reinsurance Program | Equipment Breakdown, Quota Share | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 100,000 | |||||||||||
Coverage, percentage | 100.00% | |||||||||||
2014 Domestic Reinsurance Program | Equipment Breakdown, Quota Share | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 100,000 | |||||||||||
2014 Domestic Reinsurance Program | Equipment Breakdown, Quota Share | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 0 | |||||||||||
2014 Domestic Reinsurance Program | Property, Occurrence Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 330,000 | |||||||||||
Coverage, percentage | 99.00% | |||||||||||
2014 Domestic Reinsurance Program | Property, Occurrence Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 400,000 | |||||||||||
2014 Domestic Reinsurance Program | Property, Occurrence Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 20,000 | |||||||||||
2014 Domestic Reinsurance Program | Property, Per Risk Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 28,000 | |||||||||||
Coverage, percentage | 95.00% | |||||||||||
2014 Domestic Reinsurance Program | Property, Per Risk Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 30,000 | |||||||||||
2014 Domestic Reinsurance Program | Property, Per Risk Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 2,000 | |||||||||||
2014 Domestic Reinsurance Program | Workers’ Compensation, Excess of Loss | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Coverage, amounts | 505,000 | |||||||||||
Coverage, percentage | 98.50% | |||||||||||
2014 Domestic Reinsurance Program | Workers’ Compensation, Excess of Loss | Maximum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | 510,000 | |||||||||||
2014 Domestic Reinsurance Program | Workers’ Compensation, Excess of Loss | Minimum | ||||||||||||
Reinsurance Retention Program [Abstract] | ||||||||||||
Stated and Limits | $5,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 0 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2011 | Feb. 28, 2014 | Aug. 31, 2011 | Jun. 06, 2013 | Mar. 05, 2013 | Dec. 31, 2007 | Sep. 30, 2007 | Apr. 30, 2014 | Sep. 30, 2014 | Jan. 31, 2014 |
sqft | Entity | ||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Interest income | $2,601 | $0 | $0 | ||||||||||
Reinsurance recoverable | 2,440,627 | 1,929,848 | |||||||||||
Assumed premiums written | 665,481 | 247,018 | 254,480 | ||||||||||
Premium written - ceded | 2,131,347 | 1,551,238 | 1,101,289 | ||||||||||
Assumed premiums earned | 562,193 | 254,863 | 270,008 | ||||||||||
Note payable | 167,975 | 167,975 | |||||||||||
Service, fee and other revenues | 409,743 | 331,559 | 172,174 | ||||||||||
Purchase of senior notes | 20,207 | 17,228 | 1,884 | ||||||||||
Equity in earnings of unconsolidated subsidiary – related party | 28,351 | 11,566 | 9,295 | ||||||||||
Gross written premium | 6,087,965 | 4,116,911 | 2,749,326 | ||||||||||
Office area under lease | 39,992 | ||||||||||||
Lease payments | 16,314 | 15,658 | 11,518 | ||||||||||
Gain of sale of subsidiary | 6,631 | 0 | 0 | ||||||||||
800 Superior LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of ownership interest | 50.00% | ||||||||||||
Technology Insurance Company Inc | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Ceding commission percentage of ceded written premiums | 5.00% | ||||||||||||
Maiden Reinsurance Company | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of capital stock | 7.60% | ||||||||||||
Ceding commission percentage of ceded written premiums | 5.00% | ||||||||||||
Percentage of premiums | 40.00% | ||||||||||||
Term of reinsurance agreement | 1 year | ||||||||||||
Reinsurance ceded profit ratio | 50.00% | ||||||||||||
Assets managed under asset management agreement | 3,653,758 | ||||||||||||
Investment management fee | 5,213 | 4,388 | 3,697 | ||||||||||
Maiden Reinsurance Company | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Asset management services fee percentage | 0.15% | ||||||||||||
Average value of assets under management | 1,000,000 | ||||||||||||
Maiden Reinsurance Company | Maximum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Reinsurance ceded loss ratio | 65.00% | ||||||||||||
Asset management services fee percentage | 0.20% | ||||||||||||
Average value of assets under management | 1,000,000 | ||||||||||||
Maiden Reinsurance Company | Board of Directors Chairman | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of capital stock | 6.20% | ||||||||||||
Maiden Reinsurance Company | Director | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of capital stock | 9.30% | ||||||||||||
Maiden Reinsurance Company | Chief Executive Officer | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of capital stock | 5.10% | ||||||||||||
NGHC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Asset management fees payable | 16,409 | ||||||||||||
Assets managed under asset management agreement | 1,433,705 | ||||||||||||
Investment management fee | 2,006 | 1,725 | 1,503 | ||||||||||
Shares issued during the period | 13,600,000 | ||||||||||||
Percentage of ownership interests | 13.20% | 13.20% | 13.20% | 15.40% | |||||||||
Number of Reportable Entities | 15 | ||||||||||||
License fee percentage | 1.25% | ||||||||||||
Technology services fee income | 25,632 | 24,196 | 14,444 | ||||||||||
Percentage of ownership interest | 13.20% | 13.20% | |||||||||||
Cost of acquiring office building | 7,500 | ||||||||||||
Contribution Towards Payment for Guaranties, Percentage | 50.00% | ||||||||||||
Investment Advisory, Management and Administrative Fees | 28,695 | 25,921 | 15,947 | ||||||||||
Aircraft use payments | 133 | 140 | 165 | ||||||||||
NGHC | Common stock | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Stock split, conversion ratio | 286 | ||||||||||||
NGHC | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Asset management services fee percentage | 0.15% | ||||||||||||
Average value of assets under management | 1,000,000 | ||||||||||||
NGHC | Maximum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Asset management services fee percentage | 0.20% | ||||||||||||
Average value of assets under management | 1,000,000 | ||||||||||||
NGHC | 800 Superior LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of ownership interest | 50.00% | ||||||||||||
Collaborative arrangement profit share percentage | 57.70% | ||||||||||||
Office lease period | 15 years | ||||||||||||
Proceeds from collection of lease receivables | 2,056 | 2,329 | 1,391 | ||||||||||
Office area under lease | 134,000 | ||||||||||||
Maiden | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Percentage of reinsurance brokerage commissions | 1.25% | ||||||||||||
Service, fee and other revenues | 19,896 | 17,498 | 8,759 | ||||||||||
Aircraft use payments | 26 | 38 | 59 | ||||||||||
Maiden | Board of Directors Chairman | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Aircraft use payments | 55 | ||||||||||||
Maiden | CEO | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Aircraft use payments | 235 | 74 | 192 | ||||||||||
AII | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Premiums, percentage assumed to net | 40.00% | ||||||||||||
Percentage of reinsurance related losses assumed | 40.00% | ||||||||||||
Ceding commission percentage of ceded written premiums | 31.00% | ||||||||||||
Extended service agreement term | 3 years | ||||||||||||
Termination notice period | 30 days | ||||||||||||
Increase (Decrease) in Stockholders Equity, Percentage | 50.00% | ||||||||||||
Related party transaction, rate | 0.90% | ||||||||||||
AII | Retail Business [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Ceding commission percentage of ceded written premiums | 34.38% | ||||||||||||
AII | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Reinsurance recoverable | 5,000 | ||||||||||||
AII | Maiden | Minimum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Reinsurance ceded loss ratio | 81.50% | ||||||||||||
AII | Maiden | Maximum | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Reinsurance ceded loss ratio | 95.00% | ||||||||||||
59 Maiden Lane Associates, LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Lease payments | 1,880 | 730 | 733 | ||||||||||
33 West Monroe Associates, LLC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Office area under lease | 15,765 | ||||||||||||
Lease payments | 444 | 480 | |||||||||||
Private Placement [Member] | NGHC | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Realized gain (loss) on disposal | 14,712 | ||||||||||||
Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Service, fee and other revenues | 0 | 0 | 0 | ||||||||||
Equity in earnings of unconsolidated subsidiary – related party | 0 | 0 | 0 | ||||||||||
Gross written premium | 0 | 65,827 | 118,141 | ||||||||||
Personal Express Insurance Company [Member] | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Proceeds from Divestiture of Businesses | 21,743 | ||||||||||||
Gain of sale of subsidiary | 6,631 | ||||||||||||
Maiden Reinsurance Company | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Note payable | 167,975 | ||||||||||||
Maiden Reinsurance Company | AII | |||||||||||||
Related Party Transaction [Line Items] | |||||||||||||
Interest expense on collateral loan | 1,797 | 1,852 | 1,951 | ||||||||||
Collateral debt issued by maiden insurance | $1,936,128 |
Results_of_Operations_Related_
Results of Operations Related to Reinsurance Agreements (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Related Party Transaction [Line Items] | |||||||||||
Premium written - ceded | ($2,131,347) | ($1,551,238) | ($1,101,289) | ||||||||
Change in unearned premium - ceded | -430,054 | -299,683 | -229,185 | ||||||||
