Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 22, 2017 | Jun. 30, 2016 | |
Entity Registrant Name | OneBeacon Insurance Group, Ltd. | ||
Entity Central Index Key | 1,369,817 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Public Float | $ 302,481,883 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Class A common | |||
Entity Common Stock, Shares Outstanding | 22,525,458 | ||
Class B common | |||
Entity Common Stock, Shares Outstanding | 71,754,738 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Investment Securities: | ||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | $ 2,169.1 | $ 2,080.5 |
Short-term investments, at amortized cost (which approximates fair value) | 112.1 | 69.2 |
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 188.7 | 298.7 |
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | 150.5 | 143 |
Total investment securities | 2,620.4 | 2,591.4 |
Cash | 69.6 | 95.2 |
Reinsurance recoverables | 179.5 | 193.5 |
Premiums receivable | 228.3 | 219 |
Deferred acquisition costs | 96.3 | 100.7 |
Ceded unearned premiums | 44.2 | 29.5 |
Net deferred tax asset | 126.7 | 140.2 |
Investment income accrued | 11.3 | 10.1 |
Accounts receivable on unsettled investment sales | 1.4 | 30.5 |
Other assets | 212.2 | 192.5 |
Total assets | 3,589.9 | 3,602.6 |
Liabilities | ||
Unpaid loss and loss adjustment expense reserves | 1,365.6 | 1,389.8 |
Unearned premiums | 575.1 | 560.3 |
Funds held under insurance contracts | 153 | 137.7 |
Debt | 273.2 | 272.9 |
Other liabilities | 197.8 | 237.4 |
Total liabilities | 2,564.7 | 2,598.1 |
OneBeacon's common shareholders' equity | ||
Preference shares (Par value $0.01; 80,000,000 authorized shares; none issued or outstanding) | 0 | 0 |
Common shares and paid-in surplus (Class A: par value $0.01; 200,000,000 authorized shares; 22,592,731 and 23,334,502 issued and outstanding)(Class B: par value $0.01; 200,000,000 authorized shares; 71,754,738 issued and outstanding for both periods) | 1,013.2 | 1,022 |
Retained earnings (deficit) | 12.3 | (15.9) |
Accumulated other comprehensive loss, after tax | (4.2) | (5.2) |
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 |
Noncontrolling interests | 3.9 | 3.6 |
Total OneBeacon's common shareholders' equity and noncontrolling interests | 1,025.2 | 1,004.5 |
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | $ 3,589.9 | $ 3,602.6 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fixed maturity investments, amortized cost | $ 2,164.4 | $ 2,078.3 |
Common equity securities, amortized cost | 182.3 | 295 |
Other investments, amortized cost | $ 120.9 | $ 135.6 |
Common shares, outstanding shares (in shares) | 94,347,469 | 95,089,240 |
Common shares, issued shares (in shares) | 94,347,469 | 95,089,240 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Units, Authorized | 80,000,000 | 80,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Class A common | ||
Common shares, outstanding shares (in shares) | 22,592,731 | 23,334,502 |
Common shares, issued shares (in shares) | 22,592,731 | 23,334,502 |
Common shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Class B common | ||
Common shares, outstanding shares (in shares) | 71,754,738 | 71,754,738 |
Common shares, issued shares (in shares) | 71,754,738 | 71,754,738 |
Common shares, authorized shares (in shares) | 200,000,000 | 200,000,000 |
Common shares, par value (in dollars per share) | $ 0.01 | $ 0.01 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||||||||||
Earned premiums | $ 1,100.6 | $ 1,176.2 | $ 1,177.1 | ||||||||
Net investment income | 50.6 | 45.9 | 43.4 | ||||||||
Net realized and change in unrealized investment gains | 37.7 | (35.1) | 40.4 | ||||||||
Net other revenues (expenses) | 5.5 | (0.6) | 5.8 | ||||||||
Total revenues | $ 267.9 | $ 307 | $ 309 | $ 310.5 | $ 296.2 | $ 267.8 | $ 314.2 | $ 308.2 | 1,194.4 | 1,186.4 | 1,266.7 |
Expenses | |||||||||||
Loss and loss adjustment expenses | 656 | 700.7 | 815.1 | ||||||||
Policy acquisition expenses | 206 | 213.8 | 203.3 | ||||||||
Other underwriting expenses | 209 | 218.2 | 179.2 | ||||||||
General and administrative expenses | 14.2 | 15.4 | 13.8 | ||||||||
Interest expense | 13.1 | 13 | 13 | ||||||||
Total expenses | 265.9 | 274.1 | 286 | 272.3 | 285.1 | 284.6 | 311.3 | 280.1 | 1,098.3 | 1,161.1 | 1,224.4 |
Pre-tax income from continuing operations | 2 | 32.9 | 23 | 38.2 | 11.1 | (16.8) | 2.9 | 28.1 | 96.1 | 25.3 | 42.3 |
Income tax benefit | 6.4 | (4.6) | 2 | 8.7 | 11.9 | 3.5 | 0.9 | (3.4) | 12.5 | 12.9 | 12.3 |
Net income from continuing operations | 8.4 | 28.3 | 25 | 46.9 | 23 | (13.3) | 3.8 | 24.7 | 108.6 | 38.2 | 54.6 |
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.1) | (0.1) | 0.1 | (0.1) | 0 | (0.2) | (20.6) |
Net income, including noncontrolling interests | 8.4 | 28.3 | 25 | 46.9 | 22.9 | (13.4) | 3.9 | 24.6 | 108.6 | 38 | 34 |
Less: Net income attributable to noncontrolling interests | (0.2) | 0 | (0.5) | (0.5) | (0.2) | 0 | (0.5) | (0.5) | (1.2) | (1.2) | (1.1) |
Net income attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | 107.4 | 36.8 | 32.9 |
Net change in benefit plan assets and obligations, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | $ 108.4 | $ 36.8 | $ 20.9 | ||||||||
Earnings per share attributable to OneBeacon's common shareholders—basic and diluted | |||||||||||
Net income from continuing operations, per share | $ 0.09 | $ 0.30 | $ 0.26 | $ 0.49 | $ 0.24 | $ (0.14) | $ 0.03 | $ 0.25 | $ 1.13 | $ 0.38 | $ 0.55 |
Net loss from discontinued operations, net of tax, per share | 0 | 0 | (0.21) | ||||||||
Net income attributable to OneBeacon's common shareholders per share | $ 0.09 | $ 0.30 | $ 0.26 | $ 0.49 | $ 0.24 | $ (0.14) | $ 0.03 | $ 0.25 | 1.13 | 0.38 | 0.34 |
Dividends declared and paid per OneBeacon's common share (in dollars per share) | $ 0.84 | $ 0.84 | $ 0.84 |
CONSOLIDATED STATEMENTS OF COMM
CONSOLIDATED STATEMENTS OF COMMON SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common shares outstanding | Common shares and paid-in surplus | Retained earnings (deficit) | Accum. other comprehensive income (loss) | Total OneBeacon common shareholders' equity | Noncontrolling interests, after tax |
Balances (in shares) at Dec. 31, 2013 | 95,404,138 | ||||||
Balances at Dec. 31, 2013 | $ 1,106.8 | $ 1,022.5 | $ 74.4 | $ 6.8 | $ 1,103.7 | $ 3.1 | |
Comprehensive income (loss): | |||||||
Net income | 34 | 0 | 32.9 | 0 | 32.9 | 1.1 | |
Other comprehensive loss, net of tax | (12) | 0 | 0 | (12) | (12) | 0 | |
Total comprehensive income (loss) | 22 | 0 | 32.9 | (12) | 20.9 | 1.1 | |
Amortization of restricted share awards | 3 | 3 | 0 | 0 | 3 | 0 | |
Issuance of common shares (in shares) | 1,115 | ||||||
Issuance of common shares | 0.2 | 0 | 0 | 0 | 0 | 0.2 | |
Repurchase and retirement of common shares (in shares) | (108,866) | ||||||
Repurchase and retirement of common shares | (1.8) | (1.8) | 0 | 0 | (1.8) | 0 | |
Dividends | (80.9) | 0 | (80) | 0 | (80) | (0.9) | |
Balances (in shares) at Dec. 31, 2014 | 95,296,387 | ||||||
Balances at Dec. 31, 2014 | 1,049.3 | 1,023.7 | 27.3 | (5.2) | 1,045.8 | 3.5 | |
Comprehensive income (loss): | |||||||
Net income | 38 | 0 | 36.8 | 0 | 36.8 | 1.2 | |
Other comprehensive loss, net of tax | 0 | 0 | 0 | 0 | 0 | 0 | |
Total comprehensive income (loss) | 38 | 0 | 36.8 | 0 | 36.8 | 1.2 | |
Amortization of restricted share awards | 2 | 2 | 0 | 0 | 2 | 0 | |
Issuance of common shares (in shares) | 81,000 | ||||||
Issuance of common shares | 0.1 | 0 | 0 | 0 | 0 | 0.1 | |
Repurchase and retirement of common shares (in shares) | (288,147) | ||||||
Repurchase and retirement of common shares | (3.7) | (3.7) | 0 | 0 | (3.7) | 0 | |
Dividends | $ (81.2) | 0 | (80) | 0 | (80) | (1.2) | |
Balances (in shares) at Dec. 31, 2015 | 95,089,240 | 95,089,240 | |||||
Balances at Dec. 31, 2015 | $ 1,004.5 | 1,022 | (15.9) | (5.2) | (1,000.9) | 3.6 | |
Comprehensive income (loss): | |||||||
Net income | 108.6 | 0 | 107.4 | 0 | 107.4 | 1.2 | |
Other comprehensive loss, net of tax | 1 | 0 | 0 | 1 | 1 | 0 | |
Total comprehensive income (loss) | 109.6 | 0 | 107.4 | 1 | 108.4 | 1.2 | |
Amortization of restricted share awards | 2.7 | 2.7 | 0 | 0 | 2.7 | 0 | |
Issuance of common shares (in shares) | 173,559 | ||||||
Issuance of common shares | 0.1 | 0 | 0 | 0 | 0 | 0.1 | |
Repurchase and retirement of common shares (in shares) | (915,330) | ||||||
Repurchase and retirement of common shares | (11.5) | (11.5) | 0 | 0 | (11.5) | 0 | |
Dividends | $ (80.2) | 0 | (79.2) | 0 | (79.2) | (1) | |
Balances (in shares) at Dec. 31, 2016 | 94,347,469 | 94,347,469 | |||||
Balances at Dec. 31, 2016 | $ 1,025.2 | $ 1,013.2 | $ 12.3 | $ (4.2) | $ 1,021.3 | $ 3.9 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operations: | |||
Net income including noncontrolling interests | $ 108.6 | $ 38 | $ 34 |
Charges (credits) to reconcile net income to cash flows provided from operations: | |||
Net loss from discontinued operations | 0 | 0.2 | 20.6 |
Net realized and change in unrealized investment gains | (37.7) | 35.1 | (40.4) |
Net adjustment to gain on sale of business | (0.5) | 3.7 | 0 |
Deferred income tax expense (benefit) | 15.4 | (5.8) | (19) |
Other operating items: | |||
Net change in loss and LAE reserves | (24.2) | 47.6 | 287.9 |
Net change in unearned premiums | 14.8 | (28) | 43.4 |
Net change in ceded unearned premium | (14.7) | (11.6) | (3.6) |
Net change in premiums receivable | (9.3) | 22.5 | (13.3) |
Net change in reinsurance recoverable on paid and unpaid losses | 14 | (19.7) | (83.9) |
Net change in funds held under reinsurance contracts | 0 | 37.1 | (35.3) |
Net change in funds held under insurance contracts | 15.3 | 56.7 | 17.7 |
Net change in other assets and liabilities | (34.4) | 16.6 | (56.1) |
Net cash provided from operations—continuing operations | 47.3 | 192.4 | 152 |
Net cash used for operations—discontinued operations | 0 | (0.5) | (54.5) |
Net cash provided from operations | 47.3 | 191.9 | 97.5 |
Cash flows from investing activities: | |||
Net maturities, purchases and sales of short-term investments | (42.9) | 133.1 | (65.5) |
Maturities of fixed maturity investments | 543.5 | 262.4 | 396.4 |
Sales of fixed maturity investments | 752.9 | 763.5 | 1,843.1 |
Sales of common equity securities | 384.9 | 345.6 | 240.2 |
Return of capital and distributions of other investments | 11.6 | 40.5 | 53.4 |
Purchases of fixed maturity investments | (1,395.9) | (1,333.5) | (2,206.8) |
Purchases of common equity securities | (260) | (323.5) | (202.4) |
Contributions for other investments | (1) | (4.2) | (81.9) |
Net change in unsettled investment purchases and sales | 29.1 | (23.8) | (15) |
Proceeds from sale of property and equipment | 0 | 56.8 | 0 |
Net acquisitions of property and equipment | (2.7) | (11.5) | (2.2) |
Net cash provided from (used for) investing activities—continuing operations | 19.5 | (94.6) | (40.7) |
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 |
Net cash provided from (used for) investing activities | 19.5 | (94.6) | (40.7) |
Cash flows from financing activities: | |||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) |
Repurchases and retirements of common stock | (11.5) | (3.7) | (1.8) |
Payments on capital lease obligation | (1.7) | (5.4) | (5.3) |
Net cash used for financing activities—continuing operations | (92.4) | (89.1) | (87.1) |
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 |
Net cash used for financing activities | (92.4) | (89.1) | (87.1) |
Net (decrease) increase in cash during period | (25.6) | 8.2 | (30.3) |
Cash transferred with sale of business | 0 | 0 | (50.8) |
Net (decrease) increase after cash transferred with sale of business | (25.6) | 8.2 | (81.1) |
Cash balance at beginning of period | 95.2 | 87 | 168.1 |
Cash balance at end of period | $ 69.6 | $ 95.2 | $ 87 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Operations and Summary of Significant Accounting Policies | Nature of Operations and Summary of Significant Accounting Policies Basis of presentation The accompanying consolidated financial statements include the accounts of OneBeacon Insurance Group, Ltd. (the "Company" or the "Registrant") and its subsidiaries (collectively, "OneBeacon") and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Company is an exempted Bermuda limited liability company with U.S.-based underwriting operating companies that are property and casualty insurance writers and a Bermuda-based reinsurance company, Split Rock Insurance, Ltd. ("Split Rock"). OneBeacon offers a wide range of specialty insurance products and services primarily through independent agencies, regional and national brokers, wholesalers and managing general agencies. OneBeacon is 76.1% owned by White Mountains Insurance Group, Ltd. ("White Mountains"), a holding company whose businesses provide property and casualty insurance, and certain other products. The Company's headquarters are located at 26 Reid Street, Hamilton HM 11, Bermuda. The Company's U.S. corporate headquarters are located at 605 North Highway 169, Plymouth, Minnesota, 55441 and its registered office is located at Clarendon House, 2 Church Street, Hamilton HM 11, Bermuda. On December 23, 2014, OneBeacon completed the sale of its run-off business to a subsidiary of Armour Group Holdings Limited (“Armour”). See Note 2—"Acquisitions and Dispositions" and Note 18—"Discontinued Operations." The run-off business generally included the results of OneBeacon's non-specialty business, including the vast majority of asbestos and environmental reserves (the “Runoff Business,” the sale of which is referred to as the “Runoff Transaction”). The Runoff Business has been presented as discontinued operations in the consolidated statements of operations and cash flows. OneBeacon's reportable segments are Specialty Products, Specialty Industries and Investing, Financing and Corporate. The Specialty Products segment is comprised of ten active underwriting operating segments, representing an aggregation based on those that offer distinct products and tailored coverages and services to a broad customer base across the United States. The Specialty Industries segment is comprised of six active underwriting operating segments, representing an aggregation based on those that focus on solving the unique needs of a particular customer or industry group. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries. Certain amounts in the prior period financial statements have been reclassified to conform to the current presentation. The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant Accounting Policies Investment Securities OneBeacon classifies its portfolio of fixed maturity investments, common equity securities, including exchange traded funds ("ETFs"), and other investments held for general investment purposes, as trading securities. Trading securities are reported at fair value as of the balance sheet date as determined by quoted market prices when available. Realized and changes in unrealized investment gains on trading securities are reported, on a pre-tax basis, in revenues as net realized and change in unrealized investment gains. Short-term investments consist of interest-bearing money market funds and other securities which, at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized cost, which approximates fair value. Other investments consist primarily of surplus notes, hedge funds and private equity funds. Surplus notes provided in conjunction with the financing of the Runoff Transaction are measured at estimated fair value based on a discounted expected cash flow model, with changes in fair value reported in total revenues as net realized and change in unrealized investment gains. OneBeacon measures its investments in hedge funds and private equity funds at fair value with changes therein reported in total revenues as net realized and change in unrealized investment gains. Other investments also include an investment in a community reinvestment vehicle which is accounted for at fair value, with changes in fair value reported in total revenues as net realized and change in unrealized investment gains, and a tax advantaged federal affordable housing development fund, which is accounted for under the proportional amortization method. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an "exit price"). Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources ("observable inputs") and a reporting entity's internal assumptions based upon the best information available when external market data is limited or unavailable ("unobservable inputs"). Quoted prices in active markets for identical assets or liabilities have the highest priority ("Level 1"), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities ("Level 2") and unobservable inputs, including the reporting entity's estimates of the assumptions that market participants would use, having the lowest priority ("Level 3"). As of both December 31, 2016 and 2015 , approximately 95% and 92% , respectively, of the investment portfolio recorded at fair value was priced based upon quoted market prices or other observable inputs. Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries, common equity securities and short-term investments, which include U.S. Treasury Bills. Investments valued using Level 2 inputs are comprised primarily of fixed maturity investments, which have been disaggregated into classes, including debt securities issued by corporations, municipal obligations, mortgage and asset-backed securities, foreign government obligations and preferred stocks. Certain ETFs that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges are also considered Level 2 measurements, as management values such investments using the fund manager's published net asset value ("NAV") to account for the difference in market close times. Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Level 3 fair value estimates based upon unobservable inputs include OneBeacon's investments in surplus notes and certain investments in debt and equity securities where quoted market prices are unavailable or are not considered reasonable. OneBeacon determines when transfers between levels have occurred as of the beginning of the period. OneBeacon uses brokers and outside pricing services to assist in determining fair values. For investments in active markets, OneBeacon uses the quoted market prices provided by outside pricing services to determine fair value. The outside pricing services used by OneBeacon have indicated that if no observable inputs are available for the security, they will not provide a price. In such circumstances, where quoted market prices are unavailable or are not considered reasonable, OneBeacon estimates fair value using industry standard pricing methodologies and observable inputs, such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, credit ratings, prepayment speeds, reference data including research publications and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services used by OneBeacon evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. OneBeacon's process to assess the reasonableness of the market prices obtained from the outside pricing sources covers substantially all of its fixed maturity investments and includes, but is not limited to, the evaluation of pricing methodologies and a review of the pricing services' quality control processes and procedures on at least an annual basis, comparison of our invested asset market prices to prices obtained from different independent pricing vendors on at least a semi-annual basis, monthly analytical reviews of certain prices and a review of the underlying assumptions utilized by our pricing services for selected measurements on an ad hoc basis throughout the year. OneBeacon also performs back-testing of selected sales activity to determine whether there are any significant differences between the market price used to value the security prior to sale and the actual sale price on an ad-hoc basis throughout the year. Prices provided by the pricing services that vary by more than 5% and $1.0 million from the expected price based on these procedures are considered outliers. Also considered outliers are prices that have not changed from period to period and prices that have trended unusually compared to market conditions. In circumstances where the results of OneBeacon's review process do not appear to support the market price provided by the pricing services, OneBeacon challenges the price. During the past year, nine securities fell outside OneBeacon's expected results, thereby triggering a challenge with the pricing service. If OneBeacon cannot gain satisfactory evidence to support the challenged price, it relies upon its own pricing methodologies to estimate the fair value of the security in question. The fair values of such securities are considered Level 3 measurements. OneBeacon's investments in debt securities, including mortgage and asset-backed securities, are generally valued utilizing an evaluated pricing process. Key inputs include benchmark yields, benchmark securities, reported trades, issuer spreads, bids, offers, credit ratings and prepayment speeds. Income on mortgage and asset-backed securities is recognized using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. OneBeacon's other investments include surplus notes, the fair value of which are estimated using a discounted estimated cash flow method, as described in Note 5—"Investment Securities." Also included in other investments are hedge funds and private equity funds, which are generally carried at fair value based upon OneBeacon's proportionate interest in the underlying fund's NAV, which is deemed to approximate fair value, given that the NAV of the fund reflects the fair value of the fund's underlying investments. OneBeacon employs a number of procedures to assess the reasonableness of the fair value measurements, including obtaining and reviewing each fund's audited financial statements and discussing each fund's pricing with the fund's manager. In circumstances where the underlying investments are publicly traded, such as the investments made by hedge funds, the fair value of the underlying investments is determined using current market prices. In circumstances where the underlying investments are not publicly traded, such as the investments made by private equity funds, the private equity fund managers have considered the need for a liquidity discount on each of the underlying investments when determining the fund's NAV. In circumstances where OneBeacon's portion of a fund's NAV is deemed to differ from fair value due to illiquidity or other factors associated with OneBeacon's investment in the fund, including counterparty credit risk, the NAV is adjusted accordingly. See Note 5—"Investment Securities." Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statements of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company's consolidated subsidiaries. Insurance Operations Premiums written are recognized as revenues and are earned ratably over the term of the related policy. Unearned premiums represent the portion of premiums written that are applicable to future insurance coverage provided by policies. Policy acquisition costs represent commissions, premium taxes, brokerage expenses and other costs which are directly attributable to and vary with the production of business. These costs are deferred and amortized to the extent they relate to successful contract acquisitions over the applicable premium recognition period. Policy acquisition costs deferred were $229.0 million , $237.3 million and $237.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, all of which were included in policy acquisition expenses, with the exception of $20.4 million , $21.3 million and $22.9 million for each respective period that were deferred relating to other underwriting expenses. Policy acquisition costs amortized were $232.7 million , $239.7 million and $227.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, all of which were included in policy acquisition expenses, with the exception of $20.7 million , $22.2 million and $23.0 million for each respective period that were amortized relating to other underwriting expenses. Deferred acquisition costs are limited to the amount expected to be recovered from future earned premiums and anticipated investment income. This limitation is referred to as a premium deficiency. A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses ("LAE"), unamortized acquisition costs, and maintenance costs exceeds related unearned premiums and anticipated investment income. A premium deficiency is recognized by charging any unamortized acquisition costs to expense to the extent required in order to eliminate the deficiency. If the premium deficiency exceeds unamortized acquisition costs then a liability is accrued for the excess deficiency. There were no premium deficiencies recognized for any years presented. Loss and LAE are charged against income as incurred. Unpaid loss and LAE reserves are based on estimates (generally determined by claims adjusters, legal counsel and actuarial staff) of the ultimate costs of settling claims, including the effects of inflation and other societal and economic factors. Unpaid loss and LAE reserves represent management's best estimate of ultimate loss and LAE, net of reinsurance and estimated salvage and subrogation recoveries, if applicable. Such estimates are regularly reviewed and updated and any resulting adjustments are reflected in the current period. The process of estimating unpaid loss and LAE reserves involves a considerable degree of judgment by management and the ultimate amount of expense to be incurred could be considerably greater than or less than the amounts currently reflected in the financial statements. OneBeacon discounts certain of its long-term workers compensation loss and LAE reserves when such liabilities constitute unpaid but settled claims under which the payment pattern and ultimate costs are fixed and determinable on an individual claim basis. OneBeacon discounts these reserves using the statutory rate ( 2.5% at December 31, 2016 and 2015 ). As of December 31, 2016 and 2015 , the discount on OneBeacon's workers compensation loss and LAE reserves amounted to $1.6 million and $1.1 million , respectively. OneBeacon's insurance subsidiaries enter into reinsurance contracts to protect their businesses from losses due to concentration of risk, to manage their operating leverage ratios and to limit losses arising from catastrophic events. The majority of such reinsurance contracts are executed through excess of loss treaties and catastrophe contracts under which the reinsurer indemnifies for a specified part or all of certain types of losses over stipulated amounts arising from any one occurrence or event. OneBeacon has also entered into quota share treaties with reinsurers under which all risks meeting prescribed criteria are covered on a pro rata basis. The amount of each risk ceded by OneBeacon is subject to maximum limits which vary by line of business and type of coverage. See Note 4—"Reinsurance." Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policies. The collectibility of reinsurance recoverables is subject to the solvency of the reinsurers. OneBeacon is selective in regard to its reinsurers, principally placing reinsurance with those reinsurers with strong financial condition, reputation, industry ratings and underwriting ability. Management monitors the financial condition and ratings of its reinsurers on an ongoing basis. Reinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies are reported as a reduction of premiums written. Expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. Funds Held Funds held under insurance contracts represent unrestricted collateral held by the Company primarily relating to the Surety business. Mandatory Shared Market Mechanisms As a condition of its licenses to do business in certain states, OneBeacon's insurance operations are required to participate in various mandatory shared market mechanisms commonly referred to as "residual" or "involuntary" markets. These markets generally consist of risks considered to be undesirable from a standard or routine underwriting perspective. Each state dictates the levels of insurance coverage that are mandatorily assigned to participating insurers within these markets. The total amount of such business an insurer must accept in a particular state is generally based on that insurer's market share of voluntary business written within that state. In certain cases, OneBeacon is obligated to write business from shared market mechanisms at a future date based on its historical market share of all voluntary policies written within that state. Involuntary business generated from mandatory shared market mechanisms may be treated as assumed reinsurance depending on the structure of the mechanism. OneBeacon's market assignments are typically required to be written in the current period, although, in certain cases OneBeacon is required to accept policy assignments at a future date. Anticipated losses associated with future market assignments are recognized when the amount of such anticipated losses is determined to be probable and can be reasonably estimated. Insurance Related Assessments Under existing guaranty fund laws in all states, insurers licensed to do business in those states can be assessed for certain obligations of insolvent insurance companies to policyholders and claimants. OneBeacon's insurance subsidiaries record guaranty fund assessments when such assessments are billed by the respective guaranty funds. In addition, OneBeacon will monitor other insurance company insolvencies and will accrue a liability when such losses are determined to be probable and the assessment amounts can be reasonably estimated. The actual amount of such assessments will depend upon the final outcome of rehabilitation proceedings and will be paid over several years. Capital Lease In December 2011, the Company entered into lease financing arrangements with US Bancorp Equipment Finance, Inc. ("US Bancorp") and Fifth Third Equipment Finance Company ("Fifth Third") whereby it sold furniture and equipment and capitalized software, respectively, at a cost equal to net book value. The Company then leased the fixed assets back from US Bancorp for a lease term of five years and leased the capitalized software back from Fifth Third for a lease term of four years both of which have now ended. See Note 16—"Commitments and Contingencies." Deferred Software Costs OneBeacon capitalizes costs related to computer software developed for internal use during the application development stage of software development projects. These costs generally consist of certain external, payroll and payroll related costs. OneBeacon begins amortization of these costs once the project or the respective phase of the project is completed and ready for its intended use. Amortization is on a straight line basis over the useful life which generally ranges from three to five years . No impairments were recognized during the year ended December 31, 2016, while the Company recognized a $1.6 million pre-tax impairment of certain capitalized software associated with senior management restructuring during the year ended December 31, 2015. OneBeacon had unamortized deferred software costs of $13.4 million and $12.7 million as of December 31, 2016 and 2015 , respectively. Federal and Foreign Income Taxes The majority of the Company's subsidiaries file consolidated tax returns in the United States. Income earned or losses generated by companies outside the United States are generally subject to an overall effective tax rate lower than that imposed by the United States. Deferred tax assets and liabilities are recorded when a difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for tax purposes exists, and for other temporary differences. The deferred tax asset or liability is recorded based on tax rates expected to be in effect when the difference reverses. The deferred tax asset is recognized when it is more likely than not that it will be realized. Foreign Currency Exchange The U.S. dollar is the functional currency for all of OneBeacon's businesses. OneBeacon is subject to foreign currency fluctuations associated with foreign investment securities. Assets and liabilities recorded in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, and revenues and expenses are converted using the average exchange rates for the period. Net foreign exchange gains and losses arising from the translation are reported as a component of net income in the period in which they arise. Variable Interest Entities OneBeacon consolidates a reciprocal insurance exchange ("reciprocal") as a variable interest entity ("VIE"), when it has both the power to direct the activities of the VIE that most significantly impact its economic performance and either the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 13—"Variable Interest Entities ("VIE")." Defined Benefit Plans OneBeacon sponsors defined benefit plans and recognizes the funded status of the difference between plan assets at fair value and the projected benefit obligation (for defined benefit pension plans) or the accumulated benefit obligation (for other postretirement benefit plans) in its statement of financial position. The Company recognizes amounts previously deferred and amortized in other comprehensive income in the period in which they occur and measure plan assets and obligations as of the fiscal year end. The projected benefit obligation of the OneBeacon qualified pension plan ("Qualified Plan") was calculated using termination assumptions as of December 31, 2015 and finalized its termination by purchasing a group annuity contract and making lump sum distributions to plan participants electing such payments during the year ended December 31, 2016, and as a result of these transactions, no longer has a projected benefit obligation with respect to the Qualified Plan. See Note 8—"Retirement Plans." Recently Adopted Changes in Accounting Principles Short Duration Contracts Effective December 31, 2016, OneBeacon adopted ASU 2015-09, Disclosures about Short Duration Contracts (ASC 944) which requires expanded footnote disclosures about loss and LAE reserves. Upon adoption, OneBeacon modified its footnote disclosures to include loss development tables on a disaggregated basis by accident year and a reconciliation of loss development data to the loss and LAE reserves reflected on the balance sheet. The footnote disclosures have also been expanded to include information about claim frequency data, including a description of how the claims frequency data is measured. Prior year disclosures have been modified to conform to the new disclosures. Business Combinations - Measurement Period Adjustments Effective January 1, 2016, OneBeacon adopted ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires adjustments to provisional amounts recorded in connection with a business combination that are identified during the measurement period to be recorded in the reporting period in which the adjustment amounts are determined, rather than as retroactive adjustments to prior periods. OneBeacon has not recognized any adjustments to estimated purchase accounting amounts for the year ended December 31, 2016 and accordingly, there was no effect to OneBeacon's financial statements upon adoption. Fair Value Measurements Effective January 1, 2016, OneBeacon adopted ASU 2015-07, Fair Value Measurement - Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) (ASC 820) which eliminates the requirement to disclose the fair value hierarchy level for investments for which fair value is measured at NAV using the practical expedient in ASC 820. OneBeacon measures the fair value of its investments in hedge funds and private equity funds using this practical expedient. Upon adoption, these fair value measurements are no longer classified within the fair value hierarchy. Prior year amounts have been modified to conform to the current year's disclosures. Amendments to Consolidation Analysis On January 1, 2016, OneBeacon adopted ASU 2015-02, Amendments to the Consolidation Analysis (ASC 810) which amends the guidance for determining whether an entity is a VIE. ASU 2015-02 eliminates the separate consolidation guidance for limited partnerships and with it, the presumption that a general partner should consolidate a limited partnership. In addition, ASU 2015-02 changes the guidance for determining if fee arrangements qualify as variable interests and the effect fee arrangements have on the determination of the primary beneficiary. Adoption of ASU 2015-02 did not affect the consolidation analysis for any of OneBeacon's investments. Share-Based Compensation Awards On January 1, 2016, OneBeacon adopted ASU 2014-12, Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASC 718) . The new guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. Compensation cost is to be recognized in the period when it becomes probable the performance target will be achieved in an amount equal to the compensation cost attributable to the periods for which service has been rendered. Adoption did not have a significant effect on OneBeacon's financial position, results of operations, cash flows, presentation or disclosures. Debt Issuance Costs Effective January 1, 2016, OneBeacon adopted ASU 2015-03, Imputation of Interest (ASC 835) which requires debt issuance costs to be presented as a deduction from the carrying amount of the related debt, consistent with the treatment required for debt discounts. The new guidance requires amortization of debt issuance costs to be classified within interest expense and also requires disclosure of the debt's effective interest rate. OneBeacon has applied the guidance retrospectively and as a result has reclassified $1.9 million of unamortized debt issuance costs from other assets, reflecting these amounts as a reduction from the related debt and has modified its disclosures to include the required effective interest rate on its debt. As of December 31, 2016, the unamortized debt issuance costs included in debt is $1.6 million . In addition, effective January 1, 2016, OneBeacon adopted ASU 2015-15, Imputation of Interest (ASC 835), which addresses the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Adoption of ASU 2015-15 did not have a significant effect on OneBeacon's financial position, results of operations, cash flows, presentation or disclosures. Recently Issued Accounting Pronouncements Cash Flow Statement In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (ASC 230), which addresses the classification and presentation of certain items, including debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and distributions received from equity method investees, for which there was diversity in practice. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash (ASC 230) . Under current guidance, restricted amounts of cash or cash equivalents are excluded from the cash flow statement. The new guidance requires restricted cash and restricted cash equivalents to be included in the reconciliation of beginning and end-of-period amounts presented on the statement of cash flows. In addition, the new guidance requires a description of the nature of the changes in restricted cash and cash equivalents during the periods presented. The updated guidance in ASU 2016-15 and ASU 2016-18 are both effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. OneBeacon is evaluating the expected impact of this new guidance. Credit Losses In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost. The new ASU, which applies to financial assets that have the contractual right to receive cash, including reinsurance receivables, requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. ASU 2016-13 is effective for annual periods beginning after January 1, 2020, including interim periods. OneBeacon measures financial assets at fair value with changes therein recognized in current period earnings and accordingly, does not expect adoption to have a significant impact on its financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASC 718) which is intended to simplify certain aspects of the accounting for share-based compensation, including forfeiture assumptions, net settlement of equity awards for withholding taxes and accounting for excess tax benefits. The new guidance provides an accounting policy election to account for forfeitures by either applying an assumption, as required under existing guidance, or by recognizing forfeitures when they actually occur. The new ASU also permits net settlement of equity awards for withholding taxes up to the maximum statutory rate and requires such amounts to be classified as a financing activities in the statement of cash flows. In addition, the new guidance changes the accounting for excess tax benefits and deficiencies by requiring recognition in the income statement, with treatm |
Acquisitions and Dispositions
Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Crop Business On July 31, 2015, Monsanto Company sold Climate Crop Insurance Agency ("CCIA"), the third party agency with which OneBeacon previously had an exclusive managing general agency agreement, to an affiliate of AmTrust Financial Services, Inc. ("AmTrust"). As a result of the sale, the Company has exited the multiple peril crop insurance ("MPCI") business and its related crop-hail business (collectively, "Crop Business"). As a result of the transaction, OneBeacon and CCIA agreed to an early termination of the existing five year agreement. In connection with the termination of the agreement, OneBeacon received a payment of $3.0 million (pre-tax) recorded in net other revenues (expenses) during the year ended December 31, 2015. Also related to the transaction, OneBeacon withdrew its 2016 Plan of Operations, which previously authorized it to write MPCI for the 2016 Reinsurance Year, and affiliates of AmTrust agreed to reinsure the Company’s remaining net Crop Business exposure for the 2015 Reinsurance Year under a related 100% quota share reinsurance agreement which, coupled with other transfer and assignment agreements as well as communications with policyholders and agents, had the effect of assumption reinsurance. As a result of this transaction, the Company has no material net exposure related to the Crop Business. Runoff Business As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies," on December 23, 2014, OneBeacon completed the sale of its Runoff Business to Armour. OneBeacon provided financing in the form of surplus notes issued by Bedivere Insurance Company ("Bedivere"), one of the legal entities transferred as part of the transaction, having a par value of $101.0 million , which had a fair value of $64.9 million on the date of sale. See Note 18—"Discontinued Operations" for further information. Essentia Insurance Company Effective January 1, 2013 , OneBeacon completed the sale of Essentia Insurance Company ("Essentia"), which wrote the collector cars and boats business, to Markel Corporation ("Markel"). Concurrently therewith, OneBeacon and Hagerty Insurance Agency ("Hagerty") terminated their underwriting arrangement with respect to the collector cars and boats business. In 2015, the Company recognized in net other revenues (expenses) a $3.7 million negative adjustment to the pre-tax gain on sale of Essentia in connection with an assessment from the Michigan Catastrophic Claims Association ("MCCA") payable to Markel pursuant to the indemnification provisions in the stock purchase agreement governing the sale of Essentia. In 2016, the Company recognized in net other revenues (expenses) a $0.5 million positive adjustment to the pre-tax gain on sale of Essentia resulting from recoveries upon the resolution of a matter relating to the MCCA. Except as described above, during the years ended December 31, 2016 , 2015 and 2014 , there were no significant acquisitions or dispositions. |
Unpaid Loss and Loss Adjustment
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Unpaid Loss and Loss Adjustment Expense (LAE) Reserves | Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves Methodology for Estimating Incurred But Not Reported ("IBNR") Reserves OneBeacon's insurance subsidiaries establish loss and LAE reserves that are estimates of amounts needed to pay claims and related expenses in the future for insured events that have already occurred. The process of estimating reserves involves a considerable degree of judgment by management and, as of any given date, is inherently uncertain. Loss and LAE reserves are typically comprised of (1) case reserves for claims reported and (2) IBNR reserves, which include a provision for expected future development on case reserves and for losses that have occurred but for which claims have not yet been reported. Case reserves are estimated based on the experience and knowledge of claims staff regarding the nature and potential cost of each claim and are adjusted as additional information becomes known or payments are made. IBNR reserves are derived by subtracting paid loss and LAE and case reserves from estimates of ultimate loss and LAE. Actuaries estimate ultimate loss and LAE using various generally accepted actuarial methods, as described below, applied to known losses and other relevant information. Like case reserves, IBNR reserves are adjusted as additional information becomes known or payments are made. Ultimate loss and LAE are generally determined by extrapolation of claim emergence and settlement patterns observed in the past that can reasonably be expected to persist into the future. In forecasting ultimate loss and LAE with respect to any line of business, past experience with respect to that line of business is the primary resource, but cannot be relied upon in isolation. OneBeacon's own experience, particularly claims development experience, such as trends in case reserves, payments on and closings of claims, as well as changes in business mix and coverage limits, is the most important information for estimating its reserves. External data, available from organizations such as statistical bureaus, consulting firms and reinsurance companies, is sometimes used to supplement or corroborate OneBeacon's own experience. External data can be especially useful for estimating costs on newer lines of business (e.g. Surety) or newer business segments (e.g. Programs). For some lines of business, such as "long-tail" coverages discussed below, claims data reported in the most recent accident or report year or years is often too limited to provide a meaningful basis for analysis due to the typical delay in reporting and settling of claims. For this type of business, OneBeacon uses an expected loss ratio method for the initial accident year or years. This is a standard and accepted actuarial reserve estimation method in these circumstances in which the loss ratio is selected based upon information used in pricing policies for that line of business, as well as any publicly available industry data, such as industry pricing, experience and trends, for that line of business. Uncertainties in estimating ultimate loss and LAE are magnified by the time lag between when a claim actually occurs and when it is reported and eventually settled. This time lag is sometimes referred to as the "claim-tail." The claim-tail for most property coverages is typically short (usually a few days up to a few months). The claim-tail for casualty coverages, such as automobile liability, general liability including the liability portion of multiple peril coverage, workers compensation, and professional liability can be especially long as claims are often reported and ultimately paid or settled years, even decades, after the related loss events occur. During the long claims reporting and settlement period, additional facts regarding coverages written in prior accident years, as well as about actual claims and trends may become known that cause OneBeacon to adjust its reserves. If management determines that an adjustment is appropriate, the adjustment is booked in the accounting period in which such determination is made. Accordingly, should reserves need to be increased or decreased in the future from amounts currently established, future results of operations would be negatively or positively impacted, respectively. In determining ultimate loss and LAE, the cost to indemnify claimants, provide needed legal defense and other services for insureds and administer the investigation and adjustment of claims are considered. These claim costs are influenced by many factors that change over time, such as expanded coverage definitions as a result of new court decisions, inflation in costs to repair or replace damaged property, inflation in the cost of medical services, and legislated changes in statutory benefits, as well as by the particular, unique facts that pertain to each claim. As a result, the rate at which claims arose in the past and the costs to settle them may not always be representative of what will occur in the future. The factors influencing changes in claim costs are often difficult to isolate or quantify and developments in paid and incurred losses from historical trends are frequently subject to multiple and conflicting interpretations. Changes in coverage terms or claims handling practices may also cause future experience and/or development patterns to vary from the past. A key objective of actuaries in developing estimates of ultimate loss and LAE and resulting IBNR reserves is to identify aberrations and systemic changes occurring within historical experience and accurately adjust for them so that the future can be projected more reliably. Because of the factors previously discussed, this process requires the use of informed judgment and is inherently uncertain. OneBeacon's actuaries use several generally accepted actuarial methods to evaluate its loss and LAE reserves, each of which has its own strengths and weaknesses. OneBeacon places more or less reliance on a particular method based on the facts and circumstances at the time the reserve estimates are made. These methods generally fall into one of the following categories or are hybrids of one or more of the following categories: • Historical paid loss development methods: These methods use historical loss payments over discrete periods of time to estimate future losses. Historical paid loss development methods assume that the ratio of losses paid in one period to losses paid in an earlier period will remain constant. These methods necessarily assume that factors that have affected paid losses in the past, such as inflation or the effects of litigation, will remain constant in the future. Because historical paid loss development methods do not use case reserves to estimate ultimate losses, they can be more reliable than the other methods discussed below that look to case reserves (such as actuarial methods that use incurred losses) in situations in which there are significant changes in how case reserves are established by a company's claims adjusters. However, historical paid loss development methods are more leveraged, meaning that small changes in payments have a larger impact on estimates of ultimate losses, than actuarial methods that use incurred losses because cumulative loss payments take much longer to approach the expected ultimate losses than cumulative incurred amounts. In addition, and for similar reasons, historical paid loss development methods are often slow to react to situations when new or different factors arise than those that have affected paid losses in the past. • Historical incurred loss development methods: These methods, like historical paid loss development methods, assume that the ratio of losses in one period to losses in an earlier period will remain constant in the future. However, instead of using paid losses, these methods use incurred losses (i.e., the sum of cumulative historical loss payments plus outstanding case reserves) over discrete periods of time to estimate future losses. Historical incurred loss development methods can be preferable to historical paid loss development methods because they explicitly take into account open cases and the claims adjusters' evaluations of the cost to settle all known claims. However, historical incurred loss development methods necessarily assume that case reserving practices are consistently applied over time. Therefore, when there have been significant changes in how case reserves are established, using incurred loss data to project ultimate losses can be less reliable than other methods. • Expected loss ratio methods: These methods are based on the assumption that ultimate losses vary proportionately with premiums. Expected loss ratios are typically developed based upon the information used in pricing, and are multiplied by the total amount of premiums earned to calculate ultimate losses. Expected loss ratio methods are useful for estimating ultimate losses in the early years of long-tailed lines of business, when little or no paid or incurred loss information is available. • Bornhuetter-Ferguson methods: These methods are a blend of the expected loss ratio and loss development methods. The percent of incurred (or paid) loss to ultimate loss implied by the selected development pattern from the incurred (or paid) loss development method is used to determine the percentage of ultimate loss yet to be developed. Inception to date losses are added to losses yet to be developed, yielding an estimate of ultimate for each accident year. • Adjusted historical paid and incurred loss development methods: These methods take traditional historical paid and incurred loss development methods and adjust them for the estimated impact of changes from the past in factors such as inflation, the speed of claim payments or the adequacy of case reserves. Adjusted historical paid and incurred loss development methods are often more reliable methods of predicting ultimate losses in periods of significant change, provided the actuaries can develop methods to reasonably quantify the impact of changes. We perform an actuarial review of our recorded reserves each quarter. As part of that review, our actuaries compare the previous quarter's projections of paid and case reserve activity to amounts experienced in the quarter. Differences between previous estimates and actual experience are evaluated. While some variance is expected each quarter due to the inherent uncertainty in loss and LAE, persistent or large variances would indicate that prior assumptions and/or reliance on certain reserving methods may need to be revised going forward. Upon completion of each quarterly review, the Company's actuaries select indicated reserve levels based on the results of the actuarial methods described previously, which are the primary consideration in determining management's best estimate of required reserves. However, in making its best estimate, management also considers other qualitative factors that may lead to a difference between held reserves and the actuarial central estimate of reserves. Typically, these factors exist when management and our actuaries conclude that there is insufficient historical incurred and paid loss information or that trends included in the historical incurred and paid loss information are unlikely to repeat in the future. Such factors include, among others, recent entry into new markets or new products, improvements in the claims department that are expected to lessen future ultimate loss costs, legal and regulatory developments, or other volatilities that may arise. Reserve Estimation by Line of Business The process of establishing loss reserves, including amounts incurred but not reported, is complex and imprecise as it must consider many variables that are subject to the outcome of future events. As a result, informed subjective estimates and judgments as to the ultimate exposure to losses are an integral component of the loss reserving process. OneBeacon categorizes and tracks insurance reserves by "line of business", which are summarized herein as either property (short-tailed) lines, casualty (long-tailed) lines, or other (accident, surety, and credit) lines. OneBeacon regularly reviews the appropriateness of reserve levels at the line of business level, considering the variety of trends that impact the ultimate settlement of claims for the subsets of claims in each particular line of business. For loss and allocated LAE reserves, the key assumption as of December 31, 2016 was that the impact of the various reserving factors, as described below, on future paid losses would be similar to the impact of those factors on the historical loss data with the exception of severity trends. Severity trends have been relatively stable over the relevant historical period. The actuarial methods used would project losses assuming continued stability in severity trends. Management has considered a range of assumptions regarding future increases in loss severity trends, including the impact of inflation, in making its reserve selections. The major causes of material uncertainty (reserving factors) generally will vary for each line, as well as for each separately analyzed component of the line. The following section details reserving factors by major product line. Also, reserving factors can have offsetting or compounding effects on estimated reserves. For example, in workers compensation, the use of expensive medical procedures that result in medical cost inflation may enable workers to return to work faster, thereby lowering indemnity costs. Thus, in almost all cases, it is impossible to discretely measure the effect of a single reserving factor and construct a meaningful sensitivity expectation. Actual results will likely vary from expectations for each of these assumptions, resulting in an ultimate claim liability that is different from that being estimated currently. Additional causes of material uncertainty exist in most product lines and may impact the types of claims that could occur within a particular operating segment or book of business. Examples where reserving factors, within an operating segment or book of business, are subject to change include changing types of insured (e.g. type of insured vehicle, size of account, industry insured, jurisdiction, etc.), changing underwriting standards, or changing policy provisions (e.g. deductibles, policy limits, or endorsements). Following is a detailed description of the reserve factors and consideration for each of the major lines of business. Property Lines The property (short-tailed) lines represent lines for which the payout of the claim liability occurs shortly after the occurrence of the loss. Reserving for property lines generally involves less uncertainty given the short-tailed nature of these lines. Property lines, including the property portion of the multiple peril coverage and including Inland Marine coverage, cover losses to a business' premises, inventory and equipment as a result of weather, fire, theft and other causes. Claims associated with property coverage generally take a relatively short period of time to close. The reserve risk is driven by occasional catastrophic events or large single losses. The relatively high attachment points and insured values of the property policies underwritten in the Specialty Property underwriting operating segment present a potentially longer tail and greater uncertainty than our standard property business. Property also includes the comprehensive and collision coverages of automobile policies characterized by low severity payments that are made quickly. Additionally, Property includes all of the Ocean Marine products. Ocean Marine has property and liability exposure related to commercial hull, marine, and cargo products. The exposure is generally low severity and short to medium tailed. Casualty Lines The casualty (long-tailed) lines represent lines for which the loss may not be paid, or even reported, until well after the loss occurred. As a result, the amount of liability may not be known at the date of the loss. Reserving for casualty lines generally involves more uncertainty given these factors. Casualty lines cover a variety of losses associated with policies that cover general liability, the liability portion of commercial multiple peril, professional liability, workers compensation, and commercial automobile liability lines. Losses associated with casualty coverage generally take a longer period of time to close claims. Most of the general reserving factors for casualty are applicable across these sub-lines, while certain sub-lines have additional reserving factors. Casualty lines policies can generally be written on either a claims made or occurrence form. Most professional liability, management liability, and medical professional policies are written on a claims made basis, under which the trigger of loss is based on the date the loss is discovered or the loss is reported to OneBeacon. Professional liability policies cover the defense expenses and damages related to negligence claims brought against the insured professional services firm or government entity. The coverage focuses on damages resulting from an alleged failure to perform, error or omission in the product or service provided by the policyholder. Management liability policies cover the defense expenses and damages related to alleged wrongful acts committed by the directors and officers of the insured organization. Medical professional liability policies cover the defense expenses and damages related to negligence claims brought against the insured health care institution or provider. The coverage focuses on damages resulting from an alleged failure to perform, error or omission in the service provided by the policyholder. Most general liability policies are written on an occurrence basis under which the trigger of losses are based on the date the loss happened. They cover businesses for any liability resulting from bodily injury and property damage arising from general business operations, accidents on business premises and the products manufactured or sold. Reserves for these policies generally include two components: bodily injury and property damage. Bodily injury payments reimburse the claimant for damages pertaining to physical injury as a result of the policyholder's legal obligation arising from non-intentional acts such as negligence, subject to the insurance policy provisions. In some cases the damages can include future wage loss (which is a function of future earnings power and wage inflation) and future medical treatment costs. Property damage payments result from damages to the claimant's private property arising from the policyholder's legal obligation for non-intentional acts. In most cases, property damage losses are a function of costs as of the loss date or soon thereafter. Defense costs are also a part of the insured costs covered by liability policies and can be significant, sometimes greater than the cost of the actual paid claims, though for some products this risk is mitigated by policy language such that the insured portion of defense costs erodes the amount of policy limit available to pay the claim. Casualty coverages are generally considered long-tail line business, as it takes a relatively long period of time to finalize and settle claims from a given accident year. The speed of claim reporting and claim settlement is a function of the specific coverage provided and the jurisdiction, among other factors. There are numerous components underlying these product lines. Some of these have relatively moderate payment patterns (with most of the claims for a given accident year closed within 5 to 7 years), while others can have extreme lags in both reporting and payment of claims (e.g., a reporting lag of a decade for "construction defect" claims). Examples of common reserving factors across casualty lines that can change and, thus, affect estimated casualty reserves include: • Changes in claim handling philosophies (e.g., case reserving standards), including the use of third party claims administrators • Changes in the pattern of underlying claims, including frequency and severity • Changes in policy provisions or court interpretations of such provisions • New theories of liability (e.g., cyber related claims) • Trends in litigation or jury awards, including the propensity to sue • Changes in statutes of limitations • Shifts in lawsuit mix between federal and state courts • Changes in tort or case law • Distortions from losses resulting from large single accounts or single issues • Subrogation opportunities While these reserving factors are applicable to most casualty reserving lines, there are certain sub-lines within the casualty major line that have unique reserving factors in addition to these. These include commercial automobile liability and workers compensation. Commercial automobile liability coverage insure relatively short tailed property damage liability claims and longer tailed, more difficult to estimate bodily injury claims. In general, claim reporting lags are minor, claim complexity is not a major issue, and the line is viewed as high frequency, low to moderate severity. In addition to the examples of common reserving factors related to casualty described above, other examples that affect estimated commercial automobile liability reserves include: • Frequency of claims with payment capped by policy limits • Change in average severity of accidents, or proportion of severe accidents • Frequency of visits to health providers • Number of medical procedures given during visits to health providers • Types of health providers used • Types of medical treatments received • Changes in cost of medical treatments • Degree of patient responsiveness to treatment Workers compensation covers an employer's liability for injuries, disability or death of employees, without regard to fault, as prescribed by state workers compensation law and other statutes. Workers compensation is a long-tail coverage as it takes a relatively long period of time to finalize claims from a given accident year. While certain payments such as initial medical treatment or temporary wage replacement for the injured worker are made quickly, some other payments are made over the course of several years, such as awards for permanent partial injuries. In addition, some payments can run as long as the injured worker's life, such as permanent disability benefits and ongoing medical care. Despite the possibility of long payment tails, the reporting lags are generally short, settlements are generally not complex, and most of the claims can be considered high frequency with moderate severity. The largest reserve risk generally comes from the low frequency, high severity claims providing lifetime coverage for medical expenses arising from a worker's injury. Examples of common reserving factors that can change and, thus, affect the estimated workers compensation reserves include: • Changes in the type, frequency of utilization or cost of medical treatments (e.g. changes in the use of pharmaceutical drugs, types of health providers used, use of preferred provider networks and other medical cost containment practices) • Availability of new medical processes and equipment • Degree of patient responsiveness to treatment • Mortality trends of injured workers with lifetime indemnity and medical treatment benefits • Degree of cost shifting between workers compensation and health insurance • Time required to recover from the injury and return to regular or transitional work • Future wage inflation for states that index benefits Other Lines Other lines represent lines that do not fall into either the property or casualty definition. These lines have unique characteristics that are taken into consideration during the reserving process. Other lines include the accident line, which is included within the Specialty Industries reporting segment, as well as the credit and surety lines, which are included within the Specialty Products segment. Accident lines includes accidental death and dismemberment, occupational accident, sports accident, non-truckers liability, and other accident coverages. It has a short to medium tailed development pattern and moderate severity profile. Credit lines represents primarily the Tuition Reimbursement underwriting operating segment which provides insurance protection for schools and parents from the financial consequences of a student's withdrawal or dismissal. The reserve risk for this line is relatively low given the extremely short-tailed and low severity nature. Surety , which also has a significant credit risk component, is a short-tailed but high severity coverage. As a newer business, lack of historical data means external data is heavily relied upon where available and applicable. Surety reserving factors that can change and, thus, affect estimated surety reserves include size of payment (severity) which is impacted by the bond limit, the ability of the principal (insured) or OneBeacon to mitigate the loss or amount and collectability of assets or other collateral available to mitigate loss. Cumulative Number of Reported Claims The Company counts a claim for each unique combination of individual claimant and major coverage (e.g. auto liability - bodily injury, auto liability - property damage, auto physical damage, etc.). The claim is counted only if, net of any applicable deductibles, a payment has been made or a case reserve has been recorded. As a point of clarification, it is counted if a case reserve is established and the claim is later closed with no payment. For a relatively small amount of bulk-coded assumed reinsurance and pools & association losses there are no claim counts available. Discount OneBeacon discounts its long-term workers compensation loss and LAE reserves, as such liabilities constitute unpaid but settled claims under which the payment pattern and ultimate costs are fixed and determinable on an individual basis. OneBeacon discounts these reserves using the statutory rate ( 2.5% at December 31, 2016 and 2015 ). For the years ended December 31, 2016 and 2015, reserves for unpaid claims and claims adjustment expenses were reduced by $1.6 million and $1.1 million , respectively. Changes in loss and LAE reserves resulting from a change in the average long-term workers compensation discount rate is recorded within incurred loss and LAE expense. Loss and LAE reserve summary The following table summarizes the loss and LAE reserve activities of OneBeacon's insurance subsidiaries for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 2015 2014 ($ in millions) Gross beginning loss and LAE reserves $ 1,389.8 $ 1,342.2 $ 1,054.3 Less beginning reinsurance recoverable on unpaid losses (186.0 ) (161.6 ) (80.2 ) Net beginning loss and LAE reserves 1,203.8 1,180.6 974.1 Loss and LAE incurred from continuing operations relating to: Current year losses 640.6 702.5 725.3 Prior year losses 15.4 (1.8 ) 89.8 Total incurred loss and LAE from continuing operations 656.0 700.7 815.1 Loss and LAE paid from continuing operations relating to: Current year losses (188.0 ) (202.4 ) (199.6 ) Prior year losses (479.1 ) (475.1 ) (409.0 ) Total loss and LAE payments from continuing operations (667.1 ) (677.5 ) (608.6 ) Net loss and LAE reserves 1,192.7 1,203.8 1,180.6 Total incurred loss and LAE from discontinued operations — — (0.7 ) Total loss and LAE payments from discontinued operations — — (55.1 ) Net loss and LAE reserves 1,192.7 1,203.8 1,124.8 Net change in loss and LAE reserves reported in liabilities held for sale — — 188.4 (1) Net loss and LAE reserves sold — — (132.6 ) (2) Net ending loss and LAE reserves 1,192.7 1,203.8 1,180.6 Plus ending reinsurance recoverable on unpaid losses 172.9 186.0 161.6 Gross ending loss and LAE reserves $ 1,365.6 $ 1,389.8 $ 1,342.2 _______________________________________________________________________________ (1) Consists of the change in net loss and LAE reserves of $188.4 million , representing the balances classified as held for sale as December 31, 2013, in connection with the Runoff Transaction. (2) Relates to the Runoff Transaction, which closed on December 23, 2014. Loss and LAE development Loss and LAE development—2016 Net unfavorable prior year loss and LAE reserve development was $15.4 million during the year ended December 31, 2016 driven by Healthcare ( $40.7 million ), as discussed below, and to a lesser extent, unfavorable development in the architects and engineers sub-line within Other Professional Lines , and Programs, primarily as a result of two larger auto-related programs, in addition to smaller amounts of unfavorable development in several other businesses. This unfavorable development was partially offset by favorable development primarily in Accident , Entertainment , Technology and Financial Services . During the year ended December 31, 2016, Healthcare recorded $40.7 million of adverse prior accident year development, including $10.0 million in the first quarter, $20.0 million in the second quarter, $1.1 million in the third quarter, and $9.6 million in the fourth quarter. The full year development was driven by the extended care and complex risks sub-lines, and to a lesser extent, two large claim developments within the managed care errors and omissions sub-line related to unexpected outcomes from mediation and extended costs associated with claim defense. Extended care provides medical malpractice and general liability insurance for extended care facilities, including assisted living, memory care and continuing care facilities. Complex risks provides professional liability coverage to hospitals, physicians, and physician groups as well as physicians' extended reporting period coverage. The complex risks development was heavily influenced by large claim activity. As a result of the elevated loss activity experienced in the extended care sub-line, in-depth claim file and actuarial reviews were performed in the middle of the year. The claim file review confirmed that the increased case incurred activity was driven by increased frequency, especially in the more recent prior accident years, as opposed to other potential considerations such as significant changes in claims-handling practices. The actuarial review included analysis related to the recent enhancements to the predictive model. Recent adverse financial results were primarily observed in high-risk categories of business and in difficult geographic venues identified by the predictive model data. As a result of these analyses, management increased its best estimate of prior accident year losses, and increased its loss provisions for the current accident year. Despite the reserve actions taken through the first three quarters of 2016 case incurred loss activity continued to exceed expectations during the fourth quarter of 2016. The adverse development was driven by recent prior accident years spread across the complex risks, extended care, managed care errors and omissions, and medical excess sub-lines. Loss and LAE development—2015 Net favorable prior year loss and LAE reserve development was $1.8 million during the year ended December 31, 2015 , primarily attributable to favorable development from several businesses, most notably Technology , and to a lesser extent, from Collector Cars and Boats , Specialty Property and Financial Services , along with certain other businesses . This favorable development was mostly offset by unfavorable development due to several large losses and an increase in small to mid-size claims in Entertainment , and to a lesser extent, unusually heavy loss activity of both large and small claims in Ocean Marine , as well as moderate unfavorable development from certain other businesses. Loss and LAE development—2014 Net unfavorable prior year loss and LAE reserve development was $89.8 million during the year ended December 31, 2014 , of which $75.5 million related to the 2014 fourth quarter reserve increase described below. Of the net unfavorable loss and LAE reserve development resulting from the 2014 fourth quarter reserve increase, $31.9 million related to the Other Professional Lines driven primarily by lawyers professional liability, and $11.6 million related to Entertainment resulting from several large losses. The remaining net unfavorable prior year loss and LAE reserve development for 2014 primarily related to unfavorable development recognized prior to the 2014 fourth quarter also in our Other Professional Lines (including lawyers professional liabi |