Earned premium - ceded | -1,852,236 | -1,297,009 | -918,791 | ||||||||
Loss and loss adjustment expense | 587,464 | 609,352 | 587,233 | 558,570 | 470,416 | 410,579 | 364,110 | 272,256 | 2,342,619 | 1,517,361 | 922,675 |
Related Party Transactions | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Premium written - ceded | -1,592,457 | -1,150,394 | -846,491 | ||||||||
Change in unearned premium - ceded | 211,897 | 162,846 | 116,168 | ||||||||
Earned premium - ceded | -1,380,560 | -987,548 | -730,323 | ||||||||
Ceding commission on premium written | 493,342 | 330,186 | 223,111 | ||||||||
Ceding commission - deferred | -88,271 | -53,630 | -26,129 | ||||||||
Ceding commission earned | 405,071 | 276,556 | 196,982 | ||||||||
Loss and loss adjustment expense | $885,362 | $715,832 | $526,210 |
Related_Party_Transactions_Sig
Related Party Transactions (Significant transaction with ACP) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | 1 Months Ended | 0 Months Ended | |||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Jul. 23, 2014 | Sep. 15, 2014 | Sep. 30, 2014 | Jan. 03, 2014 | Jan. 31, 2014 |
Related Party Transaction [Line Items] | ||||||||||||||||
Goodwill | $352,685 | $373,591 | $352,685 | $373,591 | $326,646 | |||||||||||
Gross written premium | 6,087,965 | 4,116,911 | 2,749,326 | |||||||||||||
Assumed premiums written | 665,481 | 247,018 | 254,480 | |||||||||||||
Earned premium | 908,163 | 914,413 | 874,937 | 829,051 | 707,562 | 613,895 | 536,539 | 407,994 | 3,526,564 | 2,265,990 | 1,418,852 | |||||
Loss and loss adjustment expense | 587,464 | 609,352 | 587,233 | 558,570 | 470,416 | 410,579 | 364,110 | 272,256 | 2,342,619 | 1,517,361 | 922,675 | |||||
Ceded reinsurance premiums payable | 683,421 | 635,588 | 683,421 | 635,588 | ||||||||||||
Revolving credit facility | 120,000 | 0 | 120,000 | 0 | ||||||||||||
Interest income | 2,601 | 0 | 0 | |||||||||||||
AmTrust North America | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Insurance commission, percentage | 10.00% | |||||||||||||||
NGHC | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Assets managed under asset management agreement | 1,433,705 | 1,433,705 | ||||||||||||||
Asset management fees | 28,695 | 25,921 | 15,947 | |||||||||||||
Investment management fee | 2,006 | 1,725 | 1,503 | |||||||||||||
Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Assets managed under asset management agreement | 53,670 | 53,670 | ||||||||||||||
Asset management fees | 214 | 238 | 638 | |||||||||||||
Loan and related interest receivable | 127,601 | 127,601 | ||||||||||||||
Scenario 1 | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Asset management services fee percentage | 0.20% | 0.20% | ||||||||||||||
Scenario 3 | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Asset management services fee percentage | 0.15% | 0.15% | ||||||||||||||
Minimum | NGHC | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Asset management services fee percentage | 0.15% | 0.15% | ||||||||||||||
Average value of assets under management | 1,000,000 | |||||||||||||||
Minimum | Scenario 3 | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Average value of assets under management | 1,000,000 | |||||||||||||||
Maximum | NGHC | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Asset management services fee percentage | 0.20% | 0.20% | ||||||||||||||
Average value of assets under management | 1,000,000 | |||||||||||||||
Maximum | Scenario 2 | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Average value of assets under management | 1,000,000 | |||||||||||||||
Tower Companies | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Goodwill | 700 | |||||||||||||||
Contingent consideration | 26,900 | |||||||||||||||
Gross written premium | 133,424 | |||||||||||||||
Tower Companies | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Voting interests acquired, percentage | 100.00% | |||||||||||||||
Percentage of Gross Written Premium | Parent Company | Tower Companies | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Contingent consideration arrangements, percentage | 3.00% | |||||||||||||||
Contingent payment, maximum | 30,000 | |||||||||||||||
Number of payments | 3 years | |||||||||||||||
Renewal Rights | Tower Companies | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Assigned to intangible assets | 26,200 | |||||||||||||||
AII | NGHC | Aggregate Stop Loss Retrocession Contract | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Percentage of ceding commission | 5.50% | |||||||||||||||
AII | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Revolving credit facility | 125,000 | |||||||||||||||
AII | NG Re Ltd. | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Revolving credit facility | 250,000 | |||||||||||||||
Debt instrument, stated interest rate (percentage) | 7.00% | |||||||||||||||
AII | CP Re | NGHC | Aggregate Stop Loss Reinsurance Agreement | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Funds held under reinsurance agreements, asset | 250,000 | |||||||||||||||
Ceded reinsurance premiums payable | 56,000 | |||||||||||||||
Reinsurance agreement, period | 5 years | |||||||||||||||
AII | CP Re | NGHC | Aggregate Stop Loss Retrocession Contract | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Ceded reinsurance premiums payable | 56,000 | |||||||||||||||
AII | Acp Re Ltd | NGHC | Aggregate Stop Loss Retrocession Contract | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Funds held under reinsurance agreements, asset | 125,000 | |||||||||||||||
Parent Company | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Revolving credit facility | 120,000 | 0 | 120,000 | 0 | ||||||||||||
Parent Company | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Fees and commissions | 30 | |||||||||||||||
TIC | Tower Companies | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Reinsured risk, Percentage | 100.00% | |||||||||||||||
Gross premium written, percentage | 2.00% | |||||||||||||||
Minimum reinsured, percentage | 60.00% | |||||||||||||||
Assumed premiums written | 475,038 | |||||||||||||||
Earned premium | 386,609 | |||||||||||||||
Loss and loss adjustment expense | 224,961 | |||||||||||||||
Insurance commissions | 91,502 | |||||||||||||||
Other expenses | 15,926 | |||||||||||||||
Ceded reinsurance premiums payable | 17,404 | |||||||||||||||
Domestic | AII | NG Re Ltd. | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Stock pledged as collateral, percentage | 100.00% | |||||||||||||||
Foreign Subsidiaries | AII | NG Re Ltd. | Acp Re Ltd | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Stock pledged as collateral, percentage | 65.00% | |||||||||||||||
Other Assets | Tower International [Member] | ||||||||||||||||
Related Party Transaction [Line Items] | ||||||||||||||||
Prepaid Insurance | $8,915 | $8,915 |
Acquisition_Costs_and_Other_Un2
Acquisition Costs and Other Underwriting Expenses (Summary of Components of Acquisition Costs and Other Underwriting Expenses) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Insurance [Abstract] | |||||||||||
Policy acquisition expenses | $460,010 | $244,461 | $178,633 | ||||||||
Salaries and benefits | 367,549 | 247,173 | 155,441 | ||||||||
Other insurance general and administrative expenses | 29,364 | 41,528 | 21,931 | ||||||||
Acquisition costs and other underwriting expenses | $236,742 | $225,512 | $208,060 | $186,609 | $165,745 | $137,186 | $129,946 | $100,285 | $856,923 | $533,162 | $356,005 |
Share_Based_Compensation_Textu
Share Based Compensation (Textual) (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2010 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average grant date fair value of options granted | $14.69 | $8.10 | $8.44 | |
Weighted average remaining life for options grants outstanding | 3 years 4 months 24 days | 4 years 4 months 24 days | ||
Shares exercisable | 1,800,000 | 2,800,000 | ||
Weighted average exercise price for the exercisable shares | $10.49 | $9.69 | ||
Stock based compensation | $19,114 | $11,186 | $7,172 | |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements | 36,882 | 23,857 | 20,665 | |
Intrinsic value of stock options exercised | 35,597 | 19,352 | 12,061 | |
Intrinsic value of stock options outstanding | 86,374 | 66,559 | 70,860 | |
Stock option exercise and other | 10,589 | 5,387 | 8,873 | |
Excess tax benefit from award | $10,281 | $5,109 | ||
Performance Shares (PSU) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted during the period | 7,640 | 4,687 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Total Grants | 274,835 | |||
Omnibus Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for stock award, maximum | 7,315,068 | |||
Common stock remaining shares available for grants | 4,600,000 | |||
Omnibus Incentive Plan | Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Share based award, vesting period | 4 years | |||
Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based award, vesting period | 2 years | |||
Omnibus Incentive Plan | Restricted Stock Units (RSUs) | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based award, vesting period | 4 years |
Share_Based_Compensation_Sched
Share Based Compensation (Schedule of Option Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Shares | |||
Outstanding at beginning of period | 2,997,460 | 3,675,776 | 4,546,678 |
Granted | 37,500 | 78,001 | 45,981 |
Exercised | -1,092,120 | -747,272 | -821,745 |
Forfeited | -8,470 | -9,045 | -95,138 |
Outstanding end of period | 1,934,370 | 2,997,460 | 3,675,776 |
Weighted Average Exercise Price | |||
Outstanding at beginning of period | $10.49 | $9.41 | $9.06 |
Granted | $37.87 | $29.78 | $23.63 |
Exercised | $9.50 | $7.21 | $7.98 |
Forfeited | $7.03 | $8.90 | $11.87 |
Outstanding end of period | $11.60 | $10.49 | $9.41 |
Share_Based_Compensation_Fair_
Share Based Compensation (Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation [Abstract] | |||
Volatility | 41.89% | 33.09% | 32.68% |
Risk-free interest rate | 2.73% | 0.88% | 0.73% |
Weighted average expected lives in years | 6 years 3 months | 6 years 3 months | 6 years 3 months |
Dividend rate | 1.90% | 1.68% | 1.37% |
Forfeiture rate | 0.50% | 0.50% | 0.50% |
Share_Based_Compensation_Summa
Share Based Compensation (Summary of Restricted Stock and RSU Activity) (Details) (Restricted Stock and Restricted Stock Unit, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Restricted Stock and Restricted Stock Unit | |||
Shares or Units | |||
Non-vested at beginning of period | 917,015 | 888,197 | 352,453 |
Granted | 902,358 | 291,430 | 638,177 |
Vested | -497,534 | -262,031 | -101,681 |
Forfeited | -16,328 | -581 | -752 |
Non-vested at end of period | 1,305,511 | 917,015 | 888,197 |
Weighted Average Grant Date Fair Value | |||
Non-vested at beginning of period | $24.43 | $20.86 | $15.14 |
Granted | $39.21 | $31.17 | $23.04 |
Vested | $27.38 | $19.81 | $14.70 |
Forfeited | $33.19 | $29.31 | $20.86 |
Non-vested at end of period | $33.41 | $24.43 | $20.86 |
Income_Taxes_Components_of_Inc
Income Taxes (Components of Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Current federal tax expense (benefit) | $219,413 | $49,565 | $6,402 | ||||||||
Current foreign tax expense (benefit) | 26,142 | 29,935 | 21,052 | ||||||||
Current income tax expense (benefit) | 245,555 | 79,500 | 27,454 | ||||||||
Deferred federal income tax expense (benefit) | -8,376 | 13,741 | 9,919 | ||||||||
Deferred foreign income tax expense (benefit) | -183,493 | 4,778 | -16,081 | ||||||||
Deferred income tax expense (benefit) | -191,869 | 18,519 | -6,162 | ||||||||
Provision for income taxes | $15,940 | ($7,664) | $17,966 | $27,444 | $30,628 | $23,880 | $27,402 | $16,109 | $53,686 | $98,019 | $21,292 |
Income_Taxes_Income_Taxes_Reco
Income Taxes Income Taxes (Reconciliation of Effective Tax Rate) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Income Tax Disclosure [Abstract] | |||||||||||
Income before equity in earnings (loss) of unconsolidated subsidiaries | $471,933 | $367,046 | $196,857 | ||||||||
Tax at federal statutory rate of 35% | 165,177 | 128,466 | 68,900 | ||||||||
Net income of non-includible foreign subsidiaries | -99,904 | -45,075 | -43,806 | ||||||||
Other, net | -11,587 | 14,628 | -3,802 | ||||||||
Provision for income taxes | $15,940 | ($7,664) | $17,966 | $27,444 | $30,628 | $23,880 | $27,402 | $16,109 | $53,686 | $98,019 | $21,292 |
Effective tax rate | 11.40% | 26.70% | 10.80% | ||||||||
Federal statutory rate | 35.00% | 35.00% |
Income_Taxes_Income_Taxes_Defe
Income Taxes Income Taxes (Deferred Tax Assets and Liability) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Unearned premiums | $117,922 | $83,410 |
Ceding commission | 107,739 | 82,554 |
Loss and LAE reserves | 49,583 | 43,452 |
Other | 62,346 | 60,673 |
Deferred compensation | 7,774 | 7,183 |
Bad debt | 13,027 | 8,790 |
Net operating loss carryforward | 101,230 | 2,133 |
Unrealized loss on investments | 0 | 4,396 |
Deferred tax assets, gross | 459,621 | 292,591 |
Deferred acquisition costs | -295,121 | -239,293 |
Equalization reserves | -94,215 | -186,576 |
Intangible assets | -51,619 | -64,090 |
Unrealized gain on investments | -30,219 | 0 |
Other | -16,790 | -19,578 |
Depreciation | -31,350 | -31,396 |
Equity results which cannot be liquidated tax free | -41,497 | -21,200 |
Accrual market discount | -3,123 | -3,020 |
Cash surrender value on insurance | -2,050 | -1,957 |
Deferred tax liabilities, gross | -565,984 | -567,110 |
Deferred tax liability, net | ($106,363) | ($274,519) |
Income_Taxes_Open_Tax_Years_De
Income Taxes (Open Tax Years) (Details) | 12 Months Ended |
Dec. 31, 2014 | |
2010 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2010 |
2011 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2011 |
2011 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2011 |
2012 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2012 |
2012 | United Kingdom | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2012 |
2012 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2012 |
2013 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2013 |
2013 | United Kingdom | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2013 |
2013 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2013 |
2014 | USA | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2014 |
2014 | United Kingdom | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2014 |
2014 | Ireland | |
Income Tax Examination [Line Items] | |
Open Tax Years | 2014 |
Income_Taxes_Additional_Inform
Income Taxes (Additional Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating Loss Carryforwards [Line Items] | |||||||||||
Income tax benefit (expense) | ($15,940) | $7,664 | ($17,966) | ($27,444) | ($30,628) | ($23,880) | ($27,402) | ($16,109) | ($53,686) | ($98,019) | ($21,292) |
Amount of unrecognized deferred tax liability, undistributed earnings | 257,587 | 112,263 | 257,587 | 112,263 | |||||||
Loss and LAE reserves | 49,583 | 43,452 | 49,583 | 43,452 | |||||||
Deferred tax liability for equalization reserve | 94,215 | 186,576 | 94,215 | 186,576 | |||||||
Domestic Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating Loss Carryforwards | 26,079 | 26,079 | |||||||||
Foreign Tax Authority [Member] | |||||||||||
Operating Loss Carryforwards [Line Items] | |||||||||||
Operating Loss Carryforwards | $307,288 | $307,288 |
Employee_Benefit_Plans_Details
Employee Benefit Plans (Details) (USD $) | 10 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
participant | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Number of participants | 300 | |||
Employer contribution | $3,958 | $1,004 | $3,958 | |
Estimated contributions to be made in the next fiscal year | 950 | |||
Estimated pension income for next fiscal year | -614 | |||
Domestic | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cost of plan for the company | 4,241 | 2,561 | 1,919 | |
Europe | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Cost of plan for the company | $6,167 | $2,575 | $1,054 |
Employee_Benefit_Plans_Change_
Employee Benefit Plans (Change in Benefit Obligation) (Details) (USD $) | 10 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 |
Change in Benefit Obligation | |||
Beginning balance | $39,877 | $46,873 | |
Interest cost | 1,608 | 2,074 | |
Actuarial loss | 2,074 | 4,621 | |
Benefits and expenses paid net of retiree contributions | -553 | -820 | |
Exchange rate changes | 3,867 | -3,202 | |
Ending balance | 46,873 | 49,546 | 46,873 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Beginning balance | 34,832 | 43,592 | |
Actual return on assets | 1,820 | 5,974 | |
Employer contributions | 3,958 | 1,004 | 3,958 |
Benefits and expenses paid net of retiree contributions | -553 | -820 | |
Exchange rate changes | 3,535 | -3,016 | |
Ending balance | 43,592 | 46,734 | 43,592 |
Funded Status at December 31, 2014 and 2013 | ($3,281) | ($2,812) | ($3,281) |
Employee_Benefit_Plans_Net_Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) (USD $) | 10 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
Compensation and Retirement Disclosure [Abstract] | ||
Interest costs on benefit obligation | $1,608 | $2,074 |
Assumed return on plan assets | -1,900 | -2,600 |
Total | ($292) | ($526) |
Employee_Benefit_Plans_Expecte
Employee Benefit Plans (Expected Future Benefit Payment) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Compensation and Retirement Disclosure [Abstract] | |
2015 | $749 |
2016 | 858 |
2017 | 910 |
2018 | 815 |
2019 | 1,055 |
2020 - 2024 | $7,531 |
Employee_Benefit_Plans_Excess_
Employee Benefit Plans (Excess Projected Benefit Obligation and Accumulated Benefit Obligation Over Plan Assets (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
In Thousands, unless otherwise specified | |||
Compensation and Retirement Disclosure [Abstract] | |||
Projected benefit obligation and accumulated benefit obligation | $49,546 | $46,873 | $39,877 |
Fair value of plan assets | 46,734 | 43,592 | |
Excess of projected benefit obligation and accumulated benefit obligation over plan assets | $2,812 | $3,281 |
Employee_Benefit_Plans_Assumpt
Employee Benefit Plans (Assumptions Used) (Details) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Benefit Obligation [Abstract] | ||
Discount rate used for liability determination | 3.75% | 4.50% |
Defined Benefit Plan, Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost [Abstract] | ||
Discount rate used for expense determination | 4.50% | 4.75% |
Long term rate of return on assets | 6.00% | 6.00% |
Assumed rate of increase for pension payments | 3.25% | 3.25% |
Employee_Benefit_Plans_Plan_as
Employee Benefit Plans (Plan assets) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Feb. 28, 2013 |
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 100.00% | 100.00% | |
Actual Allocation | 100.00% | 100.00% | |
Plan assets | $46,734 | $43,592 | $34,832 |
Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 41,984 | 39,226 | |
Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,750 | 4,366 | |
Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Money market funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 185 | 196 | |
Money market funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 185 | 196 | |