Reinsurance
Reinsurance | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Reinsurance | Reinsurance In the normal course of business, OneBeacon's insurance subsidiaries seek to limit losses that may arise from catastrophes or other events by reinsuring with third-party reinsurers. OneBeacon remains liable for risks reinsured if the reinsurer does not honor its obligations under reinsurance contracts. The effects of reinsurance on OneBeacon's insurance subsidiaries' written and earned premiums and on loss and LAE were as follows: Year ended December 31, 2016 2015 2014 ($ in millions) Written premiums: Direct $ 1,193.3 $ 1,279.9 $ 1,257.5 Assumed 28.0 36.0 65.9 Gross written premiums 1,221.3 1,315.9 1,323.4 Ceded (120.6 ) (179.3 ) (1) (106.5 ) Net written premiums $ 1,100.7 $ 1,136.6 $ 1,216.9 Earned premiums: Direct $ 1,177.0 $ 1,298.0 $ 1,209.1 Assumed 29.4 45.9 70.9 Gross earned premiums 1,206.4 1,343.9 1,280.0 Ceded (105.8 ) (167.7 ) (1) (102.9 ) Net earned premiums $ 1,100.6 $ 1,176.2 $ 1,177.1 Loss and LAE: Direct $ 679.5 $ 783.0 $ 778.7 Assumed 21.2 55.7 115.7 Gross loss and LAE 700.7 838.7 894.4 Ceded (44.7 ) (138.0 ) (1) (79.3 ) Net loss and LAE $ 656.0 $ 700.7 $ 815.1 _______________________________________________________________________________ (1) During the year ended December 31, 2015, the Company recorded ceded written premiums of $33.3 million , ceded earned premiums of $33.3 million and ceded loss and LAE of $33.4 million as a result of the exit of the Crop Business due to the 100% quota share reinsurance agreement with AmTrust. Reinsurance Treaties The timing and size of catastrophe losses are unpredictable and the level of losses experienced in any year could be material to the Company's operating results and financial condition. Examples of catastrophes include losses caused by earthquakes, wildfires, hurricanes and other types of storms and terrorist acts. The extent of losses caused by a catastrophic event is a function of severity and the amount and type of insured exposure in the affected area. In the normal course of business, OneBeacon's insurance subsidiaries seek to limit losses that may arise from catastrophes or other events through individual risk selection, imposing deductibles and limits, limiting its concentration of insurance in catastrophe-prone areas such as coastal regions and reinsuring with third-party reinsurers. The Company uses models (primarily AIR Worldwide Touchstone version 4.1 ) to estimate potential losses from catastrophes. The Company uses the model output in conjunction with other data to manage its exposure to catastrophe losses based on a probable maximum loss forecast to quantify its exposure to an extreme catastrophe event. OneBeacon utilizes a general catastrophe reinsurance treaty with unaffiliated reinsurers to manage its exposure to large catastrophe losses. Effective May 1, 2016, OneBeacon renewed its property catastrophe reinsurance program through April 30, 2017. The program provides coverage for OneBeacon's property business as well as certain acts of terrorism. Under the program, the first $20.0 million of losses resulting from any single catastrophe are retained with 100% of the next $110.0 million of losses resulting from the catastrophe being reinsured. Any part of the catastrophe loss from a single event in excess of $130.0 million would be retained in full. In the event of a catastrophe, OneBeacon's property catastrophe reinsurance program is reinstated for the remainder of the original contract term by paying a reinstatement premium that is based on the percentage of coverage reinstated and the original property catastrophe coverage premium. OneBeacon's current third party reinsurance programs provide varying degrees of coverage for terrorism events. The Company's overall terrorism exposure is impacted by the Terrorism Risk Insurance Program (the “Terrorism Act”), which is a federal program administered by the Department of the Treasury that provides for a shared system of public and private compensation for commercial property and casualty losses resulting from events that reach the threshold for losses ( $140 million in 2017 and increasing $20 million in subsequent years until the threshold becomes $200 million in 2020 ) and are certified as an act of terrorism by the U.S. Secretary of the Treasury, in concurrence with the Secretary of Homeland Security and the Attorney General of the United States. The Terrorism Act limits the industry's aggregate liability for losses from certified terrorist acts by requiring the federal government to share a set amount of losses ( 83% in 2017 and decreasing 1% annually in subsequent years until it reaches a floor of 80% in 2020) once a company meets a specific retention or deductible as determined by its prior year's direct written premiums. It also limits the aggregate liability to be paid by the government and industry without further action by Congress to $100 billion . In exchange for this backstop, primary insurers are required to make coverage available to commercial insureds for losses from acts of terrorism as defined in the Terrorism Act. The following types of coverage are excluded from the program: commercial automobile, burglary and theft, surety, farmowners multi-peril and all professional liability coverage except directors and officers coverage. All losses that result from a nuclear, biological, chemical or radiological terrorist attack are excluded from the Company's current third party reinsurance program. OneBeacon's property catastrophe treaty also excludes acts of terrorism certified pursuant to the Terrorism Act and committed by an individual or individuals acting on behalf of any foreign person or foreign interest. OneBeacon's casualty clash treaty provides coverage for losses that result from certified and non-certified acts of terrorism, on an aggregated basis, subject to a maximum of one full treaty limit. OneBeacon's property per risk, casualty and workers compensation treaties each provide full coverage for certified acts of terrorism on behalf of a non-foreign person or interest, but are sublimited to one full treaty limit for certified acts of terrorism committed on behalf of any foreign person or foreign interest. OneBeacon's healthcare treaty is sublimited to one full treaty limit of coverage for all acts of terrorism. OneBeacon estimates its individual retention level for commercial policies subject to the Terrorism Act to be approximately $140 million in 2017. The federal government will pay 83% of covered terrorism losses that exceed the Company's or the industry's retention levels in 2017, up to a total of $100 billion . As indicated above, the Company's 17% copay will increase annually by 1% until it reaches a limit of 20% in 2020. In addition to the corporate catastrophe reinsurance protection, the Company also purchases dedicated reinsurance protection for certain lines of business. The following table summarizes the reinsurance coverage currently in effect as of December 31, 2016 : $ in millions Coverage Contract Type Renewal Date First-Dollar Retention Per Risk Limit Purchased Maximum Retention Corporate Property Catastrophe - Property and Inland Marine Excess of Loss 5/1 $ 20.0 $ 110.0 $ 20.0 Property Per Risk - Property and Inland Marine Excess of Loss 5/1 3.0 100.0 3.0 Specialty Property - Excess and Surplus Property Catastrophe Excess of Loss 5/1 6.0 34.0 6.0 Medical Excess - HMO/Provider Excess Excess of Loss 1/1 5.0 Unlimited 5.0 Ocean and Inland Marine Excess of Loss 4/1 2.5 57.5 7.0 Surety Excess of Loss 10/1 5.0 45.0 5.0 Film Completion Bonds Excess of Loss 6/1 2.0 38.0 2.0 Casualty Clash/Workers Compensation Catastrophe Excess of Loss 6/1 6.0 34.0 6.0 Workers Compensation Catastrophe Excess of Loss 6/1 40.0 20.0 6.0 Financial Institutions - Professional Liability Quota Share 6/1 N/A 10.0 5.0 Combined Healthcare/Casualty 2nd Layer - Various lines Excess of Loss 6/1 10.0 / 11.0 10.0 3.0 Casualty Per Policy - Various lines Excess of Loss 6/1 3.0 8.0 3.0 Workers Compensation Per Occurrence Excess of Loss 6/1 2.0 8.0 2.0 Healthcare Professional Liability Excess of Loss 6/1 3.0 7.0 3.0 Reinsurance Recoverables As of December 31, 2016 , OneBeacon had reinsurance recoverable on paid losses of $6.6 million and reinsurance recoverables on unpaid losses of $172.9 million . As reinsurance contracts do not relieve OneBeacon of its obligations, collectibility of balances due from reinsurers is important to OneBeacon's financial strength. OneBeacon is selective with its reinsurers, placing reinsurance with only those reinsurers having a strong financial condition. OneBeacon monitors the financial strength of its reinsurers on an ongoing basis. Uncollectible amounts historically have not been significant. The following table summarizes A.M. Best Company, Inc. ("A.M. Best") ratings for OneBeacon's reinsurers for its continuing insurance operations, excluding industry pools and associations, based upon reinsurance recoverable amounts on paid and unpaid losses and LAE: December 31, 2016 % of total A.M Best's Rating (1) : ($ in millions) A+ or better $ 73.9 41 % A- to A 79.7 44 % B, Not Rated and Other 25.9 (2) 15 % Total reinsurance recoverables $ 179.5 100 % _______________________________________________________________________________ (1) A.M Best's ratings as detailed above are "A+ or better" (Superior), "A- to A" (Excellent) and "B" (Fair). (2) Includes reinsurance recoverable on unpaid losses from Bedivere of $18.3 million . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Investments [Abstract] | |
Investment Securities | Investment Securities OneBeacon's net investment income is comprised primarily of interest income associated with OneBeacon's fixed maturity investments and short-term investments and dividend income from its common equity securities and other investments. Net investment income for the years ended December 31, 2016 , 2015 , and 2014 consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ 48.7 $ 43.8 $ 41.8 Short-term investments 0.2 — — Common equity securities 3.5 6.1 6.5 Other investments 3.0 1.0 2.1 Gross investment income 55.4 50.9 50.4 Less investment expenses (4.8 ) (5.0 ) (7.0 ) Net investment income, pre-tax $ 50.6 $ 45.9 $ 43.4 The composition of net realized investment gains consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ (0.1 ) $ 2.0 $ 6.6 Short-term investments — — — Common equity securities 12.2 33.8 53.9 Other investments (1.8 ) 11.4 9.2 Net realized investment gains, pre-tax 10.3 47.2 69.7 Income taxes (4.1 ) (9.1 ) (21.0 ) Net realized investment gains, after tax $ 6.2 $ 38.1 $ 48.7 OneBeacon recognized gross realized investment gains of $31.7 million , $64.2 million and $75.0 million and gross realized investment losses of $21.4 million , $17.0 million and $5.3 million on sales and other-than-temporary impairment charges on investment securities during the years ended December 31, 2016 , 2015 and 2014 , respectively. The net changes in fair value for the years ended December 31, 2016 , 2015 , and 2014 are as follows: Year ended December 31, 2016 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ 2.5 $ — $ 2.5 Short-term investments — — — Common equity securities 2.7 — 2.7 Other investments 22.2 — 22.2 Net change, pre-tax $ 27.4 $ — $ 27.4 Year ended December 31, 2015 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ (15.7 ) $ — $ (15.7 ) Short-term investments — — — Common equity securities (33.2 ) 0.2 (33.0 ) Other investments (33.6 ) — (33.6 ) Net change, pre-tax $ (82.5 ) $ 0.2 $ (82.3 ) Year ended December 31, 2014 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ 1.9 $ — $ 1.9 Short-term investments — (0.1 ) (0.1 ) Common equity securities (32.6 ) (0.3 ) (32.9 ) Other investments 1.8 — 1.8 Net change, pre-tax $ (28.9 ) $ (0.4 ) $ (29.3 ) The components of OneBeacon's ending net unrealized investment gains and losses, excluding the impact of net unrealized foreign currency translation gains and losses, on its investment portfolio as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Investment securities: ($ in millions) Gross unrealized investment gains $ 52.7 $ 46.5 Gross unrealized investment losses (12.0 ) (33.2 ) Total net unrealized investment gains, pre-tax 40.7 13.3 Income taxes (14.0 ) (6.5 ) Total net unrealized investment gains, after tax $ 26.7 $ 6.8 The cost or amortized cost, gross unrealized pre-tax investment gains and losses, net foreign currency gain and losses and carrying values of OneBeacon's fixed maturity investments as of December 31, 2016 and 2015 were as follows: December 31, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gain (losses) Carrying value ($ in millions) U.S. Government $ 169.6 $ — $ (2.3 ) $ — $ 167.3 Debt securities issued by corporations 760.6 6.2 (3.7 ) — 763.1 Municipal obligations 70.1 0.8 (0.4 ) — 70.5 Mortgage and asset-backed securities 1,154.8 1.8 (3.5 ) — 1,153.1 Foreign government obligations 1.0 0.2 — — 1.2 Preferred stocks 8.3 5.6 — — 13.9 Total fixed maturity investments $ 2,164.4 $ 14.6 $ (9.9 ) $ — $ 2,169.1 December 31, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) U.S. Government $ 85.4 $ — $ (0.1 ) $ — $ 85.3 Debt securities issued by corporations 810.8 4.1 (4.5 ) — 810.4 Municipal obligations 67.7 1.5 (0.2 ) — 69.0 Mortgage and asset-backed securities 1,035.1 1.3 (4.5 ) — 1,031.9 Foreign government obligations 1.0 0.2 — — 1.2 Preferred stocks 78.3 4.4 — — 82.7 Total fixed maturity investments $ 2,078.3 $ 11.5 $ (9.3 ) $ — $ 2,080.5 The cost or amortized cost and carrying value of OneBeacon's fixed maturity investments as of December 31, 2016 is presented below by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. December 31, 2016 Cost or amortized cost Carrying value ($ in millions) Due in one year or less $ 91.0 $ 91.4 Due after one year through five years 782.9 784.3 Due after five years through ten years 110.4 109.5 Due after ten years 17.0 16.9 Asset-backed securities 1,154.8 1,153.1 Preferred stocks 8.3 13.9 Total $ 2,164.4 $ 2,169.1 The following table summarizes the ratings of OneBeacon's debt securities issued by corporations as of December 31, 2016 and 2015 : December 31, 2016 2015 ($ in millions) AA (1) $ 63.7 $ 42.7 A (1) 169.1 265.4 BBB (1) 450.8 502.3 BB (1) 70.8 — B (1) 8.7 — Debt securities issued by corporations $ 763.1 $ 810.4 _______________________________________________________________________________ (1) Credit ratings are assigned based on the following hierarchy: 1) Standard and Poor’s and 2) Moody’s Investor Service (“Moody’s”). The cost or amortized cost, gross unrealized pre-tax investment gains and losses, net foreign currency gains and losses and carrying values of OneBeacon's common equity securities and other investments as of December 31, 2016 and 2015 were as follows: December 31, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) Common equity securities $ 182.3 $ 6.9 $ (0.5 ) $ — $ 188.7 Other investments 120.9 31.2 (1.6 ) — 150.5 Total common equity securities and other investments $ 303.2 $ 38.1 $ (2.1 ) $ — $ 339.2 December 31, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) Common equity securities $ 295.0 $ 12.7 $ (9.0 ) $ — $ 298.7 Other investments 135.6 22.3 (14.9 ) — 143.0 Total common equity securities and other investments $ 430.6 $ 35.0 $ (23.9 ) $ — $ 441.7 Sales and maturities of investments, excluding short-term investments and other investments, totaled $1,681.3 million , $1,371.5 million and $2,585.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. There were no non-cash exchanges or involuntary sales of investment securities during the years ended December 31, 2016 , 2015 and 2014 . OneBeacon's consolidated insurance operations are required to maintain deposits with certain insurance regulatory agencies in order to maintain their insurance licenses. The fair value of such deposits totaled $87.5 million and $82.1 million , respectively, as of December 31, 2016 and 2015 . As of December 31, 2016 and 2015 , investments of $2.7 million and $2.2 million , respectively, were held in a trust required to be maintained to comply with New York surplus lines regulations and investments of $1.5 million and $5.4 million , respectively, were held in a trust required to be maintained in relation to a reinsurance agreement with Star & Shield Insurance Exchange. As of December 31, 2016 and 2015 , the Company held unrestricted collateral from its customers, which is included in cash and invested assets, relating to its Surety business of $153.0 million and $137.7 million , respectively. Fair value measurements Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources ("observable inputs") and a reporting entity's internal assumptions based upon the best information available when external market data is limited or unavailable ("unobservable inputs"). Quoted prices in active markets for identical assets or liabilities have the highest priority ("Level 1"), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities ("Level 2") with unobservable inputs, including the reporting entity's estimates of the assumptions that market participants would use, having the lowest priority ("Level 3"). As of December 31, 2016 and 2015 , approximately 95% and 92% , respectively, of the investment portfolio recorded at fair value was priced based upon observable inputs. Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries, common equity securities and short-term investments, which include U.S. Treasury Bills. Investments valued using Level 2 inputs are comprised primarily of fixed maturity investments, which have been disaggregated into classes, including debt securities issued by corporations, municipal obligations, mortgage and asset-backed securities, foreign government obligations and preferred stocks. Certain ETFs that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges are also considered Level 2 measurements, as management values such investments using the fund's published NAV to account for the difference in market close times. Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Level 3 fair value estimates based upon unobservable inputs include OneBeacon's investments in surplus notes, and certain fixed maturity investments and common equity securities where quoted market prices are unavailable or are not considered reasonable. OneBeacon determines when transfers between levels have occurred as of the beginning of the period. OneBeacon uses brokers and outside pricing services to assist in determining fair values. For investments in active markets, OneBeacon uses the quoted market prices provided by outside pricing services to determine fair value. The outside pricing services used by OneBeacon have indicated that if no observable inputs are available for the security, they will not provide a price. In such circumstances, where quoted market prices are unavailable or are not considered reasonable, OneBeacon estimates the fair value using industry standard pricing methodologies and observable inputs such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, prepayment speeds, reference data including research publications and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. OneBeacon's process to assess the reasonableness of the market prices obtained from the outside pricing sources covers substantially all of its fixed maturity investments and includes, but is not limited to, the evaluation of pricing methodologies and a review of the pricing services' quality control processes and procedures on at least an annual basis, comparison of our invested asset market prices to prices obtained from different independent pricing vendors on at least a semi-annual basis, monthly analytical reviews of certain prices and review of the underlying assumptions utilized by our pricing services for selected measurements on an ad hoc basis throughout the year. OneBeacon also performs back-testing of selected sales activity to determine whether there are any significant differences between the market price used to value the security prior to sale and the actual sale price on an ad-hoc basis throughout the year. Prices provided by the pricing services that vary by more than 5% and $1.0 million from the expected price based on these procedures are considered outliers. Also considered outliers are prices that have not changed from period to period and prices that have trended unusually compared to market conditions. In circumstances where the results of OneBeacon's review process do not appear to support the market price provided by the pricing services, OneBeacon challenges the price. If OneBeacon cannot gain satisfactory evidence to support the challenged price, it relies upon its own pricing methodologies to estimate the fair value of the security in question. The valuation process above is generally applicable to all of OneBeacon’s fixed maturity investments. The techniques and inputs specific to asset classes within OneBeacon's fixed maturity investments for Level 2 securities that use observable inputs are as follows: Debt securities issued by corporations: The fair value of debt securities issued by corporations is determined from a pricing evaluation technique that uses information from market sources and integrates relative credit information, observed market movements, and sector news. Key inputs include benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications. Municipal obligations: The fair value of municipal obligations is determined from a pricing evaluation technique that uses information from market makers, broker-dealers, buy-side firms, and analysts along with general market information. Key inputs include benchmark yields, reported trades, issuer financial statements, material event notices and new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including type, coupon, credit quality ratings, duration, credit enhancements, geographic location and market research publications. Mortgage and asset-backed securities: The fair value of mortgage and asset-backed securities is determined from a pricing evaluation technique that uses information from market sources and leveraging similar securities. Key inputs include benchmark yields, reported trades, underlying tranche cash flow data, collateral performance, plus new issue data, as well as broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including issuer, vintage, loan type, collateral attributes, prepayment speeds, default rates, recovery rates, cash flow stress testing, credit quality ratings and market research publications. Foreign government obligations: The fair value of foreign government obligations is determined from a pricing evaluation technique that uses feeds from data sources in each respective country, including active market makers and inter-dealer brokers. Key inputs include benchmark yields, reported trades, broker-dealer quotes, two-sided markets, benchmark securities, bids, offers, local exchange prices, foreign exchange rates and reference data including coupon, credit quality ratings, duration and market research publications. Preferred stocks: The fair value of preferred stocks is determined from a pricing evaluation technique that calculates the appropriate spread over a comparable security for each issue. Key inputs include exchange prices (underlying and common stock of same issuer), benchmark yields, reported trades, broker-dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers, and reference data including sector, coupon, credit quality ratings, duration, credit enhancements, early redemption features and market research publications. Level 3 valuations are generated from techniques that use assumptions not observable in the market. These unobservable assumptions reflect OneBeacon's assumptions that market participants would use in valuing the investment. Generally, certain securities may start out as Level 3 when they are originally issued but as observable inputs become available in the market, they may be reclassified to Level 2. The fair value of the surplus notes provided in conjunction with the financing of the Runoff Transaction is determined based on a discounted expected cash flow model using information as of the measurement date, and is classified as a Level 3 measurement. OneBeacon’s other investments also include an investment in a community reinvestment vehicle, which is accounted for at fair value, and a tax advantaged federal affordable housing development fund, which is accounted for under the proportional amortization method. The fair values of OneBeacon's investments in hedge funds and private equity funds have been classified as NAV as prescribed by ASU 2015-07. OneBeacon employs a number of procedures to assess the reasonableness of the NAV reported by the fund's manager, including obtaining and reviewing periodic and audited financial statements and discussing each fund’s pricing with the fund manager throughout the year. In the event OneBeacon believes that its estimate of NAV differs from that reported by the fund due to illiquidity or other factors, OneBeacon will adjust the fund's reported NAV to more appropriately represent the fair value of its interest in the investment. As of December 31, 2016 and 2015 , OneBeacon recorded negative adjustments of $5.0 million and $2.4 million , respectively, to the reported NAV of certain investments in private equity funds. As of December 31, 2015 , OneBeacon held one private preferred stock that represented approximately 85% of its preferred stock portfolio. That security, which was generally valued using quoted market prices for similar securities that were adjusted to reflect management's best estimate of fair value and was classified as a Level 3 measurement, was called during the year ended December 31, 2016. Fair value measurements by level The following tables summarize the Company's fair value measurements for investments as of December 31, 2016 and 2015 by level. The major security types were based on the legal form of the securities. OneBeacon has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing asset-backed securities vary depending on the nature of the issuing entity type. OneBeacon further disaggregates debt securities issued by corporations and equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, OneBeacon has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications the Company uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. Fair value at Level 1 Level 2 Level 3 ($ in millions) Fixed maturity investments: U.S. Government $ 167.3 $ 167.3 $ — $ — Debt securities issued by corporations: Consumer 194.8 — 194.8 — Healthcare 129.2 — 129.2 — Industrial 118.2 — 118.2 — Financial 96.3 — 96.3 — Communications 59.4 — 59.4 — Energy 47.4 — 47.4 — Technology 40.7 — 40.7 — Utilities 39.5 — 39.5 — Basic materials 37.6 — 37.6 — Debt securities issued by corporations 763.1 — 763.1 — Municipal obligations 70.5 — 70.5 — Mortgage and asset-backed securities 1,153.1 — 1,153.1 — Foreign government obligations 1.2 0.6 0.6 — Preferred stocks 13.9 — 13.9 — Fixed maturity investments 2,169.1 167.9 2,001.2 — Short-term investments 112.1 112.1 — — Common equity securities: Exchange Traded Funds (1) 164.4 140.9 23.5 — Healthcare 7.0 7.0 — — Consumer 4.3 4.3 — — Financials 3.9 3.9 — — Technology 3.7 3.7 — — Communications 3.5 3.5 — — Energy 1.2 1.2 — — Industrial 0.7 0.7 — — Common equity securities 188.7 165.2 23.5 — Other investments (2)(3) 86.2 — — 86.2 Total (1)(2)(3) $ 2,556.1 $ 445.2 $ 2,024.7 $ 86.2 _______________________________________________________________________________ (1) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated as level 2 measurements. (2) Excludes the carrying value of $12.3 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2016 . (3) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds with a measured fair value of $52.0 million for which NAV is generally the practical expedient are no longer classified within the fair value hierarchy. Fair value at December 31, 2015 Level 1 Level 2 Level 3 ($ in millions) Fixed maturity investments: U.S. Government $ 85.3 $ 85.3 $ — $ — Debt securities issued by corporations: Consumer 218.3 — 218.3 — Healthcare 136.2 — 136.2 — Industrial 121.8 — 121.8 — Financial 116.0 — 116.0 — Energy 75.2 — 75.2 — Communications 46.0 — 46.0 — Utilities 42.2 — 42.2 — Technology 28.9 — 28.9 — Basic materials 25.8 — 25.8 — Debt securities issued by corporations 810.4 — 810.4 — Municipal obligations 69.0 — 69.0 — Mortgage and asset-backed securities 1,031.9 — 1,031.9 — Foreign government obligations 1.2 0.6 0.6 — Preferred stocks 82.7 — 12.7 70.0 Fixed maturity investments 2,080.5 85.9 1,924.6 70.0 Short-term investments 69.2 69.2 — — Common equity securities: Exchange Traded Funds (1) 183.3 162.0 21.3 — Consumer 38.2 38.2 — — Communications 23.9 23.9 — — Healthcare 19.6 19.6 — — Technology 14.7 14.7 — — Industrial 14.5 14.5 — — Financials 4.5 4.5 — — Common equity securities 298.7 277.4 21.3 — Other investments (2)(3) 65.8 — — 65.8 Total (1)(2)(3) $ 2,514.2 $ 432.5 $ 1,945.9 $ 135.8 _______________________________________________________________________________ (1) ETFs traded on foreign exchanges are priced using the fund's published NAV to account for the difference in market close times and are therefore designated as level 2 measurements. (2) Excludes the carrying value of $14.7 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2015 . (3) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds with a measured fair value of $62.5 million for which NAV is generally the practical expedient are no longer classified within the fair value hierarchy. Rollforwards of Fair Value Measurements by Level The following tables summarize the changes in OneBeacon’s fair value measurements by level for the year ended December 31, 2016 and 2015 : Level 3 Investments ($ in millions) Level 1 Investments Level 2 Investments Fixed maturity investments Other investments (1) NAV Investments (2) Total (1)(2)(3) Balance at January 1, 2016 $ 363.3 $ 1,945.9 $ 70.0 $ 65.8 62.5 $ 2,507.5 Amortization/accretion — (13.3 ) — — — (13.3 ) Net realized and change in unrealized gains 9.2 8.2 (0.1 ) 20.4 — 37.7 Purchases 496.9 1,111.0 48.0 — 1.0 1,656.9 Sales (536.3 ) (1,075.0 ) (70.0 ) — (11.5 ) (1,692.8 ) Transfers in — 47.9 — — — 47.9 Transfers out — — (47.9 ) — — (47.9 ) Balance at December 31, 2016 $ 333.1 $ 2,024.7 $ — $ 86.2 $ 52.0 $ 2,496.0 _______________________________________________________________________________ (1) Excludes the carrying value of $12.3 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2016 . (2) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. (3) Excludes short-term investments. Level 3 Investments ($ in millions) Level 1 Investments Level 2 Investments Fixed maturity investments Other investments (1) NAV Investments (2) Total (1)(2)(3) Balance at January 1, 2015 $ 358.7 $ 1,692.1 $ 74.0 $ 79.6 102.4 $ 2,306.8 Amortization/accretion — (13.2 ) — — — (13.2 ) Net realized and change in unrealized gains 1.3 (12.7 ) (1.1 ) (13.9 ) (8.7 ) (35.1 ) Purchases 638.0 985.7 34.0 0.7 2.7 1,661.1 Sales (634.7 ) (742.9 ) — (0.6 ) (33.9 ) (1,412.1 ) Transfers in — 36.9 — — — 36.9 Transfers out — — (36.9 ) — — (36.9 ) Balance at December 31, 2015 $ 363.3 $ 1,945.9 $ 70.0 $ 65.8 $ 62.5 $ 2,507.5 _______________________________________________________________________________ (1) Excludes the carrying value of $14.7 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2015. (2) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. (3) Excludes short-term investments. There were no “Transfers in” to Level 3 fixed maturity investments for the years ended December 31, 2016 and 2015. “Transfers out” of Level 3 fixed maturity investments for the year ended December 31, 2016 were comprised of $44.2 million of residential mortgage-backed securities and $3.7 million of other asset-backed securities, all of which were recategorized as Level 2 measurements when quoted market prices for similar securities that were considered reliable and could be validated against an alternative source became available. “Transfers out” of Level 3 fixed maturity investments for the year ended December 31, 2015 were comprised of $18.1 million in residential mortgage-backed securities ("RMBS"), $10.3 million in commercial mortgage-backed securities, $5.6 million in asset backed securities and $2.9 million of debt securities issued by corporations, all of which were recategorized as Level 2 measurements when quoted market prices that were considered reliable and could be validated against alternative sources became available. The following table summarizes the change in net unrealized investment gains and losses for assets designated as Level 3 for the year ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ — $ (1.1 ) $ 1.1 Other investments (1) 20.4 (14.0 ) 6.3 Total $ 20.4 $ (15.1 ) $ 7.4 _______________________________________________________________________________ (1) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. Significant Unobservable Inputs The following summarizes significant unobservable inputs used in estimating the fair value of investment securities other than hedge funds and private equity funds, classified within Level 3 as of December 31, 2016 and 2015 . The fair value of investments in hedge funds and private equity funds, which are classified with Level 3, are generally estimated using the NAV of the funds. ($ in millions) As of December 31, 2016 Description Fair Value Rating (1) Valuation Technique Unobservable Inputs Input Surplus notes: 11.7% - Seller priority note $ 51.1 N/R Discounted cash flow Discount rate (2) 9.6% Timing of interest payments (3) 2020 Timing of principal payments (3) 2030 - Pari passu note $ 20.8 N/R Discounted cash flow Discount rate (4) 15.0% Timing of interest payments (5) 2021 Timing of principal payments (5) 2035 Community reinvestment vehicle $ 14.3 N/R Member share of GAAP net equity GAAP net equity $ 14.3 ($ in millions) As of December 31, 2015 Description Fair Value Rating (1) Valuation Technique Unobservable Inputs Input Preferred stock $ 70.0 N/R Par value (6) Issuer's intent to call $ 70.0 Surplus notes: 16.1% - Seller priority note $ 38.0 N/R Discounted cash flow Discount rate (2) 13.0% Timing of interest payments (3) 2020 Timing of principal payments (3) 2025 - Pari passu note $ 13.5 N/R Discounted cash flow Discount rate (4) 22.4% Timing of interest payments (5) 2020 Timing of principal payments (5) 2030 Community reinvestment vehicle $ 14.3 N/R Member share of GAAP net equity GAAP net equity $ 14.3 _________________________________________________________________________ (1) Credit ratings, if rated, are assigned based on the following hierarchy: 1) Standard & Poor's and 2) Moody's (2) Stochastic modeling supporting the fair value estimation indicates that the average percentage of discounted payments missed on the seller priority note is roughly equivalent to that of a conventional debt security with a credit rating of ‘B’. The corresponding credit spread, increased by an additional 250 bps to reflect both a liquidity discount for a private debt instrument and regulatory payment approval uncertainty, was added to the treasury rate to determine the discount rate for the seller priority note. (3) As of December 31, 2016, the Company has assumed for the purpose of estimating fair value that all accrued but unpaid interest on the seller priority note since the date of issuance is paid in 2020, with regular annual interest payments beginning thereafter. Principal repayments are assumed to begin on a graduated basis in 2030. As of December 31, 2015, the company assumed for the purpose of estimating fair value that all accrued but unpaid interest on the seller priority note since the date of issuance was paid in 2020, with regular annual payments beginning thereafter. Principal repayments were assumed to begin on a graduated basis in 2025. (4) Stochastic modeling supporting the fair value estimation indicates that the average percentage of discounted payments missed on the pari passu note is roughly equivalent to that of a conventional debt security with a credit rating of ‘CCC’. The corresponding credit spread, increased by an additional 250 bps to reflect both a liquidity discount for a private debt instrument and regulatory payment approval uncertainty, was added to the treasury rate to determine the discount rate for the seller priority note. (5) As of December 31, 2016, the company has assumed for the purpose of estimating fair value that regular annual interest payments on the pari passu note begin in 2021. All accrued but unpaid interest since the date of issuance is assumed to be paid in 2025. Principal repayments are assumed to begin on a graduated basis in 2035. As of December 31, 2015, the company assumed for the purpose of estimating fair value that all accrued but unpaid interest on the pari passu note since the date of issuance was paid in 2020, with regular annual payments beginning thereafter. Principal repayments were assumed to begin on a graduated basis in 2030. (6) Valuation based on issuer's intent as of December 31, 2015 to call the security in the near term. Mortgage and Asset-backed Securities OneBeacon purchases commercial mortgage-backed securities ("CMBS") and RMBS to maximize its risk adjusted returns in the context of a diversified portfolio. OneBeacon's non-agency CMBS are generally short tenor and structurally senior, with approximately 30 points of subordination on average for fixed rate and floating rate CMBS as of December 31, 2016 . In general, subordination represents the percentage of principal loss on the underlying collateral that would have to occur before the security incurs a loss. These collateral losses, instead, are first absorbed by other securities lower in the capital structure. OneBeacon believes this structural protection mitigates the risk of loss tied to refinancing challenges facing the commercial real estate market. As of December 31, 2016 , none of the loans underlying the agency a |
Debt
Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt OneBeacon's debt outstanding as of December 31, 2016 and 2015 consisted of the following: December 31, 2016 2015 ($ in millions) Senior unsecured notes, at face value $ 275.0 $ 275.0 Unamortized original issue discount (0.2 ) (0.2 ) Unamortized issuance costs (1) (1.6 ) (1.9 ) Senior unsecured notes, carrying value $ 273.2 $ 272.9 (1) Unamortized issuance costs have been reclassified from other assets to a decrease of the debt liability in accordance with ASU 2015-03, as described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies." Contractual repayments of $275.0 million for OneBeacon's outstanding debt are due more than five years after December 31, 2016 . 2012 Senior Notes In November 2012, OneBeacon U.S. Holdings, Inc. ("OBH") issued $275.0 million face value of senior unsecured notes ("2012 Senior Notes") through a public offering, at an issue price of 99.9% and received $272.9 million of proceeds. The 2012 Senior Notes bear an annual interest rate of 4.6% payable semi-annually in arrears on May 9 and November 9, until maturity on November 9, 2022, and are fully and unconditionally guaranteed as to the payment of principal and interest by the Company. Taking into effect the amortization of the original issue discount and all underwriting and issuance expenses, the 2012 Senior Notes have an effective yield to maturity of approximately 4.7% per annum. Credit Facility On September 29, 2015 the Company and OBH, as co-borrowers and co-guarantors, entered into a revolving credit facility administered by U.S. Bank N.A. and also including BMO Harris Bank N.A., which has a total commitment of $65.0 million and has a maturity date of September 29, 2019 (the "Credit Facility"). As of December 31, 2016 the credit facility was undrawn. Debt Covenants The 2012 Senior Notes were issued under indentures that contain restrictive covenants which, among other things, limit the ability of the Company, OBH, and their respective subsidiaries to create liens and enter into sale and leaseback transactions and limits the ability of OneBeacon to consolidate, merge or transfer their properties and assets. The indentures do not contain any financial ratios or specified levels of net worth or liquidity to which the Company or OBH must adhere. In addition, a failure by the Company or its subsidiaries to pay principal and interest on covered debt, where such failure results in the acceleration of at least $75 million of the principal amount of covered debt, could trigger the acceleration of the 2012 Senior Notes. The Credit Facility contains various affirmative, negative and financial covenants which OneBeacon considers to be customary for such borrowings, including certain minimum net worth and maximum debt to capitalization standards. These covenants can restrict the Company in several ways, including its ability to incur additional indebtedness. An uncured breach of these covenants could result in an event of default under the Credit Facility, which would allow lenders to declare any amounts owed under the Credit Facility to be immediately due and payable. As of December 31, 2016, OneBeacon was in compliance with all of the covenants under the 2012 Senior Notes and the Credit Facility. Interest Total interest expense incurred by OneBeacon for its indebtedness was $13.1 million , $13.0 million and $13.0 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Total cash interest paid by OneBeacon for its indebtedness was $12.7 million during each of the years ended December 31, 2016 , 2015 and 2014 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes OneBeacon and its Bermuda-domiciled subsidiaries are not subject to Bermuda income tax under current Bermuda law. In the event that there is a change in the current law such that taxes are imposed, OneBeacon and its Bermuda-domiciled subsidiaries would be exempt from such tax until March 31, 2035, pursuant to the Bermuda Exempted Undertakings Tax Protection Act of 1966. OneBeacon also has subsidiaries that operate in Gibraltar, Barbados, Luxembourg, Ireland and the United States. U.S. operations are financed with a combination of debt and equity and the financing income and underwriting income currently account for the majority of non-U.S. earnings. OneBeacon's U.S. subsidiaries join in the filing of a federal consolidated tax return. The consolidated U.S. parent is OneBeacon U.S. Financial Services, Inc. ("OBFS"). For all years, the companies included within the U.S. consolidated tax return are parties to a tax sharing agreement which provides that each company pays the amount of income taxes or estimated tax or receives refunds that it would have to make or be entitled to if it filed its own separate tax return. As a result, certain companies have made payments, and received refunds from the consolidated U.S. parent that are different than amounts payable to the Internal Revenue Service ("IRS"). The companies that are domiciled outside of the U.S. file separate returns for the appropriate jurisdictions. The total income tax expense from continuing operations for the years ended December 31, 2016 , 2015 and 2014 consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Current tax (expense) benefit: Federal $ 29.3 $ 9.1 $ (4.3 ) State (1.0 ) (1.2 ) (1.6 ) Non-U.S. (0.4 ) (0.8 ) (0.8 ) Total current tax (expense) benefit 27.9 7.1 (6.7 ) Deferred tax (expense) benefit: Federal (15.4 ) 5.8 19.0 State — — — Non-U.S. — — — Total deferred tax (expense) benefit (15.4 ) 5.8 19.0 Total income tax benefit $ 12.5 $ 12.9 $ 12.3 A reconciliation of taxes calculated using the 35% U.S. statutory rate (the tax rate at which the majority of OneBeacon's worldwide operations are taxed) to the income tax expense on pre-tax income from continuing operations follows: Year ended December 31, 2016 2015 2014 ($ in millions) Tax expense at the U.S. statutory rate $ (33.6 ) $ (8.9 ) $ (14.8 ) Differences in taxes resulting from: Non-U.S. earnings, net of foreign taxes 24.7 19.3 19.6 Tax reserve adjustments and IRS exam settlements 16.2 (1.7 ) 4.1 Tax exempt interest and dividends 2.3 2.6 2.5 Change in valuation allowance (0.1 ) 0.5 (0.2 ) Other, net 3.0 1.1 1.1 Total income tax benefit on pre-tax income from continuing operations $ 12.5 $ 12.9 $ 12.3 The non-U.S. component of pre-tax income from continuing operations, which relates to interest and underwriting income, was $71.7 million , $57.2 million and $58.0 million , respectively, for the years ended December 31, 2016 , 2015 and 2014 . The income tax benefit related to pre-tax income from continuing operations for the years ended December 31, 2016 , 2015 and 2014 represented net effective tax rates of (13.0)% , (51.0)% and (29.1)% , respectively. For the years ended December 31, 2016 , 2015 and 2014 , the effective tax rate on non-U.S. income was 0.6% , 1.3% and 1.3% , respectively, and the effective tax rate on U.S. income or loss was (53.0)% , 42.6% and 83.7% , respectively. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for tax purposes. An outline of the significant components of OneBeacon's deferred tax assets and liabilities follows: December 31, 2016 2015 ($ in millions) Deferred income tax assets related to: U.S. net operating loss carryforwards $ 74.5 $ 63.7 Unearned premiums 37.5 37.2 Tax credit carryforwards 19.2 16.9 Discounting of loss and LAE reserves 18.0 26.7 Compensation and bonus accruals 16.0 15.3 Sale of Runoff Business 12.6 12.6 Deferred compensation plans 5.5 6.0 Fixed assets 3.1 4.2 Allowance for doubtful accounts 0.5 0.7 Non-U.S. net operating loss carryforwards 0.4 0.4 Other accrued compensation 0.1 0.1 Accrued rent — 3.9 Investment basis differences — 3.2 Other items 1.3 0.2 Total gross deferred income tax assets 188.7 191.1 Less valuation allowance (1.4 ) (1.3 ) Total net deferred income tax assets 187.3 189.8 Deferred income tax liabilities related to: Deferred acquisition costs 33.7 35.2 Net unrealized investment gains 14.0 6.5 Prepaid pension 6.3 3.5 Capitalized software 4.7 4.4 Investment basis differences 1.7 — Other items 0.2 — Total gross deferred income tax liabilities 60.6 49.6 Net deferred tax asset $ 126.7 $ 140.2 OneBeacon's deferred tax assets are net of federal and non-U.S. valuation allowances and, to the extent they relate to non-U.S. jurisdictions, they are shown at year-end exchange rates. Of the $1.4 million valuation allowance as of December 31, 2016 , $0.4 million relates to deferred tax assets on net operating losses (“NOLs”) in Luxembourg subsidiaries that are not expected to have significant income in the future, and $1.0 million relates to deferred tax assets of Houston General Insurance Exchange ("HGIE"), which files its own tax return. OneBeacon records a valuation allowance against deferred tax assets if it becomes more likely than not that all or a portion of a deferred tax asset will not be realized. Changes in the valuation allowance are included in income tax expense in the period of the change in estimate is made. In determining whether or not to record a valuation allowance, or subsequent changes in estimate, OneBeacon considers factors such as prior earnings history, expected future earnings, carryback and carryforward periods as well as prudent and economically feasible strategies that, if executed, would result in the realization of a deferred tax asset. It is possible that certain planning strategies or projected earnings in certain subsidiaries may not be feasible to utilize the entire deferred tax asset, which could result in material changes to OneBeacon’s net deferred tax assets and related tax expense. OneBeacon believes that, based upon its prior earnings history, expected future earnings, reversing temporary differences and capacity for carry-back of losses, and available planning strategies it is more likely than not that the net deferred tax asset balances (net of valuation allowance) carried as of December 31, 2016 and 2015 will be realized. NOL carryforwards as of December 31, 2016 and the expiration dates are as follows: December 31, 2016 United States Luxembourg Total ($ in millions) NOL carryforwards by year: 2017 $ — $ — $ — From years 2018 to 2025 2.0 — 2.0 From years 2026 to 2036 225.6 — 225.6 No expiration date — 1.5 1.5 Total NOL carryforwards $ 227.6 $ 1.5 $ 229.1 December 31, 2016 United States Luxembourg Total ($ in millions) Gross deferred tax asset for NOL carryforwards $ 74.5 $ 0.4 $ 74.9 Valuation allowance for NOL carryforwards (0.6 ) (0.4 ) (1.0 ) Net deferred tax asset for NOL carryforwards $ 73.9 $ — $ 73.9 OneBeacon does not anticipate future taxable income in Luxembourg. Therefore, OneBeacon does not believe that it is more likely than not that these losses will be realized and has recorded a full valuation allowance against the tax benefits associated with these NOLs. Effective January 1, 2013, the Luxembourg statutory tax rate increased from 28.80% to 29.22% . As of December 31, 2016 , there were U.S. net operating loss carryforwards of approximately $227.6 million , which begin to expire in 2021. Included in these tax losses are losses of $0.5 million subject to an annual limitation on utilization under Internal Revenue Code Section 382. In addition, the losses include NOLs of $1.8 million related to HGIE, a reciprocal, which files its own tax return. As of December 31, 2016 , OBFS also had low income housing tax credits of $18.0 million which begin to expire in 2031 and alternative minimum tax credit carryovers of $0.8 million which do not expire. Recognition of the benefit of a given tax position is based upon whether or not a company determines that it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. In evaluating the more-likely-than-not recognition threshold, OneBeacon must presume that the tax position will be subject to examination by a taxing authority with full knowledge of all relevant information. If the recognition threshold is met, then the tax position is measured at the largest amount of benefit that is more than 50% likely of being realized upon ultimate settlement. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Permanent differences (1) Temporary differences (2) Interest and penalties (3) Total ($ in millions) January 1, 2014 $ 7.6 $ 16.6 $ 8.4 $ 32.6 Changes in prior year tax positions (2.2 ) (0.8 ) (1.9 ) (4.9 ) Tax positions taken during the current year — 7.3 — 7.3 Lapse in statute of limitations — — — — Settlements with tax authorities — — — — December 31, 2014 $ 5.4 $ 23.1 $ 6.5 $ 35.0 Changes in prior year tax positions — (12.4 ) 1.7 (10.7 ) Tax positions taken during the current year — — — — Lapse in statute of limitations — — — — Settlements with tax authorities — — — — December 31, 2015 $ 5.4 $ 10.7 $ 8.2 $ 24.3 Changes in prior year tax positions — (5.5 ) 0.1 (5.4 ) Tax positions taken during the current year — — — — Lapse in statute of limitations — — — — Settlements with tax authorities (5.4 ) — (8.3 ) (13.7 ) December 31, 2016 $ — $ 5.2 $ — $ 5.2 _______________________________________________________________________________ (1) Represents the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate. (2) Represents the amount of unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in OneBeacon's Consolidated Balance Sheet and its tax basis. (3) Net of tax benefit. The balance as of December 31, 2016 includes $5.2 million of tax positions for which ultimate deductibility is highly certain but the timing of deductibility is uncertain. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the effective tax rate but would accelerate the payment of cash to the taxing authority to an earlier period. OneBeacon classifies all interest and penalties on unrecognized tax benefits as part of income tax expense. During the years ended December 31, 2016 , 2015 and 2014 , OneBeacon recognized $(8.2) million , $1.7 million and $(1.9) million , respectively, of net interest (income) expense. The balance of accrued interest as of December 31, 2016 and 2015 is $0.0 million and $8.2 million , respectively, net of any tax benefit. With few exceptions, OneBeacon is no longer subject to U.S. federal, state or non-U.S. income tax examinations by tax authorities for years before 2013. On May 27, 2016, OneBeacon received the Closing Letter (Letter 1156) from the IRS Revenue Agents relating to the examination of tax years 2010, 2011 and 2012. All disputed items have now been agreed to and resolved. As the receipt of the Closing Letter described above represents formal settlement, OneBeacon recorded a tax benefit of $3.5 million in the second quarter of 2016 related to tax years 2010, 2011 and 2012. On January 19, 2016, OneBeacon received Form 870-AD (Offer to Waive Restrictions on Assessment and Collection Tax Deficiency and to Accept Overassessment) from the IRS Appeals Office relating to the examination of tax years 2007, 2008 and 2009. All disputed items have now been agreed to and resolved with the Joint Committee on Taxation. As the receipt of the Form 870-AD described above represents formal settlement, OneBeacon recorded a tax benefit of $12.8 million in the first quarter of 2016 related to tax years 2007, 2008 and 2009. OneBeacon recorded a tax benefit of $5.0 million in the first quarter of 2014 relating to the settlement of the IRS examination for tax years 2005 and 2006. Net cash (refunds) payments for federal, state and non-U.S. income taxes, totaled $(12.8) million , $(6.2) million and $2.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Retirement Plans | Retirement Plans OneBeacon previously sponsored the Qualified Plan. During the year ended December 31, 2016 , the Qualified Plan finalized its termination by purchasing a group annuity contract from the Principal Financial Group ("Principal"), and making lump sum distributions to Qualified Plan participants electing such payments, which eliminated the remaining Qualified Plan liability, and also ceased administratively paying benefits. As a result of these transactions, the Company recognized an estimated pre-tax pension settlement gain of $3.0 million during the year ended December 31, 2016 , primarily resulting from a refund from Principal related to the final settlement of the Qualified Plan, and no longer has a projected benefit obligation with respect to the Qualified Plan. The Company transferred $47.1 million of excess invested assets from the Qualified Plan into the trust supporting the OneBeacon 401(k) Savings and Employee Stock Ownership Plan ("KSOP"), which is the Qualified Replacement Plan ("QRP"), during the year ended December 31, 2016 (see Note 9—"Employee Share-Based Incentive Compensation Plans"), with $13.0 million of excess invested assets remaining in the Qualified Plan trust as of December 31, 2016 in order to wind-down potential post-termination obligations of that plan, as approved by way of a March 2016 private letter ruling from the IRS. The invested assets related to both the legacy Qualified Plan and the QRP are included in other assets and are accounted for at fair value with related income recognized in net other revenues (expenses). OneBeacon continues to sponsor a non-qualified, non-contributory, defined benefit pension plan ("Non-qualified Plan") covering certain employees who were employed as of December 31, 2001 and former employees who had met the eligibility requirements, as well as retirees. The Non-qualified Plan was frozen and curtailed in 2002, resulting in the pension benefit obligation being equal to the accumulated benefit obligation. The benefits are based primarily on years of service and employees’ compensation through December 31, 2002. OneBeacon’s funding policy is generally to contribute amounts equal to actual benefit payments during the year. There are no regulatory funding requirements that apply to the Non-qualified Plan. The following tables set forth the obligations and funded status, assumptions, plan assets and cash flows associated with the Non-qualified and Qualified Plan as of December 31, 2016 and 2015 : December 31, 2016 2015 ($ in millions) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 109.5 $ 119.7 Service cost 0.2 0.9 Interest cost 1.5 4.6 Settlement loss (gain) on projected benefit obligation (1)(2) 1.2 (1.8 ) Assumption changes (0.9 ) (3.5 ) Actuarial loss 0.4 0.9 Annuity contract purchases related to termination of Qualified Plan (3) (69.0 ) — Benefits, including lump sum payments, and expenses paid with plan assets (3) (17.0 ) (13.7 ) Benefits paid directly by OneBeacon (2.1 ) (2.2 ) Remeasurement due to plan termination (4) — 4.6 Projected benefit obligation at end of year $ 23.8 $ 109.5 Change in plan assets: Fair value of plan assets at beginning of year $ 139.8 $ 146.0 Actual return on plan assets 6.3 7.5 Annuity contract purchases related to termination of Qualified Plan (3) (69.0 ) — Transfer of assets to the QRP (5) (47.1 ) — Benefits, including lump sum payments, and expenses paid with plan assets (3) (17.0 ) (13.7 ) Fair value of plan assets at end of year $ 13.0 $ 139.8 (Unfunded) over funded status at end of year $ (10.8 ) $ 30.3 ___________________________________________________________________________ (1) During the year ended December 31, 2016, OneBeacon recognized a $1.2 million settlement loss primarily resulting from final settlement of the Qualified Plan. (2) During the fourth quarter of 2015, OneBeacon triggered settlement accounting for the Qualified Plan as the total lump sum payments exceeded the service plus interest costs, resulting in a $1.8 million adverse effect on accumulated other comprehensive income. (3) During the year ended December 31, 2016, the Qualified Plan finalized its termination by purchasing group annuity contracts for $69.0 million from Principal and making lump sum distributions, included in the $17.0 million above, to Qualified Plan participants electing such payments. (4) As of December 31, 2015, the projected benefit obligation was valued on a plan termination basis. (5) During the year ended December 31, 2016, OneBeacon transferred excess invested assets from the Qualified Plan after its termination into the trust supporting the QRP. The unfunded status of the consolidated pension plans as of December 31, 2016 was $10.8 million , which includes $13.0 million of excess invested assets remaining in the Qualified Plan trust in order to wind-down potential post-termination obligations of that plan and an under-funding of $23.8 million related to the Non-qualified Plan. The Non-qualified Plan, which is unfunded, does not hold any assets. OneBeacon has set aside $20.6 million in an irrevocable rabbi trust for the benefit of Non-qualified Plan participants. Assets held in the rabbi trust are not reflected in the funded status of the consolidated pension plans as presented but are included in other assets in the consolidated balance sheet. The Company transferred $47.1 million of excess invested assets from the Qualified Plan into the QRP during the year ended December 31, 2016 . Amounts recognized in the financial statements as of December 31, 2016 and 2015 consist of: December 31, 2016 2015 ($ in millions) Net balance sheet asset recorded in other assets $ 13.0 $ 55.8 Net balance sheet liability recorded in other liabilities (23.8 ) (25.5 ) Net amount recognized in the financial statements $ (10.8 ) $ 30.3 Information for the Non-qualified Plan, which had accumulated benefit obligations in excess of plan assets, was as follows: December 31, 2016 2015 ($ in millions) Projected benefit obligation $ 23.8 $ 25.5 Accumulated benefit obligation $ 23.8 $ 25.5 Fair value of plan assets $ — $ — Information for the Qualified Plan, which had accumulated benefit obligations less than plan assets until its termination, was finalized during the year ended December 31, 2016 , was as follows: December 31, 2016 2015 ($ in millions) Projected benefit obligation $ — $ 84.0 (1) Accumulated benefit obligation $ — $ 84.0 (1) Fair value of plan net assets $ 13.0 $ 139.8 ___________________________________________________________________________ (1) Measured on a plan termination basis The amounts recognized in accumulated other comprehensive loss on a pre-tax basis for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 2015 ($ in millions) Accumulated other comprehensive loss at beginning of year $ (8.0 ) $ (8.0 ) Increase (decrease) in accumulated other comprehensive loss: Amortization of net actuarial gains recognized during the year 1.3 1.3 Net actuarial gains (losses) occurring during the year (1) 3.2 (1.3 ) Qualified Plan termination impact (2) (3.0 ) — Accumulated other comprehensive loss at end of year $ (6.5 ) $ (8.0 ) _______________________________________________________________________________ (1) Net actuarial gains in 2016 resulted from changes in assumptions in estimating the projected benefit obligation as well as changes in investment returns and demographic experience different than those assumed. The 2015 net actuarial losses reflect the valuation of the Qualified Plan on a termination basis. (2) During the year ended December 31, 2016, OneBeacon recognized a $3.0 million gain resulting from the final settlement of the Qualified Plan. The amount in accumulated other comprehensive loss, on a pre-tax basis, that has not yet been recognized as a component of net periodic benefit cost for the year ended December 31, 2016 , is attributable to net losses. During the year ending December 31, 2017 , OneBeacon expects $0.9 million will be amortized from accumulated other comprehensive loss into net periodic benefit cost. The components of net periodic benefit cost (income) for the years ended December 31, 2016 , 2015 and 2014 were as follows: December 31, 2016 2015 2014 ($ in millions) Service cost $ 0.2 $ 0.9 $ 0.6 Interest cost 1.5 4.6 4.7 Expected return on plan assets (1.0 ) (8.7 ) (8.5 ) Amortization of net actuarial losses recognized during the year 1.3 1.3 0.3 Net periodic pension cost (income) before special termination benefits 2.0 (1.9 ) (2.9 ) Settlement gain (1) (3.0 ) — — Special termination benefits expense (2) — — 0.3 Total net periodic benefit income $ (1.0 ) $ (1.9 ) $ (2.6 ) _______________________________________________________________________________ (1) Represents the impact of the termination of the Qualified Plan during the year ended December 31, 2016. (2) Special termination benefits represent additional payments made from the Qualified Plan to certain vested participants when their employment was terminated due to a reduction in force. Assumptions The weighted average assumptions for the Non-qualified Plan used to determine benefit obligations as of December 31, 2016 and for the Plans as of December 31, 2015 were as follows: December 31, 2016 2015 Discount rate 3.78 % 3.22 % The weighted average assumptions used to determine net periodic benefit cost for the Plans for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Discount rate 3.88 % 3.91 % Expected long-term rate of return on plan assets 3.00 % (1) 6.00 % _______________________________________________________________________________ (1) Represents the rate for the Qualified Plan prior to its termination in March 2016. The Non-qualified Plan is unfunded and, as such the expected long-term rate of return on plan assets is not applicable. OneBeacon's discount rate assumptions used to account for the Plans reflect the rates at which the benefit obligations could be effectively settled. In addition to consideration of published yields for high quality long-term corporate bonds, U.S. Treasuries and insurance company annuity contract pricings, consideration was given to cash flow matching analyses. OneBeacon performed an analysis of expected long-term rate of return based on the allocation of it Qualified Plan assets as of December 31, 2015 and 2014 to develop expected rates of return for 2016 and 2015, respectively, for each significant asset class or economic indicator. A range of returns was developed based both on forecasts and on broad-market historical benchmarks for expected return, correlation, and volatility for each asset class. During 2015, OneBeacon changed the asset allocation to more fixed income and shorter duration in anticipation of the plan termination, which resulted in a decrease in this assumption as compared to the prior year. Plan Assets The remaining assets of the Qualified Plan are managed internally by OneBeacon and consist substantially of common equity funds tracking the S&P 500 and Russell 1000 indices, held to wind-down potential post-termination obligations of the plan, as approved by way of a March 2016 private letter ruling from the IRS. The Qualified Plan's investments are stated at fair value. A description of key fair value inputs by asset category and the categorization of such inputs into the fair value level hierarchy is provided in Note 1—"Nature of Operations and Summary of Significant Accounting Policies." The fair value of the Qualified Plan's invested assets and their related inputs as of December 31, 2016 and 2015 by asset category were as follows: Fair value at December 31, 2016 (1) Level 1 Level 2 Level 3 Common equity securities $ 12.8 $ 12.8 $ — $ — _______________________________________________________________________________ (1) Excludes cash and short-term investments Fair value at December 31, 2015 Level 1 Level 2 Level 3 Fixed maturity investments $ 132.4 $ 132.4 $ — $ — Short-term investments 7.0 7.0 — — Total $ 139.4 $ 139.4 $ — $ — There were no transfers between Levels 1, 2 or 3 during the years ended December 31, 2016 and 2015 . The Qualified Plan's asset allocations as of December 31, 2016 and 2015 by asset category were as follows: Plan Assets at December 31, 2016 2015 Common equity securities 98.5 % — % Fixed maturity investments — 95.0 Cash and short-term investments 1.5 5.0 Total 100.0 % 100.0 % Cash Flows OneBeacon anticipates contributing $2.1 million to the Non-qualified Plan in 2017 , for which OneBeacon has assets held in a rabbi trust. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Expected Benefit Payments ($ in millions) 2017 $ 2.1 2018 2.1 2019 2.0 2020 2.0 2021 1.9 2022 – 2026 8.4 Other Benefit Plans OneBeacon sponsors an employee savings plan (defined contribution plan) covering the majority of employees. The contributory plan historically provided qualifying employees with matching contributions of 50% of the first 6% of salary (subject to federal limits on allowable contributions in a given year). During 2016, the matching contribution of the contributory plan was replaced with a fixed 3% of salary employer contribution (subject to federal limits on allowable contributions in a given year). Total expense for the contribution was $3.2 million , $3.0 million and $2.7 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. The employee savings plan also includes an employee stock ownership component. See Note 9—"Employee Share-Based Incentive Compensation Plans." OneBeacon had a post-employment benefit liability related to disability and health benefits available to former employees that are no longer employed by the Company of $3.1 million and $4.1 million as of December 31, 2016 and 2015 , respectively. OneBeacon also had a post-employment benefit liability related to death benefits to beneficiaries of former executives that are no longer employed by the Company of $12.8 million and $12.5 million as of December 31, 2016 and 2015 , respectively. OneBeacon has set aside funds to satisfy its obligation in a rabbi trust of $29.3 million and $33.9 million as of December 31, 2016 and 2015 , respectively. During 2016, the Company withdrew $5.5 million from the rabbi trust in accordance with the trust agreement, which remains overfunded. |