Money market funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Money market funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 47.50% | 47.50% | |
Actual Allocation | 48.00% | 51.00% | |
Fixed income securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 40.00% | 40.00% | |
Actual Allocation | 42.00% | 39.00% | |
Real estate partnerships | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Target Allocation | 12.50% | 12.50% | |
Actual Allocation | 10.00% | 10.00% | |
Plan assets | 4,750 | 4,366 | |
Real estate partnerships | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | ||
Real estate partnerships | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 4,750 | 4,366 | |
Real estate partnerships | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equity mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 22,376 | 22,159 | |
Equity mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 22,376 | 22,159 | |
Equity mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Equity mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Fixed income mutual funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 19,423 | 16,871 | |
Fixed income mutual funds | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 19,423 | 16,871 | |
Fixed income mutual funds | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Fixed income mutual funds | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Total registered investment companies | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 41,799 | 39,030 | |
Total registered investment companies | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 41,799 | 39,030 | |
Total registered investment companies | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | 0 | 0 | |
Total registered investment companies | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan assets | $0 | $0 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Basic earnings per share: | |||||||||||
Net income attributable to AmTrust common shareholders | $434,276 | $278,237 | $177,987 | ||||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||
Net income allocated to AmTrust common shareholders | 433,059 | 277,806 | 177,281 | ||||||||
Weighted average common shares outstanding - basic (in shares) | 75,144 | 74,278 | 73,534 | ||||||||
Less: Weighted average participating shares outstanding (in shares) | 211 | 115 | 265 | ||||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||
Net income per AmTrust Financial Services, Inc. common share - basic (usd per share) | $0.94 | $2.09 | $1.41 | $1.34 | $0.87 | $0.78 | $0.96 | $1.13 | $5.78 | $3.75 | $2.42 |
Diluted earnings per share: | |||||||||||
Net income allocated to AmTrust Financial Services, Inc. common shareholders | 434,276 | 278,237 | 177,987 | ||||||||
Less: Net income allocated to participating securities and redeemable non-controlling interest | 1,217 | 431 | 706 | ||||||||
Net income allocated to AmTrust common shareholders | $433,059 | $277,806 | $177,281 | ||||||||
Weighted average common shares outstanding – basic | 74,933 | 74,163 | 73,269 | ||||||||
Plus: Dilutive effect of stock options, other (in shares) | 4,584 | 3,821 | 2,351 | ||||||||
Weighted average common shares outstanding - dilutive (in shares) | 79,517 | 77,984 | 75,620 | ||||||||
Net income per AmTrust Financial Services, Inc. common shares - diluted (usd per share) | $0.88 | $1.97 | $1.33 | $1.27 | $0.82 | $0.74 | $0.93 | $1.08 | $5.45 | $3.56 | $2.34 |
Anti-dilutive securities excluded from diluted earnings per share, less than | 8,000 |
Stockholders_Equity_Preferred_
Stockholders' Equity (Preferred Stock Issuance) (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Jul. 10, 2014 | Jun. 10, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 16, 2014 | Jul. 02, 2014 | Jul. 10, 2014 |
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 4,785,000 | 4,600,000 | ||||||
Dividend rate, percentage | 6.75% | |||||||
Preferred stock, par value | $0.01 | $0.01 | $0.01 | |||||
Liquidation per share | $25 | |||||||
Dividend received by the company | $7,400 | $6,900 | $7,200 | |||||
Underwriting discount and commissions | 3,614 | 2,745 | ||||||
Noncumulative Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, shares issued | 4,600,000 | |||||||
Dividend rate, percentage | 7.63% | 7.25% | ||||||
Preferred stock, par value | $0.01 | |||||||
Liquidation per share | $1,000 | $1,000 | ||||||
Redemption price per share | $25 | |||||||
Shares issued during the period, shares | 105,000 | |||||||
American Depository Shares | ||||||||
Class of Stock [Line Items] | ||||||||
Liquidation per share | $25 | $25 | ||||||
Shares issued during the period, shares | 200,000 | 3,200,000 | 4,000,000 | 4,200,000 | ||||
Net proceeds from this offering, including over allotment | 101,702 | 77,480 | ||||||
Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Dividend received by the company | $3,989 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | ($8,164) | $64,231 | ($9,999) |
Other comprehensive income (loss) before reclassifications | 106,468 | -119,666 | 107,560 |
Amounts reclassed from accumulated other comprehensive income (loss) | -7,566 | 8,707 | 6,640 |
Income tax benefit (expense) | -34,615 | 38,564 | -39,970 |
Other comprehensive income (loss), net of tax | 64,287 | -72,395 | 74,230 |
Ending Balance | 56,123 | -8,164 | 64,231 |
Foreign Currency Items | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 2,582 | -10,361 | -17,091 |
Other comprehensive income (loss) before reclassifications | -26,706 | 19,912 | 10,354 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | 9,348 | -6,969 | -3,624 |
Other comprehensive income (loss), net of tax | -17,358 | 12,943 | 6,730 |
Ending Balance | -14,776 | 2,582 | -10,361 |
Unrealized Gains (Losses) on Investments | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | -7,023 | 77,605 | 9,372 |
Other comprehensive income (loss) before reclassifications | 133,775 | -138,902 | 98,334 |
Amounts reclassed from accumulated other comprehensive income (loss) | -7,566 | 8,707 | 6,640 |
Income tax benefit (expense) | -44,173 | 45,567 | -36,741 |
Other comprehensive income (loss), net of tax | 82,036 | -84,628 | 68,233 |
Ending Balance | 75,013 | -7,023 | 77,605 |
Interest Rate Swap Hedge | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | -1,985 | -3,013 | -2,280 |
Other comprehensive income (loss) before reclassifications | 1,022 | 1,581 | -1,128 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | -358 | -553 | 395 |
Other comprehensive income (loss), net of tax | 664 | 1,028 | -733 |
Ending Balance | -1,321 | -1,985 | -3,013 |
Net Benefit Plan Assets and Obligations Recognized in Stockholders' Equity | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | -1,738 | 0 | 0 |
Other comprehensive income (loss) before reclassifications | -1,623 | -2,257 | 0 |
Amounts reclassed from accumulated other comprehensive income (loss) | 0 | 0 | 0 |
Income tax benefit (expense) | 568 | 519 | 0 |
Other comprehensive income (loss), net of tax | -1,055 | -1,738 | 0 |
Ending Balance | ($2,793) | ($1,738) | $0 |
New_Market_Tax_Credit_Details
New Market Tax Credit (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Tax Credit [Line Items] | |||
Proceeds from financing transaction | ($293,222) | $58,311 | $43,193 |
Percentage of qualified investment income that can be claimed at tax credit against their federal income taxes | 39.00% | ||
Term of debt instrument | 5 years | ||
Parent, NGHC, KCDC and State and Local Government of Ohio [Member] | 800 Superior LLC | |||
Schedule of Tax Credit [Line Items] | |||
Proceeds from financing transaction | 19,400 | ||
State and Local Government of Ohio | 800 Superior LLC | |||
Schedule of Tax Credit [Line Items] | |||
Proceeds from financing transaction | $8,000 | ||
Number of loans | 2 | ||
Term of debt instrument | 15 years | ||
Community Development Entities (CDE) | 800 Superior LLC | |||
Schedule of Tax Credit [Line Items] | |||
Number of CDE | 2 | ||
Period to recapture | 7 years | ||
Key Community Development Corporation (KCDC) | 800 Superior LLC | |||
Schedule of Tax Credit [Line Items] | |||
Total benefit a company is entilted to receive | 51.00% | ||
Promissory note | State and Local Government of Ohio | |||
Schedule of Tax Credit [Line Items] | |||
Average rate of interest | 1.70% | ||
NGHC | |||
Schedule of Tax Credit [Line Items] | |||
Percentage of ownership interest | 13.20% | ||
NGHC | 800 Superior LLC | |||
Schedule of Tax Credit [Line Items] | |||
Total benefit a company is entilted to receive | 49.00% |
Commitment_and_Contingencies_L
Commitment and Contingencies (Lease Commitments) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Leases | |||
Commitments and Contingencies Disclosure [Abstract] | |||
Lease payments | $16,314 | $15,658 | $11,518 |
Lease Commitment | |||
2015 | 19,573 | ||
2016 | 17,478 | ||
2017 | 14,642 | ||
2018 | 11,787 | ||
2019 | 10,785 | ||
2020 and Thereafter | 28,443 | ||
Future Minimum Payments Due | $102,708 | ||
Number of Leases | 95 |
Commitment_and_Contingencies_E
Commitment and Contingencies (Employment Agreements) (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | employee |
Commitments and Contingencies Disclosure [Abstract] | |
Number of key executives and employees | 44 |
2015 | $13,616 |
2016 | 7,293 |
2017 | 3,818 |
2018 | 919 |
2019 | 602 |
2020 and Thereafter | 422 |
Other Commitment | $26,670 |
Statutory_Financial_Data_Risk_2
Statutory Financial Data, Risk Based Capital and Dividend Restrictions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statutory Accounting Practices [Line Items] | |||
Required Statutory Capital and Surplus | $500,000 | ||
Limit for cash dividends or distribution | 844,037 | 473,253 | |
Dividend received by the company | 7,400 | 6,900 | 7,200 |
Unrestricted net assets | 844,037 | 473,253 | |
Domestic | TIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 479,437 | 236,528 | |
Required Statutory Capital and Surplus | 178,941 | 108,377 | |
Net income from insurance subsidiaries | 21,418 | 16,614 | 45,621 |
Domestic | RIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 82,350 | 58,845 | |
Required Statutory Capital and Surplus | 31,082 | 22,587 | |
Net income from insurance subsidiaries | 9,440 | 8,158 | 1,129 |
Domestic | WIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 215,530 | 166,813 | |
Required Statutory Capital and Surplus | 125,810 | 79,857 | |
Net income from insurance subsidiaries | 14,150 | 21,447 | 9,263 |
Domestic | AIIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 74,014 | 74,076 | |
Required Statutory Capital and Surplus | 17,416 | 17,373 | |
Net income from insurance subsidiaries | 8,297 | 12,810 | 5,570 |
Domestic | SNIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 123,573 | 79,780 | |
Required Statutory Capital and Surplus | 50,607 | 32,603 | |
Net income from insurance subsidiaries | 30,666 | 14,350 | 10,624 |
Domestic | MCIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 17,713 | 14,912 | |
Required Statutory Capital and Surplus | 5,287 | 3,620 | |
Net income from insurance subsidiaries | 3,226 | 1,671 | 1,519 |
Domestic | ALIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 2,162 | 2,155 | |
Required Statutory Capital and Surplus | 217 | 245 | |
Net income from insurance subsidiaries | 2 | 18 | 15 |
Domestic | AICK [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 19,304 | 15,275 | |
Required Statutory Capital and Surplus | 6,752 | 5,307 | |
Net income from insurance subsidiaries | 4,081 | 3,413 | 1,198 |
Domestic | SIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 79,475 | 74,502 | |
Required Statutory Capital and Surplus | 15,231 | 17,354 | |
Net income from insurance subsidiaries | 9,535 | 4,464 | |
Domestic | SID [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 9,799 | 9,820 | |
Required Statutory Capital and Surplus | 665 | 705 | |
Net income from insurance subsidiaries | 35 | 634 | |
Domestic | FNIC | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 36,104 | 35,428 | |
Required Statutory Capital and Surplus | 7,736 | 7,787 | |
Net income from insurance subsidiaries | -1,186 | -4,596 | |
Domestic | DSIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 82,243 | ||
Required Statutory Capital and Surplus | 11,361 | ||
Net income from insurance subsidiaries | 4,124 | ||
Domestic | ICC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 20,699 | ||
Required Statutory Capital and Surplus | 528 | ||
Net income from insurance subsidiaries | 1,565 | ||
Domestic | FATIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 10,538 | ||
Required Statutory Capital and Surplus | 500 | ||
Net income from insurance subsidiaries | -664 | ||
Domestic | COIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 29,011 | ||
Required Statutory Capital and Surplus | 8,424 | ||
Net income from insurance subsidiaries | -946 | ||
United Kingdom | AEL [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 290,916 | 246,292 | |
Required Statutory Capital and Surplus | 62,925 | 61,738 | |
Net income from insurance subsidiaries | 56,766 | 50,452 | 54,967 |
United Kingdom | MIC [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 130,169 | 95,649 | |
Required Statutory Capital and Surplus | 20,122 | 22,957 | |
Net income from insurance subsidiaries | 28,856 | 7,515 | |
Ireland | AIU [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 195,208 | 169,465 | |
Required Statutory Capital and Surplus | 37,865 | 43,124 | |
Net income from insurance subsidiaries | 50,697 | 34,223 | 20,767 |
Bermuda | AII [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 679,967 | 445,077 | |
Required Statutory Capital and Surplus | 244,509 | 221,330 | |
Net income from insurance subsidiaries | 78,142 | 5,282 | 107,980 |
LUXEMBOURG | AILSA [Member] | |||
Statutory Accounting Practices [Line Items] | |||
Statutory Capital and Surplus | 6,874 | 7,204 | |
Required Statutory Capital and Surplus | 6,526 | 6,165 | |
Net income from insurance subsidiaries | $207 | ($27) |
Geographic_Information_Narrati
Geographic Information (Narrative) (Details) (Geographic Concentration Risk) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Written Premiums | United Kingdom | |||
Concentration Risk [Line Items] | |||
Concentration risk | 43.00% | 38.00% | |
Written Premiums | Foreign | |||
Concentration Risk [Line Items] | |||
Concentration risk | 21.00% | 27.00% | 29.00% |
Written Premiums | ITALY | |||
Concentration Risk [Line Items] | |||
Concentration risk | 42.00% | ||
Assets, Total | Foreign | |||
Concentration Risk [Line Items] | |||
Concentration risk | 45.00% | 51.00% | |
Revenue | Foreign | |||
Concentration Risk [Line Items] | |||
Concentration risk | 66.00% | 83.00% | 72.00% |
Geographic_Information_Compone
Geographic Information (Components of Income Before Equity in Earnings) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before equity in earnings (loss) of unconsolidated subsidiaries | $471,933 | $367,046 | $196,857 |
Domestic | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before equity in earnings (loss) of unconsolidated subsidiaries | 267,486 | 243,566 | 79,638 |
Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Income before equity in earnings (loss) of unconsolidated subsidiaries | $204,447 | $123,480 | $117,219 |
Geographic_Information_Operati
Geographic Information (Operations by Geographic Segment) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $4,084,331 | $2,697,895 | $1,668,174 |
Property and equipment | 154,175 | 104,299 | |
Domestic | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,394,497 | 468,980 | 467,617 |
Property and equipment | 143,027 | 95,689 | 72,899 |
Bermuda | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,417,781 | 1,600,809 | 984,582 |
Property and equipment | 0 | 0 | 0 |
Other Foreign | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,272,053 | 628,106 | 215,975 |
Property and equipment | $11,148 | $8,610 | $3,034 |
Segments_Results_of_Operations
Segments (Results of Operations of Business Segments) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of Operating Segments | 3 | ||||||||||
Gross written premium | $6,087,965 | $4,116,911 | $2,749,326 | ||||||||
Net premium written | 3,956,618 | 2,565,673 | 1,648,037 | ||||||||
Change in unearned premium | -430,054 | -299,683 | -229,185 | ||||||||
Net earned premium | 908,163 | 914,413 | 874,937 | 829,051 | 707,562 | 613,895 | 536,539 | 407,994 | 3,526,564 | 2,265,990 | 1,418,852 |
Loss and loss adjustment expense | -587,464 | -609,352 | -587,233 | -558,570 | -470,416 | -410,579 | -364,110 | -272,256 | -2,342,619 | -1,517,361 | -922,675 |
Acquisition costs and other underwriting expenses | -236,742 | -225,512 | -208,060 | -186,609 | -165,745 | -137,186 | -129,946 | -100,285 | -856,923 | -533,162 | -356,005 |
Operating Expenses | -3,199,542 | -2,050,523 | -1,278,680 | ||||||||
Underwriting income | 327,022 | 215,467 | 140,172 | ||||||||
Service, fee and other revenues | 409,743 | 331,559 | 172,174 | ||||||||
Investment income and realized gain (loss) | 148,024 | 100,346 | 77,148 | ||||||||
Other expenses | -157,678 | -103,493 | -87,588 | -87,591 | -68,285 | -90,195 | -80,985 | -52,152 | -436,350 | -291,617 | -177,709 |
Interest expense including loss on extinguishment of debt | -55,688 | -34,691 | -28,508 | ||||||||
Foreign currency gain (loss) | 60,245 | -6,533 | -242 | ||||||||
Gain on life settlement contracts | 12,306 | 3,800 | 13,822 | ||||||||
Acquisition gain | 0 | 48,715 | 0 | ||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 6,631 | 0 | 0 | ||||||||
Provision for income taxes | -15,940 | 7,664 | -17,966 | -27,444 | -30,628 | -23,880 | -27,402 | -16,109 | -53,686 | -98,019 | -21,292 |
Equity in earnings of unconsolidated subsidiary – related party | 28,351 | 11,566 | 9,295 | ||||||||
Net income | 83,525 | 157,156 | 104,189 | 101,728 | 66,506 | 59,689 | 71,397 | 83,001 | 446,598 | 280,593 | 184,860 |
Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 3,526,564 | 2,265,990 | 1,418,852 | ||||||||
Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premium | 2,999,714 | 1,659,980 | 933,740 | ||||||||
Net premium written | 1,882,383 | 935,313 | 474,381 | ||||||||
Change in unearned premium | -275,578 | -101,501 | -57,816 | ||||||||
Net earned premium | 1,606,805 | 833,812 | 416,565 | ||||||||
Loss and loss adjustment expense | -1,055,521 | -548,598 | -270,843 | ||||||||
Acquisition costs and other underwriting expenses | -416,965 | -212,824 | -110,895 | ||||||||
Operating Expenses | -1,472,486 | -761,422 | -381,738 | ||||||||
Underwriting income | 134,319 | 72,390 | 34,827 | ||||||||
Service, fee and other revenues | 95,430 | 87,519 | 53,886 | ||||||||
Investment income and realized gain (loss) | 62,810 | 34,665 | 27,217 | ||||||||
Other expenses | -215,002 | -117,583 | -54,788 | ||||||||
Interest expense including loss on extinguishment of debt | -27,439 | -13,987 | -9,682 | ||||||||
Foreign currency gain (loss) | 0 | 0 | 0 | ||||||||
Gain on life settlement contracts | 6,064 | 1,532 | 4,694 | ||||||||
Acquisition gain | 23,183 | 0 | |||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 6,631 | ||||||||||
Provision for income taxes | -6,741 | -24,389 | -5,800 | ||||||||
Equity in earnings of unconsolidated subsidiary – related party | 0 | 0 | 0 | ||||||||