Employee Share-Based Incentive
Employee Share-Based Incentive Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Employee Share-Based Incentive Compensation Plans | Employee Share-Based Incentive Compensation Plans The OneBeacon Long-Term Incentive Plan (the "Incentive Plan") provides for the granting of various types of share-based incentive awards to certain key employees of OneBeacon. OneBeacon's share-based compensation plans include performance shares, restricted shares, and restricted stock units ("RSUs"), which are designed to maximize shareholder value over long periods of time by aligning the financial interests of its management with those of its owners. OneBeacon expenses the full cost of all its share-based compensation over the requisite service period. The Company recognized expense related to its share-based compensation plans of $10.8 million , $7.7 million and $7.5 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. Performance Shares Performance shares are conditional awards that can be settled in a specified number of common shares or an equivalent amount of cash. In general, grants are earned, subject to the attainment of pre-specified performance goals, at the end of a three-year period or as otherwise determined by the Compensation Committee of the Board and are valued based on the market price of an underlying OneBeacon common share at the time awards are paid plus cumulative dividends for the period beginning at grant date and ending at the time awards are paid. Results that significantly exceed pre-specified targets can result in a performance share payout of up to 200% of granted shares whereas results significantly below target could result in no payout. Performance shares are typically settled by payment of cash, though, in some instances, they may be settled in common shares or may be deferred in accordance with the terms of OneBeacon's deferred compensation plan. Compensation expense, based on the estimated performance share payout, is recognized ratably over the performance period. For awards granted during the year ended December 31, 2014 , the targeted performance goal for full payment of the outstanding performance shares is the attainment of a growth in book value per share ("GBVPS") of 14% for the 2014 - 2016 performance cycle. At a GBVPS of 7% or less, no performance shares would be earned and at a GBVPS of 21% or more, 200% of performance shares would be earned. For awards granted during the year ended December 31, 2015 , the targeted performance goal for full payment of the outstanding performance shares is the attainment of a GBVPS of 13% for the performance cycle 2015 - 2017 . At a GBVPS of 6% or less, no performance shares would be earned and at a GBVPS of 20% or more, 200% of performance shares would be earned. For awards granted during the year ended December 31, 2016 , the targeted performance goal for full payment of the outstanding performance shares is the attainment of a GBVPS of 12% for the performance cycle 2016 - 2018 . At a GBVPS of 5% or less, no performance shares would be earned and at a GBVPS of 19% or more, 200% of performance shares would be earned. The following summarizes performance share activity for performance shares for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Target Performance Shares outstanding Accrued expense Target Performance Shares outstanding Accrued expense Target Performance Shares outstanding Accrued expense ($ in millions) Beginning of period 449,435 $ 1.4 517,470 $ 3.4 493,421 $ 4.0 Payments and deferrals (1) (167,300 ) (0.6 ) (181,290 ) (1.5 ) (142,138 ) (1.0 ) New awards 163,150 — 154,887 — 165,800 — Forfeitures and net change in assumed forfeitures 7,234 — (41,632 ) (0.1 ) 387 — Expense (income) recognized — 0.8 — (0.4 ) — 0.4 End of period 452,519 $ 1.6 449,435 $ 1.4 517,470 $ 3.4 _______________________________________________________________________________ (1) Performance share payments in 2016 for the 2013 - 2015 performance cycle were based upon a performance factor of 24.3% . Performance share payments in 2015 for the 2012-2014 performance cycle were based upon a performance factor of 45.7% . Performance share payments in 2014 for the 2011-2013 performance cycle were based upon a performance factor of 37.1% . The following summarizes performance shares outstanding and accrued performance share expense as of December 31, 2016 for each performance cycle: Target Performance Shares outstanding Accrued expense ($ in millions) Performance cycle: 2014 – 2016 142,710 $ — 2015 – 2017 146,659 0.7 2016 – 2018 163,150 0.9 Total as of December 31, 2016 452,519 1.6 If 100% of the outstanding performance shares had been vested on December 31, 2016 , the total additional compensation cost to be recognized would have been $2.1 million , based on current accrual factors (common share price, accumulated dividends and performance assumptions) as of December 31, 2016 . The Company has assumed no forfeitures as of December 31, 2016 based on recent experience. All performance shares earned and paid were settled in cash or by deferral into OneBeacon's deferred compensation plan. Restricted Shares On February 24, 2016, OneBeacon issued to certain employees 170,650 , shares of restricted stock having a grant date fair value of $2.3 million , of which 92,500 are scheduled to cliff vest on February 24, 2018 and the remaining 78,150 on January 1, 2019. On February 24, 2015, OneBeacon issued to certain employees 75,950 shares of restricted stock having a grant date fair value of $1.1 million , of which 67,722 were outstanding as of December 31, 2016 and are scheduled to cliff vest in full on January 1, 2018. On March 1, 2012, OneBeacon issued shares of restricted stock to certain employees. Of these restricted shares, 142,500 shares vested on February 28, 2014 and the remaining 138,500 restricted shares vested on February 28, 2015. On May 25, 2011, OneBeacon issued to its CEO 630,000 shares of stock, of which 157,500 restricted shares vested on each of February 22, 2014, 2015 and 2016, and the remaining 157,500 restricted shares are scheduled to vest on February 22, 2017. The restricted shares contain dividend participation features and therefore are considered participating securities. The following summarizes restricted shares activity for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value ($ in millions) Beginning of period 382,722 $ 2.5 612,500 $ 3.5 915,000 $ 6.5 New awards 170,650 2.3 75,950 1.1 — — Forfeitures — — (9,728 ) (0.1 ) (2,500 ) — Vested (157,500 ) — (296,000 ) — (300,000 ) — Expense recognized — (2.7 ) — (2.0 ) — (3.0 ) End of period 395,872 $ 2.1 382,722 $ 2.5 612,500 $ 3.5 Restricted shares that vested during the years ended December 31, 2016 , 2015 and 2014 had a grant date fair value of $2.1 million , $4.3 million and $4.3 million , respectively. As of December 31, 2016 , unrecognized compensation expense of $2.1 million related to restricted stock awards is expected to be recognized over a weighted-average period of 0.7 years. Restricted Stock Units During the year ended December 31, 2016 , 233,461 RSUs were issued, of which 214,506 were outstanding as of December 31, 2016 . The RSUs are scheduled to cliff vest in full on December 31, 2018, at which time the RSUs will be paid out in cash or shares at the discretion of the Compensation Committee. During the year ended December 31, 2015 , 226,778 RSUs were issued, of which 173,042 were outstanding as of December 31, 2016 . The RSUs are scheduled to cliff vest in full on December 31, 2017, at which time they will be paid out in cash or common shares at the discretion of the Compensation Committee. Compensation expense associated with the RSUs, which is recognized ratably over the three year vesting period, was $2.1 million and $0.8 million for the year ended December 31, 2016 and 2015 , respectively. If 100% of the outstanding RSUs had been vested on December 31, 2016 , the total additional compensation cost to be recognized would have been $3.9 million , based on current accrual factors (common share price and accumulated dividends) as of December 31, 2016 . Share-Based Compensation under Qualified Retirement Plans OneBeacon sponsors a defined contribution plan, the KSOP. Under the KSOP, participants have the ability to invest their balances in several different investment options, including the common shares of White Mountains and the common shares of the Company. The employee stock ownership component of the KSOP provides all participants with an annual base contribution in common shares of the Company equal to 3% of their salary, up to the applicable Social Security wage base (or $118,500 with respect to 2016). Additionally, those participants not otherwise eligible to receive certain other Company benefits can earn a variable contribution up to an additional 6% of their salary, capped at the annual covered compensation limits ( $265,000 for 2016), contingent upon OneBeacon's performance. The variable contribution amounts for eligible participants constituted approximately 3% , 3% and 2% , respectively, of salary for the years ended December 31, 2016 , 2015 and 2014 . OneBeacon has recorded $5.2 million , $5.4 million and $4.1 million , respectively, in compensation expense to pay benefits and allocate common shares to participants' accounts for the years ended December 31, 2016 , 2015 and 2014 . As discussed in Note 8—"Retirement Plans," $47.1 million was transferred to the KSOP plan trust during the year ended December 31, 2016 and will be used to fund future contributions. As of December 31, 2016 and 2015 , the KSOP owned less than 3% of either of the total White Mountains common shares outstanding or the total Company common shares outstanding. All OneBeacon common shares held by the KSOP are considered outstanding for earnings (loss) per share computations. |
Common Shareholders' Equity
Common Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Common Shareholders' Equity | Common Shareholders' Equity Common Shares Repurchased and Retired On August 22, 2007, the Company's Board authorized the repurchase of up to $200.0 million of its Class A common shares from time to time, subject to market conditions. Shares may be repurchased on the open market or through privately negotiated transactions. This authorization does not have a stated expiration date. During the year ended December 31, 2016 , 850,349 shares were repurchased under the share repurchase authorization for $10.6 million at an average share price of $12.42 . During the year ended December 31, 2015, 166,368 shares were repurchased under the share repurchase authorization for $2.1 million at an average price of $12.62 . No shares were repurchased under the share repurchase authorization during the year ended December 31, 2014 . The amount of authorization remaining is $75.0 million as of December 31, 2016 . During the years ended December 31, 2016 , 2015 , and 2014 the Company repurchased 64,981 , 112,051 , and 106,366 common shares, respectively, for $0.9 million , $1.6 million and $1.8 million during the years ended December 31, 2016 , 2015 , and 2014 , respectively, to satisfy employee income tax withholding, pursuant to employee benefit plans. Shares repurchased pursuant to employee benefit plans do not fall under the board authorizations referred to above. Dividends on Common Shares During the year ended December 31, 2016 the Company declared and paid cash dividends totaling $79.2 million and during the years ended December 31, 2015 and 2014 the Company declared and paid cash dividends totaling $80.0 million , or $0.84 per common share of regular quarterly cash dividends for each year. Change in Accumulated Other Comprehensive Income (Loss) The pre-tax components of the Company's change in other comprehensive income (loss) and the related income tax benefit (expense) are as follows: Year ended December 31, 2016 2015 2014 ($ in millions) Net change in benefit plan assets and obligations $ 1.5 $ — $ (18.5 ) Income tax (expense) benefit (0.5 ) — 6.5 Net change in benefit plan assets and obligations, net of tax $ 1.0 $ — $ (12.0 ) |
Statutory Capital and Surplus
Statutory Capital and Surplus | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Statutory Capital and Surplus | Statutory Capital and Surplus OneBeacon's U.S. insurance operations are subject to regulation and supervision in each of the states where they are domiciled and licensed to conduct business. Generally, state regulatory authorities have broad supervisory and administrative powers over such matters as licenses, standards of solvency, premium rates, policy forms, investments, security deposits, methods of accounting, form and content of financial statements, reserves for unpaid loss and LAE, reinsurance, minimum capital and surplus requirements, dividends and other distributions to shareholders, periodic examinations, and annual and other report filings. In general, such regulation is for the protection of policyholders rather than shareholders. State insurance departments have established the insurer solvency laws and regulatory infrastructure to maintain accredited status with the National Association of Insurance Commissioners ("NAIC"). A key solvency-driven NAIC accreditation requirement is a state's adoption of risk-based capital ("RBC") requirements. As of December 31, 2016, OneBeacon's U.S. insurance operating subsidiaries exceeded their respective RBC requirements. The Insurance Act 1978 of Bermuda and related regulations, as amended (the “Insurance Act”), regulates the insurance businesses of Bermuda domiciled insurers. Under the Insurance Act, insurers are required to maintain available statutory capital and surplus at a level equal to or in excess of its enhanced capital requirement which is established by reference to either a Bermuda Solvency Capital Requirement ("BSCR") model or an approved internal capital model. Generally, the Bermuda Monetary Authority (“BMA”) has broad supervisory and administrative powers over such matters as licenses, standards of solvency, investments, methods of accounting, form and content of financial statements, minimum capital and surplus requirements, and annual and other report filings. OneBeacon’s U.S. combined statutory surplus was $624.8 million and $622.3 million as of December 31, 2016 and 2015, respectively. OneBeacon's combined U.S. statutory net income (loss) for the years ended December 31, 2016, 2015 and 2014 was $36.7 million , $44.5 million and $(14.2) million , respectively. The minimum policyholders' surplus necessary to satisfy OneBeacon's top tier regulated U.S. insurance operating subsidiary, ASIC, regulatory requirements was $107.5 million as of December 31, 2016, which equals the authorized control level of the NAIC risk-based capital of OneBeacon’s primary top tier regulated operating subsidiary. OneBeacon’s statutory capital and surplus for Split Rock was $270.2 million and $249.5 million as of December 31, 2016 and 2015, respectively, which met Bermuda's statutory capital and surplus requirements. Split Rock reported $42.4 million , $45.5 million and $46.2 million of statutory net income (loss) for the years ended December 31, 2016, 2015 and 2014, respectively. The principal differences between OneBeacon's combined U.S. and Split Rock's statutory reported amounts, and the amounts reported in accordance with GAAP, include deferred acquisition costs, deferred taxes and market value adjustments for debt securities. OneBeacon's insurance subsidiaries' statutory policyholders' surplus as of December 31, 2016 was in excess of the minimum requirements of relevant state and Bermuda insurance regulations. Dividend Capacity Under the insurance laws of the states and jurisdictions under which OneBeacon's insurance operating subsidiaries are domiciled, an insurer is restricted with respect to the timing and the amount of dividends it may pay without prior approval by regulatory authorities. Accordingly, there can be no assurance regarding the amount of such dividends that may be paid by such subsidiaries in the future. Our top tier regulated U.S. insurance operating subsidiary, Atlantic Specialty Insurance Company ("ASIC"), has the ability to pay dividends to its immediate parent without the prior approval of regulatory authorities in an amount set by formula based on the lesser of (i) adjusted net investment income, as defined by statute, or (ii) 10% of statutory surplus, in both cases as most recently reported to regulatory authorities, subject to availability of earned surplus. Based upon the formula described above, as of December 31, 2016, ASIC has the ability to pay $11.4 million of dividends without prior approval of regulatory authorities. As of December 31, 2016, ASIC had $624.8 million of statutory surplus and $69.0 million of earned surplus. During the years ended December 31, 2016 and 2015, ASIC paid dividends to its immediate parent of $26.5 million and $44.9 million , respectively, to its immediate parent. During the year ended December 31, 2015, ASIC also redeemed and retired common shares held by its immediate parent at an aggregate price of $66.0 million . In 2017, Split Rock has the ability to distribute statutory capital without the prior approval of the Bermuda Monetary Authority, provided it does not reduce its total statutory capital, as shown in its previous financial year’s statutory financial statements, by 15% or more. In addition, Split Rock has the ability to pay dividends without the prior notification of regulatory authorities of up to 25% of its previous financial year's total statutory capital and surplus, subject to meeting all appropriate liquidity and solvency requirements as specified in the Insurance Act 1978 and the Companies Act 1981. As of December 31, 2016, Split Rock had $210.1 million of total statutory capital and $60.1 million of surplus for total statutory capital and surplus of $270.2 million . Based upon the limitations described above, Split Rock currently has the ability to distribute up to $31.5 million of statutory capital and pay up to $60.1 million of dividends during 2017 without the prior approval of regulatory authorities. During 2016, Split Rock paid $25.0 million of dividends to its immediate parent and paid no such dividends during 2015. Also, during 2015, OneBeacon Ltd., through an intermediary holding company, contributed $85.0 million to Split Rock as statutory capital. During the years ended December 31, 2016 and 2015, the Company's unregulated insurance operating subsidiaries paid $5.7 million and $5.3 million , respectively, of dividends to their immediate parent. As of December 31, 2016, OneBeacon's unregulated insurance operating subsidiaries had $56.4 million of net unrestricted cash, short-term investments and fixed maturity investments and $71.9 million of other investments consisting of the surplus notes. As described in Note 10—"Common Shareholders' Equity," during the years ended December 31, 2016, 2015 and 2014 OneBeacon Ltd. declared and paid regular quarterly dividends to its common shareholders totaling $79.2 million , $80.0 million and $80.0 million , respectively. As of December 31, 2016, OneBeacon Ltd. and its intermediate subsidiaries held $64.5 million of net unrestricted cash, short-term investments and fixed maturity investments and $11.9 million of common equity securities outside of its regulated and unregulated insurance operating subsidiaries. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company has sixteen active underwriting operating segments, which are managed by the chief operating decision maker and are aggregated into two underwriting reportable segments. The two underwriting reportable segments were determined based on the nature of products or services, the production process, method of distribution and the nature of the regulatory environment. The principal difference between the reportable segments is the type or class of customer. The Specialty Products segment is comprised of ten active underwriting operating segments, representing an aggregation based on those that offer distinct products and tailored coverages and services to a broad customer base across the United States. The Specialty Products segment includes Healthcare , Tuition Reimbursement, Programs, Surety, Other Professional Lines, Management Liability, Financial Services, Specialty Property, Environmental , and Financial Institutions , as well as the inactive Crop and Collector Cars and Boats underwriting operating segments which were exited in 2015 and 2013, respectively. The Specialty Industries segment is comprised of six active underwriting operating segments, representing an aggregation based on those that focus on solving the unique needs of a particular customer or industry group. The Specialty Industries segment includes the Accident, Technology , Ocean Marine , Government Risks , Entertainment , and Inland Marine underwriting operating segments. The Investing, Financing and Corporate segment includes the investing and financing activities for OneBeacon on a consolidated basis, and certain other activities conducted through the Company and its intermediate subsidiaries, including the 100% quota share reinsurance agreement with Bedivere, which cedes the losses associated with the legacy Runoff Business to Bedivere, one of the transferred entities that was sold as part of the Runoff Transaction and has been an indirect wholly-owned subsidiary of Armour since December 23, 2014. There is no net retention of the legacy Runoff Business to OneBeacon. Invested assets are not allocated to the Specialty Products and Specialty Industries segments since OneBeacon does not manage them by segment. Invested assets, net investment income and net realized and change in unrealized investment gains related to OneBeacon's Specialty Products and Specialty Industries segments are included in the Investing, Financing and Corporate segment since these assets are available for payment of losses and expenses for all segments. Debt and the related interest expense on debt also are not allocated to or managed by segment and are also included in the Investing, Financing and Corporate segment. Substantially all of the Company's revenue is generated from customers located in the United States. Financial information for OneBeacon's reportable segments is as follows: Insurance Operations Investing, Financing and Corporate Specialty Products Specialty Industries Consolidated ($ in millions) Year ended December 31, 2016 Earned premiums $ 524.4 $ 576.2 $ — $ 1,100.6 Loss and loss adjustment expense (375.4 ) (280.6 ) — (656.0 ) Policy acquisition expenses (99.5 ) (106.5 ) — (206.0 ) Other underwriting expenses (88.6 ) (120.4 ) — (209.0 ) Total underwriting income (loss) (39.1 ) 68.7 — 29.6 Net investment income — — 50.6 50.6 Net realized and change in unrealized investment gains — — 37.7 37.7 Net other revenues (expenses) (0.1 ) 1.5 4.1 5.5 General and administrative expenses — (2.4 ) (11.8 ) (14.2 ) Interest expense — — (13.1 ) (13.1 ) Pre-tax income (loss) from continuing operations $ (39.2 ) $ 67.8 $ 67.5 $ 96.1 Year ended December 31, 2015 Earned premiums $ 560.3 $ 615.9 $ — $ 1,176.2 Loss and loss adjustment expense (310.7 ) (390.0 ) — (700.7 ) Policy acquisition expenses (100.1 ) (113.7 ) — (213.8 ) Other underwriting expenses (97.9 ) (120.3 ) — (218.2 ) Total underwriting income (loss) 51.6 (8.1 ) — 43.5 Net investment income — — 45.9 45.9 Net realized and change in unrealized investment gains — — (35.1 ) (35.1 ) Net other revenues (expenses) (0.2 ) 1.4 (1.8 ) (0.6 ) General and administrative expenses — (2.7 ) (12.7 ) (15.4 ) Interest expense — — (13.0 ) (13.0 ) Pre-tax income (loss) from continuing operations $ 51.4 $ (9.4 ) $ (16.7 ) $ 25.3 Year ended December 31, 2014 Earned premiums $ 582.1 $ 595.0 $ — $ 1,177.1 Loss and loss adjustment expense (457.9 ) (357.2 ) — (815.1 ) Policy acquisition expenses (96.2 ) (107.1 ) — (203.3 ) Other underwriting expenses (78.4 ) (100.8 ) — (179.2 ) Total underwriting income (loss) (50.4 ) 29.9 — (20.5 ) Net investment income — — 43.4 43.4 Net realized and change in unrealized investment gains — — 40.4 40.4 Net other revenues 0.9 1.1 3.8 5.8 General and administrative expenses 0.2 (2.3 ) (11.7 ) (13.8 ) Interest expense — — (13.0 ) (13.0 ) Pre-tax income (loss) from continuing operations $ (49.3 ) $ 28.7 $ 62.9 $ 42.3 Insurance Operations Investing, Financing and Corporate Specialty Products Specialty Industries Consolidated ($ in millions) December 31, 2016 Assets Total investment securities $ — $ — $ 2,620.4 $ 2,620.4 Premiums receivable 81.4 146.9 — 228.3 Reinsurance recoverables (1) 125.4 35.8 18.3 179.5 Deferred acquisition costs 48.3 48.0 — 96.3 Ceded unearned premiums 34.4 9.8 — 44.2 Other assets (2) 1.1 0.1 420.0 421.2 Total Assets $ 290.6 $ 240.6 $ 3,058.7 $ 3,589.9 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 776.6 $ 570.7 $ 18.3 $ 1,365.6 Unearned premiums 319.8 255.3 — 575.1 Funds held under insurance contracts 153.0 — — 153.0 Debt — — 273.2 273.2 Other liabilities (2) — — 197.8 197.8 Total Liabilities $ 1,249.4 $ 826.0 $ 489.3 $ 2,564.7 December 31, 2015 Assets Total investment securities $ — $ — $ 2,591.4 $ 2,591.4 Premiums receivable 63.0 156.0 — 219.0 Reinsurance recoverables (1) 139.5 33.6 20.4 193.5 Deferred acquisition costs 49.6 51.1 — 100.7 Ceded unearned premiums 19.2 10.3 — 29.5 Other assets (2) 0.9 0.1 467.5 468.5 Total Assets $ 272.2 $ 251.1 $ 3,079.3 $ 3,602.6 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 772.2 $ 597.2 $ 20.4 $ 1,389.8 Unearned premiums 288.1 272.2 — 560.3 Funds held under insurance contracts 137.7 — — 137.7 Debt — — 272.9 272.9 Other liabilities (2) — — 237.4 237.4 Total Liabilities $ 1,198.0 $ 869.4 $ 530.7 $ 2,598.1 _______________________________________________________________________________ (1) ASIC entered into a 100% quota share reinsurance agreement in conjunction with the Runoff Transaction whereby ASIC is ceding to Bedivere 100% of the legacy Runoff Business that was written by ASIC or one of the ongoing entities. As of December 31, 2016 and 2015, $18.3 million and $20.4 million , respectively, are included in both unpaid loss and LAE reserves and reinsurance recoverables included within Investing, Financing, and Corporate resulting from that agreement. (2) The majority of other assets and other liabilities are not separately identifiable at the segment level and have therefore been included within Investing, Financing, and Corporate. |
Variable Interest Entities ("VI
Variable Interest Entities ("VIE") | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Variable Interest Entities (VIE) | Variable Interest Entities ("VIE") Reciprocals Reciprocals are policyholder-owned insurance carriers organized as unincorporated associations. Each policyholder insured by the reciprocal shares risk with the other policyholders. Policyholders share profits and losses in the same proportion as the amount of insurance purchased but are not subject to assessment for net losses of the reciprocal. OneBeacon has one reciprocal that was capitalized by loaning funds in exchange for a surplus note. Houston General Insurance Management Company ("HGMC"), a wholly-owned indirect subsidiary of the Company, provides management services for a fee to the reciprocal, HGIE. The surplus note, as amended, has a remaining balance of $5.0 million . The principal and interest on the remaining surplus note is repayable to HGMC only with regulatory approval. The obligation to repay principal on the note is subordinated to all other liabilities including obligations to policyholders and claimants for benefits under insurance policies. OneBeacon has no ownership interest in the reciprocal. OneBeacon has determined that HGIE qualifies as a VIE. Furthermore, OneBeacon has determined that it is the primary beneficiary as it has both the power to direct the activities of the VIE that most significantly impact the entity's economic performance and the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE as a result of the management services provided to the reciprocal and the funds loaned to it. Accordingly, OneBeacon consolidates HGIE. As of December 31, 2016 , consolidated amounts related to HGIE included total assets of $5.1 million and total liabilities of $5.0 million . As of December 31, 2016 , the net amount of capital at risk is equal to the surplus note of $5.0 million less the accumulated losses of $0.5 million which includes accrued interest on the surplus note of $0.6 million which eliminates in consolidation. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments OneBeacon carries its financial instruments on its balance sheet at fair value with the exception of its investment in qualified affordable housing projects, which is accounted for using the proportional amortization method, and fixed-rate, long-term indebtedness. For certain financial instruments where quoted market prices are not available, other independent valuation techniques and assumptions are used. Because considerable judgment is used, these estimates are not necessarily indicative of amounts that could be realized in a current market exchange. Certain financial instruments are excluded from disclosure, including insurance contracts. As of December 31, 2016 and 2015 , the fair value of OneBeacon's 2012 Senior Notes (its fixed-rate, long-term indebtedness) was $274.2 million and $276.4 million , respectively. As described in Note 6 — "Debt," the net carrying value of the 2012 Senior Notes was $273.2 million and $272.9 million as of December 31, 2016 and 2015 , respectively. The fair value measurement of the 2012 Senior Notes is classified as Level 2 in the valuation hierarchy and determined based on the closing market price at the end of the quarter. |
Related Party Disclosures
Related Party Disclosures | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Disclosures | Related Party Disclosures White Mountains In 2006, White Mountains sold 27.6 million or 27.6% of the Company's common shares in an initial public offering. Prior to the initial public offering, OneBeacon was a wholly-owned subsidiary of White Mountains. As of December 31, 2016 , White Mountains owned 76.1% of the Company's outstanding common shares. Separation Agreement & Other Servicing Arrangements In connection with the initial public offering, the Company entered into a separation agreement dated November 14, 2006 with White Mountains (the "Separation Agreement") to address a number of operational, administrative and financial matters relating to the fact that OneBeacon would no longer be a wholly-owned subsidiary of White Mountains. These matters included, among others, the administration of payroll, employee benefits programs, deferred compensation and 401(k) plans, OneBeacon's travel and logistics office, certain information technology assets and functions and certain agreements with respect to finance and tax arrangements. Pursuant to the Separation Agreement, White Mountains has agreed to indemnify the Company and its subsidiaries, as well as their current and former officers, directors and employees to the extent permitted by law, for any and all claims or actions resulting in losses, expenses or damages relating to or arising out of the business, operation or ownership of any subsidiary company or business owned by the Company or its subsidiaries that, subsequent to OneBeacon's ownership, was a subsidiary or business of White Mountains (but no longer a subsidiary or business of OneBeacon). For the years ended December 31, 2016 , 2015 and 2014 , OneBeacon recorded expenses of $0.2 million , $0.3 million and $0.3 million , respectively, and received amounts of $1.4 million for the year ended December 31, 2016 and $2.0 million for each of the years ended December 31, 2015 and 2014 , for services under the Separation Agreement. Effective October 19, 2016, the Company and its Bermuda subsidiaries entered into services agreements with Bridge Holdings (Bermuda), Ltd. ("Bridge Holdings"), a wholly owned subsidiary of White Mountains, pursuant to which Bridge Holdings provides office space and various management and administrative services for the Company’s Bermuda companies, including Split Rock. For the year ended December 31, 2016, the Company and its subsidiaries paid an aggregate of less than $0.1 million in fees pursuant to these services agreements. Registration Rights Agreement In connection with the initial public offering, the Company entered into a registration rights agreement dated November 14, 2006 with White Mountains that provides that White Mountains can demand that the Company register the distribution of its common shares owned by White Mountains ("demand" registration rights). In addition, White Mountains has "piggyback" registration rights, which means that White Mountains may include its shares in any future registrations of the Company's common equity securities, whether or not that registration relates to a primary offering by the Company or a secondary offering by or on behalf of any of the Company's shareholders. These registration rights are transferable by White Mountains. The Company will pay all costs and expenses in connection with each such registration, except underwriting discounts and commissions applicable to the common shares sold by White Mountains. The registration rights agreement contains customary terms and provisions with respect to, among other things, registration procedures and rights to indemnification in connection with the registration of the common shares on behalf of White Mountains. The Company will register sales of its common shares owned by employees and directors of White Mountains pursuant to employee share or option plans, but only to the extent such registration is required for the shares to be freely tradable. Investment Management Agreements with White Mountains Advisors LLC ("WM Advisors") Pursuant to an Amended and Restated Investment Management Agreement dated December 23, 2014 (the "Investment Management Agreement"), WM Advisors supervises and directs OneBeacon's managed investment portfolio in accordance with the investment objectives, policies and restrictions described in OneBeacon's investment guidelines (the "Investment Guidelines"). Under the Investment Management Agreement, WM Advisors has full discretion and authority to make all investment decisions in respect to OneBeacon's managed investment portfolio, and to do anything which WM Advisors deems is required, appropriate or advisable in connection with the foregoing, subject to and in accordance with Investment Guidelines. The assets of OneBeacon's portfolio are held in one or more separately identifiable accounts in the custody of a bank or similar entity designated by OneBeacon and acceptable to WM Advisors. The agreement is terminable by WM Advisors or OneBeacon upon 60 days prior written notice. OneBeacon is responsible for custodial arrangements and the payment of all custodial charges and fees. OneBeacon has agreed to pay annual investment management fees generally based on the quarter-end market values held under custody as set forth in the table below: Assets Under Management Annual Fee Investment Grade Fixed Income: —Up to $1 billion 10.0 basis points —Next $1 billion 8.5 basis points —Next $3 billion 7.5 basis points —Greater than $5 billion 2.5 basis points High Yield Fixed Income 25.0 basis points ETFs 10.0 basis points Equities 100.0 basis points Hedge Funds 100.0 basis points Private Equities & Deferreds: First 2 years of fund's life (committed) 100.0 basis points Thereafter (fair value) 100.0 basis points Affordable housing credit funds: First year of fund's life (committed) 100.0 basis points Thereafter (fair value) 10.0 basis points OneBeacon incurred $3.7 million , $3.6 million and $3.4 million in total fees for investment management services provided by WM Advisors under the Investment Management Agreements during the years ended December 31, 2016 , 2015 and 2014 , respectively. WM Advisors is also paid a quarterly fee for treasury management services computed at the annual rate of 1.75 basis points ( 0.0175% ) of the aggregate value of net assets on an annual basis. OneBeacon incurred $0.5 million in treasury management fees during the year ended December 31, 2016 and $0.4 million in treasury management fees during each of the years ended December 31, 2015 and 2014 . Effective as of December 15, 2016, the Company’s indirect subsidiary, OB Portfolio Solutions ICAV (“OB ICAV”) entered into a tri-party Investment Management Agreement (the “ICAV Investment Management Agreement”) in which WM Advisors provides investment advisory and management services to the OB ICAV in accordance with the fund’s stated investment objectives, policies and restrictions. Under the ICAV Investment Management Agreement, WM Advisors is paid a quarterly fee computed at an annual rate of 1.75 basis points ( 0.0175% ) of the net asset value of the OB ICAV. For the year ended December 31, 2016, OB ICAV incurred a fee of less than $0.1 million for the investment advisory and management services provided by WM Advisors under this arrangement. Star & Shield Insurance Exchange ASIC and Split Rock each entered into a quota share agreement effective as of November 1, 2013, to reinsure certain risks of Star & Shield Insurance Exchange (“Star & Shield”), a reciprocal insurance exchange consolidated in White Mountains, which provides private passenger auto insurance. ASIC and Split Rock recorded combined written premiums of negative $2.8 million and positive $17.3 million in 2015 and 2014, respectively, related to Star & Shield which are included in the Specialty Products reporting segment. The quota share agreement was terminated on December 31, 2014 and the negative $2.8 million net written premiums in 2015 reflects the transfer of the remaining net unearned premium balance. Prospector Investment Management Agreement with Prospector Until June 30, 2015, Prospector Partners LLC (“Prospector”) supervised and directed the publicly-traded common equity securities and convertible fixed maturity investments portions of OneBeacon's investment portfolio and managed assets for each of the Qualified Plan, the Non-Qualified Plan, and two proprietary funds under the KSOP pursuant to separate investment management agreements with OneBeacon and each of the plans. Under the agreements, OneBeacon and the plans paid annual management fees to Prospector based on aggregate net assets under management according to the following schedule: 1.00% on the first $200 million ; 0.50% on the next $200 million ; and 0.25% on amounts over $400 million . For the years ended December 31, 2015 and 2014, OneBeacon incurred $0.4 million and $2.0 million , respectively, in fees for investment management services provided by Prospector. For the years ended December 31, 2015 and 2014, the employee benefit plans incurred $0.9 million and $1.3 million , respectively, in fees for investment management services provided by Prospector. Richard P. Howard was a portfolio manager of Prospector and a director of the Company until his retirement from Prospector and his resignation from the Company’s Board of Directors effective December 31, 2014. John D. Gillespie was a director of White Mountains and the founder and managing member of Prospector. In conjunction with Mr. Gillespie’s retirement from the White Mountains Board of Directors, the investment management agreement between OneBeacon and Prospector and the OneBeacon benefit plans and Prospector was terminated in June 2015. Prospector Managed Limited Partnerships Prior to fully redeeming its interests in 2015, OneBeacon held investments in limited partnerships managed by Prospector. Under the limited partnership agreements, Prospector served as general partner and general manager of the funds and was paid a management fee by OneBeacon. In addition, OneBeacon allocated a portion of its earnings from OneBeacon's limited partnership interests to Prospector as an incentive fee. For the years ended December 31, 2015 and 2014, OneBeacon incurred $0.1 million and $0.2 million , respectively, in management fees. For the year ended December 31, 2014, OneBeacon incurred $0.2 million in incentive fees and less than $0.1 million for the year ended December 31, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Leases OneBeacon leases certain office space under noncancellable operating leases expiring at various dates through 2030. Net rental expense for all of OneBeacon's locations was approximately $10.7 million , $12.0 million and $11.1 million , respectively, for the years ended December 31, 2016 , 2015 and 2014 . OneBeacon's future annual minimum rental payments required under noncancellable leases primarily for office space are $10.1 million , $8.4 million , $7.4 million , $5.9 million and $26.4 million for 2017, 2018, 2019, 2020 and 2021 and thereafter, respectively. As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies," in December 2011, the Company sold the majority of its then owned fixed assets and capitalized software. The Company entered into lease financing arrangements with US Bancorp and Fifth Third whereby it sold furniture and equipment and capitalized software, respectively, at a cost equal to net book value. The Company then leased the fixed assets back from US Bancorp for a lease term of five years and leased the capitalized software back from Fifth Third for a lease term of four years which expired in December 2015. The Company received cash proceeds of $23.1 million as a result of entering into the sale-leaseback transactions. In December 2016 the lease agreement with US Bancorp expired and the leased assets under the agreement with a remaining book value of $1.3 million reverted ownership back to the Company, and there is no longer a capital lease asset or obligation. As of December 31, 2015, the Company had a capital lease obligation of $1.7 million included within other liabilities and a capital lease asset of $2.4 million included within other assets. Other Investments OneBeacon has future binding commitments to fund certain limited partnership investments which do not have fixed funding dates and totaled $15.0 million as of December 31, 2016 . Assigned Risks As a condition of license to do business in certain states, OneBeacon's insurance operations are required to participate in mandatory shared market mechanisms. Each state dictates the types of insurance and the level of coverage that must be provided. The total amount of such business an insurer is required to accept is based on its market share of voluntary business in the state. In certain cases, OneBeacon is obligated to write business from mandatory shared market mechanisms at some time in the future based on the market share of voluntary policies it is currently writing. Underwriting results related to assigned risk plans are typically adverse and are not subject to the predictability associated with OneBeacon's voluntarily written business. Guaranty Funds Under existing guaranty fund laws in all states, insurers licensed to do business in those states can be assessed for certain obligations of insolvent insurance companies to policyholders and claimants. OneBeacon's insurance subsidiaries record guaranty fund assessments when such assessments are billed by the respective guaranty funds. In addition, OneBeacon will monitor other insurance company insolvencies and will accrue a liability when such losses are determined to be probable and the assessment amounts can be reasonably estimated. The actual amount of such assessments will depend upon the final outcome of rehabilitation proceedings and will be paid over several years. As of December 31, 2016 , the reserve for such assessments at OneBeacon's insurance subsidiaries totaled $8.0 million . Legal Contingencies OneBeacon, and the insurance and reinsurance industry in general, is routinely subject to claims-related litigation and arbitration in the normal course of business, as well as litigation and arbitration that do not arise from, or directly relate to, claims activity. OneBeacon's estimates of the costs of settling matters routinely encountered in claims activity are reflected in the reserves for unpaid loss and LAE. See Note 3—"Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves." OneBeacon evaluates its exposure to non-claims related litigation and arbitration and establishes accruals for litigation and arbitration if it is probable that a loss has been incurred and it can be reasonably estimated. Disclosure of litigation and arbitration is made if it is probable that a loss has been incurred or if there is a reasonable possibility that a loss may have been incurred. Although the ultimate outcome of claims and non-claims related litigation and arbitration, and the amount or range of potential loss at any particular time, is often inherently uncertain, management does not believe that the ultimate outcome of such claims and non-claims related litigation and arbitration will have a material adverse effect on OneBeacon's financial condition, full year results of operations, or cash flows. The following summarizes significant ongoing non-claims related litigation or arbitration as of December 31, 2016 : Deutsche Bank Litigation In June 2011, Deutsche Bank Trust Company Americas, Law Debenture Company of New York and Wilmington Trust Company (collectively referred to as “Plaintiffs”), in their capacity as trustees for certain senior notes issued by the Tribune Company (“Tribune”), filed lawsuits in various jurisdictions (the “Noteholder Actions”) against numerous defendants including OneBeacon, OneBeacon-sponsored benefit plans and other affiliates of White Mountains in their capacity as former shareholders of Tribune seeking recovery of the proceeds from the sale of common stock of Tribune in connection with Tribune's leveraged buyout in 2007 (the “LBO”). Tribune filed for bankruptcy in 2008 in the Delaware bankruptcy court (the “Bankruptcy Court”). The Bankruptcy Court granted Plaintiffs permission to commence these LBO-related actions, and in 2011, the Judicial Panel on Multidistrict Litigation granted a motion to consolidate the actions for pretrial matters and transferred all such proceedings to the United States District Court for the Southern District of New York (the "SDNY"). Plaintiffs seek recovery of the proceeds received by the former Tribune shareholders on a theory of constructive fraudulent transfer asserting that Tribune purchased or repurchased its common shares without receiving fair consideration at a time when it was, or as a result of the purchases of shares, was rendered, insolvent. OneBeacon has entered into a joint defense agreement with other affiliates of White Mountains that are defendants in the action. OneBeacon and OneBeacon-sponsored benefit plans received approximately $32 million for Tribune common stock tendered in connection with the LBO. The Court granted an omnibus motion to dismiss the Noteholders Action in September 2013 and plaintiffs appealed. On March 29, 2016, a three judge panel of the U.S Second Circuit Court of Appeals affirmed the dismissal of the Noteholders Action. On July 22, 2016, the Plaintiff's petition to the Second Circuit for reconsideration or for a rehearing en banc was denied in full. On September 9, 2016 the Plaintiffs filed for a writ of certiorari, seeking review in the United States Supreme Court. In addition, OneBeacon, OneBeacon-sponsored benefit plans and other affiliates of White Mountains in their capacity as former shareholders of Tribune, along with thousands of former Tribune shareholders, have been named as defendants in an adversary proceeding brought by the Official Committee of Unsecured Creditors of the Tribune Company (the “Committee”), on behalf of the Tribune Company, which seeks to avoid the repurchase of shares by Tribune in the LBO on a theory of intentional fraudulent transfer (the “Committee Action”). Tribune emerged from bankruptcy in 2012, and a litigation trustee replaced the Committee as plaintiff in the Committee Action. This matter was consolidated for pretrial matters with the Noteholder Actions in the SDNY and was stayed pending the motion to dismiss in the Noteholder Action. An omnibus motion to dismiss the shareholder defendants in the Committee Action was filed in May 2014 and the motion was granted on January 6, 2017. The plaintiff has requested permission to move the SDNY to certify the decision as a final judgment capable of immediate appeal. No amount has been accrued in connection with this matter as of December 31, 2016, as the amount of loss, if any, cannot be reasonably estimated. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share Basic and diluted earnings per share amounts are based on the weighted average number of common shares outstanding, including unvested restricted shares that are considered participating securities. Diluted earnings per share amounts are based on the weighted average number of common shares including unvested restricted shares and the net effect of potentially dilutive common shares outstanding. The following table outlines the Company's computation of earnings per share for net income from continuing operations attributable to OneBeacon's common shareholders for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Earnings attributable to OneBeacon's common shareholders—basic and diluted (in millions): Net income from continuing operations attributable to OneBeacon's common shareholders $ 107.4 $ 37.0 $ 53.5 Allocation of income for participating unvested restricted common shares (0.5 ) (0.2 ) (0.4 ) Dividends paid on participating restricted common shares (0.3 ) (0.3 ) (0.5 ) Total allocation to restricted common shares (0.8 ) (0.5 ) (0.9 ) Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts $ 106.6 $ 36.5 $ 52.6 Undistributed (over-distributed) net earnings (in millions): Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts $ 106.6 $ 36.5 $ 52.6 Dividends paid, net of restricted common share amounts (78.9 ) (79.7 ) (79.5 ) Total undistributed (over-distributed) net earnings, net of restricted common share amounts $ 27.7 $ (43.2 ) $ (26.9 ) Earnings per share denominator—basic and diluted (in millions): Total weighted average common shares outstanding 94.4 95.3 95.3 Weighted average unvested restricted common shares (1) (0.4 ) (0.5 ) (0.6 ) Basic and diluted earnings per share denominator 94.0 94.8 94.7 Earnings per share attributable to OneBeacon's common shareholders—basic and diluted (in dollars): Net income from continuing operations attributable to OneBeacon's common shareholders $ 1.13 $ 0.38 $ 0.55 Dividends declared and paid (0.84 ) (0.84 ) (0.84 ) Undistributed (over-distributed) earnings $ 0.29 $ (0.46 ) $ (0.29 ) _______________________________________________________________________________ (1) Restricted shares outstanding vest in equal installments upon a stated date or upon the occurrence of a specified event. Basic and diluted income (loss) per share amounts for discontinued operations are included in Note 18—"Discontinued Operations." |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Runoff Business As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" and Note 2—"Acquisitions and Dispositions," on December 23, 2014, OneBeacon completed the sale of its Runoff Business to Armour and the results of operations for the Runoff Business have been classified as discontinued operations and are presented as such, net of related income taxes, in the statements of operations and comprehensive income and cash flows for all periods. Investing and financing activities for OneBeacon are managed on a consolidated basis reported within the Investing, Financing and Corporate segment. Therefore, no investment or financing activity is included in discontinued operations. The vast majority of the gross and net run-off unpaid loss and LAE reserves were included in the entities that were transferred to Armour. As of December 31, 2016 and 2015, gross loss and LAE reserves of $18.3 million and $20.4 million , respectively, related to the Runoff business were ceded to Bedivere, an indirect wholly-owned subsidiary of Armour, beginning December 23, 2014, by way of a 100% quota share agreement with ASIC. In the fourth quarter of 2014, in conjunction with the Runoff Transaction, OneBeacon provided financing in the form of surplus notes having a par value of $101.0 million , which had a fair value of $64.9 million on the date of sale. The surplus notes, issued by one of the transferred entities, Bedivere (“Issuer”), were in the form of both seller priority and pari passu notes. Under the contractual terms of both the seller priority and pari passu notes, scheduled interest payments accrue at 6% until the scheduled maturity date of March 15, 2020 and at a floating interest rate thereafter, should any principal remain outstanding. As required by the Pennsylvania Insurance Department ("PID"), interest on the notes is not compounding. The notes restrict the Issuer's ability to make distributions to the holders of its equity interest. All such distributions are prohibited while the seller priority note is outstanding, and while the pari passu note is outstanding, distributions are permitted only if the Issuer concurrently repays a pro rata amount of any outstanding principal on the pari passu note. Pursuant to the notes, the Issuer shall seek to redeem the notes annually each March 15 at a requested redemption amount such that the Issuer’s total adjusted capital following the proposed redemption payment would equal 200% of the Issuer’s “authorized control level RBC,” as such term is defined by the insurance laws of the Commonwealth of Pennsylvania and as prescribed by the PID. All redemptions or repayments of principal and payments of interest on the notes are subject to approval by the PID. Results of Discontinued Operations Discontinued Operations Results—Year ended December 31, 2016 There was no gain or loss related to discontinued operations for the year ended December 31, 2016 . Discontinued Operations Results—Year ended December 31, 2015 The loss from discontinued operations, net of tax, of $0.2 million for the year ended December 31, 2015 included $0.5 million of post-closing expenses incurred in connection with the Runoff Business and a $0.3 million gain from sale of discontinued operations representing a positive adjustment to the estimated loss on sale taking into consideration the final settlement of certain post-closing items. Discontinued Operations Results—Year ended December 31, 2014 During the year ended December 31, 2014, the Company reported $20.6 million , or $(0.21) per share, after-tax net loss in discontinued operations related to the Runoff Transaction, which included an $18.8 million after-tax loss from sale of the Runoff Business (further described below) and a $1.8 million after-tax loss from the underwriting results of the Runoff Business. As part of the closing of the Runoff Transaction on December 23, 2014, the $101.0 million par value surplus notes issued had a fair value of $64.9 million at closing based on an internal discounted cash flow model, resulting in a valuation adjustment of $36.1 million , pre-tax, included in loss from sale of discontinued operations. Subsequent to the closing, the surplus notes became part of the Company's investment portfolio, categorized within other investments, and subsequent changes in the value thereon are reflected in continuing operations. See Note 5—"Investment Securities" for further disclosures regarding these surplus notes. Also during 2014, the Company's expectation of the treatment of a $7.4 million reserve charge recorded during the quarter ended June 30, 2013 changed. Previously, the Company had expected that the $7.4 million of assets to support this reserve charge would be transferred to Armour at the closing of the Runoff Transaction. However, OneBeacon and Armour agreed instead to increase the cap on seller financing. As a result, the $7.4 million reserve charge ( $4.8 million after-tax) was recorded as a reduction to the estimated loss on sale of discontinued operations. These changes, along with certain other adjustments, resulted in a net increase in the estimated loss on sale of $28.9 million ( $18.8 million after-tax) for the full year 2014, resulting in a pre-tax loss on sale at closing of $97.9 million ( $63.7 million after-tax) recognized since the Runoff Transaction was announced in October of 2012. Below is a table illustrating the valuation adjustments taken to arrive at estimated fair value of the surplus notes as of December 23, 2014: Type of Surplus Note Total Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) 1.6 (8.4 ) (6.8 ) Regulatory approval (2) (4.6 ) (8.0 ) (12.6 ) Liquidity adjustment (3) (11.0 ) (5.7 ) (16.7 ) Total (14.0 ) (22.1 ) (36.1 ) Fair value $ 43.9 $ 21.0 $ 64.9 _______________________________________________________________________________ (1) Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a 250% RBC score. (2) Represents anticipated delay in securing regulatory approvals of interest and principal payments to reflect graduated changes in Issuer's statutory surplus. The monetary impact of the anticipated delay is measured based on credit spreads of public securities with roughly equivalent percentages of discounted payments missed. (3) Represents impact of liquidity spread to account for OneBeacon's sole ownership of the notes, lack of a trading market, and ongoing regulatory approval risk. |
Consolidating Financial Informa