Net income | 56,072 | 63,330 | 50,354 | ||||||||
Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premium | 1,983,052 | 1,511,649 | 1,118,710 | ||||||||
Net premium written | 1,333,747 | 944,081 | 624,555 | ||||||||
Change in unearned premium | -101,509 | -132,244 | -82,982 | ||||||||
Net earned premium | 1,232,238 | 811,837 | 541,573 | ||||||||
Loss and loss adjustment expense | -817,780 | -545,516 | -341,196 | ||||||||
Acquisition costs and other underwriting expenses | -253,794 | -151,188 | -112,491 | ||||||||
Operating Expenses | -1,071,574 | -696,704 | -453,687 | ||||||||
Underwriting income | 160,664 | 115,133 | 87,886 | ||||||||
Service, fee and other revenues | 253,220 | 191,941 | 86,672 | ||||||||
Investment income and realized gain (loss) | 56,852 | 46,304 | 30,952 | ||||||||
Other expenses | -142,134 | -107,076 | -82,031 | ||||||||
Interest expense including loss on extinguishment of debt | -18,139 | -12,738 | -11,600 | ||||||||
Foreign currency gain (loss) | 60,245 | -6,533 | -242 | ||||||||
Gain on life settlement contracts | 4,008 | 1,395 | 5,624 | ||||||||
Acquisition gain | 25,532 | 0 | |||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 0 | ||||||||||
Provision for income taxes | -40,211 | -64,281 | -12,109 | ||||||||
Equity in earnings of unconsolidated subsidiary – related party | 0 | 0 | 0 | ||||||||
Net income | 334,505 | 189,677 | 105,152 | ||||||||
Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premium | 1,105,199 | 879,455 | 578,735 | ||||||||
Net premium written | 740,488 | 620,452 | 430,960 | ||||||||
Change in unearned premium | -61,876 | -100,081 | -82,392 | ||||||||
Net earned premium | 678,612 | 520,371 | 348,568 | ||||||||
Loss and loss adjustment expense | -456,422 | -355,067 | -238,302 | ||||||||
Acquisition costs and other underwriting expenses | -183,541 | -138,650 | -98,415 | ||||||||
Operating Expenses | -639,963 | -493,717 | -336,717 | ||||||||
Underwriting income | 38,649 | 26,654 | 11,851 | ||||||||
Service, fee and other revenues | 428 | 114 | 1,342 | ||||||||
Investment income and realized gain (loss) | 27,994 | 18,464 | 16,362 | ||||||||
Other expenses | -79,214 | -62,295 | -33,958 | ||||||||
Interest expense including loss on extinguishment of debt | -10,110 | -7,411 | -6,001 | ||||||||
Foreign currency gain (loss) | 0 | 0 | 0 | ||||||||
Gain on life settlement contracts | 2,234 | 812 | 2,910 | ||||||||
Acquisition gain | 0 | 0 | |||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 0 | ||||||||||
Provision for income taxes | 2,148 | 5,989 | 774 | ||||||||
Equity in earnings of unconsolidated subsidiary – related party | 0 | 0 | 0 | ||||||||
Net income | -17,871 | -17,673 | -6,720 | ||||||||
Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premium | 0 | 65,827 | 118,141 | ||||||||
Net premium written | 0 | 65,827 | 118,141 | ||||||||
Change in unearned premium | 8,909 | 34,143 | -5,995 | ||||||||
Net earned premium | 8,909 | 99,970 | 112,146 | ||||||||
Loss and loss adjustment expense | -12,896 | -68,180 | -72,334 | ||||||||
Acquisition costs and other underwriting expenses | -2,623 | -30,500 | -34,204 | ||||||||
Operating Expenses | -15,519 | -98,680 | -106,538 | ||||||||
Underwriting income | -6,610 | 1,290 | 5,608 | ||||||||
Service, fee and other revenues | 0 | 0 | 0 | ||||||||
Investment income and realized gain (loss) | 368 | 913 | 2,617 | ||||||||
Other expenses | 0 | -4,663 | -6,932 | ||||||||
Interest expense including loss on extinguishment of debt | 0 | -555 | -1,225 | ||||||||
Foreign currency gain (loss) | 0 | 0 | 0 | ||||||||
Gain on life settlement contracts | 0 | 61 | 594 | ||||||||
Acquisition gain | 0 | 0 | |||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 0 | ||||||||||
Provision for income taxes | 670 | 748 | -68 | ||||||||
Equity in earnings of unconsolidated subsidiary – related party | 0 | 0 | 0 | ||||||||
Net income | -5,572 | -2,206 | 594 | ||||||||
Operating Segments [Member] | Corporate and Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Gross written premium | 0 | 0 | 0 | ||||||||
Net premium written | 0 | 0 | 0 | ||||||||
Change in unearned premium | 0 | 0 | 0 | ||||||||
Net earned premium | 0 | 0 | |||||||||
Loss and loss adjustment expense | 0 | 0 | 0 | ||||||||
Acquisition costs and other underwriting expenses | 0 | 0 | 0 | ||||||||
Operating Expenses | 0 | 0 | |||||||||
Underwriting income | 0 | 0 | 0 | ||||||||
Service, fee and other revenues | 60,665 | 51,985 | 30,274 | ||||||||
Investment income and realized gain (loss) | 0 | 0 | 0 | ||||||||
Other expenses | 0 | 0 | 0 | ||||||||
Interest expense including loss on extinguishment of debt | 0 | 0 | 0 | ||||||||
Foreign currency gain (loss) | 0 | 0 | 0 | ||||||||
Gain on life settlement contracts | 0 | 0 | 0 | ||||||||
Acquisition gain | 0 | 0 | |||||||||
Gain (Loss) on Disposition of Stock in Subsidiary | 0 | ||||||||||
Provision for income taxes | -9,552 | -16,086 | -4,089 | ||||||||
Equity in earnings of unconsolidated subsidiary – related party | 28,351 | 11,566 | 9,295 | ||||||||
Net income | 79,464 | 47,465 | 35,480 | ||||||||
Workers' compensation | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 1,321,886 | 831,158 | 436,547 | ||||||||
Workers' compensation | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 1,061,130 | 665,087 | 340,221 | ||||||||
Workers' compensation | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Workers' compensation | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 260,756 | 166,071 | 96,326 | ||||||||
Workers' compensation | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Warranty | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 433,944 | 399,930 | 236,862 | ||||||||
Warranty | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Warranty | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 433,710 | 397,978 | 226,559 | ||||||||
Warranty | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 234 | 1,952 | 10,303 | ||||||||
Warranty | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Other liability | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 424,715 | 271,160 | 191,443 | ||||||||
Other liability | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 98,846 | 37,308 | 25,996 | ||||||||
Other liability | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 198,505 | 108,018 | 93,914 | ||||||||
Other liability | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 127,364 | 125,827 | 71,526 | ||||||||
Other liability | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 7 | 7 | ||||||||
Commercial auto and liability, physical damage | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 305,723 | 182,828 | 132,116 | ||||||||
Commercial auto and liability, physical damage | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 162,377 | 51,623 | 26,893 | ||||||||
Commercial auto and liability, physical damage | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 25,255 | 13,631 | 8,516 | ||||||||
Commercial auto and liability, physical damage | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 116,528 | 108,962 | 89,599 | ||||||||
Commercial auto and liability, physical damage | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 1,563 | 8,612 | 7,108 | ||||||||
Medical malpractice | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 176,608 | 191,217 | 170,078 | ||||||||
Medical malpractice | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Medical malpractice | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 176,608 | 191,217 | 170,078 | ||||||||
Medical malpractice | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Medical malpractice | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 0 | 0 | 0 | ||||||||
Other | Operating Segments [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 863,688 | 389,697 | 251,806 | ||||||||
Other | Operating Segments [Member] | Small Commercial Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 284,452 | 79,794 | 23,455 | ||||||||
Other | Operating Segments [Member] | Specialty Risk and Extended Warranty | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 398,160 | 100,993 | 42,506 | ||||||||
Other | Operating Segments [Member] | Specialty Program | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | 173,730 | 117,559 | 80,814 | ||||||||
Other | Operating Segments [Member] | Personal Lines Reinsurance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net earned premium | $7,346 | $91,351 | $105,031 |
Segments_Long_Lived_Assets_and
Segments (Long Lived Assets and Total Assets of Business Segments) (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | $154,175 | $104,299 |
Goodwill and intangible assets | 667,681 | 665,393 |
Total assets | 13,847,368 | 11,279,126 |
Operating Segments [Member] | Small Commercial Business | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | 75,966 | 42,054 |
Goodwill and intangible assets | 285,583 | 233,566 |
Total assets | 6,142,645 | 4,261,764 |
Operating Segments [Member] | Specialty Risk and Extended Warranty | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | 50,220 | 38,297 |
Goodwill and intangible assets | 348,216 | 399,954 |
Total assets | 5,441,378 | 5,036,121 |
Operating Segments [Member] | Specialty Program | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | 27,989 | 22,280 |
Goodwill and intangible assets | 33,882 | 31,873 |
Total assets | 2,248,901 | 1,894,538 |
Operating Segments [Member] | Personal Lines Reinsurance | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | 0 | 1,668 |
Goodwill and intangible assets | 0 | 0 |
Total assets | 14,444 | 86,703 |
Operating Segments [Member] | Corporate and Other | ||