Consolidating Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidating Financial Information | Consolidating Financial Information The Company has fully and unconditionally guaranteed the 2012 Senior Notes issued by its 100% owned subsidiary, OBH. The following tables present OneBeacon's consolidating balance sheets as of December 31, 2016 and 2015 , and statements of operations and comprehensive income and cash flows for the years ended December 31, 2016 , 2015 and 2014 . These financial statements reflect the Company's ("guarantor") financial position, results of operations and cash flows on a stand-alone basis, that of OBH ("the issuer") and of the Company's other entities ("non-guarantor subsidiaries") as well as the necessary consolidating adjustments to eliminate intercompany balances and transactions. Consolidating Balance Sheet The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated as of December 31, 2016 (in millions) Assets Investment Securities: Fixed maturity investments, at fair value $ — $ 2,169.1 $ — $ — $ 2,169.1 Short-term investments, at amortized cost (which approximates fair value) 2.5 108.1 1.5 — 112.1 Common equity securities, at fair value — 188.7 — — 188.7 Other investments — 150.5 — — 150.5 Total investment securities 2.5 2,616.4 1.5 — 2,620.4 Cash — 69.5 0.1 — 69.6 Reinsurance recoverables — 179.5 — — 179.5 Premiums receivable — 228.3 — — 228.3 Deferred acquisition costs — 96.3 — — 96.3 Ceded unearned premiums — 44.2 — — 44.2 Net deferred tax asset — 126.6 — 0.1 126.7 Investment income accrued — 11.3 — — 11.3 Accounts receivable on unsettled investment sales — 1.4 — — 1.4 Investments in subsidiaries 1,018.8 — 989.4 (2,008.2 ) — Other assets 0.4 211.4 0.4 — 212.2 Total assets $ 1,021.7 $ 3,584.9 $ 991.4 $ (2,008.1 ) $ 3,589.9 Liabilities Unpaid loss and loss adjustment expense reserves $ — $ 1,365.6 $ — $ — $ 1,365.6 Unearned premiums — 575.1 — — 575.1 Funds held under insurance contracts — 153.0 — — 153.0 Debt — — 273.2 — 273.2 Other liabilities 0.4 190.6 6.8 — 197.8 Total liabilities 0.4 2,284.3 280.0 — 2,564.7 OneBeacon's common shareholders' equity and noncontrolling interests Total OneBeacon's common shareholders' equity 1,021.3 1,296.7 711.4 (2,008.1 ) 1,021.3 Noncontrolling interests — 3.9 — — 3.9 Total OneBeacon's common shareholders' equity and noncontrolling interests 1,021.3 1,300.6 711.4 (2,008.1 ) 1,025.2 Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests $ 1,021.7 $ 3,584.9 $ 991.4 $ (2,008.1 ) $ 3,589.9 Consolidating Balance Sheet The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated as of December 31, 2015 (in millions) Assets Investment Securities: Fixed maturity investments, at fair value $ — $ 2,074.6 $ 5.9 $ — $ 2,080.5 Short-term investments, at amortized cost (which approximates fair value) 4.4 64.1 0.7 — 69.2 Common equity securities, at fair value — 298.7 — — 298.7 Other investments — 143.0 — — 143.0 Total investment securities 4.4 2,580.4 6.6 — 2,591.4 Cash — 94.6 0.6 — 95.2 Reinsurance recoverables — 193.5 — — 193.5 Premiums receivable — 219.0 — — 219.0 Deferred acquisition costs — 100.7 — — 100.7 Ceded unearned premiums — 29.5 — — 29.5 Net deferred tax asset — 140.1 — 0.1 140.2 Investment income accrued — 10.1 — — 10.1 Accounts receivable on unsettled investment sales — 30.5 — — 30.5 Investments in subsidiaries 996.9 — 951.3 (1,948.2 ) — Other assets 0.5 190.6 1.4 — 192.5 Total assets $ 1,001.8 $ 3,589.0 $ 959.9 $ (1,948.1 ) $ 3,602.6 Liabilities Unpaid loss and loss adjustment expense reserves $ — $ 1,389.8 $ — $ — $ 1,389.8 Unearned premiums — 560.3 — — 560.3 Funds held under insurance contracts — 137.7 — — 137.7 Debt — — 272.9 — 272.9 Other liabilities 0.9 230.4 6.1 — 237.4 Total liabilities 0.9 2,318.2 279.0 — 2,598.1 OneBeacon's common shareholders' equity and noncontrolling interests Total OneBeacon's common shareholders' equity 1,000.9 1,267.2 680.9 (1,948.1 ) 1,000.9 Noncontrolling interests — 3.6 — — 3.6 Total OneBeacon's common shareholders' equity and noncontrolling interests 1,000.9 1,270.8 680.9 (1,948.1 ) 1,004.5 Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests $ 1,001.8 $ 3,589.0 $ 959.9 $ (1,948.1 ) $ 3,602.6 Consolidating Statement of Operations and Comprehensive Income The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2016 (in millions) Revenues Earned premiums $ — $ 1,100.6 $ — $ — $ 1,100.6 Net investment income — 50.6 — — 50.6 Net realized and change in unrealized investment gains — 37.7 — — 37.7 Net other revenues — 5.5 — — 5.5 Total revenues — 1,194.4 — — 1,194.4 Expenses Loss and loss adjustment expenses — 656.0 — — 656.0 Policy acquisition expenses — 206.0 — — 206.0 Other underwriting expenses — 209.0 — — 209.0 General and administrative expenses 4.5 9.3 0.4 — 14.2 Interest expense — — 13.1 — 13.1 Total expenses 4.5 1,080.3 13.5 — 1,098.3 Pre-tax income (loss) from continuing operations (4.5 ) 114.1 (13.5 ) — 96.1 Income tax benefit — 7.7 4.8 — 12.5 Net income (loss) from continuing operations (4.5 ) 121.8 (8.7 ) — 108.6 Net loss from discontinued operations, net of tax — — — — — Income (loss) before equity in earnings of unconsolidated affiliates (4.5 ) 121.8 (8.7 ) — 108.6 Equity in earnings of subsidiaries, net of tax 111.9 — 59.2 (171.1 ) — Net income including noncontrolling interests 107.4 121.8 50.5 (171.1 ) 108.6 Less: Net income attributable to noncontrolling interests — (1.2 ) — — (1.2 ) Net income attributable to OneBeacon's common shareholders 107.4 120.6 50.5 (171.1 ) 107.4 Net change in benefit plan assets and obligations, net of tax 1.0 — 1.0 (1.0 ) 1.0 Comprehensive income attributable to OneBeacon's common shareholders $ 108.4 $ 120.6 $ 51.5 $ (172.1 ) $ 108.4 Consolidating Statement of Operations and Comprehensive Income (Loss) The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2015 (in millions) Revenues Earned premiums $ — $ 1,176.2 $ — $ — $ 1,176.2 Net investment income — 45.9 — — 45.9 Net realized and change in unrealized investment gains — (35.1 ) — — (35.1 ) Net other revenues (expenses) — (0.6 ) — — (0.6 ) Total revenues — 1,186.4 — — 1,186.4 Expenses Loss and loss adjustment expenses — 700.7 — — 700.7 Policy acquisition expenses — 213.8 — — 213.8 Other underwriting expenses — 218.2 — — 218.2 General and administrative expenses 4.8 10.3 0.3 — 15.4 Interest expense — — 13.0 — 13.0 Total expenses 4.8 1,143.0 13.3 — 1,161.1 Pre-tax income (loss) from continuing operations (4.8 ) 43.4 (13.3 ) — 25.3 Income tax benefit — 8.2 4.7 — 12.9 Net income (loss) from continuing operations (4.8 ) 51.6 (8.6 ) — 38.2 Net loss from discontinued operations, net of tax — (0.2 ) — — (0.2 ) Net income (loss) before equity in earnings of unconsolidated affiliates (4.8 ) 51.4 (8.6 ) — 38.0 Equity in earnings of subsidiaries, net of tax 41.6 — 8.3 (49.9 ) — Net income (loss) including noncontrolling interests 36.8 51.4 (0.3 ) (49.9 ) 38.0 Less: Net income attributable to noncontrolling interests — (1.2 ) — — (1.2 ) Net income (loss) attributable to OneBeacon's common shareholders 36.8 50.2 (0.3 ) (49.9 ) 36.8 Net change in benefit plan assets and obligations, net of tax — — — — — Comprehensive income (loss) attributable to OneBeacon's common shareholders $ 36.8 $ 50.2 $ (0.3 ) $ (49.9 ) $ 36.8 Consolidating Statement of Operations and Comprehensive Income (Loss) The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2014 (in millions) Revenues Earned premiums $ — $ 1,177.1 $ — $ — $ 1,177.1 Net investment income — 44.4 0.1 (1.1 ) 43.4 Net realized and change in unrealized investment gains — 44.6 — (4.2 ) 40.4 Net other revenues (expenses) — 5.8 (3.7 ) 3.7 5.8 Total revenues — 1,271.9 (3.6 ) (1.6 ) 1,266.7 Expenses Loss and loss adjustment expenses — 815.1 — — 815.1 Policy acquisition expenses — 203.3 — — 203.3 Other underwriting expenses — 179.2 — — 179.2 General and administrative expenses 5.1 8.4 0.3 — 13.8 Interest expense — — 14.1 (1.1 ) 13.0 Total expenses 5.1 1,206.0 14.4 (1.1 ) 1,224.4 Pre-tax income (loss) from continuing operations (5.1 ) 65.9 (18.0 ) (0.5 ) 42.3 Income tax benefit — 5.8 6.3 0.2 12.3 Net income (loss) from continuing operations (5.1 ) 71.7 (11.7 ) (0.3 ) 54.6 Net loss from discontinued operations, net of tax — (20.6 ) — — (20.6 ) Income (loss) before equity in earnings of unconsolidated affiliates (5.1 ) 51.1 (11.7 ) (0.3 ) 34.0 Equity in earnings of subsidiaries, net of tax 38.0 — 9.5 (47.5 ) — Net income (loss) including noncontrolling interests 32.9 51.1 (2.2 ) (47.8 ) 34.0 Less: Net income attributable to noncontrolling interests — (1.1 ) — — (1.1 ) Net income (loss) attributable to OneBeacon's common shareholders 32.9 50.0 (2.2 ) (47.8 ) 32.9 Net change in benefit plan assets and obligations, net of tax (12.0 ) — (12.0 ) 12.0 (12.0 ) Comprehensive income (loss) attributable to OneBeacon's common shareholders $ 20.9 $ 50.0 $ (14.2 ) $ (35.8 ) $ 20.9 Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2016 ($ in millions) Cash flows from operations: Net income including noncontrolling interests $ 107.4 $ 121.8 $ 50.5 $ (171.1 ) $ 108.6 Charges (credits) to reconcile net income to cash flows provided from (used for) operations: Undistributed earnings from subsidiaries (111.9 ) — (59.2 ) 171.1 — Net realized and change in unrealized investment gains — (37.7 ) — — (37.7 ) Net adjustment to gain on sale of business — (0.5 ) — — (0.5 ) Deferred income tax expense — 15.4 — — 15.4 Dividends received from subsidiaries 91.0 4.5 4.5 (100.0 ) — Other operating items: Net change in loss and LAE reserves — (24.2 ) — — (24.2 ) Net change in unearned premiums — 14.8 — — 14.8 Net change in ceded unearned premium — (14.7 ) — — (14.7 ) Net change in premiums receivable — (9.3 ) — — (9.3 ) Net change in reinsurance recoverable on paid and unpaid losses — 14.0 — — 14.0 Net change in funds held under insurance contracts. — 15.3 — — 15.3 Net change in other assets and liabilities 2.3 (38.6 ) 1.9 — (34.4 ) Net cash provided from (used for) operations—continuing operations 88.8 60.8 (2.3 ) (100.0 ) 47.3 Net cash used for operations—discontinued operations — — — — — Net cash provided from (used for) operations 88.8 60.8 (2.3 ) (100.0 ) 47.3 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments 1.9 (44.0 ) (0.8 ) — (42.9 ) Maturities of fixed maturity investments — 543.5 — — 543.5 Sales of fixed maturity investments — 771.2 24.2 (42.5 ) 752.9 Sales of common equity securities — 384.9 — — 384.9 Return of capital and distributions of other investments — 11.6 — — 11.6 Purchases of fixed maturity investments — (1,420.1 ) (18.3 ) 42.5 (1,395.9 ) Purchases of common equity securities — (260.0 ) — — (260.0 ) Contributions for other investments — (1.0 ) — — (1.0 ) Net change in unsettled investment purchases and sales — 29.1 — — 29.1 Net acquisitions of property and equipment — (2.7 ) — — (2.7 ) Capital contribution from parent — 27.3 28.5 (55.8 ) — Net cash provided from investing activities—continuing operations 1.9 39.8 33.6 (55.8 ) 19.5 Net cash provided from investing activities—discontinued operations — — — — — Net cash provided from investing activities 1.9 39.8 33.6 (55.8 ) 19.5 Cash flows from financing activities: Cash dividends paid to common shareholders (79.2 ) — — — (79.2 ) Cash dividends paid to parent — (95.5 ) (4.5 ) 100.0 — Capital contribution to subsidiary — (28.5 ) (27.3 ) 55.8 — Repurchases and retirements of common stock (11.5 ) — — — (11.5 ) Payments on capital lease obligation — (1.7 ) — — (1.7 ) Net cash used for financing activities—continuing operations (90.7 ) (125.7 ) (31.8 ) 155.8 (92.4 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (90.7 ) (125.7 ) (31.8 ) 155.8 (92.4 ) Net decrease in cash during period — (25.1 ) (0.5 ) — (25.6 ) Cash balance at beginning of period — 94.6 0.6 — 95.2 Cash balance at end of period $ — $ 69.5 $ 0.1 $ — $ 69.6 Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2015 ($ in millions) Cash flows from operations: Net income (loss) including noncontrolling interests $ 36.8 $ 51.4 $ (0.3 ) $ (49.9 ) $ 38.0 Charges (credits) to reconcile net income to cash flows provided from operations: Undistributed earnings from subsidiaries (41.6 ) — (8.3 ) 49.9 — Net loss from discontinued operations — 0.2 — — 0.2 Net realized and change in unrealized investment gains — 35.1 — — 35.1 Net adjustment to gain on sale of business — 3.7 — — 3.7 Deferred income tax benefit — (5.8 ) — — (5.8 ) Dividends received from subsidiaries 72.0 99.9 110.9 (282.8 ) — Other operating items: Net change in loss and LAE reserves — 47.6 — — 47.6 Net change in unearned premiums — (28.0 ) — — (28.0 ) Net change in ceded unearned premiums — (11.6 ) — — (11.6 ) Net change in premiums receivable — 22.5 — — 22.5 Net change in reinsurance recoverable on paid and unpaid losses — (19.7 ) — — (19.7 ) Net change in funds held under reinsurance contracts — 37.1 — — 37.1 Net change in funds held under insurance contracts — 56.7 — — 56.7 Net change in other assets and liabilities 2.5 13.6 0.5 — 16.6 Net cash provided from operations—continuing operations 69.7 302.7 102.8 (282.8 ) 192.4 Net cash used for operations—discontinued operations — (0.5 ) — — (0.5 ) Net cash provided from operations 69.7 302.2 102.8 (282.8 ) 191.9 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments 14.0 118.5 0.6 — 133.1 Maturities of fixed maturity investments — 262.4 — — 262.4 Sales of fixed maturity investments — 491.5 88.7 183.3 763.5 Sales of common equity securities — 345.6 — — 345.6 Return of capital and distributions of other investments — 40.5 — — 40.5 Purchases of fixed maturity investments — (1,055.3 ) (94.9 ) (183.3 ) (1,333.5 ) Purchases of common equity securities — (323.5 ) — — (323.5 ) Contributions for other investments — (4.2 ) — — (4.2 ) Net change in unsettled investment purchases and sales — (23.8 ) — — (23.8 ) Proceeds from sale of property and equipment — 56.8 — — 56.8 Net acquisitions of property and equipment — (11.5 ) — — (11.5 ) Capital contribution from parent — 2.2 5.5 (7.7 ) — Net cash provided from (used for) investing activities—continuing operations 14.0 (100.8 ) (0.1 ) (7.7 ) (94.6 ) Net cash provided from investing activities—discontinued operations — — — — — Net cash provided from (used for) investing activities 14.0 (100.8 ) (0.1 ) (7.7 ) (94.6 ) Cash flows from financing activities: Cash dividends paid to common shareholders (80.0 ) — — — (80.0 ) Cash dividends paid to parent — (182.9 ) (99.9 ) 282.8 — Capital contribution to subsidiary — (5.5 ) (2.2 ) 7.7 — Repurchases and retirements of common stock (3.7 ) — — — (3.7 ) Payments on capital lease obligation — (5.4 ) — — (5.4 ) Net cash used for financing activities—continuing operations (83.7 ) (193.8 ) (102.1 ) 290.5 (89.1 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (83.7 ) (193.8 ) (102.1 ) 290.5 (89.1 ) Net increase in cash during period — 7.6 0.6 — 8.2 Cash balance at beginning of period — 87.0 — — 87.0 Cash balance at end of period $ — $ 94.6 $ 0.6 $ — $ 95.2 Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2014 ($ in millions) Cash flows from operations: Net income (loss) including noncontrolling interests $ 32.9 $ 51.1 $ (2.2 ) $ (47.8 ) $ 34.0 Charges (credits) to reconcile net income to cash flows provided from operations: Undistributed earnings from subsidiaries (38.0 ) — (9.5 ) 47.5 — Net loss from discontinued operations — 20.6 — — 20.6 Net realized and change in unrealized investment gains — (44.6 ) — 4.2 (40.4 ) Net other realized losses — (3.7 ) 3.7 — — Deferred income tax expense (benefit) — (18.8 ) — (0.2 ) (19.0 ) Dividends received from subsidiaries 90.4 15.0 50.0 (155.4 ) — Other operating items: Net change in loss and LAE reserves — 287.9 — — 287.9 Net change in unearned premiums — 43.4 — — 43.4 Net change in ceded unearned premiums — (3.6 ) — — (3.6 ) Net change in premiums receivable — (13.3 ) — — (13.3 ) Net change in reinsurance recoverable on paid and unpaid losses — (83.9 ) — — (83.9 ) Net change in funds held under reinsurance contracts — (35.3 ) — — (35.3 ) Net change in funds held under insurance contracts — 17.7 — — 17.7 Net change in other assets and liabilities 1.9 (49.6 ) (1.9 ) (6.5 ) (56.1 ) Net cash provided from operations—continuing operations 87.2 182.9 40.1 (158.2 ) 152.0 Net cash used for operations—discontinued operations — (54.5 ) — — (54.5 ) Net cash provided from operations 87.2 128.4 40.1 (158.2 ) 97.5 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments (5.4 ) (62.8 ) 2.7 — (65.5 ) Maturities of fixed maturity investments — 396.4 — — 396.4 Sales of fixed maturity investments — 1,927.9 80.3 (165.1 ) 1,843.1 Sales of common equity securities — 240.2 — — 240.2 Return of capital and distributions of other investments — 53.4 — — 53.4 Purchases of fixed maturity investments — (2,265.1 ) (80.9 ) 139.2 (2,206.8 ) Purchases of common equity securities — (202.4 ) — — (202.4 ) Contributions for other investments — (81.9 ) — — (81.9 ) Net change in unsettled investment purchases and sales — (15.0 ) — — (15.0 ) Net acquisitions of property and equipment — (2.2 ) — — (2.2 ) Capital contribution from parent — 70.0 70.0 (140.0 ) — Net cash (used for) provided from investing activities—continuing operations (5.4 ) 58.5 72.1 (165.9 ) (40.7 ) Net cash provided from investing activities—discontinued operations — — — — — Net cash (used for) provided from investing activities (5.4 ) 58.5 72.1 (165.9 ) (40.7 ) Cash flows from financing activities: Repurchases of debt — — (28.7 ) 28.7 — Cash dividends paid to common shareholders (80.0 ) — — — (80.0 ) Cash dividends paid to parent — (140.4 ) (15.0 ) 155.4 — Capital contribution to subsidiary — (70.0 ) (70.0 ) 140.0 — Repurchases and retirements of common stock (1.8 ) — — — (1.8 ) Payments on capital lease obligation — (5.3 ) — — (5.3 ) Net cash used for financing activities—continuing operations (81.8 ) (215.7 ) (113.7 ) 324.1 (87.1 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (81.8 ) (215.7 ) (113.7 ) 324.1 (87.1 ) Net decrease in cash during period — (28.8 ) (1.5 ) — (30.3 ) Cash transferred with sale of business — (50.8 ) — — (50.8 ) Net decrease after cash transferred with sale of business — (79.6 ) (1.5 ) — (81.1 ) Cash balance at beginning of period — 166.6 1.5 — 168.1 Cash balance at end of period $ — $ 87.0 $ — $ — $ 87.0 |
Selected Quarterly Financial Da
Selected Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data (Unaudited) | Selected Quarterly Financial Data (Unaudited) Selected quarterly financial data for 2016 and 2015 is shown in the following table. The quarterly financial data includes, in the opinion of management, all recurring adjustments necessary for a fair presentation of the results of operations for the interim periods. 2016 Three months ended 2015 Three months ended ($ in millions, except per share amounts) Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Revenues $ 310.5 $ 309.0 $ 307.0 $ 267.9 $ 308.2 $ 314.2 $ 267.8 $ 296.2 Expenses 272.3 286.0 274.1 265.9 280.1 311.3 284.6 285.1 Pre-tax income (loss) from continuing operations 38.2 23.0 32.9 2.0 28.1 2.9 (16.8 ) 11.1 Tax (expense) benefit 8.7 2.0 (4.6 ) 6.4 (3.4 ) 0.9 3.5 11.9 Net income (loss) from continuing operations 46.9 25.0 28.3 8.4 24.7 3.8 (13.3 ) 23.0 Net (loss) gain from discontinued operations, net of tax — — — — (0.1 ) 0.1 (0.1 ) (0.1 ) Net income (loss) including noncontrolling interests 46.9 25.0 28.3 8.4 24.6 3.9 (13.4 ) 22.9 Less: Net income attributable to noncontrolling interests (0.5 ) (0.5 ) — (0.2 ) (0.5 ) (0.5 ) — (0.2 ) Net income (loss) attributable to OneBeacon's common shareholders $ 46.4 $ 24.5 $ 28.3 $ 8.2 $ 24.1 $ 3.4 $ (13.4 ) $ 22.7 Earnings (loss) per share attributable to OneBeacon's common shareholders—basic and diluted: (1) Net income (loss) from continuing operations per share $ 0.49 $ 0.26 $ 0.30 $ 0.09 $ 0.25 $ 0.03 $ (0.14 ) $ 0.24 Net income (loss) attributable to OneBeacon's common shareholders per share $ 0.49 $ 0.26 $ 0.30 $ 0.09 $ 0.25 $ 0.03 $ (0.14 ) $ 0.24 (1) Due to the averaging of shares, quarterly earnings per share may not add to the total for the full year. |
SCHEDULE I SUMMARY OF INVESTMEN
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Investments, Other than Investments in Related Parties [Abstract] | |
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES | SCHEDULE I ONEBEACON INSURANCE GROUP, LTD. SUMMARY OF INVESTMENTS—OTHER THAN INVESTMENTS IN RELATED PARTIES As of December 31, 2016 Amortized Cost Fair Value Carrying Value ($ in millions) Investments: Fixed maturity investments: Bonds: U.S. Government $ 169.6 $ 167.3 $ 167.3 Corporate bonds and asset-backed securities 1,915.4 1,916.2 1,916.2 States, municipalities and political subdivisions 70.1 70.5 70.5 Foreign governments 1.0 1.2 1.2 Preferred stocks 8.3 13.9 13.9 Total fixed maturity investments 2,164.4 2,169.1 2,169.1 Short-term investments 112.1 112.1 112.1 Common equity securities: ETFs 159.6 164.4 164.4 Banks, trust and insurance companies 3.7 3.9 3.9 Industrial, miscellaneous and other 178.6 184.8 184.8 Total common equity securities 182.3 188.7 188.7 Other investments 120.9 150.5 150.5 Total investments $ 2,579.7 $ 2,620.4 $ 2,620.4 |
SCHEDULE II CONDENSED FINANCIAL
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT | SCHEDULE II ONEBEACON INSURANCE GROUP, LTD. (Registrant Only) CONDENSED BALANCE SHEETS December 31, 2016 2015 ($ in millions) Assets: Short-term investments, at amortized cost (which approximates fair value) $ 2.5 $ 4.4 Investments in subsidiaries 1,018.8 996.9 Other assets 0.4 0.5 Total assets $ 1,021.7 $ 1,001.8 Liabilities $ 0.4 $ 0.9 OneBeacon's common shareholders' equity 1,021.3 1,000.9 Total liabilities and OneBeacon's common shareholders' equity $ 1,021.7 $ 1,001.8 CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME Year ended December 31, 2016 2015 2014 ($ in millions) Revenues $ — $ — $ — Expenses 4.5 4.8 5.1 Pre-tax loss from continuing operations (4.5 ) (4.8 ) (5.1 ) Income tax benefit — — — Net loss from continuing operations (4.5 ) (4.8 ) (5.1 ) Equity in earnings from subsidiaries, net of tax 111.9 41.6 38.0 Net income attributable to OneBeacon's common shareholders 107.4 36.8 32.9 Other comprehensive income (loss) items, after tax 1.0 — (12.0 ) Comprehensive income attributable to OneBeacon's common shareholders $ 108.4 $ 36.8 $ 20.9 See Notes to Financial Statements. SCHEDULE II (continued) ONEBEACON INSURANCE GROUP, LTD. (Registrant Only) CONDENSED STATEMENTS OF CASH FLOWS Year ended December 31, 2016 2015 2014 ($ in millions) Net income $ 107.4 $ 36.8 $ 32.9 Charges (credits) to reconcile net income to net cash from operations: Undistributed earnings from subsidiaries (111.9 ) (41.6 ) (38.0 ) Dividends received from subsidiaries 91.0 72.0 90.4 Net change in other assets and liabilities 2.3 2.5 1.9 Net cash provided from operations 88.8 69.7 87.2 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments 1.9 14.0 (5.4 ) Net cash provided from (used for) investing activities 1.9 14.0 (5.4 ) Cash flows from financing activities: Cash dividends paid to common shareholders (79.2 ) (80.0 ) (80.0 ) Repurchases and retirements of common stock (11.5 ) (3.7 ) (1.8 ) Net cash used for financing activities (90.7 ) (83.7 ) (81.8 ) Net change in cash during the year — — — Cash balance at beginning of year — — — Cash balance at end of year $ — $ — $ — ONEBEACON INSURANCE GROUP, LTD. (Registrant Only) NOTES TO CONDENSED FINANCIAL INFORMATION 1. General The financial statements of the Registrant should be read in conjunction with the consolidated financial statements and notes thereto included in Item 8. 2. Long-term Obligations and Guarantees The Company has fully and unconditionally guaranteed the 2012 Senior Notes maturing on November 9, 2022 presented in Note 6—"Debt" that were issued by its 100% owned subsidiary, OBH. 3. Supplemental Cash Flow Information Dividends received from subsidiaries were $91.0 million , $72.0 million and $90.4 million for the years ended December 31, 2016, 2015, and 2014, respectively. |
SCHEDULE III SUPPLEMENTARY INSU
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | 12 Months Ended |
Dec. 31, 2016 | |
Supplementary Insurance Information [Abstract] | |
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION | SCHEDULE III ONEBEACON INSURANCE GROUP, LTD. SUPPLEMENTARY INSURANCE INFORMATION Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Segment Deferred acquisition costs Future policy benefits, losses, claims and loss expenses Unearned premiums Other policy claims and benefits payable Premiums earned Net investment income (1) Benefits, claims, losses, and settlement expenses Amortization of policy acquisition expenses Other operating expenses Premiums written ($ in millions) Years ended: December 31, 2016: Specialty Industries $ 48.0 $ 570.7 $ 255.3 $ — $ 576.2 $ — $ (280.6 ) $ (106.5 ) $ (120.4 ) $ 559.8 Specialty Products 48.3 776.6 319.8 — 524.4 — (375.4 ) (99.5 ) (88.6 ) 540.9 Investing, Financing and Corporate (2) — 18.3 — — — 50.6 — — — — December 31, 2015: Specialty Industries $ 51.1 $ 597.2 $ 272.2 $ — $ 615.9 $ — $ (390.0 ) $ (113.7 ) $ (120.3 ) $ 603.6 Specialty Products 49.6 772.2 288.1 — 560.3 — (310.7 ) (100.1 ) (97.9 ) 533.0 Investing, Financing and Corporate (2) — 20.4 — — — 45.9 — — — — December 31, 2014: Specialty Industries $ 53.5 $ 519.6 $ 284.7 $ — $ 595.0 $ — $ (357.2 ) $ (107.1 ) $ (100.8 ) $ 610.0 Specialty Products 49.7 798.8 303.6 — 582.1 — (457.9 ) (96.2 ) (78.4 ) 606.9 Investing, Financing and Corporate (2) — 23.8 — — — 43.4 — — — — __________________________________________________________ (1) Invested assets are not allocated to Specialty Industries or Specialty Products since OneBeacon does not manage its assets by segment. Net investment income related to OneBeacon's Specialty Industries and Specialty Products segments are included in the Investing, Financing and Corporate segment since these assets are available for payment of losses and expenses for all segments. (2) As described in Note 18—"Discontinued Operations", ASIC is ceding to Bedivere 100% of the legacy Runoff Business that was written on ASIC or one of the ongoing entities. The balance of $18.3 million , $20.4 million and $23.8 million as of December 31, 2016, 2015 and 2014, respectively, is included in both unpaid loss and LAE reserves and reinsurance recoverable included within Investing, Financing, and Corporate. |
SCHEDULE IV REINSURANCE
SCHEDULE IV REINSURANCE | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Schedule of Reinsurance Premiums for Insurance Companies [Abstract] | |
SCHEDULE IV REINSURANCE | SCHEDULE IV ONEBEACON INSURANCE GROUP, LTD. REINSURANCE Column A Column B Column C Column D Column E Column F Premiums earned Gross amount Ceded to other companies Assumed from other companies Net amount Percentage of amount assumed to net ($ in millions) Year ended December 31, 2016 Specialty Products $ 568.0 $ (65.2 ) $ 21.6 $ 524.4 4.1 % Specialty Industries 609.0 (40.6 ) 7.8 576.2 1.4 % Total Insurance Operations $ 1,177.0 $ (105.8 ) $ 29.4 $ 1,100.6 2.7 % Year ended December 31, 2015 Specialty Products $ 647.8 $ (124.7 ) $ 37.2 $ 560.3 6.6 % Specialty Industries 650.2 (43.0 ) 8.7 615.9 1.4 % Total Insurance Operations $ 1,298.0 $ (167.7 ) $ 45.9 $ 1,176.2 3.9 % Year ended December 31, 2014 Specialty Products $ 582.5 $ (62.2 ) $ 61.8 $ 582.1 10.6 % Specialty Industries 626.6 (40.7 ) 9.1 595.0 1.5 % Total Insurance Operations $ 1,209.1 $ (102.9 ) $ 70.9 $ 1,177.1 6.0 % |
SCHEDULE V VALUATION AND QUALIF
SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE V ONEBEACON INSURANCE GROUP, LTD. VALUATION AND QUALIFYING ACCOUNTS Column A Column B Column C Column D Column E Additions (subtractions) Description Balance at beginning of period Charged (credited) to costs and expenses Charged (credited) to other accounts (1) Other additions (deductions) described (2) Balance at end of period ($ in millions) Years ended: December 31, 2016 Reinsurance recoverable on paid and unpaid losses: Allowance for reinsurance balances $ 0.7 $ 0.2 $ — $ — $ 0.9 Premiums receivable: Allowance for uncollectible accounts 2.0 (0.3 ) (0.4 ) — 1.3 December 31, 2015 Reinsurance recoverable on paid and unpaid losses: Allowance for reinsurance balances $ 2.2 $ (0.1 ) $ — $ (1.4 ) $ 0.7 Premiums receivable: Allowance for uncollectible accounts 1.9 0.8 (0.7 ) — 2.0 December 31, 2014 Reinsurance recoverable on paid and unpaid losses: Allowance for reinsurance balances $ 14.3 $ (0.5 ) $ — $ (11.6 ) $ 2.2 Premiums receivable: Allowance for uncollectible accounts 3.1 (0.2 ) (1.0 ) — 1.9 _______________________________________________________________________________ (1) Amount credited to other accounts represents a reduction in the Allowance for uncollectible premiums receivable which was offset by a corresponding reduction in Gross premiums receivable. There was no impact to Premiums receivable as presented in the consolidated balance sheet. (2) Represents net collections (charge offs) of balances receivable. |
SCHEDULE VI SUPPLEMENTAL INFORM
SCHEDULE VI SUPPLEMENTAL INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Abstract] | |
SCHEDULE VI SUPPLEMENTAL INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS | SCHEDULE VI ONEBEACON INSURANCE GROUP, LTD. SUPPLEMENTAL INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS Column A Column B Column C Column D Column E Column F Column G Column H Column I Column J Column K Deferred acquisition costs Reserves for Unpaid Claims and Claims Adjustment Expenses Discount, if any, deducted in Column C (1) Unearned Premiums Earned Premiums Net investment income (2) Claims and Claims Adjustment Expenses Incurred Related to Amortization of deferred policy acquisition costs Paid Claims and Claims Adjustment Expenses Premiums written Affiliation with registrant Current Year Prior Year ($ in millions) Specialty Industries: 2016 $ 48.0 $ 570.7 $ 1.6 $ 255.3 $ 576.2 $ — $ 311.9 $ (31.3 ) $ (106.5 ) $ 307.9 $ 559.8 2015 51.1 597.2 1.1 272.2 615.9 — 368.2 21.8 (113.7 ) 322.7 603.6 2014 53.5 519.6 1.0 284.7 595.0 — 329.2 28.0 (107.1 ) 277.3 610.0 Specialty Products: 2016 $ 48.3 $ 776.6 $ — $ 319.8 $ 524.4 $ — $ 328.7 $ 46.7 $ (99.5 ) $ 359.2 $ 540.9 2015 49.6 772.2 — 288.1 560.3 — 334.3 (23.6 ) (100.1 ) 354.8 533.0 2014 49.7 798.8 — 303.6 582.1 — 396.1 61.8 (96.2 ) 331.3 606.9 Investing, Financing and Corporate: (4) 2016 $ — $ 18.3 (3) $ — $ — $ — $ 50.6 $ — $ — $ — $ — $ — 2015 — 20.4 (3) — — — 45.9 — — — — — 2014 — 23.8 (3) — — — 43.4 — — — — — __________________________________________________________ (1) The amounts shown represent discount on long-term workers compensation loss and LAE reserves, as such liabilities constitute unpaid but settled claims under which the payment pattern and ultimate costs are fixed and determinable on an individual basis. OneBeacon discounts these reserves at the statutory rate ( 2.5% as of December 31, 2016, 2015 and 2014). (2) Invested assets are not allocated to Specialty Industries or Specialty Products since OneBeacon does not manage its assets by segment and these assets are available for payment of losses and expenses for all segments and, as such, the related net investment income is included in the Investing, Financing and Corporate segment. (3) As described in Note 18—"Discontinued Operations", ASIC is ceding to Bedivere 100% of the legacy Runoff Business that was written on ASIC or one of the ongoing entities. The balances of $18.3 million , $20.4 million , and $ 23.8 million as of December 31, 2016, 2015 and 2014, respectively, are included in unpaid loss and loss adjustment expense reserves within Investing, Financing, and Corporate. |
Nature of Operations and Summ33
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Investment Securities | Investment Securities OneBeacon classifies its portfolio of fixed maturity investments, common equity securities, including exchange traded funds ("ETFs"), and other investments held for general investment purposes, as trading securities. Trading securities are reported at fair value as of the balance sheet date as determined by quoted market prices when available. Realized and changes in unrealized investment gains on trading securities are reported, on a pre-tax basis, in revenues as net realized and change in unrealized investment gains. Short-term investments consist of interest-bearing money market funds and other securities which, at the time of purchase, mature or become available for use within one year. Short-term investments are carried at amortized cost, which approximates fair value. Other investments consist primarily of surplus notes, hedge funds and private equity funds. Surplus notes provided in conjunction with the financing of the Runoff Transaction are measured at estimated fair value based on a discounted expected cash flow model, with changes in fair value reported in total revenues as net realized and change in unrealized investment gains. OneBeacon measures its investments in hedge funds and private equity funds at fair value with changes therein reported in total revenues as net realized and change in unrealized investment gains. Other investments also include an investment in a community reinvestment vehicle which is accounted for at fair value, with changes in fair value reported in total revenues as net realized and change in unrealized investment gains, and a tax advantaged federal affordable housing development fund, which is accounted for under the proportional amortization method. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants (an "exit price"). Fair value measurements are categorized into a hierarchy that distinguishes between inputs based on market data from independent sources ("observable inputs") and a reporting entity's internal assumptions based upon the best information available when external market data is limited or unavailable ("unobservable inputs"). Quoted prices in active markets for identical assets or liabilities have the highest priority ("Level 1"), followed by observable inputs other than quoted prices, including prices for similar but not identical assets or liabilities ("Level 2") and unobservable inputs, including the reporting entity's estimates of the assumptions that market participants would use, having the lowest priority ("Level 3"). As of both December 31, 2016 and 2015 , approximately 95% and 92% , respectively, of the investment portfolio recorded at fair value was priced based upon quoted market prices or other observable inputs. Investments valued using Level 1 inputs include fixed maturity investments, primarily investments in U.S. Treasuries, common equity securities and short-term investments, which include U.S. Treasury Bills. Investments valued using Level 2 inputs are comprised primarily of fixed maturity investments, which have been disaggregated into classes, including debt securities issued by corporations, municipal obligations, mortgage and asset-backed securities, foreign government obligations and preferred stocks. Certain ETFs that track U.S. stock indices such as the S&P 500 but are traded on foreign exchanges are also considered Level 2 measurements, as management values such investments using the fund manager's published net asset value ("NAV") to account for the difference in market close times. Fair value estimates for investments that trade infrequently and have few or no observable market prices are classified as Level 3 measurements. Level 3 fair value estimates based upon unobservable inputs include OneBeacon's investments in surplus notes and certain investments in debt and equity securities where quoted market prices are unavailable or are not considered reasonable. OneBeacon determines when transfers between levels have occurred as of the beginning of the period. OneBeacon uses brokers and outside pricing services to assist in determining fair values. For investments in active markets, OneBeacon uses the quoted market prices provided by outside pricing services to determine fair value. The outside pricing services used by OneBeacon have indicated that if no observable inputs are available for the security, they will not provide a price. In such circumstances, where quoted market prices are unavailable or are not considered reasonable, OneBeacon estimates fair value using industry standard pricing methodologies and observable inputs, such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids, offers, credit ratings, prepayment speeds, reference data including research publications and other relevant inputs. Given that many fixed maturity investments do not trade on a daily basis, the outside pricing services used by OneBeacon evaluate a wide range of fixed maturity investments by regularly drawing parallels from recent trades and quotes of comparable securities with similar features. The characteristics used to identify comparable fixed maturity investments vary by asset type and take into account market convention. OneBeacon's process to assess the reasonableness of the market prices obtained from the outside pricing sources covers substantially all of its fixed maturity investments and includes, but is not limited to, the evaluation of pricing methodologies and a review of the pricing services' quality control processes and procedures on at least an annual basis, comparison of our invested asset market prices to prices obtained from different independent pricing vendors on at least a semi-annual basis, monthly analytical reviews of certain prices and a review of the underlying assumptions utilized by our pricing services for selected measurements on an ad hoc basis throughout the year. OneBeacon also performs back-testing of selected sales activity to determine whether there are any significant differences between the market price used to value the security prior to sale and the actual sale price on an ad-hoc basis throughout the year. Prices provided by the pricing services that vary by more than 5% and $1.0 million from the expected price based on these procedures are considered outliers. Also considered outliers are prices that have not changed from period to period and prices that have trended unusually compared to market conditions. In circumstances where the results of OneBeacon's review process do not appear to support the market price provided by the pricing services, OneBeacon challenges the price. During the past year, nine securities fell outside OneBeacon's expected results, thereby triggering a challenge with the pricing service. If OneBeacon cannot gain satisfactory evidence to support the challenged price, it relies upon its own pricing methodologies to estimate the fair value of the security in question. The fair values of such securities are considered Level 3 measurements. OneBeacon's investments in debt securities, including mortgage and asset-backed securities, are generally valued utilizing an evaluated pricing process. Key inputs include benchmark yields, benchmark securities, reported trades, issuer spreads, bids, offers, credit ratings and prepayment speeds. Income on mortgage and asset-backed securities is recognized using an effective yield based on anticipated prepayments and the estimated economic life of the securities. When actual prepayments differ significantly from anticipated prepayments, the estimated economic life is recalculated and the remaining unamortized premium or discount is amortized prospectively over the remaining economic life. OneBeacon's other investments include surplus notes, the fair value of which are estimated using a discounted estimated cash flow method, as described in Note 5—"Investment Securities." Also included in other investments are hedge funds and private equity funds, which are generally carried at fair value based upon OneBeacon's proportionate interest in the underlying fund's NAV, which is deemed to approximate fair value, given that the NAV of the fund reflects the fair value of the fund's underlying investments. OneBeacon employs a number of procedures to assess the reasonableness of the fair value measurements, including obtaining and reviewing each fund's audited financial statements and discussing each fund's pricing with the fund's manager. In circumstances where the underlying investments are publicly traded, such as the investments made by hedge funds, the fair value of the underlying investments is determined using current market prices. In circumstances where the underlying investments are not publicly traded, such as the investments made by private equity funds, the private equity fund managers have considered the need for a liquidity discount on each of the underlying investments when determining the fund's NAV. In circumstances where OneBeacon's portion of a fund's NAV is deemed to differ from fair value due to illiquidity or other factors associated with OneBeacon's investment in the fund, including counterparty credit risk, the NAV is adjusted accordingly. See Note 5—"Investment Securities." |
Cash | Cash Cash includes amounts on hand and demand deposits with banks and other financial institutions. Amounts presented in the statements of cash flows are shown net of balances acquired and sold in the purchase or sale of the Company's consolidated subsidiaries. |
Insurance Operations | Insurance Operations Premiums written are recognized as revenues and are earned ratably over the term of the related policy. Unearned premiums represent the portion of premiums written that are applicable to future insurance coverage provided by policies. Policy acquisition costs represent commissions, premium taxes, brokerage expenses and other costs which are directly attributable to and vary with the production of business. These costs are deferred and amortized to the extent they relate to successful contract acquisitions over the applicable premium recognition period. Policy acquisition costs deferred were $229.0 million , $237.3 million and $237.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, all of which were included in policy acquisition expenses, with the exception of $20.4 million , $21.3 million and $22.9 million for each respective period that were deferred relating to other underwriting expenses. Policy acquisition costs amortized were $232.7 million , $239.7 million and $227.6 million for the years ended December 31, 2016 , 2015 and 2014 , respectively, all of which were included in policy acquisition expenses, with the exception of $20.7 million , $22.2 million and $23.0 million for each respective period that were amortized relating to other underwriting expenses. Deferred acquisition costs are limited to the amount expected to be recovered from future earned premiums and anticipated investment income. This limitation is referred to as a premium deficiency. A premium deficiency is recognized if the sum of expected loss and loss adjustment expenses ("LAE"), unamortized acquisition costs, and maintenance costs exceeds related unearned premiums and anticipated investment income. A premium deficiency is recognized by charging any unamortized acquisition costs to expense to the extent required in order to eliminate the deficiency. If the premium deficiency exceeds unamortized acquisition costs then a liability is accrued for the excess deficiency. There were no premium deficiencies recognized for any years presented. Loss and LAE are charged against income as incurred. Unpaid loss and LAE reserves are based on estimates (generally determined by claims adjusters, legal counsel and actuarial staff) of the ultimate costs of settling claims, including the effects of inflation and other societal and economic factors. Unpaid loss and LAE reserves represent management's best estimate of ultimate loss and LAE, net of reinsurance and estimated salvage and subrogation recoveries, if applicable. Such estimates are regularly reviewed and updated and any resulting adjustments are reflected in the current period. The process of estimating unpaid loss and LAE reserves involves a considerable degree of judgment by management and the ultimate amount of expense to be incurred could be considerably greater than or less than the amounts currently reflected in the financial statements. OneBeacon discounts certain of its long-term workers compensation loss and LAE reserves when such liabilities constitute unpaid but settled claims under which the payment pattern and ultimate costs are fixed and determinable on an individual claim basis. OneBeacon discounts these reserves using the statutory rate ( 2.5% at December 31, 2016 and 2015 ). As of December 31, 2016 and 2015 , the discount on OneBeacon's workers compensation loss and LAE reserves amounted to $1.6 million and $1.1 million , respectively. OneBeacon's insurance subsidiaries enter into reinsurance contracts to protect their businesses from losses due to concentration of risk, to manage their operating leverage ratios and to limit losses arising from catastrophic events. The majority of such reinsurance contracts are executed through excess of loss treaties and catastrophe contracts under which the reinsurer indemnifies for a specified part or all of certain types of losses over stipulated amounts arising from any one occurrence or event. OneBeacon has also entered into quota share treaties with reinsurers under which all risks meeting prescribed criteria are covered on a pro rata basis. The amount of each risk ceded by OneBeacon is subject to maximum limits which vary by line of business and type of coverage. See Note 4—"Reinsurance." Amounts recoverable from reinsurers are estimated in a manner consistent with the claim liability associated with the reinsured policies. The collectibility of reinsurance recoverables is subject to the solvency of the reinsurers. OneBeacon is selective in regard to its reinsurers, principally placing reinsurance with those reinsurers with strong financial condition, reputation, industry ratings and underwriting ability. Management monitors the financial condition and ratings of its reinsurers on an ongoing basis. Reinsurance premiums, commissions, expense reimbursements and reserves related to reinsured business are accounted for on a basis consistent with those used in accounting for the original policies issued and the terms of the reinsurance contracts. Premiums ceded to other companies are reported as a reduction of premiums written. Expense allowances received in connection with reinsurance ceded have been accounted for as a reduction of the related policy acquisition costs and are deferred and amortized accordingly. |
Funds Held | Funds Held Funds held under insurance contracts represent unrestricted collateral held by the Company primarily relating to the Surety business. |
Mandatory Shared Market Mechanisms | Mandatory Shared Market Mechanisms As a condition of its licenses to do business in certain states, OneBeacon's insurance operations are required to participate in various mandatory shared market mechanisms commonly referred to as "residual" or "involuntary" markets. These markets generally consist of risks considered to be undesirable from a standard or routine underwriting perspective. Each state dictates the levels of insurance coverage that are mandatorily assigned to participating insurers within these markets. The total amount of such business an insurer must accept in a particular state is generally based on that insurer's market share of voluntary business written within that state. In certain cases, OneBeacon is obligated to write business from shared market mechanisms at a future date based on its historical market share of all voluntary policies written within that state. Involuntary business generated from mandatory shared market mechanisms may be treated as assumed reinsurance depending on the structure of the mechanism. OneBeacon's market assignments are typically required to be written in the current period, although, in certain cases OneBeacon is required to accept policy assignments at a future date. Anticipated losses associated with future market assignments are recognized when the amount of such anticipated losses is determined to be probable and can be reasonably estimated. |
Insurance Related Assessments | Insurance Related Assessments Under existing guaranty fund laws in all states, insurers licensed to do business in those states can be assessed for certain obligations of insolvent insurance companies to policyholders and claimants. OneBeacon's insurance subsidiaries record guaranty fund assessments when such assessments are billed by the respective guaranty funds. In addition, OneBeacon will monitor other insurance company insolvencies and will accrue a liability when such losses are determined to be probable and the assessment amounts can be reasonably estimated. The actual amount of such assessments will depend upon the final outcome of rehabilitation proceedings and will be paid over several years. |
Capital Lease | Capital Lease In December 2011, the Company entered into lease financing arrangements with US Bancorp Equipment Finance, Inc. ("US Bancorp") and Fifth Third Equipment Finance Company ("Fifth Third") whereby it sold furniture and equipment and capitalized software, respectively, at a cost equal to net book value. The Company then leased the fixed assets back from US Bancorp for a lease term of five years and leased the capitalized software back from Fifth Third for a lease term of four years both of which have now ended. See Note 16—"Commitments and Contingencies." |
Deferred Software Costs | Deferred Software Costs OneBeacon capitalizes costs related to computer software developed for internal use during the application development stage of software development projects. These costs generally consist of certain external, payroll and payroll related costs. OneBeacon begins amortization of these costs once the project or the respective phase of the project is completed and ready for its intended use. Amortization is on a straight line basis over the useful life which generally ranges from three to five years . No impairments were recognized during the year ended December 31, 2016, while the Company recognized a $1.6 million pre-tax impairment of certain capitalized software associated with senior management restructuring during the year ended December 31, 2015. OneBeacon had unamortized deferred software costs of $13.4 million and $12.7 million as of December 31, 2016 and 2015 , respectively. |
Federal and Foreign Income Taxes | Federal and Foreign Income Taxes The majority of the Company's subsidiaries file consolidated tax returns in the United States. Income earned or losses generated by companies outside the United States are generally subject to an overall effective tax rate lower than that imposed by the United States. Deferred tax assets and liabilities are recorded when a difference between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts for tax purposes exists, and for other temporary differences. The deferred tax asset or liability is recorded based on tax rates expected to be in effect when the difference reverses. The deferred tax asset is recognized when it is more likely than not that it will be realized. |
Foreign Currency Exchange | Foreign Currency Exchange The U.S. dollar is the functional currency for all of OneBeacon's businesses. OneBeacon is subject to foreign currency fluctuations associated with foreign investment securities. Assets and liabilities recorded in foreign currencies are translated into U.S. dollars at exchange rates in effect at the balance sheet date, and revenues and expenses are converted using the average exchange rates for the period. Net foreign exchange gains and losses arising from the translation are reported as a component of net income in the period in which they arise. |
Variable Interest Entities | Variable Interest Entities OneBeacon consolidates a reciprocal insurance exchange ("reciprocal") as a variable interest entity ("VIE"), when it has both the power to direct the activities of the VIE that most significantly impact its economic performance and either the obligation to absorb losses or the right to receive benefits from the VIE that could potentially be significant to the VIE. See Note 13—"Variable Interest Entities ("VIE")." |
Defined Benefit Plans | Defined Benefit Plans OneBeacon sponsors defined benefit plans and recognizes the funded status of the difference between plan assets at fair value and the projected benefit obligation (for defined benefit pension plans) or the accumulated benefit obligation (for other postretirement benefit plans) in its statement of financial position. The Company recognizes amounts previously deferred and amortized in other comprehensive income in the period in which they occur and measure plan assets and obligations as of the fiscal year end. The projected benefit obligation of the OneBeacon qualified pension plan ("Qualified Plan") was calculated using termination assumptions as of December 31, 2015 and finalized its termination by purchasing a group annuity contract and making lump sum distributions to plan participants electing such payments during the year ended December 31, 2016, and as a result of these transactions, no longer has a projected benefit obligation with respect to the Qualified Plan. See Note 8—"Retirement Plans." |
Recently Adopted Changes in Accounting Principles | Recently Adopted Changes in Accounting Principles Short Duration Contracts Effective December 31, 2016, OneBeacon adopted ASU 2015-09, Disclosures about Short Duration Contracts (ASC 944) which requires expanded footnote disclosures about loss and LAE reserves. Upon adoption, OneBeacon modified its footnote disclosures to include loss development tables on a disaggregated basis by accident year and a reconciliation of loss development data to the loss and LAE reserves reflected on the balance sheet. The footnote disclosures have also been expanded to include information about claim frequency data, including a description of how the claims frequency data is measured. Prior year disclosures have been modified to conform to the new disclosures. Business Combinations - Measurement Period Adjustments Effective January 1, 2016, OneBeacon adopted ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which requires adjustments to provisional amounts recorded in connection with a business combination that are identified during the measurement period to be recorded in the reporting period in which the adjustment amounts are determined, rather than as retroactive adjustments to prior periods. OneBeacon has not recognized any adjustments to estimated purchase accounting amounts for the year ended December 31, 2016 and accordingly, there was no effect to OneBeacon's financial statements upon adoption. Fair Value Measurements Effective January 1, 2016, OneBeacon adopted ASU 2015-07, Fair Value Measurement - Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent) (ASC 820) which eliminates the requirement to disclose the fair value hierarchy level for investments for which fair value is measured at NAV using the practical expedient in ASC 820. OneBeacon measures the fair value of its investments in hedge funds and private equity funds using this practical expedient. Upon adoption, these fair value measurements are no longer classified within the fair value hierarchy. Prior year amounts have been modified to conform to the current year's disclosures. Amendments to Consolidation Analysis On January 1, 2016, OneBeacon adopted ASU 2015-02, Amendments to the Consolidation Analysis (ASC 810) which amends the guidance for determining whether an entity is a VIE. ASU 2015-02 eliminates the separate consolidation guidance for limited partnerships and with it, the presumption that a general partner should consolidate a limited partnership. In addition, ASU 2015-02 changes the guidance for determining if fee arrangements qualify as variable interests and the effect fee arrangements have on the determination of the primary beneficiary. Adoption of ASU 2015-02 did not affect the consolidation analysis for any of OneBeacon's investments. Share-Based Compensation Awards On January 1, 2016, OneBeacon adopted ASU 2014-12, Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period (ASC 718) . The new guidance requires that a performance target that affects vesting and that can be achieved after the requisite service period be treated as a performance condition. Compensation cost is to be recognized in the period when it becomes probable the performance target will be achieved in an amount equal to the compensation cost attributable to the periods for which service has been rendered. Adoption did not have a significant effect on OneBeacon's financial position, results of operations, cash flows, presentation or disclosures. Debt Issuance Costs Effective January 1, 2016, OneBeacon adopted ASU 2015-03, Imputation of Interest (ASC 835) which requires debt issuance costs to be presented as a deduction from the carrying amount of the related debt, consistent with the treatment required for debt discounts. The new guidance requires amortization of debt issuance costs to be classified within interest expense and also requires disclosure of the debt's effective interest rate. OneBeacon has applied the guidance retrospectively and as a result has reclassified $1.9 million of unamortized debt issuance costs from other assets, reflecting these amounts as a reduction from the related debt and has modified its disclosures to include the required effective interest rate on its debt. As of December 31, 2016, the unamortized debt issuance costs included in debt is $1.6 million . In addition, effective January 1, 2016, OneBeacon adopted ASU 2015-15, Imputation of Interest (ASC 835), which addresses the presentation and subsequent measurement of debt issuance costs related to line-of-credit arrangements. Adoption of ASU 2015-15 did not have a significant effect on OneBeacon's financial position, results of operations, cash flows, presentation or disclosures. Recently Issued Accounting Pronouncements Cash Flow Statement In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows: Classification of Certain Cash Receipts and Cash Payments (ASC 230), which addresses the classification and presentation of certain items, including debt prepayment and extinguishment costs, contingent consideration payments made after a business combination and distributions received from equity method investees, for which there was diversity in practice. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows: Restricted Cash (ASC 230) . Under current guidance, restricted amounts of cash or cash equivalents are excluded from the cash flow statement. The new guidance requires restricted cash and restricted cash equivalents to be included in the reconciliation of beginning and end-of-period amounts presented on the statement of cash flows. In addition, the new guidance requires a description of the nature of the changes in restricted cash and cash equivalents during the periods presented. The updated guidance in ASU 2016-15 and ASU 2016-18 are both effective for interim and annual reporting periods beginning after December 15, 2017, with early adoption permitted. OneBeacon is evaluating the expected impact of this new guidance. Credit Losses In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments (ASC 326), which establishes new guidance for the recognition of credit losses for financial assets measured at amortized cost. The new ASU, which applies to financial assets that have the contractual right to receive cash, including reinsurance receivables, requires reporting entities to estimate the credit losses expected over the life of a credit exposure using historical information, current information and reasonable and supportable forecasts that affect the collectability of the financial asset. ASU 2016-13 is effective for annual periods beginning after January 1, 2020, including interim periods. OneBeacon measures financial assets at fair value with changes therein recognized in current period earnings and accordingly, does not expect adoption to have a significant impact on its financial statements. Stock Compensation In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting (ASC 718) which is intended to simplify certain aspects of the accounting for share-based compensation, including forfeiture assumptions, net settlement of equity awards for withholding taxes and accounting for excess tax benefits. The new guidance provides an accounting policy election to account for forfeitures by either applying an assumption, as required under existing guidance, or by recognizing forfeitures when they actually occur. The new ASU also permits net settlement of equity awards for withholding taxes up to the maximum statutory rate and requires such amounts to be classified as a financing activities in the statement of cash flows. In addition, the new guidance changes the accounting for excess tax benefits and deficiencies by requiring recognition in the income statement, with treatment of the tax effects as discrete items in determining a reporting entity’s effective rate in the period in which exercise or vesting of awards occurs. The new guidance became effective on January 1, 2017 for OneBeacon and did not have a significant effect upon adoption. Leases In February 2016, the FASB issued ASU 2016-02, Leases (ASC 842). The new guidance requires lessees to recognize lease assets and liabilities on the balance sheet for both operating and financing leases, with the exception of leases with an original term of 12 months or less. Under existing guidance recognition of lease assets and liabilities is not required for operating leases. The lease assets and liabilities to be recognized are both measured initially based on the present value of the lease payments. Under the new guidance, a sale-leaseback transaction must meet the recognition criteria under ASC 606, Revenues in order to be accounted for as a sale. The new guidance is effective for OneBeacon for years beginning after December 15, 2018, including interim periods therein. OneBeacon is evaluating the expected impact of this new guidance and available adoption methods. Financial Instruments - Recognition and Measurement In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities (ASC 825-10). The new ASU modifies the guidance for financial instruments, including investments in equity securities. Under the new guidance, all equity securities with readily determinable fair values are required to be measured at fair value with changes therein recognized through current period earnings. In addition, the new ASU requires a qualitative assessment for equity investments without readily determinable fair values to identify an impairment, and for impaired equity security investments to be measured at fair value. ASU 2016-01 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted. OneBeacon measures its portfolio of investment securities at fair value with changes therein recognized through current period earnings and accordingly, does not expect the adoption of ASU 2016-01 to have a significant impact on its financial statements. Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (ASC 606) , which modifies the guidance for revenue recognition. Under ASU 2014-09, revenue is to be recognized at an amount that reflects the consideration to which an entity expects to be entitled in exchange for goods or services transferred to customers. The new guidance sets forth the steps to be followed to recognize revenue: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. Subsequently, the FASB issued additional ASUs clarifying the guidance in and providing implementation guidance for ASU 2014-09. In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers , which delays the effective date of ASU 2014-09 and all related ASUs to annual and interim reporting periods beginning after December 15, 2017. Most of OneBeacon’s revenue from customers relates to insurance contracts, which are excluded from the scope of ASU 2014-09, as are investment income and investments gains and losses. However, the new guidance is applicable to some of OneBeacon’s revenue streams, including certain fee arrangements as well as commissions and other non-insurance revenues. OneBeacon is evaluating the new guidance, but does not expect ASU 2014-09 to have a significant effect on recognition of OneBeacon’s non-insurance revenues from customers. |
Unpaid Loss and Loss Adjustme34
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance Loss Reserves [Abstract] | |
Loss and loss adjustment expense (LAE) reserve activities | The following table summarizes the loss and LAE reserve activities of OneBeacon's insurance subsidiaries for the years ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 2015 2014 ($ in millions) Gross beginning loss and LAE reserves $ 1,389.8 $ 1,342.2 $ 1,054.3 Less beginning reinsurance recoverable on unpaid losses (186.0 ) (161.6 ) (80.2 ) Net beginning loss and LAE reserves 1,203.8 1,180.6 974.1 Loss and LAE incurred from continuing operations relating to: Current year losses 640.6 702.5 725.3 Prior year losses 15.4 (1.8 ) 89.8 Total incurred loss and LAE from continuing operations 656.0 700.7 815.1 Loss and LAE paid from continuing operations relating to: Current year losses (188.0 ) (202.4 ) (199.6 ) Prior year losses (479.1 ) (475.1 ) (409.0 ) Total loss and LAE payments from continuing operations (667.1 ) (677.5 ) (608.6 ) Net loss and LAE reserves 1,192.7 1,203.8 1,180.6 Total incurred loss and LAE from discontinued operations — — (0.7 ) Total loss and LAE payments from discontinued operations — — (55.1 ) Net loss and LAE reserves 1,192.7 1,203.8 1,124.8 Net change in loss and LAE reserves reported in liabilities held for sale — — 188.4 (1) Net loss and LAE reserves sold — — (132.6 ) (2) Net ending loss and LAE reserves 1,192.7 1,203.8 1,180.6 Plus ending reinsurance recoverable on unpaid losses 172.9 186.0 161.6 Gross ending loss and LAE reserves $ 1,365.6 $ 1,389.8 $ 1,342.2 _______________________________________________________________________________ (1) Consists of the change in net loss and LAE reserves of $188.4 million , representing the balances classified as held for sale as December 31, 2013, in connection with the Runoff Transaction. (2) Relates to the Runoff Transaction, which closed on December 23, 2014. |
Loss and LAE Reserve and Net Loss and LAE Development | The components of the 2014 fourth quarter reserve increase and the net loss and LAE development for the full year are provided below: 2014 Fourth Quarter Reserve Increase Full Year 2014 Net Prior Year Development Underwriting Operating Segment Current Accident Year Prior Accident Years Total ($ in millions) Other Professional Lines $ 11.1 $ 31.9 $ 43.0 $ 42.2 Management Liability 6.6 8.4 15.0 16.4 Financial Services 2.0 6.5 8.5 6.5 Healthcare 3.2 (0.4 ) 2.8 (6.0 ) Specialty Property (1.1 ) 5.7 4.6 1.1 Crop 3.8 — 3.8 — Other 2.8 (0.4 ) 2.4 1.6 Specialty Products 28.4 51.7 80.1 61.8 Entertainment 1.5 11.6 13.1 13.5 Government Risks 1.2 7.1 8.3 8.5 Accident — 3.5 3.5 6.0 Other 2.6 1.6 4.2 — Specialty Industries 5.3 23.8 29.1 28.0 Total $ 33.7 $ 75.5 $ 109.2 $ 89.8 |
Reconciliation of liabilities for unpaid claims and claims adjustment expenses | The following table summarizes the ending liabilities for unpaid loss and LAE, net of reinsurance for each of OneBeacon's major lines of business by reportable segment as of December 31, 2016 : Liabilities for unpaid loss and LAE, net of reinsurance As of December 31, 2016 ($ in millions) Specialty Products - Property $ 30.2 Specialty Industries - Property 108.5 Specialty Products - Casualty 568.7 Specialty Industries - Casualty 360.0 Specialty Products - Other 38.2 Specialty Industries - Other 47.4 Total unpaid and undiscounted loss and allocated LAE reserves, net of reinsurance $ 1,153.0 Less: Discount on workers compensation reserves (1.6 ) Total unpaid loss and allocated LAE reserves, net of reinsurance $ 1,151.4 Plus: Unallocated LAE 41.3 Plus: Other items — Total unpaid loss and LAE reserves, net of reinsurance $ 1,192.7 Plus: Reinsurance recoverables on unpaid losses Specialty Products - Property 40.9 Specialty Industries - Property 13.2 Specialty Products - Casualty 64.0 Specialty Industries - Casualty 19.9 Specialty Products - Other 16.0 Specialty Industries - Other 0.6 Investing, Financing and Corporate (1) 18.3 Plus: Total Reinsurance recoverables on unpaid losses 172.9 Total unpaid loss and LAE reserves $ 1,365.6 _______________________________________________________________________________ (1) As described in Note 18—"Discontinued Operations," ASIC has entered into a 100% quota share reinsurance agreement whereby ASIC is ceding to Bedivere 100% of the legacy Runoff Business that was written by ASIC or one of the ongoing entities. As of December 31, 2016, $18.3 million is included in reinsurance recoverables on unpaid losses within Investing, Financing, and Corporate resulting from that agreement. |
Incurred and cumulative paid claims and allocated claim adjustment expenses, net of reinsurance | Specialty Products - Other ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of reported claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 26.8 $ 26.7 $ 26.8 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ — 5,073 2008 31.7 31.5 31.2 31.2 31.2 31.2 31.2 31.2 31.2 — 5,192 2009 33.8 31.4 31.3 30.8 30.9 30.9 30.9 30.9 — 5,138 2010 34.7 34.3 32.5 32.6 32.5 32.5 32.5 — 5,182 2011 33.2 35.5 35.4 35.4 35.4 35.4 — 5,306 2012 36.6 36.9 36.9 36.9 37.0 — 5,324 2013 39.6 40.6 39.2 39.2 — 5,510 2014 96.6 90.8 92.9 — 9,971 2015 75.5 73.2 1.8 10,704 2016 77.1 33.8 4,306 Total $ 478.0 Specialty Products - Other ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 19.8 $ 28.4 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 $ 28.6 2008 21.3 31.1 31.2 31.2 31.2 31.2 31.2 31.2 31.2 2009 21.6 30.8 30.8 30.9 30.9 30.9 30.9 30.9 2010 22.4 32.4 32.5 32.5 32.5 32.5 32.5 2011 25.2 35.2 35.4 35.4 35.4 35.4 2012 26.1 36.8 36.9 36.9 37.0 2013 27.4 39.0 39.2 39.2 2014 46.2 88.5 90.3 2015 41.7 70.6 2016 44.2 Total $ 439.9 All outstanding liabilities before 2007, net of reinsurance 0.1 Liabilities for loss and allocated LAE, net of reinsurance $ 38.2 Specialty Industries - Property ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of reported claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 110.0 $ 104.8 $ 101.3 $ 94.9 $ 95.1 $ 95.3 $ 95.1 $ 95.1 $ 95.1 $ 94.9 $ — 4,828 2008 147.3 137.6 129.6 129.3 132.0 132.7 130.0 129.8 129.7 0.1 6,603 2009 124.5 118.6 118.2 117.9 118.8 118.6 118.7 118.6 0.1 6,718 2010 131.4 131.5 127.2 130.0 129.7 131.4 131.2 — 8,617 2011 138.5 141.5 141.1 143.5 143.2 142.5 0.3 9,704 2012 126.9 123.8 126.7 130.4 130.1 0.8 9,697 2013 125.1 127.0 142.9 143.6 1.9 8,085 2014 123.9 123.5 130.1 3.9 8,352 2015 142.3 138.9 10.2 8,607 2016 120.3 32.8 7,429 Total $ 1,279.9 Specialty Industries - Property ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 42.2 $ 70.9 $ 82.7 $ 87.6 $ 91.7 $ 93.4 $ 94.2 $ 94.5 $ 94.5 $ 94.6 2008 62.5 101.4 116.8 123.4 129.5 129.1 129.2 129.3 129.3 2009 50.4 85.9 105.4 111.0 115.5 117.2 118.0 118.4 2010 69.0 106.2 118.2 122.8 125.9 129.3 130.8 2011 72.5 117.4 130.7 138.0 139.5 141.4 2012 64.2 103.1 116.4 128.5 131.9 2013 59.8 101.5 126.1 137.7 2014 56.5 94.6 111.6 2015 68.6 114.4 2016 61.3 Total $ 1,171.4 All outstanding liabilities before 2007, net of reinsurance — Liabilities for loss and allocated LAE, net of reinsurance $ 108.5 Specialty Industries - Other ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of Reported Claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 4.3 $ 4.6 $ 4.5 $ 4.4 $ 4.4 $ 4.4 $ 4.4 $ 4.4 $ 4.4 $ 4.4 $ — 291 2008 10.4 10.8 12.2 11.9 11.9 11.8 12.1 12.1 12.3 — 975 2009 19.1 19.2 19.0 19.3 20.9 21.4 21.5 21.7 0.2 1,763 2010 25.6 26.6 27.1 27.9 28.2 28.4 28.4 — 2,449 2011 35.1 36.0 37.7 38.5 38.2 38.2 0.2 3,638 2012 42.0 39.6 40.1 41.1 41.6 0.3 3,861 2013 41.1 41.2 42.2 42.5 0.7 4,245 2014 42.6 40.4 40.6 1.9 3,497 2015 46.6 31.9 4.9 3,301 2016 33.2 19.4 2,222 Total $ 294.8 Specialty Industries - Other ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 1.2 $ 4.0 $ 4.3 $ 4.3 $ 4.3 $ 4.3 $ 4.3 $ 4.4 $ 4.4 $ 4.4 2008 3.8 9.0 11.1 11.7 11.8 11.7 12.0 12.0 12.2 2009 6.3 14.6 17.7 18.3 19.2 21.2 21.4 21.4 2010 8.3 22.9 25.1 26.9 27.6 28.0 28.1 2011 13.5 29.4 34.6 36.5 37.2 37.3 2012 13.2 30.7 35.8 38.3 39.1 2013 13.0 29.3 37.2 39.6 2014 12.6 28.9 34.8 2015 9.8 22.2 2016 8.0 Total $ 247.1 All outstanding liabilities before 2007, net of reinsurance (0.3 ) Liabilities for loss and allocated LAE, net of reinsurance $ 47.4 Specialty Industries - Casualty ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of reported claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 24.9 $ 24.3 $ 21.7 $ 34.0 $ 34.9 $ 35.1 $ 35.1 $ 36.0 $ 37.1 $ 36.9 $ 0.3 1,770 2008 26.3 26.2 30.4 26.4 25.8 25.2 23.7 22.2 22.1 0.5 1,835 2009 51.0 51.1 51.5 49.6 54.8 53.6 51.6 51.0 1.0 2,982 2010 80.8 72.4 69.3 69.4 73.3 75.5 77.2 3.5 4,791 2011 88.1 87.5 90.2 100.5 111.8 112.2 3.8 5,254 2012 118.8 103.4 102.0 101.8 98.8 7.9 6,298 2013 121.9 131.5 133.6 138.2 18.0 7,107 2014 135.6 127.4 124.2 35.7 7,633 2015 146.3 127.7 61.8 7,315 2016 129.9 98.4 5,701 Total $ 918.2 Specialty Industries - Casualty ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 2.8 $ 5.5 $ 7.9 $ 13.8 $ 27.9 $ 29.9 $ 32.4 $ 32.9 $ 34.3 $ 35.9 2008 3.2 6.9 11.5 14.2 17.3 19.9 21.2 20.8 20.9 2009 5.1 16.6 25.0 34.5 42.9 46.3 46.3 47.4 2010 8.7 21.1 37.3 51.4 57.5 65.3 68.9 2011 11.1 34.2 53.7 69.8 88.9 96.4 2012 12.9 31.9 50.6 67.8 79.7 2013 18.6 45.5 72.7 96.6 2014 16.6 40.2 61.4 2015 13.6 39.3 2016 11.8 Total $ 558.3 All outstanding liabilities before 2007, net of reinsurance 0.1 Liabilities for loss and allocated LAE, net of reinsurance $ 360.0 Specialty Products - Casualty ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of reported claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 138.3 $ 120.2 $ 97.3 $ 90.7 $ 70.5 $ 70.1 $ 61.8 $ 58.3 $ 57.1 $ 56.5 $ 2.5 1,236 2008 145.6 128.6 118.2 100.8 98.3 95.5 95.3 97.3 96.8 3.3 2,199 2009 169.5 186.2 194.9 193.2 192.0 194.9 195.0 195.5 4.9 4,002 2010 211.5 225.4 226.2 225.0 232.3 234.9 240.0 7.8 6,029 2011 194.9 189.8 205.4 214.2 214.8 214.9 9.4 6,661 2012 213.5 220.1 246.1 248.8 249.4 14.4 6,794 2013 205.2 233.1 229.6 247.9 20.3 5,866 2014 240.5 235.9 258.9 44.4 6,504 2015 206.9 213.4 78.5 9,710 2016 202.8 142.8 9,093 Total $ 1,976.1 Specialty Products - Casualty ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 6.8 $ 24.8 $ 32.4 $ 41.7 $ 44.4 $ 50.7 $ 51.9 $ 53.6 $ 54.0 $ 54.0 2008 8.8 32.3 50.8 65.4 77.6 83.1 85.3 88.1 91.5 2009 26.5 81.8 124.0 147.8 161.4 169.9 178.3 187.8 2010 32.0 107.0 157.8 180.5 196.3 213.6 220.3 2011 25.8 88.9 131.3 163.7 186.2 192.5 2012 25.8 86.7 157.7 193.6 219.8 2013 26.4 86.3 143.1 194.2 2014 34.3 95.2 156.7 2015 19.9 78.4 2016 16.5 Total $ 1,411.7 All outstanding liabilities before 2007, net of reinsurance 4.3 Liabilities for loss and allocated LAE, net of reinsurance $ 568.7 Specialty Products - Property ($ in millions) Incurred Loss and Allocated LAE, Net of Reinsurance As of December 31, 2016 For the Years Ended December 31, Unaudited Total IBNR plus expected development on reported claims Cumulative number of reported claims Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 12.0 $ 11.1 $ 9.1 $ 7.6 $ 7.6 $ 7.7 $ 8.7 $ 8.6 $ 8.6 $ 8.6 $ — 250 2008 31.3 29.2 25.4 25.6 26.6 26.8 26.8 26.8 26.8 — 3,466 2009 55.2 52.1 52.9 53.3 52.9 52.6 52.5 51.6 — 8,768 2010 51.0 49.5 55.6 56.7 55.9 55.8 55.8 — 10,170 2011 58.7 59.8 60.2 60.6 60.8 60.7 0.2 11,121 2012 79.9 86.7 92.9 92.2 92.2 0.2 12,405 2013 36.4 27.6 27.6 27.7 0.3 5,267 2014 37.5 32.1 31.6 0.4 1,227 2015 28.3 25.7 1.1 2,186 2016 24.5 5.2 1,825 Total $ 405.2 Specialty Products - Property ($ in millions) Cumulative Paid Loss and Allocated LAE, Net of Reinsurance For the Years Ended December 31, Unaudited Accident Year 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2007 $ 1.8 $ 3.7 $ 6.8 $ 7.0 $ 7.0 $ 7.0 $ 8.7 $ 8.6 $ 8.6 $ 8.6 2008 15.5 23.5 25.2 25.5 26.0 26.8 26.8 26.8 26.8 2009 41.5 47.3 51.2 51.9 51.9 51.6 51.6 51.6 2010 43.1 47.9 53.3 55.2 55.7 55.7 55.7 2011 51.8 59.0 59.7 60.1 60.4 60.5 2012 58.8 72.5 78.3 79.0 78.8 2013 24.3 26.9 27.1 27.4 2014 19.8 28.2 31.2 2015 15.0 22.1 2016 12.3 Total $ 375.0 All outstanding liabilities before 2007, net of reinsurance — Liabilities for loss and allocated LAE, net of reinsurance $ 30.2 |
Average annual percentage payout of incurred claims by age, net of reinsurance | Specialty Products - Property Average Annual Percentage Payout of Incurred Losses and Allocated LAE by Age, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 70.1 % 14.6 % 5.9 % 1.1 % 0.3 % 0.2 % 0.4 % — % — % — % Specialty Industries - Other Average Annual Percentage Payout of Incurred Losses by Age and Allocated LAE, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 30.4 % 37.0 % 10.8 % 3.3 % 1.1 % 0.9 % 0.2 % — % 0.1 % — % Specialty Products - Casualty Average Annual Percentage Payout of Incurred Losses by Age and Allocated LAE, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 11.3 % 24.0 % 17.8 % 9.6 % 4.7 % 2.2 % 0.9 % 0.7 % 0.2 % — % Specialty Industries - Casualty Average Annual Percentage Payout of Incurred Losses by Age and Allocated LAE, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 11.4 % 16.2 % 12.9 % 9.7 % 6.8 % 2.5 % 0.8 % 0.1 % 0.2 % 0.2 % Specialty Industries - Property Average Annual Percentage Payout of Incurred Losses by Age and Allocated LAE, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 47.4 % 27.3 % 9.9 % 4.1 % 1.8 % 0.7 % 0.2 % 0.1 % — % — % Specialty Products - Other Average Annual Percentage Payout of Incurred Losses by Age and Allocated LAE, Net of Reinsurance Unaudited Years 1 2 3 4 5 6 7 8 9 10 61.9 % 29.5 % 0.6 % — % — % — % — % — % — % — % |
Reinsurance (Tables)
Reinsurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Reinsurance Disclosures [Abstract] | |
Effects of Reinsurance | The effects of reinsurance on OneBeacon's insurance subsidiaries' written and earned premiums and on loss and LAE were as follows: Year ended December 31, 2016 2015 2014 ($ in millions) Written premiums: Direct $ 1,193.3 $ 1,279.9 $ 1,257.5 Assumed 28.0 36.0 65.9 Gross written premiums 1,221.3 1,315.9 1,323.4 Ceded (120.6 ) (179.3 ) (1) (106.5 ) Net written premiums $ 1,100.7 $ 1,136.6 $ 1,216.9 Earned premiums: Direct $ 1,177.0 $ 1,298.0 $ 1,209.1 Assumed 29.4 45.9 70.9 Gross earned premiums 1,206.4 1,343.9 1,280.0 Ceded (105.8 ) (167.7 ) (1) (102.9 ) Net earned premiums $ 1,100.6 $ 1,176.2 $ 1,177.1 Loss and LAE: Direct $ 679.5 $ 783.0 $ 778.7 Assumed 21.2 55.7 115.7 Gross loss and LAE 700.7 838.7 894.4 Ceded (44.7 ) (138.0 ) (1) (79.3 ) Net loss and LAE $ 656.0 $ 700.7 $ 815.1 _______________________________________________________________________________ (1) During the year ended December 31, 2015, the Company recorded ceded written premiums of $33.3 million , ceded earned premiums of $33.3 million and ceded loss and LAE of $33.4 million as a result of the exit of the Crop Business due to the 100% quota share reinsurance agreement with AmTrust. |