Segment Reporting Information [Line Items] | ||
Fixed assets | 0 | 0 |
Goodwill and intangible assets | 0 | 0 |
Total assets | $0 | $0 |
Quarterly_Financial_Data_Unaud2
Quarterly Financial Data (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Data [Abstract] | |||||||||||
Earned premium | $908,163 | $914,413 | $874,937 | $829,051 | $707,562 | $613,895 | $536,539 | $407,994 | $3,526,564 | $2,265,990 | $1,418,852 |
Investment income | 35,928 | 34,552 | 32,594 | 28,527 | 20,800 | 23,290 | 22,634 | 18,095 | 131,601 | 84,819 | 68,167 |
Revenue, Net | 1,047,743 | 1,071,634 | 1,010,979 | 953,975 | 816,389 | 728,278 | 649,342 | 503,886 | |||
Loss and loss adjustment expense | 587,464 | 609,352 | 587,233 | 558,570 | 470,416 | 410,579 | 364,110 | 272,256 | 2,342,619 | 1,517,361 | 922,675 |
Acquisition costs and other underwriting expense | 236,742 | 225,512 | 208,060 | 186,609 | 165,745 | 137,186 | 129,946 | 100,285 | 856,923 | 533,162 | 356,005 |
Other | 157,678 | 103,493 | 87,588 | 87,591 | 68,285 | 90,195 | 80,985 | 52,152 | 436,350 | 291,617 | 177,709 |
Provision for income taxes | 15,940 | -7,664 | 17,966 | 27,444 | 30,628 | 23,880 | 27,402 | 16,109 | 53,686 | 98,019 | 21,292 |
Net income | 83,525 | 157,156 | 104,189 | 101,728 | 66,506 | 59,689 | 71,397 | 83,001 | 446,598 | 280,593 | 184,860 |
Net income attributable to Common Shareholders | $71,561 | $156,590 | $106,274 | $99,851 | $64,724 | $58,238 | $71,397 | $83,878 | $447,014 | $282,226 | $177,987 |
Basic earnings per share | $0.94 | $2.09 | $1.41 | $1.34 | $0.87 | $0.78 | $0.96 | $1.13 | $5.78 | $3.75 | $2.42 |
Diluted earnings per share | $0.88 | $1.97 | $1.33 | $1.27 | $0.82 | $0.74 | $0.93 | $1.08 | $5.45 | $3.56 | $2.34 |
Quarterly_Financial_Data_Unaud3
Quarterly Financial Data (Unaudited) (Narrative) (Details) (USD $) | 12 Months Ended | 1 Months Ended | 3 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 19, 2013 | Dec. 31, 2014 | Jun. 30, 2013 |
Acquisition gain | $0 | $48,715 | $0 | |||
Sequoia Insurance Company | ||||||
Acquisition gain | 5,231 | 5,231 | ||||
Sequoia Insurance Company | Retrospective Loss on Pretax on Acquisition | Restatement Adjustment | ||||||
Acquisition gain | 13,309 | |||||
Sequoia Insurance Company | Retrospective Loss After Tax on Acquisition | Restatement Adjustment | ||||||
Acquisition gain | 18,511 | |||||
FNIC | Retrospective Loss on Pretax on Acquisition | Restatement Adjustment | ||||||
Acquisition gain | 5,231 | |||||
FNIC | Retrospective Loss After Tax on Acquisition | Restatement Adjustment | ||||||
Acquisition gain | $17,951 |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | 2 Months Ended | 0 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Feb. 27, 2015 | Jan. 06, 2015 | |
Subsequent Event [Line Items] | |||||||||||||
Proceeds from issuance of common stock | ($59,155,000) | $472,000 | $0 | ||||||||||
Net earned premium | 908,163,000 | 914,413,000 | 874,937,000 | 829,051,000 | 707,562,000 | 613,895,000 | 536,539,000 | 407,994,000 | 3,526,564,000 | 2,265,990,000 | 1,418,852,000 | ||
Oryx Insurance Brokerage Inc. | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Net earned premium | 80,000,000 | ||||||||||||
Number of agencies, over | 135 | ||||||||||||
Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Number of shares sold | 3,450,000 | ||||||||||||
Proceeds from issuance of common stock | 172,500,000 | ||||||||||||
Issuance cost | 250,000 | ||||||||||||
Subsequent Event | TMI Solutions | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Cash paid | 29,000,000 | ||||||||||||
Subsequent Event | Oryx Insurance Brokerage Inc. | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Cash paid | 29,700,000 | ||||||||||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Notes submitted for conversion, amount | 3,500,000 | ||||||||||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Convertible Senior Notes | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Notes submitted for conversion, amount | 50,105,000 | ||||||||||||
Principal amount per note used in conversion rate | 1,000 | ||||||||||||
Conversion rate for conversion of convertible senior notes | 38.5985 | ||||||||||||
5.5% Convertible senior notes due 2021 (the 2021 Notes) | Convertible Senior Notes | Subsequent Event | |||||||||||||
Subsequent Event [Line Items] | |||||||||||||
Principal amount per note used in conversion rate | 31,011,000 | ||||||||||||
Repayments of convertible debt | $31,011,000 | ||||||||||||
Conversion rate for conversion of convertible senior notes | 616,202 |
Schedule_I_Summary_of_Investme1
Schedule I - Summary of Investments Other Than Investments in Related Parties (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | $4,341,730 | |
Value | 4,456,169 | |
Amount at which Shown in Balance Sheet | 4,456,169 | |
Amount reclassified from fixed maturities available-for-sale | 0 | 311,518 |
U.S. government agencies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 1,009,704 | |
Value | 1,033,190 | |
Amount at which Shown in Balance Sheet | 1,033,190 | |
States, municipalities and political subdivisions | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 469,646 | |
Value | 482,041 | |
Amount at which Shown in Balance Sheet | 482,041 | |
Foreign governments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 106,054 | |
Value | 112,731 | |
Amount at which Shown in Balance Sheet | 112,731 | |
Utilities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 137,169 | |
Value | 138,692 | |
Amount at which Shown in Balance Sheet | 138,692 | |
All other corporate bonds | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 2,414,573 | |
Value | 2,486,620 | |
Amount at which Shown in Balance Sheet | 2,486,620 | |
Redeemable preferred stock | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 0 | |
Value | 0 | |
Amount at which Shown in Balance Sheet | 0 | |
Fixed Maturities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 4,137,146 | |
Value | 4,253,274 | |
Amount at which Shown in Balance Sheet | 4,253,274 | |
Public utilities Banks, trust and insurance companies | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 13,323 | |
Value | 13,712 | |
Amount at which Shown in Balance Sheet | 13,712 | |
Industrial, miscellaneous and all other Nonredeemable preferred stocks | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 96,159 | |
Value | 94,081 | |
Amount at which Shown in Balance Sheet | 94,081 | |
Equity Securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 109,482 | |
Value | 107,793 | |
Amount at which Shown in Balance Sheet | 107,793 | |
Short-term investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 63,916 | |
Value | 63,916 | |
Amount at which Shown in Balance Sheet | 63,916 | |
Other invested assets | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Cost | 31,186 | |
Value | 31,186 | |
Amount at which Shown in Balance Sheet | $31,186 |
Schedule_II_Condensed_Financia1
Schedule II -Condensed Financial Information of Registrant Balance Sheet (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash | $902,750 | $830,022 | $414,370 | $406,847 |
Invested assets | 4,575,881 | 3,657,309 | ||
Total assets | 13,847,368 | 11,279,126 | ||
6.125% Notes due 2023 | 14,500 | 14,500 | ||
5.5% due 2021 Convertible senior notes | 214,424 | 164,218 | ||
2.75% due 2044 Convertible senior notes | 250,000 | 250,000 | ||
Junior subordinated debt | 123,714 | 123,714 | ||
Revolving credit facility | 120,000 | 0 | ||
Secured Debt | 35,233 | 7,742 | ||
Other liabilities | 795,877 | 672,575 | ||
Total liabilities | 11,650,567 | 9,699,661 | ||
Common stock | 980 | 980 | ||
Preferred stock, $.01 par value; 10,000 shares authorized, 4,785 and 4,600 issued and outstanding in 2014 and 2013, respectively | 300,000 | 115,000 | ||
Paid-in and contributed capital | 1,022,769 | 1,033,084 | ||
Treasury shares | -297,586 | -284,891 | ||
Accumulated other comprehensive income | 56,123 | -8,164 | ||
Retained earnings | 954,734 | 584,996 | ||
Total AmTrust Financial Services, Inc. equity | 2,037,020 | 1,441,005 | 1,144,121 | 890,563 |
Liabilities and Equity, Total | 13,847,368 | 11,279,126 | ||
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash | 7,690 | 1,495 | 6,877 | 0 |
Invested assets | 1,353 | 67 | ||
Carrying value of subsidiaries, at equity | 2,826,090 | 1,949,997 | ||
Other assets | 549,780 | 358,881 | ||
Total assets | 3,384,913 | 2,310,440 | ||
Due to affiliates – net | 322,243 | 207,540 | ||
6.125% Notes due 2023 | 250,000 | 250,000 | ||
5.5% due 2021 Convertible senior notes | 56,745 | 164,218 | ||
2.75% due 2044 Convertible senior notes | 157,679 | 0 | ||
Junior subordinated debt | 123,714 | 123,714 | ||
Revolving credit facility | 120,000 | 0 | ||
Secured Debt | 28,572 | 0 | ||
Other liabilities | 288,940 | 123,963 | ||
Total liabilities | 1,347,893 | 869,435 | ||
Common stock | 980 | 980 | ||
Paid-in and contributed capital | 1,022,769 | 1,033,084 | ||
Treasury shares | -297,586 | -284,891 | ||
Accumulated other comprehensive income | 56,123 | -8,164 | ||
Retained earnings | 954,734 | 584,996 | ||
Total AmTrust Financial Services, Inc. equity | 2,037,020 | 1,441,005 | ||
Liabilities and Equity, Total | $3,384,913 | $2,310,440 |
Schedule_II_Condensed_Financia2
Schedule II -Condensed Financial Information of Registrant Income Statement (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Acquisition gain on purchase | $0 | $48,715 | $0 | ||||||||
Total revenues | 4,084,331 | 2,697,895 | 1,668,174 | ||||||||
Interest expense | 45,857 | 34,691 | 28,508 | ||||||||
Loss on extinguishment of debt | 9,831 | 0 | 0 | ||||||||
Federal tax (benefit) expense | 15,940 | -7,664 | 17,966 | 27,444 | 30,628 | 23,880 | 27,402 | 16,109 | 53,686 | 98,019 | 21,292 |