Reinsurance Coverage | The following table summarizes the reinsurance coverage currently in effect as of December 31, 2016 : $ in millions Coverage Contract Type Renewal Date First-Dollar Retention Per Risk Limit Purchased Maximum Retention Corporate Property Catastrophe - Property and Inland Marine Excess of Loss 5/1 $ 20.0 $ 110.0 $ 20.0 Property Per Risk - Property and Inland Marine Excess of Loss 5/1 3.0 100.0 3.0 Specialty Property - Excess and Surplus Property Catastrophe Excess of Loss 5/1 6.0 34.0 6.0 Medical Excess - HMO/Provider Excess Excess of Loss 1/1 5.0 Unlimited 5.0 Ocean and Inland Marine Excess of Loss 4/1 2.5 57.5 7.0 Surety Excess of Loss 10/1 5.0 45.0 5.0 Film Completion Bonds Excess of Loss 6/1 2.0 38.0 2.0 Casualty Clash/Workers Compensation Catastrophe Excess of Loss 6/1 6.0 34.0 6.0 Workers Compensation Catastrophe Excess of Loss 6/1 40.0 20.0 6.0 Financial Institutions - Professional Liability Quota Share 6/1 N/A 10.0 5.0 Combined Healthcare/Casualty 2nd Layer - Various lines Excess of Loss 6/1 10.0 / 11.0 10.0 3.0 Casualty Per Policy - Various lines Excess of Loss 6/1 3.0 8.0 3.0 Workers Compensation Per Occurrence Excess of Loss 6/1 2.0 8.0 2.0 Healthcare Professional Liability Excess of Loss 6/1 3.0 7.0 3.0 |
Reinsurer by A.M Best's Rating | The following table summarizes A.M. Best Company, Inc. ("A.M. Best") ratings for OneBeacon's reinsurers for its continuing insurance operations, excluding industry pools and associations, based upon reinsurance recoverable amounts on paid and unpaid losses and LAE: December 31, 2016 % of total A.M Best's Rating (1) : ($ in millions) A+ or better $ 73.9 41 % A- to A 79.7 44 % B, Not Rated and Other 25.9 (2) 15 % Total reinsurance recoverables $ 179.5 100 % _______________________________________________________________________________ (1) A.M Best's ratings as detailed above are "A+ or better" (Superior), "A- to A" (Excellent) and "B" (Fair). (2) Includes reinsurance recoverable on unpaid losses from Bedivere of $18.3 million . |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Schedule of Investments [Abstract] | |
Net investment income, pre-tax | Net investment income for the years ended December 31, 2016 , 2015 , and 2014 consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ 48.7 $ 43.8 $ 41.8 Short-term investments 0.2 — — Common equity securities 3.5 6.1 6.5 Other investments 3.0 1.0 2.1 Gross investment income 55.4 50.9 50.4 Less investment expenses (4.8 ) (5.0 ) (7.0 ) Net investment income, pre-tax $ 50.6 $ 45.9 $ 43.4 |
Net realized investment gains (losses), pre-tax | The composition of net realized investment gains consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ (0.1 ) $ 2.0 $ 6.6 Short-term investments — — — Common equity securities 12.2 33.8 53.9 Other investments (1.8 ) 11.4 9.2 Net realized investment gains, pre-tax 10.3 47.2 69.7 Income taxes (4.1 ) (9.1 ) (21.0 ) Net realized investment gains, after tax $ 6.2 $ 38.1 $ 48.7 |
Net unrealized investment gains (losses) | The net changes in fair value for the years ended December 31, 2016 , 2015 , and 2014 are as follows: Year ended December 31, 2016 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ 2.5 $ — $ 2.5 Short-term investments — — — Common equity securities 2.7 — 2.7 Other investments 22.2 — 22.2 Net change, pre-tax $ 27.4 $ — $ 27.4 Year ended December 31, 2015 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ (15.7 ) $ — $ (15.7 ) Short-term investments — — — Common equity securities (33.2 ) 0.2 (33.0 ) Other investments (33.6 ) — (33.6 ) Net change, pre-tax $ (82.5 ) $ 0.2 $ (82.3 ) Year ended December 31, 2014 Changes in net unrealized investment gains Changes in net foreign currency translation gains (losses) Total net changes in fair value reflected in revenues ($ in millions) Fixed maturity investments $ 1.9 $ — $ 1.9 Short-term investments — (0.1 ) (0.1 ) Common equity securities (32.6 ) (0.3 ) (32.9 ) Other investments 1.8 — 1.8 Net change, pre-tax $ (28.9 ) $ (0.4 ) $ (29.3 ) |
Gross unrealized investment gains or losses | The components of OneBeacon's ending net unrealized investment gains and losses, excluding the impact of net unrealized foreign currency translation gains and losses, on its investment portfolio as of December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Investment securities: ($ in millions) Gross unrealized investment gains $ 52.7 $ 46.5 Gross unrealized investment losses (12.0 ) (33.2 ) Total net unrealized investment gains, pre-tax 40.7 13.3 Income taxes (14.0 ) (6.5 ) Total net unrealized investment gains, after tax $ 26.7 $ 6.8 |
Investment holdings, fixed maturity investments | The cost or amortized cost, gross unrealized pre-tax investment gains and losses, net foreign currency gain and losses and carrying values of OneBeacon's fixed maturity investments as of December 31, 2016 and 2015 were as follows: December 31, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gain (losses) Carrying value ($ in millions) U.S. Government $ 169.6 $ — $ (2.3 ) $ — $ 167.3 Debt securities issued by corporations 760.6 6.2 (3.7 ) — 763.1 Municipal obligations 70.1 0.8 (0.4 ) — 70.5 Mortgage and asset-backed securities 1,154.8 1.8 (3.5 ) — 1,153.1 Foreign government obligations 1.0 0.2 — — 1.2 Preferred stocks 8.3 5.6 — — 13.9 Total fixed maturity investments $ 2,164.4 $ 14.6 $ (9.9 ) $ — $ 2,169.1 December 31, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) U.S. Government $ 85.4 $ — $ (0.1 ) $ — $ 85.3 Debt securities issued by corporations 810.8 4.1 (4.5 ) — 810.4 Municipal obligations 67.7 1.5 (0.2 ) — 69.0 Mortgage and asset-backed securities 1,035.1 1.3 (4.5 ) — 1,031.9 Foreign government obligations 1.0 0.2 — — 1.2 Preferred stocks 78.3 4.4 — — 82.7 Total fixed maturity investments $ 2,078.3 $ 11.5 $ (9.3 ) $ — $ 2,080.5 |
Investments Classified by Contractual Maturity Date | The cost or amortized cost and carrying value of OneBeacon's fixed maturity investments as of December 31, 2016 is presented below by contractual maturity. Actual maturities could differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. December 31, 2016 Cost or amortized cost Carrying value ($ in millions) Due in one year or less $ 91.0 $ 91.4 Due after one year through five years 782.9 784.3 Due after five years through ten years 110.4 109.5 Due after ten years 17.0 16.9 Asset-backed securities 1,154.8 1,153.1 Preferred stocks 8.3 13.9 Total $ 2,164.4 $ 2,169.1 |
Summary of the credit ratings of debt securities issued by corporations | The following table summarizes the ratings of OneBeacon's debt securities issued by corporations as of December 31, 2016 and 2015 : December 31, 2016 2015 ($ in millions) AA (1) $ 63.7 $ 42.7 A (1) 169.1 265.4 BBB (1) 450.8 502.3 BB (1) 70.8 — B (1) 8.7 — Debt securities issued by corporations $ 763.1 $ 810.4 _______________________________________________________________________________ (1) Credit ratings are assigned based on the following hierarchy: 1) Standard and Poor’s and 2) Moody’s Investor Service (“Moody’s”). |
Investment holdings, common equity securities, convertible fixed maturity investments and other investments | The cost or amortized cost, gross unrealized pre-tax investment gains and losses, net foreign currency gains and losses and carrying values of OneBeacon's common equity securities and other investments as of December 31, 2016 and 2015 were as follows: December 31, 2016 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) Common equity securities $ 182.3 $ 6.9 $ (0.5 ) $ — $ 188.7 Other investments 120.9 31.2 (1.6 ) — 150.5 Total common equity securities and other investments $ 303.2 $ 38.1 $ (2.1 ) $ — $ 339.2 December 31, 2015 Cost or amortized cost Gross unrealized gains Gross unrealized losses Net unrealized foreign currency gains (losses) Carrying value ($ in millions) Common equity securities $ 295.0 $ 12.7 $ (9.0 ) $ — $ 298.7 Other investments 135.6 22.3 (14.9 ) — 143.0 Total common equity securities and other investments $ 430.6 $ 35.0 $ (23.9 ) $ — $ 441.7 |
Fair value measurements by level, investment securities | The following tables summarize the changes in OneBeacon’s fair value measurements by level for the year ended December 31, 2016 and 2015 : Level 3 Investments ($ in millions) Level 1 Investments Level 2 Investments Fixed maturity investments Other investments (1) NAV Investments (2) Total (1)(2)(3) Balance at January 1, 2016 $ 363.3 $ 1,945.9 $ 70.0 $ 65.8 62.5 $ 2,507.5 Amortization/accretion — (13.3 ) — — — (13.3 ) Net realized and change in unrealized gains 9.2 8.2 (0.1 ) 20.4 — 37.7 Purchases 496.9 1,111.0 48.0 — 1.0 1,656.9 Sales (536.3 ) (1,075.0 ) (70.0 ) — (11.5 ) (1,692.8 ) Transfers in — 47.9 — — — 47.9 Transfers out — — (47.9 ) — — (47.9 ) Balance at December 31, 2016 $ 333.1 $ 2,024.7 $ — $ 86.2 $ 52.0 $ 2,496.0 _______________________________________________________________________________ (1) Excludes the carrying value of $12.3 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2016 . (2) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. (3) Excludes short-term investments. Level 3 Investments ($ in millions) Level 1 Investments Level 2 Investments Fixed maturity investments Other investments (1) NAV Investments (2) Total (1)(2)(3) Balance at January 1, 2015 $ 358.7 $ 1,692.1 $ 74.0 $ 79.6 102.4 $ 2,306.8 Amortization/accretion — (13.2 ) — — — (13.2 ) Net realized and change in unrealized gains 1.3 (12.7 ) (1.1 ) (13.9 ) (8.7 ) (35.1 ) Purchases 638.0 985.7 34.0 0.7 2.7 1,661.1 Sales (634.7 ) (742.9 ) — (0.6 ) (33.9 ) (1,412.1 ) Transfers in — 36.9 — — — 36.9 Transfers out — — (36.9 ) — — (36.9 ) Balance at December 31, 2015 $ 363.3 $ 1,945.9 $ 70.0 $ 65.8 $ 62.5 $ 2,507.5 _______________________________________________________________________________ (1) Excludes the carrying value of $14.7 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2015. (2) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. (3) Excludes short-term investments. The following tables summarize the Company's fair value measurements for investments as of December 31, 2016 and 2015 by level. The major security types were based on the legal form of the securities. OneBeacon has disaggregated its fixed maturity investments based on the issuing entity type, which impacts credit quality, with debt securities issued by U.S. government entities carrying minimal credit risk, while the credit and other risks associated with other issuers, such as corporations, foreign governments, municipalities or entities issuing asset-backed securities vary depending on the nature of the issuing entity type. OneBeacon further disaggregates debt securities issued by corporations and equity securities by industry sector because investors often reference commonly used benchmarks and their subsectors to monitor risk and performance. Accordingly, OneBeacon has further disaggregated these asset classes into subclasses based on the similar sectors and industry classifications the Company uses to evaluate investment risk and performance against commonly used benchmarks, such as the Bloomberg Barclays U.S. Intermediate Aggregate and S&P 500 indices. Fair value at Level 1 Level 2 Level 3 ($ in millions) Fixed maturity investments: U.S. Government $ 167.3 $ 167.3 $ — $ — Debt securities issued by corporations: Consumer 194.8 — 194.8 — Healthcare 129.2 — 129.2 — Industrial 118.2 — 118.2 — Financial 96.3 — 96.3 — Communications 59.4 — 59.4 — Energy 47.4 — 47.4 — Technology 40.7 — 40.7 — Utilities 39.5 — 39.5 — Basic materials 37.6 — 37.6 — Debt securities issued by corporations 763.1 — 763.1 — Municipal obligations 70.5 — 70.5 — Mortgage and asset-backed securities 1,153.1 — 1,153.1 — Foreign government obligations 1.2 0.6 0.6 — Preferred stocks 13.9 — 13.9 — Fixed maturity investments 2,169.1 167.9 2,001.2 — Short-term investments 112.1 112.1 — — Common equity securities: Exchange Traded Funds (1) 164.4 140.9 23.5 — Healthcare 7.0 7.0 — — Consumer 4.3 4.3 — — Financials 3.9 3.9 — — Technology 3.7 3.7 — — Communications 3.5 3.5 — — Energy 1.2 1.2 — — Industrial 0.7 0.7 — — Common equity securities 188.7 165.2 23.5 — Other investments (2)(3) 86.2 — — 86.2 Total (1)(2)(3) $ 2,556.1 $ 445.2 $ 2,024.7 $ 86.2 _______________________________________________________________________________ (1) ETFs traded on foreign exchanges are priced using the fund’s published NAV to account for the difference in market close times and are therefore designated as level 2 measurements. (2) Excludes the carrying value of $12.3 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2016 . (3) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds with a measured fair value of $52.0 million for which NAV is generally the practical expedient are no longer classified within the fair value hierarchy. Fair value at December 31, 2015 Level 1 Level 2 Level 3 ($ in millions) Fixed maturity investments: U.S. Government $ 85.3 $ 85.3 $ — $ — Debt securities issued by corporations: Consumer 218.3 — 218.3 — Healthcare 136.2 — 136.2 — Industrial 121.8 — 121.8 — Financial 116.0 — 116.0 — Energy 75.2 — 75.2 — Communications 46.0 — 46.0 — Utilities 42.2 — 42.2 — Technology 28.9 — 28.9 — Basic materials 25.8 — 25.8 — Debt securities issued by corporations 810.4 — 810.4 — Municipal obligations 69.0 — 69.0 — Mortgage and asset-backed securities 1,031.9 — 1,031.9 — Foreign government obligations 1.2 0.6 0.6 — Preferred stocks 82.7 — 12.7 70.0 Fixed maturity investments 2,080.5 85.9 1,924.6 70.0 Short-term investments 69.2 69.2 — — Common equity securities: Exchange Traded Funds (1) 183.3 162.0 21.3 — Consumer 38.2 38.2 — — Communications 23.9 23.9 — — Healthcare 19.6 19.6 — — Technology 14.7 14.7 — — Industrial 14.5 14.5 — — Financials 4.5 4.5 — — Common equity securities 298.7 277.4 21.3 — Other investments (2)(3) 65.8 — — 65.8 Total (1)(2)(3) $ 2,514.2 $ 432.5 $ 1,945.9 $ 135.8 _______________________________________________________________________________ (1) ETFs traded on foreign exchanges are priced using the fund's published NAV to account for the difference in market close times and are therefore designated as level 2 measurements. (2) Excludes the carrying value of $14.7 million associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method as of December 31, 2015 . (3) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds with a measured fair value of $62.5 million for which NAV is generally the practical expedient are no longer classified within the fair value hierarchy. |
Net unrealized investment gains and losses for assets designated as level 3 | The following table summarizes the change in net unrealized investment gains and losses for assets designated as Level 3 for the year ended December 31, 2016 , 2015 , and 2014 : Year ended December 31, 2016 2015 2014 ($ in millions) Fixed maturity investments $ — $ (1.1 ) $ 1.1 Other investments (1) 20.4 (14.0 ) 6.3 Total $ 20.4 $ (15.1 ) $ 7.4 _______________________________________________________________________________ (1) As described in Note 1—"Nature of Operations and Summary of Significant Accounting Policies" investments in hedge funds and private equity funds generally measured using the NAV practical expedient are no longer classified within the fair value hierarchy. |
Fair value, significant unobservable inputs | The following summarizes significant unobservable inputs used in estimating the fair value of investment securities other than hedge funds and private equity funds, classified within Level 3 as of December 31, 2016 and 2015 . The fair value of investments in hedge funds and private equity funds, which are classified with Level 3, are generally estimated using the NAV of the funds. ($ in millions) As of December 31, 2016 Description Fair Value Rating (1) Valuation Technique Unobservable Inputs Input Surplus notes: 11.7% - Seller priority note $ 51.1 N/R Discounted cash flow Discount rate (2) 9.6% Timing of interest payments (3) 2020 Timing of principal payments (3) 2030 - Pari passu note $ 20.8 N/R Discounted cash flow Discount rate (4) 15.0% Timing of interest payments (5) 2021 Timing of principal payments (5) 2035 Community reinvestment vehicle $ 14.3 N/R Member share of GAAP net equity GAAP net equity $ 14.3 ($ in millions) As of December 31, 2015 Description Fair Value Rating (1) Valuation Technique Unobservable Inputs Input Preferred stock $ 70.0 N/R Par value (6) Issuer's intent to call $ 70.0 Surplus notes: 16.1% - Seller priority note $ 38.0 N/R Discounted cash flow Discount rate (2) 13.0% Timing of interest payments (3) 2020 Timing of principal payments (3) 2025 - Pari passu note $ 13.5 N/R Discounted cash flow Discount rate (4) 22.4% Timing of interest payments (5) 2020 Timing of principal payments (5) 2030 Community reinvestment vehicle $ 14.3 N/R Member share of GAAP net equity GAAP net equity $ 14.3 _________________________________________________________________________ (1) Credit ratings, if rated, are assigned based on the following hierarchy: 1) Standard & Poor's and 2) Moody's (2) Stochastic modeling supporting the fair value estimation indicates that the average percentage of discounted payments missed on the seller priority note is roughly equivalent to that of a conventional debt security with a credit rating of ‘B’. The corresponding credit spread, increased by an additional 250 bps to reflect both a liquidity discount for a private debt instrument and regulatory payment approval uncertainty, was added to the treasury rate to determine the discount rate for the seller priority note. (3) As of December 31, 2016, the Company has assumed for the purpose of estimating fair value that all accrued but unpaid interest on the seller priority note since the date of issuance is paid in 2020, with regular annual interest payments beginning thereafter. Principal repayments are assumed to begin on a graduated basis in 2030. As of December 31, 2015, the company assumed for the purpose of estimating fair value that all accrued but unpaid interest on the seller priority note since the date of issuance was paid in 2020, with regular annual payments beginning thereafter. Principal repayments were assumed to begin on a graduated basis in 2025. (4) Stochastic modeling supporting the fair value estimation indicates that the average percentage of discounted payments missed on the pari passu note is roughly equivalent to that of a conventional debt security with a credit rating of ‘CCC’. The corresponding credit spread, increased by an additional 250 bps to reflect both a liquidity discount for a private debt instrument and regulatory payment approval uncertainty, was added to the treasury rate to determine the discount rate for the seller priority note. (5) As of December 31, 2016, the company has assumed for the purpose of estimating fair value that regular annual interest payments on the pari passu note begin in 2021. All accrued but unpaid interest since the date of issuance is assumed to be paid in 2025. Principal repayments are assumed to begin on a graduated basis in 2035. As of December 31, 2015, the company assumed for the purpose of estimating fair value that all accrued but unpaid interest on the pari passu note since the date of issuance was paid in 2020, with regular annual payments beginning thereafter. Principal repayments were assumed to begin on a graduated basis in 2030. (6) Valuation based on issuer's intent as of December 31, 2015 to call the security in the near term. |
Mortgage-backed and asset-backed securities | The following table summarizes the carrying value of OneBeacon's asset-backed securities as of December 31, 2016 and 2015 : December 31, 2016 2015 Fair Value Level 2 Level 3 Fair Value Level 2 Level 3 ($ in millions) Mortgage-backed securities: Agency: GNMA $ 213.5 $ 213.5 $ — $ 220.5 $ 220.5 $ — FNMA 42.8 42.8 — 1.4 1.4 — FHLMC 30.3 30.3 — 3.1 3.1 — Total agency (1) 286.6 286.6 — 225.0 225.0 — Non-agency: Residential (RMBS) 135.0 135.0 — 132.7 132.7 — Commercial (CMBS) 123.6 123.6 — 140.4 140.4 — Total non-agency 258.6 258.6 — 273.1 273.1 — Total mortgage-backed securities 545.2 545.2 — 498.1 498.1 — Other asset-backed securities: Vehicle receivables 273.6 273.6 — 255.6 255.6 — Credit card receivables 224.3 224.3 — 202.7 202.7 — Other 110.0 110.0 — 75.5 75.5 — Total other asset-backed securities 607.9 607.9 — 533.8 533.8 — Total mortgage and asset-backed securities $ 1,153.1 $ 1,153.1 $ — $ 1,031.9 $ 1,031.9 $ — _______________________________________________________________________________ (1) Represents publicly traded mortgage-backed securities which carry the full faith and credit guaranty of the U.S. government (i.e., GNMA) or are guaranteed by a government sponsored entity (i.e., FNMA, FHLMC). |
Schedule of security issuance years of investments in non-agency RMBS and non-agency CMBS securities | The security issuance years of OneBeacon's investments in non-agency RMBS and non-agency CMBS securities as of December 31, 2016 are as follows: Fair Value Security Issuance Year 2004 2005 2006 2008 2010 2011 2012 2013 2014 2015 2016 ($ in millions) Total non-agency RMBS $ 135.0 $ 19.1 $ 5.7 $ 3.0 $ 2.7 $ 7.4 $ 9.9 $ 5.0 $ 13.9 $ 30.5 $ 5.0 $ 32.8 Total non-agency CMBS 123.6 — — — — 4.3 — 18.1 11.5 23.4 44.4 21.9 Total non-agency $ 258.6 $ 19.1 $ 5.7 $ 3.0 $ 2.7 $ 11.7 $ 9.9 $ 23.1 $ 25.4 $ 53.9 $ 49.4 $ 54.7 |
Non-agency RMBS, collateral quality and tranche levels | The classification of the underlying collateral quality and the tranche levels of OneBeacon's non-agency RMBS securities are as follows as of December 31, 2016 : Fair Value Super Senior (1) Senior (2) Subordinate (3) ($ in millions) Prime $ 135.0 $ 82.1 $ 52.9 $ — Non-prime — — — — Total non-agency RMBS $ 135.0 $ 82.1 $ 52.9 $ — _______________________________________________________________________________ (1) At issuance, Super Senior, or in the case of resecuritization, the underlying securities, were rated AAA by Standard & Poor's, Aaa by Moody's, or AAA by Fitch Ratings ("Fitch") and were senior to other AAA or Aaa securities. (2) At issuance, Senior, or in the case of resecuritization, the underlying securities, were rated AAA by Standard & Poor's, Aaa by Moody's, or AAA by Fitch and were senior to non-AAA or non-Aaa securities. (3) At issuance, Subordinate were not rated AAA by Standard & Poor's, Aaa by Moody's, or AAA by Fitch and were junior to other securities. |
Non-agency CMBS, type of interest rate and tranche levels | The amount of fixed and floating rate securities and their tranche levels are as follows as of December 31, 2016 : Fair Value Super Senior (1) Senior (2) Subordinate (3) ($ in millions) Fixed rate CMBS $ 112.1 $ 8.7 $ 56.9 $ 46.5 Floating rate CMBS 11.5 — — 11.5 Total non-agency CMBS $ 123.6 $ 8.7 $ 56.9 $ 58.0 _______________________________________________________________________________ (1) At issuance, Super Senior, or in the case of resecuritization, the underlying securities, were rated AAA by Standard & Poor's, Aaa by Moody's or AAA by Fitch and were senior to other AAA or Aaa securities. (2) At issuance, Senior, or in the case of resecuritization, the underlying securities, were rated AAA by Standard & Poor's, Aaa by Moody's, or AAA by Fitch and were senior to non-AAA or non-Aaa securities. (3) At issuance, Subordinate were not rated AAA by Standard & Poor's, Aaa by Moody's, or AAA by Fitch and were junior to other securities. |
Other investments reported at fair value | As of December 31, 2016 and 2015 , other investments reported at fair value represented approximately 6% and 5% , respectively, of the total investment portfolio and consisted of the following: ($ in millions) December 31, December 31, Hedge funds (1) $ 18.4 $ 16.4 Private equity funds (2) 33.6 46.1 Total hedge funds and private equity funds 52.0 62.5 Surplus notes (par value $101.0) (3) 71.9 51.5 Investment in community reinvestment vehicle 14.3 14.3 Total other investments (4) $ 138.2 $ 128.3 _______________________________________________________________________________ (1) Consists of 4 hedge funds as of both December 31, 2016 and 2015 . (2) Consists of 17 private equity funds as of both December 31, 2016 and 2015 . (3) The increase in the fair value of the surplus notes during the year ended December 31, 2016 was driven primarily by the narrowing of non-investment grade credit spreads, partially offset by the impact of a change in estimates and assumptions regarding the timing of regulatory approval of principal and interest payments on the notes. (4) Excludes the carrying value of $12.3 million and $14.7 million as of December 31, 2016 and 2015 , respectively, associated with a tax advantaged federal affordable housing development fund accounted for using the proportional amortization method. |
Surplus Note Valuation | Below is a table illustrating the valuation adjustments taken to arrive at estimated fair value of the surplus notes as of December 31, 2016 and 2015 : Type of Surplus Note Total as of December 31, 2016 Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) 6.2 (1.1 ) 5.1 Regulatory approval (2) (0.2 ) (15.4 ) (15.6 ) Liquidity adjustment (3) (12.8 ) (5.8 ) (18.6 ) Total (6.8 ) (22.3 ) (29.1 ) Fair value (4) $ 51.1 $ 20.8 $ 71.9 Type of Surplus Note Total as of December 31, 2015 Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) (0.4 ) (14.7 ) (15.1 ) Regulatory approval (2) (11.7 ) (12.5 ) (24.2 ) Liquidity adjustment (3) (7.8 ) (2.4 ) (10.2 ) Total (19.9 ) (29.6 ) (49.5 ) Fair value $ 38.0 $ 13.5 $ 51.5 _______________________________________________________________________________ (1) Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a 250% RBC score under the National Association of Insurance Commissioners’ risk-based capital standards for property and casualty companies. Below is a table illustrating the valuation adjustments taken to arrive at estimated fair value of the surplus notes as of December 23, 2014: Type of Surplus Note Total Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) 1.6 (8.4 ) (6.8 ) Regulatory approval (2) (4.6 ) (8.0 ) (12.6 ) Liquidity adjustment (3) (11.0 ) (5.7 ) (16.7 ) Total (14.0 ) (22.1 ) (36.1 ) Fair value $ 43.9 $ 21.0 $ 64.9 _______________________________________________________________________________ (1) Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a 250% RBC score. (2) Represents anticipated delay in securing regulatory approvals of interest and principal payments to reflect graduated changes in Issuer's statutory surplus. The monetary impact of the anticipated delay is measured based on credit spreads of public securities with roughly equivalent percentages of discounted payments missed. (3) Represents impact of liquidity spread to account for OneBeacon's sole ownership of the notes, lack of a trading market, and ongoing regulatory approval risk. |
Other investments | The following table summarizes investments in hedge funds and private equity funds as of December 31, 2016 and 2015 : December 31, 2016 2015 Fair Value Unfunded Commitments Fair Value Unfunded Commitments ($ in millions) Hedge funds Long/short equity banks and financial $ 15.0 $ — $ 12.8 $ — Other 3.4 — 3.6 — Total hedge funds 18.4 — 16.4 — Private equity funds Energy infrastructure and services 14.1 3.2 20.7 3.4 Multi-sector 11.5 2.0 14.8 2.1 Healthcare 3.5 0.4 3.8 0.4 Private equity secondaries 3.0 2.1 4.4 2.1 Insurance 0.8 0.1 2.0 0.1 Direct lending / mezzanine debt 0.4 7.1 — — Real estate 0.3 0.1 0.4 0.1 Total private equity funds 33.6 15.0 46.1 8.2 Total hedge funds and private equity funds $ 52.0 $ 15.0 $ 62.5 $ 8.2 |
Fair value of hedge funds subject to restrictions on redemption frequency and advance notice period requirements for investments in active hedge funds | The following summarizes the December 31, 2016 fair value of hedge funds subject to restrictions on redemption frequency and advance notice period requirements: Hedge Fund Notice Period 30 - 59 days notice 60 - 89 days notice 90 - 119 days notice 120+ days notice Total ($ in millions) Redemption frequency Monthly $ — $ — $ — $ — $ — Quarterly 16.0 — — — 16.0 Annual — — 2.4 — 2.4 Total hedge funds $ 16.0 $ — $ 2.4 $ — $ 18.4 |
Fair Value of private equity funds subject to lock-up periods | As of December 31, 2016 , investments in private equity funds were subject to lock-up periods as follows: 1 - 3 years 3 - 5 years 5 - 10 years >10 years Total ($ in millions) Private Equity Funds—expected lock-up period remaining $ 14.8 $ 3.5 $ 14.9 $ 0.4 $ 33.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt outstanding | OneBeacon's debt outstanding as of December 31, 2016 and 2015 consisted of the following: December 31, 2016 2015 ($ in millions) Senior unsecured notes, at face value $ 275.0 $ 275.0 Unamortized original issue discount (0.2 ) (0.2 ) Unamortized issuance costs (1) (1.6 ) (1.9 ) Senior unsecured notes, carrying value $ 273.2 $ 272.9 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The total income tax expense from continuing operations for the years ended December 31, 2016 , 2015 and 2014 consisted of the following: Year ended December 31, 2016 2015 2014 ($ in millions) Current tax (expense) benefit: Federal $ 29.3 $ 9.1 $ (4.3 ) State (1.0 ) (1.2 ) (1.6 ) Non-U.S. (0.4 ) (0.8 ) (0.8 ) Total current tax (expense) benefit 27.9 7.1 (6.7 ) Deferred tax (expense) benefit: Federal (15.4 ) 5.8 19.0 State — — — Non-U.S. — — — Total deferred tax (expense) benefit (15.4 ) 5.8 19.0 Total income tax benefit $ 12.5 $ 12.9 $ 12.3 |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation of taxes calculated using the 35% U.S. statutory rate (the tax rate at which the majority of OneBeacon's worldwide operations are taxed) to the income tax expense on pre-tax income from continuing operations follows: Year ended December 31, 2016 2015 2014 ($ in millions) Tax expense at the U.S. statutory rate $ (33.6 ) $ (8.9 ) $ (14.8 ) Differences in taxes resulting from: Non-U.S. earnings, net of foreign taxes 24.7 19.3 19.6 Tax reserve adjustments and IRS exam settlements 16.2 (1.7 ) 4.1 Tax exempt interest and dividends 2.3 2.6 2.5 Change in valuation allowance (0.1 ) 0.5 (0.2 ) Other, net 3.0 1.1 1.1 Total income tax benefit on pre-tax income from continuing operations $ 12.5 $ 12.9 $ 12.3 |
Schedule of Deferred Tax Assets and Liabilities | An outline of the significant components of OneBeacon's deferred tax assets and liabilities follows: December 31, 2016 2015 ($ in millions) Deferred income tax assets related to: U.S. net operating loss carryforwards $ 74.5 $ 63.7 Unearned premiums 37.5 37.2 Tax credit carryforwards 19.2 16.9 Discounting of loss and LAE reserves 18.0 26.7 Compensation and bonus accruals 16.0 15.3 Sale of Runoff Business 12.6 12.6 Deferred compensation plans 5.5 6.0 Fixed assets 3.1 4.2 Allowance for doubtful accounts 0.5 0.7 Non-U.S. net operating loss carryforwards 0.4 0.4 Other accrued compensation 0.1 0.1 Accrued rent — 3.9 Investment basis differences — 3.2 Other items 1.3 0.2 Total gross deferred income tax assets 188.7 191.1 Less valuation allowance (1.4 ) (1.3 ) Total net deferred income tax assets 187.3 189.8 Deferred income tax liabilities related to: Deferred acquisition costs 33.7 35.2 Net unrealized investment gains 14.0 6.5 Prepaid pension 6.3 3.5 Capitalized software 4.7 4.4 Investment basis differences 1.7 — Other items 0.2 — Total gross deferred income tax liabilities 60.6 49.6 Net deferred tax asset $ 126.7 $ 140.2 |
Summary of Operating Loss Carryforwards | NOL carryforwards as of December 31, 2016 and the expiration dates are as follows: December 31, 2016 United States Luxembourg Total ($ in millions) NOL carryforwards by year: 2017 $ — $ — $ — From years 2018 to 2025 2.0 — 2.0 From years 2026 to 2036 225.6 — 225.6 No expiration date — 1.5 1.5 Total NOL carryforwards $ 227.6 $ 1.5 $ 229.1 December 31, 2016 United States Luxembourg Total ($ in millions) Gross deferred tax asset for NOL carryforwards $ 74.5 $ 0.4 $ 74.9 Valuation allowance for NOL carryforwards (0.6 ) (0.4 ) (1.0 ) Net deferred tax asset for NOL carryforwards $ 73.9 $ — $ 73.9 |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: Permanent differences (1) Temporary differences (2) Interest and penalties (3) Total ($ in millions) January 1, 2014 $ 7.6 $ 16.6 $ 8.4 $ 32.6 Changes in prior year tax positions (2.2 ) (0.8 ) (1.9 ) (4.9 ) Tax positions taken during the current year — 7.3 — 7.3 Lapse in statute of limitations — — — — Settlements with tax authorities — — — — December 31, 2014 $ 5.4 $ 23.1 $ 6.5 $ 35.0 Changes in prior year tax positions — (12.4 ) 1.7 (10.7 ) Tax positions taken during the current year — — — — Lapse in statute of limitations — — — — Settlements with tax authorities — — — — December 31, 2015 $ 5.4 $ 10.7 $ 8.2 $ 24.3 Changes in prior year tax positions — (5.5 ) 0.1 (5.4 ) Tax positions taken during the current year — — — — Lapse in statute of limitations — — — — Settlements with tax authorities (5.4 ) — (8.3 ) (13.7 ) December 31, 2016 $ — $ 5.2 $ — $ 5.2 _______________________________________________________________________________ (1) Represents the amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate. (2) Represents the amount of unrecognized tax benefits that, if recognized, would create a temporary difference between the reported amount of an item in OneBeacon's Consolidated Balance Sheet and its tax basis. (3) Net of tax benefit. |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Funded Status | The following tables set forth the obligations and funded status, assumptions, plan assets and cash flows associated with the Non-qualified and Qualified Plan as of December 31, 2016 and 2015 : December 31, 2016 2015 ($ in millions) Change in projected benefit obligation: Projected benefit obligation at beginning of year $ 109.5 $ 119.7 Service cost 0.2 0.9 Interest cost 1.5 4.6 Settlement loss (gain) on projected benefit obligation (1)(2) 1.2 (1.8 ) Assumption changes (0.9 ) (3.5 ) Actuarial loss 0.4 0.9 Annuity contract purchases related to termination of Qualified Plan (3) (69.0 ) — Benefits, including lump sum payments, and expenses paid with plan assets (3) (17.0 ) (13.7 ) Benefits paid directly by OneBeacon (2.1 ) (2.2 ) Remeasurement due to plan termination (4) — 4.6 Projected benefit obligation at end of year $ 23.8 $ 109.5 Change in plan assets: Fair value of plan assets at beginning of year $ 139.8 $ 146.0 Actual return on plan assets 6.3 7.5 Annuity contract purchases related to termination of Qualified Plan (3) (69.0 ) — Transfer of assets to the QRP (5) (47.1 ) — Benefits, including lump sum payments, and expenses paid with plan assets (3) (17.0 ) (13.7 ) Fair value of plan assets at end of year $ 13.0 $ 139.8 (Unfunded) over funded status at end of year $ (10.8 ) $ 30.3 ___________________________________________________________________________ (1) During the year ended December 31, 2016, OneBeacon recognized a $1.2 million settlement loss primarily resulting from final settlement of the Qualified Plan. (2) During the fourth quarter of 2015, OneBeacon triggered settlement accounting for the Qualified Plan as the total lump sum payments exceeded the service plus interest costs, resulting in a $1.8 million adverse effect on accumulated other comprehensive income. (3) During the year ended December 31, 2016, the Qualified Plan finalized its termination by purchasing group annuity contracts for $69.0 million from Principal and making lump sum distributions, included in the $17.0 million above, to Qualified Plan participants electing such payments. (4) As of December 31, 2015, the projected benefit obligation was valued on a plan termination basis. (5) During the year ended December 31, 2016, OneBeacon transferred excess invested assets from the Qualified Plan after its termination into the trust supporting the QRP. |
Schedule of Amounts Recognized in Balance Sheet | Amounts recognized in the financial statements as of December 31, 2016 and 2015 consist of: December 31, 2016 2015 ($ in millions) Net balance sheet asset recorded in other assets $ 13.0 $ 55.8 Net balance sheet liability recorded in other liabilities (23.8 ) (25.5 ) Net amount recognized in the financial statements $ (10.8 ) $ 30.3 |
Schedule of Accumulated Benefit Obligations in Excess of Fair Value of Plan Assets | Information for the Non-qualified Plan, which had accumulated benefit obligations in excess of plan assets, was as follows: December 31, 2016 2015 ($ in millions) Projected benefit obligation $ 23.8 $ 25.5 Accumulated benefit obligation $ 23.8 $ 25.5 Fair value of plan assets $ — $ — Information for the Qualified Plan, which had accumulated benefit obligations less than plan assets until its termination, was finalized during the year ended December 31, 2016 , was as follows: December 31, 2016 2015 ($ in millions) Projected benefit obligation $ — $ 84.0 (1) Accumulated benefit obligation $ — $ 84.0 (1) Fair value of plan net assets $ 13.0 $ 139.8 ___________________________________________________________________________ (1) Measured on a plan termination basis |
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | The amounts recognized in accumulated other comprehensive loss on a pre-tax basis for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 2015 ($ in millions) Accumulated other comprehensive loss at beginning of year $ (8.0 ) $ (8.0 ) Increase (decrease) in accumulated other comprehensive loss: Amortization of net actuarial gains recognized during the year 1.3 1.3 Net actuarial gains (losses) occurring during the year (1) 3.2 (1.3 ) Qualified Plan termination impact (2) (3.0 ) — Accumulated other comprehensive loss at end of year $ (6.5 ) $ (8.0 ) _______________________________________________________________________________ (1) Net actuarial gains in 2016 resulted from changes in assumptions in estimating the projected benefit obligation as well as changes in investment returns and demographic experience different than those assumed. The 2015 net actuarial losses reflect the valuation of the Qualified Plan on a termination basis. (2) During the year ended December 31, 2016, OneBeacon recognized a $3.0 million gain resulting from the final settlement of the Qualified Plan. |
Schedule of components of net periodic benefit cost (income) | The components of net periodic benefit cost (income) for the years ended December 31, 2016 , 2015 and 2014 were as follows: December 31, 2016 2015 2014 ($ in millions) Service cost $ 0.2 $ 0.9 $ 0.6 Interest cost 1.5 4.6 4.7 Expected return on plan assets (1.0 ) (8.7 ) (8.5 ) Amortization of net actuarial losses recognized during the year 1.3 1.3 0.3 Net periodic pension cost (income) before special termination benefits 2.0 (1.9 ) (2.9 ) Settlement gain (1) (3.0 ) — — Special termination benefits expense (2) — — 0.3 Total net periodic benefit income $ (1.0 ) $ (1.9 ) $ (2.6 ) _______________________________________________________________________________ (1) Represents the impact of the termination of the Qualified Plan during the year ended December 31, 2016. (2) Special termination benefits represent additional payments made from the Qualified Plan to certain vested participants when their employment was terminated due to a reduction in force. |
Schedule of Defined Benefit Plans Disclosures | The weighted average assumptions for the Non-qualified Plan used to determine benefit obligations as of December 31, 2016 and for the Plans as of December 31, 2015 were as follows: December 31, 2016 2015 Discount rate 3.78 % 3.22 % The weighted average assumptions used to determine net periodic benefit cost for the Plans for the years ended December 31, 2016 and 2015 were as follows: December 31, 2016 2015 Discount rate 3.88 % 3.91 % Expected long-term rate of return on plan assets 3.00 % (1) 6.00 % _______________________________________________________________________________ (1) Represents the rate for the Qualified Plan prior to its termination in March 2016. The Non-qualified Plan is unfunded and, as such the expected long-term rate of return on plan assets is not applicable. |
Schedule of Allocation of Plan Assets | The fair value of the Qualified Plan's invested assets and their related inputs as of December 31, 2016 and 2015 by asset category were as follows: Fair value at December 31, 2016 (1) Level 1 Level 2 Level 3 Common equity securities $ 12.8 $ 12.8 $ — $ — _______________________________________________________________________________ (1) Excludes cash and short-term investments Fair value at December 31, 2015 Level 1 Level 2 Level 3 Fixed maturity investments $ 132.4 $ 132.4 $ — $ — Short-term investments 7.0 7.0 — — Total $ 139.4 $ 139.4 $ — $ — The Qualified Plan's asset allocations as of December 31, 2016 and 2015 by asset category were as follows: Plan Assets at December 31, 2016 2015 Common equity securities 98.5 % — % Fixed maturity investments — 95.0 Cash and short-term investments 1.5 5.0 Total 100.0 % 100.0 % |
Schedule of Expected Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Expected Benefit Payments ($ in millions) 2017 $ 2.1 2018 2.1 2019 2.0 2020 2.0 2021 1.9 2022 – 2026 8.4 |
Employee Share-Based Incentiv40
Employee Share-Based Incentive Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of performance share activity | The following summarizes performance share activity for performance shares for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Target Performance Shares outstanding Accrued expense Target Performance Shares outstanding Accrued expense Target Performance Shares outstanding Accrued expense ($ in millions) Beginning of period 449,435 $ 1.4 517,470 $ 3.4 493,421 $ 4.0 Payments and deferrals (1) (167,300 ) (0.6 ) (181,290 ) (1.5 ) (142,138 ) (1.0 ) New awards 163,150 — 154,887 — 165,800 — Forfeitures and net change in assumed forfeitures 7,234 — (41,632 ) (0.1 ) 387 — Expense (income) recognized — 0.8 — (0.4 ) — 0.4 End of period 452,519 $ 1.6 449,435 $ 1.4 517,470 $ 3.4 _______________________________________________________________________________ (1) Performance share payments in 2016 for the 2013 - 2015 performance cycle were based upon a performance factor of 24.3% . Performance share payments in 2015 for the 2012-2014 performance cycle were based upon a performance factor of 45.7% . Performance share payments in 2014 for the 2011-2013 performance cycle were based upon a performance factor of 37.1% . |
Summary of performance shares outstanding and accrued expense for performance shares awarded under the OB Incentive Plan | The following summarizes performance shares outstanding and accrued performance share expense as of December 31, 2016 for each performance cycle: Target Performance Shares outstanding Accrued expense ($ in millions) Performance cycle: 2014 – 2016 142,710 $ — 2015 – 2017 146,659 0.7 2016 – 2018 163,150 0.9 Total as of December 31, 2016 452,519 1.6 |
Summary of restricted shares activity | The following summarizes restricted shares activity for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value Restricted Shares Unamortized Issue Date Fair Value ($ in millions) Beginning of period 382,722 $ 2.5 612,500 $ 3.5 915,000 $ 6.5 New awards 170,650 2.3 75,950 1.1 — — Forfeitures — — (9,728 ) (0.1 ) (2,500 ) — Vested (157,500 ) — (296,000 ) — (300,000 ) — Expense recognized — (2.7 ) — (2.0 ) — (3.0 ) End of period 395,872 $ 2.1 382,722 $ 2.5 612,500 $ 3.5 |
Common Shareholders' Equity Acc
Common Shareholders' Equity Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The pre-tax components of the Company's change in other comprehensive income (loss) and the related income tax benefit (expense) are as follows: Year ended December 31, 2016 2015 2014 ($ in millions) Net change in benefit plan assets and obligations $ 1.5 $ — $ (18.5 ) Income tax (expense) benefit (0.5 ) — 6.5 Net change in benefit plan assets and obligations, net of tax $ 1.0 $ — $ (12.0 ) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Financial information for OneBeacon's segments | Financial information for OneBeacon's reportable segments is as follows: Insurance Operations Investing, Financing and Corporate Specialty Products Specialty Industries Consolidated ($ in millions) Year ended December 31, 2016 Earned premiums $ 524.4 $ 576.2 $ — $ 1,100.6 Loss and loss adjustment expense (375.4 ) (280.6 ) — (656.0 ) Policy acquisition expenses (99.5 ) (106.5 ) — (206.0 ) Other underwriting expenses (88.6 ) (120.4 ) — (209.0 ) Total underwriting income (loss) (39.1 ) 68.7 — 29.6 Net investment income — — 50.6 50.6 Net realized and change in unrealized investment gains — — 37.7 37.7 Net other revenues (expenses) (0.1 ) 1.5 4.1 5.5 General and administrative expenses — (2.4 ) (11.8 ) (14.2 ) Interest expense — — (13.1 ) (13.1 ) Pre-tax income (loss) from continuing operations $ (39.2 ) $ 67.8 $ 67.5 $ 96.1 Year ended December 31, 2015 Earned premiums $ 560.3 $ 615.9 $ — $ 1,176.2 Loss and loss adjustment expense (310.7 ) (390.0 ) — (700.7 ) Policy acquisition expenses (100.1 ) (113.7 ) — (213.8 ) Other underwriting expenses (97.9 ) (120.3 ) — (218.2 ) Total underwriting income (loss) 51.6 (8.1 ) — 43.5 Net investment income — — 45.9 45.9 Net realized and change in unrealized investment gains — — (35.1 ) (35.1 ) Net other revenues (expenses) (0.2 ) 1.4 (1.8 ) (0.6 ) General and administrative expenses — (2.7 ) (12.7 ) (15.4 ) Interest expense — — (13.0 ) (13.0 ) Pre-tax income (loss) from continuing operations $ 51.4 $ (9.4 ) $ (16.7 ) $ 25.3 Year ended December 31, 2014 Earned premiums $ 582.1 $ 595.0 $ — $ 1,177.1 Loss and loss adjustment expense (457.9 ) (357.2 ) — (815.1 ) Policy acquisition expenses (96.2 ) (107.1 ) — (203.3 ) Other underwriting expenses (78.4 ) (100.8 ) — (179.2 ) Total underwriting income (loss) (50.4 ) 29.9 — (20.5 ) Net investment income — — 43.4 43.4 Net realized and change in unrealized investment gains — — 40.4 40.4 Net other revenues 0.9 1.1 3.8 5.8 General and administrative expenses 0.2 (2.3 ) (11.7 ) (13.8 ) Interest expense — — (13.0 ) (13.0 ) Pre-tax income (loss) from continuing operations $ (49.3 ) $ 28.7 $ 62.9 $ 42.3 Insurance Operations Investing, Financing and Corporate Specialty Products Specialty Industries Consolidated ($ in millions) December 31, 2016 Assets Total investment securities $ — $ — $ 2,620.4 $ 2,620.4 Premiums receivable 81.4 146.9 — 228.3 Reinsurance recoverables (1) 125.4 35.8 18.3 179.5 Deferred acquisition costs 48.3 48.0 — 96.3 Ceded unearned premiums 34.4 9.8 — 44.2 Other assets (2) 1.1 0.1 420.0 421.2 Total Assets $ 290.6 $ 240.6 $ 3,058.7 $ 3,589.9 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 776.6 $ 570.7 $ 18.3 $ 1,365.6 Unearned premiums 319.8 255.3 — 575.1 Funds held under insurance contracts 153.0 — — 153.0 Debt — — 273.2 273.2 Other liabilities (2) — — 197.8 197.8 Total Liabilities $ 1,249.4 $ 826.0 $ 489.3 $ 2,564.7 December 31, 2015 Assets Total investment securities $ — $ — $ 2,591.4 $ 2,591.4 Premiums receivable 63.0 156.0 — 219.0 Reinsurance recoverables (1) 139.5 33.6 20.4 193.5 Deferred acquisition costs 49.6 51.1 — 100.7 Ceded unearned premiums 19.2 10.3 — 29.5 Other assets (2) 0.9 0.1 467.5 468.5 Total Assets $ 272.2 $ 251.1 $ 3,079.3 $ 3,602.6 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 772.2 $ 597.2 $ 20.4 $ 1,389.8 Unearned premiums 288.1 272.2 — 560.3 Funds held under insurance contracts 137.7 — — 137.7 Debt — — 272.9 272.9 Other liabilities (2) — — 237.4 237.4 Total Liabilities $ 1,198.0 $ 869.4 $ 530.7 $ 2,598.1 |
Schedule of selected balance sheet of the segments | Insurance Operations Investing, Financing and Corporate Specialty Products Specialty Industries Consolidated ($ in millions) December 31, 2016 Assets Total investment securities $ — $ — $ 2,620.4 $ 2,620.4 Premiums receivable 81.4 146.9 — 228.3 Reinsurance recoverables (1) 125.4 35.8 18.3 179.5 Deferred acquisition costs 48.3 48.0 — 96.3 Ceded unearned premiums 34.4 9.8 — 44.2 Other assets (2) 1.1 0.1 420.0 421.2 Total Assets $ 290.6 $ 240.6 $ 3,058.7 $ 3,589.9 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 776.6 $ 570.7 $ 18.3 $ 1,365.6 Unearned premiums 319.8 255.3 — 575.1 Funds held under insurance contracts 153.0 — — 153.0 Debt — — 273.2 273.2 Other liabilities (2) — — 197.8 197.8 Total Liabilities $ 1,249.4 $ 826.0 $ 489.3 $ 2,564.7 December 31, 2015 Assets Total investment securities $ — $ — $ 2,591.4 $ 2,591.4 Premiums receivable 63.0 156.0 — 219.0 Reinsurance recoverables (1) 139.5 33.6 20.4 193.5 Deferred acquisition costs 49.6 51.1 — 100.7 Ceded unearned premiums 19.2 10.3 — 29.5 Other assets (2) 0.9 0.1 467.5 468.5 Total Assets $ 272.2 $ 251.1 $ 3,079.3 $ 3,602.6 Liabilities Unpaid loss and loss adjustment expense reserves (1) $ 772.2 $ 597.2 $ 20.4 $ 1,389.8 Unearned premiums 288.1 272.2 — 560.3 Funds held under insurance contracts 137.7 — — 137.7 Debt — — 272.9 272.9 Other liabilities (2) — — 237.4 237.4 Total Liabilities $ 1,198.0 $ 869.4 $ 530.7 $ 2,598.1 _______________________________________________________________________________ (1) ASIC entered into a 100% quota share reinsurance agreement in conjunction with the Runoff Transaction whereby ASIC is ceding to Bedivere 100% of the legacy Runoff Business that was written by ASIC or one of the ongoing entities. As of December 31, 2016 and 2015, $18.3 million and $20.4 million , respectively, are included in both unpaid loss and LAE reserves and reinsurance recoverables included within Investing, Financing, and Corporate resulting from that agreement. (2) The majority of other assets and other liabilities are not separately identifiable at the segment level and have therefore been included within Investing, Financing, and Corporate. |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Management Fees | OneBeacon is responsible for custodial arrangements and the payment of all custodial charges and fees. OneBeacon has agreed to pay annual investment management fees generally based on the quarter-end market values held under custody as set forth in the table below: Assets Under Management Annual Fee Investment Grade Fixed Income: —Up to $1 billion 10.0 basis points —Next $1 billion 8.5 basis points —Next $3 billion 7.5 basis points —Greater than $5 billion 2.5 basis points High Yield Fixed Income 25.0 basis points ETFs 10.0 basis points Equities 100.0 basis points Hedge Funds 100.0 basis points Private Equities & Deferreds: First 2 years of fund's life (committed) 100.0 basis points Thereafter (fair value) 100.0 basis points Affordable housing credit funds: First year of fund's life (committed) 100.0 basis points Thereafter (fair value) 10.0 basis points |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of computation of earnings per share | The following table outlines the Company's computation of earnings per share for net income from continuing operations attributable to OneBeacon's common shareholders for the years ended December 31, 2016 , 2015 and 2014 : Year ended December 31, 2016 2015 2014 Earnings attributable to OneBeacon's common shareholders—basic and diluted (in millions): Net income from continuing operations attributable to OneBeacon's common shareholders $ 107.4 $ 37.0 $ 53.5 Allocation of income for participating unvested restricted common shares (0.5 ) (0.2 ) (0.4 ) Dividends paid on participating restricted common shares (0.3 ) (0.3 ) (0.5 ) Total allocation to restricted common shares (0.8 ) (0.5 ) (0.9 ) Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts $ 106.6 $ 36.5 $ 52.6 Undistributed (over-distributed) net earnings (in millions): Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts $ 106.6 $ 36.5 $ 52.6 Dividends paid, net of restricted common share amounts (78.9 ) (79.7 ) (79.5 ) Total undistributed (over-distributed) net earnings, net of restricted common share amounts $ 27.7 $ (43.2 ) $ (26.9 ) Earnings per share denominator—basic and diluted (in millions): Total weighted average common shares outstanding 94.4 95.3 95.3 Weighted average unvested restricted common shares (1) (0.4 ) (0.5 ) (0.6 ) Basic and diluted earnings per share denominator 94.0 94.8 94.7 Earnings per share attributable to OneBeacon's common shareholders—basic and diluted (in dollars): Net income from continuing operations attributable to OneBeacon's common shareholders $ 1.13 $ 0.38 $ 0.55 Dividends declared and paid (0.84 ) (0.84 ) (0.84 ) Undistributed (over-distributed) earnings $ 0.29 $ (0.46 ) $ (0.29 ) _______________________________________________________________________________ (1) Restricted shares outstanding vest in equal installments upon a stated date or upon the occurrence of a specified event. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Surplus Note Valuation | Below is a table illustrating the valuation adjustments taken to arrive at estimated fair value of the surplus notes as of December 31, 2016 and 2015 : Type of Surplus Note Total as of December 31, 2016 Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) 6.2 (1.1 ) 5.1 Regulatory approval (2) (0.2 ) (15.4 ) (15.6 ) Liquidity adjustment (3) (12.8 ) (5.8 ) (18.6 ) Total (6.8 ) (22.3 ) (29.1 ) Fair value (4) $ 51.1 $ 20.8 $ 71.9 Type of Surplus Note Total as of December 31, 2015 Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) (0.4 ) (14.7 ) (15.1 ) Regulatory approval (2) (11.7 ) (12.5 ) (24.2 ) Liquidity adjustment (3) (7.8 ) (2.4 ) (10.2 ) Total (19.9 ) (29.6 ) (49.5 ) Fair value $ 38.0 $ 13.5 $ 51.5 _______________________________________________________________________________ (1) Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a 250% RBC score under the National Association of Insurance Commissioners’ risk-based capital standards for property and casualty companies. Below is a table illustrating the valuation adjustments taken to arrive at estimated fair value of the surplus notes as of December 23, 2014: Type of Surplus Note Total Seller Priority Pari Passu (in millions) Par value $ 57.9 $ 43.1 $ 101.0 Fair value adjustments to reflect: Current market rates on public debt and contract-based repayments (1) 1.6 (8.4 ) (6.8 ) Regulatory approval (2) (4.6 ) (8.0 ) (12.6 ) Liquidity adjustment (3) (11.0 ) (5.7 ) (16.7 ) Total (14.0 ) (22.1 ) (36.1 ) Fair value $ 43.9 $ 21.0 $ 64.9 _______________________________________________________________________________ (1) Represents the value of the surplus notes, at current market yields on comparable publicly traded debt, and assuming issuer is allowed to make principal and interest payments when its financial capacity is available, as measured by statutory capital in excess of a 250% RBC score. (2) Represents anticipated delay in securing regulatory approvals of interest and principal payments to reflect graduated changes in Issuer's statutory surplus. The monetary impact of the anticipated delay is measured based on credit spreads of public securities with roughly equivalent percentages of discounted payments missed. (3) Represents impact of liquidity spread to account for OneBeacon's sole ownership of the notes, lack of a trading market, and ongoing regulatory approval risk. |
Consolidating Financial Infor46
Consolidating Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidating Balance Sheet | The following tables present OneBeacon's consolidating balance sheets as of December 31, 2016 and 2015 , and statements of operations and comprehensive income and cash flows for the years ended December 31, 2016 , 2015 and 2014 . These financial statements reflect the Company's ("guarantor") financial position, results of operations and cash flows on a stand-alone basis, that of OBH ("the issuer") and of the Company's other entities ("non-guarantor subsidiaries") as well as the necessary consolidating adjustments to eliminate intercompany balances and transactions. Consolidating Balance Sheet The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated as of December 31, 2016 (in millions) Assets Investment Securities: Fixed maturity investments, at fair value $ — $ 2,169.1 $ — $ — $ 2,169.1 Short-term investments, at amortized cost (which approximates fair value) 2.5 108.1 1.5 — 112.1 Common equity securities, at fair value — 188.7 — — 188.7 Other investments — 150.5 — — 150.5 Total investment securities 2.5 2,616.4 1.5 — 2,620.4 Cash — 69.5 0.1 — 69.6 Reinsurance recoverables — 179.5 — — 179.5 Premiums receivable — 228.3 — — 228.3 Deferred acquisition costs — 96.3 — — 96.3 Ceded unearned premiums — 44.2 — — 44.2 Net deferred tax asset — 126.6 — 0.1 126.7 Investment income accrued — 11.3 — — 11.3 Accounts receivable on unsettled investment sales — 1.4 — — 1.4 Investments in subsidiaries 1,018.8 — 989.4 (2,008.2 ) — Other assets 0.4 211.4 0.4 — 212.2 Total assets $ 1,021.7 $ 3,584.9 $ 991.4 $ (2,008.1 ) $ 3,589.9 Liabilities Unpaid loss and loss adjustment expense reserves $ — $ 1,365.6 $ — $ — $ 1,365.6 Unearned premiums — 575.1 — — 575.1 Funds held under insurance contracts — 153.0 — — 153.0 Debt — — 273.2 — 273.2 Other liabilities 0.4 190.6 6.8 — 197.8 Total liabilities 0.4 2,284.3 280.0 — 2,564.7 OneBeacon's common shareholders' equity and noncontrolling interests Total OneBeacon's common shareholders' equity 1,021.3 1,296.7 711.4 (2,008.1 ) 1,021.3 Noncontrolling interests — 3.9 — — 3.9 Total OneBeacon's common shareholders' equity and noncontrolling interests 1,021.3 1,300.6 711.4 (2,008.1 ) 1,025.2 Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests $ 1,021.7 $ 3,584.9 $ 991.4 $ (2,008.1 ) $ 3,589.9 Consolidating Balance Sheet The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated as of December 31, 2015 (in millions) Assets Investment Securities: Fixed maturity investments, at fair value $ — $ 2,074.6 $ 5.9 $ — $ 2,080.5 Short-term investments, at amortized cost (which approximates fair value) 4.4 64.1 0.7 — 69.2 Common equity securities, at fair value — 298.7 — — 298.7 Other investments — 143.0 — — 143.0 Total investment securities 4.4 2,580.4 6.6 — 2,591.4 Cash — 94.6 0.6 — 95.2 Reinsurance recoverables — 193.5 — — 193.5 Premiums receivable — 219.0 — — 219.0 Deferred acquisition costs — 100.7 — — 100.7 Ceded unearned premiums — 29.5 — — 29.5 Net deferred tax asset — 140.1 — 0.1 140.2 Investment income accrued — 10.1 — — 10.1 Accounts receivable on unsettled investment sales — 30.5 — — 30.5 Investments in subsidiaries 996.9 — 951.3 (1,948.2 ) — Other assets 0.5 190.6 1.4 — 192.5 Total assets $ 1,001.8 $ 3,589.0 $ 959.9 $ (1,948.1 ) $ 3,602.6 Liabilities Unpaid loss and loss adjustment expense reserves $ — $ 1,389.8 $ — $ — $ 1,389.8 Unearned premiums — 560.3 — — 560.3 Funds held under insurance contracts — 137.7 — — 137.7 Debt — — 272.9 — 272.9 Other liabilities 0.9 230.4 6.1 — 237.4 Total liabilities 0.9 2,318.2 279.0 — 2,598.1 OneBeacon's common shareholders' equity and noncontrolling interests Total OneBeacon's common shareholders' equity 1,000.9 1,267.2 680.9 (1,948.1 ) 1,000.9 Noncontrolling interests — 3.6 — — 3.6 Total OneBeacon's common shareholders' equity and noncontrolling interests 1,000.9 1,270.8 680.9 (1,948.1 ) 1,004.5 Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests $ 1,001.8 $ 3,589.0 $ 959.9 $ (1,948.1 ) $ 3,602.6 |
Consolidating Statement of Operations and Comprehensive (Loss) Income | Consolidating Statement of Operations and Comprehensive Income The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2016 (in millions) Revenues Earned premiums $ — $ 1,100.6 $ — $ — $ 1,100.6 Net investment income — 50.6 — — 50.6 Net realized and change in unrealized investment gains — 37.7 — — 37.7 Net other revenues — 5.5 — — 5.5 Total revenues — 1,194.4 — — 1,194.4 Expenses Loss and loss adjustment expenses — 656.0 — — 656.0 Policy acquisition expenses — 206.0 — — 206.0 Other underwriting expenses — 209.0 — — 209.0 General and administrative expenses 4.5 9.3 0.4 — 14.2 Interest expense — — 13.1 — 13.1 Total expenses 4.5 1,080.3 13.5 — 1,098.3 Pre-tax income (loss) from continuing operations (4.5 ) 114.1 (13.5 ) — 96.1 Income tax benefit — 7.7 4.8 — 12.5 Net income (loss) from continuing operations (4.5 ) 121.8 (8.7 ) — 108.6 Net loss from discontinued operations, net of tax — — — — — Income (loss) before equity in earnings of unconsolidated affiliates (4.5 ) 121.8 (8.7 ) — 108.6 Equity in earnings of subsidiaries, net of tax 111.9 — 59.2 (171.1 ) — Net income including noncontrolling interests 107.4 121.8 50.5 (171.1 ) 108.6 Less: Net income attributable to noncontrolling interests — (1.2 ) — — (1.2 ) Net income attributable to OneBeacon's common shareholders 107.4 120.6 50.5 (171.1 ) 107.4 Net change in benefit plan assets and obligations, net of tax 1.0 — 1.0 (1.0 ) 1.0 Comprehensive income attributable to OneBeacon's common shareholders $ 108.4 $ 120.6 $ 51.5 $ (172.1 ) $ 108.4 Consolidating Statement of Operations and Comprehensive Income (Loss) The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2015 (in millions) Revenues Earned premiums $ — $ 1,176.2 $ — $ — $ 1,176.2 Net investment income — 45.9 — — 45.9 Net realized and change in unrealized investment gains — (35.1 ) — — (35.1 ) Net other revenues (expenses) — (0.6 ) — — (0.6 ) Total revenues — 1,186.4 — — 1,186.4 Expenses Loss and loss adjustment expenses — 700.7 — — 700.7 Policy acquisition expenses — 213.8 — — 213.8 Other underwriting expenses — 218.2 — — 218.2 General and administrative expenses 4.8 10.3 0.3 — 15.4 Interest expense — — 13.0 — 13.0 Total expenses 4.8 1,143.0 13.3 — 1,161.1 Pre-tax income (loss) from continuing operations (4.8 ) 43.4 (13.3 ) — 25.3 Income tax benefit — 8.2 4.7 — 12.9 Net income (loss) from continuing operations (4.8 ) 51.6 (8.6 ) — 38.2 Net loss from discontinued operations, net of tax — (0.2 ) — — (0.2 ) Net income (loss) before equity in earnings of unconsolidated affiliates (4.8 ) 51.4 (8.6 ) — 38.0 Equity in earnings of subsidiaries, net of tax 41.6 — 8.3 (49.9 ) — Net income (loss) including noncontrolling interests 36.8 51.4 (0.3 ) (49.9 ) 38.0 Less: Net income attributable to noncontrolling interests — (1.2 ) — — (1.2 ) Net income (loss) attributable to OneBeacon's common shareholders 36.8 50.2 (0.3 ) (49.9 ) 36.8 Net change in benefit plan assets and obligations, net of tax — — — — — Comprehensive income (loss) attributable to OneBeacon's common shareholders $ 36.8 $ 50.2 $ (0.3 ) $ (49.9 ) $ 36.8 Consolidating Statement of Operations and Comprehensive Income (Loss) The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2014 (in millions) Revenues Earned premiums $ — $ 1,177.1 $ — $ — $ 1,177.1 Net investment income — 44.4 0.1 (1.1 ) 43.4 Net realized and change in unrealized investment gains — 44.6 — (4.2 ) 40.4 Net other revenues (expenses) — 5.8 (3.7 ) 3.7 5.8 Total revenues — 1,271.9 (3.6 ) (1.6 ) 1,266.7 Expenses Loss and loss adjustment expenses — 815.1 — — 815.1 Policy acquisition expenses — 203.3 — — 203.3 Other underwriting expenses — 179.2 — — 179.2 General and administrative expenses 5.1 8.4 0.3 — 13.8 Interest expense — — 14.1 (1.1 ) 13.0 Total expenses 5.1 1,206.0 14.4 (1.1 ) 1,224.4 Pre-tax income (loss) from continuing operations (5.1 ) 65.9 (18.0 ) (0.5 ) 42.3 Income tax benefit — 5.8 6.3 0.2 12.3 Net income (loss) from continuing operations (5.1 ) 71.7 (11.7 ) (0.3 ) 54.6 Net loss from discontinued operations, net of tax — (20.6 ) — — (20.6 ) Income (loss) before equity in earnings of unconsolidated affiliates (5.1 ) 51.1 (11.7 ) (0.3 ) 34.0 Equity in earnings of subsidiaries, net of tax 38.0 — 9.5 (47.5 ) — Net income (loss) including noncontrolling interests 32.9 51.1 (2.2 ) (47.8 ) 34.0 Less: Net income attributable to noncontrolling interests — (1.1 ) — — (1.1 ) Net income (loss) attributable to OneBeacon's common shareholders 32.9 50.0 (2.2 ) (47.8 ) 32.9 Net change in benefit plan assets and obligations, net of tax (12.0 ) — (12.0 ) 12.0 (12.0 ) Comprehensive income (loss) attributable to OneBeacon's common shareholders $ 20.9 $ 50.0 $ (14.2 ) $ (35.8 ) $ 20.9 |
Consolidating Statement of Cash Flows | Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2016 ($ in millions) Cash flows from operations: Net income including noncontrolling interests $ 107.4 $ 121.8 $ 50.5 $ (171.1 ) $ 108.6 Charges (credits) to reconcile net income to cash flows provided from (used for) operations: Undistributed earnings from subsidiaries (111.9 ) — (59.2 ) 171.1 — Net realized and change in unrealized investment gains — (37.7 ) — — (37.7 ) Net adjustment to gain on sale of business — (0.5 ) — — (0.5 ) Deferred income tax expense — 15.4 — — 15.4 Dividends received from subsidiaries 91.0 4.5 4.5 (100.0 ) — Other operating items: Net change in loss and LAE reserves — (24.2 ) — — (24.2 ) Net change in unearned premiums — 14.8 — — 14.8 Net change in ceded unearned premium — (14.7 ) — — (14.7 ) Net change in premiums receivable — (9.3 ) — — (9.3 ) Net change in reinsurance recoverable on paid and unpaid losses — 14.0 — — 14.0 Net change in funds held under insurance contracts. — 15.3 — — 15.3 Net change in other assets and liabilities 2.3 (38.6 ) 1.9 — (34.4 ) Net cash provided from (used for) operations—continuing operations 88.8 60.8 (2.3 ) (100.0 ) 47.3 Net cash used for operations—discontinued operations — — — — — Net cash provided from (used for) operations 88.8 60.8 (2.3 ) (100.0 ) 47.3 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments 1.9 (44.0 ) (0.8 ) — (42.9 ) Maturities of fixed maturity investments — 543.5 — — 543.5 Sales of fixed maturity investments — 771.2 24.2 (42.5 ) 752.9 Sales of common equity securities — 384.9 — — 384.9 Return of capital and distributions of other investments — 11.6 — — 11.6 Purchases of fixed maturity investments — (1,420.1 ) (18.3 ) 42.5 (1,395.9 ) Purchases of common equity securities — (260.0 ) — — (260.0 ) Contributions for other investments — (1.0 ) — — (1.0 ) Net change in unsettled investment purchases and sales — 29.1 — — 29.1 Net acquisitions of property and equipment — (2.7 ) — — (2.7 ) Capital contribution from parent — 27.3 28.5 (55.8 ) — Net cash provided from investing activities—continuing operations 1.9 39.8 33.6 (55.8 ) 19.5 Net cash provided from investing activities—discontinued operations — — — — — Net cash provided from investing activities 1.9 39.8 33.6 (55.8 ) 19.5 Cash flows from financing activities: Cash dividends paid to common shareholders (79.2 ) — — — (79.2 ) Cash dividends paid to parent — (95.5 ) (4.5 ) 100.0 — Capital contribution to subsidiary — (28.5 ) (27.3 ) 55.8 — Repurchases and retirements of common stock (11.5 ) — — — (11.5 ) Payments on capital lease obligation — (1.7 ) — — (1.7 ) Net cash used for financing activities—continuing operations (90.7 ) (125.7 ) (31.8 ) 155.8 (92.4 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (90.7 ) (125.7 ) (31.8 ) 155.8 (92.4 ) Net decrease in cash during period — (25.1 ) (0.5 ) — (25.6 ) Cash balance at beginning of period — 94.6 0.6 — 95.2 Cash balance at end of period $ — $ 69.5 $ 0.1 $ — $ 69.6 Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2015 ($ in millions) Cash flows from operations: Net income (loss) including noncontrolling interests $ 36.8 $ 51.4 $ (0.3 ) $ (49.9 ) $ 38.0 Charges (credits) to reconcile net income to cash flows provided from operations: Undistributed earnings from subsidiaries (41.6 ) — (8.3 ) 49.9 — Net loss from discontinued operations — 0.2 — — 0.2 Net realized and change in unrealized investment gains — 35.1 — — 35.1 Net adjustment to gain on sale of business — 3.7 — — 3.7 Deferred income tax benefit — (5.8 ) — — (5.8 ) Dividends received from subsidiaries 72.0 99.9 110.9 (282.8 ) — Other operating items: Net change in loss and LAE reserves — 47.6 — — 47.6 Net change in unearned premiums — (28.0 ) — — (28.0 ) Net change in ceded unearned premiums — (11.6 ) — — (11.6 ) Net change in premiums receivable — 22.5 — — 22.5 Net change in reinsurance recoverable on paid and unpaid losses — (19.7 ) — — (19.7 ) Net change in funds held under reinsurance contracts — 37.1 — — 37.1 Net change in funds held under insurance contracts — 56.7 — — 56.7 Net change in other assets and liabilities 2.5 13.6 0.5 — 16.6 Net cash provided from operations—continuing operations 69.7 302.7 102.8 (282.8 ) 192.4 Net cash used for operations—discontinued operations — (0.5 ) — — (0.5 ) Net cash provided from operations 69.7 302.2 102.8 (282.8 ) 191.9 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments 14.0 118.5 0.6 — 133.1 Maturities of fixed maturity investments — 262.4 — — 262.4 Sales of fixed maturity investments — 491.5 88.7 183.3 763.5 Sales of common equity securities — 345.6 — — 345.6 Return of capital and distributions of other investments — 40.5 — — 40.5 Purchases of fixed maturity investments — (1,055.3 ) (94.9 ) (183.3 ) (1,333.5 ) Purchases of common equity securities — (323.5 ) — — (323.5 ) Contributions for other investments — (4.2 ) — — (4.2 ) Net change in unsettled investment purchases and sales — (23.8 ) — — (23.8 ) Proceeds from sale of property and equipment — 56.8 — — 56.8 Net acquisitions of property and equipment — (11.5 ) — — (11.5 ) Capital contribution from parent — 2.2 5.5 (7.7 ) — Net cash provided from (used for) investing activities—continuing operations 14.0 (100.8 ) (0.1 ) (7.7 ) (94.6 ) Net cash provided from investing activities—discontinued operations — — — — — Net cash provided from (used for) investing activities 14.0 (100.8 ) (0.1 ) (7.7 ) (94.6 ) Cash flows from financing activities: Cash dividends paid to common shareholders (80.0 ) — — — (80.0 ) Cash dividends paid to parent — (182.9 ) (99.9 ) 282.8 — Capital contribution to subsidiary — (5.5 ) (2.2 ) 7.7 — Repurchases and retirements of common stock (3.7 ) — — — (3.7 ) Payments on capital lease obligation — (5.4 ) — — (5.4 ) Net cash used for financing activities—continuing operations (83.7 ) (193.8 ) (102.1 ) 290.5 (89.1 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (83.7 ) (193.8 ) (102.1 ) 290.5 (89.1 ) Net increase in cash during period — 7.6 0.6 — 8.2 Cash balance at beginning of period — 87.0 — — 87.0 Cash balance at end of period $ — $ 94.6 $ 0.6 $ — $ 95.2 Consolidating Statement of Cash Flows The Company (guarantor) Non-guarantor subsidiaries OBH (issuer) Consolidating adjustments Consolidated Year ended December 31, 2014 ($ in millions) Cash flows from operations: Net income (loss) including noncontrolling interests $ 32.9 $ 51.1 $ (2.2 ) $ (47.8 ) $ 34.0 Charges (credits) to reconcile net income to cash flows provided from operations: Undistributed earnings from subsidiaries (38.0 ) — (9.5 ) 47.5 — Net loss from discontinued operations — 20.6 — — 20.6 Net realized and change in unrealized investment gains — (44.6 ) — 4.2 (40.4 ) Net other realized losses — (3.7 ) 3.7 — — Deferred income tax expense (benefit) — (18.8 ) — (0.2 ) (19.0 ) Dividends received from subsidiaries 90.4 15.0 50.0 (155.4 ) — Other operating items: Net change in loss and LAE reserves — 287.9 — — 287.9 Net change in unearned premiums — 43.4 — — 43.4 Net change in ceded unearned premiums — (3.6 ) — — (3.6 ) Net change in premiums receivable — (13.3 ) — — (13.3 ) Net change in reinsurance recoverable on paid and unpaid losses — (83.9 ) — — (83.9 ) Net change in funds held under reinsurance contracts — (35.3 ) — — (35.3 ) Net change in funds held under insurance contracts — 17.7 — — 17.7 Net change in other assets and liabilities 1.9 (49.6 ) (1.9 ) (6.5 ) (56.1 ) Net cash provided from operations—continuing operations 87.2 182.9 40.1 (158.2 ) 152.0 Net cash used for operations—discontinued operations — (54.5 ) — — (54.5 ) Net cash provided from operations 87.2 128.4 40.1 (158.2 ) 97.5 Cash flows from investing activities: Net maturities, purchases and sales of short-term investments (5.4 ) (62.8 ) 2.7 — (65.5 ) Maturities of fixed maturity investments — 396.4 — — 396.4 Sales of fixed maturity investments — 1,927.9 80.3 (165.1 ) 1,843.1 Sales of common equity securities — 240.2 — — 240.2 Return of capital and distributions of other investments — 53.4 — — 53.4 Purchases of fixed maturity investments — (2,265.1 ) (80.9 ) 139.2 (2,206.8 ) Purchases of common equity securities — (202.4 ) — — (202.4 ) Contributions for other investments — (81.9 ) — — (81.9 ) Net change in unsettled investment purchases and sales — (15.0 ) — — (15.0 ) Net acquisitions of property and equipment — (2.2 ) — — (2.2 ) Capital contribution from parent — 70.0 70.0 (140.0 ) — Net cash (used for) provided from investing activities—continuing operations (5.4 ) 58.5 72.1 (165.9 ) (40.7 ) Net cash provided from investing activities—discontinued operations — — — — — Net cash (used for) provided from investing activities (5.4 ) 58.5 72.1 (165.9 ) (40.7 ) Cash flows from financing activities: Repurchases of debt — — (28.7 ) 28.7 — Cash dividends paid to common shareholders (80.0 ) — — — (80.0 ) Cash dividends paid to parent — (140.4 ) (15.0 ) 155.4 — Capital contribution to subsidiary — (70.0 ) (70.0 ) 140.0 — Repurchases and retirements of common stock (1.8 ) — — — (1.8 ) Payments on capital lease obligation — (5.3 ) — — (5.3 ) Net cash used for financing activities—continuing operations (81.8 ) (215.7 ) (113.7 ) 324.1 (87.1 ) Net cash used for financing activities—discontinued operations — — — — — Net cash used for financing activities (81.8 ) (215.7 ) (113.7 ) 324.1 (87.1 ) Net decrease in cash during period — (28.8 ) (1.5 ) — (30.3 ) Cash transferred with sale of business — (50.8 ) — — (50.8 ) Net decrease after cash transferred with sale of business — (79.6 ) (1.5 ) — (81.1 ) Cash balance at beginning of period — 166.6 1.5 — 168.1 Cash balance at end of period $ — $ 87.0 $ — $ — $ 87.0 |