Other expenses from operations | 157,678 | 103,493 | 87,588 | 87,591 | 68,285 | 90,195 | 80,985 | 52,152 | 436,350 | 291,617 | 177,709 |
Net income | 83,525 | 157,156 | 104,189 | 101,728 | 66,506 | 59,689 | 71,397 | 83,001 | 446,598 | 280,593 | 184,860 |
Parent | |||||||||||
Investment income | 183 | 207 | 227 | ||||||||
Equity in undistributed net income of consolidated subsidiaries and partially-owned companies | 539,915 | 319,738 | 218,123 | ||||||||
Acquisition gain on purchase | 0 | 23,183 | 0 | ||||||||
Miscellaneous income (expense) | 641 | 6 | 12 | ||||||||
Total revenues | 540,739 | 343,134 | 218,362 | ||||||||
Interest expense | 32,016 | 22,178 | 16,159 | ||||||||
Loss on extinguishment of debt | 9,831 | 0 | 0 | ||||||||
Federal tax (benefit) expense | -4,800 | 10,087 | -1,099 | ||||||||
Other expenses from operations | 57,094 | 30,276 | 18,442 | ||||||||
Total Expenses | 94,141 | 62,541 | 33,502 | ||||||||
Net income | $446,598 | $280,593 | $184,860 |
Schedule_II_Condensed_Financia3
Schedule II -Condensed Financial Information of Registrant Cash Flow (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Net income | $83,525 | $157,156 | $104,189 | $101,728 | $66,506 | $59,689 | $71,397 | $83,001 | $446,598 | $280,593 | $184,860 |
Stock based compensation | 19,114 | 11,186 | 7,172 | ||||||||
Discount on note | 3,095 | 3,000 | 2,936 | ||||||||
Dividend received from equity investment | 0 | 12,203 | 0 | ||||||||
Loss on extinguishment of debt | 9,831 | 0 | 0 | ||||||||
Equity (earnings) losses and gain on investments in unconsolidated subsidiaries | -28,351 | -11,566 | -9,295 | ||||||||
Other assets | -123,621 | -310,177 | -83,692 | ||||||||
Net cash provided by operating activities | 1,155,536 | 915,448 | 531,455 | ||||||||
Acquisition of subsidiary companies, net of cash acquired | -80,736 | -20,182 | -63,855 | ||||||||
Net cash used in investing activities | -1,051,994 | -929,551 | -593,973 | ||||||||
Financing fees | -5,188 | -2,740 | -2,180 | ||||||||
Common share (repurchase) issuance, net | 10,589 | 5,387 | 8,873 | ||||||||
Net proceeds from issuance of preferred stock | 178,641 | 111,130 | 0 | ||||||||
Dividends paid | -55,599 | -29,236 | -30,201 | ||||||||
Dividends distributed on preference stock | -12,738 | -3,989 | 0 | ||||||||
Net cash (used in) provided by financing activities | -15,066 | 426,860 | 66,771 | ||||||||
Net increase in cash and cash equivalents | 72,728 | 415,652 | 7,523 | ||||||||
Cash and cash equivalents, beginning year | 830,022 | 414,370 | 830,022 | 414,370 | 406,847 | ||||||
Cash and cash equivalents, end of year | 902,750 | 830,022 | 902,750 | 830,022 | 414,370 | ||||||
Parent | |||||||||||
Net income | 446,598 | 280,593 | 184,860 | ||||||||
Depreciation and amortization | 6,678 | 3,593 | 830 | ||||||||
Stock based compensation | 19,114 | 11,186 | 7,172 | ||||||||
Discount on note | 3,095 | 3,000 | -2,150 | ||||||||
Dividend received from equity investment | 0 | 12,203 | 0 | ||||||||
Loss on extinguishment of debt | 9,831 | 0 | 0 | ||||||||
Carrying value of equity interest in subsidiaries | -414,021 | -449,176 | -227,632 | ||||||||
Equity (earnings) losses and gain on investments in unconsolidated subsidiaries | -28,351 | -11,566 | -9,295 | ||||||||
Other assets | -128,866 | -135,799 | -80,993 | ||||||||
Due to (due from) affiliates | 114,703 | -14,636 | 179,522 | ||||||||
Other liabilities | 146,715 | 64,774 | 3,397 | ||||||||
Net cash provided by operating activities | 175,496 | -235,828 | 55,711 | ||||||||
Capital expenditures | -31,097 | -2,455 | -107 | ||||||||
Investment purchased | -1,286 | 0 | 0 | ||||||||
Investment in subsidiary | -285,783 | -22,605 | -1,455 | ||||||||
Acquisition of subsidiary companies, net of cash acquired | -123,887 | -78,193 | -42,694 | ||||||||
Net cash used in investing activities | -442,053 | -103,253 | -44,256 | ||||||||
Issuance of debt | 318,900 | 250,000 | 25,000 | ||||||||
Payment of debt | -101,928 | 0 | -7,500 | ||||||||
Financing fees | -4,143 | -2,740 | -750 | ||||||||
Common share (repurchase) issuance, net | -50,379 | 8,534 | 8,873 | ||||||||
Net proceeds from issuance of preferred stock | 178,641 | 111,130 | 0 | ||||||||
Dividends paid | -55,601 | -29,236 | -30,201 | ||||||||
Dividends distributed on preference stock | -12,738 | -3,989 | 0 | ||||||||
Net cash (used in) provided by financing activities | 272,752 | 333,699 | -4,578 | ||||||||
Net increase in cash and cash equivalents | 6,195 | -5,382 | 6,877 | ||||||||
Cash and cash equivalents, beginning year | 1,495 | 6,877 | 1,495 | 6,877 | 0 | ||||||
Cash and cash equivalents, end of year | $7,690 | $1,495 | $7,690 | $1,495 | $6,877 |
Schedule_III_Supplementary_Ins1
Schedule III - Supplementary Insurance Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplementary Insurance Information, by Segment [Line Items] | |||
Net written premium | $3,956,618 | $2,565,673 | $1,648,037 |
Operating Segments [Member] | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 628,383 | 468,404 | 349,126 |
Reserves for Losses and Loss Expenses, Future Policy Benefits | 5,664,205 | 4,368,234 | 2,426,400 |
Reserves for Unearned Premiums | 3,447,203 | 2,680,982 | 1,773,593 |
Premium Revenue | 3,526,564 | 2,265,990 | 1,418,852 |
Net Investment Income | 131,601 | 84,819 | 68,167 |
Losses and Loss Expenses Incurred, Benefits | 2,342,619 | 1,517,361 | 922,675 |
Amortization of Deferred Policy Acquisition Costs | 538,710 | 367,288 | 242,887 |
Other Operating Expenses | 318,213 | 165,874 | 112,798 |
Premiums Written | 3,956,618 | 2,565,673 | 1,648,037 |
Operating Segments [Member] | Small Commercial Business | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 179,771 | 98,275 | 58,690 |
Reserves for Losses and Loss Expenses, Future Policy Benefits | 2,854,379 | 1,982,977 | 1,266,261 |
Reserves for Unearned Premiums | 1,193,628 | 704,234 | 413,707 |
Premium Revenue | 1,606,805 | 833,812 | 416,565 |
Net Investment Income | 55,842 | 29,301 | 24,049 |
Losses and Loss Expenses Incurred, Benefits | 1,055,521 | 548,598 | 270,843 |
Amortization of Deferred Policy Acquisition Costs | 276,876 | 143,036 | 60,709 |
Other Operating Expenses | 140,089 | 69,788 | 49,866 |
Net written premium | 1,882,383 | 935,313 | 474,381 |
Premiums Written | 1,882,383 | 935,313 | 474,381 |
Operating Segments [Member] | Specialty Risk and Extended Warranty | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 389,763 | 310,230 | 234,490 |
Reserves for Losses and Loss Expenses, Future Policy Benefits | 1,669,293 | 1,537,887 | 605,366 |
Reserves for Unearned Premiums | 1,832,560 | 1,599,167 | 1,063,999 |
Premium Revenue | 1,232,238 | 811,837 | 541,573 |
Net Investment Income | 50,544 | 39,139 | 27,349 |
Losses and Loss Expenses Incurred, Benefits | 817,780 | 545,516 | 341,196 |
Amortization of Deferred Policy Acquisition Costs | 152,141 | 114,662 | 94,945 |
Other Operating Expenses | 101,653 | 36,526 | 17,546 |
Net written premium | 1,333,747 | 944,081 | 624,555 |
Premiums Written | 1,333,747 | 944,081 | 624,555 |
Operating Segments [Member] | Specialty Program | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 58,502 | 56,949 | 42,468 |
Reserves for Losses and Loss Expenses, Future Policy Benefits | 1,126,436 | 817,272 | 524,928 |
Reserves for Unearned Premiums | 421,015 | 368,673 | 252,835 |
Premium Revenue | 678,612 | 520,371 | 348,568 |
Net Investment Income | 24,888 | 15,607 | 14,457 |
Losses and Loss Expenses Incurred, Benefits | 456,422 | 355,067 | 238,302 |
Amortization of Deferred Policy Acquisition Costs | 107,074 | 86,317 | 63,775 |
Other Operating Expenses | 76,467 | 52,333 | 34,640 |
Net written premium | 740,488 | 620,452 | 430,960 |
Premiums Written | 740,488 | 620,452 | 430,960 |
Operating Segments [Member] | Personal Lines Reinsurance | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred Policy Acquisition Costs | 347 | 2,950 | 13,478 |
Reserves for Losses and Loss Expenses, Future Policy Benefits | 14,097 | 30,098 | 29,845 |
Reserves for Unearned Premiums | 0 | 8,908 | 43,052 |
Premium Revenue | 8,909 | 99,970 | 112,146 |
Net Investment Income | 327 | 772 | 2,312 |
Losses and Loss Expenses Incurred, Benefits | 12,896 | 68,180 | 72,334 |
Amortization of Deferred Policy Acquisition Costs | 2,619 | 23,273 | 23,458 |
Other Operating Expenses | 4 | 7,227 | 10,746 |
Net written premium | 0 | 65,827 | 118,141 |
Premiums Written | $0 | $65,827 | $118,141 |
Schedule_IV_Reinsurance_Detail
Schedule IV - Reinsurance (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross Amount | $4,816,607 | $3,308,136 | $2,067,635 | ||||||||
Ceded to Other Companies | 1,852,236 | 1,297,009 | 918,791 | ||||||||
Amount from Other Companies | 562,193 | 254,863 | 270,008 | ||||||||
Net earned premium | 908,163 | 914,413 | 874,937 | 829,051 | 707,562 | 613,895 | 536,539 | 407,994 | 3,526,564 | 2,265,990 | 1,418,852 |
General Insurance | |||||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||||
Gross Amount | 5,422,484 | 3,869,893 | 2,494,846 | ||||||||
Ceded to Other Companies | 2,131,347 | 1,551,238 | 1,101,289 | ||||||||
Amount from Other Companies | 665,481 | 247,018 | 254,480 | ||||||||
Net earned premium | $3,956,618 | $2,565,673 | $1,648,037 | ||||||||
Premiums, percentage assumed to net | 16.80% | 9.60% | 15.40% |
Schedule_V_Consolidated_Supple1
Schedule V - Consolidated Supplementary Property and Casulty Insurance Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |||
Current Year | $2,324,062 | $1,486,418 | $909,818 |
Prior year | 18,557 | 30,943 | 12,857 |
Paid Losses and Loss Adjustment Expenses | $1,441,219 | $953,160 | $691,717 |