Selected Quarterly Financial 47
Selected Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | Selected quarterly financial data for 2016 and 2015 is shown in the following table. The quarterly financial data includes, in the opinion of management, all recurring adjustments necessary for a fair presentation of the results of operations for the interim periods. 2016 Three months ended 2015 Three months ended ($ in millions, except per share amounts) Mar 31 Jun 30 Sep 30 Dec 31 Mar 31 Jun 30 Sep 30 Dec 31 Revenues $ 310.5 $ 309.0 $ 307.0 $ 267.9 $ 308.2 $ 314.2 $ 267.8 $ 296.2 Expenses 272.3 286.0 274.1 265.9 280.1 311.3 284.6 285.1 Pre-tax income (loss) from continuing operations 38.2 23.0 32.9 2.0 28.1 2.9 (16.8 ) 11.1 Tax (expense) benefit 8.7 2.0 (4.6 ) 6.4 (3.4 ) 0.9 3.5 11.9 Net income (loss) from continuing operations 46.9 25.0 28.3 8.4 24.7 3.8 (13.3 ) 23.0 Net (loss) gain from discontinued operations, net of tax — — — — (0.1 ) 0.1 (0.1 ) (0.1 ) Net income (loss) including noncontrolling interests 46.9 25.0 28.3 8.4 24.6 3.9 (13.4 ) 22.9 Less: Net income attributable to noncontrolling interests (0.5 ) (0.5 ) — (0.2 ) (0.5 ) (0.5 ) — (0.2 ) Net income (loss) attributable to OneBeacon's common shareholders $ 46.4 $ 24.5 $ 28.3 $ 8.2 $ 24.1 $ 3.4 $ (13.4 ) $ 22.7 Earnings (loss) per share attributable to OneBeacon's common shareholders—basic and diluted: (1) Net income (loss) from continuing operations per share $ 0.49 $ 0.26 $ 0.30 $ 0.09 $ 0.25 $ 0.03 $ (0.14 ) $ 0.24 Net income (loss) attributable to OneBeacon's common shareholders per share $ 0.49 $ 0.26 $ 0.30 $ 0.09 $ 0.25 $ 0.03 $ (0.14 ) $ 0.24 (1) Due to the averaging of shares, quarterly earnings per share may not add to the total for the full year. |
Nature of Operations and Summ48
Nature of Operations and Summary of Significant Accounting Policies (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segmentsecurity | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Basis of presentation | |||||||||||
Unamortized debt issuance costs | $ 1.6 | $ 1.9 | $ 1.6 | $ 1.9 | |||||||
Number of operating segments | segment | 16 | ||||||||||
Percentage of fair value investments using observable inputs | 95.00% | 92.00% | 95.00% | 92.00% | |||||||
Minimum percentage of variation from expected price required to treat prices of investments provided by pricing services as outliers | 5.00% | 5.00% | |||||||||
Minimum variation from expected price require to treat prices of investments provided by pricing services as outliers | $ 1 | $ 1 | |||||||||
Number of securities outside expected price results | security | 9 | ||||||||||
Deferred policy acquisitions costs | $ 229 | $ 237.3 | $ 237.6 | ||||||||
Deferred policy acquisition costs related to other underwriting expenses | 20.4 | 21.3 | 22.9 | ||||||||
Unamortized discount | (232.7) | (239.7) | (227.6) | ||||||||
Amortization of deferred policy acquisition costs included in underwriting expense | $ (20.7) | $ (22.2) | 23 | ||||||||
Workers’ compensation statutory discount rate | 2.50% | 2.50% | |||||||||
Premium deficiencies recognized | $ 0 | $ 0 | 0 | ||||||||
Workers compensation discount | 1.6 | $ 1.1 | 1.6 | 1.1 | |||||||
Impairment of capitalized software | 0 | 1.6 | |||||||||
Unamortized deferred software cost | 13.4 | 12.7 | 13.4 | 12.7 | |||||||
Other assets | 212.2 | 192.5 | 212.2 | 192.5 | |||||||
Debt | 273.2 | 272.9 | 273.2 | 272.9 | |||||||
Net investment income | 50.6 | 45.9 | 43.4 | ||||||||
Income tax benefit | $ 6.4 | $ (4.6) | $ 2 | $ 8.7 | 11.9 | $ 3.5 | $ 0.9 | $ (3.4) | $ 12.5 | 12.9 | 12.3 |
Deferred Software Costs | Minimum | |||||||||||
Basis of presentation | |||||||||||
Useful life | 3 years | ||||||||||
Deferred Software Costs | Maximum | |||||||||||
Basis of presentation | |||||||||||
Useful life | 5 years | ||||||||||
White Mountains Insurance Group Ltd | |||||||||||
Basis of presentation | |||||||||||
Ownership interest (as a percent) | 76.10% | 76.10% | |||||||||
Specialty Products | |||||||||||
Basis of presentation | |||||||||||
Number of operating segments | segment | 10 | ||||||||||
Debt | $ 0 | 0 | $ 0 | 0 | |||||||
Net investment income | $ 0 | 0 | 0 | ||||||||
Specialty Industries | |||||||||||
Basis of presentation | |||||||||||
Number of operating segments | segment | 6 | ||||||||||
Debt | $ 0 | 0 | $ 0 | 0 | |||||||
Net investment income | $ 0 | 0 | $ 0 | ||||||||
Other Assets | Accounting Standards Update 2015-03 | |||||||||||
Basis of presentation | |||||||||||
Unamortized debt issuance costs | (1.9) | (1.9) | |||||||||
Long-term Debt | Accounting Standards Update 2015-03 | |||||||||||
Basis of presentation | |||||||||||
Unamortized debt issuance costs | $ 1.9 | $ 1.9 | |||||||||
US Bancorp | |||||||||||
Basis of presentation | |||||||||||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 5 years | ||||||||||
Fifth Third Bank | |||||||||||
Basis of presentation | |||||||||||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 4 years |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) - USD ($) | Jul. 31, 2015 | Sep. 30, 2016 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 23, 2014 |
Dispositions | |||||||
Reinsurance recoverables | $ 179,500,000 | $ 193,500,000 | |||||
Earned premiums | 1,100,600,000 | $ 1,176,200,000 | $ 1,177,100,000 | ||||
Runoff | |||||||
Dispositions | |||||||
Surplus notes issued as seller financing in sale of discontinued operations | $ 101,000,000 | ||||||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | $ 64,900,000 | ||||||
Essentia Insurance Company | |||||||
Dispositions | |||||||
Gain on sale of discontinued operation, pre-tax | $ (500,000) | $ (3,700,000) | |||||
Crop | |||||||
Dispositions | |||||||
Agreement Length | 5 years | ||||||
Consideration received | $ 3,000,000 | ||||||
Quota share reinsurance agreement percentage | 100.00% | 100.00% | |||||
Net business exposure | $ 0 |
Unpaid Loss and Loss Adjustme50
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss and Loss Adjustment Expense | |||||
Workers’ compensation statutory discount rate | 2.50% | 2.50% | |||
Workers compensation discount | $ 1.6 | $ 1.1 | |||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | |||||
Gross beginning loss and LAE reserves | $ 1,054.3 | 1,389.8 | 1,342.2 | $ 1,054.3 | |
Less beginning reinsurance recoverable on unpaid losses | (80.2) | (186) | (161.6) | (80.2) | |
Net beginning loss and LAE reserves | 974.1 | 1,203.8 | 1,180.6 | 974.1 | |
Loss and LAE incurred from continuing operations relating to: | |||||
Current year losses | $ 33.7 | 29.9 | 640.6 | 702.5 | 725.3 |
Prior year losses | 75.5 | $ 14.3 | 15.4 | (1.8) | 89.8 |
Total incurred loss and LAE from continuing operations | 656 | 700.7 | 815.1 | ||
Loss and LAE paid from continuing operations relating to: | |||||
Current year losses | (188) | (202.4) | (199.6) | ||
Prior year losses | (479.1) | (475.1) | (409) | ||
Total loss and LAE payments from continuing operations | (667.1) | (677.5) | (608.6) | ||
Net loss and LAE reserves | 1,192.7 | 1,203.8 | 1,180.6 | ||
Total incurred loss and LAE from discontinued operations | 0 | 0 | (0.7) | ||
Total loss and LAE payments from discontinued operations | 0 | 0 | (55.1) | ||
Net loss and LAE reserves | 1,192.7 | 1,203.8 | 1,124.8 | ||
Net change in loss and LAE reserves reported in liabilities held for sale | 0 | 188.4 | |||
Net loss and LAE reserves sold | 0 | 0 | (132.6) | ||
Net ending loss and LAE reserves | 1,180.6 | 1,192.7 | 1,203.8 | 1,180.6 | |
Plus ending reinsurance recoverable on unpaid losses | (161.6) | (186) | (161.6) | ||
Gross ending loss and LAE reserves | 1,342.2 | $ 1,365.6 | 1,389.8 | 1,342.2 | |
Runoff | |||||
Loss and LAE paid from continuing operations relating to: | |||||
Net change in loss and LAE reserves reported in liabilities held for sale | $ 0 | 188.4 | |||
One Beacon | |||||
Loss and LAE incurred from continuing operations relating to: | |||||
Prior year losses | $ 75.5 | $ 89.8 |
Unpaid Loss and Loss Adjustme51
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | $ 75.5 | $ 14.3 | $ 15.4 | $ (1.8) | $ 89.8 | ||||
Liability for unpaid claims and claims adjustment expense for prior years | 479.1 | 475.1 | 409 | ||||||
Net loss and LAE reserves | 109.2 | ||||||||
Current year losses | 33.7 | $ 29.9 | 640.6 | $ 702.5 | 725.3 | ||||
Healthcare | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | $ 9.6 | $ 1.1 | $ 20 | $ 10 | $ 40.7 | ||||
One Beacon | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | 75.5 | 89.8 | |||||||
Net loss and LAE reserves | 109.2 | ||||||||
One Beacon | Other Professional Lines | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | 31.9 | 42.2 | |||||||
Net loss and LAE reserves | 43 | ||||||||
Current year losses | 11.1 | ||||||||
One Beacon | Entertainment | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | 11.6 | 13.5 | |||||||
Net loss and LAE reserves | 13.1 | ||||||||
Current year losses | 1.5 | ||||||||
One Beacon | Crop | |||||||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||||||||
Prior year losses | 0 | $ 0 | |||||||
Net loss and LAE reserves | 3.8 | ||||||||
Current year losses | $ 3.8 |
Unpaid Loss and Loss Adjustme52
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves - LAE Development (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | $ 33.7 | $ 29.9 | $ 640.6 | $ 702.5 | $ 725.3 |
Prior year losses | 75.5 | 14.3 | $ 15.4 | $ (1.8) | 89.8 |
Net loss and LAE reserves | 109.2 | ||||
One Beacon | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Prior year losses | 75.5 | 89.8 | |||
Net loss and LAE reserves | 109.2 | ||||
One Beacon | Other Professional Lines and Management Liability [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | $ 17.7 | ||||
One Beacon | Other Professional Lines | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 11.1 | ||||
Prior year losses | 31.9 | 42.2 | |||
Net loss and LAE reserves | 43 | ||||
One Beacon | Management Liability [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 6.6 | ||||
Prior year losses | 8.4 | 16.4 | |||
Net loss and LAE reserves | 15 | ||||
One Beacon | Financial Services [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 2 | ||||
Prior year losses | 6.5 | 6.5 | |||
Net loss and LAE reserves | 8.5 | ||||
One Beacon | Healthcare | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 3.2 | ||||
Prior year losses | (0.4) | (6) | |||
Net loss and LAE reserves | 2.8 | ||||
One Beacon | Crop | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 3.8 | ||||
Prior year losses | 0 | 0 | |||
Net loss and LAE reserves | 3.8 | ||||
One Beacon | Other Insurance Product Line [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 2.8 | ||||
Prior year losses | (0.4) | 1.6 | |||
Net loss and LAE reserves | 2.4 | ||||
One Beacon | Specialty Product Lines [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | (1.1) | ||||
Prior year losses | 5.7 | 1.1 | |||
Net loss and LAE reserves | 4.6 | ||||
One Beacon | Entertainment | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 1.5 | ||||
Prior year losses | 11.6 | 13.5 | |||
Net loss and LAE reserves | 13.1 | ||||
One Beacon | Government Risk [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 1.2 | ||||
Prior year losses | 7.1 | 8.5 | |||
Net loss and LAE reserves | 8.3 | ||||
One Beacon | Specialty Products | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 28.4 | ||||
Prior year losses | 51.7 | 61.8 | |||
Net loss and LAE reserves | 80.1 | ||||
One Beacon | Accident [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 0 | ||||
Prior year losses | 3.5 | 6 | |||
Net loss and LAE reserves | 3.5 | ||||
One Beacon | Other Specialty Industries [Member] | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 2.6 | ||||
Prior year losses | 1.6 | 0 | |||
Net loss and LAE reserves | 4.2 | ||||
One Beacon | Specialty Industries | |||||
Liability for Claims and Claims Adjustment Expense [Line Items] | |||||
Current year losses | 5.3 | ||||
Prior year losses | 23.8 | $ 28 | |||
Net loss and LAE reserves | $ 29.1 |
Unpaid Loss and Loss Adjustme53
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves - Liabilities for Unpaid Claims and Claims Adjustment Expenses (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | $ 1,153 | |||
Less: Workers compensation discount | (1.6) | $ (1.1) | ||
Total unpaid loss and allocated loss adjustment expense reserves, net of reinsurance | 1,151.4 | |||
Plus: Unallocated loss adjustment expenses | 41.3 | |||
Plus: Other items | 0 | |||
Total unpaid loss and loss adjustment expense reserves, net of reinsurance | 1,192.7 | 1,203.8 | $ 1,180.6 | $ 974.1 |
Plus: Reinsurance recoverables on unpaid losses | 172.9 | |||
Unpaid loss and loss adjustment expense reserves | 1,365.6 | 1,389.8 | $ 1,342.2 | $ 1,054.3 |
Specialty Products | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid loss and loss adjustment expense reserves | 776.6 | 772.2 | ||
Specialty Products | Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 30.2 | |||
Plus: Reinsurance recoverables on unpaid losses | 40.9 | |||
Specialty Products | Casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 568.7 | |||
Plus: Reinsurance recoverables on unpaid losses | 64 | |||
Specialty Products | Other | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 38.2 | |||
Plus: Reinsurance recoverables on unpaid losses | 16 | |||
Specialty Industries | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Unpaid loss and loss adjustment expense reserves | 570.7 | 597.2 | ||
Specialty Industries | Property | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 108.5 | |||
Plus: Reinsurance recoverables on unpaid losses | 13.2 | |||
Specialty Industries | Casualty | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 360 | |||
Plus: Reinsurance recoverables on unpaid losses | 19.9 | |||
Specialty Industries | Other | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Total unpaid and undiscounted loss and allocated loss adjustment expense reserves, net of reinsurance | 47.4 | |||
Plus: Reinsurance recoverables on unpaid losses | 0.6 | |||
Investing, Financing and Corporate | ||||
Short-duration Insurance Contracts, Reconciliation of Claims Development to Liability [Line Items] | ||||
Plus: Reinsurance recoverables on unpaid losses | 18.3 | |||
Unpaid loss and loss adjustment expense reserves | $ 18.3 | $ 20.4 |
Unpaid Loss and Loss Adjustme54
Unpaid Loss and Loss Adjustment Expense ("LAE") Reserves - Claims and Allocated Claim Adjustment Expenses (Details) $ in Millions | Dec. 31, 2016USD ($)item | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Dec. 31, 2011USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2008USD ($) | Dec. 31, 2007USD ($) |
Claims Development [Line Items] | ||||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 1,153 | |||||||||
Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 405.2 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 375 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 30.2 | |||||||||
Year One | 70.10% | |||||||||
Year Two | 14.60% | |||||||||
Year Three | 5.90% | |||||||||
Year Four | 1.10% | |||||||||
Year Five | 0.30% | |||||||||
Year Six | 0.20% | |||||||||
Year Seven | 0.40% | |||||||||
Year Eight | 0.00% | |||||||||
Year Nine | 0.00% | |||||||||
Year Ten | 0.00% | |||||||||
Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,976.1 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,411.7 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 4.3 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 568.7 | |||||||||
Year One | 11.30% | |||||||||
Year Two | 24.00% | |||||||||
Year Three | 17.80% | |||||||||
Year Four | 9.60% | |||||||||
Year Five | 4.70% | |||||||||
Year Six | 2.20% | |||||||||
Year Seven | 0.90% | |||||||||
Year Eight | 0.70% | |||||||||
Year Nine | 0.20% | |||||||||
Year Ten | 0.00% | |||||||||
Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 478 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 439.9 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 0.1 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 38.2 | |||||||||
Year One | 61.90% | |||||||||
Year Two | 29.50% | |||||||||
Year Three | 0.60% | |||||||||
Year Four | 0.00% | |||||||||
Year Five | 0.00% | |||||||||
Year Six | 0.00% | |||||||||
Year Seven | 0.00% | |||||||||
Year Eight | 0.00% | |||||||||
Year Nine | 0.00% | |||||||||
Year Ten | 0.00% | |||||||||
Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 1,279.9 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 1,171.4 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 0 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 108.5 | |||||||||
Year One | 47.40% | |||||||||
Year Two | 27.30% | |||||||||
Year Three | 9.90% | |||||||||
Year Four | 4.10% | |||||||||
Year Five | 1.80% | |||||||||
Year Six | 0.70% | |||||||||
Year Seven | 0.20% | |||||||||
Year Eight | 0.10% | |||||||||
Year Nine | 0.00% | |||||||||
Year Ten | 0.00% | |||||||||
Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 918.2 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 558.3 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | 0.1 | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 360 | |||||||||
Year One | 11.40% | |||||||||
Year Two | 16.20% | |||||||||
Year Three | 12.90% | |||||||||
Year Four | 9.70% | |||||||||
Year Five | 6.80% | |||||||||
Year Six | 2.50% | |||||||||
Year Seven | 0.80% | |||||||||
Year Eight | 0.10% | |||||||||
Year Nine | 0.20% | |||||||||
Year Ten | 0.20% | |||||||||
Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 294.8 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 247.1 | |||||||||
All outstanding liabilities before 2007, net of reinsurance | (0.3) | |||||||||
Liabilities for claims and claim adjustment expenses, net of reinsurance | $ 47.4 | |||||||||
Year One | 30.40% | |||||||||
Year Two | 37.00% | |||||||||
Year Three | 10.80% | |||||||||
Year Four | 3.30% | |||||||||
Year Five | 1.10% | |||||||||
Year Six | 0.90% | |||||||||
Year Seven | 0.20% | |||||||||
Year Eight | 0.00% | |||||||||
Year Nine | 0.10% | |||||||||
Year Ten | 0.00% | |||||||||
Accident Year 2007 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 8.6 | $ 8.6 | $ 8.6 | $ 8.7 | $ 7.7 | $ 7.6 | $ 7.6 | $ 9.1 | $ 11.1 | $ 12 |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 250 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 8.6 | 8.6 | 8.6 | 8.7 | 7 | 7 | 7 | 6.8 | 3.7 | 1.8 |
Accident Year 2007 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 56.5 | 57.1 | 58.3 | 61.8 | 70.1 | 70.5 | 90.7 | 97.3 | 120.2 | 138.3 |
Total IBNR plus expected development on reported claims | $ 2.5 | |||||||||
Cumulative number of Reported Claims | item | 1,236 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 54 | 54 | 53.6 | 51.9 | 50.7 | 44.4 | 41.7 | 32.4 | 24.8 | 6.8 |
Accident Year 2007 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 26.8 | 26.7 | 26.8 |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,073 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.6 | 28.4 | 19.8 |
Accident Year 2007 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 94.9 | 95.1 | 95.1 | 95.1 | 95.3 | 95.1 | 94.9 | 101.3 | 104.8 | 110 |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 4,828 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 94.6 | 94.5 | 94.5 | 94.2 | 93.4 | 91.7 | 87.6 | 82.7 | 70.9 | 42.2 |
Accident Year 2007 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 36.9 | 37.1 | 36 | 35.1 | 35.1 | 34.9 | 34 | 21.7 | 24.3 | 24.9 |
Total IBNR plus expected development on reported claims | $ 0.3 | |||||||||
Cumulative number of Reported Claims | item | 1,770 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 35.9 | 34.3 | 32.9 | 32.4 | 29.9 | 27.9 | 13.8 | 7.9 | 5.5 | 2.8 |
Accident Year 2007 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 4.4 | 4.4 | 4.4 | 4.4 | 4.4 | 4.4 | 4.4 | 4.5 | 4.6 | 4.3 |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 291 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 4.4 | 4.4 | 4.4 | 4.3 | 4.3 | 4.3 | 4.3 | 4.3 | 4 | 1.2 |
Accident Year 2008 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 26.8 | 26.8 | 26.8 | 26.8 | 26.6 | 25.6 | 25.4 | 29.2 | 31.3 | |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 3,466 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 26.8 | 26.8 | 26.8 | 26.8 | 26 | 25.5 | 25.2 | 23.5 | 15.5 | |
Accident Year 2008 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 96.8 | 97.3 | 95.3 | 95.5 | 98.3 | 100.8 | 118.2 | 128.6 | 145.6 | |
Total IBNR plus expected development on reported claims | $ 3.3 | |||||||||
Cumulative number of Reported Claims | item | 2,199 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 91.5 | 88.1 | 85.3 | 83.1 | 77.6 | 65.4 | 50.8 | 32.3 | 8.8 | |
Accident Year 2008 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.5 | 31.7 | |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,192 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.2 | 31.1 | 21.3 | |
Accident Year 2008 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 129.7 | 129.8 | 130 | 132.7 | 132 | 129.3 | 129.6 | 137.6 | 147.3 | |
Total IBNR plus expected development on reported claims | $ 0.1 | |||||||||
Cumulative number of Reported Claims | item | 6,603 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 129.3 | 129.3 | 129.2 | 129.1 | 129.5 | 123.4 | 116.8 | 101.4 | 62.5 | |
Accident Year 2008 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 22.1 | 22.2 | 23.7 | 25.2 | 25.8 | 26.4 | 30.4 | 26.2 | 26.3 | |
Total IBNR plus expected development on reported claims | $ 0.5 | |||||||||
Cumulative number of Reported Claims | item | 1,835 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 20.9 | 20.8 | 21.2 | 19.9 | 17.3 | 14.2 | 11.5 | 6.9 | 3.2 | |
Accident Year 2008 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 12.3 | 12.1 | 12.1 | 11.8 | 11.9 | 11.9 | 12.2 | 10.8 | 10.4 | |
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 975 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12.2 | 12 | 12 | 11.7 | 11.8 | 11.7 | 11.1 | 9 | 3.8 | |
Accident Year 2009 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51.6 | 52.5 | 52.6 | 52.9 | 53.3 | 52.9 | 52.1 | 55.2 | ||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 8,768 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 51.6 | 51.6 | 51.6 | 51.9 | 51.9 | 51.2 | 47.3 | 41.5 | ||
Accident Year 2009 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 195.5 | 195 | 194.9 | 192 | 193.2 | 194.9 | 186.2 | 169.5 | ||
Total IBNR plus expected development on reported claims | $ 4.9 | |||||||||
Cumulative number of Reported Claims | item | 4,002 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 187.8 | 178.3 | 169.9 | 161.4 | 147.8 | 124 | 81.8 | 26.5 | ||
Accident Year 2009 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 30.9 | 30.9 | 30.9 | 30.9 | 30.8 | 31.3 | 31.4 | 33.8 | ||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,138 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 30.9 | 30.9 | 30.9 | 30.9 | 30.9 | 30.8 | 30.8 | 21.6 | ||
Accident Year 2009 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 118.6 | 118.7 | 118.6 | 118.8 | 117.9 | 118.2 | 118.6 | 124.5 | ||
Total IBNR plus expected development on reported claims | $ 0.1 | |||||||||
Cumulative number of Reported Claims | item | 6,718 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 118.4 | 118 | 117.2 | 115.5 | 111 | 105.4 | 85.9 | 50.4 | ||
Accident Year 2009 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 51 | 51.6 | 53.6 | 54.8 | 49.6 | 51.5 | 51.1 | 51 | ||
Total IBNR plus expected development on reported claims | $ 1 | |||||||||
Cumulative number of Reported Claims | item | 2,982 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 47.4 | 46.3 | 46.3 | 42.9 | 34.5 | 25 | 16.6 | 5.1 | ||
Accident Year 2009 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 21.7 | 21.5 | 21.4 | 20.9 | 19.3 | 19 | 19.2 | 19.1 | ||
Total IBNR plus expected development on reported claims | $ 0.2 | |||||||||
Cumulative number of Reported Claims | item | 1,763 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 21.4 | 21.4 | 21.2 | 19.2 | 18.3 | 17.7 | 14.6 | 6.3 | ||
Accident Year 2010 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 55.8 | 55.8 | 55.9 | 56.7 | 55.6 | 49.5 | 51 | |||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 10,170 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 55.7 | 55.7 | 55.7 | 55.2 | 53.3 | 47.9 | 43.1 | |||
Accident Year 2010 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 240 | 234.9 | 232.3 | 225 | 226.2 | 225.4 | 211.5 | |||
Total IBNR plus expected development on reported claims | $ 7.8 | |||||||||
Cumulative number of Reported Claims | item | 6,029 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 220.3 | 213.6 | 196.3 | 180.5 | 157.8 | 107 | 32 | |||
Accident Year 2010 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 32.5 | 32.5 | 32.5 | 32.6 | 32.5 | 34.3 | 34.7 | |||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,182 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 32.5 | 32.5 | 32.5 | 32.5 | 32.5 | 32.4 | 22.4 | |||
Accident Year 2010 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 131.2 | 131.4 | 129.7 | 130 | 127.2 | 131.5 | 131.4 | |||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 8,617 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 130.8 | 129.3 | 125.9 | 122.8 | 118.2 | 106.2 | 69 | |||
Accident Year 2010 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 77.2 | 75.5 | 73.3 | 69.4 | 69.3 | 72.4 | 80.8 | |||
Total IBNR plus expected development on reported claims | $ 3.5 | |||||||||
Cumulative number of Reported Claims | item | 4,791 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 68.9 | 65.3 | 57.5 | 51.4 | 37.3 | 21.1 | 8.7 | |||
Accident Year 2010 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 28.4 | 28.4 | 28.2 | 27.9 | 27.1 | 26.6 | 25.6 | |||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 2,449 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 28.1 | 28 | 27.6 | 26.9 | 25.1 | 22.9 | 8.3 | |||
Accident Year 2011 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 60.7 | 60.8 | 60.6 | 60.2 | 59.8 | 58.7 | ||||
Total IBNR plus expected development on reported claims | $ 0.2 | |||||||||
Cumulative number of Reported Claims | item | 11,121 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 60.5 | 60.4 | 60.1 | 59.7 | 59 | 51.8 | ||||
Accident Year 2011 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 214.9 | 214.8 | 214.2 | 205.4 | 189.8 | 194.9 | ||||
Total IBNR plus expected development on reported claims | $ 9.4 | |||||||||
Cumulative number of Reported Claims | item | 6,661 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 192.5 | 186.2 | 163.7 | 131.3 | 88.9 | 25.8 | ||||
Accident Year 2011 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 35.4 | 35.4 | 35.4 | 35.4 | 35.5 | 33.2 | ||||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,306 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 35.4 | 35.4 | 35.4 | 35.4 | 35.2 | 25.2 | ||||
Accident Year 2011 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 142.5 | 143.2 | 143.5 | 141.1 | 141.5 | 138.5 | ||||
Total IBNR plus expected development on reported claims | $ 0.3 | |||||||||
Cumulative number of Reported Claims | item | 9,704 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 141.4 | 139.5 | 138 | 130.7 | 117.4 | 72.5 | ||||
Accident Year 2011 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 112.2 | 111.8 | 100.5 | 90.2 | 87.5 | 88.1 | ||||
Total IBNR plus expected development on reported claims | $ 3.8 | |||||||||
Cumulative number of Reported Claims | item | 5,254 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 96.4 | 88.9 | 69.8 | 53.7 | 34.2 | 11.1 | ||||
Accident Year 2011 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 38.2 | 38.2 | 38.5 | 37.7 | 36 | 35.1 | ||||
Total IBNR plus expected development on reported claims | $ 0.2 | |||||||||
Cumulative number of Reported Claims | item | 3,638 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 37.3 | 37.2 | 36.5 | 34.6 | 29.4 | 13.5 | ||||
Accident Year 2012 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 92.2 | 92.2 | 92.9 | 86.7 | 79.9 | |||||
Total IBNR plus expected development on reported claims | $ 0.2 | |||||||||
Cumulative number of Reported Claims | item | 12,405 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 78.8 | 79 | 78.3 | 72.5 | 58.8 | |||||
Accident Year 2012 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 249.4 | 248.8 | 246.1 | 220.1 | 213.5 | |||||
Total IBNR plus expected development on reported claims | $ 14.4 | |||||||||
Cumulative number of Reported Claims | item | 6,794 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 219.8 | 193.6 | 157.7 | 86.7 | 25.8 | |||||
Accident Year 2012 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 37 | 36.9 | 36.9 | 36.9 | 36.6 | |||||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,324 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 37 | 36.9 | 36.9 | 36.8 | 26.1 | |||||
Accident Year 2012 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 130.1 | 130.4 | 126.7 | 123.8 | 126.9 | |||||
Total IBNR plus expected development on reported claims | $ 0.8 | |||||||||
Cumulative number of Reported Claims | item | 9,697 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 131.9 | 128.5 | 116.4 | 103.1 | 64.2 | |||||
Accident Year 2012 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 98.8 | 101.8 | 102 | 103.4 | 118.8 | |||||
Total IBNR plus expected development on reported claims | $ 7.9 | |||||||||
Cumulative number of Reported Claims | item | 6,298 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 79.7 | 67.8 | 50.6 | 31.9 | 12.9 | |||||
Accident Year 2012 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 41.6 | 41.1 | 40.1 | 39.6 | 42 | |||||
Total IBNR plus expected development on reported claims | $ 0.3 | |||||||||
Cumulative number of Reported Claims | item | 3,861 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39.1 | 38.3 | 35.8 | 30.7 | 13.2 | |||||
Accident Year 2013 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 27.7 | 27.6 | 27.6 | 36.4 | ||||||
Total IBNR plus expected development on reported claims | $ 0.3 | |||||||||
Cumulative number of Reported Claims | item | 5,267 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 27.4 | 27.1 | 26.9 | 24.3 | ||||||
Accident Year 2013 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 247.9 | 229.6 | 233.1 | 205.2 | ||||||
Total IBNR plus expected development on reported claims | $ 20.3 | |||||||||
Cumulative number of Reported Claims | item | 5,866 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 194.2 | 143.1 | 86.3 | 26.4 | ||||||
Accident Year 2013 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 39.2 | 39.2 | 40.6 | 39.6 | ||||||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 5,510 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39.2 | 39.2 | 39 | 27.4 | ||||||
Accident Year 2013 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 143.6 | 142.9 | 127 | 125.1 | ||||||
Total IBNR plus expected development on reported claims | $ 1.9 | |||||||||
Cumulative number of Reported Claims | item | 8,085 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 137.7 | 126.1 | 101.5 | 59.8 | ||||||
Accident Year 2013 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 138.2 | 133.6 | 131.5 | 121.9 | ||||||
Total IBNR plus expected development on reported claims | $ 18 | |||||||||
Cumulative number of Reported Claims | item | 7,107 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 96.6 | 72.7 | 45.5 | 18.6 | ||||||
Accident Year 2013 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 42.5 | 42.2 | 41.2 | 41.1 | ||||||
Total IBNR plus expected development on reported claims | $ 0.7 | |||||||||
Cumulative number of Reported Claims | item | 4,245 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39.6 | 37.2 | 29.3 | 13 | ||||||
Accident Year 2014 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31.6 | 32.1 | 37.5 | |||||||
Total IBNR plus expected development on reported claims | $ 0.4 | |||||||||
Cumulative number of Reported Claims | item | 1,227 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 31.2 | 28.2 | 19.8 | |||||||
Accident Year 2014 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 258.9 | 235.9 | 240.5 | |||||||
Total IBNR plus expected development on reported claims | $ 44.4 | |||||||||
Cumulative number of Reported Claims | item | 6,504 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 156.7 | 95.2 | 34.3 | |||||||
Accident Year 2014 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 92.9 | 90.8 | 96.6 | |||||||
Total IBNR plus expected development on reported claims | $ 0 | |||||||||
Cumulative number of Reported Claims | item | 9,971 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 90.3 | 88.5 | 46.2 | |||||||
Accident Year 2014 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 130.1 | 123.5 | 123.9 | |||||||
Total IBNR plus expected development on reported claims | $ 3.9 | |||||||||
Cumulative number of Reported Claims | item | 8,352 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 111.6 | 94.6 | 56.5 | |||||||
Accident Year 2014 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 124.2 | 127.4 | 135.6 | |||||||
Total IBNR plus expected development on reported claims | $ 35.7 | |||||||||
Cumulative number of Reported Claims | item | 7,633 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 61.4 | 40.2 | 16.6 | |||||||
Accident Year 2014 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 40.6 | 40.4 | 42.6 | |||||||
Total IBNR plus expected development on reported claims | $ 1.9 | |||||||||
Cumulative number of Reported Claims | item | 3,497 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 34.8 | 28.9 | 12.6 | |||||||
Accident Year 2015 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 25.7 | 28.3 | ||||||||
Total IBNR plus expected development on reported claims | $ 1.1 | |||||||||
Cumulative number of Reported Claims | item | 2,186 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 22.1 | 15 | ||||||||
Accident Year 2015 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 213.4 | 206.9 | ||||||||
Total IBNR plus expected development on reported claims | $ 78.5 | |||||||||
Cumulative number of Reported Claims | item | 9,710 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 78.4 | 19.9 | ||||||||
Accident Year 2015 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 73.2 | 75.5 | ||||||||
Total IBNR plus expected development on reported claims | $ 1.8 | |||||||||
Cumulative number of Reported Claims | item | 10,704 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 70.6 | 41.7 | ||||||||
Accident Year 2015 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 138.9 | 142.3 | ||||||||
Total IBNR plus expected development on reported claims | $ 10.2 | |||||||||
Cumulative number of Reported Claims | item | 8,607 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 114.4 | 68.6 | ||||||||
Accident Year 2015 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 127.7 | 146.3 | ||||||||
Total IBNR plus expected development on reported claims | $ 61.8 | |||||||||
Cumulative number of Reported Claims | item | 7,315 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 39.3 | 13.6 | ||||||||
Accident Year 2015 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 31.9 | 46.6 | ||||||||
Total IBNR plus expected development on reported claims | $ 4.9 | |||||||||
Cumulative number of Reported Claims | item | 3,301 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 22.2 | 9.8 | ||||||||
Accident Year 2016 | Specialty Products | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 24.5 | |||||||||
Total IBNR plus expected development on reported claims | $ 5.2 | |||||||||
Cumulative number of Reported Claims | item | 1,825 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 12.3 | |||||||||
Accident Year 2016 | Specialty Products | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 202.8 | |||||||||
Total IBNR plus expected development on reported claims | $ 142.8 | |||||||||
Cumulative number of Reported Claims | item | 9,093 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 16.5 | |||||||||
Accident Year 2016 | Specialty Products | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 77.1 | |||||||||
Total IBNR plus expected development on reported claims | $ 33.8 | |||||||||
Cumulative number of Reported Claims | item | 4,306 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 44.2 | |||||||||
Accident Year 2016 | Specialty Industries | Property | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 120.3 | |||||||||
Total IBNR plus expected development on reported claims | $ 32.8 | |||||||||
Cumulative number of Reported Claims | item | 7,429 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 61.3 | |||||||||
Accident Year 2016 | Specialty Industries | Casualty | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 129.9 | |||||||||
Total IBNR plus expected development on reported claims | $ 98.4 | |||||||||
Cumulative number of Reported Claims | item | 5,701 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 11.8 | |||||||||
Accident Year 2016 | Specialty Industries | Other | ||||||||||
Claims Development [Line Items] | ||||||||||
Incurred Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | 33.2 | |||||||||
Total IBNR plus expected development on reported claims | $ 19.4 | |||||||||
Cumulative number of Reported Claims | item | 2,222 | |||||||||
Cumulative Paid Claims and Allocated Claim Adjustment Expenses, Net of Reinsurance | $ 8 |
Reinsurance - Effects of Reinsu
Reinsurance - Effects of Reinsurance (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jul. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Direct | $ 1,193.3 | $ 1,279.9 | $ 1,257.5 | |
Assumed | 28 | 36 | 65.9 | |
Gross written premiums | 1,221.3 | 1,315.9 | 1,323.4 | |
Ceded | (120.6) | (179.3) | (106.5) | |
Net written premiums | 1,100.7 | 1,136.6 | 1,216.9 | |
Direct | 1,177 | 1,298 | 1,209.1 | |
Assumed | 29.4 | 45.9 | 70.9 | |
Gross earned premiums | 1,206.4 | 1,343.9 | 1,280 | |
Ceded | (105.8) | (167.7) | (102.9) | |
Net earned premiums | 1,100.6 | 1,176.2 | 1,177.1 | |
Direct | 679.5 | 783 | 778.7 | |
Assumed | 21.2 | 55.7 | 115.7 | |
Gross loss and LAE | 700.7 | 838.7 | 894.4 | |
Ceded | (44.7) | (138) | (79.3) | |
Net loss and LAE | $ 656 | 700.7 | $ 815.1 | |
Crop | ||||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||||
Ceded | (33.3) | |||
Ceded | (33.3) | |||
Ceded | $ (33.4) | |||
Quota share reinsurance agreement percentage | 100.00% | 100.00% |
Reinsurance - Reinsurance Treat
Reinsurance - Reinsurance Treaties (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Jul. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance recoverable on paid losses | $ 6.6 | |||
Reinsurance recoverable on unpaid losses | 172.9 | $ 186 | $ 161.6 | |
Corporate Property Catastrophe - Property and Inland Marine | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 110 | |||
Corporate Property Catastrophe - Property and Inland Marine | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 20 | |||
Corporate Property Catastrophe - Property and Inland Marine | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 20 | |||
Property Per Risk - Property and Inland Marine | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 100 | |||
Property Per Risk - Property and Inland Marine | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Property Per Risk - Property and Inland Marine | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Specialty Property - Excess and Surplus Property Catastrophe | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 34 | |||
Specialty Property - Excess and Surplus Property Catastrophe | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 6 | |||
Specialty Property - Excess and Surplus Property Catastrophe | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 6 | |||
Medical Excess - HMO/Provider Excess | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 5 | |||
Medical Excess - HMO/Provider Excess | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 5 | |||
Ocean and Inland Marine | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 57.5 | |||
Ocean and Inland Marine | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 2.5 | |||
Ocean and Inland Marine | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 7 | |||
Surety | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 45 | |||
Surety | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 5 | |||
Surety | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 5 | |||
Film Completion Bonds | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 38 | |||
Film Completion Bonds | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 2 | |||
Film Completion Bonds | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 2 | |||
Casualty Clash/Workers Compensation Catastrophe | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 34 | |||
Casualty Clash/Workers Compensation Catastrophe | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 6 | |||
Casualty Clash/Workers Compensation Catastrophe | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 6 | |||
Workers Compensation Catastrophe | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 20 | |||
Workers Compensation Catastrophe | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 40 | |||
Workers Compensation Catastrophe | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 6 | |||
Financial Institutions - Professional Liability | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 10 | |||
Financial Institutions - Professional Liability | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 5 | |||
Casualty Per Policy - Various lines | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 8 | |||
Casualty Per Policy - Various lines | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Casualty Per Policy - Various lines | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Workers Compensation Per Occurrence | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 8 | |||
Workers Compensation Per Occurrence | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 2 | |||
Workers Compensation Per Occurrence | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 2 | |||
Healthcare Professional Liability | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 7 | |||
Healthcare Professional Liability | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Healthcare Professional Liability | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Property Catastrophe Reinsurance | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 20 | |||
Property Per-Risk, Acts of Terrorism | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | $ 140 | |||
Reinsurance reinsured risk, percentage | 83.00% | |||
Terrorism Risk Insurance Program, initial annual aggregate industry loss minimum in order for a loss to be covered | $ 140 | |||
Reinsurance Program Reinsured Terrorism Losses | 20 | |||
Reinsurance Retention Policy, Amount Retained, Limit in 2020 | $ 200 | |||
Co-Participation Percentage | 17.00% | |||
Co-Participation Percentage, Annual Increase | 1.00% | |||
Reinsurance Retention Policy, Reinsured Risk, Percentage, Minimum in 2020 | 80.00% | |||
Property Per-Risk, Acts of Terrorism | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Co-Participation Percentage | 20.00% | |||
Reinsurance program reinsured losses | $ 100,000 | |||
Layer One | Property Catastrophe Reinsurance | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance reinsured risk, percentage | 100.00% | |||
Layer One | Property Catastrophe Reinsurance | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | $ 110 | |||
Layer Two | Casualty Per Policy - Various lines | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 10 | |||
Layer Two | Casualty Per Policy - Various lines | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 11 | |||
Layer Two | Casualty Per Policy - Various lines | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Layer Two | Healthcare Professional Liability | ||||
Reinsurance Retention Policy [Line Items] | ||||
Per risk limit purchased | 10 | |||
Layer Two | Healthcare Professional Liability | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 10 | |||
Layer Two | Healthcare Professional Liability | Maximum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | 3 | |||
Layer Three [Member] | Property Catastrophe Reinsurance | Minimum | ||||
Reinsurance Retention Policy [Line Items] | ||||
Reinsurance amount retained | $ 130 | |||
Crop | ||||
Reinsurance Retention Policy [Line Items] | ||||
Quota share reinsurance agreement percentage | 100.00% | 100.00% |
Reinsurance - Credit Risk (Deta
Reinsurance - Credit Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Reinsurance recoverables | $ 179.5 | $ 193.5 |
% of total | 100.00% | |
A plus or better | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Reinsurance recoverables | $ 73.9 | |
% of total | 41.00% | |
A minus to A | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Reinsurance recoverables | $ 79.7 | |
% of total | 44.00% | |
B, Not Rated and Other | ||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | ||
Reinsurance recoverables | $ 25.9 | |
% of total | 15.00% |
Investment Securities (Net inve
Investment Securities (Net investment income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross investment income | $ 55.4 | $ 50.9 | $ 50.4 |
Less investment expenses | (4.8) | (5) | (7) |
Net investment income, pre-tax | 50.6 | 45.9 | 43.4 |
Fixed maturity investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross investment income | 48.7 | 43.8 | 41.8 |
Short-term investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross investment income | 0.2 | 0 | 0 |
Common equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross investment income | 3.5 | 6.1 | 6.5 |
Other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Gross investment income | $ 3 | $ 1 | $ 2.1 |
Investment Securities (Net real
Investment Securities (Net realized investment gains (losses)) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net realized investment gains, pre-tax | $ 10.3 | $ 47.2 | $ 69.7 |
Trading Securities, Tax Realized Holding Gain (Loss) on Investments | (4.1) | (9.1) | (21) |
Trading Securities, Tax Realized Holding Gain (Loss) on Investments, After Tax | 6.2 | 38.1 | 48.7 |
Trading Securities, Realized Gain | 31.7 | 64.2 | 75 |
Trading Securities, Realized Loss | 21.4 | 17 | 5.3 |
Accounts receivable on unsettled investment sales | 1.4 | 30.5 | |
Fixed maturity investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net realized investment gains, pre-tax | (0.1) | 2 | 6.6 |
Short-term investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net realized investment gains, pre-tax | 0 | 0 | 0 |
Common equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net realized investment gains, pre-tax | 12.2 | 33.8 | 53.9 |
Other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Net realized investment gains, pre-tax | $ (1.8) | $ 11.4 | $ 9.2 |
Investment Securities (Changes
Investment Securities (Changes in fair value) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Total net changes in fair value reflected in revenues | |||
Changes in net unrealized investment gains (losses) | $ 27.4 | $ (82.5) | $ (28.9) |
Changes in net foreign currency translation gains (losses) | 0 | 0.2 | (0.4) |
Total net changes in fair value reflected in revenues | 27.4 | (82.3) | (29.3) |
Fixed maturity investments | |||
Total net changes in fair value reflected in revenues | |||
Changes in net unrealized investment gains (losses) | 2.5 | (15.7) | 1.9 |
Changes in net foreign currency translation gains (losses) | 0 | 0 | 0 |
Total net changes in fair value reflected in revenues | 2.5 | (15.7) | 1.9 |
Short-term investments | |||
Total net changes in fair value reflected in revenues | |||
Changes in net unrealized investment gains (losses) | 0 | 0 | 0 |
Changes in net foreign currency translation gains (losses) | 0 | 0 | (0.1) |
Total net changes in fair value reflected in revenues | 0 | 0 | (0.1) |
Common equity securities | |||
Total net changes in fair value reflected in revenues | |||
Changes in net unrealized investment gains (losses) | 2.7 | (33.2) | (32.6) |
Changes in net foreign currency translation gains (losses) | 0 | 0.2 | (0.3) |
Total net changes in fair value reflected in revenues | 2.7 | (33) | (32.9) |
Other investments | |||
Total net changes in fair value reflected in revenues | |||
Changes in net unrealized investment gains (losses) | 22.2 | (33.6) | 1.8 |
Changes in net foreign currency translation gains (losses) | 0 | 0 | 0 |
Total net changes in fair value reflected in revenues | $ 22.2 | $ (33.6) | $ 1.8 |
Investment Securities (Net unre
Investment Securities (Net unrealized investment gains and losses) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Investments [Abstract] | ||
Gross unrealized gains | $ 52.7 | $ 46.5 |
Gross unrealized losses | (12) | (33.2) |
Trading Securities Unrealized Holding Gains and Losses, Pre-Tax | 40.7 | 13.3 |
Trading Securities, Unrealized Gains and Losses, Tax | (14) | (6.5) |
Unrealized gains (losses) on trading securities, net of tax | $ 26.7 | $ 6.8 |
Investment Securities (Fixed ma
Investment Securities (Fixed maturity investment gains and losses) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Gross unrealized gains | $ 52.7 | $ 46.5 |
Gross unrealized losses | (12) | (33.2) |
Carrying value | 2,169.1 | 2,080.5 |
U.S. Government | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 169.6 | 85.4 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (2.3) | (0.1) |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 167.3 | 85.3 |
Debt securities issued by corporations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 760.6 | 810.8 |
Gross unrealized gains | 6.2 | 4.1 |
Gross unrealized losses | (3.7) | (4.5) |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 763.1 | 810.4 |
Municipal obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 70.1 | 67.7 |
Gross unrealized gains | 0.8 | 1.5 |
Gross unrealized losses | (0.4) | (0.2) |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 70.5 | 69 |
Mortgage and asset-backed securities | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 1,154.8 | 1,035.1 |
Gross unrealized gains | 1.8 | 1.3 |
Gross unrealized losses | (3.5) | (4.5) |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 1,153.1 | 1,031.9 |
Foreign government obligations | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 1 | 1 |
Gross unrealized gains | 0.2 | 0.2 |
Gross unrealized losses | 0 | 0 |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 1.2 | 1.2 |
Preferred stocks | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 8.3 | 78.3 |
Gross unrealized gains | 5.6 | 4.4 |
Gross unrealized losses | 0 | 0 |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | 13.9 | 82.7 |
Total fixed maturity investments | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Cost or amortized cost | 2,164.4 | 2,078.3 |
Gross unrealized gains | 14.6 | 11.5 |
Gross unrealized losses | (9.9) | (9.3) |
Net unrealized foreign currency gain (losses) | 0 | 0 |
Carrying value | $ 2,169.1 | $ 2,080.5 |
Investment Securities (Cost or
Investment Securities (Cost or amortized cost fixed maturity investments) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Trading Securities by Maturity Cost or Amortized Cost [Abstract] | |
Total | $ 2,164.4 |
Trading Securities by Maturity Fair Value [Abstract] | |
Total | 2,169.1 |
Fixed Maturities and Convertible Fixed Maturities Excluding Mortgage backed securities, Asset backed securities and Preferred Stock [Member] | |
Trading Securities by Maturity Cost or Amortized Cost [Abstract] | |
Due in one year or less | 91 |
Due after one year through five years | 782.9 |
Due after five years through ten years | 110.4 |
Due after ten years | 17 |
Trading Securities by Maturity Fair Value [Abstract] | |
Due in one year or less | 91.4 |
Due after one year through five years | 784.3 |
Due after five years through ten years | 109.5 |
Due after ten years | 16.9 |
Mortgage and asset-backed securities | |
Trading Securities by Maturity Cost or Amortized Cost [Abstract] | |
Without Single Maturity Date | 1,154.8 |
Trading Securities by Maturity Fair Value [Abstract] | |
Without Single Maturity Date | 1,153.1 |
Preferred stocks | |
Trading Securities by Maturity Cost or Amortized Cost [Abstract] | |
Without Single Maturity Date | 8.3 |
Trading Securities by Maturity Fair Value [Abstract] | |
Without Single Maturity Date | $ 13.9 |
Investment Securities (Fixed 64
Investment Securities (Fixed maturity investments and other investments) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | $ 2,496 | $ 2,507.5 | $ 2,306.8 |
Gross unrealized gains | 52.7 | 46.5 | |
Gross unrealized investment losses | (12) | (33.2) | |
Carrying value | 2,169.1 | 2,080.5 | |
Proceeds from Sale, Maturity and Collection of Long-term Investments | 1,681.3 | 1,371.5 | $ 2,585.1 |
Assets Held by Insurance Regulators | 87.5 | 82.1 | |
Unrestricted collateral from customers | 153 | 137.7 | |
Fixed maturity investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 2,164.4 | 2,078.3 | |
Gross unrealized gains | 14.6 | 11.5 | |
Gross unrealized investment losses | (9.9) | (9.3) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 2,169.1 | 2,080.5 | |
Preferred stocks | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 8.3 | 78.3 | |
Gross unrealized gains | 5.6 | 4.4 | |
Gross unrealized investment losses | 0 | 0 | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 13.9 | 82.7 | |
Mortgage and asset-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | 1,153.1 | 1,031.9 | |
Cost or amortized cost | 1,154.8 | 1,035.1 | |
Gross unrealized gains | 1.8 | 1.3 | |
Gross unrealized investment losses | (3.5) | (4.5) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 1,153.1 | 1,031.9 | |
Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | 763.1 | 810.4 | |
Cost or amortized cost | 760.6 | 810.8 | |
Gross unrealized gains | 6.2 | 4.1 | |
Gross unrealized investment losses | (3.7) | (4.5) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 763.1 | 810.4 | |
U.S. Government | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 169.6 | 85.4 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized investment losses | (2.3) | (0.1) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 167.3 | 85.3 | |
Common equity securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 182.3 | 295 | |
Gross unrealized gains | 6.9 | 12.7 | |
Gross unrealized investment losses | (0.5) | (9) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 188.7 | 298.7 | |
Other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 120.9 | 135.6 | |
Gross unrealized gains | 31.2 | 22.3 | |
Gross unrealized investment losses | (1.6) | (14.9) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 150.5 | 143 | |
Total common equity securities and other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 303.2 | 430.6 | |
Gross unrealized gains | 38.1 | 35 | |
Gross unrealized investment losses | (2.1) | (23.9) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 339.2 | 441.7 | |
Municipal obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 70.1 | 67.7 | |
Gross unrealized gains | 0.8 | 1.5 | |
Gross unrealized investment losses | (0.4) | (0.2) | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 70.5 | 69 | |
Foreign government obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Cost or amortized cost | 1 | 1 | |
Gross unrealized gains | 0.2 | 0.2 | |
Gross unrealized investment losses | 0 | 0 | |
Net unrealized foreign currency gains (losses) | 0 | 0 | |
Carrying value | 1.2 | 1.2 | |
Other Entities [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investments Held in Trusts | 2.7 | 2.2 | |
Star and Shield Insurance Exchange [Member] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Investments Held in Trusts | 1.5 | 5.4 | |
A | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | 169.1 | 265.4 | |
AA | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | 63.7 | 42.7 | |
BBB | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Fair value of investments | $ 450.8 | $ 502.3 |
Investment Securities (Fair val
Investment Securities (Fair value measurements) (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)fund | Dec. 31, 2015USD ($)fund | Dec. 31, 2014USD ($) | Dec. 23, 2014USD ($) | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Percentage of fair value investments using observable inputs | 95.00% | 92.00% | ||
Fair value of investments | $ 2,496 | $ 2,507.5 | $ 2,306.8 | |
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | $ 150.5 | $ 143 | ||
Percentage of private preferred stock | 85.00% | |||
Minimum percentage of variation from expected price required to treat prices of investments provided by pricing services as outliers | 5.00% | |||
Minimum variation from expected price require to treat prices of investments provided by pricing services as outliers | $ 1 | |||
Other investments at fair value | 138.2 | $ 128.3 | ||
NAV Instruments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 52 | 62.5 | 102.4 | |
Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 333.1 | 363.3 | 358.7 | |
Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | $ 2,024.7 | $ 1,945.9 | 1,692.1 | |
Hedge funds | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Number of Investments | fund | 4 | 4 | ||
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | $ 2.4 | |||
Other investments at fair value | 18.4 | $ 16.4 | ||
Private equity funds | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Net assets fair value adjustment | $ (5) | $ (2.4) | ||
Number of Investments | fund | 17 | 17 | ||
Other investments at fair value | $ 33.6 | $ 46.1 | ||
Hedge funds and private equity funds | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other investments at fair value | 52 | 62.5 | ||
Hedge funds and private equity funds | NAV Instruments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 52 | 62.5 | ||
Community Reinvestment Vehicle | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | 14.3 | 14.3 | ||
Single Fund | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | 15 | 12.9 | ||
Tax Development Fund [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | 12.3 | 14.7 | ||
Debt securities issued by corporations | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 763.1 | 810.4 | ||
Mortgage and asset-backed securities | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1,153.1 | 1,031.9 | ||
Mortgage and asset-backed securities | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1,153.1 | 1,031.9 | ||
Mortgage and asset-backed securities | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Fixed maturity investments | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | $ 0 | $ 70 | 74 | |
Other investments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Investments, Percent of Total | 6.00% | 5.00% | ||
Other investments | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | $ 86.2 | $ 65.8 | $ 79.6 | |
Surplus Notes | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Other investments, at fair value (amortized cost - $120.9 in 2016 and $135.6 in 2015) | $ 64.9 | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 71.9 | 51.5 | ||
Recurring basis | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 2,556.1 | 2,514.2 | ||
Recurring basis | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 445.2 | 432.5 | ||
Recurring basis | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 2,024.7 | 1,945.9 | ||
Recurring basis | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 86.2 | 135.8 | ||
Recurring basis | U.S. Government | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 167.3 | 85.3 | ||
Recurring basis | U.S. Government | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 167.3 | 85.3 | ||
Recurring basis | U.S. Government | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | U.S. Government | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 763.1 | 810.4 | ||
Recurring basis | Debt securities issued by corporations | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 763.1 | 810.4 | ||
Recurring basis | Debt securities issued by corporations | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Consumer | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 194.8 | 218.3 | ||
Recurring basis | Debt securities issued by corporations | Consumer | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Consumer | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 194.8 | 218.3 | ||
Recurring basis | Debt securities issued by corporations | Consumer | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Health care [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 129.2 | 136.2 | ||
Recurring basis | Debt securities issued by corporations | Health care [Member] | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Health care [Member] | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 129.2 | 136.2 | ||
Recurring basis | Debt securities issued by corporations | Health care [Member] | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Industrial | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 118.2 | 121.8 | ||
Recurring basis | Debt securities issued by corporations | Industrial | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Industrial | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 118.2 | 121.8 | ||
Recurring basis | Debt securities issued by corporations | Industrial | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Energy | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 96.3 | 116 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 96.3 | 116 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Communications | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 59.4 | 46 | ||
Recurring basis | Debt securities issued by corporations | Communications | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Communications | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 59.4 | 46 | ||
Recurring basis | Debt securities issued by corporations | Communications | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Energy | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 47.4 | 75.2 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 47.4 | 75.2 | ||
Recurring basis | Debt securities issued by corporations | Energy | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Basic materials | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 37.6 | 25.8 | ||
Recurring basis | Debt securities issued by corporations | Basic materials | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Basic materials | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 37.6 | 25.8 | ||
Recurring basis | Debt securities issued by corporations | Basic materials | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Utilities | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 39.5 | 42.2 | ||
Recurring basis | Debt securities issued by corporations | Utilities | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Utilities | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 39.5 | 42.2 | ||
Recurring basis | Debt securities issued by corporations | Utilities | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Technology | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 40.7 | 28.9 | ||
Recurring basis | Debt securities issued by corporations | Technology | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Debt securities issued by corporations | Technology | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 40.7 | 28.9 | ||
Recurring basis | Debt securities issued by corporations | Technology | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Municipal obligations | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 70.5 | 69 | ||
Recurring basis | Municipal obligations | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Municipal obligations | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 70.5 | 69 | ||
Recurring basis | Municipal obligations | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Mortgage and asset-backed securities | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1,153.1 | 1,031.9 | ||
Recurring basis | Mortgage and asset-backed securities | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Mortgage and asset-backed securities | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1,153.1 | 1,031.9 | ||
Recurring basis | Mortgage and asset-backed securities | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Preferred stocks | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 13.9 | 82.7 | ||
Recurring basis | Preferred stocks | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Preferred stocks | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 13.9 | 12.7 | ||
Recurring basis | Preferred stocks | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 70 | ||
Recurring basis | Fixed maturity investments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 2,169.1 | 2,080.5 | ||
Recurring basis | Fixed maturity investments | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 167.9 | 85.9 | ||
Recurring basis | Fixed maturity investments | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 2,001.2 | 1,924.6 | ||
Recurring basis | Fixed maturity investments | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 70 | ||
Recurring basis | Short-term investments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 112.1 | 69.2 | ||
Recurring basis | Short-term investments | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 112.1 | 69.2 | ||
Recurring basis | Short-term investments | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Short-term investments | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 188.7 | 298.7 | ||
Recurring basis | Common equity securities | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 165.2 | 277.4 | ||
Recurring basis | Common equity securities | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 23.5 | 21.3 | ||
Recurring basis | Common equity securities | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Consumer | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 4.3 | 38.2 | ||
Recurring basis | Common equity securities | Consumer | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 4.3 | 38.2 | ||
Recurring basis | Common equity securities | Consumer | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Consumer | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Health care [Member] | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 7 | 19.6 | ||
Recurring basis | Common equity securities | Health care [Member] | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 7 | 19.6 | ||
Recurring basis | Common equity securities | Health care [Member] | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Health care [Member] | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Industrial | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0.7 | 14.5 | ||
Recurring basis | Common equity securities | Industrial | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0.7 | 14.5 | ||
Recurring basis | Common equity securities | Industrial | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Industrial | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Energy | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.9 | 4.5 | ||
Recurring basis | Common equity securities | Energy | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.9 | 4.5 | ||
Recurring basis | Common equity securities | Energy | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Energy | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Communications | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.5 | 23.9 | ||
Recurring basis | Common equity securities | Communications | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.5 | 23.9 | ||
Recurring basis | Common equity securities | Communications | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Communications | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Energy | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1.2 | |||
Recurring basis | Common equity securities | Energy | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1.2 | |||
Recurring basis | Common equity securities | Energy | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | |||
Recurring basis | Common equity securities | Energy | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | |||
Recurring basis | Common equity securities | Exchange Traded Funds | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 164.4 | 183.3 | ||
Recurring basis | Common equity securities | Exchange Traded Funds | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 140.9 | 162 | ||
Recurring basis | Common equity securities | Exchange Traded Funds | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 23.5 | 21.3 | ||
Recurring basis | Common equity securities | Exchange Traded Funds | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Technology | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.7 | 14.7 | ||
Recurring basis | Common equity securities | Technology | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 3.7 | 14.7 | ||
Recurring basis | Common equity securities | Technology | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Common equity securities | Technology | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Other investments | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 86.2 | 65.8 | ||
Recurring basis | Other investments | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Other investments | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0 | 0 | ||
Recurring basis | Other investments | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 86.2 | 65.8 | ||
Recurring basis | Foreign government obligations | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 1.2 | 1.2 | ||
Recurring basis | Foreign government obligations | Level 1 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0.6 | 0.6 | ||
Recurring basis | Foreign government obligations | Level 2 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | 0.6 | 0.6 | ||
Recurring basis | Foreign government obligations | Level 3 Inputs | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Fair value of investments | $ 0 | $ 0 | ||
Preferred stocks | ||||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||||
Number of Investments | fund | 1 |
Investment Securities (Corporat
Investment Securities (Corporate debt securities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 2,496 | $ 2,507.5 | $ 2,306.8 |
Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 763.1 | 810.4 | |
AA | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 63.7 | 42.7 | |
A | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 169.1 | 265.4 | |
BBB | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 450.8 | 502.3 | |
BB | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 70.8 | 0 | |
B | Debt securities issued by corporations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 8.7 | $ 0 |
Investment Securities (Fair v67
Investment Securities (Fair value rollforward) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 23, 2014 | |
Investment securities | ||||
Other investments | $ 150.5 | $ 143 | ||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 2,507.5 | 2,306.8 | ||
Amortization/accretion | (13.3) | (13.2) | ||
Total net realized and unrealized gains (losses) | (37.7) | 35.1 | ||
Purchases | 1,656.9 | 1,661.1 | ||
Sales | (1,692.8) | (1,412.1) | ||
Non-Cash Acquisition (Disposition) Of Investments | 0 | 0 | $ 0 | |
Transfers in | 47.9 | 36.9 | ||
Transfers out | (47.9) | (36.9) | ||
Investments at fair value ending balance | 2,496 | 2,507.5 | 2,306.8 | |
NAV Instruments | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 62.5 | 102.4 | ||
Amortization/accretion | 0 | 0 | ||
Total net realized and unrealized gains (losses) | 0 | 8.7 | ||
Purchases | 1 | 2.7 | ||
Sales | (11.5) | (33.9) | ||
Transfers in | 0 | 0 | ||
Transfers out | 0 | 0 | ||
Investments at fair value ending balance | 52 | 62.5 | 102.4 | |
Level 1 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 363.3 | 358.7 | ||
Amortization/accretion | 0 | 0 | ||
Total net realized and unrealized gains (losses) | (9.2) | (1.3) | ||
Purchases | 496.9 | 638 | ||
Sales | (536.3) | (634.7) | ||
Transfers in | 0 | 0 | ||
Transfers out | 0 | 0 | ||
Investments at fair value ending balance | 333.1 | 363.3 | 358.7 | |
Level 2 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 1,945.9 | 1,692.1 | ||
Amortization/accretion | (13.3) | (13.2) | ||
Total net realized and unrealized gains (losses) | (8.2) | 12.7 | ||
Purchases | 1,111 | 985.7 | ||
Sales | (1,075) | (742.9) | ||
Transfers in | 47.9 | 36.9 | ||
Transfers out | 0 | 0 | ||
Investments at fair value ending balance | 2,024.7 | 1,945.9 | 1,692.1 | |
Fixed maturity investments | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 70 | 74 | ||
Amortization/accretion | 0 | 0 | ||
Total net realized and unrealized gains (losses) | 0.1 | 1.1 | ||
Purchases | 48 | 34 | ||
Sales | (70) | 0 | ||
Transfers in | 0 | 0 | ||
Transfers out | (47.9) | (36.9) | ||
Investments at fair value ending balance | 0 | 70 | 74 | |
Other investments | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 65.8 | 79.6 | ||
Amortization/accretion | 0 | 0 | ||
Total net realized and unrealized gains (losses) | (20.4) | 13.9 | ||
Purchases | 0 | 0.7 | ||
Sales | 0 | (0.6) | ||
Transfers in | 0 | 0 | ||
Transfers out | 0 | 0 | ||
Investments at fair value ending balance | 86.2 | 65.8 | $ 79.6 | |
Surplus Notes | ||||
Investment securities | ||||
Other investments | $ 64.9 | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 71.9 | 51.5 | ||
Non-agency RMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 132.7 | |||
Investments at fair value ending balance | 135 | 132.7 | ||
Non-agency RMBS | Level 2 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 132.7 | |||
Investments at fair value ending balance | 135 | 132.7 | ||
Non-agency RMBS | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 0 | |||
Transfers out | (44.2) | (18.1) | ||
Investments at fair value ending balance | 0 | 0 | ||
Non-agency CMBS | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 140.4 | |||
Investments at fair value ending balance | 123.6 | 140.4 | ||
Non-agency CMBS | Level 2 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 140.4 | |||
Investments at fair value ending balance | 123.6 | 140.4 | ||
Non-agency CMBS | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 0 | |||
Transfers out | (10.3) | |||
Investments at fair value ending balance | 0 | 0 | ||
Mortgage and asset-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 1,031.9 | |||
Investments at fair value ending balance | 1,153.1 | 1,031.9 | ||
Mortgage and asset-backed securities | Level 2 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 1,031.9 | |||
Investments at fair value ending balance | 1,153.1 | 1,031.9 | ||
Mortgage and asset-backed securities | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 0 | |||
Transfers out | (3.7) | (5.6) | ||
Investments at fair value ending balance | 0 | 0 | ||
Debt securities issued by corporations | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 810.4 | |||
Investments at fair value ending balance | 763.1 | 810.4 | ||
Debt securities issued by corporations | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Transfers out | (2.9) | |||
Total mortgage-backed securities | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 498.1 | |||
Investments at fair value ending balance | 545.2 | 498.1 | ||
Total mortgage-backed securities | Level 2 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 498.1 | |||
Investments at fair value ending balance | 545.2 | 498.1 | ||
Total mortgage-backed securities | Level 3 Inputs | ||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||||
Investments at fair value beginning balance | 0 | |||
Investments at fair value ending balance | $ 0 | $ 0 |
Investment Securities (Securiti
Investment Securities (Securities classified as level 3) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Significant unobservable inputs | |||
Debt securities issued by corporations | $ 2,496 | $ 2,507.5 | $ 2,306.8 |
Accretion (Amortization) of Discounts and Premiums, Investments | (13.3) | (13.2) | |
Fair Value Assets Measured on Recurring Basis Gain (Loss) Included in Earnings | 37.7 | (35.1) | |
Payments to Acquire Investments | 1,656.9 | 1,661.1 | |
Sales | (1,692.8) | (1,412.1) | |
Transfers out | (47.9) | (36.9) | |
Transfers in | $ 47.9 | 36.9 | |
Standard Poors N R Rating [Member] | Preferred stocks | Par Value | |||
Significant unobservable inputs | |||
Issuer's intent to call | $ 70 | ||
Standard Poors N R Rating [Member] | Surplus Notes | Discounted cash flow | |||
Significant unobservable inputs | |||
Discount Rate | 11.70% | 16.10% | |
Level 3 Inputs | Standard Poors N R Rating [Member] | Preferred stocks | Par Value | |||
Significant unobservable inputs | |||
Assets, Fair Value Disclosure | $ 70 | ||
Debt securities issued by corporations | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | $ 763.1 | 810.4 | |
Debt securities issued by corporations | Level 3 Inputs | |||
Significant unobservable inputs | |||
Transfers out | (2.9) | ||
Non-agency CMBS | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 123.6 | 140.4 | |
Non-agency CMBS | Level 3 Inputs | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 0 | 0 | |
Transfers out | (10.3) | ||
Non-agency RMBS | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 135 | 132.7 | |
Non-agency RMBS | Level 3 Inputs | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 0 | 0 | |
Transfers out | (44.2) | (18.1) | |
Fixed maturity investments | Level 3 Inputs | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 0 | 70 | 74 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 | |
Fair Value Assets Measured on Recurring Basis Gain (Loss) Included in Earnings | (0.1) | (1.1) | |
Payments to Acquire Investments | 48 | 34 | |
Sales | (70) | 0 | |
Transfers out | (47.9) | (36.9) | |
Transfers in | 0 | 0 | |
Other investments | Level 3 Inputs | |||
Significant unobservable inputs | |||
Debt securities issued by corporations | 86.2 | 65.8 | $ 79.6 |
Accretion (Amortization) of Discounts and Premiums, Investments | 0 | 0 | |
Fair Value Assets Measured on Recurring Basis Gain (Loss) Included in Earnings | 20.4 | (13.9) | |
Payments to Acquire Investments | 0 | 0.7 | |
Sales | 0 | (0.6) | |
Transfers out | 0 | 0 | |
Transfers in | $ 0 | $ 0 | |
Seller priority | Standard Poors N R Rating [Member] | Surplus Notes | Discounted cash flow | |||
Significant unobservable inputs | |||
Discount Rate | 9.60% | 13.00% | |
Fair Value Inputs, Interest Payment Schedule | 2,020 | 2,020 | |
Fair Value Inputs, Principal Payment Schedule | 2,030 | 2,025 | |
Increase in credit spread | 2.50% | 2.50% | |
Seller priority | Level 3 Inputs | Standard Poors N R Rating [Member] | Surplus Notes | Discounted cash flow | |||
Significant unobservable inputs | |||
Assets, Fair Value Disclosure | $ 51.1 | $ 38 | |
Pari passu | Standard Poors N R Rating [Member] | Surplus Notes | Discounted cash flow | |||
Significant unobservable inputs | |||
Discount Rate | 15.00% | 22.40% | |
Fair Value Inputs, Interest Payment Schedule | 2,021 | 2,020 | |
Fair Value Inputs, Principal Payment Schedule | 2,035 | 2,030 | |
Increase in credit spread | 2.50% | 2.50% | |
Pari passu | Level 3 Inputs | Standard Poors N R Rating [Member] | Surplus Notes | Discounted cash flow | |||
Significant unobservable inputs | |||
Assets, Fair Value Disclosure | $ 20.8 | $ 13.5 | |
Community Reinvestment Vehicle | Standard Poors N R Rating [Member] | Member Share of GAAP Net Equity | |||
Significant unobservable inputs | |||
GAAP net equity | 14.3 | 14.3 | |
Community Reinvestment Vehicle | Level 3 Inputs | Standard Poors N R Rating [Member] | Member Share of GAAP Net Equity | |||
Significant unobservable inputs | |||
Assets, Fair Value Disclosure | $ 14.3 | $ 14.3 |
Investment Securities (Change i
Investment Securities (Change in net unrealized gains or losses for Level 3 assets) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | $ 27.4 | $ (82.5) | $ (28.9) |
Fixed maturity investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | 2.5 | (15.7) | 1.9 |
Short-term investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | 0 | 0 | 0 |
Other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | 22.2 | (33.6) | 1.8 |
Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | 20.4 | (15.1) | 7.4 |
Level 3 | Fixed maturity investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | 0 | (1.1) | 1.1 |
Level 3 | Other investments | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Unrealized gains (losses) on unsold securities | $ 20.4 | $ (14) | $ 6.3 |
Investment Securities (Asset ba
Investment Securities (Asset backed securities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 2,496 | $ 2,507.5 | $ 2,306.8 |
Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 2,024.7 | 1,945.9 | $ 1,692.1 |
Fixed rate CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Average basis points of subordination | 0.30% | ||
Debt securities issued by corporations | $ 112.1 | ||
Fixed rate CMBS | Senior | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 56.9 | ||
Floating rate CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 11.5 | ||
Floating rate CMBS | Senior | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
GNMA | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 213.5 | 220.5 | |
GNMA | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 213.5 | 220.5 | |
GNMA | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
FNMA | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 42.8 | 1.4 | |
FNMA | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 42.8 | 1.4 | |
FNMA | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
FHLMC | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 30.3 | 3.1 | |
FHLMC | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 30.3 | 3.1 | |
FHLMC | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Agency commercial mortgage-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 286.6 | 225 | |
Agency commercial mortgage-backed securities | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 286.6 | 225 | |
Agency commercial mortgage-backed securities | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 135 | 132.7 | |
Non-agency RMBS | Senior | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 52.9 | ||
Non-agency RMBS | Senior | Collateralized debt obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 29 | ||
Non-agency RMBS | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 135 | 132.7 | |
Non-agency RMBS | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 0 | 0 | |
Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Percentage of underlying loans reported as non-performing | 0.00% | ||
Debt securities issued by corporations | $ 123.6 | 140.4 | |
Non-agency CMBS | Senior | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 56.9 | ||
Non-agency CMBS | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 123.6 | 140.4 | |
Non-agency CMBS | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Total non-agency | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 258.6 | 273.1 | |
Total non-agency | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 258.6 | 273.1 | |
Total non-agency | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Total mortgage-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 545.2 | 498.1 | |
Total mortgage-backed securities | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 545.2 | 498.1 | |
Total mortgage-backed securities | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Credit card receivables | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 224.3 | 202.7 | |
Credit card receivables | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 224.3 | 202.7 | |
Credit card receivables | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Vehicle receivables | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 273.6 | 255.6 | |
Vehicle receivables | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 273.6 | 255.6 | |
Vehicle receivables | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Other | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 110 | 75.5 | |
Other | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 110 | 75.5 | |
Other | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Total other asset-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 607.9 | 533.8 | |
Total other asset-backed securities | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 607.9 | 533.8 | |
Total other asset-backed securities | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | 0 | |
Total mortgage and asset-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 1,153.1 | 1,031.9 | |
Total mortgage and asset-backed securities | Level 2 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 1,153.1 | 1,031.9 | |
Total mortgage and asset-backed securities | Level 3 | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | $ 0 | |
Collateralized debt obligations | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Sub-prime | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Non-prime | Total mortgage-backed securities | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 0 |
Investment Securities (Non-agen
Investment Securities (Non-agency securities) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 2,496 | $ 2,507.5 | $ 2,306.8 |
Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 135 | 132.7 | |
Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 123.6 | 140.4 | |
Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 258.6 | $ 273.1 | |
Commercial Mortgage Backed Securities Fixed Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 112.1 | ||
Commercial Mortgage Backed Securities Floating Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 11.5 | ||
Super Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 82.1 | ||
Super Senior | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 8.7 | ||
Super Senior | Commercial Mortgage Backed Securities Fixed Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 8.7 | ||
Super Senior | Commercial Mortgage Backed Securities Floating Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 52.9 | ||
Senior | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 56.9 | ||
Senior | Commercial Mortgage Backed Securities Fixed Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 56.9 | ||
Senior | Commercial Mortgage Backed Securities Floating Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Subordinate | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Subordinate | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 58 | ||
Subordinate | Commercial Mortgage Backed Securities Fixed Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 46.5 | ||
Subordinate | Commercial Mortgage Backed Securities Floating Rate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 11.5 | ||
Securities Issued in 2004 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 19.1 | ||
Securities Issued in 2004 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Securities Issued in 2004 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 19.1 | ||
Securities Issued in 2005 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 5.7 | ||
Securities Issued in 2005 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Securities Issued in 2005 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 5.7 | ||
Securities Issued in 2006 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 3 | ||
Securities Issued in 2006 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Securities Issued in 2006 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 3 | ||
Securities Issued in 2008 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 2.7 | ||
Securities Issued in 2008 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Securities Issued in 2008 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 2.7 | ||
Securities issued in 2010 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 7.4 | ||
Securities issued in 2010 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 4.3 | ||
Securities issued in 2010 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 11.7 | ||
Securities issued in 2011 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 9.9 | ||
Securities issued in 2011 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Securities issued in 2011 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 9.9 | ||
Securities issued in 2012 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 5 | ||
Securities issued in 2012 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 18.1 | ||
Securities issued in 2012 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 23.1 | ||
Securities Issued in 2013 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 13.9 | ||
Securities Issued in 2013 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 11.5 | ||
Securities Issued in 2013 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 25.4 | ||
Securities Issued in 2014 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 30.5 | ||
Securities Issued in 2014 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 23.4 | ||
Securities Issued in 2014 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 53.9 | ||
Securities Issued in 2015 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 5 | ||
Securities Issued in 2015 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 44.4 | ||
Securities Issued in 2015 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 49.4 | ||
Securities Issued In 2016 | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 32.8 | ||
Securities Issued In 2016 | Non-agency CMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 21.9 | ||
Securities Issued In 2016 | Total | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 54.7 | ||
Prime | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 135 | ||
Prime | Super Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 82.1 | ||
Prime | Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 52.9 | ||
Prime | Subordinate | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Non-prime | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Non-prime | Super Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Non-prime | Senior | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | 0 | ||
Non-prime | Subordinate | Non-agency RMBS | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Debt securities issued by corporations | $ 0 |
Investment Securities (Other in
Investment Securities (Other investments) (Details) $ in Millions | Dec. 31, 2016USD ($)fund | Dec. 31, 2015USD ($)fund | Dec. 23, 2014USD ($) |
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | $ 138.2 | $ 128.3 | |
Other investments | 150.5 | 143 | |
Surplus Notes | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 71.9 | 51.5 | |
Other investments | $ 64.9 | ||
Hedge Funds Equity Banks and Financial [Domain] | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 15 | 12.8 | |
Net asset value per share of unfunded commitments | $ 0 | $ 0 | |
Hedge funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Number of Investments | fund | 4 | 4 | |
Other investments at fair value | $ 18.4 | $ 16.4 | |
Net asset value per share of unfunded commitments | 0 | 0 | |
Distributions from inactive hedge funds | 1 | ||
Other investments | 2.4 | ||
Hedge funds | Redemptions in lock-up | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Hedge funds | 30 - 59 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 16 | ||
Hedge funds | 60 - 89 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Hedge funds | 90 - 119 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 2.4 | ||
Hedge funds | 120+ days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Hedge Funds Other | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 3.4 | 3.6 | |
Net asset value per share of unfunded commitments | 0 | 0 | |
Insurance | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0.8 | 2 | |
Net asset value per share of unfunded commitments | 0.1 | 0.1 | |
Energy infrastructure and services | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 14.1 | 20.7 | |
Net asset value per share of unfunded commitments | 3.2 | 3.4 | |
Healthcare | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 3.5 | 3.8 | |
Net asset value per share of unfunded commitments | 0.4 | 0.4 | |
Multi-sector | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 11.5 | 14.8 | |
Net asset value per share of unfunded commitments | 2 | 2.1 | |
Private equity secondaries | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 3 | 4.4 | |
Net asset value per share of unfunded commitments | 2.1 | 2.1 | |
Direct lending / mezzanine debt | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0.4 | 0 | |
Net asset value per share of unfunded commitments | 7.1 | 0 | |
Real estate | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0.3 | 0.4 | |
Net asset value per share of unfunded commitments | $ 0.1 | $ 0.1 | |
Private equity funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Number of Investments | fund | 17 | 17 | |
Other investments at fair value | $ 33.6 | $ 46.1 | |
Net asset value per share of unfunded commitments | 15 | 8.2 | |
Private equity funds | 1 - 3 years | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 14.8 | ||
Private equity funds | 3 - 5 years | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 3.5 | ||
Private equity funds | 5 - 10 years | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 14.9 | ||
Private equity funds | >10 years | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0.4 | ||
Hedge funds and private equity funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 52 | 62.5 | |
Net asset value per share of unfunded commitments | 15 | 8.2 | |
Community Reinvestment Vehicle | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments | 14.3 | $ 14.3 | |
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Monthly [Member] | Hedge funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Monthly [Member] | Hedge funds | 30 - 59 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Monthly [Member] | Hedge funds | 60 - 89 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Monthly [Member] | Hedge funds | 90 - 119 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Monthly [Member] | Hedge funds | 120+ days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Quarterly [Member] | Hedge funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 16 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Quarterly [Member] | Hedge funds | 30 - 59 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 16 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Quarterly [Member] | Hedge funds | 60 - 89 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Quarterly [Member] | Hedge funds | 90 - 119 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Quarterly [Member] | Hedge funds | 120+ days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Annual [Member] | Hedge funds | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 2.4 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Annual [Member] | Hedge funds | 30 - 59 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Annual [Member] | Hedge funds | 60 - 89 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 0 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Annual [Member] | Hedge funds | 90 - 119 days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | 2.4 | ||
Fair Value Investments Entities that Calculate Net Asset Value Per Share Investment Redemption Frequency Annual [Member] | Hedge funds | 120+ days notice | |||
Schedule of Trading Securities and Other Trading Assets [Line Items] | |||
Other investments at fair value | $ 0 |
Investment Securities (Surplus
Investment Securities (Surplus notes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 23, 2014 | |
Surplus Note Valuation [Line Items] | |||
Statutory Excess Capital Percentage | 250.00% | ||
Runoff | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | $ 101 | ||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 64.9 | ||
Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | $ 101 | $ 101 | 101 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (29.1) | (49.5) | (36.1) |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 71.9 | 51.5 | |
Interest payments received | 2.4 | ||
Pari passu | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | 43.1 | 43.1 | 43.1 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (22.3) | (29.6) | (22.1) |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 20.8 | 13.5 | |
Seller priority | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | 57.9 | 57.9 | 57.9 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (6.8) | (19.9) | (14) |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | 51.1 | 38 | |
Current market rates on public debt and contract-based repayments [Member] | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | 5.1 | (15.1) | (6.8) |
Current market rates on public debt and contract-based repayments [Member] | Pari passu | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (1.1) | (14.7) | (8.4) |
Current market rates on public debt and contract-based repayments [Member] | Seller priority | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | 6.2 | (0.4) | 1.6 |
Regulatory approval [Member] | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (15.6) | (24.2) | (12.6) |
Regulatory approval [Member] | Pari passu | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (15.4) | (12.5) | (8) |
Regulatory approval [Member] | Seller priority | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (0.2) | (11.7) | (4.6) |
Liquidity adjustment [Member] | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (18.6) | (10.2) | (16.7) |
Liquidity adjustment [Member] | Pari passu | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (5.8) | (2.4) | (5.7) |
Liquidity adjustment [Member] | Seller priority | Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | $ (12.8) | $ (7.8) | $ (11) |
Debt (Details)
Debt (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2012 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt | ||||
Senior unsecured notes, at face value | $ 275,000,000 | $ 275,000,000 | ||
Unamortized original issue discount | (200,000) | (200,000) | ||
Unamortized issuance costs | (1,600,000) | (1,900,000) | ||
Debt | 273,200,000 | 272,900,000 | ||
Interest expense | 13,100,000 | 13,000,000 | $ 13,000,000 | |
Interest Paid | 12,700,000 | $ 12,700,000 | $ 12,700,000 | |
2012 Senior Notes | OneBeacon U.S. Holdings, Inc. | ||||
Debt | ||||
Senior unsecured notes, at face value | $ 275,000,000 | |||
Percentage of par value at which debt was issued | 99.90% | |||
Issuance of debt, net of debt issuance costs | $ 272,900,000 | |||
Interest rate (as a percent) | 4.60% | |||
Effective yield to maturity (as a percent) | 4.70% | |||
Scenario, amount due per acceleration clause | 75,000,000 | |||
Revolving Credit Facility | OneBeacon U.S. Holdings, Inc. | ||||
Debt | ||||
Total commitment | 65,000,000 | |||
Amount outstanding on credit facility | $ 0 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Income Tax Contingency [Line Items] | ||||||||||||||
Non-U.S. component of pre-tax income from continuing operations | $ 71.7 | $ 57.2 | $ 58 | |||||||||||
Effective tax rate as a percent | (13.00%) | (51.00%) | (29.10%) | |||||||||||
Effective tax rate on U.S. income or loss | 35.00% | 35.00% | 35.00% | |||||||||||
Less valuation allowance | $ 1.4 | $ 1.3 | $ 1.4 | $ 1.3 | ||||||||||
Gross deferred tax assets | 188.7 | 191.1 | 188.7 | 191.1 | ||||||||||
Total NOL carryforwards | 229.1 | 229.1 | ||||||||||||
Losses included in loss carryforwards subject to annual limitation on utilization | 0.5 | 0.5 | ||||||||||||
Unrecognized tax benefits | 5.2 | 24.3 | 5.2 | 24.3 | $ 35 | $ 32.6 | ||||||||
Interest expense, net of federal benefit | $ (8.2) | 1.7 | (1.9) | |||||||||||
Percentage of Likelihood for Realization of Benefit upon Ultimate Settlement | 50.00% | |||||||||||||
Income tax benefit | 6.4 | $ (4.6) | $ 2 | $ 8.7 | 11.9 | $ 3.5 | $ 0.9 | $ (3.4) | $ 12.5 | 12.9 | 12.3 | |||
Income Taxes Paid, Net | $ (12.8) | $ (6.2) | $ 2.1 | |||||||||||
Foreign Tax Authority [Member] | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Effective tax rate on non-U.S. income | 0.60% | 1.30% | 1.30% | |||||||||||
United States | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Effective tax rate on U.S. income or loss | (53.00%) | 42.60% | 83.70% | |||||||||||
Total NOL carryforwards | 227.6 | $ 227.6 | ||||||||||||
Unrecognized tax benefits | 0 | $ 8.2 | 0 | $ 8.2 | ||||||||||
Houston General Insurance Exchange [Member] | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Net operating income (loss) | (1.8) | |||||||||||||
Luxembourg | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Effective tax rate on non-U.S. income | 29.22% | 28.80% | ||||||||||||
Gross deferred tax asset for NOL carryforwards | 0.4 | 0.4 | ||||||||||||
Total NOL carryforwards | 1.5 | 1.5 | ||||||||||||
HGIE | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Gross deferred tax asset for NOL carryforwards | 74.9 | 74.9 | ||||||||||||
Gross deferred tax assets | 1 | 1 | ||||||||||||
HGIE | United States | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Gross deferred tax asset for NOL carryforwards | 74.5 | 74.5 | ||||||||||||
HGIE | Luxembourg | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Gross deferred tax asset for NOL carryforwards | 0.4 | 0.4 | ||||||||||||
OneBeacon U S Financial Services Inc [Member] | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Tax credit carryforward | 18 | 18 | ||||||||||||
Alternative minimum tax credit carryovers | $ 0.8 | $ 0.8 | ||||||||||||
Tax Year 2005 to 2006 | Internal Revenue Service (IRS) | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Income tax benefit | $ 5 | |||||||||||||
Tax Years 2007 to 2009 | Internal Revenue Service (IRS) | ||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||
Income tax benefit | $ 12.8 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred tax (expense) benefit: | |||||||||||
Total deferred tax (expense) benefit | $ (15.4) | $ 5.8 | $ 19 | ||||||||
Tax (expense) benefit | $ 6.4 | $ (4.6) | $ 2 | $ 8.7 | $ 11.9 | $ 3.5 | $ 0.9 | $ (3.4) | 12.5 | 12.9 | 12.3 |
Continuing Operations [Member] | |||||||||||
Current tax (expense) benefit: | |||||||||||
Federal | 29.3 | 9.1 | (4.3) | ||||||||
State | (1) | (1.2) | (1.6) | ||||||||
Non-U.S. | (0.4) | (0.8) | (0.8) | ||||||||
Total current tax (expense) benefit | 27.9 | 7.1 | (6.7) | ||||||||
Deferred tax (expense) benefit: | |||||||||||
Federal | (15.4) | 5.8 | 19 | ||||||||
State | 0 | 0 | 0 | ||||||||
Non-U.S. | 0 | 0 | 0 | ||||||||
Total deferred tax (expense) benefit | (15.4) | 5.8 | 19 | ||||||||
Tax (expense) benefit | $ 12.5 | $ 12.9 | $ 12.3 | ||||||||
Foreign Tax Authority [Member] | |||||||||||
Income Tax Contingency [Line Items] | |||||||||||
Effective tax rate on non-U.S. income | 0.60% | 1.30% | 1.30% |
Income Taxes - Reconciliation (
Income Taxes - Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Tax Contingency [Line Items] | |||
Effective tax rate on U.S. income or loss | 35.00% | 35.00% | 35.00% |
Continuing Operations [Member] | |||
Income Tax Contingency [Line Items] | |||
Tax expense at the U.S. statutory rate | $ (33.6) | $ (8.9) | $ (14.8) |
Non-U.S. earnings, net of foreign taxes | 24.7 | 19.3 | 19.6 |
Tax reserve adjustments and IRS exam settlements | 16.2 | (1.7) | 4.1 |
Tax exempt interest and dividends | 2.3 | 2.6 | 2.5 |
Change in valuation allowance | (0.1) | 0.5 | (0.2) |
Other, net | 3 | 1.1 | 1.1 |
Total income tax benefit on pre-tax income from continuing operations | $ 12.5 | $ 12.9 | $ 12.3 |
United States | |||
Income Tax Contingency [Line Items] | |||
Effective tax rate on U.S. income or loss | (53.00%) | 42.60% | 83.70% |
Income Taxes - Deferred Income
Income Taxes - Deferred Income Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred income tax assets related to: | ||
U.S. net operating loss carryforwards | $ 74.5 | $ 63.7 |
Unearned premiums | 37.5 | 37.2 |
Tax credit carryforwards | 19.2 | 16.9 |
Discounting of loss and LAE reserves | 18 | 26.7 |
Compensation and bonus accruals | 16 | 15.3 |
Sale of Runoff Business | 12.6 | 12.6 |
Deferred compensation plans | 5.5 | 6 |
Fixed assets | 3.1 | 4.2 |
Allowance for doubtful accounts | 0.5 | 0.7 |
Non-U.S. net operating loss carryforwards | 0.4 | 0.4 |
Other accrued compensation | 0.1 | 0.1 |
Accrued rent | 0 | 3.9 |
Investment basis differences | 0 | 3.2 |
Other items | 1.3 | 0.2 |
Total gross deferred income tax assets | 188.7 | 191.1 |
Less valuation allowance | (1.4) | (1.3) |
Total net deferred income tax assets | 187.3 | 189.8 |
Deferred income tax liabilities related to: | ||
Deferred acquisition costs | 33.7 | 35.2 |
Net unrealized investment gains | 14 | 6.5 |
Prepaid pension | 6.3 | 3.5 |
Capitalized software | 4.7 | 4.4 |
Investment basis differences | 1.7 | 0 |
Other items | 0.2 | 0 |
Total gross deferred income tax liabilities | 60.6 | 49.6 |
Net deferred tax asset | $ 126.7 | $ 140.2 |
Income Taxes - Carry Forwards (
Income Taxes - Carry Forwards (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | $ 229.1 | |
Total net deferred income tax assets | 187.3 | $ 189.8 |
United States | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 227.6 | |
Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 1.5 | |
Gross deferred tax asset for NOL carryforwards | 0.4 | |
Tax Year 2017 | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
Tax Year 2017 | United States | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
Tax Year 2017 | Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
Tax Years 2018 to 2025 | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 2 | |
Tax Years 2018 to 2025 | United States | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 2 | |
Tax Years 2018 to 2025 | Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
Tax Years 2026 to 2036 | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 225.6 | |
Tax Years 2026 to 2036 | United States | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 225.6 | |
Tax Years 2026 to 2036 | Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
No expiration date | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 1.5 | |
No expiration date | United States | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 0 | |
No expiration date | Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Total NOL carryforwards | 1.5 | |
HGIE | ||
Income Tax Contingency [Line Items] | ||
Gross deferred tax asset for NOL carryforwards | 74.9 | |
Valuation allowance for NOL carryforwards | (1) | |
Total net deferred income tax assets | 73.9 | |
HGIE | United States | ||
Income Tax Contingency [Line Items] | ||
Gross deferred tax asset for NOL carryforwards | 74.5 | |
Valuation allowance for NOL carryforwards | (0.6) | |
Total net deferred income tax assets | 73.9 | |
HGIE | Luxembourg | ||
Income Tax Contingency [Line Items] | ||
Gross deferred tax asset for NOL carryforwards | 0.4 | |
Valuation allowance for NOL carryforwards | (0.4) | |
Total net deferred income tax assets | $ 0 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Unrecognized Tax Benefits | $ 24.3 | $ 35 | $ 32.6 | $ 24.3 | $ 35 | $ 32.6 | ||||||
Income tax benefit | $ 6.4 | $ (4.6) | $ 2 | 8.7 | $ 11.9 | $ 3.5 | $ 0.9 | (3.4) | 12.5 | 12.9 | 12.3 | |
Changes in prior year tax positions | (5.4) | (10.7) | (4.9) | |||||||||
Tax positions taken during the current year | 0 | 0 | 7.3 | |||||||||
Lapse in statute of limitations | 0 | 0 | 0 | |||||||||
Settlements with tax authorities | (13.7) | 0 | 0 | |||||||||
Unrecognized Tax Benefits | 5.2 | 24.3 | 5.2 | 24.3 | 35 | |||||||
Permanent Differences | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Unrecognized Tax Benefits | 5.4 | 5.4 | 7.6 | 5.4 | 5.4 | 7.6 | ||||||
Changes in prior year tax positions | 0 | 0 | ||||||||||
Changes in prior year tax positions | (2.2) | |||||||||||
Tax positions taken during the current year | 0 | 0 | 0 | |||||||||
Lapse in statute of limitations | 0 | 0 | 0 | |||||||||
Settlements with tax authorities | (5.4) | 0 | 0 | |||||||||
Unrecognized Tax Benefits | 0 | 5.4 | 0 | 5.4 | 5.4 | |||||||
Temporary Differences | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Unrecognized Tax Benefits | 10.7 | 23.1 | 16.6 | 10.7 | 23.1 | 16.6 | ||||||
Changes in prior year tax positions | (5.5) | (12.4) | (0.8) | |||||||||
Tax positions taken during the current year | 0 | 0 | 7.3 | |||||||||
Lapse in statute of limitations | 0 | 0 | 0 | |||||||||
Settlements with tax authorities | 0 | 0 | 0 | |||||||||
Unrecognized Tax Benefits | 5.2 | 10.7 | 5.2 | 10.7 | 23.1 | |||||||
Interest and Penalties | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Unrecognized Tax Benefits | 8.2 | $ 6.5 | 8.4 | 8.2 | 6.5 | 8.4 | ||||||
Changes in prior year tax positions | 0.1 | 1.7 | ||||||||||
Changes in prior year tax positions | (1.9) | |||||||||||
Tax positions taken during the current year | 0 | 0 | 0 | |||||||||
Lapse in statute of limitations | 0 | 0 | 0 | |||||||||
Settlements with tax authorities | (8.3) | 0 | 0 | |||||||||
Unrecognized Tax Benefits | $ 0 | $ 8.2 | $ 0 | $ 8.2 | $ 6.5 | |||||||
Internal Revenue Service (IRS) | Tax Years 2010 to 2012 | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Income tax benefit | $ 3.5 | |||||||||||
Internal Revenue Service (IRS) | Tax Years 2007 to 2009 | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Income tax benefit | $ 12.8 | |||||||||||
Internal Revenue Service (IRS) | Tax Year 2005 to 2006 | ||||||||||||
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||||||||||
Income tax benefit | $ 5 |
Retirement Plans - Obligations
Retirement Plans - Obligations and Funded Status (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Change in projected benefit obligation: | ||||
Projected benefit obligation at beginning of year | $ 109.5 | $ 119.7 | ||
Service cost | 0.2 | 0.9 | $ 0.6 | |
Interest cost | 1.5 | 4.6 | 4.7 | |
Settlement loss (gain) on projected benefit obligation | $ (1.8) | 1.2 | ||
Assumption changes | (0.9) | (3.5) | ||
Actuarial loss | 0.4 | 0.9 | ||
Annuity contract purchases related to termination of Qualified Plan | (69) | 0 | ||
Benefits, including lump sum payments, and expenses paid with plan assets | (17) | (13.7) | ||
Benefits paid directly by OneBeacon | (2.1) | (2.2) | ||
Remeasurement due to Plan Termination | 0 | 4.6 | ||
Projected benefit obligation at end of year | 109.5 | 23.8 | 109.5 | 119.7 |
Change in plan assets: | ||||
Settlement gain | 3 | 0 | 0 | |
Fair value of plan assets at beginning of year | 139.8 | 146 | ||
Actual return on plan assets | 6.3 | 7.5 | ||
Annuity contract purchases related to termination of Qualified Plan | (69) | 0 | ||
Transfer of assets to the QRP | 47.1 | 0 | ||
Benefits, including lump sum payments, and expenses paid with plan assets | (17) | (13.7) | ||
Fair value of plan assets at end of year | 139.8 | 13 | 139.8 | $ 146 |
(Unfunded) over funded status at end of year | 30.3 | (10.8) | 30.3 | |
Qualified Plan | ||||
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 139.4 | |||
Fair value of plan assets at end of year | 139.4 | 139.4 | ||
(Unfunded) over funded status at end of year | 55.8 | 13 | 55.8 | |
Non-Qualified Plan | ||||
Change in plan assets: | ||||
Fair value of plan assets at end of year | 20.6 | |||
(Unfunded) over funded status at end of year | $ (25.5) | $ (23.8) | $ (25.5) |
Retirement Plans - Funded Statu
Retirement Plans - Funded Status (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
(Unfunded) over funded status at end of year | $ (10.8) | $ 30.3 |
Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
(Unfunded) over funded status at end of year | 13 | 55.8 |
Non-Qualified Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
(Unfunded) over funded status at end of year | $ (23.8) | $ (25.5) |
Retirement Plans - Non-qualifie
Retirement Plans - Non-qualified (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 23.8 | $ 25.5 |
Accumulated benefit obligation | 23.8 | 25.5 |
Fair value of plan assets | $ 0 | $ 0 |
Retirement Plans - Qualified Pl
Retirement Plans - Qualified Plan (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 0 | $ 84 |
Accumulated benefit obligation | 0 | 84 |
Fair value of plan net assets | $ 13 | $ 139.8 |
Retirement Plans - Accumulated
Retirement Plans - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Accumulated Other Comprehensive Income [Roll Forward] | |||
Accumulated other comprehensive loss at beginning of year | $ (8) | $ (8) | |
Amortization of net actuarial gains recognized during the year | 1.3 | 1.3 | |
Net actuarial gains (losses) occurring during the year(1) | 3.2 | (1.3) | |
Qualified Plan termination impact | (3) | 0 | $ 0 |
Accumulated other comprehensive loss at end of year | (6.5) | (8) | (8) |
Qualified Plan termination impact | $ (3) | $ 0 | $ 0 |
Retirement Plans - Net Benefit
Retirement Plans - Net Benefit Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | ||||
Service cost | $ 0.2 | $ 0.9 | $ 0.6 | |
Interest cost | 1.5 | 4.6 | 4.7 | |
Expected return on plan assets | (1) | (8.7) | (8.5) | |
Amortization of net actuarial losses recognized during the year | 1.3 | 1.3 | 0.3 | |
Net periodic pension cost (income) before special termination benefits | 2 | (1.9) | (2.9) | |
Settlement gain | (3) | 0 | 0 | |
Special termination benefits expense | 0 | 0 | 0.3 | |
Total net periodic benefit income | $ (1) | $ (1.9) | $ (2.6) | |
Forecast | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Amount expected to be amortized from accumulated other comprehensive income (loss) into net periodic benefit cost | $ 0.9 |
Retirement Plans - Assumptions
Retirement Plans - Assumptions (Details) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | ||
Discount rate | 3.78% | 3.22% |
Discount rate | 3.88% | 3.91% |
Expected long-term rate of return on plan assets | 3.00% | 6.00% |
Retirement Plans - Fair Value (
Retirement Plans - Fair Value (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 13 | $ 139.8 | $ 146 |
Transfers between level 1, 2 or 3 | 0 | 0 | |
Qualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 139.4 | ||
Qualified Plan | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 139.4 | ||
Qualified Plan | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Common equity securities | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12.8 | ||
Qualified Plan | Common equity securities | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 12.8 | ||
Qualified Plan | Common equity securities | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Common equity securities | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | ||
Qualified Plan | Fixed maturity investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 132.4 | ||
Qualified Plan | Fixed maturity investments | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 132.4 | ||
Qualified Plan | Fixed maturity investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Fixed maturity investments | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Short-term investments | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7 | ||
Qualified Plan | Short-term investments | Level 1 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 7 | ||
Qualified Plan | Short-term investments | Level 2 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | ||
Qualified Plan | Short-term investments | Level 3 Inputs | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 |
Retirement Plans - Plan Assets
Retirement Plans - Plan Assets (Details) - Qualified Plan | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations | 100.00% | 100.00% |
Common equity securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations | 98.50% | 0.00% |
Fixed maturity investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations | 0.00% | 95.00% |
Cash and short-term investments | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Asset allocations | 1.50% | 5.00% |
Retirement Plans - Cash Flow (D
Retirement Plans - Cash Flow (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
2,017 | $ 2.1 | |
2,018 | 2.1 | |
2,019 | 2 | |
2,020 | 2 | |
2,021 | 1.9 | |
2022 - 2026 | $ 8.4 | |
Forecast | ||
Defined Benefit Plan, Expected Future Benefit Payments, Fiscal Year Maturity [Abstract] | ||
Anticipated contribution | $ 2.1 |
Retirement Plans - Other Benefi
Retirement Plans - Other Benefit Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Percentage of matching contribution made by company | 50.00% | ||
Employer matching contribution, percent of employees' gross pay | 3.00% | 6.00% | |
Cost recognized | $ 3.2 | $ 3 | $ 2.7 |
Withdrawal from trust | 47.1 | 0 | |
Supplemental Employee Retirement Plan | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Noncurrent benefit liability | 3.1 | 4.1 | |
Postretirement Life Insurance | |||
Deferred Compensation Arrangement with Individual, Postretirement Benefits [Line Items] | |||
Noncurrent benefit liability | 12.8 | 12.5 | |
Assets Held-in-trust, Noncurrent | 29.3 | $ 33.9 | |
Withdrawal from trust | $ 5.5 |
Employee Share-Based Incentiv92
Employee Share-Based Incentive Compensation Plans Employee Share-Based Incentive Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Expense recognized | $ 10.8 | $ 7.7 | $ 7.5 |
Employee Share-Based Incentiv93
Employee Share-Based Incentive Compensation Plans - Performance Shares (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Expense amortized | |||
Expense (income) recognized | $ (10.8) | $ (7.7) | $ (7.5) |
Additional disclosures | |||
Performance share payments factor | 24.30% | 45.70% | 37.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Payout for Maximum Growth Target Percentage | 200.00% | 200.00% | 200.00% |
Share-based compensation Arrangement by Share-based Payment Award, Targeted Performance Goal for Personnel Expressed as Percentage of Growth in Intrinsic Business Value Per Share | 12.00% | 13.00% | 14.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Performance Goal Percentage for Minimum Payout | 5.00% | 6.00% | 7.00% |
Performance goal percentage for minimum payout | 0.00% | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award Performance Goal Percentage for Maximum Payout | 19.00% | 20.00% | 21.00% |
Performance shares | |||
Additional disclosures | |||
Additional compensation cost that would be recognized if all outstanding performance shares vested | $ 2.1 | ||
Long Term Incentive Plan | Performance shares | |||
Activity in plan | |||
Payments and deferrals (in shares) | (167,300) | (181,290) | (142,138) |
Beginning of period (in shares) | 449,435 | 517,470 | 493,421 |
New awards (in shares) | 163,150 | 154,887 | 165,800 |
Forfeitures and net change in assumed forfeitures (in shares) | (7,234) | (41,632) | (387) |
End of period (in shares) | 452,519 | 449,435 | 517,470 |
Expense amortized | |||
Accrued expense at beginning of period | $ 1.4 | $ 3.4 | $ 4 |
Payments and deferrals | (0.6) | (1.5) | (1) |
Forfeitures and net change in assumed forfeitures | 0 | (0.1) | 0 |
Expense (income) recognized | (0.8) | 0.4 | (0.4) |
Accrued expense at end of period | $ 1.6 | $ 1.4 | $ 3.4 |
Long Term Incentive Plan | Performance shares | Performance Cycle 2014 - 2016 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Number before Forfeitures | 142,710 | ||
Expense amortized | |||
Accrued expense at end of period | $ 0 | ||
Long Term Incentive Plan | Performance shares | Performance Cycle 2015 - 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Number before Forfeitures | 146,659 | ||
Expense amortized | |||
Accrued expense at end of period | $ 0.7 | ||
Long Term Incentive Plan | Performance shares | Performance Cycle 2016 - 2018 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Number before Forfeitures | 163,150 | ||
Expense amortized | |||
Accrued expense at end of period | $ 0.9 | ||
Long Term Incentive Plan | Performance shares | Performance Cycles 2013 - 2017 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Based Compensation Arrangement by Share Based Payment Award Equity Instruments Other than Options Nonvested Number before Forfeitures | 452,519 | ||
Expense amortized | |||
Accrued expense at end of period | $ 1.6 |
Employee Share-Based Incentiv94
Employee Share-Based Incentive Compensation Plans - Restricted Shares (Details) - USD ($) $ in Millions | Feb. 24, 2016 | Feb. 22, 2016 | Feb. 28, 2015 | Feb. 24, 2015 | Feb. 22, 2015 | Feb. 28, 2014 | Feb. 22, 2014 | May 25, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Unamortized grant date fair value | |||||||||||
Expense (income) recognized | $ (10.8) | $ (7.7) | $ (7.5) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 8 months | ||||||||||
Restricted Stock | |||||||||||
Activity in plan | |||||||||||
Beginning of period (in shares) | 382,722 | 612,500 | 915,000 | ||||||||
New awards (in shares) | 170,650 | 75,950 | 0 | ||||||||
Forfeitures (in shares) | 0 | (9,728) | (2,500) | ||||||||
Vested (in shares) | (157,500) | (296,000) | (300,000) | ||||||||
End of period (in shares) | 395,872 | 382,722 | 612,500 | ||||||||
Unamortized grant date fair value | |||||||||||
Unamortized grant date fair value, beginning of period | $ 2.5 | $ 3.5 | $ 6.5 | ||||||||
Issued | 2.3 | 1.1 | 0 | ||||||||
Employee Service Share Based Compensation Nonvested Awards Forfeited in Period Total Compensation Cost Not Yet Recognized | 0 | (0.1) | 0 | ||||||||
Expense (income) recognized | (2.7) | (2) | (3) | ||||||||
Unamortized grant date fair value, end of period | 2.1 | 2.5 | 3.5 | ||||||||
Grant date fair value | $ (2.1) | $ (4.3) | $ (4.3) | ||||||||
RSAs Granted in 2012 [Member] | Restricted Stock | |||||||||||
Activity in plan | |||||||||||
Vested (in shares) | (138,500) | (142,500) | |||||||||
RSAs Granted in 2011 [Member] | Restricted Stock | |||||||||||
Activity in plan | |||||||||||
New awards (in shares) | 630,000 | ||||||||||
Vested (in shares) | (157,500) | (157,500) | (157,500) | ||||||||
Restricted Stock | RSAs Granted in 2011 [Member] | |||||||||||
Activity in plan | |||||||||||
End of period (in shares) | 157,500 | ||||||||||
Awards Issued in 2016 | Restricted Stock | |||||||||||
Activity in plan | |||||||||||
New awards (in shares) | 170,650 | ||||||||||
Unamortized grant date fair value | |||||||||||
Issued | $ 2.3 | ||||||||||
Awards Issued in 2015 | Restricted Stock | |||||||||||
Activity in plan | |||||||||||
New awards (in shares) | 75,950 | ||||||||||
Unamortized grant date fair value | |||||||||||
Issued | $ 1.1 | ||||||||||
Share-based Compensation Award, Tranche One | Awards Issued in 2016 | Restricted Stock | |||||||||||
Unamortized grant date fair value | |||||||||||
Shares scheduled to cliff vest | 92,500 | ||||||||||
Share-based Compensation Award, Tranche One | Awards Issued in 2015 | Restricted Stock | |||||||||||
Unamortized grant date fair value | |||||||||||
Shares scheduled to cliff vest | 67,722 | ||||||||||
Share-based Compensation Award, Tranche Two | Awards Issued in 2016 | Restricted Stock | |||||||||||
Unamortized grant date fair value | |||||||||||
Shares scheduled to cliff vest | 78,150 |
Employee Share-Based Incentiv95
Employee Share-Based Incentive Compensation Plans - Stock Options (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized | $ 10.8 | $ 7.7 | $ 7.5 |
Employee Share-Based Incentiv96
Employee Share-Based Incentive Compensation Plans - Restricted Stock Units (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized | $ 10.8 | $ 7.7 | $ 7.5 |
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
New awards (in shares) | 233,461 | 226,778 | |
Expense recognized | $ 2.1 | $ 0.8 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 214,506 | ||
Additional compensation cost that would be recognized if all outstanding RSUs vested | $ 3.9 | ||
Awards Issued in 2015 | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 173,042 |
Employee Share-Based Incentiv97
Employee Share-Based Incentive Compensation Plans - Other Share-Based Compensation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Employee Stock Ownership Plan (ESOP), Annual Contribution Provided to Participants Expressed as Percentage of Salary | 3.00% | ||
Employee Stock Ownership Plan (ESOP), Social Security Wage Base Amount Maximum | $ 118,500 | ||
Employee Stock Ownership Plan (ESOP), Annual Base Contribution Provided to Participants Expressed as Percentage of Salary | 6.00% | ||
Employee Stock Ownership Plan (ESOP), Variable Contribution Provided to Participants Not Eligible to Certain Benefits Expressed as Percentage of Salary | 3.00% | 3.00% | 2.00% |
Annual Compensation Cap | $ 265,000 | ||
Expense recognized | $ 10,800,000 | $ 7,700,000 | $ 7,500,000 |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage Owned of Common Stock | 3.00% | 3.00% | |
KSOP [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expense recognized | $ 5,200,000 | $ 5,400,000 | $ 4,100,000 |
Common Shareholders' Equity (De
Common Shareholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Aug. 22, 2007 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Other investments | $ 150.5 | $ 143 | ||
Dividends | $ 80.2 | $ 81.2 | $ 80.9 | |
Dividends paid (in dollars per share) | $ 0.84 | $ 0.84 | $ 0.84 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net change in benefit plan assets and obligations | $ 1.5 | $ 0 | $ (18.5) | |
Income tax (expense) benefit | (0.5) | 0 | 6.5 | |
Net change in benefit plan assets and obligations, net of tax | (1) | $ 0 | $ 12 | |
Class A common | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase, authorized amount | $ 200 | |||
Stock repurchase, remaining authorized repurchase amount | $ 75 | |||
Repurchases and retirements of common shares | 850,349 | 166,368 | 0 | |
Stock Repurchased During Period, Value | $ 10.6 | $ 2.1 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 12.42 | $ 12.62 | ||
OneBeacon | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Dividends | $ 79.2 | $ 80 | $ 80 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net change in benefit plan assets and obligations, net of tax | (1) | 0 | 12 | |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Dividends | 0 | 0 | 0 | |
AOCI Including Portion Attributable to Noncontrolling Interest [Abstract] | ||||
Net change in benefit plan assets and obligations, net of tax | $ (1) | $ 0 | $ 12 | |
Share repurchase for employee tax withholding [Member] | Class A common | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Shares Paid for Tax Withholding for Share Based Compensation | 64,981 | 112,051 | 106,366 | |
Stock Repurchased During Period, Value | $ 0.9 | $ 1.6 | $ 1.8 |
Statutory Capital and Surplus (
Statutory Capital and Surplus (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 23, 2014 | |
Statutory Accounting Practices [Line Items] | ||||
Payments of Ordinary Dividends, Common Stock | $ 79.2 | $ 80 | $ 80 | |
Statutory Accounting Practices, Statutory Capital and Surplus Required | $ 107.5 | |||
Dividend Payment without Prior Approval of Regulatory Authorities Percentage of Prior Year Statutory Surplus | 10.00% | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 11.4 | |||
Statutory Accounting Practices, Statutory Net Income Amount | 36.7 | 44.5 | (14.2) | |
Cash dividends paid to parent | 0 | 0 | 0 | |
Payments for Repurchase of Common Stock | 11.5 | 3.7 | 1.8 | |
Net Unrestricted Cash, Short Term and Fixed Maturity Investments | 64.5 | |||
Dividends, Common Stock, Cash | 80.2 | 81.2 | 80.9 | |
Total | 2,169.1 | |||
Other investments | 150.5 | 143 | ||
Unregulated Operation [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Payments of Dividends | 5.7 | 5.3 | ||
Net Unrestricted Cash, Short Term and Fixed Maturity Investments | 56.4 | |||
UNITED STATES | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 624.8 | 622.3 | ||
BERMUDA | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 270.2 | 249.5 | ||
Atlantic Specialty Insurance Company (ASIC) | Regulated Operation [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Earned Surplus | 69 | |||
Statutory Accounting Practices, Statutory Surplus | 624.8 | |||
Cash dividends paid to parent | 26.5 | 44.9 | ||
Payments for Repurchase of Common Stock | 66 | |||
Split Rock Insurance, Ltd. (Split Rock) | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Capital | 210.1 | |||
Statutory Accounting Practices, Statutory Surplus | 60.1 | |||
Statutory Accounting Practices, Statutory Capital and Surplus, Balance | 270.2 | |||
Statutory Accounting Practices, Statutory Net Income Amount | 42.4 | 45.5 | 46.2 | |
Proceeds from Contributions from Affiliates | 85 | |||
Cash dividends paid to parent | $ 25 | |||
Split Rock Insurance, Ltd. (Split Rock) | Minimum | ||||
Statutory Accounting Practices [Line Items] | ||||
Statutory Accounting Practices, Statutory Capital, Percent | 15.00% | |||
Split Rock Insurance, Ltd. (Split Rock) | Maximum | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividend Payment without Prior Approval of Regulatory Authorities Percentage of Prior Year Statutory Surplus | 25.00% | |||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 60.1 | |||
Statutory Accounting Practices, Statutory Amount Available for Capital Distributions without Regulatory Approval | 31.5 | |||
Runoff | ||||
Statutory Accounting Practices [Line Items] | ||||
Surplus notes issued as seller financing in sale of discontinued operations | $ 101 | |||
Retained earnings (deficit) | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends, Common Stock, Cash | 79.2 | 80 | 80 | |
OneBeacon | ||||
Statutory Accounting Practices [Line Items] | ||||
Dividends, Common Stock, Cash | 79.2 | 80 | $ 80 | |
Surplus Notes | ||||
Statutory Accounting Practices [Line Items] | ||||
Surplus notes issued as seller financing in sale of discontinued operations | 101 | $ 101 | 101 | |
Other investments | $ 64.9 | |||
Equity Securities and Convertible Fixed Maturity Investments [Member] | ||||
Statutory Accounting Practices [Line Items] | ||||
Total | $ 11.9 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2016USD ($)segment | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Segment Information | ||||||||||||
Number of operating segments | segment | 16 | |||||||||||
Number of reportable segments | segment | 2 | |||||||||||
Earned premiums | $ 1,100.6 | $ 1,176.2 | $ 1,177.1 | |||||||||
Loss and loss adjustment expense | (656) | (700.7) | (815.1) | |||||||||
Policy acquisition expenses | (206) | (213.8) | (203.3) | |||||||||
Other underwriting expenses | (209) | (218.2) | (179.2) | |||||||||
Total underwriting income (loss) | 29.6 | 43.5 | (20.5) | |||||||||
Net investment income | 50.6 | 45.9 | 43.4 | |||||||||
Net realized and change in unrealized investment gains | 37.7 | (35.1) | 40.4 | |||||||||
Net other revenues (expenses) | 5.5 | (0.6) | 5.8 | |||||||||
General and administrative expenses | (14.2) | (15.4) | (13.8) | |||||||||
Interest expense | (13.1) | (13) | (13) | |||||||||
Pre-tax income (loss) from continuing operations | $ 2 | $ 32.9 | $ 23 | $ 38.2 | $ 11.1 | $ (16.8) | $ 2.9 | $ 28.1 | 96.1 | 25.3 | 42.3 | |
Segment Information, Additional Disclosure | ||||||||||||
Total investment securities | 2,620.4 | 2,591.4 | 2,620.4 | 2,591.4 | ||||||||
Premiums receivable | 228.3 | 219 | 228.3 | 219 | ||||||||
Reinsurance recoverables | 179.5 | 193.5 | 179.5 | 193.5 | ||||||||
Deferred acquisition costs | 96.3 | 100.7 | 96.3 | 100.7 | ||||||||
Ceded unearned premiums | 44.2 | 29.5 | 44.2 | 29.5 | ||||||||
Other assets | 421.2 | 468.5 | 421.2 | 468.5 | ||||||||
Total assets | 3,589.9 | 3,602.6 | 3,589.9 | 3,602.6 | ||||||||
Unpaid loss and loss adjustment expense reserves | 1,365.6 | 1,389.8 | 1,365.6 | 1,389.8 | 1,342.2 | $ 1,054.3 | ||||||
Unearned premiums | 575.1 | 560.3 | 575.1 | 560.3 | ||||||||
Funds held under insurance contracts | 153 | 137.7 | 153 | 137.7 | ||||||||
Debt | 273.2 | 272.9 | 273.2 | 272.9 | ||||||||
Other liabilities | 197.8 | 237.4 | 197.8 | 237.4 | ||||||||
Total liabilities | 2,564.7 | 2,598.1 | $ 2,564.7 | 2,598.1 | ||||||||
Specialty Products | ||||||||||||
Segment Information | ||||||||||||
Number of operating segments | segment | 10 | |||||||||||
Earned premiums | $ 524.4 | 560.3 | 582.1 | |||||||||
Loss and loss adjustment expense | (375.4) | (310.7) | (457.9) | |||||||||
Policy acquisition expenses | (99.5) | (100.1) | (96.2) | |||||||||
Other underwriting expenses | (88.6) | (97.9) | (78.4) | |||||||||
Total underwriting income (loss) | (39.1) | 51.6 | (50.4) | |||||||||
Net investment income | 0 | 0 | 0 | |||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | |||||||||
Net other revenues (expenses) | (0.1) | (0.2) | 0.9 | |||||||||
General and administrative expenses | 0 | 0 | 0.2 | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Pre-tax income (loss) from continuing operations | (39.2) | 51.4 | (49.3) | |||||||||
Segment Information, Additional Disclosure | ||||||||||||
Total investment securities | 0 | 0 | 0 | 0 | ||||||||
Premiums receivable | 81.4 | 63 | 81.4 | 63 | ||||||||
Reinsurance recoverables | 125.4 | 139.5 | 125.4 | 139.5 | ||||||||
Deferred acquisition costs | 48.3 | 49.6 | 48.3 | 49.6 | ||||||||
Ceded unearned premiums | 34.4 | 19.2 | 34.4 | 19.2 | ||||||||
Other assets | 1.1 | 0.9 | 1.1 | 0.9 | ||||||||
Total assets | 290.6 | 272.2 | 290.6 | 272.2 | ||||||||
Unpaid loss and loss adjustment expense reserves | 776.6 | 772.2 | 776.6 | 772.2 | ||||||||
Unearned premiums | 319.8 | 288.1 | 319.8 | 288.1 | ||||||||
Funds held under insurance contracts | 153 | 137.7 | 153 | 137.7 | ||||||||
Debt | 0 | 0 | 0 | 0 | ||||||||
Other liabilities | 0 | 0 | 0 | 0 | ||||||||
Total liabilities | 1,249.4 | 1,198 | $ 1,249.4 | 1,198 | ||||||||
Specialty Industries | ||||||||||||
Segment Information | ||||||||||||
Number of operating segments | segment | 6 | |||||||||||
Earned premiums | $ 576.2 | 615.9 | 595 | |||||||||
Loss and loss adjustment expense | (280.6) | (390) | (357.2) | |||||||||
Policy acquisition expenses | (106.5) | (113.7) | (107.1) | |||||||||
Other underwriting expenses | (120.4) | (120.3) | (100.8) | |||||||||
Total underwriting income (loss) | 68.7 | (8.1) | 29.9 | |||||||||
Net investment income | 0 | 0 | 0 | |||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | |||||||||
Net other revenues (expenses) | 1.5 | 1.4 | 1.1 | |||||||||
General and administrative expenses | (2.4) | (2.7) | (2.3) | |||||||||
Interest expense | 0 | 0 | 0 | |||||||||
Pre-tax income (loss) from continuing operations | 67.8 | (9.4) | 28.7 | |||||||||
Segment Information, Additional Disclosure | ||||||||||||
Total investment securities | 0 | 0 | 0 | 0 | ||||||||
Premiums receivable | 146.9 | 156 | 146.9 | 156 | ||||||||
Reinsurance recoverables | 35.8 | 33.6 | 35.8 | 33.6 | ||||||||
Deferred acquisition costs | 48 | 51.1 | 48 | 51.1 | ||||||||
Ceded unearned premiums | 9.8 | 10.3 | 9.8 | 10.3 | ||||||||
Other assets | 0.1 | 0.1 | 0.1 | 0.1 | ||||||||
Total assets | 240.6 | 251.1 | 240.6 | 251.1 | ||||||||
Unpaid loss and loss adjustment expense reserves | 570.7 | 597.2 | 570.7 | 597.2 | ||||||||
Unearned premiums | 255.3 | 272.2 | 255.3 | 272.2 | ||||||||
Funds held under insurance contracts | 0 | 0 | 0 | 0 | ||||||||
Debt | 0 | 0 | 0 | 0 | ||||||||
Other liabilities | 0 | 0 | 0 | 0 | ||||||||
Total liabilities | 826 | 869.4 | 826 | 869.4 | ||||||||
Investing, Financing and Corporate | ||||||||||||
Segment Information | ||||||||||||
Earned premiums | 0 | 0 | 0 | |||||||||
Loss and loss adjustment expense | 0 | 0 | 0 | |||||||||
Policy acquisition expenses | 0 | 0 | 0 | |||||||||
Other underwriting expenses | 0 | 0 | 0 | |||||||||
Total underwriting income (loss) | 0 | 0 | 0 | |||||||||
Net investment income | 50.6 | 45.9 | 43.4 | |||||||||
Net realized and change in unrealized investment gains | 37.7 | (35.1) | 40.4 | |||||||||
Net other revenues (expenses) | 4.1 | (1.8) | 3.8 | |||||||||
General and administrative expenses | (11.8) | (12.7) | (11.7) | |||||||||
Interest expense | (13.1) | (13) | (13) | |||||||||
Pre-tax income (loss) from continuing operations | 67.5 | (16.7) | $ 62.9 | |||||||||
Segment Information, Additional Disclosure | ||||||||||||
Total investment securities | 2,620.4 | 2,591.4 | 2,620.4 | 2,591.4 | ||||||||
Premiums receivable | 0 | 0 | 0 | 0 | ||||||||
Reinsurance recoverables | 18.3 | 20.4 | 18.3 | 20.4 | ||||||||
Deferred acquisition costs | 0 | 0 | 0 | 0 | ||||||||
Ceded unearned premiums | 0 | 0 | 0 | 0 | ||||||||
Other assets | 420 | 467.5 | 420 | 467.5 | ||||||||
Total assets | 3,058.7 | 3,079.3 | 3,058.7 | 3,079.3 | ||||||||
Unpaid loss and loss adjustment expense reserves | 18.3 | 20.4 | 18.3 | 20.4 | ||||||||
Unearned premiums | 0 | 0 | 0 | 0 | ||||||||
Funds held under insurance contracts | 0 | 0 | 0 | 0 | ||||||||
Debt | 273.2 | 272.9 | 273.2 | 272.9 | ||||||||
Other liabilities | 197.8 | 237.4 | 197.8 | 237.4 | ||||||||
Total liabilities | $ 489.3 | $ 530.7 | $ 489.3 | $ 530.7 | ||||||||
Atlantic Specialty Insurance Company (ASIC) | ||||||||||||
Segment Information, Additional Disclosure | ||||||||||||
Quota share reinsurance agreement percentage | 100.00% | 100.00% |
Variable Interest Entities (101
Variable Interest Entities ("VIE") (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2016USD ($)reciprocal | Dec. 31, 2015USD ($) | |
Variable Interest Entity [Line Items] | ||
Retained earnings (deficit) | $ 12.3 | $ (15.9) |
Reciprocals [Member] | ||
Variable Interest Entity [Line Items] | ||
Number of reciprocals capitalized | reciprocal | 1 | |
Houston General Insurance [Member] | ||
Variable Interest Entity [Line Items] | ||
Surplus notes | $ 5 | |
Carrying amount of total assets related to VIE | 5.1 | |
Carrying amount of total liabilities related to VIE | 5 | |
Retained earnings (deficit) | 0.5 | |
Accrued interest on surplus notes | $ 0.6 |
Fair Value of Financial Inst102
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value of Financial Instruments | ||
Debt | $ 273.2 | $ 272.9 |
Fair Value | OneBeacon U.S. Holdings, Inc. | ||
Fair Value of Financial Instruments | ||
Fair value | 274.2 | 276.4 |
Carrying Value | OneBeacon U.S. Holdings, Inc. | ||
Fair Value of Financial Instruments | ||
Debt | $ 273.2 | $ 272.9 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) - USD ($) shares in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2006 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | ||||||||||||
Expenses recognized under separation agreement | $ 200,000 | $ 300,000 | $ 300,000 | |||||||||
Revenue recognized under separation agreement | 1,400,000 | 2,000,000 | 2,000,000 | |||||||||
Noncontrolling interests | $ 3,900,000 | $ 3,600,000 | 3,900,000 | 3,600,000 | ||||||||
Operating Leases, Rent Expense, Net | 10,700,000 | 12,000,000 | 11,100,000 | |||||||||
Income tax benefit | $ (6,400,000) | $ 4,600,000 | $ (2,000,000) | $ (8,700,000) | $ (11,900,000) | $ (3,500,000) | $ (900,000) | $ 3,400,000 | (12,500,000) | (12,900,000) | (12,300,000) | |
Net written premiums | 1,100,700,000 | 1,136,600,000 | 1,216,900,000 | |||||||||
White Mountains Advisors L L C [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset management fees | $ 3,700,000 | 3,600,000 | 3,400,000 | |||||||||
Asset management fee, treasury percentage | 0.0175% | |||||||||||
Asset management fee, treasury | $ 500,000 | 400,000 | 400,000 | |||||||||
Bridge Holdings Ltd | Maximum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related Party Transaction Management Fees from Transactions with Related Party | $ 100,000 | |||||||||||
Star and Shield Insurance Exchange [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Net written premiums | 2,800,000 | 17,300,000 | ||||||||||
Limited Liability Company [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related Party Transaction Management Fees from Transactions with Related Party | 100,000 | 200,000 | ||||||||||
Related Party Transaction Incentive Fees from Transactions with Related Party | $ 200,000 | |||||||||||
Limited Liability Company [Member] | Maximum | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Related Party Transaction Incentive Fees from Transactions with Related Party | 100,000 | |||||||||||
White Mountains Insurance Group Ltd | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Stock Issued During Period, Shares, New Issues | 27.6 | |||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 27.60% | |||||||||||
Ownership interest (as a percent) | 76.10% | 76.10% | ||||||||||
OB Portfolio Solutions ICAV [Member] | White Mountains Advisors L L C [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Asset management fees | $ 100,000 | |||||||||||
Investment advisory and management services fee (as a percent) | 0.0175% | |||||||||||
Prospective Partners LLC [Member] | Limited Liability Company [Member] | ||||||||||||
Related Party Transaction [Line Items] | ||||||||||||
Investment Advisory Fees on First Threshold of Assets Under Management in Basis Points | 1.00% | |||||||||||
First Specified Threshold Limit of Assets Under Management | $ 200,000,000 | |||||||||||
Investment Advisory Fees on Second Threshold of Assets Under Management in Basis Points | 0.50% | |||||||||||
Second Specified Threshold Limit of Assets Under Management | $ 200,000,000 | |||||||||||
Investment Advisory Fees on Third Threshold of Assets Under Management in Basis Points | 0.25% | |||||||||||
Specified Threshold Limit of Assets under Management | $ 400,000,000 | |||||||||||
Noninterest Expense Investment Advisory Fees | $ 400,000 | 2,000,000 | ||||||||||
Share-based Compensation | $ 900,000 | $ 1,300,000 |
Related Party Disclosures - Ass
Related Party Disclosures - Asset Management (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||
Net written premiums | $ 1,100.7 | $ 1,136.6 | $ 1,216.9 |
Up to $1 Billion | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party, amount of asset portfolio | $ 1,000 | ||
Related party transaction, expenses from Transactions with related party, percent | 0.10% | ||
Next $1 billion | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party, amount of asset portfolio | $ 1,000 | ||
Related party transaction, expenses from Transactions with related party, percent | 0.085% | ||
Next $3 Billion | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party, amount of asset portfolio | $ 3,000 | ||
Related party transaction, expenses from Transactions with related party, percent | 0.075% | ||
Greater than $5 billion | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from transactions with related party, amount of asset portfolio | $ 5,000 | ||
Related party transaction, expenses from Transactions with related party, percent | 0.025% | ||
High Yield Fixed Income | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 0.25% | ||
ETFs | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 0.10% | ||
Equities | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
Hedge funds | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
First Two Years of Funds Life | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
Fair Value After Two Years | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
First Year of Funds Life | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
Fair Value After One Year | |||
Related Party Transaction [Line Items] | |||
Related party transaction, expenses from Transactions with related party, percent | 1.00% | ||
Limited Liability Company [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Management Fees from Transactions with Related Party | 0.1 | 0.2 | |
Related Party Transaction Incentive Fees from Transactions with Related Party | 0.2 | ||
Limited Liability Company [Member] | Maximum | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction Incentive Fees from Transactions with Related Party | 0.1 | ||
Star and Shield Insurance Exchange [Member] | |||
Related Party Transaction [Line Items] | |||
Net written premiums | 2.8 | 17.3 | |
White Mountains Advisors L L C [Member] | |||
Related Party Transaction [Line Items] | |||
Asset management fee, treasury | $ 0.5 | 0.4 | $ 0.4 |
Prospective Partners LLC [Member] | Limited Liability Company [Member] | |||
Related Party Transaction [Line Items] | |||
Noninterest Expense Investment Advisory Fees | 0.4 | 2 | |
Share-based Compensation | $ 0.9 | $ 1.3 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2011 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||||
Operating Leases, Rent Expense, Net | $ 10.7 | $ 12 | $ 11.1 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 10.1 | |||
Operating Leases, Future Minimum Payments, Due in Two Years | 8.4 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 7.4 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 5.9 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 26.4 | |||
Proceeds from sale-leaseback transactions | $ 23.1 | |||
Sale-leaseback book value | 1.3 | |||
Capital lease obligation | 1.7 | |||
Capital lease asset | 2.4 | |||
Pending Guranty Fund Assessments | 8 | |||
Pending Litigation | Tribune Company Litigation | ||||
Loss Contingencies [Line Items] | ||||
Proceeds Common Stock, Litigation Settlement | 32 | |||
Estimated Litigation Liability | 0 | |||
Hedge funds and private equity funds | ||||
Loss Contingencies [Line Items] | ||||
Net asset value per share of unfunded commitments | $ 15 | $ 8.2 | ||
US Bancorp | ||||
Loss Contingencies [Line Items] | ||||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 5 years | |||
Fifth Third Bank | ||||
Loss Contingencies [Line Items] | ||||
Lessee Leasing Arrangements, Capital Leases, Term of Contract | 4 years |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings attributable to OneBeacon's common shareholders—basic and diluted (in millions): | |||
Net income from continuing operations attributable to OneBeacon's common shareholders | $ 107.4 | $ 37 | $ 53.5 |
Allocation of loss (income) for participating unvested restricted common shares | (0.5) | (0.2) | (0.4) |
Dividends paid on participating restricted common shares | (0.3) | (0.3) | (0.5) |
Total allocation to restricted common shares | (0.8) | (0.5) | (0.9) |
Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts | 106.6 | 36.5 | 52.6 |
Undistributed Earnings, Basic [Abstract] | |||
Net income from continuing operations attributable to OneBeacon's common shareholders, net of restricted common share amounts | 106.6 | 36.5 | 52.6 |
Dividends paid, net of restricted common share amounts | (78.9) | (79.7) | (79.5) |
Total undistributed (over-distributed) net earnings, net of restricted common share amounts | $ 27.7 | $ (43.2) | $ (26.9) |
Weighted Average Number of Shares Outstanding, Basic [Abstract] | |||
Total weighted average common shares outstanding | 94.4 | 95.3 | 95.3 |
Weighted average unvested restricted common shares | (0.4) | (0.5) | (0.6) |
Basic and diluted earnings (loss) per share denominator | 94 | 94.8 | 94.7 |
Earnings Per Share, Basic and Diluted, Other Disclosures [Abstract] | |||
Net income from continuing operations attributable to OneBeacon's common shareholders | $ 1.13 | $ 0.38 | $ 0.55 |
Dividends, per share, cash paid | (0.84) | (0.84) | (0.84) |
Undistributed (over-distributed) earnings | $ 0.29 | $ (0.46) | $ (0.29) |
Discontinued Operations (Additi
Discontinued Operations (Additional Disclosures) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 23, 2014 | Dec. 31, 2013 | |
Dispositions | |||||||||||||||
Unpaid loss and loss adjustment expense reserves | $ 1,365.6 | $ 1,389.8 | $ 1,342.2 | $ 1,365.6 | $ 1,389.8 | $ 1,342.2 | $ 1,054.3 | ||||||||
Fair Value Assets Measured on Recurring Basis Gain (Loss) Included in Earnings | 37.7 | (35.1) | |||||||||||||
Reinsurance recoverable on unpaid losses | 172.9 | 186 | 161.6 | 172.9 | 186 | 161.6 | |||||||||
Net (loss) gain from discontinued operations, net of tax | 0 | $ 0 | $ 0 | $ 0 | (0.1) | $ (0.1) | $ 0.1 | $ (0.1) | 0 | (0.2) | (20.6) | ||||
Loss and loss adjustment expenses | 656 | 700.7 | 815.1 | ||||||||||||
Loss and LAE incurred relating to prior year losses | $ 75.5 | $ 14.3 | $ 15.4 | $ (1.8) | 89.8 | ||||||||||
Workers’ compensation statutory discount rate | 2.50% | 2.50% | |||||||||||||
Reinsurance recoverables | 179.5 | 193.5 | $ 179.5 | $ 193.5 | |||||||||||
Reinsurance recoverable on paid losses | 6.6 | 6.6 | |||||||||||||
Other investments | 150.5 | 143 | 150.5 | 143 | |||||||||||
Segment, Discontinued Operations | |||||||||||||||
Dispositions | |||||||||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (20.6) | ||||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (28.9) | ||||||||||||||
Net (loss) gain from discontinued operations, net of tax | (0.5) | (1.8) | |||||||||||||
Loss and LAE incurred relating to prior year losses | 7.4 | ||||||||||||||
Loss and LAE incurred relating to prior year losses, net of tax | 4.8 | ||||||||||||||
(Loss) gain from sale of discontinued operations, net of tax | 0.3 | (18.8) | |||||||||||||
Runoff | Segment, Discontinued Operations | |||||||||||||||
Dispositions | |||||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 97.9 | ||||||||||||||
Net Loss from discontinued operations, net of tax | 63.7 | ||||||||||||||
Surplus Notes | Segment, Discontinued Operations | |||||||||||||||
Dispositions | |||||||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | 36.1 | ||||||||||||||
Investing, Financing and Corporate | |||||||||||||||
Dispositions | |||||||||||||||
Unpaid loss and loss adjustment expense reserves | 18.3 | 20.4 | 18.3 | 20.4 | |||||||||||
Loss and loss adjustment expenses | 0 | 0 | $ 0 | ||||||||||||
Reinsurance recoverables | 18.3 | 20.4 | 18.3 | 20.4 | |||||||||||
Surplus Notes | |||||||||||||||
Dispositions | |||||||||||||||
Surplus notes issued as seller financing in sale of discontinued operations | 101 | 101 | 101 | 101 | $ 101 | ||||||||||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | $ 71.9 | $ 51.5 | 71.9 | 51.5 | |||||||||||
Other investments | 64.9 | ||||||||||||||
Level 3 Inputs | Other investments | |||||||||||||||
Dispositions | |||||||||||||||
Fair Value Assets Measured on Recurring Basis Gain (Loss) Included in Earnings | $ 20.4 | $ (13.9) | |||||||||||||
Runoff | |||||||||||||||
Dispositions | |||||||||||||||
Surplus notes issued as seller financing in sale of discontinued operations | 101 | ||||||||||||||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Fair Value | $ 64.9 |
Discontinued Operations (Summar
Discontinued Operations (Summary of the Results of Operations) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Discontinued Operations | |||||||||||
Net written premiums | $ 1,100.7 | $ 1,136.6 | $ 1,216.9 | ||||||||
Revenues | |||||||||||
Earned premiums | 1,100.6 | 1,176.2 | 1,177.1 | ||||||||
Revenues | $ 267.9 | $ 307 | $ 309 | $ 310.5 | $ 296.2 | $ 267.8 | $ 314.2 | $ 308.2 | 1,194.4 | 1,186.4 | 1,266.7 |
Expenses | |||||||||||
Loss and loss adjustment expenses | 656 | 700.7 | 815.1 | ||||||||
Other underwriting expenses | 209 | 218.2 | 179.2 | ||||||||
Total expenses | 265.9 | 274.1 | 286 | 272.3 | 285.1 | 284.6 | 311.3 | 280.1 | 1,098.3 | 1,161.1 | 1,224.4 |
Tax (expense) benefit | 6.4 | (4.6) | 2 | 8.7 | 11.9 | 3.5 | 0.9 | (3.4) | 12.5 | 12.9 | 12.3 |
Net (loss) gain from discontinued operations, net of tax | $ 0 | $ 0 | $ 0 | $ 0 | $ (0.1) | $ (0.1) | $ 0.1 | $ (0.1) | $ 0 | (0.2) | (20.6) |
Segment, Discontinued Operations | |||||||||||
Discontinued Operations | |||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | (28.9) | ||||||||||
Expenses | |||||||||||
Net (loss) gain from discontinued operations, net of tax | (0.5) | (1.8) | |||||||||
(Loss) gain from sale of discontinued operations, net of tax | $ 0.3 | (18.8) | |||||||||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ (20.6) | ||||||||||
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | $ (0.21) | ||||||||||
Runoff | Segment, Discontinued Operations | |||||||||||
Discontinued Operations | |||||||||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 97.9 | ||||||||||
Expenses | |||||||||||
Loss from discontinued operations, net of tax | $ 63.7 |
Discontinued Operations (Loss p
Discontinued Operations (Loss per Share Related to Discontinued Operations) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Loss attributable to OneBeacon's common shareholders—basic and diluted (in millions): | |||||||||||
Allocation of loss for participating unvested restricted common shares | $ (0.5) | $ (0.2) | $ (0.4) | ||||||||
Net income (loss) attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | $ 107.4 | $ 36.8 | $ 32.9 |
Loss per share denominator—basic and diluted (in millions): | |||||||||||
Total weighted average common shares outstanding | 94.4 | 95.3 | 95.3 | ||||||||
Weighted average unvested restricted common shares | (0.4) | (0.5) | (0.6) | ||||||||
Basic and diluted earnings (loss) per share denominator | 94 | 94.8 | 94.7 | ||||||||
Loss per share attributable to OneBeacon's common shareholders—basic and diluted (in dollars): | |||||||||||
Net loss from discontinued operations attributable to OneBeacon's common shareholders per share | $ 0.09 | $ 0.30 | $ 0.26 | $ 0.49 | $ 0.24 | $ (0.14) | $ 0.03 | $ 0.25 | $ 1.13 | $ 0.38 | $ 0.34 |
Discontinued Operations Surplus
Discontinued Operations Surplus Notes (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 23, 2014 |
Surplus Note Valuation [Line Items] | |||
Proposed Redemption Payment Percentage | 200.00% | ||
Other investments | $ 150.5 | $ 143 | |
Statutory Excess Capital Percentage | 250.00% | ||
Pari passu | |||
Surplus Note Valuation [Line Items] | |||
Surplus Note, Interest Rate | 6.00% | ||
Seller priority | |||
Surplus Note Valuation [Line Items] | |||
Surplus Note, Interest Rate | 6.00% | ||
Surplus Notes | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | 101 | 101 | $ 101 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (29.1) | (49.5) | (36.1) |
Other investments | 64.9 | ||
Surplus Notes | Pari passu | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | 43.1 | 43.1 | 43.1 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (22.3) | (29.6) | (22.1) |
Other investments | 21 | ||
Surplus Notes | Seller priority | |||
Surplus Note Valuation [Line Items] | |||
Surplus notes issued as seller financing in sale of discontinued operations | 57.9 | 57.9 | 57.9 |
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (6.8) | (19.9) | (14) |
Other investments | 43.9 | ||
Surplus Notes | Current market rates on public debt and contract-based repayments [Member] | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | 5.1 | (15.1) | (6.8) |
Surplus Notes | Current market rates on public debt and contract-based repayments [Member] | Pari passu | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (1.1) | (14.7) | (8.4) |
Surplus Notes | Current market rates on public debt and contract-based repayments [Member] | Seller priority | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | 6.2 | (0.4) | 1.6 |
Surplus Notes | Regulatory approval [Member] | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (15.6) | (24.2) | (12.6) |
Surplus Notes | Regulatory approval [Member] | Pari passu | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (15.4) | (12.5) | (8) |
Surplus Notes | Regulatory approval [Member] | Seller priority | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (0.2) | (11.7) | (4.6) |
Surplus Notes | Liquidity adjustment [Member] | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (18.6) | (10.2) | (16.7) |
Surplus Notes | Liquidity adjustment [Member] | Pari passu | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | (5.8) | (2.4) | (5.7) |
Surplus Notes | Liquidity adjustment [Member] | Seller priority | |||
Surplus Note Valuation [Line Items] | |||
Surplus Notes Issued As Seller Financing In Sale Of Discontinued Operations, Adjustments to Fair Value | $ (12.8) | $ (7.8) | $ (11) |
Consolidating Financial Info111
Consolidating Financial Information (Consolidating Balance Sheet) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Investment Securities: | ||||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | $ 2,169.1 | $ 2,080.5 | ||
Short-term investments, at amortized cost (which approximates fair value) | 112.1 | 69.2 | ||
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 188.7 | 298.7 | ||
Other investments | 150.5 | 143 | ||
Total investment securities | 2,620.4 | 2,591.4 | ||
Cash | 69.6 | 95.2 | $ 87 | $ 168.1 |
Reinsurance recoverables | 179.5 | 193.5 | ||
Premiums receivable | 228.3 | 219 | ||
Deferred acquisition costs | 96.3 | 100.7 | ||
Ceded unearned premiums | 44.2 | 29.5 | ||
Net deferred tax asset | 126.7 | 140.2 | ||
Investment income accrued | 11.3 | 10.1 | ||
Accounts receivable on unsettled investment sales | 1.4 | 30.5 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 212.2 | 192.5 | ||
Total assets | 3,589.9 | 3,602.6 | ||
Liabilities | ||||
Unpaid loss and loss adjustment expense reserves | 1,365.6 | 1,389.8 | 1,342.2 | 1,054.3 |
Unearned premiums | 575.1 | 560.3 | ||
Funds held under insurance contracts | 153 | 137.7 | ||
Debt | 273.2 | 272.9 | ||
Other liabilities | 197.8 | 237.4 | ||
Total liabilities | 2,564.7 | 2,598.1 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 | ||
Noncontrolling interests | 3.9 | 3.6 | ||
Total OneBeacon's common shareholders' equity and noncontrolling interests | 1,025.2 | 1,004.5 | 1,049.3 | 1,106.8 |
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | 3,589.9 | 3,602.6 | ||
The Company (guarantor) | ||||
Investment Securities: | ||||
Short-term investments, at amortized cost (which approximates fair value) | 2.5 | 4.4 | ||
Cash | 0 | 0 | 0 | |
Investments in subsidiaries | 1,018.8 | 996.9 | ||
Other assets | 0.4 | 0.5 | ||
Total assets | 1,021.7 | 1,001.8 | ||
Liabilities | ||||
Total liabilities | 0.4 | 0.9 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 | ||
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | $ 1,021.7 | 1,001.8 | ||
OBH (issuer) | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Ownership interest (as a percent) | 100.00% | |||
Reportable Legal Entities | The Company (guarantor) | ||||
Investment Securities: | ||||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | $ 0 | 0 | ||
Short-term investments, at amortized cost (which approximates fair value) | 2.5 | 4.4 | ||
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 0 | 0 | ||
Other investments | 0 | 0 | ||
Total investment securities | 2.5 | 4.4 | ||
Cash | 0 | 0 | 0 | 0 |
Reinsurance recoverables | 0 | 0 | ||
Premiums receivable | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Ceded unearned premiums | 0 | 0 | ||
Net deferred tax asset | 0 | 0 | ||
Investment income accrued | 0 | 0 | ||
Accounts receivable on unsettled investment sales | 0 | 0 | ||
Investments in subsidiaries | 1,018.8 | 996.9 | ||
Other assets | 0.4 | 0.5 | ||
Total assets | 1,021.7 | 1,001.8 | ||
Liabilities | ||||
Unpaid loss and loss adjustment expense reserves | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Funds held under insurance contracts | 0 | 0 | ||
Debt | 0 | 0 | ||
Other liabilities | 0.4 | 0.9 | ||
Total liabilities | 0.4 | 0.9 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 | ||
Noncontrolling interests | 0 | 0 | ||
Total OneBeacon's common shareholders' equity and noncontrolling interests | 1,021.3 | 1,000.9 | ||
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | 1,021.7 | 1,001.8 | ||
Reportable Legal Entities | Non-guarantor subsidiaries | ||||
Investment Securities: | ||||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | 2,169.1 | 2,074.6 | ||
Short-term investments, at amortized cost (which approximates fair value) | 108.1 | 64.1 | ||
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 188.7 | 298.7 | ||
Other investments | 150.5 | 143 | ||
Total investment securities | 2,616.4 | 2,580.4 | ||
Cash | 69.5 | 94.6 | 87 | 166.6 |
Reinsurance recoverables | 179.5 | 193.5 | ||
Premiums receivable | 228.3 | 219 | ||
Deferred acquisition costs | 96.3 | 100.7 | ||
Ceded unearned premiums | 44.2 | 29.5 | ||
Net deferred tax asset | 126.6 | 140.1 | ||
Investment income accrued | 11.3 | 10.1 | ||
Accounts receivable on unsettled investment sales | 1.4 | 30.5 | ||
Investments in subsidiaries | 0 | 0 | ||
Other assets | 211.4 | 190.6 | ||
Total assets | 3,584.9 | 3,589 | ||
Liabilities | ||||
Unpaid loss and loss adjustment expense reserves | 1,365.6 | 1,389.8 | ||
Unearned premiums | 575.1 | 560.3 | ||
Funds held under insurance contracts | 153 | 137.7 | ||
Debt | 0 | 0 | ||
Other liabilities | 190.6 | 230.4 | ||
Total liabilities | 2,284.3 | 2,318.2 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | 1,296.7 | 1,267.2 | ||
Noncontrolling interests | 3.9 | 3.6 | ||
Total OneBeacon's common shareholders' equity and noncontrolling interests | 1,300.6 | 1,270.8 | ||
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | 3,584.9 | 3,589 | ||
Reportable Legal Entities | OBH (issuer) | ||||
Investment Securities: | ||||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | 0 | 5.9 | ||
Short-term investments, at amortized cost (which approximates fair value) | 1.5 | 0.7 | ||
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 0 | 0 | ||
Other investments | 0 | 0 | ||
Total investment securities | 1.5 | 6.6 | ||
Cash | 0.1 | 0.6 | 0 | 1.5 |
Reinsurance recoverables | 0 | 0 | ||
Premiums receivable | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Ceded unearned premiums | 0 | 0 | ||
Net deferred tax asset | 0 | 0 | ||
Investment income accrued | 0 | 0 | ||
Accounts receivable on unsettled investment sales | 0 | 0 | ||
Investments in subsidiaries | 989.4 | 951.3 | ||
Other assets | 0.4 | 1.4 | ||
Total assets | 991.4 | 959.9 | ||
Liabilities | ||||
Unpaid loss and loss adjustment expense reserves | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Funds held under insurance contracts | 0 | 0 | ||
Debt | 273.2 | 272.9 | ||
Other liabilities | 6.8 | 6.1 | ||
Total liabilities | 280 | 279 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | 711.4 | 680.9 | ||
Noncontrolling interests | 0 | 0 | ||
Total OneBeacon's common shareholders' equity and noncontrolling interests | 711.4 | 680.9 | ||
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | 991.4 | 959.9 | ||
Consolidating adjustments | ||||
Investment Securities: | ||||
Fixed maturity investments, at fair value (amortized cost: $2,164.4 in 2016 and $2,078.3 in 2015) | 0 | 0 | ||
Short-term investments, at amortized cost (which approximates fair value) | 0 | 0 | ||
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 0 | 0 | ||
Other investments | 0 | 0 | ||
Total investment securities | 0 | 0 | ||
Cash | 0 | 0 | $ 0 | $ 0 |
Reinsurance recoverables | 0 | 0 | ||
Premiums receivable | 0 | 0 | ||
Deferred acquisition costs | 0 | 0 | ||
Ceded unearned premiums | 0 | 0 | ||
Net deferred tax asset | 0.1 | 0.1 | ||
Investment income accrued | 0 | 0 | ||
Accounts receivable on unsettled investment sales | 0 | 0 | ||
Investments in subsidiaries | (2,008.2) | (1,948.2) | ||
Other assets | 0 | 0 | ||
Total assets | (2,008.1) | (1,948.1) | ||
Liabilities | ||||
Unpaid loss and loss adjustment expense reserves | 0 | 0 | ||
Unearned premiums | 0 | 0 | ||
Funds held under insurance contracts | 0 | 0 | ||
Debt | 0 | 0 | ||
Other liabilities | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
OneBeacon's common shareholders' equity and noncontrolling interests | ||||
Total OneBeacon's common shareholders' equity | (2,008.1) | (1,948.1) | ||
Noncontrolling interests | 0 | 0 | ||
Total OneBeacon's common shareholders' equity and noncontrolling interests | (2,008.1) | (1,948.1) | ||
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | $ (2,008.1) | $ (1,948.1) |
Consolidating Financial Info112
Consolidating Financial Information (Consolidating Statement of Operations and Comprehensive (Loss)) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues | |||||||||||
Earned premiums | $ 1,100.6 | $ 1,176.2 | $ 1,177.1 | ||||||||
Net investment income | 50.6 | 45.9 | 43.4 | ||||||||
Net realized and change in unrealized investment gains | 37.7 | (35.1) | 40.4 | ||||||||
Net other revenues (expenses) | 5.5 | (0.6) | 5.8 | ||||||||
Total revenues | $ 267.9 | $ 307 | $ 309 | $ 310.5 | $ 296.2 | $ 267.8 | $ 314.2 | $ 308.2 | 1,194.4 | 1,186.4 | 1,266.7 |
Expenses | |||||||||||
Loss and loss adjustment expenses | 656 | 700.7 | 815.1 | ||||||||
Policy acquisition expenses | 206 | 213.8 | 203.3 | ||||||||
Other underwriting expenses | 209 | 218.2 | 179.2 | ||||||||
General and administrative expenses | 14.2 | 15.4 | 13.8 | ||||||||
Interest expense | 13.1 | 13 | 13 | ||||||||
Total expenses | 265.9 | 274.1 | 286 | 272.3 | 285.1 | 284.6 | 311.3 | 280.1 | 1,098.3 | 1,161.1 | 1,224.4 |
Pre-tax income from continuing operations | 2 | 32.9 | 23 | 38.2 | 11.1 | (16.8) | 2.9 | 28.1 | 96.1 | 25.3 | 42.3 |
Income tax benefit | 6.4 | (4.6) | 2 | 8.7 | 11.9 | 3.5 | 0.9 | (3.4) | 12.5 | 12.9 | 12.3 |
Net income from continuing operations | 8.4 | 28.3 | 25 | 46.9 | 23 | (13.3) | 3.8 | 24.7 | 108.6 | 38.2 | 54.6 |
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.1) | (0.1) | 0.1 | (0.1) | 0 | (0.2) | (20.6) |
(Loss) income before equity in (losses) earnings of unconsolidated affiliates | 108.6 | 38 | 34 | ||||||||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Net income, including noncontrolling interests | 8.4 | 28.3 | 25 | 46.9 | 22.9 | (13.4) | 3.9 | 24.6 | 108.6 | 38 | 34 |
Less: Net income attributable to noncontrolling interests | (0.2) | 0 | (0.5) | (0.5) | (0.2) | 0 | (0.5) | (0.5) | (1.2) | (1.2) | (1.1) |
Net income attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | 107.4 | 36.8 | 32.9 |
Net change in benefit plan assets and obligations, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | 108.4 | 36.8 | 20.9 | ||||||||
The Company (guarantor) | |||||||||||
Revenues | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Total expenses | 4.5 | 4.8 | 5.1 | ||||||||
Pre-tax income from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Income tax benefit | 0 | 0 | 0 | ||||||||
Net income from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Equity in earnings of subsidiaries, net of tax | 111.9 | 41.6 | 38 | ||||||||
Net income attributable to OneBeacon's common shareholders | 107.4 | 36.8 | 32.9 | ||||||||
Net change in benefit plan assets and obligations, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | 108.4 | 36.8 | 20.9 | ||||||||
Reportable Legal Entities | The Company (guarantor) | |||||||||||
Revenues | |||||||||||
Earned premiums | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0 | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | ||||||||
Net other revenues (expenses) | 0 | 0 | 0 | ||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Policy acquisition expenses | 0 | 0 | 0 | ||||||||
Other underwriting expenses | 0 | 0 | 0 | ||||||||
General and administrative expenses | 4.5 | 4.8 | 5.1 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Total expenses | 4.5 | 4.8 | 5.1 | ||||||||
Pre-tax income from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Income tax benefit | 0 | 0 | 0 | ||||||||
Net income from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
(Loss) income before equity in (losses) earnings of unconsolidated affiliates | (4.5) | (4.8) | (5.1) | ||||||||
Equity in earnings of subsidiaries, net of tax | 111.9 | 41.6 | 38 | ||||||||
Net income, including noncontrolling interests | 107.4 | 36.8 | 32.9 | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to OneBeacon's common shareholders | 107.4 | 36.8 | 32.9 | ||||||||
Net change in benefit plan assets and obligations, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | 108.4 | 36.8 | 20.9 | ||||||||
Reportable Legal Entities | Non-guarantor subsidiaries | |||||||||||
Revenues | |||||||||||
Earned premiums | 1,100.6 | 1,176.2 | 1,177.1 | ||||||||
Net investment income | 50.6 | 45.9 | 44.4 | ||||||||
Net realized and change in unrealized investment gains | 37.7 | (35.1) | 44.6 | ||||||||
Net other revenues (expenses) | 5.5 | (0.6) | 5.8 | ||||||||
Total revenues | 1,194.4 | 1,186.4 | 1,271.9 | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses | 656 | 700.7 | 815.1 | ||||||||
Policy acquisition expenses | 206 | 213.8 | 203.3 | ||||||||
Other underwriting expenses | 209 | 218.2 | 179.2 | ||||||||
General and administrative expenses | 9.3 | 10.3 | 8.4 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Total expenses | 1,080.3 | 1,143 | 1,206 | ||||||||
Pre-tax income from continuing operations | 114.1 | 43.4 | 65.9 | ||||||||
Income tax benefit | 7.7 | 8.2 | 5.8 | ||||||||
Net income from continuing operations | 121.8 | 51.6 | 71.7 | ||||||||
Net loss from discontinued operations, net of tax | 0 | (0.2) | (20.6) | ||||||||
(Loss) income before equity in (losses) earnings of unconsolidated affiliates | 121.8 | 51.4 | 51.1 | ||||||||
Equity in earnings of subsidiaries, net of tax | 0 | 0 | 0 | ||||||||
Net income, including noncontrolling interests | 121.8 | 51.4 | 51.1 | ||||||||
Less: Net income attributable to noncontrolling interests | (1.2) | (1.2) | (1.1) | ||||||||
Net income attributable to OneBeacon's common shareholders | 120.6 | 50.2 | 50 | ||||||||
Net change in benefit plan assets and obligations, net of tax | 0 | 0 | 0 | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | 120.6 | 50.2 | 50 | ||||||||
Reportable Legal Entities | OBH (issuer) | |||||||||||
Revenues | |||||||||||
Earned premiums | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | 0.1 | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | ||||||||
Net other revenues (expenses) | 0 | 0 | (3.7) | ||||||||
Total revenues | 0 | 0 | (3.6) | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Policy acquisition expenses | 0 | 0 | 0 | ||||||||
Other underwriting expenses | 0 | 0 | 0 | ||||||||
General and administrative expenses | 0.4 | 0.3 | 0.3 | ||||||||
Interest expense | 13.1 | 13 | 14.1 | ||||||||
Total expenses | 13.5 | 13.3 | 14.4 | ||||||||
Pre-tax income from continuing operations | (13.5) | (13.3) | (18) | ||||||||
Income tax benefit | 4.8 | 4.7 | 6.3 | ||||||||
Net income from continuing operations | (8.7) | (8.6) | (11.7) | ||||||||
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
(Loss) income before equity in (losses) earnings of unconsolidated affiliates | (8.7) | (8.6) | (11.7) | ||||||||
Equity in earnings of subsidiaries, net of tax | 59.2 | 8.3 | 9.5 | ||||||||
Net income, including noncontrolling interests | 50.5 | (0.3) | (2.2) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to OneBeacon's common shareholders | 50.5 | (0.3) | (2.2) | ||||||||
Net change in benefit plan assets and obligations, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | 51.5 | (0.3) | (14.2) | ||||||||
Consolidating adjustments | |||||||||||
Revenues | |||||||||||
Earned premiums | 0 | 0 | 0 | ||||||||
Net investment income | 0 | 0 | (1.1) | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | (4.2) | ||||||||
Net other revenues (expenses) | 0 | 0 | 3.7 | ||||||||
Total revenues | 0 | 0 | (1.6) | ||||||||
Expenses | |||||||||||
Loss and loss adjustment expenses | 0 | 0 | 0 | ||||||||
Policy acquisition expenses | 0 | 0 | 0 | ||||||||
Other underwriting expenses | 0 | 0 | 0 | ||||||||
General and administrative expenses | 0 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | (1.1) | ||||||||
Total expenses | 0 | 0 | (1.1) | ||||||||
Pre-tax income from continuing operations | 0 | 0 | (0.5) | ||||||||
Income tax benefit | 0 | 0 | 0.2 | ||||||||
Net income from continuing operations | 0 | 0 | (0.3) | ||||||||
Net loss from discontinued operations, net of tax | 0 | 0 | 0 | ||||||||
(Loss) income before equity in (losses) earnings of unconsolidated affiliates | 0 | 0 | (0.3) | ||||||||
Equity in earnings of subsidiaries, net of tax | (171.1) | (49.9) | (47.5) | ||||||||
Net income, including noncontrolling interests | (171.1) | (49.9) | (47.8) | ||||||||
Less: Net income attributable to noncontrolling interests | 0 | 0 | 0 | ||||||||
Net income attributable to OneBeacon's common shareholders | (171.1) | (49.9) | (47.8) | ||||||||
Net change in benefit plan assets and obligations, net of tax | (1) | 0 | 12 | ||||||||
Comprehensive income attributable to OneBeacon's common shareholders | $ (172.1) | $ (49.9) | $ (35.8) |
Consolidating Financial Info113
Consolidating Financial Information (Consolidating Statement of Cash Flows) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net income including noncontrolling interests | $ 8.4 | $ 28.3 | $ 25 | $ 46.9 | $ 22.9 | $ (13.4) | $ 3.9 | $ 24.6 | $ 108.6 | $ 38 | $ 34 |
Undistributed earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net loss from discontinued operations | 0 | $ 0 | $ 0 | 0 | 0.1 | $ 0.1 | $ (0.1) | 0.1 | 0 | 0.2 | 20.6 |
Net realized and change in unrealized investment gains | (37.7) | 35.1 | (40.4) | ||||||||
Net adjustment to gain on sale of business | (0.5) | 3.7 | 0 | ||||||||
Deferred income tax expense (benefit) | 15.4 | (5.8) | (19) | ||||||||
Dividends received from subsidiaries | 0 | 0 | 0 | ||||||||
Other operating items: | |||||||||||
Net change in loss and LAE reserves | (24.2) | 47.6 | 287.9 | ||||||||
Net change in unearned premiums | (14.8) | 28 | (43.4) | ||||||||
Net change in ceded unearned premium | (14.7) | (11.6) | (3.6) | ||||||||
Net change in premiums receivable | (9.3) | 22.5 | (13.3) | ||||||||
Net change in reinsurance recoverable on paid and unpaid losses | 14 | (19.7) | (83.9) | ||||||||
Net change in funds held under reinsurance contracts | 0 | 37.1 | (35.3) | ||||||||
Net change in funds held under insurance contracts | 15.3 | 56.7 | 17.7 | ||||||||
Net change in other assets and liabilities | (34.4) | 16.6 | (56.1) | ||||||||
Net cash provided from operations—continuing operations | 47.3 | 192.4 | 152 | ||||||||
Net cash used for operations—discontinued operations | 0 | (0.5) | (54.5) | ||||||||
Net cash provided from operations | 47.3 | 191.9 | 97.5 | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | (42.9) | 133.1 | (65.5) | ||||||||
Maturities of fixed maturity investments | 543.5 | 262.4 | 396.4 | ||||||||
Sales of fixed maturity investments | 752.9 | 763.5 | 1,843.1 | ||||||||
Sales of common equity securities | 384.9 | 345.6 | 240.2 | ||||||||
Return of capital and distributions of other investments | 11.6 | 40.5 | 53.4 | ||||||||
Purchases of fixed maturity investments | (1,395.9) | (1,333.5) | (2,206.8) | ||||||||
Purchases of common equity securities | (260) | (323.5) | (202.4) | ||||||||
Contributions for other investments | (1) | (4.2) | (81.9) | ||||||||
Net change in unsettled investment purchases and sales | 29.1 | (23.8) | (15) | ||||||||
Proceeds from sale of property and equipment | 0 | 56.8 | 0 | ||||||||
Net acquisitions of property and equipment | (2.7) | (11.5) | (2.2) | ||||||||
Capital contribution from parent | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities—continuing operations | 19.5 | (94.6) | (40.7) | ||||||||
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities | 19.5 | (94.6) | (40.7) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of debt | 0 | ||||||||||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) | ||||||||
Cash dividends paid to parent | 0 | 0 | 0 | ||||||||
Proceeds from Contributed Capital | 0 | ||||||||||
Capital contribution to subsidiary | 0 | 0 | |||||||||
Repurchases and retirements of common stock | (11.5) | (3.7) | (1.8) | ||||||||
Payments on capital lease obligation | (1.7) | (5.4) | (5.3) | ||||||||
Net cash used for financing activities—continuing operations | (92.4) | (89.1) | (87.1) | ||||||||
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash used for financing activities | (92.4) | (89.1) | (87.1) | ||||||||
Net (decrease) increase in cash during period | (25.6) | 8.2 | (30.3) | ||||||||
Cash transferred with sale of business | 0 | 0 | (50.8) | ||||||||
Net (decrease) increase after cash transferred with sale of business | (25.6) | 8.2 | (81.1) | ||||||||
Cash balance at beginning of period | 95.2 | 87 | 95.2 | 87 | 168.1 | ||||||
Cash balance at end of period | 69.6 | 95.2 | 69.6 | 95.2 | 87 | ||||||
The Company (guarantor) | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Undistributed earnings from subsidiaries | (111.9) | (41.6) | (38) | ||||||||
Net adjustment to gain on sale of business | 0 | ||||||||||
Dividends received from subsidiaries | 91 | 72 | 90.4 | ||||||||
Other operating items: | |||||||||||
Net change in other assets and liabilities | 2.3 | 2.5 | 1.9 | ||||||||
Net cash provided from operations | 88.8 | 69.7 | 87.2 | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | 1.9 | 14 | (5.4) | ||||||||
Net cash provided from (used for) investing activities | 1.9 | 14 | (5.4) | ||||||||
Cash flows from financing activities: | |||||||||||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) | ||||||||
Net cash used for financing activities | (90.7) | (83.7) | (81.8) | ||||||||
Net (decrease) increase after cash transferred with sale of business | 0 | 0 | 0 | ||||||||
Cash balance at beginning of period | 0 | 0 | 0 | 0 | |||||||
Cash balance at end of period | 0 | 0 | 0 | 0 | 0 | ||||||
OBH (issuer) | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net adjustment to gain on sale of business | 0 | ||||||||||
Reportable Legal Entities | The Company (guarantor) | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net income including noncontrolling interests | 107.4 | 36.8 | 32.9 | ||||||||
Undistributed earnings from subsidiaries | (111.9) | (41.6) | (38) | ||||||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | ||||||||
Net adjustment to gain on sale of business | 0 | 0 | |||||||||
Deferred income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Dividends received from subsidiaries | 91 | 72 | 90.4 | ||||||||
Other operating items: | |||||||||||
Net change in loss and LAE reserves | 0 | 0 | 0 | ||||||||
Net change in unearned premiums | 0 | 0 | 0 | ||||||||
Net change in ceded unearned premium | 0 | 0 | 0 | ||||||||
Net change in premiums receivable | 0 | 0 | 0 | ||||||||
Net change in reinsurance recoverable on paid and unpaid losses | 0 | 0 | 0 | ||||||||
Net change in funds held under reinsurance contracts | 0 | 0 | |||||||||
Net change in funds held under insurance contracts | 0 | 0 | 0 | ||||||||
Net change in other assets and liabilities | 2.3 | 2.5 | 1.9 | ||||||||
Net cash provided from operations—continuing operations | 88.8 | 69.7 | 87.2 | ||||||||
Net cash used for operations—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from operations | 88.8 | 69.7 | 87.2 | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | 1.9 | 14 | (5.4) | ||||||||
Maturities of fixed maturity investments | 0 | 0 | 0 | ||||||||
Sales of fixed maturity investments | 0 | 0 | 0 | ||||||||
Sales of common equity securities | 0 | 0 | 0 | ||||||||
Return of capital and distributions of other investments | 0 | 0 | 0 | ||||||||
Purchases of fixed maturity investments | 0 | 0 | 0 | ||||||||
Purchases of common equity securities | 0 | 0 | 0 | ||||||||
Contributions for other investments | 0 | 0 | 0 | ||||||||
Net change in unsettled investment purchases and sales | 0 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 0 | ||||||||||
Net acquisitions of property and equipment | 0 | 0 | 0 | ||||||||
Capital contribution from parent | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities—continuing operations | 1.9 | 14 | (5.4) | ||||||||
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities | 1.9 | 14 | (5.4) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of debt | 0 | ||||||||||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) | ||||||||
Cash dividends paid to parent | 0 | 0 | 0 | ||||||||
Proceeds from Contributed Capital | 0 | ||||||||||
Capital contribution to subsidiary | 0 | 0 | |||||||||
Repurchases and retirements of common stock | (11.5) | (3.7) | (1.8) | ||||||||
Payments on capital lease obligation | 0 | 0 | 0 | ||||||||
Net cash used for financing activities—continuing operations | (90.7) | (83.7) | (81.8) | ||||||||
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash used for financing activities | (90.7) | (83.7) | (81.8) | ||||||||
Net (decrease) increase in cash during period | 0 | ||||||||||
Cash transferred with sale of business | 0 | ||||||||||
Net (decrease) increase after cash transferred with sale of business | 0 | 0 | 0 | ||||||||
Cash balance at beginning of period | 0 | 0 | 0 | 0 | 0 | ||||||
Cash balance at end of period | 0 | 0 | 0 | 0 | 0 | ||||||
Reportable Legal Entities | Non-guarantor subsidiaries | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net income including noncontrolling interests | 121.8 | 51.4 | 51.1 | ||||||||
Undistributed earnings from subsidiaries | 0 | 0 | 0 | ||||||||
Net loss from discontinued operations | 0 | 0.2 | 20.6 | ||||||||
Net realized and change in unrealized investment gains | (37.7) | 35.1 | (44.6) | ||||||||
Net adjustment to gain on sale of business | (0.5) | 3.7 | (3.7) | ||||||||
Deferred income tax expense (benefit) | 15.4 | (5.8) | (18.8) | ||||||||
Dividends received from subsidiaries | 4.5 | 99.9 | 15 | ||||||||
Other operating items: | |||||||||||
Net change in loss and LAE reserves | (24.2) | 47.6 | 287.9 | ||||||||
Net change in unearned premiums | (14.8) | 28 | (43.4) | ||||||||
Net change in ceded unearned premium | (14.7) | (11.6) | (3.6) | ||||||||
Net change in premiums receivable | (9.3) | 22.5 | (13.3) | ||||||||
Net change in reinsurance recoverable on paid and unpaid losses | 14 | (19.7) | (83.9) | ||||||||
Net change in funds held under reinsurance contracts | 37.1 | (35.3) | |||||||||
Net change in funds held under insurance contracts | 15.3 | 56.7 | 17.7 | ||||||||
Net change in other assets and liabilities | (38.6) | 13.6 | (49.6) | ||||||||
Net cash provided from operations—continuing operations | 60.8 | 302.7 | 182.9 | ||||||||
Net cash used for operations—discontinued operations | 0 | (0.5) | (54.5) | ||||||||
Net cash provided from operations | 60.8 | 302.2 | 128.4 | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | (44) | 118.5 | (62.8) | ||||||||
Maturities of fixed maturity investments | 543.5 | 262.4 | 396.4 | ||||||||
Sales of fixed maturity investments | 771.2 | 491.5 | 1,927.9 | ||||||||
Sales of common equity securities | 384.9 | 345.6 | 240.2 | ||||||||
Return of capital and distributions of other investments | 11.6 | 40.5 | 53.4 | ||||||||
Purchases of fixed maturity investments | (1,420.1) | (1,055.3) | (2,265.1) | ||||||||
Purchases of common equity securities | (260) | (323.5) | (202.4) | ||||||||
Contributions for other investments | (1) | (4.2) | (81.9) | ||||||||
Net change in unsettled investment purchases and sales | 29.1 | (23.8) | (15) | ||||||||
Proceeds from sale of property and equipment | 56.8 | ||||||||||
Net acquisitions of property and equipment | (2.7) | (11.5) | (2.2) | ||||||||
Capital contribution from parent | 27.3 | 2.2 | 70 | ||||||||
Net cash provided from (used for) investing activities—continuing operations | 39.8 | (100.8) | 58.5 | ||||||||
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities | 39.8 | (100.8) | 58.5 | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of debt | 0 | ||||||||||
Cash dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Cash dividends paid to parent | (95.5) | (182.9) | (140.4) | ||||||||
Proceeds from Contributed Capital | (70) | ||||||||||
Capital contribution to subsidiary | (28.5) | (5.5) | |||||||||
Repurchases and retirements of common stock | 0 | 0 | 0 | ||||||||
Payments on capital lease obligation | (1.7) | (5.4) | (5.3) | ||||||||
Net cash used for financing activities—continuing operations | (125.7) | (193.8) | (215.7) | ||||||||
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash used for financing activities | (125.7) | (193.8) | (215.7) | ||||||||
Net (decrease) increase in cash during period | (28.8) | ||||||||||
Cash transferred with sale of business | (50.8) | ||||||||||
Net (decrease) increase after cash transferred with sale of business | (25.1) | 7.6 | (79.6) | ||||||||
Cash balance at beginning of period | 94.6 | 87 | 94.6 | 87 | 166.6 | ||||||
Cash balance at end of period | 69.5 | 94.6 | 69.5 | 94.6 | 87 | ||||||
Reportable Legal Entities | OBH (issuer) | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net income including noncontrolling interests | 50.5 | (0.3) | (2.2) | ||||||||
Undistributed earnings from subsidiaries | (59.2) | (8.3) | (9.5) | ||||||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 0 | ||||||||
Net adjustment to gain on sale of business | 0 | 3.7 | |||||||||
Deferred income tax expense (benefit) | 0 | 0 | 0 | ||||||||
Dividends received from subsidiaries | 4.5 | 110.9 | 50 | ||||||||
Other operating items: | |||||||||||
Net change in loss and LAE reserves | 0 | 0 | 0 | ||||||||
Net change in unearned premiums | 0 | 0 | 0 | ||||||||
Net change in ceded unearned premium | 0 | 0 | 0 | ||||||||
Net change in premiums receivable | 0 | 0 | 0 | ||||||||
Net change in reinsurance recoverable on paid and unpaid losses | 0 | 0 | 0 | ||||||||
Net change in funds held under reinsurance contracts | 0 | 0 | |||||||||
Net change in funds held under insurance contracts | 0 | 0 | 0 | ||||||||
Net change in other assets and liabilities | 1.9 | 0.5 | (1.9) | ||||||||
Net cash provided from operations—continuing operations | (2.3) | 102.8 | 40.1 | ||||||||
Net cash used for operations—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from operations | (2.3) | 102.8 | 40.1 | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | (0.8) | 0.6 | 2.7 | ||||||||
Maturities of fixed maturity investments | 0 | 0 | 0 | ||||||||
Sales of fixed maturity investments | 24.2 | 88.7 | 80.3 | ||||||||
Sales of common equity securities | 0 | 0 | 0 | ||||||||
Return of capital and distributions of other investments | 0 | 0 | 0 | ||||||||
Purchases of fixed maturity investments | (18.3) | (94.9) | (80.9) | ||||||||
Purchases of common equity securities | 0 | 0 | 0 | ||||||||
Contributions for other investments | 0 | 0 | 0 | ||||||||
Net change in unsettled investment purchases and sales | 0 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 0 | ||||||||||
Net acquisitions of property and equipment | 0 | 0 | 0 | ||||||||
Capital contribution from parent | 28.5 | 5.5 | 70 | ||||||||
Net cash provided from (used for) investing activities—continuing operations | 33.6 | (0.1) | 72.1 | ||||||||
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities | 33.6 | (0.1) | 72.1 | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of debt | (28.7) | ||||||||||
Cash dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Cash dividends paid to parent | (4.5) | (99.9) | (15) | ||||||||
Proceeds from Contributed Capital | (70) | ||||||||||
Capital contribution to subsidiary | (27.3) | (2.2) | |||||||||
Repurchases and retirements of common stock | 0 | 0 | 0 | ||||||||
Payments on capital lease obligation | 0 | 0 | 0 | ||||||||
Net cash used for financing activities—continuing operations | (31.8) | (102.1) | (113.7) | ||||||||
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash used for financing activities | (31.8) | (102.1) | (113.7) | ||||||||
Net (decrease) increase in cash during period | (1.5) | ||||||||||
Cash transferred with sale of business | 0 | ||||||||||
Net (decrease) increase after cash transferred with sale of business | (0.5) | 0.6 | (1.5) | ||||||||
Cash balance at beginning of period | 0.6 | 0 | 0.6 | 0 | 1.5 | ||||||
Cash balance at end of period | 0.1 | 0.6 | 0.1 | 0.6 | 0 | ||||||
Consolidating adjustments | |||||||||||
Charges (credits) to reconcile net income to cash flows provided from operations: | |||||||||||
Net income including noncontrolling interests | (171.1) | (49.9) | (47.8) | ||||||||
Undistributed earnings from subsidiaries | 171.1 | 49.9 | 47.5 | ||||||||
Net loss from discontinued operations | 0 | 0 | 0 | ||||||||
Net realized and change in unrealized investment gains | 0 | 0 | 4.2 | ||||||||
Net adjustment to gain on sale of business | 0 | 0 | 0 | ||||||||
Deferred income tax expense (benefit) | 0 | 0 | (0.2) | ||||||||
Dividends received from subsidiaries | (100) | (282.8) | (155.4) | ||||||||
Other operating items: | |||||||||||
Net change in loss and LAE reserves | 0 | 0 | 0 | ||||||||
Net change in unearned premiums | 0 | 0 | 0 | ||||||||
Net change in ceded unearned premium | 0 | 0 | 0 | ||||||||
Net change in premiums receivable | 0 | 0 | 0 | ||||||||
Net change in reinsurance recoverable on paid and unpaid losses | 0 | 0 | 0 | ||||||||
Net change in funds held under reinsurance contracts | 0 | 0 | |||||||||
Net change in funds held under insurance contracts | 0 | 0 | 0 | ||||||||
Net change in other assets and liabilities | 0 | 0 | (6.5) | ||||||||
Net cash provided from operations—continuing operations | (100) | (282.8) | (158.2) | ||||||||
Net cash used for operations—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from operations | (100) | (282.8) | (158.2) | ||||||||
Cash flows from investing activities: | |||||||||||
Net maturities, purchases and sales of short-term investments | 0 | 0 | 0 | ||||||||
Maturities of fixed maturity investments | 0 | 0 | 0 | ||||||||
Sales of fixed maturity investments | (42.5) | 183.3 | (165.1) | ||||||||
Sales of common equity securities | 0 | 0 | 0 | ||||||||
Return of capital and distributions of other investments | 0 | 0 | 0 | ||||||||
Purchases of fixed maturity investments | 42.5 | (183.3) | 139.2 | ||||||||
Purchases of common equity securities | 0 | 0 | 0 | ||||||||
Contributions for other investments | 0 | 0 | 0 | ||||||||
Net change in unsettled investment purchases and sales | 0 | 0 | 0 | ||||||||
Proceeds from sale of property and equipment | 0 | ||||||||||
Net acquisitions of property and equipment | 0 | 0 | 0 | ||||||||
Capital contribution from parent | (55.8) | (7.7) | (140) | ||||||||
Net cash provided from (used for) investing activities—continuing operations | (55.8) | (7.7) | (165.9) | ||||||||
Net cash provided from investing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash provided from (used for) investing activities | (55.8) | (7.7) | (165.9) | ||||||||
Cash flows from financing activities: | |||||||||||
Repurchases of debt | 28.7 | ||||||||||
Cash dividends paid to common shareholders | 0 | 0 | 0 | ||||||||
Cash dividends paid to parent | 100 | 282.8 | 155.4 | ||||||||
Proceeds from Contributed Capital | 140 | ||||||||||
Capital contribution to subsidiary | 55.8 | 7.7 | |||||||||
Repurchases and retirements of common stock | 0 | 0 | 0 | ||||||||
Payments on capital lease obligation | 0 | 0 | 0 | ||||||||
Net cash used for financing activities—continuing operations | 155.8 | 290.5 | 324.1 | ||||||||
Net cash used for financing activities—discontinued operations | 0 | 0 | 0 | ||||||||
Net cash used for financing activities | 155.8 | 290.5 | 324.1 | ||||||||
Net (decrease) increase in cash during period | 0 | ||||||||||
Cash transferred with sale of business | 0 | ||||||||||
Net (decrease) increase after cash transferred with sale of business | 0 | 0 | 0 | ||||||||
Cash balance at beginning of period | $ 0 | $ 0 | 0 | 0 | 0 | ||||||
Cash balance at end of period | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Selected Quarterly Financial114
Selected Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 267.9 | $ 307 | $ 309 | $ 310.5 | $ 296.2 | $ 267.8 | $ 314.2 | $ 308.2 | $ 1,194.4 | $ 1,186.4 | $ 1,266.7 |
Expenses | 265.9 | 274.1 | 286 | 272.3 | 285.1 | 284.6 | 311.3 | 280.1 | 1,098.3 | 1,161.1 | 1,224.4 |
Pre-tax income (loss) from continuing operations | 2 | 32.9 | 23 | 38.2 | 11.1 | (16.8) | 2.9 | 28.1 | 96.1 | 25.3 | 42.3 |
Tax (expense) benefit | 6.4 | (4.6) | 2 | 8.7 | 11.9 | 3.5 | 0.9 | (3.4) | 12.5 | 12.9 | 12.3 |
Net income from continuing operations | 8.4 | 28.3 | 25 | 46.9 | 23 | (13.3) | 3.8 | 24.7 | 108.6 | 38.2 | 54.6 |
Net (loss) gain from discontinued operations, net of tax | 0 | 0 | 0 | 0 | (0.1) | (0.1) | 0.1 | (0.1) | 0 | (0.2) | (20.6) |
Net income including noncontrolling interests | 8.4 | 28.3 | 25 | 46.9 | 22.9 | (13.4) | 3.9 | 24.6 | 108.6 | 38 | 34 |
Less: Net income attributable to noncontrolling interests | (0.2) | 0 | (0.5) | (0.5) | (0.2) | 0 | (0.5) | (0.5) | (1.2) | (1.2) | (1.1) |
Net income (loss) attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | $ 107.4 | $ 36.8 | $ 32.9 |
Net income from continuing operations, per share | $ 0.09 | $ 0.30 | $ 0.26 | $ 0.49 | $ 0.24 | $ (0.14) | $ 0.03 | $ 0.25 | $ 1.13 | $ 0.38 | $ 0.55 |
Net loss from discontinued operations, net of tax, per share | 0 | 0 | (0.21) | ||||||||
Net income (loss) attributable to OneBeacon's common shareholders per share | $ 0.09 | $ 0.30 | $ 0.26 | $ 0.49 | $ 0.24 | $ (0.14) | $ 0.03 | $ 0.25 | $ 1.13 | $ 0.38 | $ 0.34 |
SCHEDULE II CONDENSED FINANC115
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (CONDENSED BALANCE SHEETS) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Short-term investments, at amortized cost (which approximates fair value) | $ 112.1 | $ 69.2 |
Equity Method Investments | 0 | 0 |
Other assets | 212.2 | 192.5 |
Total assets | 3,589.9 | 3,602.6 |
Common equity securities, at fair value (amortized cost - $182.3 in 2016 and $295.0 in 2015) | 188.7 | 298.7 |
Total liabilities | 2,564.7 | 2,598.1 |
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 |
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | 3,589.9 | 3,602.6 |
OneBeacon | ||
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Short-term investments, at amortized cost (which approximates fair value) | 2.5 | 4.4 |
Equity Method Investments | 1,018.8 | 996.9 |
Other assets | 0.4 | 0.5 |
Total assets | 1,021.7 | 1,001.8 |
Total liabilities | 0.4 | 0.9 |
Total OneBeacon's common shareholders' equity | 1,021.3 | 1,000.9 |
Total liabilities, OneBeacon's common shareholders' equity and noncontrolling interests | $ 1,021.7 | $ 1,001.8 |
SCHEDULE I SUMMARY OF INVEST116
SCHEDULE I SUMMARY OF INVESTMENTS-OTHER THAN INVESTMENTS IN RELATED PARTIES (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Total investment securities | $ 2,620.4 | $ 2,591.4 |
Summary of Investments, Other than Investments in Related Parties, Cost | 2,579.7 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 2,620.4 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 2,620.4 | |
U.S. Government | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 169.6 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 167.3 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 167.3 | |
Debt securities issued by corporations | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 1,915.4 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1,916.2 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1,916.2 | |
Municipal obligations | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 70.1 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 70.5 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 70.5 | |
Foreign government obligations | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 1 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 1.2 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 1.2 | |
Preferred stocks | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 8.3 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 13.9 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 13.9 | |
Fixed maturity investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 2,164.4 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 2,169.1 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 2,169.1 | |
Short-term investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 112.1 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 112.1 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 112.1 | |
ETFs | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 159.6 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 164.4 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 164.4 | |
Banks, Trust and Insurance, Equities [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 3.7 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 3.9 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 3.9 | |
Industrial, Miscellaneous, and All Others [Member] | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 178.6 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 184.8 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 184.8 | |
Common equity securities | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 182.3 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 188.7 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | 188.7 | |
Other investments | ||
Summary of Investments, Other than Investments in Related Parties, Reportable Data [Line Items] | ||
Summary of Investments, Other than Investments in Related Parties, Cost | 120.9 | |
Summary of Investments, Other than Investments in Related Parties, Fair Value | 150.5 | |
Summary of Investments, Other than Investments in Related Parties, Carrying Amount | $ 150.5 |
SCHEDULE II CONDENSED FINANC117
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | $ 267.9 | $ 307 | $ 309 | $ 310.5 | $ 296.2 | $ 267.8 | $ 314.2 | $ 308.2 | $ 1,194.4 | $ 1,186.4 | $ 1,266.7 |
Total expenses | 265.9 | 274.1 | 286 | 272.3 | 285.1 | 284.6 | 311.3 | 280.1 | 1,098.3 | 1,161.1 | 1,224.4 |
Pre-tax income (loss) from continuing operations | 2 | 32.9 | 23 | 38.2 | 11.1 | (16.8) | 2.9 | 28.1 | 96.1 | 25.3 | 42.3 |
Tax (expense) benefit | 6.4 | (4.6) | 2 | 8.7 | 11.9 | 3.5 | 0.9 | (3.4) | 12.5 | 12.9 | 12.3 |
Net income from continuing operations | 8.4 | 28.3 | 25 | 46.9 | 23 | (13.3) | 3.8 | 24.7 | 108.6 | 38.2 | 54.6 |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | ||||||||
Net income attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | 107.4 | 36.8 | 32.9 |
Other comprehensive loss, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 108.4 | 36.8 | 20.9 | ||||||||
OneBeacon | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Revenues | 0 | 0 | 0 | ||||||||
Total expenses | 4.5 | 4.8 | 5.1 | ||||||||
Pre-tax income (loss) from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Tax (expense) benefit | 0 | 0 | 0 | ||||||||
Net income from continuing operations | (4.5) | (4.8) | (5.1) | ||||||||
Income (Loss) from Equity Method Investments | 111.9 | 41.6 | 38 | ||||||||
Net income attributable to OneBeacon's common shareholders | 107.4 | 36.8 | 32.9 | ||||||||
Other comprehensive loss, net of tax | 1 | 0 | (12) | ||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 108.4 | $ 36.8 | $ 20.9 |
SCHEDULE II CONDENSED FINANC118
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT (CONDENSED STATEMENTS OF CASH FLOWS) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net income attributable to OneBeacon's common shareholders | $ 8.2 | $ 28.3 | $ 24.5 | $ 46.4 | $ 22.7 | $ (13.4) | $ 3.4 | $ 24.1 | $ 107.4 | $ 36.8 | $ 32.9 | |
Income (Loss) from Equity Method Investments | 0 | 0 | 0 | |||||||||
Dividends received from subsidiaries | 0 | 0 | 0 | |||||||||
Net change in other assets and liabilities | (34.4) | 16.6 | (56.1) | |||||||||
Net cash provided from operations | 47.3 | 191.9 | 97.5 | |||||||||
Net maturities, purchases and sales of short-term investments | (42.9) | 133.1 | (65.5) | |||||||||
Net cash (used for) provided from investing activities | 19.5 | (94.6) | (40.7) | |||||||||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) | |||||||||
Repurchase and retirement of common shares | (11.5) | (3.7) | (1.8) | |||||||||
Net cash used for financing activities | (92.4) | (89.1) | (87.1) | |||||||||
Net change in cash during the year | (25.6) | 8.2 | (81.1) | |||||||||
Cash | 69.6 | 95.2 | 69.6 | 95.2 | 87 | $ 168.1 | ||||||
OneBeacon | ||||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | ||||||||||||
Net income attributable to OneBeacon's common shareholders | 107.4 | 36.8 | 32.9 | |||||||||
Income (Loss) from Equity Method Investments | 111.9 | 41.6 | 38 | |||||||||
Dividends received from subsidiaries | 91 | 72 | 90.4 | |||||||||
Net change in other assets and liabilities | 2.3 | 2.5 | 1.9 | |||||||||
Net cash provided from operations | 88.8 | 69.7 | 87.2 | |||||||||
Net maturities, purchases and sales of short-term investments | 1.9 | 14 | (5.4) | |||||||||
Net cash (used for) provided from investing activities | 1.9 | 14 | (5.4) | |||||||||
Cash dividends paid to common shareholders | (79.2) | (80) | (80) | |||||||||
Repurchase and retirement of common shares | (11.5) | (3.7) | (1.8) | |||||||||
Net cash used for financing activities | (90.7) | (83.7) | (81.8) | |||||||||
Net change in cash during the year | 0 | 0 | 0 | |||||||||
Cash | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
SCHEDULE II CONDENSED FINANC119
SCHEDULE II CONDENSED FINANCIAL INFORMATION OF REGISTRANT - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Cash Flow Statements, Captions [Line Items] | |||
Dividends received from subsidiaries | $ 0 | $ 0 | $ 0 |
OneBeacon | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
Dividends received from subsidiaries | $ 91 | $ 72 | $ 90.4 |
SCHEDULE III SUPPLEMENTARY I120
SCHEDULE III SUPPLEMENTARY INSURANCE INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Specialty Industries | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs | $ 48 | $ 51.1 | $ 53.5 |
Future policy benefits, losses, claims and loss expenses | 570.7 | 597.2 | 519.6 |
Unearned premiums | 255.3 | 272.2 | 284.7 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Earned Premiums | 576.2 | 615.9 | 595 |
Net investment income(1) | 0 | 0 | 0 |
Benefits, claims, losses, and settlement expenses | (280.6) | (390) | (357.2) |
Amortization of policy acquisition expenses | (106.5) | (113.7) | (107.1) |
Other operating expenses | (120.4) | (120.3) | (100.8) |
Net written premiums | 559.8 | 603.6 | 610 |
Specialty Products | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs | 48.3 | 49.6 | 49.7 |
Future policy benefits, losses, claims and loss expenses | 776.6 | 772.2 | 798.8 |
Unearned premiums | 319.8 | 288.1 | 303.6 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Earned Premiums | 524.4 | 560.3 | 582.1 |
Net investment income(1) | 0 | 0 | 0 |
Benefits, claims, losses, and settlement expenses | (375.4) | (310.7) | (457.9) |
Amortization of policy acquisition expenses | (99.5) | (100.1) | (96.2) |
Other operating expenses | (88.6) | (97.9) | (78.4) |
Net written premiums | 540.9 | 533 | 606.9 |
Investing, Financing and Corporate | |||
Supplementary Insurance Information, by Segment [Line Items] | |||
Deferred acquisition costs | 0 | 0 | 0 |
Future policy benefits, losses, claims and loss expenses | 18.3 | 20.4 | 23.8 |
Unearned premiums | 0 | 0 | 0 |
Other policy claims and benefits payable | 0 | 0 | 0 |
Earned Premiums | 0 | 0 | 0 |
Net investment income(1) | 50.6 | 45.9 | 43.4 |
Benefits, claims, losses, and settlement expenses | 0 | 0 | 0 |
Amortization of policy acquisition expenses | 0 | 0 | 0 |
Other operating expenses | 0 | 0 | 0 |
Net written premiums | $ 0 | $ 0 | $ 0 |
SCHEDULE IV REINSURANCE (Detail
SCHEDULE IV REINSURANCE (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amount | $ 1,177 | $ 1,298 | $ 1,209.1 |
Ceded to other companies | (105.8) | (167.7) | (102.9) |
Assumed | 29.4 | 45.9 | 70.9 |
Earned premiums | $ 1,100.6 | $ 1,176.2 | $ 1,177.1 |
Percentage of amount assumed to net | 2.70% | 3.90% | 6.00% |
Specialty Products | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amount | $ 568 | $ 647.8 | $ 582.5 |
Ceded to other companies | (65.2) | (124.7) | (62.2) |
Assumed | 21.6 | 37.2 | 61.8 |
Earned premiums | $ 524.4 | $ 560.3 | $ 582.1 |
Percentage of amount assumed to net | 4.10% | 6.60% | 10.60% |
Specialty Industries | |||
Reinsurance Premiums for Insurance Companies, by Product Segment [Line Items] | |||
Gross amount | $ 609 | $ 650.2 | $ 626.6 |
Ceded to other companies | (40.6) | (43) | (40.7) |
Assumed | 7.8 | 8.7 | 9.1 |
Earned premiums | $ 576.2 | $ 615.9 | $ 595 |
Percentage of amount assumed to net | 1.40% | 1.40% | 1.50% |
SCHEDULE V VALUATION AND QUA122
SCHEDULE V VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowance for Reinsurance Recoverable [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | $ 0.9 | $ 0.7 | $ 2.2 | $ 14.3 |
Valuation Allowances and Reserves, Charged to Cost and Expense | 0.2 | (0.1) | (0.5) | |
Valuation Allowances and Reserves, Charged to Other Accounts | 0 | 0 | 0 | |
Valuation Allowances and Reserves, Deductions | 0 | (1.4) | (11.6) | |
Allowance for Uncollectible Premiums Receivable [Member] | ||||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Valuation Allowances and Reserves, Balance | 1.3 | 2 | 1.9 | $ 3.1 |
Valuation Allowances and Reserves, Charged to Cost and Expense | (0.3) | 0.8 | (0.2) | |
Valuation Allowances and Reserves, Charged to Other Accounts | (0.4) | (0.7) | (1) | |
Valuation Allowances and Reserves, Deductions | $ 0 | $ 0 | $ 0 |
SCHEDULE VI SUPPLEMENTAL INF123
SCHEDULE VI SUPPLEMENTAL INFORMATION FOR PROPERTY AND CASUALTY INSURANCE UNDERWRITERS (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Sep. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||||
Net investment income | $ 50.6 | $ 45.9 | $ 43.4 | ||
Claims and Claims Adjustment Expenses Incurred Related to | $ 33.7 | $ 29.9 | 640.6 | 702.5 | 725.3 |
Claims and Claims Adjustment Expenses Incurred Related to Prior Year | $ (75.5) | $ (14.3) | $ (15.4) | $ 1.8 | $ (89.8) |
Interest rate at which discount computed | 2.50% | 2.50% | 2.50% | 2.50% | |
Specialty Industries | |||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||||
Deferred acquisition costs | $ 53.5 | $ 48 | $ 51.1 | $ 53.5 | |
Reserves for Unpaid Claims and Claims Adjustment Expenses | 519.6 | 570.7 | 597.2 | 519.6 | |
Discount, if any, deducted in Column C(1) | 1 | 1.6 | 1.1 | 1 | |
Unearned premiums | 284.7 | 255.3 | 272.2 | 284.7 | |
Earned Premiums | 576.2 | 615.9 | 595 | ||
Net investment income | 0 | 0 | 0 | ||
Claims and Claims Adjustment Expenses Incurred Related to | 311.9 | 368.2 | 329.2 | ||
Claims and Claims Adjustment Expenses Incurred Related to Prior Year | 31.3 | (21.8) | (28) | ||
Amortization of deferred policy acquisition costs | (106.5) | (113.7) | (107.1) | ||
Paid Claims and Claims Adjustment Expenses | 307.9 | 322.7 | 277.3 | ||
Premiums written | 559.8 | 603.6 | 610 | ||
Specialty Products | |||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||||
Deferred acquisition costs | 49.7 | 48.3 | 49.6 | 49.7 | |
Reserves for Unpaid Claims and Claims Adjustment Expenses | 798.8 | 776.6 | 772.2 | 798.8 | |
Discount, if any, deducted in Column C(1) | 0 | 0 | 0 | 0 | |
Unearned premiums | 303.6 | 319.8 | 288.1 | 303.6 | |
Earned Premiums | 524.4 | 560.3 | 582.1 | ||
Net investment income | 0 | 0 | 0 | ||
Claims and Claims Adjustment Expenses Incurred Related to | 328.7 | 334.3 | 396.1 | ||
Claims and Claims Adjustment Expenses Incurred Related to Prior Year | (46.7) | 23.6 | (61.8) | ||
Amortization of deferred policy acquisition costs | (99.5) | (100.1) | (96.2) | ||
Paid Claims and Claims Adjustment Expenses | 359.2 | 354.8 | 331.3 | ||
Premiums written | 540.9 | 533 | 606.9 | ||
Investing, Financing and Corporate | |||||
Supplemental Information for Property, Casualty Insurance Underwriters [Line Items] | |||||
Deferred acquisition costs | 0 | 0 | 0 | 0 | |
Reserves for Unpaid Claims and Claims Adjustment Expenses | 23.8 | 18.3 | 20.4 | 23.8 | |
Discount, if any, deducted in Column C(1) | 0 | 0 | 0 | 0 | |
Unearned premiums | $ 0 | 0 | 0 | 0 | |
Earned Premiums | 0 | 0 | 0 | ||
Net investment income | 50.6 | 45.9 | 43.4 | ||
Claims and Claims Adjustment Expenses Incurred Related to | 0 | 0 | 0 | ||
Claims and Claims Adjustment Expenses Incurred Related to Prior Year | 0 | 0 | 0 | ||
Amortization of deferred policy acquisition costs | 0 | 0 | 0 | ||
Paid Claims and Claims Adjustment Expenses | 0 | 0 | 0 | ||
Premiums written | $ 0 | $ 0 | $ 0 |